Statement of Condition
Eastern Savings Bank has been serving
2006
our communities since 1905. We are not
only your Bankers, we’re your friends and
neighbors—working beside you, raising our
families, establishing friendships, building
our neighborhoods, and living our dreams.
Member FDIC
www.easternsavingsbank.com
Message from the Chairman
Beth Goldsmith
Chairman of the Board
Message from the Chairman of the Board
I became intimately involved with the Bank when my late husband, Harold,
first made the Bank his own in 1981. Of course, it was his baby, not mine,
but from the very beginning it was clear that this new venture was going
to be an important part of my life. My formal education was in the field of
education, and my graduate studies were in the area of counseling the gifted
and talented. Little did I know that I was actually preparing for my role as
Chairman of the Board at Eastern Savings Bank, for it has been my great
honor and privilege to watch, to learn, and to share our success with this
wonderfully gifted and talented family of Eastern associates. I am filled with
gratitude and awe for what we have accomplished, for what is yet to come,
and most importantly, for who we are.
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Company Quick Facts
Ellicott City
Corporate Headquarters
Executive Plaza 2
11350 McCormick Road, Suite 200
Hunt Valley, Maryland 21031
410-785-2200
Ellicott City
Fullerton
Enchanted Forest Shopping Center
10060 Baltimore National Pike, Suite G110
Ellicott City, Maryland 21042-3612
410-992-8500
Fullerton
7927 Belair Road
Fullerton, Maryland 21236
410-661-4412
Lutherville
10 West Ridgely Road
Lutherville, Maryland 21093
410-683-1372
Pikesville
Lutherville
1417 Reisterstown Road
Pikesville, Maryland 21208
410-486-8222
Toll-Free Number
1-800-787-BANK
Customer Service Center
Pikesville
1-800-787-7ESB
Website
www.easternsavingsbank.com
EMMA
24-Hour Telephone Banking
410-568-6307
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Working Beside You
Locally Born and Bred
From the beginning Eastern Savings Bank has been a
local bank run by local people. Established in 1905,
the Bank, then named Eastern Building and Loan,
was one of over 200 small savings and loan associations in the Baltimore area. Over 100 years later, we
are proud to say that we are still locally owned and
Eastern Building and Loan
operated by people who were born and raised right
here in Baltimore. Beth Goldsmith, our Chairman of
the Board, and our Executive Committee Members,
Alan Berkowitz, Yaakov Neuberger, and Larry Trainor
all grew up in Baltimore. Not many banks these
days can boast that the members of their executive
management team are “locals.”
While we are not the biggest bank in the area, we are
Alan Berkowitz
extremely proud of our accomplishments. We have
grown slowly and steadily since 1981. Today, we
stand as a top financial institution in the metropolitan
Baltimore area with assets of $980 million at yearend 2006. With over 250 associates and four deposit
branches, we believe that our size allows us to quickly
respond to opportunities as they present themselves.
But what truly sets us apart from the competition is
Yaakov Neuberger
our staff. Almost 50% of our associates have been
with the Bank longer than 10 years. That longevity
has allowed us to build a strong corporate culture of
dedicated, loyal, creative individuals who are some of
the best at what they do.
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Larry Trainor
Living Our Dreams
Lutherville
Pikesville
New Beginnings
2006 was an exciting year for Eastern Savings Bank. On
January 14, 2006 we opened the doors to our newest
branch in the Yorkridge Shopping Center in Lutherville. In
November 2005 ground broke for the construction of our
Lutherville
new branch in Pikesville, and we opened for business just
10 months later on September 11, 2006. We are delighted
to be a part of both of these vital communities with new
state-of-the-art facilities.
Ellicott City
Pikesville
Electronic Rateboard
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Building Our Neighborhoods
Here are just a few of the
organizations that we have
supported over the years:

Catholic Charities – Dragon
Boat Race Sponsor

Rebuilding Together Baltimore

CHAI – Comprehensive
Housing Assistance, Inc.

Habitat for Humanity

Villa Maria Residential
Treatment Center

Literacy Works

Neighborhood Housing
Services of Baltimore

Making Strides for Breast Cancer

Johns Hopkins Children’s
Center

CASA of Baltimore County

Big Brothers and Big Sisters

Maryland Food Bank

American Red Cross

Genesis Jobs

Civic Works

The Preston Mitchum, Jr.
Foundation

Maryland Zoo in Baltimore
A Community Focus
Not only are we committed to hiring and retaining the very best
associates, we are also dedicated to the communities we serve. We
do not take our role as a community bank lightly, which is why we
donate both time and money to numerous organizations throughout
Baltimore. In fact, Bank associates donated almost 6,000 hours to
various charitable organizations and worthy causes in 2006. The Bank’s
monthly “Casual for a Cause Day,” now in its 10th year, continues to
receive strong support from our associates whose requests determine
which local charities are selected. We are proud to support those
organizations that benefit the community, especially those that provide
disadvantaged children and families with the assistance they need.
The Bank also continues to partner with a local organization within
the community of each deposit branch by donating $5 for every
account opened. We salute the vision and actions of each of these
outstanding organizations, which include:
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
Ahavas Yisrael Charity Fund

Family and Children’s Services of Towson

Jewish Family Services

St. Peter’s Pantry

Voices for Children of Howard County

St. Vincent’s Center
Building Our Neighborhoods
Community Reinvestment
Our dedication to the Community Reinvestment Act is more
than just words. Aside from dedicating time and money
to local organizations, Eastern Savings Bank associates
spent 4,000 hours in 2006 repairing and renovating homes
in the Baltimore area. Most were located in low-income
neighborhoods in desperate need of revitalization. We are
delighted to provide young, first time homebuyers or those
with low to moderate incomes an opportunity to purchase
homes of their own.
Comprehensive Housing Assistance, Inc. (CHAI)
neighborhood revitalization project
Belwood Avenue Renovation Project
Comprehensive Housing Assistance, Inc. (CHAI)
neighborhood revitalization project
Before
Before
After
After
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Establishing Friendships
The Faces of Eastern Savings Bank
Of course, the most vital part of Eastern Savings Bank is our people. Without the caring and dedicated
professionals we have on staff, we would not be able to do the important work we do for our customers
and our communities. When you step into one of our deposit branches, you will be greeted by the warm
and friendly face of one of our managers.
Agnes Arnold started her banking
career with Eastern Savings Bank 22
years ago. She has worn many hats
over the years, and her role as Sales
Director for First Eastern Financial
Services, a subsidiary of the Bank
that provides alternative investment
products, has been one of the most
rewarding. Her experience led her in 2006 to become a
Certified Senior Advisor specializing in assisting seniors
with the unique challenges they face. She is intensely
committed to her customers and her community and
works with several organizations in Southeast Baltimore.
Agnes says, “I love interacting with my customers. I
especially enjoy working with seniors and providing them
solutions to their financial needs and concerns.”
Donna Byers is a seasoned banker
with 30 years’ experience. Eastern
Savings Bank has been fortunate
to have Donna on our team for 12
years. She manages a staff of four
in Ellicott City where she also lives.
Donna is especially committed to
the children in her community
and is actively involved with several local schools where
she teaches children the importance of saving. The most
rewarding part of her job is her daily interaction with her
customers. According to Donna, “Each day is different
and never boring because of the people I meet!”
Darlene Conner of our Fullerton
office has spent 12 of her 21 years
in banking with Eastern Savings
Bank. She maintains close ties
with the community through her
commitment to both the Overlea
Fullerton Business and Professional
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Association and The Preston Mitchum, Jr. Foundation,
which works to enrich the lives of needy children and
families throughout Baltimore. Darlene says, “I am a
person who loves human interaction. This job allows
me the opportunity to meet people from all walks of life.
Every day I learn something new from my customers.”
Sandy Howell is certainly
considered to be one of the Bank’s
most dedicated associates. For the
past 12 years, Sandy has commuted
from her home in Easton, Maryland
to manage branches in Fullerton,
Towson, and now Lutherville. A
Certified Senior Advisor with 25
years of total banking experience, Sandy has been with
Eastern Savings Bank for over 17 years. She proudly serves
on the board at Timothy House where she is currently the
chairman of the Residents Care Committee. What is Sandy’s
favorite part of her job? According to her, “The nice people I
have met over the years.”
Marcia Murray has been with
the Bank’s Pikesville office for 11
years and has been in banking
for 34 years. She manages the
Bank’s largest deposit branch with
the assistance of her experienced
staff of 10. Marcia truly believes
in going the extra mile for her
customers no matter what the situation. She says, “The
close relationships I’ve developed with our customers are
so special to me. Being able to assist them not only with
their banking, but also in areas outside the Bank gives me
such a wonderful feeling. They are like an extended part
of my family.”
Establishing Friendships
Our Sincere Thanks
Ensuring that each of our customers receives the
highest level of customer care is a never-ending process
and our number one priority. We understand that
you have many choices when it comes to your banking
needs, and we sincerely thank you for granting us the
privilege of serving you.
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Financials
Eastern Savings Bank and Subsidiaries
Consolidated Statements of Financial Condition
DECEMBER 31
ASSETS
Cash
Liquidity and Investments
Mortgage Loans
Investments in Real Estate
Federal Home Loan Bank Stock
Property and Equipment
Accrued Interest Receivable
Prepaid Expenses and Other Assets
Total Assets
2006
Total Liabilities
Total Stockholders’ Equity (1)
Total Liabilities and Stockholders’ Equity
$1,000,000
$2,034,485
52,202,353
876,057,966
32,431,250
2,017,100
3,623,593
9,356,492
2,595,238
$322,073
30,735,760
784,046,524
23,514,923
1,749,800
2,228,527
7,617,533
823,806
$980,318,477
$851,038,946
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
$823,178,537
Federal Home Loan Bank Advances
5,000,000
Mortgage Escrow Accounts
2,259,911
Accrued Interest Payable
3,896,797
Accrued Expenses and Other Liabilities
7,978,831
842,314,076
138,004,401
$980,318,477
(1) The table below reconciles stockholders’ equity, as presented
in accordance with generally accepted accounting principles, with
core and total capital, and as a percentage of adjusted total assets
and risk-weighted assets, respectively.
DECEMBER 31, 2006
Stockholders’ Equity
General Valuation Allowance
Fully Capitalized Items
Excluded Portion of Investments in Subsidiaries
Total
Required Minimum
Excess Capital
Assets
2005
$800,000
$600,000
$400,000
$200,000
$0
2002
2003
2004
2005
2006
2005
2006
Deposits
$708,518,150
5,000,000
2,567,561
2,538,220
7,293,294
$1,000,000
$800,000
$600,000
725,917,225
125,121,721
$851,038,946
$400,000
$200,000
$0
2002
2003
2004
The Federal Deposit Insurance Corporation (FDIC), an agency of the
U.S. Government, insures all depositors’ savings up to $100,000 in
accordance with the rules and regulations of the FDIC.
CORE CAPITAL
$138,004,401
--------(12,349,441)
125,654,960
(38,746,306)
$86,908,654
14.25%
--------(1.28)
12.97
(4.00)
8.97%
TOTAL CAPITAL
$138,004,401
8,748,915
(3,251,051)
(12,349,441)
131,152,824
(55,850,902)
$75,301,922
19.77%
1.25
(.46)
(1.77)
18.79
(8.00)
10.79%
Regulatory Capital is the basis by which the Office of Thrift Supervision determines whether an institution is solvent and whether an
institution is meeting its regulatory capital requirements. Eastern Savings Bank exceeds its regulatory requirements and has been classified
as a “well-capitalized” financial institution.
The Bank’s annual financial statements are audited by the independent auditing firm of KPMG LLP, Certified Public Accountants.
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The Management Team
Chairman of the Board
Beth H. Goldsmith
Board of Directors
Beth H. Goldsmith
Alan E. Berkowitz
Howard K. Cohen
David C. Daneker
Howard M. Friedel
Yaakov S. Neuberger
Solomon A. Spetner
Barry H. Stern
Executive Committee
Alan E. Berkowitz – Director
Yaakov S. Neuberger – Chairman of the Executive Committee
Lawrence A. Trainor – Executive Vice President and Chief Financial Officer
Officers
Mary E. Atteberry White
Assistant Vice President,
Human Resources
Carol A. Hamel
Assistant Vice President,
Asset Management
Pamela S. Balcerak
Vice President, Savings
T. Glenn Hasenfus
Assistant Vice President, REO
Michael S. Barrett
Vice President, Loan Origination
Jerry W. Bowling
Vice President, Asset Management
Linda L. Cashman
Vice President, Loan Origination
Robert F. Cornthwaite
Vice President, Accounting
Wayne A. Dickie
Assistant Vice President, Acquisitions
Jeffrey F. Dwyer
Assistant Vice President, Accounting
Jonathan I. Feldman
Senior Vice President,
Loan Origination
S. Mark Giltner
Assistant Vice President, REO
Christopher T. Johnson
Assistant Vice President,
Asset Management
John C. Kessler
Vice President, Information Systems
Kurt S. Klebrowski
Assistant Vice President,
Loan Origination
Dean P. Kolocouris
Assistant Vice President,
Loan Origination
William J. Monacelli
Vice President, Commercial Lending
Desiree P. Orsburn
Vice President, Loan Servicing
Joseph J. Slovick III
Assistant Vice President, Compliance
Andrew T. Trainer
Assistant Vice President,
Loan Origination
Kirk D. Warner
Vice President, Loan Origination
Christopher P. Wooten
Vice President, Accounting
Richard C. Zeskind
Vice President and General Counsel
Richard M. Kovens
Senior Vice President,
Commercial Lending
Miles S. Krieger
Vice President, Loan Origination
Tracey A. Mandish
Assistant Vice President,
Internal Audit
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