President's Message
(From the 2007 Annual Report)
By Peter L. Judkins
President & Chief Executive Officer
2007 was a very interesting year to be in the banking business. You couldn’t turn on the TV, listen to the radio or open the newspaper without seeing or hearing something about the U.S. mortgage crisis. According to a recent congressional report, it is estimated that as many as two million families will lose their homes before the mortgage crisis is over. In addition to the impacted families, this situation has added significant challenges to the U.S. economy.
The good news in this mess is that Franklin Savings Bank has continued to follow prudent lending practices and, as a result, we aren’t experiencing an unusual number of foreclosures or mortgage holders who can not afford to make their mortgage payments. We have and will continue to make every effort to approve loans only for qualified buyers. Although it is often times upsetting to an applicant to hear that he or she does not qualify for a loan, it is the right decision for both the customer and the bank in the long run. We feel strongly that we do not do anyone any favors by approving loans that put them in positions of financial hardship.
Going forward, Franklin Savings Bank should benefit from a decline in the number of mortgage brokers remaining in the business and competing with us for the same base of borrowers. We are also hopeful that recent developments, combined with our strong lending practices, will strengthen our position as the lender of choice by realtors and home buyers. In the meantime, we have worked to enhance our product offerings with Franklin Bill Pay and our new "Green Lending" initiative. At Franklin Savings Bank, customers know they can depend on consistent, top-quality service! Through it all, we want our customers to understand when we ask . . .
“Why would anyone bank anywhere else?”
Our mission is to remain a financially strong, independent, community bank, dedicated to superior customer and community service. We believe this mission is accomplished through our continued commitment to retaining an experienced and highly motivated workforce. Our goal is to support our communities for years to come.
In supporting our communities, Franklin Savings Bank and our Community Development Foundation contributed $138,800 to various non-profit, economic development and educational efforts in 2007. Our employees continue to be very active participants in many community activities and organizations.
Franklin Savings Bank is proud to have been recognized for several significant accomplishments in 2007:
- For the seventh consecutive year, Franklin Savings Bank ranked as the strongest bank in Maine, according to TheStreet.com, formerly Weiss Ratings Inc. In fact, we are the only “A” rated bank in Maine!
- America’s Community Bankers awarded Franklin Savings Bank a Community Bank Award, for our economic development initiatives to retain local jobs in conjunction with the Greater Franklin Development Corporation and its purchase of the former MBNA building.
- The Children’s Task Force named Franklin Savings Bank as its Outstanding Business Supporter for 2007.
Financial Highlights
The bank enjoyed another strong year, ending the year with total assets of $301.8 million and net income of $3.36 million. Loan demand returned to more typical levels after some very strong growth years. Even with the leveling off, we closed 628 consumer mortgage and home equity loans for a total of $50.7 million. We also closed 470 commercial loans, totaling $29.0 million and 1,712 non-mortgage consumer loans totaling $12.8 million. We experienced moderate deposit growth during the year, primarily in the higher rate CD products.
We look forward to another year, serving our customers and our communities in 2008!