2017 ANNUAL REPORT
A Bank
Believe in
You Can
FROM THE PRESIDENT + CHAIRMAN
Banking is believing.
Before you can achieve anything, first you must believe you can do it! At GSB, we live this philosophy every day.
This belief once again produced financial milestones. The Bank’s net worth exceeded $100 million, a benchmark that signifies
capital strength and long-term sustainability. Net income exceeded $7.4 million, eclipsing last year’s record earnings performance.
2017 marked the end of our partnership with Clark Insurance when it reformed its employee ownership structure, but we continue to
work closely with this company in order to bring the best insurance solutions to our customers.
As you read through this year’s report, you will see our brand is evolving. More than just a cosmetic change, we believe the visual
changes reinforce a more purpose-driven brand that is more strategic, more in touch, more knowledgeable, more proactive and
more reflective of who we are as a Bank and as individuals. Our new brand positioning expresses that Gorham Savings is going to
go the extra mile—always. We believe we’ll find the answer, solve the problem, meet the need and provide the ideal customer experience.
When I reflect on the past year, I see GSB employees demonstrating their belief in a myriad of ways—with customers, with prospective
customers, in the community, and in their professional and personal lives.
This past year, our Commercial and Business bankers showed they believe in their customers’ dreams every day—dreams of starting,
owning or expanding their business. This led to the origination of $168 million in new loans and leases this past fiscal year.
In originating more than $52 million in new residential mortgages, our Consumer Lending team demonstrated their belief that they could
help hundreds of customers realize the American dream of owning a home. In fact, with home equity loan originations climbing to $28 million,
hundreds more customers were able to pursue other dreams, such as sending their kids to college or adding a new addition to their home.
Our belief in supporting our communities is foundational to mutual banking, and our efforts clearly demonstrate our desire to be
a force for good. With volunteer hours exceeding 4,000 and contributions eclipsing $360,000, GSB’s impact continues to grow
throughout our footprint.
I have always believed the key to our success is the great people we have at GSB. So, when we had the opportunity to add Steve deCastro
to management this year, we knew it would be an impactful move that would strengthen our leadership team now and into the future.
Perhaps the most visible example of believing is the complete restoration of the Grand Trunk building at One India Street. While others
may have been discouraged by such an undertaking, we believed it was more important to restore this iconic symbol of Portland’s
history of commerce and progress than to construct something new. We believed it was more important to participate in the revitalization
of what had been a neglected part of this great city, and to anchor our four other locations on the peninsula.
Greater Portland is evolving in so many ways as its popularity and desirability grow nationwide. As Maine’s only bank headquartered
in Cumberland County, we believe we are uniquely poised and positioned to be the bank of choice for the next 150 years.
Chris Emmons, President and Chief Executive Officer
In my 30-plus-year affiliation with Gorham Savings Bank, I am continually amazed at the ambitious goals set and reached, the challenges
faced and overcome, and the persistent desire to do more to serve our customers and our communities at the highest level.
As you will read in this report, 2017 by many accounts was the best in our long history. Last year we added
significant talent across the organization, including the addition of Daniel McCormack to our board of
directors. Dan joined our board in January and has been a Corporator since May 2014. He serves in a number
of professional and volunteer leadership roles in our community, including on the boards of the University of
New England and the Greater Portland Economic Development Corporation, and he also serves as treasurer of
Daniel Hanley Center for Health Leadership. His experience and insights are a tremendous asset to our board.
Daniel McCormack
As we approach our 150th anniversary, I am prouder than ever to be associated with Gorham Savings Bank. I believe our founders
would admire our commitment to improving the economic and social well-being of our customers and the communities we serve.
Daniel Willett, Chairman
Big Small
Supporting the Business Community in Ways
&
We’ve always believed that the best place to support a community is from within. While our
commitment to Maine’s business and commercial community is nothing new, as of April 2017,
we have officially opened our doors at One India Street in Portland. This newest branch location is
the result of an extensive and painstaking historical renovation and has become a flagship space
for the Bank that complements our other branch locations within Portland. It will not only house
key business and commercial bankers, it has already come to embody our commitment to
these critically important financial communities.
“Here’s a building that’s historically signif icant, that has an identity all its own. And the way
Gorham Savings Bank has approached the project—the care, respect and restraint they’ve shown—
it speaks to their understated and very professional reputation in the Portland business community.”
FORD REICHE
ONE INDIA STREET
• Houses key administrative and corporate officers
• Provides critical in-market support for business
and commercial customers
• Helps the Bank grow its market share on
Portland’s peninsula
LAUNCHPAD AT YEAR FIVE
THE SMALL BUSINESS IDEA THAT’S
TURNING OUT TO BE ANYTHING BUT.
In 2017, Gorham Savings Bank will enter the fifth year of its LaunchPad
competition—where any Maine-based small business or entrepreneur can
enter to win a grant of $50,000. What started as a small program to help
small businesses has turned into a big deal that’s only getting bigger.
Just ask any one of the companies that have won. From Pika Energy to
Bixby & Co. to Flowfold and last year’s winner, Fluid Farms, the impact
that LaunchPad has on Maine’s small-business community has been,
in a word, enormous.
Visit GorhamSavingsBank.com/LaunchPad to see how our past winners
are turning their wins into sustained success.
By June 6, 2017
550+
APPLICATIONS
100+
CITIES AND TOWNS
$190,000
AWARDED
“LaunchPad galvanized a
trajectory of growth and ability
to seize on timely opportunities
to grow our business.”
2014 LAUNCHPAD WINNER
KATE MCALEER,
FOUNDER OF BIXBY & CO.
This Is How We Say
THANK YOU.
OUR COMMITMENT TO OUR COMMUNITY
Sometimes the Bottom Line Is a Number.
SOMETIMES IT’S
A PLAYGROUND.
The commitment to community is as deeply ingrained in the fabric of this company as is any
other principle. And examples abound. From the Southern Maine Heart Walk to Boys & Girls
Club Winter Wishes to Junior Achievement to CA$H Make the Most of Your Money Week—our
commitment to our communities is vast, meaningful and personal and it’s growing. After all,
the best way to support and strengthen a community is to be a member of that community yourself.
Fiscal Year 2017
4,000+
100+
$360,000+
HOURS DONATED
ORGANIZATIONS
SUPPORTED
DOLLARS REINVESTED
“As a manager, I use volunteerism for team building, leadership opportunities and a tried-and-true
method for introducing new staff members. This would not be the case if I did not always have the
full support of this Bank. Whether it’s paying dues, offering incentives or buying the crew dinner,
it’s clear we have the support of the entire institution.”
LILY HANSTEIN, PORTLAND BRANCH MANAGER
OUR PURPOSE
force
good
We Aspire to Be a
for
IN THE LIVES OF EVERYONE WE TOUCH.
One person. One business. One community at a time.
To be sure, there are many things we’ll have to do right if we’re to achieve our highest ambitions.
From system improvements to improving the customer experience, we’ve made important
strides this year across the board. Beyond that, we’ve also articulated a core set of underlying
principles and practices that will guide our tactical initiatives, unite our employees and
distinguish Gorham Savings Bank in the marketplace.
TRANSPARENCY
BUSINESS FOCUS
Trust is at the heart of our relationships—be it with customers,
employees, Corporators or partners. We work hard to earn
that trust every day. We also aspire to earn your respect.
From the way we handle mistakes to how much we contribute
to our communities, we aspire to earn the respect of our
customers through honesty, integrity and clarity.
Local businesses are the engine that drives the local economy.
We’ve always believed that one of the most effective ways to
strengthen local communities is to support the businesses
that they’re built on. From LaunchPad to our newest branch
location at One India Street, we’re investing in and working
with Maine businesses like never before.
OPTIMISM
COMMUNITY
We want you to succeed and we’re willing to work with you
to make that happen. If there’s a way to say yes, we’ll keep
working until we find it. This principle drives us to work
harder for—and do more for—our customers. In fact,
it’s one of our defining principles.
Our highest goal is to contribute meaningfully to healthy,
productive and engaged communities—places where the
potential for tomorrow to be greater than today is real and
palpable. To that end, we’re doing more in and for our
communities than we’ve ever done before—and we intend
to increase our involvement in the years to come.
LOCAL
Local decisions based on local knowledge, made by local
people, create all kinds of local benefits. And every dollar
deposited at Gorham Savings Bank stays right here in the
state of Maine, where it can do the most good for our
communities. We are incredibly proud to be a bank for
Maine and of Maine.
CUSTOMER FIRST
Today, many people see their bank as a continuing set
of transactions. A commodity. But to some, a bank is an
essential resource, without which they cannot achieve
many of their biggest goals in life. We believe relationships
are the difference. As such, we aspire to build the strongest
customer relationships in the financial services industry.
Officers, Directors & Corporators
OFFICERS
DIRECTORS
Christopher W. Emmons, President and Chief Executive Officer
Daniel P. Hunter, Chief Operating Officer and Chief Financial Officer
Roger C. Levesque, EVP, Senior Loan Officer
Stephen P. deCastro, Executive Vice President
Eric A. Andrews, Chief Banking Officer
M. Daniel Hancock, Chief Deposit Officer
Daniel G. Willett, Chairman
Katherine B. Coster, Vice Chairwoman
Christopher L. Claudio
Dennis P. King
Joseph Malone
Daniel McCormack
Jere G. Michelson
Richard M. Roderick
Paula D. Silsby
Bradford A. Wise
Julie D. Brooks, SVP, Senior Risk Officer
Kimberly A. Donnelly, SVP, Director of Business Banking
Matthew W. Early, SVP, Commercial Loan Officer
Kevin M. Heatley, SVP, Director of Technology
Kelly M. O’Donnell, SVP, Core Systems & Emerging Payments Officer
Karl H. Suchecki, SVP, Commercial Loan Officer
Christine M. Weymouth, SVP, Director of Cash Management
Rebecca L. Winslow, SVP, Director of Retail Delivery
Todd M. Abbotoni, VP, Commercial Loan Officer
Beth C. Ahmida, VP, Commercial Loan Portfolio Officer
Toni A. Bailey, VP, Customer Service Center Manager
Jane W. S. Cirone, VP, Finance & Accounting Manager
Jeremy T. Clough, VP, Information Security Officer
Linda T. Cooper, VP, Senior Operations Manager
Lisa M. Cormier-Smith, VP, Director of Human Resources
Katherine E. Damon, VP, Regional Business Banking Officer
Peter J. Eley, VP, BSA/Security Officer
Gloria A. Fredette, VP, Loan Servicing Manager
Mark S. Girr, VP, Director of Marketing & Communications
Jody L. Hamilton, VP, Senior Regional Retail Manager
Lindsay Harris, VP, Commercial Loan Portfolio Officer
Lisa M. Hughes, VP, Regional Business Banking Officer
Kathleen O. Kalicky, VP, Deposit Operations Manager
Kim M. Kenney, VP, Senior Marketing Specialist
Ronald W. Knott, VP, Director of Consumer & Residential Lending
Jill M. LaFlamme, VP, Commercial Loan Portfolio Officer
Susan E. Laliberte, VP, Retail Loan Processing & Underwriting Manager
David N. Moravick, VP, Commercial Loan Officer
Marie L. Morin, VP, Senior Business Officer
Cynthia M. Nichols, VP, Commercial Loan Portfolio Officer
Matthew G. Palmer, VP, Credit Administration & Collections Manager
Holly A. Pepin, VP, Regional Business Banking Officer
Frederick G. Proctor, VP, Commercial Loan Officer
Sue E. Strout, VP, Senior Regional Retail Manager
Julie Landry Viola, VP, Business Banking Lending Manager
Melanie T. Wendell, VP, Mortgage Loan Officer
Katie L. Bellerose, AVP, Credit Analyst
Jessica J. Burbank, AVP, Mortgage Loan Officer
Brian W. Cirone, AVP, Credit Manager
Deanna M. Dusseault, AVP, Deposit Operations Officer
Michelle L. Fogg, AVP, Retail Support Manager
Kim C. Getchell, AVP, Business Banking Loan Portfolio Officer
Troy A. Hendrickson, AVP, Regional Business Banking Officer
Julia B. Hubbard, AVP, Payroll & Benefits
Donald G. Joly, AVP, Network Administrator
Alden L. Joy, AVP, General Services Manager
Troy R. Levesque, AVP, Recruitment Officer
Tracey L. Sardella, AVP, Compliance Officer
Jason N. Straetz, AVP, Business Banking Portfolio Loan Officer
Lisa M. Thomas, AVP, Employee Development Officer
HONORARY CORPORATORS
John B. Alden*
Richard T. Barden
Richard Berman
D. Brenda Caldwell*
Philip A. Cook, Jr.
Carroll T. Cutting
Geraldine A. Day
Harvey C. Donald
F. Paul Frinsko*
Natalie L. Hague
George V. Hall
Anne M. Haskell*
Horace Horton
John R. Huard, Sr.
Donald G. Marean
Eldon L. Morrison
Mary Pennell Nelson
John D. Phinney*
Sheila Phinney-Levine
William W. Rust
Sally G. Vamvakias
Ralph B. Willis*
Herbert H. Woodbrey
*Honorary Directors
CORPORATORS
David J. Abbott
Mark Adams
Timothy P. Agnew
Arthur Batson III
Tom Biegel
Leo W.C. Binette
Sheri Boulos
Danny Bouzianis
Michael Boyson
Samuel B. Broaddus
Joseph Bruno
Steve Campbell
Michael Cianchette
Christopher Claudio
Russell J. Collett
Matthew Cook
Katherine B. Coster
Andrew D. Couch
Stephen Crockett
Albert R. Curran
Mark Curtis
Kristine Delano
Craig N. Denekas
Steven DiMillo
Susan J. Doliner
Robert H. Dorr
Christopher W. Emmons
Donald Esty, Jr.
Fred Forsley
Kenneth Grondin
Charles F. Hahn
Katie Fullam Harris
Barry J. Hobbins
Janice A. Jongerden
Dennis P. King
Kenneth M. Lefebvre
Renee J. Lewis
Burleigh H. Loveitt
Joseph Malone
Anne M. McBrady
Daniel McCormack
Bradley C. McCurtain
Edward S. McKersie
Peter Michaud
Jere G. Michelson
Thimi Mina
John P. Nolan
Brian H. Noyes
Daniel J. O’Halloran
Timothy O’Neill
Gregory R. Palmer
Michael J. Phinney
Charlie Poole
Malcolm Poole
Ford Reiche
M. Parker Roberts III
Richard M. Roderick
Linda F. Sanborn
Timothy W. Seavey
Paula D. Silsby
Michael Q. Simonds
Angelo Sotiropoulos
Walter P. Stinson
Lisa Toner
Dana Totman
Christopher M. Tyll
David E. Warren
Anna Wells
Daniel G. Willett
Jeffrey S. Willis
Bradford A. Wise
Nicole Witherbee
Statement of Condition
GORHAM BANCORP, MHC AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) March 31, 2017, and 2016
ASSETS
20172016
Cash and due from banks
$20,246,103
$22,101,807
Investment securities and federal funds sold
158,322,029 152,845,697
Total loans and leases
812,089,634 782,972,871
(7,392,905)
(7,303,695)
Less allowance for loan and lease losses
Net loans
Other assets
TOTAL ASSETS
804,696,729 775,669,176
55,258,472 53,811,640
$1,038,523,333 $1,004,428,320
LIABILITIES AND NET WORTH
Customer deposit accounts $682,413,568 $648,466,381
Brokered deposits
127,108,785 159,233,891
Total borrowings
113,432,317 88,097,055
Other liabilities
13,780,597 13,683,605
Total liabilities
936,735,267 909,480,932
Net worth
101,788,066 94,947,388
$1,038,523,333 $1,004,428,320
$4,604,218 $3,801,627
TOTAL LIABILITIES AND NET WORTH
Standby letters of credit outstanding not included above
SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) March 31, 2017, and 2016
Total interest and dividend income
$35,699,148 $34,037,856
3,661,138 4,182,338
32,038,010 29,855,518
600,000 1,000,000
Net interest income after provision for credit losses
31,438,010 28,855,518
Noninterest income
6,205,345 5,703,421
Gain on sale of securities and other investments
1,365,543 302,382
29,898,595 26,844,422
Income before income taxes
9,110,303 8,016,898
Income tax expense
1,753,733 2,004,225
$7,356,570 $ 6,012,673
Total interest expense
Net interest income
Provision for credit losses Noninterest expense
Net income
This statement has not been reviewed or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation.
GORHAM
64 Main Street
(207) 839-4450
FALMOUTH
65 Gray Road
(207) 878-7457
We’re Here to
make today
easier
&
tomorrow
better
FOR OUR CUSTOMERS.
202 A US Route One
(207) 347-2355
KENNEBUNK
30 Main Street
(207) 467-7201
PORTLAND
172 Commercial Street
(207) 773-4027
One India Street
(207) 221-8449
63 Marginal Way, Suite 200
(207) 221-8484
71 Marginal Way
(207) 221-8956
118 Congress Street
(207) 773-4027
SCARBOROUGH
38 Hannaford Drive
(207) 883-7440
SOUTH PORTLAND
395 Gorham Road
(207) 773-9646
STANDISH
Route 25
Colonial Marketplace
(207) 642-4200
WATERBORO
11 Sokokis Trail
(207) 247-5500
WINDHAM
766 Roosevelt Trail
(207) 892-2621
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