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Why would anyone bank anywhere else?
2008 Annual Report
A Message from the President
2008
was a year to rival 1929 in the financial sector. It was a year when the word
“bank” took on negative connotations because of the behavior of a few large
banks, which were deeply invested in the subprime mortgage mess that is wreaking havoc on the
national and world economies. It was a year when Franklin Savings Bank and other community
banks were forced to contend with a problem created by others.
Yet, it was also a year when the value of doing business with a true community bank became
more apparent than ever before. The Bank’s continued ranking as “The Strongest Bank
in Maine” by TheStreet.com, as well as top rankings from
BankRate.com and Bauer Financial, helped us easily set
ourselves apart from the “big” banks and give our customers
confidence in the safety of their accounts.
Nevertheless, the slowing economy has put undue financial
strain on many of our customers, who come to us for relief. Our
commitment to working with them through these difficult times
is a testament to our commitment to our customers and our
communities.
The low rate environment at the federal level, brought on in an
effort to stimulate the economy, creates financial challenges for
the bank. The prime lending rate, an index that ties to many
of our loan products, has dropped 4% from a rate of 7.25%
in December of 2007 to 3.25% in December of 2008. This
is good news for some of our borrowers, but it creates a very
slim margin for our operations and presents a less attractive rate environment for our deposit
customers.
Through all of this, we have seen a modest increase in both loan and deposit balances. The
strength of our bank has been particularly important to large depositors who want to place their
money in a safe haven, where they do not need to be concerned with loss of principle, while
also earning a reasonable return.
At Franklin Savings Bank, we are committed to managing our business for the long-term, by
taking a conservative approach to everything that we do. We want to be “your hometown bank”
for many years to come.
Financial Highlights
The bank ended the year with total assets of $308.5 million and net income of $3.15 million. We closed 2,687 loans, totaling $100,498,813, including the following:
•
602 consumer mortgages and home equity loans, totaling $55.3 million.
•
505 commercial loans, totaling $32.7 million
•
1,580 non-mortgage consumer loans, totaling $12.5 million. Overall, these numbers represent a slight decrease in number of loans processed and a slight
increase in total dollars lent over 2007 levels.
We anticipate a challenging year for 2009 and believe our continued conservative banking
practices will see us through to the bright spot at the end of the tunnel.
On the cover: Rangeley Branch Manager Leeanna Wilbur takes charge on the jobsite for the new branch emerging
behind the existing Main Street location. In the August groundbreaking, above, Leeanna is flanked on the left by
John Blanchard of H.E. Callahan, project general contractor, and Peter Judkins, and on the right by FSB's Tim
Thompson and Ken Haley of M & H Construction, the subcontractor responsible for ground preparation work.
Our Community
FSB in the Community: (Clockwise from left) Tracy and John Knapp
enjoy the Free Ski session at Titcomb Mountain, sponsored by FSB; the
Skowhegan crew and friends walk for a cure at the Somerset Relay for Life;
Diane Perry supervises the set up at the River Valley EXPO; Rich Allen,
Debbie Dorr and Diane Perry greet registrants for a fund-raising golf
tournament; Lana Cemodanovs says "Arrrrrrrrr" during the pirate-themed
4th of July parade; Andrew Sturtevant and Dee LaPlant welcome visitors
to the Franklin County Home and Leisure Show; Sue Whitehouse, RaeAnn
Hargreaves, Katrina and Caitlyn Pease and friend Denisha Begin raise needed
funds for Franklin County Children's Task Force Make Tracks for Kids event.
Our Staff
FSB Staffers: (Clockwise from left) Carol Lavoie is ready to serve Rumford customers; Leanne Gagne chats with Rumford
customer Julie Burgi; Alyssa Laney and Haily Tibbetts are all smiles in Farmington; Peter Judkins presents Wilton's Brandi Manning
with the Most Accurate Teller award; Rangeley's Denise Mercier gives Braydon Thompson a sticker; Rose Darling assists Nelda
Bond at the Jay drive up; Tammy Furbush serves Vanessa and Samantha Bruce at the Skowhegan teller line and many staffers marked
the bank's 140th Anniversary by donning period costumes for Chester Greenwood Day, including (pictured) Lana Cemodanovs,
Marla Dubay, Tom Gopsill, Roberta Meisner, Pam Danforth, Liz Cody, Anna Lyon, Bett Hardy and RaeAnn Hargreaves; and Jay
customer Justin Merrill is assisted by Kelly King.
Management
Directors
William J. Bernard, Chairman of the Board
Mary Ellen Carpenter
C. Clinton Knapp
Peter L. Judkins
Michael A. Luciano
Sonya P. Robinson
Richard H. Smith
Richard M. Walker
Guthrie S. Colpitts, Director Emeritus
Corporators
Bradford S. Adley
Alan R. Archibald
Robert E. Bean III
William J. Bernard
John D. Bogar
Paul Bolduc
James E. Brooks
Darryl N. Brown
James P. Brown
Paul R. Brown
Randy C. Bruce
Todd W. Bullen
Peter L. Buotte Sr.
Robert A. Cameron
Mary Ellen Carpenter
Linda S. Cipriano
Gary W. Collins
Richard J. Cormier
Donald K. Cummings
Shelley W. Deane
Erik L. Dickson
Gary M. Downs
John H. Duffy
Colon E. Durrell
Gilbert C. Durrell
James L. Eastlack
Alan L. Elliott
Erald L. Farmer
Julie L. Ferguson
Allyn J. Foss
Richard B. Gould Jr.
Marco A. Grimaldi
Curtis C. Haley
David L. Haley
Walter M. Hammerick DDS
Duane A. Hardy
Stephen W. Harris
Bart J. Hersey
Mary B. Howes
Leroy Ireland
James A. Jannace
Craig A. Jordan
Peter L. Judkins
C. Clinton Knapp
Michael A. Luciano
Virginia P. MacFawn
Frederick H. Marshall III
Wanda L. McDonald
Paul H. Mills
Michael F. Monahan
Joyce L. Moore
Ann M. Nemi
James A. Nicols Jr.
Troy A. Norton
Virginia G. Nuttall
Gary F. Paling
Meredith J. Pike
Thomas N. Puiia
Sonya P. Robinson
Deborah A. Rowe
Jerry P. Simpson
Juanita Bean Smith
Richard H. Smith
Steven J. Swasey
Dennis S. Taylor
Robert A. Thorndike
James D. Timberlake
Thomas F. Upham
Kevin L. Vining
Richard M. Walker
Robert C. Welch
Gerard K. Williams
Kate Kfoury Williamson
James M. Witt IV
Katherine W. Yardley
Ann B. Yorks
Honorary
Beverly N. Adams
Dr. Paul E. Floyd
Lawrence S. Greenwood
Marie O. Pulcifur
Franklin Savings Bank is a wholly-owned subsidiary of FSB Bancorp MHC
Chairman Gary M. Downs, Vice Chairman William J. Bernard, Directors
Mary Ellen Carpenter, C. Clinton Knapp, Peter L. Judkins, Michael A.
Luciano, Sonya P. Robinson, Richard H. Smith and Richard M. Walker
Andrew Sturtevant rides his Velomobile in the
Farmington Independence Day Parade.
Officers
Main Office - Farmington
Peter L. Judkins, President, Chief Executive Officer
Timothy J. Thompson, Senior V.P., Treasurer & Clerk
Shelley W. Deane, Sr. V.P., Human Resources & Admin.
Andrew H. Sturtevant, Senior V.P., Loan Administration
Lionel F. Howard, Vice President, Internal Controls
Deidre C. LaPlant, Vice President, Customer Service
Michael R. Mansir, Vice President, Commercial Lending
Thomas L. Sawyer, Vice President, Residential Lending
Cindy A. Spencer, Vice President, Credit Risk Mgmt.
Peter M. Fortunato, Bank Information Systems Administrator
Nancy W. Jones, Asst. V.P., Loan Operations
Anna C. H. Lyon, Asst. V.P., Marketing Director
Jeanne M. Norton, Asst. V.P., Information Systems Dept.
Nancy B. Allen, Customer Service Officer
RaeAnn A. Hargreaves, Loan and Collections Officer
Christine A. St. Laurent, Loan Officer
John B. Ellrich, Loan Officer
Branch Offices
Diane M. Perry, V.P., Mgr., Rumford & Mexico Branches
Richard E. Allen,V.P., Comm. Lending, Rumford & Mexico Branches
Linda S. Westleigh, Asst. Mgr., Rumford & Mexico Branches
Leanne Gagne, Loan Officer, Rumford & Mexico Branches
Louanne E. Cameron, Loan Officer, Rumford & Mexico Branches
Sherry A. Tidswell, Loan Officer, Rumford & Mexico Branches
Lorna Durrell Niedner, Asst. V.P., Jay Branch Manager
Diane L. Jackson, Loan Officer, Jay Branch
Leeanna J. Wilbur, V.P., Rangeley Branch Manager
Crystal W. Haley, Asst. Mgr., Asst. Loan Officer, Rangeley Branch
Sally A. Dwyer, Asst. V.P., Skowhegan Branch Manager
Cherylene L. Sevey, Assistant Manager, Skowhegan
Thomas M. Gopsill, Asst. V.P., Branch Mgr., WMFS
Aaron C. Knapp, Asst. V.P., Registered Representative, WMFS
(Deborah A. Rowe, Executive V.P. and CFO, retired 2009)
Financials
2008 Financial Statement
Statement of Condition
Assets
Cash & Due from Banks
Bonds
Stocks
Mortgage Loans
Other Loans
Allowance for Loan Losses
Bank Premises and Fixed Assets
Other Assets
Total Assets
Liabilities
Deposits
Other Liabilities
Total Liabilities
Equity Capital
$ 13,521,657
10,355,330
1,525,950
230,742,127
37,159,889
(2,715,000)
4,351,138
13,588,360
$308,529,451
$ 225,473,183
9,949,072
$235,422,255
Surplus and Reserves
Total Liabilities & Equity Capital
$308,529,451
73,107,196
Please Note: Letters of Credit outstanding
not included in above figures: $380,790
Statement of Earnings
Twelve Months: ended December 31, 2008
Interest and fee income on loans
Interest and dividend income on investments
Non-interest income
Total interest and other income
$ 18,933,435
806,152
2,513,970
$22,253,557
Interest paid on deposits
Other expenses
Earnings after interest and other expenses
4,944,377
12,468,671
$4,840,509
Income taxes
1,683,200
Net income for period
$3,157,309
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
Pictured above: Rangeley Lake; Erin Nelson, Amy McCabe
Telephone: 207-778-5268
and Lorna Niedner, Jay; Pam Danforth, Accounting; Amy
Western Mountain Financial Services
198 Front Street, Farmington, ME 04938
Telephone: 800-300-9779 - 207-778-9779
Internet: www.WesternMountainFinancial.com
Broadway and Cortany Tinker, Farmington; Lana Cemodanovs,
Farmington; Rich Allen, Rumford: Heather Perry and Andrew
Sturtevant, Loan Center; Maranacook Lake, Winthrop.
Securities and insurance products offered through LPL Financial
Member FINRA/SIPC
Franklin Savings Bank has entered into a third-party arrangement allowing LPL Financial to offer securities to bank
customers. Securities and insurance products offered through LPL Financial and its affiliates (Member FINRA/SIPC) *
Not FDIC Insured * No Bank Guarantee * May Lose Value * Not a Deposit * Not Insured by Any Government Agency