2021 Executive Summary
To our Corporators, Customers, Staff and Other Friends
Covid-19 certainly cast a shadow over everything we did in 2021. Yet, despite the pandemic, Bath Savings Institution continued to evolve and grow. In June 2021, the bank opened its 10th full-service office at 34 Spring Street in Westbrook. Customers have responded enthusiastically to the exceptional service we provide, and many are pleased and excited to be able to meet with our team in Westbrook. We expect continued steady growth from this new office.
At Bath Savings, we create value for our customers by doing more than required and exceeding their expectations. We strive to make banking a unique and pleasant experience, and we treat our customers with care and respect. We do this by following our mission of delivering exceptional service without exception: a level of service that instills trust and confidence, and builds loyal relationships that connect the customer, the bank, our employees, and our community. Building quality customer relationships is our most important objective because the quality of our customer relationships drives the quality and success of the bank. In 2021, that exceptional service produced another year of exceptional results!
In 2021, the bank posted record Net Income from Operating Activities of $14.7 million, 11% more than our previous record in 2020. Several years ago, 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 2021, that change resulted in a net of tax $4.5 million addition to income, bringing our Net Income to $19.2 million for the year.
Customers continue to seek the exceptional service we deliver. In 2021, we opened 3,600 deposit accounts helping total deposits grow to $997 million, an increase of 11%. Bath Savings continues to strengthen our local economies by providing loans to consumers, businesses, and municipalities across our market. In 2021, the bank originated over 1,898 new loans totaling $394 million, increasing our loan balances to a record $639 million. Part of that total included 357 SBA Paycheck Protection Program (PPP) loans totaling $25 million. In the past two years, the bank provided 1,021 PPP loans totaling $67 million. These forgivable funds helped our small businesses and their employees survive the pandemic.
The bank’s total assets also ended the year at a record $1.2 billion, and our total Capital grew to a record level of $181.9 million, a very healthy 14.8% of total assets. By way of comparison, the FDIC would deem a bank to be “well capitalized” with a capital ratio of only 5%.
Customers continue to choose Bath Savings Trust Company to manage their investments. These clients value the personal service and proven investment strategies individually designed for performance and protection. By the end of 2021, client assets managed by Bath Savings Trust Company totaled a record $1.65 billion. While our investment performance has been exceptional, it is the care, respect, and individual attention we provide to our clients that is most appreciated and leads to our success and steady growth.
At Bath Savings, we know it is important to be a good neighbor and support our local communities. Last year the bank contributed $546 thousand to hundreds of nonprofit groups in our region. Our employees generously contributed $49 thousand to the United Way of Mid Coast Maine, and we were honored to receive the Campaign Excellence Award. In addition, our officers and employees supported their communities by providing over 2,400 volunteer hours to nonprofit and charitable organizations, both during and after business hours.
In 2021, we were honored to again be named as one of the “Best Places to Work in Maine,” and are pleased to have been recognized as “The Lender at Work for Maine” by the Finance Authority of Maine. In addition, a Forbes Magazine survey named Bath Savings one of the Best Banks in Maine. Bath Savings was also named Best Bank, Best Mortgage Lender, and The Trust Company was named Best Financial Planning Company in Mid Coast Maine by The Best of Surveys group.
Providing exceptional service without exception means we can never stand still, and must work to maintain our values, principles, and mission while adapting to the ever-changing world in which we operate. That flexibility and commitment has been even more important during the pandemic. Special thanks to our employees who have taken such great care of our customers, our communities, and each other. I thank them for their success in building and maintaining loyal customer relationships despite any obstacle the pandemic put in their way. Together, we will always deliver the exceptional service that sets us apart.
Glenn L. Hutchinson, President & CEO