2022 Semi-Annual Report
From the President & CEO
Neighbors:
I am thrilled to report on a number of items which have taken place since our 2021 Annual Report.
We are pleased that our Unionville Branch, located at 2 South Main Street, opened its doors on April 5th, 2022, becoming our second branch in the town of Farmington. We are excited to expand our presence and build new relationships in the Unionville neighborhood. That same week, we opened a 24/7 ATM located at 1776 Meriden Road in Wolcott. In addition to providing added access to banking services and convenience to our customers, the Unionville Branch and Wolcott ATM have reaffirmed our commitment to accessible, in-person banking.
To further assist our community’s first-time homebuyers, we have expanded the eligibility guidelines with the addition of our First-Time Homebuyer Plus program. The First-Time Homebuyer program assists those who wish to purchase homes in low- and moderate- income census tracts, while our First-Time Homebuyer Plus program assists low- and moderate-income individuals purchasing homes in any of the Bank’s communities. Adding to these robust programs, we also introduced our own down payment assistance program available to applicants within the First-Time Homebuyer programs. With the expanded eligibility and more flexibility in financing, buying a home has never been more achievable.
Last year, Thomaston Savings Bank introduced iFi University, a free, personalized financial education tool. This online program provides users with a library of articles, courses, quizzes, and videos on a number of financial topics, all tailored to the user based on their current knowledge. In order to ensure more of our customers have access to the necessary tools to achieve their financial success, we are excited to extend iFi University as a resource to the Spanish speaking community by offering the option to view the website in Spanish. We are proud to offer an option that will cater to a larger customer base and we encourage all to utilize this tool on their journey to financial success.
FINANCIALS
The first half of our current fiscal year was highlighted by solid balance sheet growth and continued strong earnings. Total assets increased by $12 million, or 0.8%, over the first six months to $1.60 billion at March 31, 2022. Total deposits increased by $37 million, or 2.6%, to $1.47 billion including strong growth of $74 million in retail deposit balances. Municipal deposit balances contracted $37 million due to normal seasonal balance fluctuations and shifting some of the balances off balance sheet. Total loans declined by $28 million, or 3.2%, to $848 million at the end of the period mainly due to forgiveness of Paycheck Protection Program loans. Additionally, $6 million was added to regulatory capital during the period.
The Bank’s core net income, which excludes certain non-recurring items, was very strong at $5.9 million for the first six months of the fiscal year. Compared to the same period of the prior fiscal year, current year results were $490,000, or 7.6%, lower, due to reduced gains from the sale of residential mortgages which were $1.8 million, or 69.8% lower than the prior period. While mortgage origination volume remains strong, as rates have begun to rise, the sales spread has compressed and the Bank is now holding new residential mortgage originations on the balance sheet rather than selling them. This will ultimately result in higher net interest income over the coming years.
The other two main sources of core revenue, net interest income and noninterest income, were both higher than the prior period. Net interest income grew by $14,000, or 0.1%, and noninterest income grew by $614,000, or 22.1%. Loan loss provision expenses were $1.4 million lower as the Bank did not incur any provision expenses in the current year as the level of loan loss reserves is appropriate. Core operating expenses were higher by $897,000, or 5.2%. The increased expenses were primarily related to data processing and compensation expenses.
Financials
Board of Directors (In photo order)
Board of Directors
Owner, Town & Country Real Estate
Chairman
Zackin Zimyeski Sullivan
Vice Chairman
Partner, Law Firm of Secor, Cassidy & McPartland, P.C.
President and Chief Executive Officer, Main Street Community Foundation
Retired, Former Executive Vice President and Chief Operating Officer, Thomaston Savings Bank
Partner, Seabourne & Malley Attorneys at Law
President and Chief Executive Officer, Thomaston Savings Bank
Owner and President, Gemco Manufacturing Company, Inc.
Co-Owner, Bushka Lumber & Millwork Co., LLC
Executive Management (In Photo Order)
Executive Management
Executive Vice President
Chief Operating Officer
Senior Vice President
Chief Risk Officer
Senior Vice President
Chief Credit Officer
Senior Vice President
Chief Human Resources Officer
Senior Vice President
Chief Information Officer
Senior Vice President
Chief Financial Officer
Senior Vice President
Chief Digital Banking Officer
President
Chief Executive Officer
Senior Vice President
Senior Retail Banking & CRA Officer
Senior Vice President
Chief Loan Officer
Routing #: 211174259