COMMITTED TO YOU Your Life. Your Bank. 2018 Annual Report
Named Best Community Bank in Connecticut by readers of The Commercial Record TO EXCELLENCE We are committed to excellence as we strive to provide a superior customer service experience, while aspiring to exceed our customers expectations. Voted Best Bank in Northeastern Connecticut by readers of The Norwich Bulletin OF 2014 OF 2015 OF 2016 OF 2017 OF 2018 Named Lender of the Quarter, With a great sense of pride, I present Jewett City Savings Bank s Annual Report for 2018. As we completed our 145th year serving the residents and businesses of our communities, it is worth noting that since 1873, we have always been Jewett City Savings Bank with no mergers, no takeovers, no name changes and very proud of our history. I believe this speaks volumes about our commitment to community banking, with no stockholders making decisions solely to maximize the return on their own investments, but instead, decisions being made to benefit our customers and the communities we serve. The year 2018 proved to be another year of measurable loan growth for the Bank. Total loan originations of $60 included nearly $39 in commercial loans loans that directly impact the economic vitality of the community. Total assets grew to just under $284 as of December 31, 2018, and net income of more than $1.8 for the year was more than 25% higher than the Bank s net income for 2017. We continue to be recognized as one of the strongest institutions in the entire state of Connecticut with a 16.00% capital to asset ratio at year-end, which is more than three times the amount required to achieve the highest financial institution ranking of well capitalized by the Federal Deposit Insurance Corporation. The Jewett City Savings Bank Foundation continues to carry out its mission of giving back to the communities that we serve. In 2018, grants in the amount of $78,200 were provided to non-profit organizations throughout the Bank s service area. Grants provided to organizations such as food pantries, libraries, fire departments, ambulance companies, programs for the arts, and health and social services groups, ultimately benefit our friends and neighbors right here in the communities where we all live and work. I am very proud to say that since its inception 15 years ago, the Jewett City Savings Bank Foundation has now awarded over $830,000 in grants to very deserving recipients, who in turn provide much needed services in our communities. At the 2018 Annual Meeting of Corporators, it was a privilege to welcome Kevin Trahan and Josue Luna as they were elected to serve as Corporators of Jewett City Savings Bank. Kevin is the long-time owner of the Allstate Insurance Trahan Agency with offices in Plainfield and Niantic and is a very active and well-known member of the local community. Josue is the owner of Luna Landscaping, a native of Guatemala, and has been a resident of Jewett City for more than ten years. We are honored to have both Kevin and Josue join our team as ambassadors of the Bank. In late 2018, Jewett City Savings Bank was awarded the Norwich Bulletin s Readers Choice Award as the Best Bank in Northeastern Connecticut! This award was especially gratifying since it was voted on by the readers of The Bulletin the people who reside or work in our local market area. In addition, and for the FIFTH CONSECUTIVE YEAR, Jewett City Savings Bank was named the Best Community Bank in the state of Connecticut by the readers of The Commercial Record, a highly respected trade publication. For these honors, we are very proud, but without the dedication and commitment of our employees, Directors, Corporators, and more importantly, our loyal and supportive customers who partner with us each and every day, these awards could never be attained and on behalf of Jewett City Savings Bank, I sincerely thank you all. Sincerely, PRESIDENT S MESSAGE Jewett City Savings Bank received the Lender of the Quarter Award from the U.S. Small Business Administration (SBA), Connecticut District in recognition of our lending activity for the second quarter of Fiscal 2018, which surpassed our entire activity for the past three fiscal years combined. SBA Connecticut District Director Anne Hunt commended Jewett City Savings Bank for its increased SBA activity, citing it as a strong commitment to the small business community.,
TO OUR CUSTOMERS We strive to build lasting relationships with our customers by listening, understanding, anticipating and meeting their needs. Ekonk Hill Turkey Farm, Sterling Jewett City was there for us from the start. We really enjoy working with Jewett City Savings Bank and would recommend them to other small businesses. Ric Hermonot TO COMMUNITY We are actively involved in the communities we serve by fostering economic development and supporting endeavors that improve and enhance the quality of life. We strive to be a valued corporate citizen whose contributions and actions make a difference in the community. The Jewett City Savings Bank Foundation has donated over $830,000 since its inception in 2004. 2018 $78,200 Foundation support in 2018: 1 Emergency Services 31,000 2 Food Pantries 12,000 3 Health Services 8,000 4 Social Services 6,700 5 Libraries 6,000 6 Arts & Culture 4,500 7 Education 4,000 8 Business & Economic 3,500 9 Youth Services 2,500 Brooklyn General Repair, Plainfield Maple Lane Farms, Preston I ve been working with Jewett City Savings since 2006. Jewett City Savings Bank took a chance on me. They were wonderful to work with, they did everything they could to make my dream come true. Mary Jane Burke They were very engaged. The process went very smoothly. They were interested in my business. I would recommend in a heartbeat, Jewett City Savings Bank. Allyn Brown Supporting First Responders The Jewett City Savings Bank Foundation awarded 34 grants totaling $31,000 to more than two dozen providers of emergency services in the Bank s market area. We are honored to support the emergency services providers in our community, said Jewett City Savings Bank President & CEO,. These are the people who protect our lives and our property, and who do so without a moment s hesitation. We are grateful for the work they all do each and every day to keep us safe. Employee Volunteerism 52% Feeding Neighbors Grants totaling $12,000 were distributed to support programs and services provided by seven area food pantries. Our local food pantries help many of our neighbors meet very basic needs, said Merchant. Food insecurity is a serious challenge for individuals and families who need a helping hand when times are tough. We re pleased to be able to help. Employee volunteers 825.75 Hours volunteered Photo credit: South Killingly Fire Department 16.85 Average hours volunteered Volunteering at the food drive in Lisbon
SUMMARY HIGHLIGHTS (Dollar amounts in thousands) Condensed Statement of Operations 2018 2017 2016 2015 2014 Interest and dividend income $ 11,843 $ 10,251 $ 9,351 $ 8,743 $ 8,672 Interest expense 1,203 954 853 919 1,063 Net interest income 10,640 9,297 8,498 7,824 7,609 Provision for loan losses 1,300 441 316 86 120 Noninterest income 2,137 1,939 2,006 1,987 2,135 Noninterest expense 9,222 8,732 8,342 8,254 8,268 Provision for income taxes 439 616 558 419 292 Net income $ 1,816 $ 1,447 $ 1,288 $ 1,052 $ 1,064 Board of Directors TO INTEGRITY We conduct ourselves with the highest level of integrity to be worthy of our customers trust. We are honest, ethical and fair in every endeavor. We keep our word and deliver on our promises. Performance Ratios Return on average assets 0.64% 0.52% 0.49% 0.42% 0.43% Yield on average earning assets 4.53% 4.02% 3.85% 3.78% 3.84% Cost of average interest bearing liabilities 0.51% 0.41% 0.39% 0.44% 0.53% Net interest margin 4.07% 3.65% 3.50% 3.38% 3.37% Average earning assets to average assets 92.3% 92.2% 92.7% 92.1% 92.2% Noninterest expense as percent of average assets 3.26% 3.16% 3.18% 3.28% 3.38% Noninterest income as percent of average assets 0.75% 0.70% 0.77% 0.79% 0.87% Brian Andstrom Louis J. Demicco Chairman Diane L. Manning President & CEO Condensed Balance Sheet (as of December 31) Cash and due from banks $ 2,185 $ 5,605 $ 3,562 $ 2,947 $ 2,546 Interest bearing deposits 13,368 10,149 15,744 24,269 17,078 Investment securities 24,342 31,038 37,322 45,684 53,657 Loans receivable, net 220,820 209,369 191,244 167,935 147,664 Premises and equipment, net 5,753 6,050 5,827 5,600 5,940 Other assets 17,337 16,418 15,880 13,374 13,817 Total assets $283,805 $278,629 $269,579 $259,809 $240,702 Deposits $215,664 $215,679 $209,698 $213,527 $194,184 Borrowings 17,287 13,428 11,750 0 1,000 Other liabilities 3,967 3,956 4,137 3,528 3,429 Retained earnings 46,887 45,566 43,994 42,754 42,089 Total liabilities and retained earnings $283,805 $278,629 $269,579 $259,809 $240,702 Average Balance Sheet (YTD) Average Earning Assets $261,292 $254,735 $242,822 $231,514 $225,685 Average Cost Liabilities 235,738 230,199 217,088 207,701 201,752 Average Assets 283,145 276,343 261,949 251,450 244,910 Financial Highlights $284 Total Assets $216 Total Deposits $221 Total Net Loans $60 New Loans $21 New Retail Loans $39 New Commercial Loans Senior Management James McDonald Diana Rose and Corporate Secretary Ernest Muccio Sandra Boucher Vice President Peter Cannon Vice President Bank Management Michael Alberts Vice President, Senior Commercial Loan Officer Dianne Chiavarini, Business Development Officer William Couture Business Loan Officer Jenny Driscoll Loan Originations Manager Kevin Goyen Director of Information Technology David T. Panteleakos Gary W. Peloquin Vice Chairman Timothy Jones Tomasz Kosek Assistant Vice President Stephen LaFlamme Vice President, Commercial Loan Officer Lisa Legler Rhonda Pearson Katherine Quackenbush Director of Human Resources Terrill Sabourin Deposit Operations Manager Yve Silvestri Loan Servicing Manager Melissa Waite, Training Officer Jane Watson Accounting Manager Gail Rooke-Norman Phillip E. Tetreault R. James Thevenet Corporators Carl Anderson* Brian Andstrom Betsy Barrett Robert Boyd III Simon Brewster Paul Brycki John Burke Mary Jane Burke Paul Chase Don Kyle Collins, Jr. Donna Copeland Gaston Cyr Louis Demicco Louis Demicco III Matthew Desaulnier Joseph Dudek John Faulise Jr. Charlotte Geer Norman Gileau Albert Gosselin, Jr. Elena Hermonot Reino Horstmeyer Courtland Kinnie Gabrielle Labonte Joseph Langevin* Lionel LaSalle, II John Lucey Josue Luna Theresa Madonna Diane Manning Frederick Marzec, Jr. Robert Miller Eric Moore Mary Anne Nieminen Ernest Norman Stuart Norman, Jr. Elizabeth Osga Charles Palmer David Panteleakos Gary Peloquin Jeffrey Rawson Gail Rooke-Norman Susan Rourke William Stetson Phillip Tetreault R. James Thevenet R. Avery Tillinghast Kevin Trahan Clark Woodmansee, III Joel Zuckerbraun *Corporator Emeritus In Memory of John Wolkowski Corporator 1994-2019 Directors Emeriti Robert Brodeur John Burke Norman Gileau Reino Horstmeyer Robert Miller Eric Moore R. Avery Tillinghast Donald Vachon
Locations Brooklyn 490 Providence Road Brooklyn, CT 06234 860-774-8558 Dayville 560 Hartford Pike Dayville, CT 06241 860-779-1444 Jewett City 111 Main Street Jewett City, CT 06351 860-376-4444 Plainfield 48 Norwich Road Plainfield, CT 06374 860-564-3375 Preston 353 Route 165 Preston, CT 06365 860-204-9944 JCSBank.com Member FDIC