ConneCtion - Institution for Savings

The Clock Tower
C
onnection
NEWS AND UPDATES FROM THE INSTITUTION FOR SAVINGS FALL 2015
Our New Boxford Office is Now Open!
C
ommunity banking returned to Boxford when the Institution for Savings recently opened its newest
full-service retail office within the Boxford Community
Store & Eatery located at 7 Elm Street.
The space became available when former tenant TD
Bank announced plans to leave Boxford last spring. The
Institution for Savings was approached by a number of
local residents urging the Bank to consider the location
and recently completed renovations.
“We truly believe that the residents of Boxford deserve
convenient, accessible banking services within their
community and we are thrilled to be able to offer that to
them,” said Institution for Savings President and CEO
Michael Jones. “Boxford is a natural location for a
community bank. Much like the other cities and towns
we serve, it is a small, close-knit community rich in
history and tradition where we already serve a number
of customers.”
“As a mutual savings bank, our true commitment to our
communities extends far beyond profits,” Mr. Jones
continued. “Our number one priority is to provide the
Meet our Boxford Staff
(left-right): Nancy Banks, Teller; Jennifer Soltys, Office Supervisor;
Kimberley Edwards, Head Teller and Mairead Finnegan, Teller
very best products and customer service in our market.
We are excited to bring this same pledge to Boxford, not
just by offering competitive rates and the lowest fees but
also becoming an integral part of the community through
our charitable giving, community support and through
our existing educational office at Masconomet Regional
High School.”
The Bank has received approval from the Town of
Boxford to construct an exterior 24-hour ATM.
Construction is expected to begin in mid-December.
The ATM should be available in February 2016.
Inside This Issue
Letter from the President................2
Dedicated Trustees Retire...............6
Charitable Foundation Update........3
New IFS Employees.........................6
Here We Grow Again.......................4
IFS in the Community......................7
Residential Lending Profile..............4
Introducing Apple Pay.....................7
Pay It Forward: David Boudreau......5
Santa Visits......................................8
Building Stronger Communities Together Since 1820
Letter from the President & CEO
Charitable Foundations Donations and Pledges
We are pleased to report that our net income through October 31, 2015 was $21 Million resulting in a
return on assets of 1.15 percent. With two months remaining we will report net income in excess of
$23 Million for 2015!
The Institution for Savings, through its three charitable foundations, donated and pledged
$1.2 Million in the second and third quarters of 2015.
Here are a few financial highlights and projections:
2 Depot Square Ipswich
Charitable Foundation Scholarships
First Congregational Church
of Boxford
ACTION Inc.
First R Foundation
Amesbury Public Schools
f/b/o Windrush Farm
Friends of the Newburyport
Council on Aging
Anna Jaques Hospital
Community Health Foundation
Friends of the Rowley
Public Library
Assisted Living Center
Friends of the Salisbury
Council on Aging
Balance Sheet Total assets Total residential loans Total commercial loans Total deposits Total capital Income Statement
10/31/2015
$2,403,449,000
$1,353,011,000
$363,362,000
$1,938,933,000
$251,397,000
10/31/2014
$ Increase
% Increase
$2,013,281,000 $390,168,000 $1,050,415,000 $302,596,000 $288,948,000 $74,414,000 $1,630,796,000 $308,137,000 $235,226,000 $16,171,000 Year-to-date
10/31/2015
10/31/2014
Total operating income before taxes $11,335,000 Total gains on sales of securities $16,442,000 Contribution to Charitable Foundation($1,532,000) Merger expense
$0 Total income tax expense ($5,367,000)
19%
29%
26%
19%
7%
$ Increase
$ (Decrease)
% Increase
% (Decrease)
$10,843,000 $492,000 $24,905,000 ($8,463,000)
($2,015,000) $483,000 ($2,656,000)
$2,656,000 ($6,588,000)
$1,221,000 5%
(34%)
(24%)
(100%)
(19%)
Net Income $20,878,000 $24,489,000 ($3,611,000)
Net Operating Income $11,263,000 $10,802,000 Backyard Growers d/b/a Cape
Ann Business Incubator
(15%)
$461,000 4%
Profitability Ratios
Total capital to average assets Return on average assets Efficiency ratio Interest rate spread 10.62%11.76%
1.15%1.62%
65.79%61.55%
2.20%2.37%
Year-End Projections Year-to-date 12/31/2015
12/31/2014
$ Increase
$ (Decrease)
Net income Return on average assets Net operating income
$23,500,000 $28,097,000($4,597,000)
1.07%1.55%
$13,900,000 $13,172,000
$728,000
With two months
Our projected net income will be approximately $23.5 Million representing a decrease of
$4.6 Million or 16 percent compared to 2014. The decrease is solely due to significantly less
gains on sales of stock in 2015 compared to 2014. However, our projected net operating
income of approximately $14 Million will be the highest in the Bank’s 195 year history!
These financial results will once again be in the top 95th percentile for banks in Massachusetts.
remaining
we will report
Link House Inc.
Masconomet High School Band
at the Topsfield Fair
Gloucester Fish Box Derby
Beverly High School PTSO/
Up All Night
Gloucester High School
Softball Boosters
Beverly Rotary Club
Gloucester Stage Company
Merrimack Valley Economic
Development Council
Boxford Elementary Schools
Trust Inc.
Gloucester World War II
Memorial Committee
Middleton Family Festival
Chief Will's Day
Boys & Girls Club of
Lower Merrimack Valley
Grace Center
Music at Eden's Edge
Greater Beverly Chamber
of Commerce
Music for Music
Cape Ann Chapter of National
Alliance on Mental Illness
Cape Ann Community Band
Cape Ann Business Incubator
Christmas Tree Santas
Community Action Inc.
Downtown Newburyport
Enhancement Team
in excess of
Educational Foundation
for Rockport
Highlights in this edition of The Clock Tower Connection include: expansion into Boxford
and Hamilton, charitable giving and a profile of our residential lending division.
$23 Million
Edward Peterson Post #98
American Legion
Sincerely,
Jeanne Geiger Crisis Center
Beverly Council on Aging
net income
for 2015!
Ipswich Tigers Youth
Football League
Girl Scouts of Eastern MA
Most importantly, our total assets will increase over $400 Million or 20 percent this year and
our balance sheet will be well positioned with high quality assets producing long-term recurring
operating income. As a result, we look forward to strong operating earnings in 2016.
On behalf of the Institution for Savings, I want to wish you and your family
a happy and healthy holiday season.
Ipswich Rotary Charitable Trust
Belleville Improvement Society
Cape Ann Animal Aid
6%
Ipswich Lions Club
General Charitable Society
Camp Invention
(16%)
Ipswich High School
Fashion Show
Bagnall Education Foundation
Byfield Community Arts
Center Festival
% Increase
% (Decrease)
Friends of Winthrop School
Ipswich Family YMCA
Essex County Chiefs of
Police Association
Essex Merchants Group
Essex National
Heritage Commission
Greater Newburyport Chamber
of Commerce
Greater Newburyport Ovarian
Cancer Awareness
Groveland Destination
Imagination Team
Habitat for Humanity
North Shore
Harborlight Community Partners
Haverhill YMCA
David Curley Race
Healing Abuse Working for
Change (HAWC)
Massachusetts Down
Syndrome Congress
Merrimac PTO
National Alliance on Mental
Illness Cape Ann Chapter
New England Exchange
Club Foundation
Newburyport Adult &
Community Education
Newburyport Art Association
Newburyport Elementary PTO
Newburyport High School
Varsity Cheerleaders
Newburyport Youth Services
Norman L. Quint Scholarships
Northern Essex Elder Transport
Pentucket Regional High
Senior Celebration
Pentucket Youth Lacrosse
Rockport Christmas Tree
Committee Inc.
Rockport Diamond Sports
Rockport Exchange
Rockport High School
Lighthouse Project
Rockport Illumination Fund Inc.
Rockport Rotary Club
Roof Over Head
Salisbury Chamber of Commerce
Salisbury Elementary PTA
SeniorCare
Society for the Preservation of
New England Antiquities
St. Peter's Fiesta Committee
The Actors Studio of
Newburyport
The Arc of Greater
Haverhill - Newburyport
The Children’s Center for
Communication/Beverly School
for the Deaf
The Gloucester Fund Inc.
The North American Family
Institute
The Pettengill House
The Trustees of Reservation
Timmy Trot 5K
Topsfield Little League
Historic New England
Ocean Alliance Inc.
Triton Regional High School
Robotics Tech Team
Institution for Savings Charitable
Foundation Scholarships
Opportunity Works
Veterans Legacy Initiative
Main Street Rockport Charitable
Foundation Scholarships
Pan Mass Challenge
Pathways for Children Inc.
West Newbury PTO
Apple Harvest Run
Imagine Studios
Ipswich Cultural Council
Pennies for Poverty
YMCA of the North Shore
Pentucket Education Foundation
Michael J. Jones
President and CEO
2
3
Building Stronger Communities Together Since 1820
Department Profile: Residential Lending
A
HERE WE
GROW AGAIN
Bank Moves Ahead with
Hamilton Office
The Town of Hamilton’s Zoning Board
of Appeals (ZBA) recently approved
the Institution for Savings’ plans for
construction of a new full-service
banking office at 545 Bay Road in
Hamilton. Pending completion of all
town filings and approval from the
FDIC and Massachusetts Division
of Banks, the Bank will commence
construction in the spring of 2016 on
the facility to include retail and lending
services as well as a drive-thru lane and
24-hour walk-up ATM.
“We are pleased that the ZBA approved
our plan to build a beautiful state-ofthe-art banking office in Hamilton,”
said President and CEO Michael Jones.
“We worked very closely with town
officials and neighbors to ensure that
the design and scale of the building
fit nicely into the neighborhood.
We are eager to provide Hamilton
customers and the community with a
convenient banking location right at
home.” Once approvals are received
and construction gets underway, the
new facility is anticipated to open in
late fall of 2016.
King Street Rockport Gets a Face-lift
The King Street Rockport Office,
located at 37 King Street is undergoing
extensive renovations and expansion.
Please note the drive-up ATM will
be unavailable from time to time
during construction.
We thank you for your patience during
the construction process. Expected
completion date is late spring 2016.
Please
visit our website to view a
4
photo slide show of the progress.
new home is one of the most
significant purchases consumers
will make in their lifetime. Fortunately
for customers, they have knowledgeable, experienced resources right here
in the Residential Lending Department
of the Institution for Savings.
The Bank’s Residential Lending
Department is responsible for
originating, processing and servicing
home mortgages. With a market area
that encompasses southern New
Hampshire and Massachusetts, some
of the most competitive mortgage rates
of any local bank, and a solid reputation
for great service and fast turnaround,
the Bank’s lenders and servicing staff
are busy year-round.
In the last 5 years, the growth of the
Bank’s residential lending business has
exploded, posting a 118 percent growth.
Accordingly, the staff has grown as
well, expanding from a department of
10 to 25 employees. In addition to the
Residential Lending Center located at
81 State Street in Newburyport, full
time residential lenders are located in
the Storey Avenue Newburyport, Depot
Square Ipswich, Middleton, Beverly and
Main Street Rockport offices.
Experienced, Knowledgeable Lenders
The Department is led by two veteran
lending professionals: Senior Vice
Presidents Larry Hunter and Anna
Makos. Larry is responsible for
residential loan production, collections
and asset recovery. He joined the
Institution for Savings in 2007 when
the Bank merged with Ipswich
Cooperative Bank. Anna Makos,
who began her career with the
Institution for Savings in 1982, is
one of the most knowledgeable and
experienced lenders on the Bank’s
team. She manages a significant
loan portfolio from the Bank’s
Storey Avenue Newburyport
Lending Office.
“As mortgage lending continues to
change and evolve due to technology,
24/7 online applications and customer
demand for rapid turnaround, we have
adapted to these new demands to
meet our customers’ needs,” said Larry.
“In addition, our residential lenders
are local bankers: they know the
communities, they know the customers
and they know the market. That helps
consumers tremendously when they
are looking for mortgages.”
“Buying a home and obtaining a
mortgage can be one of the most
stressful decisions an individual will
make in his or her lifetime,” said
Anna. “That’s why we strive to make
customers feel comfortable from the
beginning to the end of the process.
We want them to know that they can
ask us any question, and that we are
here to make this process a little easier.
I often feel like I have made a new
friend at the end of the process: that’s
how closely together we work with
our customers.”
Local Bank, Local Servicing
While most consumers deal directly
with residential lenders to complete
their applications and close their loans,
a great deal of work happens behind
the scenes to process and service their
mortgages. The Institution for Savings
is just one in a handful of local banks
that retain the ongoing servicing of
Pictured from left to right standing:
Nancy Taylor, John LeBlanc, Krystle Parkes,
Mary Souter, Denise St. Peter, Joan Canning,
Lawrence Hunter, Bozena McFayden, Jessica
Juncker, Dian Dastous, Rachel Lachance, Chris
Sullivan, Ellin McSweeney, Steven Butterfield,
Cathy Ketchopulos
Sitting from left to right:
Josh Perkins, Anna Makos, Sandra Corrao,
Lauri Carlson, Kate Bauer, Kerry Hamel-Pope
and Cortney Collins
Not pictured: Julie England, Henryk Jankowski,
Joy Keller, Mark Panall and Melody Silveira
mortgages after they are booked rather
than sell its mortgage loans to third
parties to manage.
“Building lasting relationships with our
customers is extremely important to
us here at the Institution for Savings,”
said John LeBlanc, Vice President of
Loan Operations. “When our customers
come to us, they are seeking the
experience of a local bank and that’s
what we give them, from application
to payoff. If they have questions or
concerns during the life of their loan,
they know who to call and where
to find us. It’s what local banking is
all about.”
Newburyport Storey Avenue Office
and Lending Center, 68 Storey Avenue
Commercial Lender David Boudreau
Pays It Forward with Mission to the Philippines
The Institution for Savings often is praised for its corporate giving. Equally
impressive, however, are the volunteer efforts undertaken by the Bank’s
employees. Case in point: David Boudreau, Senior Vice President,
Commercial Lender and recent missionary to the Philippines.
Dave recently returned from a two week trip to Cebu City, Philippines where
he served as a non-medical volunteer working with Rotaplast International.
He contributed two weeks of his vacation time and personally covered the
cost of the flight.
Rotaplast International, Inc. is a non-profit corporation founded in 1992 that provides free reconstructive surgeries
and treatment to under-privileged children for cleft lip and palate deformities. These children are often shunned by
their culture and unable to attend school or participate fully in society as a result.
“It was an extremely rewarding experience,” said Dave. “The gifted group of surgeons, nurses and anesthesiologists
operated on 104 children over seven days.”
The Bank’s employees personally donated over $2,500 towards the mission. “In many countries, you don’t receive medical
treatment if you don’t have the funds,” said Dave. “We made a real difference in the lives of over 100 children, restoring
their dignity, and giving them the ability to smile, swallow, eat, breathe and speak more normally. I am very thankful to
my co-workers for helping to fund this important work.”
Newburyport Residential Lending Office
81 State Street
More information about Rotaplast can be found at rotaplast.org.
5
Building Stronger Communities Together Since 1820
Introducing
TWO DEDICATED TRUSTEES RETIRE
Peter Kelly, owner of Kelly’s
True Value and Kelly’s Taylor
Rental of Newburyport, joined
the Board of Trustees in 1978
and was the longest serving
Board member until his recent
retirement. He was an active
member of the Bank's ALCO,
Nominating and Building
Committees as well as a
rotating member of the Board of Investment. His active
participation in many community boards including
The Firehouse Center for the Arts, Anna Jaques Hospital,
and the Rotary Club, added great value to the Bank, said
President and CEO Michael Jones.
“Pete has been an invaluable member of our Board, and
in particular to me,” said Mr. Jones. “His passion and
love for this community and the Bank is strong and
unwavering and his guidance is greatly appreciated.”
“I was always proud to be a Trustee of the Institution
for Savings and part of a vibrant organization with great
management,” said Mr. Kelly. “My time on the Board has
allowed me to appreciate the Bank’s vision built around
customers, communities and employees.”
Mary Larnard has been
invaluable on the Board during
her 20 year term. A retired math
teacher, department head and
principal of Newburyport High
School, Mary was the chair of
the Bank’s Long Range Strategic
Planning Committee as well as
a member on the Nominating
and Audit Committees. She also
sat on the Institution for Savings Charitable Foundation
Grants and Scholarship Committees and enthusiastically
volunteered at the Bank’s Annual Credit for Life Fair.
She is a trustee and treasurer of the Mary Alice
Arakelian Foundation, and member of the Newburyport
Rotary Club, Friends of Amesbury Public Library and
St. Vincent de Paul Society.
“Mary’s knowledge, leadership and guidance, particularly
with our Long Range Strategic Planning, has been vital to
the Bank,” said Michael Jones. “She will be missed.”
“It was an honor and a privilege to be a Trustee of
this Bank and involved in such an exciting time of
growth,” said Ms. Larnard. “Mike, Kim and the senior
management team have an extraordinary vision: making
thoughtful moves that open up infinite opportunities.”
1
3
IFS in the
Community
2
1. 2015 Jeanne Geiger Walk Against Domestic Violence:
160+ employees, friends and family walked to
raise money
2. Salisbury Library Opening Ceremony: The Bank
donated $500K to the Salisbury Library project.
3. Backyard Growers,Gloucester: Bank employees Karen
MacCormack, Bruce Macdonald, Sue Ellis and Sandra
Corrao with members of Backyard Growers
4. 2015 Pan-Mass Challenge: Bank Executive VP/COO
Kimberly Rock rode 192 miles and raised $7,500.
Meet our
Newest
Employees
Keri Archibald
Beverly School
Bank Supervisor
Nancy Banks
Teller
David Bakas
Teller
Courtney Chin
Teller
5. 2015 Tour de Greenbelt: Bank Trustees Donald
Greenough and Richard Silverman cycling in the
inaugural event.
Kimberley Edwards
Boxford Head Teller
4
6. Cruisin' the 50s Car Show: Bank employees
Henryk Jankowski and Cheryl Conway next to a
"Woody Wagon" in the Main Office parking lot.
6
John Eldredge
Teller
Mairead Finnegan
Teller
Melanie Gaudet
Teller
Haley Guilmette
Teller
Apple Pay™
A new and easier
way to pay.
Use your Institution for Savings
Visa® Debit Card to make purchases
right from your Apple® device.
• Make payments at hundreds of
thousands of stores and within
mobile apps!
• More secure than using a
traditional card!
Michael Hart
Systems Engineer
• Carrying a wallet will become
a thing of the past!
6
Shelby Hawkes
Triton School
Bank Supervisor
Karyn Holappa
Teller
Steven Richard
Teller
Patricia Shamsuddin
Teller
Julia Zawacki
Teller
5
For more information and a list of
Frequently Asked Questions (FAQs)
visit institutionforsavings.com.
7
PRESORT
FIRST CLASS
U.S. POSTAGE
PA I D
Have your
free photo
PO Box 510, 93 State Street
Newburyport, MA 01950
institutionforsavings.com
taken with
Santa
and Mrs.
Claus
NEWBURYPORT, MA
PERMIT NO. 3
Saturday
December 12
10 am-12 Noon
93 State Street
Newburyport
OR
16 Main Street
Rockport
Reindeer food, chocolate coins and more!
We are confident we will prosper and meet the challenges of tomorrow.
Trustees*
Freeman J. Condon
James V. Ellard
Kevin M. Gasiorowski
Donald M. Greenough
Cindy M. Johnson
Michael J. Jones
John F. Leary III
Jeremiah T. Lewis
R. Drew Marc-Aurele
John J. Meany
Saira Naseer-Ghiasuddin
Ellen Galanis Nich
Kimberly A. Rock
Ellen Mackey Rose
Richard J. Silverman
David A. Tibbetts
Stuart E. Winfrey
* Are also Corporators
C
orporators
Frederick J. Abdulla
Benjamin C. Armstrong
Roger Armstrong
Todd M. Baltich
A. Gerard Beauchamp
Jean Paul Beck
Umesh Bhuju
Robin S. Blair
Robert G. Bodwell
E. Douglas Bolick
John F. Bradshaw
Mae C. Bradshaw
Eugene E. Case
Lucinda J. Cathcart
David J. Chatfield
Anne-Marie Clancy
Daryl G. Colden
Paul S. Como
Christopher J. Connolly
Lawrence J. Cuddire
Andrew J. de Bernardo
Gene del Rio
John J. Desmond III
William J. DiMento
Paul J. Donohoe
Denald H. Doonan
Marlene M. Doyle
Suzanne C. Dubus
Donald Dupray
Robert H. Ebersole
John C. Elwell
Henry L. Farmer III
Zachary T. Field
Brian Forget
Cheryl B. Forster-Cahill
William J. Freitag
Ruth C. George
Jennifer Germain
James H. Gilford
Benjamin M. Gorniewicz
John F. Grady
Alex D. Gramling
Christopher Gregory
Mark W. Griffin
David D. Hall
Augustus Harrington
Daniel Harrington
J. Keith Harris
Gerald S. Hirsch
Gary W. Jernegan
Russell A. Johnson
Richard M. Kallman
Peter G. Kelly
Jeffrey C. Kirpas
Paul Labadini
Kenneth Labrecque
Kathy Lampropoulos
Mary E. Larnard
Christopher M. Latham
Stacy LeBaron
Richard A. LeBlanc
David L. Levesque
Susan J. Little
Andrew B. MacDonald
Gerald B. MacKillop Jr.
Jon H. Martin
Robert T. Martin
Stephen J. McGarr
Lisa L. Mead
Stuart A. Meurer
Robert C. Miller
John F. Moak
John G. Morris
Tracy Mousseau
David A. Mullen
U. Mary Murray
David B. Newbert
Charles K. Nutter
Mark E. O’Brien
William J. O’Flaherty
Jacqueline Page
Nancy E. Peace
R. Sean Perkins
Kerri S. Perry
William J. Plante
Carol L. Powers
Marcy Pregent
Judy E. Proctor
Kevin Puopolo
Frederick H. Richenburg
Peter J. Riley
Michael E. Rowan
Michele T. Sasmor
Esther M. Sayer
Paula Simpson
David M. Smith
Christopher L. Snow
Maria Z. Todaro
Charles E. Wear III
Mark F. Welch
Mark Welling
Pauline C. White
Jonathan J. Woodman