NewburyportNews.com, Newburyport, MA

March 12, 2014

Institution for Savings reports record-setting year


Newburyport Daily News

---- — NEWBURYPORT – For the fourth consecutive year the Institution for Savings reached all-time highs in total assets, total loans, total deposits and total capital, announced President and Chief Executive Officer Michael J. Jones.

The results were reported at the bank’s 194th Annual Meeting held March 10 at the Black Swan County Club in Georgetown and attended by 250 bank corporators and employees.

The bank’s net income of $25.6 million, an increase of $8.4 million or 49 percent over prior year earnings, was the highest in the bank’s 193-year history. Total assets increased $285 million, or 20 percent, reaching approximately $1.7 billion. The majority of the growth was in the bank’s lending portfolio which increased $212 million or 24 percent.

Overall the bank reached historic highs in total assets, total loans, total deposits and total capital. Total deposits increased $256 million or 22 percent and now exceed $1.4 billion. This increase was due to the highly competitive interest rates the bank offers on its deposit accounts, said Jones. The bank’s newest office in downtown Topsfield ended the year with $57 million in deposits in just 8 months of operation.

Most importantly, capital increased $35 million or 19 percent reaching a milestone of $219 million. The Institution for Savings ended the year with a Tier 1 leverage capital ratio of 12.39 percent.

In his remarks to the Corporators and Employees, Jones cited a number of accomplishments from 2013:

The bank’s net income of $25.6 million represented a return on assets of 1.72 percent which will again place the Institution for Savings amongst the top performing banks in Massachusetts.

In January the bank opened its fourth educational school banking office at Masconomet Regional High School in Topsfield.

For the second time in three years the bank was named the Top Employer by The Boston Globe. This was the sixth consecutive time the bank has been named to the ranking: in 2011 it was named the Top Small Employer and in 2013 the Top Medium Sized Employer (the number of employees grew in 2013 due to expansion and growth).

In March, the bank completed the renovations to its Storey Avenue Newburyport office which consisted of the addition of a second floor with approximately 1,200 square feet of new space specifically dedicated to mortgage lending. This proved to be very successful as nearly 50 percent of the bank’s 2013 real estate mortgage loans were produced from this office.

On Patriots Day and the 117th running of the Boston Marathon, the bank opened its Topsfield office, accumulating as reported $57 million in deposits.

In his remarks to the Corporation, Jones discussed the bank’s future growth plans to ensure continued profitability and success going forward. “The bank’s long term strategic focus is to increase profitability, grow our existing banking offices, and expand into other local communities, said Jones. “We are committed to remaining a ‘mutually owned’ regional savings bank serving the North Shore and Cape Ann.”

The Bank also elected three new officers and five new Corporators. Officers elected were Karl R. Wilson, senior vice president of commercial lending; Katrina P. Cutts, vice president of commercial lending; and John A. LeBlanc, vice president of loan operations. New Corporators welcomed were Dr. Ann-Marie Clancy of Newburyport, partner at Newburyport Dental Associates; Zachary T. Field of Amesbury, owner of Zach Field Drum & Musical Suite; Judy E. Proctor of Topsfield, lawyer and minister; Charles E. Wear, III of Amesbury, vice president of Meridian Associates; and Stuart E. Winfrey of Essex, owner of Winfrey’s Fudge and Chocolate.

Finally, the Corporators and Employees paid tribute to retiring long-time Trustee Jonathan J. Woodman. Woodman, founder of Woodman Associates Architects of Newburyport, served 33 years on the bank’s Board of Trustees, including terms on the Board Investment, Charitable Foundation, Long Range Strategic Planning and Building committees. Jones said: “Jon’s skills and sound judgment have given him the depth of experience to serve his community in a way unmatched by others. He is sincere, trustworthy and caring and will be greatly missed around our Board table.”

Before concluding the meeting Jones announced the 2013 recipient of the President’s Award which annually is given to an employee who consistently goes above and beyond his or her duties to serve the Bank and its customers.

This year’s award was given to Anne G. Girard of Rowley, deposit services representative.