2004 - Franklin Savings Bank

Why would anyone bank anywhere else?
2004 Annual Report
A Message from the President
We
are proud to present to you our 2004 Annual Report. During the year Franklin
Savings Bank achieved many of its financial goals, which is a tribute to dedicated
employees and loyal customers who believe in the benefits of Community Banking.
Your bank takes pride in providing a high level of personal and commercial financial services.
We are committed to a business model which provides you with:
n Uncompromised personal service and attention to your financial needs,
n Local decision making by decision makers who are your friends and neighbors, and
n Conveniently located bank offices, 24/7 banking online and by telephone and an ATM
network that allows you to use your card without a fee at more than 170 ATMs in
Maine, as part of the Maine Cash Access system.
We believe that this formula has served you and the
bank well and we intend to continue with this business
strategy well into the future.
Financial Snapshot
During 2004, our bank originated and closed more than
$95 million in real estate mortgages and home equity loans and
$35 million in other loans. Loans to small business increased by
more than 8 percent while consumer real estate and consumer
personal loans were up by almost 9 percent. Mortgages to
help young individuals purchase their first homes amounted to
$2.6 million. Deposit levels were essentially flat, reflecting the
continued low interest rate environment.
We experienced double digit growth at Western Mountain Financial Services as investors
who were on the sidelines during the 2002-2003 period came back to the markets in force and
began redeploying resources into stocks, bonds and mutual funds.
Community
The Franklin Savings Bank Community Development Foundation continued its work by
investing dollars back into our communities. Established in 2000, the foundation’s mission includes
supporting charitable, economic and educational needs throughout our banking area. In 2004,
foundation support amounted to more than $84,000 with a substantial portion going to area high
school seniors in the form of scholarships to help parents with the high costs of attending college.
We believe this is another element that reflects your bank’s mission as a Community Bank and
sets us apart from the larger corporate financial institutions.
It has been my privilege to have served as President and CEO since 1993 and to have been
an officer of Franklin Savings Bank for the past 31 years. At the end of 2005, I will retire as the
bank’s managing officer. I have many people to thank for helping make our bank such a success
story. It has truly been a Team Effort with
broad support from our Board of Directors,
dedication and loyalty from our officers and
employees and the best clients and customers in
the Western Maine Foothills. I look forward to
2005 with enthusiasm for our communities and
for our bank.
2004 Franklin Scholars are (zig zag from top): William
Wilde and Andrew Pond of Mt. Blue High School with
FSB's Gary Downs and Peter Judkins; Zachary D. Charles
of Jay High School and Jarrod Bilodeau of Livermore Falls
High School with FSB's Chris Guild; Shannon Rose Irish of
Dirigo High School and Deanna McKenna of Mountain
Valley High School with FSB's Leanne Gagne and Linda
Westleigh; Michelle M. Farley of Skowhegan High School
and Lacy Doiron of Madison Area Memorial High
School with FSB's Sally Dwyer; Danielle Nichole O’Neill
of Rangeley Lakes Regional School with FSB's Leeanna
Wilbur; and John Paul Jones Paré of Mt. Abram High
School with FSB's Tim Thompson.
On the cover: Mt. Blue High School student Nate Pickeral shows FSB's Peter Judkins the controls inside the Electrathon
car the class designed and built while Ryan Kelley, Alex Prentiss, Peter Farnum and Dylan Carlton look on. The bank
contributed $2,000 in matching grants to rev up fund-raising for the program.
Our Customers
Joe Paradis
Industry Fire Chief & Proprietor, Paradis Enterprises
When his bank was gobbled up by a
bigger bank in 1988, Joe Paradis turned to the
Hometown Banker and he hasn't looked back. “I
have everything I have to do with banking at
Franklin Savings.”
“It’s easy, they are efficient. I know most of
the tellers and they know me. I never knew who
I was dealing with at the old bank,” says Joe. “At
Franklin Savings Bank, decisions are made here,
they don’t go to a corporate office, which could be
anywhere. If I need to buy anything, it’s a phone
call away and they’ll have the check ready that
day. They make it easy.”
Of course, every thing has a downside. The tellers have his dog trained to expect a treat at the
drive-up window, which “kind of messed her up for the toll booths.”
James Eastlack
Realtor, Morton & Furbish Real Estate Agency in Rangeley
In the real estate business, making the buyer and seller happy is key, but the deal isn’t done until
the financing is arranged. For that, Jamie turns to his Hometown Banker, Franklin Savings Bank’s
Rangeley Branch Manager Leeanna
Wilbur.
“In every deal I have made with her,
I knew I could count on Leeanna
Wilbur to make it work, usually
within a week. Rarely have I seen a
Branch Manager say they’ll come in
on a Sunday morning or an evening,
whatever it takes. Leeanna does it.
That’s the most reassuring aspect for
me and my customers," he says.
"I don’t see how you can beat her
experience."
Our Staff
Jim Brooks
Senior VP, Residential & Consumer Loans
In June 1964, the Beatles were at the top of the charts and
homes sold for $12,000-$15,000. A 20-year-old Jim Brooks went
to work for Franklin Savings Bank, joining a staff of ten at the
recently completed Main Street office. In those days, savings
banks lent money for mortgages. Interest rates were 3 percent
on deposits and 6 percent on loans. “It was pretty simple. We
used to write a loan on a single sheet of paper. Now, there’s a mountain of paperwork.”
The past 41 years have been great for Jim, who retires in early 2006. “I couldn’t have worked
anywhere and enjoyed it as much. The bosses, staff and customers have been great. There are a lot
of families I have worked with for three generations. Time has passed too fast.”
More than a
Century
Jim Brooks
Gary Downs
Don Cummings
of FSB Banking Service
Don Cummings
Vice President, Rumford and Mexico Branch Manager
When Don Cummings joined FSB on Valentine’s Day 1973, he was a consumer lender and Franklin
Savings Bank was just getting into consumer loans. It was a great fit for both. After 32 years, most as
manager of the Mexico and Rumford branches, he appreciates the technological advances of photocopy
machines and computers. “I don’t miss copying with ‘onion skins' and I can still remember proofing the
ledger cards for individual savings accounts when the tellers used to calculate interest manually."
“Franklin Savings has been very good to me over the years. I often look back to different individuals
and companies I gave a first loan to. They are some of our most
valued customers today. They are highly successful and part
of the family. I’m very proud to have been the one who helped
them start on day one, ” says Cummings, who also retires in
early 2006. “I have been very fortunate to have worked for a
company for the number of years I have. I have truly enjoyed
getting out of bed in the morning and going to work.”
Customer Service: Rumford's
Jessica Arsenault, Skowhegan's
Sherri Lewis, Rangeley's Leslie Walton,
Mexico's Jen McPherson, Mt. Blue's Heather
Nagle, Farmington's Alyssa Laney and Misty
Auger and Jay's Chrissy St. Laurent.
Directors
William J. Bernard, Chairman of the Board
Mary Ellen Carpenter Sonya P. Robinson
Gary M. Downs
Richard M. Walker
C. Clinton Knapp
Roger L. Wing
Guthrie S. Colpitts, Director Emeritus
Michael A. Luciano
Corporators
Bradford S. Adley
John J. Bartash Jr.
Robert E. Bean III
William J. Bernard
John F. Bicknell III
John D. Bogar
Paul Bolduc
James E. Brooks
James P. Brown
Paul R. Brown
Erald L. Farmer
Julie L. Ferguson
Kristal A. Flagg
Richard B. Gould Jr.
Marco A. Grimaldi
Curtis C. Haley
Dr. Walter M.
Hammerick
Stephen W. Harris
Bart J. Hersey
Todd W. Bullen
C. Harvey Calden
Robert A. Cameron
Rachel W. Carignan
Mary Ellen Carpenter
Gary W. Collins
Betty J. Coombs
Richard J. Cormier
Donald K. Cummings
Russell O. Damon
Robert J. Daviau
Shelley W. Deane
Erik L. Dickson
Gary M. Downs
John H. Duffy
Colon E. Durrell
Gilbert C. Durrell
James L. Eastlack
Dr. H. Wilson Eastman
Cynthia K. Hiebert
Michael J. Houlihan
Mary B. Howes
Leroy Ireland
James A. Jannace
Stephen C. Jones
Craig A. Jordan
Peter L. Judkins
Timothy E. Kelcourse
C. Clinton Knapp
Michael A. Luciano
Calvin P. Lyons
Frederick H. Marshall III
Ronald E. McAllister
Paul H. Mills
Joyce L. Moore
Troy A. Norton
Gary F. Paling
Meredith J. Pike
Officers
Main Office - Farmington
Gary M. Downs, President, Chief Executive Officer
Peter L. Judkins, Executive Vice President
Deborah A. Rowe, Sr. Vice President, Chief Financial Officer
James E. Brooks, Sr. V.P., Residential & Consumer Loans
Shelley W. Deane, Administrative V.P., Human Resources
Lionel F. Howard, Vice President, Internal Controls
Judith R. Greco, Compliance Officer
Katherine Dunton, Vice President, Loan Operations
Michael R. Mansir, Vice President, Commercial Lending
Jonathan M. Pound
Thomas M. Puiia
Robert J. Pulkka
Sonya P. Robinson
Mark L. Ross
S. Clyde Ross
Gregory E. Roux
Deborah A. Rowe
Jerry P. Simpson
Juanita Bean Smith
Kristine C. Spear
John D. Stowell
Steven J. Swasey
Robert A. Thorndike
James D. Timberlake
Thomas F. Upham
Joseph C. Varuolo
Raymond E. Veilleux
Kevin L. Vining
Richard M. Walker
Gerard K. Williams
James M. Witt IV
Ann B. Yorks
Honorary
Beverly N. Adams
Dr. Paul E. Floyd
Lawrence S. Greenwood
Marie O. Pulcifur
Howard M. Spaulding
Thomas L. Sawyer, Vice President, Residential Lending
Cindy A. Spencer, Vice President, Credit Risk Mgmt.
Timothy J. Thompson, V.P., Director of Operations
Andrew H. Sturtevant, Vice President, Loan Admin.
Norma J. Holbrook, Asst. V.P., Mgr. Purchasing & Inventory Control
Nancy W. Jones, Assistant Vice President, Loan Officer
Deidre C. LaPlant, Asst. V.P., Customer Service Officer
Anna C. H. Lyon, Asst. V.P., Marketing Director
Lorna Niedner, Assistant Vice President, Loan Officer
Jeanne M. Norton, Asst. V.P., Information Systems Dept.
Nancy B. Allen, Customer Service Officer
Branch Offices
Donald K. Cummings, V.P., Rumford & Mexico Branch Mgr.
Richard Allen,V.P., Commercial Lending, Rumford & Mexico Branches
Linda S. Westleigh, Asst. Mgr., Rumford & Mexico Branches
Jo-Ann M. Hayford, Loan Officer, Rumford & Mexico Branches
Leanne Gagne, Loan Officer, Rumford & Mexico Branches
Louanne E. Cameron, Loan Officer, Rumford & Mexico Branches
Christopher Guild, Asst. V.P., Jay Branch Manager
Christine St. Laurent, Assistant Manager, Jay Branch
John B. Ellrich, Loan Officer, Jay Branch
Leeanna J. Wilbur, V.P., Rangeley Branch Manager
Crystal Haley, Asst. Mgr., Asst. Loan Officer, Rangeley Branch
Sally Dwyer, Asst. V.P., Skowhegan Branch Manager
Tom Gopsill, Asst. V.P., Branch Mgr., WMFS
Aaron C. Knapp, Asst. V.P., WMFS
Robert E. Bean III, Investment Officer, WMFS
$300
2004 Financial Statement
$250
$200
$150
$100
$50
$250
$200
$150
$100
Assets
Statement of Condition
Cash & Due from Banks
Bonds
Stocks
Mortgage Loans
Other Loans
Allowance for Loan Losses
Bank Premises and Fixed Assets
Other Assets
Total Assets
$ 8,706,207
36,547,649
2,318,950
187,025,090
44,401,505
(2,400,000)
3,837,877
9,396,478
$289,833,756
Liabilities
Deposits
Other Liabilities
Total Liabilities
$ 213,554,265
15,076,337
$228,630,602
$50
Equity Capital
Surplus and Reserves
Total Liabilities & Equity Capital
$60
$50
$289,833,756
Please Note: Letters of Credit outstanding
not included in above figures: $444,000
$40
$30
61,203,154
Statement of Earnings
Twelve Months: ended December 31, 2004
$20
$10
$250
$200
Interest and fee income on loans
Interest and dividend income on investments
Non-interest income
Total interest and other income
Interest paid on deposits
Other non-interest expense
Earnings after interest and other expenses
$ 15,334,826
1,417,049
2,266,870
$19,018,745
2,590,339
10,963,126
$5,465,280
$150
$100
Income taxes
1,883,700
$50
Net income for period
$3,581,580
Locations
Farmington
ATM & Drive Up
Rumford
ATM & Drive Up
Wilton
ATM & Drive Up
Mexico
Drive Up
Jay
ATM & Drive Up
Rangeley
ATM & Drive Up
Skowhegan
ATM & Drive Up
Mt. Blue High School
Seasonal
197-209 Main Street and 198 Front Street, PO Box 825 Farmington, ME 04938
800-287-0752 - 207-778-3339 Loan Center: 207-778-2900
155 Congress Street, PO Box 579, Rumford ME 04276-0579
Telephone: 207-364-7866
603 Main Street, PO Box 520, Wilton ME 04294-0520
Telephone: 207-645-2583
20 Main Street, PO Box 242, Mexico ME 04257-0242
Telephone: 207-364-4536
9 Main Street, PO Box 30, Jay, Maine 04239-0030
Telephone: 207-897-3982
2573 Main Street, PO Box 650, Rangeley ME 04970-0650
Telephone: 207-864-3386
194 Madison Avenue, PO Box 368, Skowhegan ME 04976-0368
Telephone: 207-474-5574
Mt. Blue High School, 129 Seamon Road, Farmington, ME 04938
Telephone: 207-778-5268
Western Mountain Financial Services
198 Front Street, Farmington, ME 04938
Telephone: 207-778-9779
Internet: www.fsbme.com/wmfs - Email: wmfs@fsbme.com
Above: Katrina Pease, Norma Holbrook and Pam Hargreaves fill
luminary bags with sand for the Relay for Life fund-raiser for the
American Cancer Society; Operations Director Tim Thompson
accepts an Impact Award plaque from Junior Achievement of Maine
President John Hooper during a presentation at the Blaine House;
CFO Debbie Rowe shadowed Rep. Randy E. Hotham of Dixfield
during Bankers' Day at the Legislature; FSB staffers Val Rackliff,
Tom Sawyer and Lorna Nichols pitch in to help Chamber Director
Deb Flight collect food for needy families at Christmas; and Peter
Judkins accepts a Legislative Sentiment from State Rep. Janet Mills
and State Senator Chandler Woodcock recognizing Franklin as the
Most Financially Stable bank in Maine.
Securities and insurance products offered through Linsco/Private Ledger (LPL)
Member NASD/SIPC
Franklin Savings Bank has entered into a third-party arrangement allowing registered representatives of Linsco/Private Ledger to offer securities to bank customers.
Securities and nondeposit investment products are: (1) Not insured by the FDIC or any government agency; (2) Not deposits or other obligations of, nor guaranteed
by, Franklin Savings Bank; and (3) Subject to investment risks by the purchaser, including possible loss of principal amount invested. Franklin Savings Bank is not a
registered broker/dealer, nor is it affiliated with Linsco/Private Ledger.