Stephen L. Lewis
President,
Chief Executive Officer
2023 Semi-Annual Report
Neighbors:
I am happy to report on several items which have taken place since our 2022 Annual Meeting.
The first half of our current fiscal year was highlighted by solid balance sheet growth and continued strong earnings. Total assets increased by $72 million, or 4.6%, to $1.65 billion at March 31, 2023. Total deposits declined $12 million, or -0.8%, to $1.47 billion. Total loans increased by $74 million, or 7.9%, and reached a new milestone of over $1.0 billion at the end of the period. As market rates have continued to rise, sales spreads on residential mortgages have tightened and even gone negative, resulting in the Bank retaining all new originations on the balance sheet rather than selling them. Residential balances during the first six months increased $46 million, or 14.3%. Retaining these loans on the balance sheet has resulted in lower gains on loans sold, but has favorably impacted interest income. Total borrowings increased $61 million to $63 million and were used to fund the significant loan growth during the first six months. Additionally, $12 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 $7.6 million for the first six months of the fiscal year. Compared to the same period of the prior fiscal year, current year results were $1.7 million, or 28.9%, higher, due to a significant improvement in net interest income, which was $5.0 million, or 23.6% higher than the prior fiscal year-to-date. Noninterest income grew $388,000, or 11.4% versus the prior period. Loan loss provision expenses were $600,000 higher as the Bank did not incur any provision expenses in the prior year. The current year provision expenses are reflective of the significant loan growth experienced during the first six months. Core operating expenses were higher by $1.8 million, or 10.0%. The increased expenses were primarily related to compensation and data processing.
Despite recent media coverage of three bank failures, I am happy to report that the overall banking industry remains strong. These failures were due to poor risk management practices at those specific institutions, coupled with the unexpected rise in interest rates. I would like to reassure you that Thomaston Savings Bank remains safe and sound. Not only do we continue to be well-capitalized, but we also remain a mutual savings bank, committed to providing financial services to our customers, employees and community as we have for almost 150 years.
This year, Thomaston Savings Bank, along with the Thomaston Savings Bank Foundation, Inc., participated in various community giving initiatives. These included, but were not limited to, volunteerism from our Can Do Crew, various donations through our Denim Days and Act to Impact programs, and fuel assistance grants to those who are unable to afford essential utilities. I encourage you to view our virtual Community Impact Report for an in depth review on how we support the neighborhoods we serve, as we remain committed to the human and material needs of our community. I am proud of the enthusiasm our employees continuously show as we work to improve the quality of life of our neighbors.
Not only is it our priority to support our local communities, but we also strive to educate our neighbors on the topic of financial wellness. Last year, we launched our credit score monitoring and educational tool, Credit Sense, which is available for free through Online Banking and the Thomaston Savings Bank Mobile App. Since its launch in late August 2022, we have seen over 2,000 enrolled users. Continued use of Credit Sense and the educational tools found within it have resulted in a positive change in overall credit scores of users, thus positively impacting our customers’ access to greater financial opportunities.
As always, I would like to express my gratitude to our employees, Corporators and Board of Directors for their sustained commitment to the Bank, our customers, and our community. That being said, we are pleased to welcome a new Director to our Board, Michael Madow, who was elected during our 2022 Annual Meeting. Mr. Madow is President of Ramco Recovery, Inc. a full service environmental service company located in Thomaston. He is a wonderful addition to our team, further strengthening our ties to our local community. We look forward to the contributions he will make to the Bank in the years to come.
Sincerely,
Stephen L. Lewis
President & CEO, Thomaston Savings Bank
Michael S. Madow
Mark D. Malley
Stephen L. Lewis
Mark DiVenere
Richard Bushka
James R. Nichol
Susan D. Sadecki
Thomas G. Parisot
Carrie A. Zimyeski
James S. Kaniewski
Board of Directors (In photo order)
Board of Directors
Michael S. Madow
President, Ramco Recovery, Inc.
Mark D. Malley
Partner, Seabourne & Malley Attorneys at Law
Stephen L. Lewis
President and Chief Executive Officer, Thomaston Savings Bank
Mark P. DiVenere
Owner and President, Gemco Manufacturing Company, Inc.
Richard F. Bushka
Co-Owner, Bushka Lumber & Millwork Co., LLC
James R. Nichol
Retired, Executive Vice President and Chief Operating Officer, Thomaston Savings Bank
Susan D. Sadecki, MBA
President and Chief Executive Officer, Main Street Community Foundation
Thomas G. Parisot
Vice Chairman
Vice Chairman
Partner, Law Firm of Secor, Cassidy & McPartland, P.C.
Carrie A. Zimyeski, CPA
Chairman
Chairman
Partner, Zackin Zimyeski Sullivan
James S. Kaniewski
Owner, Town & Country Real Estate
New Board of Directors Member Elected
Thomaston Savings Bank has elected Michael Madow to their Board of Directors during their 2022 Annual Meeting. Mr. Madow is President of Ramco Recovery, Inc. a full service environmental service company in Thomaston founded in 1992.
Madow has served as President of Ramco Recovery, Inc. for the past 20 years, managing daily business operations and project management. Their company focus is to provide quality customer service, safety, and building long term relationships. Madow has received a variety of environmental specific trainings including Resource Conservation and Recovery Act Training and Industrial Spill Response and Facility Safety Training.
Madow earned his Bachelor’s in Business Administration from Eastern Connecticut State University with a concentration in Industrial Operations and Marketing and a minor in Communication. Madow is an active member of several local community organizations, including serving as an Officer of the Rotary Club of Thomaston. He is a member of the Economic Development Commission in Thomaston as well as the Thomaston Town Center Planning Committee. Michael has served as a Corporator of Thomaston Savings Bank since October 2018 and resides in Thomaston with his wife Heidi and son Aaron.
Executive Officers
Rosemary Briglia
Executive Vice President,
Chief Operating Officer
Kimberly Lebron
Senior Vice President,
Chief Credit Officer
Rebecca M. Kayfus
Senior Vice President,
Chief Human Resources Officer
James Murdick
Senior Vice President,
Chief Loan Officer
Rebekah Stokes
Senior Vice President,
Chief Financial Officer
Jonathan Gilbode
Senior Vice President,
Chief Digital Banking Officer
Todd Burton
Senior Vice President,
Chief Retail Banking & CRA Officer
Patrick Quinn
Senior Vice President,
Chief Information Officer
Francesca Kracht
Senior Vice President,
Chief Risk Officer
Routing #: 211174259