We can all chalk up one more not-so-normal year. Like many businesses, we found ourselves dealing with staffing shortages, while still dealing with impacts from the Covid-19 pandemic. At the same time, we saw sudden and sharp increases in interest rates. If we were looking for “normal” in 2022, we didn’t find it!
We enjoyed many successes, despite the uncertainties and disruptions (which we added to by starting a significant renovation to our banking space in Saco). In a challenging labor market, we welcomed 24 new colleagues to our ranks in 2022. Between the Bank, Paquin & Carroll Insurance1, and S&B Financial Services2, we employ approximately 200 local residents. That’s 200 people with quality jobs who give their time and spend their money in the community as part of the local economic engine.
Operating as a mutual organization brings several duties. We have obligations to our customers, our communities and our employees. Those are managed in the context of ensuring the soundness of the organization. One of those responsibilities involves our philanthropic efforts. Along with countless volunteer hours given by our staff, we donated more than $660,000 in 2022, much of that through our charitable foundation. The increase of more than 10% over our previous high recognized in particular the growing needs in areas of mental health, food insecurity and heating fuel assistance.
Customer deposits topped $800 million at the end of 2022. It is notable to look back to the end of 2019 (pre-pandemic) and observe that those deposits grew more than 43% over a three-year stretch! Paquin & Carroll Insurance1 was a significant contributor to our bottom line, producing over $1.2 million in net earnings. S&B Financial Services grew to over $200 million in assets under management despite a very turbulent market. Loan activity was strong once again. After removing the impact of $11.5 million of Payroll Protection Program loans, our portfolio grew $77 million in 2022, an 8.5% increase.
Although our earnings and our capital were both negatively impacted by significant declines in the securities markets, net income came in above $5 million and regulatory capital remained quite healthy at more than 11% of assets. These levels sustain our continuing growth while also serving our purpose as a mutual.
Our two hundredth anniversary is just a few years away. We continue to navigate an extraordinary string of tempestuous times, with uncertainties involving the labor market, inflation, interest rates, wild swings in investment markets as well as concerns about public health. Throughout, we remain true to our mission of delivering service and value to our customers, granting assistance to our communities and supporting our employees. That is why we are here, and we will continue those efforts for many years to come.
— Robert C. Quentin, CEO, Roland Eon, Board Chair and Mark Jones, President
