2019 Executive Summary
To our Corporators, Customers, Staff and Other Friends
At Bath Savings, we know the one thing that sets us apart is the exceptional service we provide. Each employee of the bank understands that providing exceptional service is part of everything they do. Whether it’s face to face, on the telephone or through any of our digital channels — our service must be superior. Customers rely on our advice to help them achieve their dreams, goals and aspirations. People don’t dream about a relationship with the bank, but they do dream of owning a home, buying a car, opening a business or planning for a financially-secure retirement. Because of the service we provide and the relationships we build, we play a role in helping fulfill these goals and dreams. The key to the bank’s success is putting our customers first and providing exceptional service that consistently exceeds their expectations. In 2019 that exceptional service produced another year of exceptional results!
Customers choose Bath Savings because we care and respect them as individuals, and our employees are constantly seeking new ways to satisfy their financial needs. In 2019 one of those solutions was our new Neighbor to Neighbor Advantage Checking product. This convenient account combines anywhere banking tools with money saving benefits. Customers receive instant savings with local merchants as well as additional benefits including roadside assistance, cell phone protection and more. This new product helped us open nearly 2,000 new checking accounts. Total Deposits ended the year at $747 million.
Bath Savings continues to finance our customers’ dreams by providing loans to consumers and businesses across our market. In 2019 the bank originated over 1,100 new loans totaling $293 million, increasing our loan balances to a record $640 million. The bank’s total assets also ended the year at a record $937 million.
In 2019 the bank posted Net Income from Operating Activities of $11.1 million providing a return on assets of 1.19%. Last year the bank was required to adopt a new accounting standard compelling us to record the change in market value on our investments in equity securities — or our stock portfolio — through our Statement of Income. In 2019 that change resulted in a (net of tax) $5 million addition to income bringing our Net Income to $16.1 million for the year.
The strength and safety of a bank is reflected in its Capital, and in 2019 our Capital grew to a record level of $143 million, a very healthy 15.2% of total assets. By way of comparison, the FDIC would deem a bank to be “well capitalized” with a capital ratio of only 5%.
2019 marked the 30th anniversary of Bath Savings Trust Company, and our clients celebrated another year of outstanding investment performance. Those results — plus the unparalleled level of care, respect and individual attention that we provide each client — drove the momentum to increase our managed assets to over $1.1 billion, a remarkable achievement for the Trust Company and its clients in those 30 years!
At Bath Savings we believe it is important to be a good neighbor and support our local communities. Last year the bank contributed $660 thousand to hundreds of nonprofit groups in our region. Our Neighbor to Neighbor Program also provided an additional $22 thousand to our community. This program allows each new checking account customer to designate a $25 bank-funded gift to one of our local nonprofit customers, truly neighbors helping neighbors.
Our employees were once again recognized by the United Way as the best employee campaign in the Finance division with 97% of our employees generously contributing over $42 thousand! In addition, last year our employees supported their communities by providing over 3,850 volunteer hours to nonprofit and charitable organizations, both during and after business hours.
We are honored to again be named one of the Best Places to Work in Maine by the Best Company Group, an independent workplace research firm. We are pleased to be recognized as an organization with a culture that creates an environment where customers love to bank and people love to work.
In 2019 the bank negotiated the purchase of property on the corner of Spring Street and William Clarke Drive in Westbrook. We expect to begin construction of our 10th office in the spring of 2020 and anticipate an opening in early 2021.
We often hear, as we approach $1 billion in assets and add our 10th office in Westbrook, that it will be impossible to maintain our exceptional level of service and improve our financial results. We disagree. We know that we can and must do both. We are fortunate because providing exceptional service comes as easy as breathing for our employees. It’s just who we are and what we do. I am proud to work alongside this team of talented and caring professionals who strive to exceed the expectations of our customers. It is through their collective efforts that we are able to deliver both exceptional service and exceptional financial results.
Glenn L. Hutchinson, President & CEO