Kennebec Savings Bank 150 Anniversary

Kennebec Savings Bank

The First 150 Years

Kennebec Savings Bank The First 150 Years

TABLE OF CONTENTS I. Letter from the President & CEO

4

II. Core Values and Mission Statement

6

III. About Us IV. A Brief History of Augusta

10

V. History of Maine Banking

18

Excerpts from Governor Chamberlain’s 1870 Address VI. Kennebec Savings Bank is Founded Previous page: These beautifully crafted green clocks can be found at most of the Kennebec Savings Bank’s locations.

An Unusual Bylaw

25

VIII. The Drive-Up Window: A New Concept in Banking Locked in the Vault A History of the Tappan-Viles Mansion

Kennebec Savings Bank: The First 150 Years Written and produced by Marshall Communications Design by Theresa Ayotte, Terelar Design & Photography Printing by Penmor, Inc. A special thank you to Kennebec Savings Bank employee, Amanda Cooley for her dedication and tireless work in making this 150th book project possible.

A special thank you to David S. Silsby who volunteered his time to do extensive research on Kennebec Savings Bank and other historical points of interest in Augusta spanning the first 125 years.

We would also like to thank Earle Shuttleworth Jr., executive director of the Maine Preservation Commission and members of the Kennebec Historical Society for assisting with identifying and gathering photos for this book and to Anthony Douin for his input.

22 24

IX. Acquisition of the Tappan-Viles Mansion, Introduction of the ATM © Copyright 2020 Kennebec Savings Bank

20

Act to Approve Kennebec Savings Bank for Incorporation VII. World War II, Augusta Continues to Grow

Opposite: Artist rendering by Paul Plumer depicting Augusta in 1870 commissioned by Kennebec Savings Bank in celebration of the Bank’s 125th anniversary.

9

X. Kennebec Savings Bank Turns 125 XI. Growth, Achievement and the Turn of the Century Y2K and Kennebec Savings Bank XII. The Mortgage Boom and Advances in Technology

28 32 36 38 40 44 46 51 56

Dick O’Connor’s Legacy

66

A Culture of Teamwork

72

XIII. A New Decade Past and Present Board Chairman XIV. A Final Note from the President & CEO

74 94 96

LETTER FROM THE PRESIDENT & CEO

K

ennebec Savings Bank, in celebration of its 150th anniversary, is proud to present this record of our past, and present, as we look to the future.

While the Bank has grown over the years, we have never lost sight of our roots.

Augusta has been the Bank’s headquarters for all of its 150 years, and the Bank’s name has also remained unchanged in that time.

Joshua Chamberlain signed the Legislative Act that created our charter in 1870.

The Bank was created back then so that the common person could save money and buy a home. We have stayed true to these core values while embracing growth opportunities that will help us better serve our customers and communities.

We have also remained a mutual organization. As a mutual, without the pressures of stockholders, we have more flexibility, allowing us to help more people while competitively growing the number of locations and services we offer.

Over the past century and a half, Kennebec Savings Bank has grown from a start-up

bank to a $1.1-billion bank, and is the 10th largest Maine-based bank. It now maintains a one third share of the market for deposits and loans within Kennebec County. Given Andrew Silsby, President & CEO

the number of banking choices in our region, that is a significant honor.

Our commitment to service and excellence has definitely played a strong role in this success. We have a great team of employees who are genuinely nice and helpful people.

And, many of us have been part of the Kennebec Savings Bank family for a very long time. You might even say some of us grew up with the Bank. I started at the Bank as a loan officer in 1993. Our chief operating officer started as a teller and spent time in

4

the mail room. Our business intelligence manager started in our summer intern program, and our controller started out as a teller at the Winthrop branch. Growing our leaders from within our organization has become an important part of our strategy.

I also think people respect and value our longtime, deep connection with the communities we serve. At Kennebec Savings Bank, we feel it is important to make a difference by giving back to the communities we serve, both of our dollars and of our time. As of the printing of this book, our employees donated more than 9,000 hours, which works out to more than eight and a half business days of volunteering per employee, per year.

With nearly 10% of our income going back to the communities we serve in the form of donations, through our Community Dividends Program, we are proud to be good corporate citizens.

Central Maine is thriving with new energy and new economic vitality. People are moving back to the downtowns. New restaurants, retail and other locally owned businesses are opening throughout the region. Kennebec Savings Bank is proud to support many of these economic developments.

Andrew joined the Bank in December 1993 as a loan officer. In 2003, Andrew was named a Rising Star by Independent Banker Magazine.

As we celebrate our 150th anniversary, as well as Maine’s bicentennial, I look back fondly on our many past achievements and the many great things to come for the Bank and our communities. I am also thankful for the many leaders who have led this fine institution and built upon prior successes. Each leader was the right leader for the institution at the time and the Bank’s success today is attributable to everyone’s collective efforts.

Sincerely,

Andrew Silsby President & CEO

5

Our Core Values

Excellence in Service, Teamwork and Community

• Service: delivering a superior experience that exceeds expectations.

• Teamwork: leveraging our expertise to achieve mutual success.

• Community: enhancing the communities we serve through unparalleled support.

Top: Every year, Bank employees come together to participate in the Old Hallowell Day Parade.

Left: Kennebec Savings Bank has been named Best of the Best Bank in the Morning Sentinel’s and Kennebec Journal’s Readers Choice Awards for many consecutive years.

6

Mission Statement Kennebec Savings Bank is committed to operating as a profitable, responsible and customer-focused community bank that: • Serves as the primary bank of individuals, families, professionals and businesses in our markets with great service, products and technology; • Positively contributes to the quality of life in our communities; and • Offers a challenging and rewarding work environment to the Kennebec Savings Bank team of employees.

Top right: Kennebec Savings Bank sponsors a wide range of youth athletic teams throughout its service area.

Right: A team of Kennebec Savings Bank employees volunteers at the Children’s Center’s annual Chili Chowder Challenge.

7

8

About Us For 150 years, Kennebec Savings Bank has invested in people and our communities

T

hroughout our long history, we have remained steadfast in our commitment to

150 YEARS

delivering the best possible banking customer service through expert guidance,

of Service to Communities

attention to detail and user-friendly technology.

Kennebec Savings Bank is a $1.1-billion state-chartered community bank, part of a

5 LOCATIONS

mutual organization with a team of more than 140 employees and offices in Augusta, Farmingdale, Freeport, Waterville and Winthrop, as well as “KSB Anytime� 24-hour electronic banking centers in Augusta, Farmingdale, Freeport and Manchester.

The Bank is proud that its involvement in the community as an employer, as a business, and as a contributor has led to many other successes besides its own.

Opposite: In 2017, President & CEO Andrew Silsby cut the ceremonial ribbon to open a new Electronic Banking and Loan Center in Freeport with Freeport Town Manager Peter Joseph and Bank officers Craig Garofalo, Bill Hill, Travis Rowell and Sandy Goodwin. The location was made into a full-service branch in 2019.

$1.1 BILLION 10TH LARGEST Maine-based Bank in 2019

$1 MILLION in Community Donations in 2019

9

A Brief History of Augusta

10

The Founding

A

ugusta, where our Bank was founded in 1870 and is still

Work on Augusta’s first courthouse began in 1790 in Market Square,

headquartered today, dates from the early 17th century by the

and the Eastern Star—Augusta’s first newspaper—went into circulation

Plymouth Colony, a group of Puritan Separatists who came to

four years later.

be known as the Pilgrims. They established a trading post on the Kennebec River at a site known by its Native American name— Cushnoc (or Coussinoc or Koussinoc), meaning “head of the tide.”

In 1797, the Kennebec Bridge was built, defining Augusta as a city that occupied both sides of the river.

Later, in 1754, Fort Western was constructed in Augusta and Fort Halifax was constructed in Winslow. In 1762, the first lots were granted to encourage settlement around the fort. The resulting village was comprised of seven huts occupied by 30 residents. Later, in 1769, Captain James Howard bought 900 acres, including the fort, and constructed a sawmill, the first industry in the area.

In 1788, the first bridge was built over Bond Brook, but a heavy rain swept the bridge away that next year.

Opposite: School day over, these Cony High School girls head for home over the Iron Bridge, built in 1890. In the background is the then new Augusta City Hall, built in 1896.

Right: Fort Western, once the commercial and political center of early Augusta, is shown here in 1885 as a tenement; it remained so until its restoration by W.H. Gannett in the 1920s.

11

A Center for Industry By the 1800s, Augusta was known as a great publishing center and manufacturing center for cotton, wool and paper. Between 1802 and 1864, 60 coastal vessels and deep-water ships were built on the shores of the Kennebec.

The hub of activity during those days was Water Street. The first brick stores were erected here in 1806. It was soon lined with a mix of retail

This Queen Anne style building served as Augusta’s high school until replaced by the flatiron building in the 1920s. It was replaced again by a new Cony High School further to the west in 2016.

shops, hotels, banks, the post office, publishing houses, sawmills, horse stables and an opera house, which would become one of Kennebec

revenue. In 1815, the War of 1812 ended, reviving trade. That same

Savings Bank’s early locations.

year, Cony Female Academy was founded.

Also in 1806, the first stagecoach to Augusta began providing twice

The Kennebec River Bridge collapsed in 1816, and it would be two

weekly service between the town and Brunswick. 1808 marked the first

years before it was rebuilt. The new bridge was a covered bridge, the first

year granite was quarried in Augusta.

of its kind in the area.

Also in 1808, a disturbance called the Malta War started over disputed

In 1820, Maine separated from Massachusetts and gained statehood.

land titles. As a result, the jail was burned, and an attempt was made to

Augusta would be named the state capitol in 1832.

burn the courthouse. The event culminated with a trial and acquittal of seven people accused of murdering a surveyor, Paul Chadwick.

The Kennebec Journal began publishing as a weekly newspaper five years

In 1814, the town and its people fell on hard times as the War of 1812

local news source for the people of Augusta.

after Maine became a state. Now a daily newspaper, it is still the primary

was making it difficult to make an income and, as a result, generate tax Opposite: Augusta’s Monument Park c. 1905. The park was conveyed to the city in 1879 and the Civil War monument to Augusta’s Civil War dead was dedicated in 1882.

Kennebec Savings Bank later moved to this neighborhood—its present location.

12

13

14

The Kennebec River The ability to harness the Kennebec for power further strengthened

Transportation began to evolve in the mid 1800s. The first locomotive

the local manufacturing industry. In 1834, the Kennebec Dam

reached Augusta in 1852, several years after it received its city charter in

Company was chartered and, in 1846, construction of a 10,000-spindle

1849. Augusta’s first depot was constructed soon after but was destroyed

cotton mill at the dam site was completed. It later became Bates

by fire, along with 12 freight cars, in 1864. The railroad line was

Manufacturing, famous for manufacturing field jackets and shoe

extended bit by bit, and Augusta was soon providing service between

linings during World War II.

Bangor and Boston.

The Kennebec River was the preferred mode of transporting freight to Portland and Boston via steam ships. The first regular steamboat service between Kennebec ports and Boston started in 1836. The first Kennebec Dam was constructed in 1837, completed at a cost of $600,000. In 1843, six sawmills and a large flour mill were erected. Seven people died in May 1848 when the steamer Halifax blew up in the Kennebec Dam lock.

In 1855, a flood swept away 100 feet of the dam. In 1870, 160 feet of the dam was swept away.

Opposite: The last day of the Della Collins is captured in this 1905 photograph. From 1879 to 1905, the Della Collins carried passengers and freight between Augusta and Bath. The Della Collins was broken up in 1906.

Right: Circa 1910 view of passengers boarding the Augusta-Winthrop and Gardiner Street Railway trolley bound for Winthrop.

15

The Civil War

The Great Fire

Maine soldiers served proudly in the Civil War. In 1861, when war was

Fire occurred often in Augusta but, by all accounts, the fire of 1865 was

declared, Augusta raised two companies in 24 hours. Augusta also served

the worst. Most of the buildings at that time were constructed of wood.

as the mobilization point for Kennebec Valley troops on the way to battle.

The fire, driven by wind, spread quickly. All but four buildings between

By 1866, a home for Civil War veterans was established at Togus. Today, it is the oldest veteran-related facility in the country.

General Joshua L. Chamberlain, who would later become the Governor of Maine, was instrumental in ending the war. It was he who accepted the surrender of General Robert E. Lee in Virginia.

Bridge and Winthrop Streets were destroyed, causing a half-million dollars’ worth of damage.

It is said that the fire was started by a disgruntled lobsterman from China who was angry about how the local police had handled the theft of his lobsters by some locally stationed soldiers.

The town was quick to recover. The first bank to be rebuilt was Freeman’s National Bank, which later became the first home of Kennebec Savings Bank.

Left: An engraving of the National Asylum for Disabled Volunteer Soldiers, Eastern Branch of Togus, as it appeared in The Maine Farmer, August 1870.

Opposite: The Commercial Street railroad station is the location of this photograph of the Maine National Guard leaving for the SpanishAmerican War in 1898. Photo Credit: Kennebec Historical Society, photograph gift of Mr. & Mrs. Raymond Leclair.

16

17

History of Maine Banking Portland Bank, chartered in 1799, was Maine’s first bank.

Until the early 1800s though, much trade was conducted through bartering, and the Spanish silver dollar was the principle medium of exchange. Deposits and checks were practically unknown.

Then, Maine businessmen began to see the advantage of bank notes, particularly when it came to real estate speculation.

Bank notes provided them with quick access to capital to invest in the growing demand for transportation and residential and commercial infrastructure.

Exchange Street, Portland, 1845. Collections of Maine Historical Society.

Merchants National Bank of Portland bank note, 1885. National Museum of American History.

18

In the early days of banking, it was not unusual for banks to be established by a single family in their home or by small associations. Banking was investor driven versus depositor driven and was often based on large real estate ventures such as land holdings and railroads. Thus, loans were often made to stockholders before capital had been paid in. Problems with loans not being paid back were common, and banking regulations were almost nonexistent.

Mutual Savings Banks

T

he era of 1819 to 1860 was considered the beginning of the

From 1860 to 1873, a rapid growth in banking created many

savings bank movement in Maine.

opportunities and many problems. Lawmakers and bankers alike

The idea of a savings bank (or friendly society) was first developed by the

were pioneers with little to guide them.

Swiss in the late 1700s. James Savage is one of those credited with

By the mid 1800s, the general population began earning enough to

introducing the concept in the U.S. He got the idea from plans for a

save money, and high interest rates—the average being 5 percent in

London savings bank that were hanging over a fireplace in Gardiner, Maine.

1866—encouraged them to deposit that money in savings banks.

Mutual (mutually beneficial) savings banks began primarily for wage earners and seamen. As the fishing industry began to grow, so did the need for seamen to find a secure place to hold their earnings. Savings

In 1859, Maine savings banks reached $1 million in deposits. By 1870, that figure had reached nearly $16 million. The check became the most common form of payment among the business community by 1865.

banks also appealed to women, in particular, after the Women’s Act of

Between 1873 and 1875, many banks failed. Failed investments in

1848 enabled women to enter into their own contracts, collect rent and

American and European railroads, compounded by failed oil and mining

directly receive inheritance.

speculation in the western states, caused a depression and widespread

The first savings bank was established in Maine in 1819. A total of 25 were incorporated in the state between 1820 and 1860.

In the beginning, commercial banks and savings banks were separate institutions because federal law prohibited commercial banks from

business panic.

Recovery began in 1878. Construction began to regain momentum and the value of building permits increased two and a half times between 1878 and 1883.

accepting savings deposits. In 1860, the creation of the State Banking

Mutual savings banks have gained the confidence of Maine customers

System, later replaced by the National Banking System, made it possible

and have evolved into one of the oldest and most important depositories

for banks to offer both savings and loans under one roof.

for people’s savings.

19

Excerpts from Governor Chamberlain’s 1870 Address to the Maine Legislature

“T

he times are different, our duties new … The liabilities which one way or another, grew out of the war, have laid a heavy burden on us …

The report of the Examiner of Banks and Insurance Companies will suggest matters of unusual importance. It will be seen that our older banks, under State charter, are nearly extinct. The policy of the Government is hostile, and we shall probably have to abandon the system …”

“There are now 37 savings banks in Maine, several having been recently chartered in what we might call our country towns; the chief apprehension in regard to which is, that they may not be able to afford suitable security against robbery. The deposits for the past year amount to $10,839,955, by about 40,000 depositors; making an average of something over $250 each.”

“An interesting comparison is shown by the fact that the amount thus laid in store for honest and hard-earned gains is already more than a million and a quarter larger than the aggregate capital of all our banks of issue, State and National, and nearly two and three-quarter millions larger than the whole of our bonded public debt.”

“It is urged by some that a direct tax should be laid on savings banks. It is a sound principle that property should share as equally as possible the public burden; and it seems, at first sight, that savings banks should no more be exceptions to the rule than any other banks. But it will be seen upon reflection that the spirit and intent of deposits in savings banks differ entirely from the object and operation of deposits in other banks; and it is a grave question whether this difference is not of such a nature and result as to make the savings banks a positive benefit to the State, which might even entitle them to special grace, practically amounting to a bounty, or premium, if you please.”

“These banks are the special depositories of the poor; treasuries of pittances which could in no other way be so well guarded and made profitable. If not kept here many of them would not be kept at all. Besides the actual saving of earnings, and the positive addition to wealth thence accruing–itself an object worthy of your thoughtful care–there are incidental and even more valuable advantages.”

Left: A portrait of Governor Joshua Chamberlain hangs in the office of the president & CEO. The original painting was done by Maine artist Ken Hendricksen, and the Bank’s print is one of 100 signed by U.S. Senator for Maine Angus King when he was governor.

20

“The moment he has his money in the bank, the humblest feels a bracing up of his self-respect and whole moral force. From that moment springs an incentive to industry, frugality, temperance, enterprise; to all, in fact, which constitutes good citizenship, and advances the character and condition of men. Anything, therefore, which tends to discourage deposits in savings banks should be scrupulously avoided.”

“Indeed the mere fact itself of publishing Savings Banks deposits would intimidate and dishearten many whose very struggle and merit it is to keep this pittance from the willful and wasteful hands which would at the same time destroy it and themselves. By the very confidential relations of these banks many a poor woman is helped in her heroic struggle to bear her unequal burden. Therefore it seems to me better even to suffer such evils as we do, than in the attempt to correct them subvert a far greater good .”

“What this State needs is capital–money in motion, whether gold or currency.

Our material is stagnant, our industry crippled, our enterprise staggered for want of money, which is power. What makes the sinews of war, makes also the sinews of peace. Maine strikes me as quite different in her circumstances from the other New England states, with their denser population, developed arts and industries, their centralization of forces and accumulation of capital. She reminds me more of the Western States in her condition and needs–a virgin soil, underdeveloped powers, vast forests, and vigorous men, but no money.”

“Like them, she is trying to build railroads, invite immigration and develop her resources, and perhaps is not so much in love with a high tariff as some of her more cultivated sisters. The elements and powers of nature, and the energy and enterprise of men in order to be turned to account for the great uses of civilization, must wait on capital. Unfortunately we cannot hold our own; we can keep neither our men nor our money home. Higher rates of interest for the one, and quicker and larger returns for the other, win the game. The result is a double drain which keeps all our channels low.”

“This evil must be remedied, or Maine will have to wait a great while for her coronation. What can be done it is not easy to say specifically. We must look to the National Government to strike off some of our fetters and lighten some of our burdens. To me it seems unwise to cramp our energies with duties and taxes in trying to do everything in one day.”

“I have no great pride against letting somebody else help pay the cost of the war…”

“If we can do anything that will make labor, skill, talent, and capital remunerative, that let us do. People will come and will stay; money will be kept and brought, if we can manage to make it pay. What we can do for money does not readily appear. But we can look over the situation.” “ As I have said higher rates of interest abroad lure our money away. Money will seek the highest level as sure as water. Argument and entreaty will not change the course of this inexorable law. Capitalists are reluctant. Some scruple to receive an illegal rate and so refuse. Some stipulating for these rates, knowing they can only trust the honor of the borrower for the continuance, want a better security. But mortgages of real estate, which is about all we have, carry a long right of redemption, and the lender is liable to be kept three years out of the money at merely the low legal rate. The result is he will not accept even the mortgage, but demands an outright deed, and then the borrower must trust the honor of the lender, which in turn may not be very valuable security.”

“Two things would undoubtedly tend to make money more plenty.

(1) To perfect and make practicable our free banking law. (2) To legalize higher rates of interest. Of course, the suggestion of evils growing out of the latter proposal at once arises. But it may be that the example of the General Government which compelled us to suspend specie payments, may also compel us for a time to recognize a rate of interest corresponding with this general practice and sanction.”

21

Kennebec Savings Bank is Founded Kennebec Savings Bank was incorporated March 7, 1870, by an act signed into law by Governor Joshua Chamberlain

T

he Bank was organized on March 19, 1870 and opened for business on the first of April of that year within Freeman’s National Bank at 192 Water Street.

At this point in history, Ulysses S. Grant was president of the United States. Maine was still immersed in the first depression that followed the Civil War. Banking in the U.S. was undergoing dramatic changes. After the Civil War ended, there was a renewed interest in national banks, which eventually led to the establishment of the country’s first uniform national currency.

As transportation made Maine more accessible, more and more people began to travel to the state for summer vacation. Spruce chewing gum, a Maine product that would later be acquired by the Sen-Sen Chicklet Company, was also introduced in this time period.

Left: Circus days of 1896 as the Faugh Paugh and Seller Bros. Circus parades its show along Water Street and up Bridge Street.

22

1870

1880

1890

1900

1910

1920

1930

1940

FIRST DAY DEPOSITS The first cashier (which today would be considered the chief executive officer) of Kennebec Savings Bank was Harlow Spaulding. Total deposits on the first day were $410 among three accounts. Total assets by the end of the year were $84,571.

Kennebec Savings Bank shared its first location at 192 Water Street with Freeman’s National Bank. When Freeman’s National Bank closed in 1884, Kennebec Savings Bank moved to a new location at 237 Water Street.

In 1884, Freeman National Bank’s charter expired. The bank closed, its fixtures were sold to the new Augusta National Bank at 237 Water Street, and Kennebec Savings Bank moved to this location. Augusta National Bank was liquidated in 1902, but Kennebec Savings Banks remained.

1950

1960

1970

1980

1990

2000

2010

2020

23

Governor Joshua Chamberlain approved and signed into law an act to incorporate Kennebec Savings Bank on March 7, 1870 Section I Be it enacted by the Senate and House of Representatives in Legislature, assembled, as follows: Corporators: Russell Eaton, W.F. Hallett, O.C. Whitehouse, J.W. Patterson, Joseph Baker, A.B. Farwell, L.W. Lithgow, John Dorr, Orrin Williamson, William H. Libby, Oliver Gould, Deane Pray, Thomas Little, J.L. Adams, G.C. Vose, Henry Boynton, Edward F. Wyman, Samuel W. Lane, W.P. Whitehouse, George E. Weeks, Henry S. Osgood, their associates, successors, and assigns are hereby constituted a body politic and corporate by the name of the Kennebec Savings Bank, and by the name may prosecute and defend suits at law and in equity may have and use a common seal, and establish such by-laws, rules and regulations as are necessary for the convenient management of their concerns and not repugnant to the laws of the state. Said corporation shall have its place of business in Augusta, in the county of Kennebec, and shall be subject to all the duties and liabilities and enjoy all the rights and privileges conferred upon similar institutions by the laws of this state.

Section II Said corporation is hereby authorized to receive deposits of money and issue certification therefor, and such deposits of money shall be used as they shall deem for the best interest and benefit of said corporation, and may be withdrawn at such reasonable times and in such manner as said corporation shall appoint.

Section III Russell Eaton, named herein, is authorized to call the first meeting of said corporation by giving notice of the time and place therefor in any newspaper published in Augusta seven days before the time appointed for said meeting.

Section IV The annual meeting shall be holded in the month of May, and at that meeting and all other meetings it shall require seven persons at least to constitute a quorum for the transaction of business, and meetings may be called at any other times and in such manner as the corporation may provide.

Section V This act shall take effect when approved.

24

AN UNUSUAL BYLAW In the early years, Kennebec Savings Bank’s bylaws addressed the oversight of an official bank firearm. This was long before “911” service, security cameras, or motion detectors, and when banks were responsible for the handling of their own protection. Bank robberies were also far more common during this era than they are today.

According to early bylaws for many banks, it was common for the treasurer to be responsible for possessing the firearm. This was the case at Kennebec Savings Bank until the mid 90s when it was handed down to then Vice President and Loan Officer Andrew Silsby, who later became treasurer. Tom Trafton, a residential mortgage lender, held the bullets. Therefore, the use of the firearm required dual control—which made everyone feel better! The good news is that there are no known incidents in the Bank’s history where the firearm was actually used.

The firearm has a well-worn leather holster which would have been mounted under a desk. It even has visible marks where an employee sitting at the desk would have leaned against it day after day.

Kennebec Savings Bank still has its official firearm— a Smith & Wesson .38 double-action revolver—a model which was introduced in 1880 and manufactured until 1911. The Bank consulted a Smith & Wesson historian,

Today, the firearm and its leather holster are safely stored in the Bank’s archives … without any bullets.

who confirmed that the Bank’s model was shipped from their factory in 1902. This is perhaps the second gun owned by the Bank since there would have been an older model used when the Bank first opened in 1870.

25

LOOKING BACK IN THE PAGES OF HISTORY The archives at Kennebec Savings Bank are home to the Bank’s oldest records, including the first bylaws developed by the Bank’s founders in 1870.

26

27

World War II Augusta Continues to Grow

28

1870

1880

1890

1900

1910

1920

1930

1940

I

n 1913, the new Maine Central Railroad Station opened and, the following year, a double-track railroad bridge was constructed across the Kennebec River.

In 1918, Kennebec Savings Bank moved to 292 Water Street (which later became 288 Water Street), the southwest corner of Market Square at Granite Block, and remained there until 1959. At that time there were just two employees. Bank assets were just under $2.5 million.

1920 marked the year the Blaine Mansion became the official residence of Maine’s governors.

The Edward’s Manufacturing Company acquired the Augusta Sprague Mill in 1882.

When this photograph was taken, Edward’s had added three buildings and 95,000 spindles, and had recruited workers from Quebec, thus founding Augusta’s modern Franco-American community.

streetcars in 1932 and, in 1934, construction began on the Augusta Airport. Also in 1934, a typhoid fever epidemic threatened the city.

In 1921, Guy P. Gannett, with the help of his father William H. Gannett, restored Fort Western and presented it to the city as a memorial to his

In 1937, the Augusta Players were organized. The Players were very

mother, Sadie Hill Gannett.

much a social club, with meetings that involved productions of one-act

Other historic events over the next 30 years included the revival of

produced shows during World War II, and often had to reschedule

shipbuilding in Maine, brought on by the start of World War II, and

shows to accommodate it. A week before one show, the male lead

the construction of a new 10,000-gallon reservoir in 1930.

enlisted in the Navy and was called up. A female took over the role.

The City voted to spend $50,000 to complete Cony High School,

By 1940, Augusta’s population had grown to more than 19,000 people.

and it was dedicated in November 1930. Motorbuses replaced electric

Because of the war, the town also experienced a shipbuilding boom from

plays and lively discussion of theater in general. The Augusta Players

1942 to 1945.

Opposite: 1940’s location of Kennebec Savings Bank, next to Capitol Theater, Water Street, Augusta.

1950

1960

1970

1980

In 1945, the City of Augusta joined the world in celebrating the end of World War II.

1990

2000

2010

2020

29

LOOKING BACK TO ADS FROM ANOTHER TIME Kennebec Savings Bank placed advertisements on a very regular basis in local newspapers, which was one of the very few ways to promote products and services during this era. The Bank’s ads promoted everything from convenient hours to the drive-up window to celebrating important milestones.

30

CELEBRATING HISTORY

The Bank celebrated its 50th, 100th and 125th anniversary by placing full-page advertisements in the Kennebec Journal.

31

The Drive-Up Window A New Concept in Banking

I

n 1945, a new entrance was added to the Capitol Theater. The renovations moved the Bank’s front doors, and as a result, the Bank changed its address to 288 Water Street.

The Bank operated with a staff of three until 1954 when Cecile Bouffard was hired.

Ms. Bouffard would go on to become one of the Bank’s longest-serving employees, working in a number of different capacities before her retirement in 1998. A fifth employee was brought on in 1958.

In 1955, the Maine Turnpike was extended to Augusta, and an off-ramp was built on Western Avenue. During this time period, business growth was exploding in all directions from Water Street. In 1958, the Bank purchased property at 150 State Street, the site of the former residence of George W. Macomber. Macomber served as mayor of Augusta from 1886 to 1888. He was also a banker and insurance agent.

Top: The Bank purchased property at 150 State Street to build a new banking facility.

The property was once the residence of former Augusta Mayor George W. Macomber.

Left: Kennebec Savings Bank demolished the former Macomber residence to build a then-modern banking facility.

Opposite: Kennebec Savings Bank’s new “modern” banking facility at 150 State Street, Augusta, in 1959. Bank employee Cecile Bouffard is pictured here at the drive-up window.

32

1870

1880

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

33

34

1870

1880

1890

1900

1910

1920

1930

1940

Kennebec Savings Bank turned the site into a then-modern banking facility that included a relatively new phenomenon—a drive-up window where customers could do their banking from their car. It is believed that Kennebec Savings Bank was the first in the area to add this modern convenience.

Bank assets at the end of 1959 were more than $6.5 million. The only type of deposit accounts being offered remained savings accounts until certificates of deposit (CDs) were introduced in 1969. The Bank began offering checking accounts in 1975.

Opposite, above and left: The new location at 150 State Street offered a convenient drive-up window and plenty of parking. Inside, the building was outfitted with thenmodern furniture and decor.

Right: Kennebec Savings Bank is believed to be the first in the area to offer its customers the convenience of a drive-up window.

1950

1960

1970

1980

1990

2000

2010

2020

35

Locked in the Vault Strongly fortified vaults have long been used to protect a bank’s assets and provide peace of mind to its customers and clients. One auditor learned the hard way that a bank vault is just as good at keeping people in as it is at keeping people out …

The main vault at Kennebec Savings Bank was originally installed as part of the state-of-the-art banking facility constructed in 1959 at the Bank’s State Street location. The vault had a 17,000-pound door, and the walls were made of 18 inches of 5,000-psi concrete and a half inch of plate steel on the interior wall.

Each day at 3 p.m., a bank employee would typically wind the clocks on the vault to prepare for the close of business. The clocks served as timers that prevented the doors from being opened until the start of business the next day. Once those timers were set, no one would be able to open the vault from the outside until the timers ran down.

On one particular afternoon in the mid 1970s, the Bank was host to a team of auditors from MacPage Accounting Firm, who spent the majority of the day going in and out of the vault to gather materials.

At the end of this particular day, then-treasurer Jim Chase set the timers, swung the door shut, turned the lever, and unknowingly locked one of the auditors inside the vault.

As soon as the auditor heard the door shut, she realized the seriousness of what had happened. She felt her way in the dark to the Left: The vault’s door weighed 17,000 pounds and featured a series of clocks serving as timers that prevented the doors from being opened until the clocks wound down.

36

rotary phone and dialed “0” to get the operator. She said, “This is not a joke. I am locked in the vault at Kennebec Savings Bank and I need you to connect me to the Bank.”

A Bank officer answered the call. After she told him what had happened, he asked her to hold for a moment and visited her colleagues that were in one of the conference rooms. They confirmed that—sure enough—they were indeed missing one of their coworkers.

After a few futile attempts to open the door, John Fecteau from the Mosler Safe Company was able to talk to the auditor on the phone.

John recalled that she was very calm as he coached her through the steps necessary to open the door—which included several attempts at throwing a heavy cash drawer to break the inside-door glass and expose the timers. She was then able to override the timers, which allowed the combination on the outside of the door to move.

After she was freed, John remembers her saying, “My first thought was—thank goodness it wasn’t on a Friday night!”

Top right: The auditor was locked in the vault located in the original Bank building which today is still part of the Bank’s location on State Street. The vault was home to customer safe deposit boxes, as well as an area where tellers put their cash drawers.

Right: The vault was removed in 2019 to make room for additional office space. The removal of the 17,000-pound door required the use of a forklift and a large crane due to its weight.

37

Tappan-Viles Mansion Kennebec Savings Bank continues to grow

38

1870

1880

1890

1900

1910

1920

1930

1940

I

n 1984, the Bank purchased the Tappan-Viles Mansion (also known as the Park Circle Building) at 154 State Street. The house had earned its place on the National Register of Historic Places two years earlier. 1985 marked Kennebec

Savings Bank’s first year of profits exceeding $1 million.

In Augusta, the Key Plaza—the city’s tallest building—was constructed on Water Street in 1986 and a second restoration of Fort Western was under way.

In 1988, the Bank began a two-year construction and restoration project to connect the Tappan-Viles Mansion to the existing Bank building, creating the modern banking facility that exists today.

Opposite: The Tappan-Viles Mansion is pictured here at dusk.

Top left: Local artist Paul Plumer created this drawing of Kennebec Savings Bank’s Augusta location prior to major renovations that connected the Tappan-Viles Mansion to the Bank’s facility at 150 State Street. A few changes were ultimately made to the final design, including the use of traditional siding rather than brick for a portion of the facade.

Top right: A photo of the original Bank building before it was connected to the Tappan-Viles Mansion.

Middle and bottom right: The construction and restoration project to connect the Tappan-Viles Mansion to the existing Bank building took two years.

1950

1960

1970

1980

1990

2000

2010

2020

39

Reverend Benjamin Tappan was the first inhabitant of the mansion, which was constructed in 1816.

The History of the Tappan-Viles Mansion The Tappan-Viles Mansion is a vital part of Augusta’s vibrant history.

The mansion was built for its first inhabitant, Reverend Benjamin Tappan, a Harvard graduate with ties to Bowdoin College.

He made such a positive impression during his visit to Augusta’s South Parish Church that parishioners begged him for two years to come back and become their full-time minister. He served during a time of doctrinal dispute, including a well-known conflict regarding square dancing. “Scenes in a Vestry,” published in 1940, recounts this famous trial relating to square-dancing in front of ministers to determine if it was distracting and sacrilegious.

Though Tappan remained firmly rooted in the Augusta community through his role at South Parish Congregational Church, he also actively championed the national abolitionist movement and assumed a more far-reaching role as secretary of the Maine Missionary Society.

a style exemplified by the cupola. While his political involvement transcended Maine borders, Farwell remained dedicated to Augusta.

His wife donated land in front of the house for Monument Park following his death.

For the next inhabitant of the Tappan-Viles Mansion, the address symbolized a fulfilled dream. As a young doctor in Augusta, Dr. Scott W. Hill had aspired to live in the stately home. From 1867 to his death in 1923, his dream was realized. In 1915, he remodeled the structure to reflect the Colonial Revival style of architecture.

During winter months, Hill used a horse-drawn sled to visit patients.

His neighbor, a professional photographer, captured images of Hill embarking on his winter rounds. Dr. Hill was on the front page of the Kennebec Journal, reaching the age of 83 and 55 years as a doctor.

Tappan ended his work when he was thrown from a carriage in 1862.

He died the following year.

After Tappan’s death, Colonel Alanson Farwell acquired the mansion.

As chief clerk in the Navy Department during the Civil War and a member of the local legislature, Farwell made his mark on the building by updating the architecture from Federal to Italianate, 40

Dr. Scott W. Hill lived in the mansion after Tappan’s death. He was a prominent figure in the community, providing in-home care to his patients well into his 80s.

A 1927 calendar featuring a portrait of Blaine S. Viles, painted by artist Charles Relyea in the 1920s, hangs in the halls of the Tappan-Viles Mansion to this day.

Blaine S. Viles purchased the property in 1923 following Hill’s death. A graduate of Bowdoin College and Yale Forestry School, Viles served as the mayor of Augusta from 1915 to 1916 and worked as the state forest commissioner. The Viles family was the last to use the mansion as a residence.

After the Viles family’s ownership, the building was turned into office space. The building became known as the Park Circle Office Building for many years, and its occupants included Senators William Cohen and George Mitchell, the United Way of Kennebec Valley and Viles Timberlands.

In 1986, the mansion was acquired by Kennebec Savings Bank to supplement its existing property at 150 State Street. Construction soon began to attach the mansion to the 1959 modern bank property.

More than 200 years after its original construction, the mansion now serves as the headquarters of Kennebec Savings Bank. The bank president’s office is in what used to be the front parlor. Like the mansion’s former inhabitants, the Kennebec Savings Bank team prides itself on being part of Augusta’s history and giving back to the community. The mansion was refurbished once again in 2019, with many efforts made to preserve and showcase its storied history for generations to come.

Blaine S. Viles acquired the property in 1923. The Viles family was the last family to own the property before it was repurposed for professional office space.

It has been long rumored that some remnants of the distant past may still remain. Over the years, there have been several former Bank employees that reported seeing a ghostly female figure in the stairwell of the building…

It is also important to note that the mansion was constructed in 1816 during a phenomenon known as the “Year Without a Summer.” Ash from the eruption of Mt. Tambura on Sumbawa Island, Indonesia, was blocking the sunlight in New England, causing freezing temperatures and resulting in major food shortages. Six inches of snow fell in June and every month of the year had a hard frost. Temperatures dropped to as low as 40 degrees in July and August as far south as Connecticut.

Despite this extreme weather, the construction of the mansion was completed and the Tappan family moved in on November 29, 1816.

41

The first branch office was opened in Winthrop with five employees in 1990.

The Bank acquired property adjacent to the Tappan-Viles Mansion, which was the former site of a Mobil gas and service station.

Acquisitions and mergers In 1990, Kennebec Savings Bank went online with its own in-house

Before being acquired by Kennebec Savings Bank, the 156 State Street

computer system, enabling the Bank to create its own statements rather

property was owned by local painter Joshua Heath in the mid 1800s. That

than relying on an outside provider.

property was then purchased by an Augusta photographer, John Hendee,

As Augusta and the population in the surrounding towns grew, so did Kennebec Savings Bank. That same year, the Bank opened its first branch office at 20 Main Street in Winthrop—a property the Bank acquired from another bank, which vacated it.

corner of Western Avenue. The property had previously been a Mobil gas and service station.

1870

1880

there for 75 years until 1940 when Mobil Oil purchased the property, and opened a Socony gas station.

The 158 State Street property had been the Central House, an old tavern

In 1994, the Bank purchased property at 156 and 158 State Street at the

42

who lived there with his family. The Warren Hendee family then lived

that was also a former residence. It was purchased in 1892 by Governor Edwin C. Burleigh, the 42nd Governor of Maine, and was called Park House at the time. Later, the tavern was relocated to the corner of Grove and Capitol Streets.

1890

1900

1910

1920

1930

1940

Growth in 1995 also brought about the merger of Kennebec Savings Bank and Waterville Savings and Loan Association, which had been serving northern Kennebec County since 1887. Its president and CEO, Dennis W. Matthews, became an executive vice president at Kennebec Savings Bank following the merger.

At the time of the merger, Kennebec Savings Bank’s assets were more than $190 million. Waterville Savings and Loan Association’s assets were close to $35 million.

In 1995, the Bank added a construction loan and credit card program, as well as an enhanced checking account service, which resulted in 1,000 new checking accounts that year. A third automated teller machine was installed at the Waterville

INTRODUCTION OF THE ATM

branch, and overall ATM usage increased 70 percent over the prior year.

The Bank installed the first automated teller machine (ATM) service in 1992, providing customers with access to their funds 24 hours a day, seven days a week.

Left: Employees from Waterville Savings and Loan and Kennebec Savings Bank opened the Waterville location in 1995.

Right: At the time of the merger, Waterville Savings and Loan’s assets totaled nearly $35 million.

1950

1960

1970

1980

1990

2000

2010

2020

43

Kennebec Savings Turns 15

Kennebec Savings Bank celebrated its 125th anniversary in 1995

A 125th anniversary logo was created and used on a number of materials, including as a seal on documents and communications.

T

he Bank published a calendar and booklet highlighting the history of Kennebec Savings Bank and the City of Augusta. The staff and Board of Directors held a celebratory event, complete with a cake featuring the Bank’s 125th anniversary

logo. At the Winthrop branch, employees dressed in 1870s period costumes borrowed

Kennebec Savings Bank published a history booklet chronicling the Bank’s history from 1870 to 1995.

44

1870

1880

1890

from the Theater at Monmouth.

1900

1910

1920

1930

1940

Above: Kennebec Savings Bank published a series of ads commemorating the 125th anniversary milestone in local newspapers throughout the year.

Opposite, left, and top right: Employees at the Winthrop location dressed in 1870’s period attire in recognition of the Bank’s 125th anniversary in 1995.

1950

1960

1970

1980

1990

2000

2010

2020

45

Growth, Achievement and the

Turn of the Century

46

1870

1880

1890

1900

1910

1920

1930

1940

Our Bank

I

n 1996, Kennebec Savings Bank closed more than $48 million in

Landscaping of the Bank’s lot at the Memorial Circle in Augusta

residential mortgage loans, an increase of $15 million over 1995

enhanced the appearance of the neighborhood with much-needed green

totals. These amounts represented historically high levels for the

space and colorful plantings. In recognition of this effort, the Bank

Bank. Kennebec Savings Bank also experienced growth in its asset base and ended the year at $253 million, making it one of the larger and

received the 1996 Beautification Award from the Augusta Tree Board.

best-capitalized mutual community banks in Maine.

An expansion of the Bank’s branch and ATM network in 1997

Also that year, the Bank introduced the Kennebec Savings Bank

Kennebec Savings Bank opened its first off-site ATM at the corner of

MasterMoney™ debit card. This was the first card customers could use

Riverside Drive and North Belfast Avenue in Augusta. The Bank also

to both make ATM withdrawals and purchase items using checking

opened a new and expanded Waterville branch located at the site of the

account funds.

Bank’s original Waterville office on upper Main Street. In conjunction

provided even more accessibility, convenience and service to customers.

with the grand opening, the Bank provided a major contribution to the Waterville Regional Arts and Community Center.

Opposite: The Bank opened its first off-site ATM at the corner of Riverside Drive and North Belfast Avenue in Augusta in 1997.

Left: The Bank was recognized in 1996 with a Beautification Award from the Augusta Tree Board for its work in landscaping its lot at the Memorial Circle in Augusta. President Bill Pelletier, Treasurer Jim Chase, and Executive Vice President Mark Johnston are pictured in the photo.

1950

1960

1970

1980

1990

2000

2010

2020

47

Left: The Waterville location held a grand opening following a major expansion project in 1996.

Right: Children who opened a KSB Kids Club Savings Account were given a commemorative mint-scented piggy bank.

The expansion had been kicked off the year prior by the Waterville Fire

Two new deposit products were introduced in 1998. The first was a

Department, which used part of the site excavation to conduct practice

money market savings account, a short-term, higher yielding account

fire-fighting sessions. The Bank was pleased to be able to provide this

that allowed customers easy access to their funds. The second, the KSB

important opportunity for our local firefighters to refine and enhance

Kids Club Savings Account, was a low-balance account designed to

their skills.

encourage the development of good savings habits in children. It came

By 1997, the Bank was the leading real estate lender in Kennebec County, closing more than $49 million in residential mortgages and $10 million in commercial real estate loans. Thanks to the introduction

with a specially designed passbook, a commemorative piggy bank, an above-market interest rate, and—the best part—a tour of the Bank vault, which the kids just loved.

of the Premier Checking banking product, which provided free checking, debit cards and checks, it also opened more than 1,000 checking accounts that year.

48

1870

1880

1890

1900

1910

1920

1930

1940

In 1996, the Bank provided the Waterville Fire Department with the opportunity to conduct a training session on the site of a building scheduled to be razed.

1950

1960

1970

1980

For a number of years, Kennebec Savings Bank employees participated in a clean-up day for Camp KV, a children’s day camp located on 70 acres of land on Maranacook Lake in Readfield.

1990

2000

2010

2020

49

To commemorate the turn of the century, the New Century CD was introduced in 1999. It generated approximately $18 million in deposits.

At the same time, the Bank’s IT and Operations departments were in full gear ensuring all systems were Y2K ready.

A satellite office opened in Granite Hill Estates retirement community in 2000. This full-service branch made banking services much easier and much more accessible to the residents of that facility. The Investment and Trust Services Department was also established in that year with the hiring of Amos Byron as the Bank’s trust officer.

By the end of the first year of the 21st century, the Bank had $352 million in assets and its earnings exceeded $3.8 million. It closed 550 residential mortgage loans for more than $40 million and more than 300 home equity loans and lines of credit exceeding $6 million.

Left: Kennebec Savings Bank held an event at Granite Hill Estates when the Bank opened a satellite location at the retirement community in 2000.

Right: Amos Byron served as the Bank’s first trust officer when the Investment and Trust Services Department was established in 2000.

50

1870

1880

1890

1900

1910

1920

1930

1940

Y2K and Kennebec Savings Bank In the time leading up to the year 2000, concern was building regarding a potentially significant problem for the world’s computing infrastructure. Commonly referred to as the Y2K problem, many experts believed that a class of computer problems related to the formatting and storage of calendar dates would arise when the world entered the new millennium. Most computer calendars represented four-digit years with only the final two digits, which had the potential to cause considerable issues in the year 2000 when the first two digits would change.

Understandably, banks and banking regulators were also concerned about the problem—and that included Kennebec Savings Bank.

Although it was unclear if the Bank’s systems would experience issues, it was of the utmost importance that financial systems be tested, and preparations made well in advance of January 1, 2000, to ensure everything remained operational.

1950

Treasurer Jim Chase took the lead on ensuring the Bank was prepared for the Y2K problem.

Room”—a television was used to watch the ball-drop celebration and there were plenty of snacks to pass the time and ease their nerves.

Treasurer Jim Chase led the Bank’s testing and preparation efforts.

He was asked to speak to civic organizations and media outlets to share his expertise on what to expect and how to be prepared.

Then President Mark Johnston and Vice President and Loan Officer Andrew Silsby realized the situation provided the perfect opportunity to play a joke on Jim. At the stroke of midnight, Mark and Andrew simultaneously turned off the television and lights. Unfortunately, Jim was on to them due to a sliver of light coming in from under the door in the hallway—but rumor has it there were a few others that were duped and screams were heard.

On New Year’s Eve 1999, several key employees were required to be on hand when the clock struck midnight just in case there were issues that needed to be resolved. The team created their very own “Situation

Like many other businesses and systems across the world, the Bank passed into the year 2000 with no incident—but not without a few new memories!

1960

1970

1980

1990

2000

2010

2020

51

Our People By 1998, Kennebec Savings Bank had grown to a team of 59 employees with 17 having 10 or more years of service with the Bank.

Right: Cecile Bouffard was one of the Bank’s longest-serving employees, retiring after 43½ years of service.

Kennebec Savings Bank also said goodbye to its longest tenured employee at the time, Assistant Vice President and Personnel Officer Cecile Bouffard. She retired after 43½ years of service with the Bank.

The following year, Bill Pelletier retired as president but remained on the board. Executive Vice President and Senior Loan Officer Mark Johnston was promoted to president in 1999.

In 1999, the Bank celebrated its first-ever annual employee appreciation day with special recognition gifts and refreshments throughout the day.

It also started a tuition reimbursement program that allows employees to continue on to their college education. That year, five employees worked toward advanced degrees.

Left: Bill Pelletier retired as president on January 1, 1999. During his presidency, the Bank opened the Winthrop and Waterville branches. Bill was instrumental in establishing the Kennebec Savings Bank Foundation, which is still in existence today and is used to support many of the Bank’s community giving initiatives.

52

1870

1880

1890

1900

1910

1920

1930

1940

WEBSITE Kennebec Savings Bank introduced its first website in 1999. The site provided customers with a wide range of information, including a full list of products and services, branch location details, and a special message from the president. Today, nearly every product and service offered by the Bank can be accessed using the Bank’s robust website!

Executive Vice President and Loan Officer Mark Johnston was named president in 1999 following Bill Pelletier’s retirement.

1950

1960

1970

1980

1990

2000

2010

2020

53

Kennebec Savings Bank won the prize for Best Commercial Entry at the May parade celebrating Augusta’s bicentennial birthday in 1997.

Our Community 1997 marked Augusta’s bicentennial birthday celebration, and the Kennebec Savings Bank float won Best Commercial Entry in the May parade. Bank team members also provided financial support that helped bring the Boston Pops Esplanade Orchestra back to Maine for the first time in 17 years during this important milestone year for Augusta. More than 6,000 residents enjoyed the December 9 concert.

In 1999, after 162 years, the Edwards Dam was removed to help restore the fish population in the Kennebec River.

Kennebec Savings Bank provided financial support to host the Boston Pops Esplanade Orchestra to help the community celebrate Augusta’s 200th birthday.

54

1870

1880

1890

1900

1910

1920

1930

1940

The Bank was involved with a number of historic tours, including the Historical Walking Tour of Augusta. The artwork on the brochure on the left was done by local artist David Silsby—the father of Bank President & CEO Andrew Silsby.

Kennebec Savings Bank provided a lead gift to help the Kennebec Valley Humane Society renovate its facility.

Giving Back Kennebec Savings Bank supported numerous organizations and events,

The Bank was named a finalist for a Governor’s Award for Service and

increasing its community involvement every year. Some of these projects

Volunteerism in 1998. That year, it was the lead sponsor of the Capital

included the Augusta Historic Neighborhood Tour, the Trek Across Maine,

Area Soccer Club’s brand-new complex on Piggery Road.

the Windsor Fair, the Kennebec Valley Garden Club, the Kennebec Valley and Winthrop YMCAs and the Capital City Hoop Classic.

Kennebec Savings Bank’s grant to subsidize the Alfond Youth Center’s

It was also involved in the Kennebec Historic House Tour benefitting

contributions from area businesses and individuals.

the Kennebec Historical Society, the Kennebec Land Trust’s initiative to acquire Norris Island on Androscoggin Lake and the Kennebec Valley

1950

2000 Annual Appeal Kick-Off Dinner helped raise $60,000 in

Also in 2000, the Kennebec Valley Humane Society celebrated the grand

Humane Society’s Homeward Bound capital campaign.

opening of its new home on Western Avenue, built with assistance from

In 1997, the Bank participated in Augusta Board of Trade’s $1 million

expanded cage area and a new animal control area. That year, it handled

Business Development Fund, a revolving loan fund that supported the

more than 3,000 dogs and cats from 23 neighboring communities,

continued growth and development of the capital city.

helping to find new homes for stray, abandoned and misplaced pets.

1960

1970

1980

a grant from Kennebec Savings Bank. The new facility featured a modern,

1990

2000

2010

2020

55

The Mortgage Boom and

Advances in Technology Our Bank

I

n 2001, the Bank launched an online mortgage center with 24-hour access to rates, mortgage calculators and loan applications. It also began offering educational events for first-time homebuyers.

2002 marked the launch of the KSB Anytime internet banking platform. In less than six months, more than 1,000 customers had logged on to the new, real time and online service.

The Bank’s growth was enhanced by the lowest prime lending rate since May 1959 and the lowest mortgage rates in 40 years. Customers took advantage in record numbers, resulting in more than 1,000 new mortgage loans. The total number of households using the Bank for services was approximately 14,000.

Kennebec Savings Bank completed a major website redesign in 2005, which provided customers with more information and a fresh new look.

The Investment and Trust Services Department also hosted its First Annual Autumn Social, and more than 200 people attended.

In 2003, the prime lending rate dipped even lower. The Bank streamlined its lending process resulting in 1,158 new mortgage accounts and making customers’ dreams of owning a home a reality.

56

1870

1880

1890

1900

1910

1920

1930

1940

Kennebec Savings Bank upgraded its Bank by Phone system in 2004, providing customers with the ability to obtain even more information about their accounts through the service.

The Investment and Trust Services Department also experienced significant growth that year, with investments in the Bank’s care rising to more than $18 million. In total,

ATMS UPGRADED

Kennebec Savings Bank closed out the year with almost $472 million in assets, making it one of the strongest banks in Maine.

In 2005, Kennebec Savings Bank became one of the first institutions in the country to offer its customers the bank-wide ability to deposit cash and checks without envelopes via ATM.

The Bank upgraded its telephone banking system in 2004, allowing bank-by-phone customers to obtain more information than ever on their accounts. That same year, Kennebec Savings Bank was named the Best Place to Do Banking in the Greater Augusta Area in a yearly survey conducted by Market Surveys.

2005 was another highly successful year for Kennebec Savings Bank. The Bank continued to focus on technology upgrades to provide its customers with the easiest, most efficient and worry-free banking experience possible. First, it upgraded all its ATMs and became

1950

1960

1970

1980

1990

2000

2010

2020

57

financial institutions in the entire country had ever achieved a five-plus star designation for that long of a consecutive time period of that length.

2006 marked the opening of the first-ever Manchester electronic banking center, and a major construction project in Waterville expanded the branch by 12,000 square feet. The third floor of the Augusta branch was also redeveloped to house the growing Investment and Trust Services Department. At 9 Western Avenue, next door to the Augusta branch, the Capitol City Motel was demolished to make way for green space and more parking.

The Bank acquired and demolished property adjacent to the Waterville location in 2007 to create more green space around the branch.

Continuing with its leading edge approach when it comes to technology, the Bank converted to high-speed fiber optics and became one of the first

one of the first financial institutions in the country to offer its customers

in Maine to implement two-factor authentication for internet banking

the bank-wide ability to deposit cash and checks without envelopes via

security, which used a unique matrix to confirm the customer’s identity.

ATM. Internet banking and bill payment services were dramatically improved, nearly doubling the number of customers using the

E F G H A B C D 5 1 9 7 2 7 2 1 1 4 5 1 7 4 2 7 6 2 2 9 8 6 1 7 3 4 6 8 0 1 3 9 4 7 4 7 7 7 0 8 9 1 5 7 4

technology as a result. A new website with increased capabilities, more information about the Bank, and a fresh look was also unveiled.

50 64 Ca rd Co de :

Also in 2005, Kennebec Savings Bank received a superior 5-star rating

This matrix card was used to implement two-factor authentication for internet banking, which provided customers with additional security.

by nationally recognized financial analysis firm BauerFinancial, Inc. for maintaining a superior rating for the past 64 consecutive quarters (16 years). According to BauerFinancial, Inc., only 7.6 percent of all

58

1870

1880

1890

1900

Opposite: The Waterville branch is located on Main Street and features large green spaces and flowerbeds.

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

59

2006 was also a big year for awards. Kennebec Savings Bank took home two national awards, one from the Independent Community Bankers of America and another from the American Lung Association. It earned local recognition from the Town of Manchester, the United Way of Kennebec Valley and the United Way of Mid-Maine.

Real-time transaction updating was introduced in 2007, adding another layer of benefit for Kennebec Savings Bank customers. The Bank also acquired new property on Waterville’s Main Street to create more green space around the branch for all to enjoy.

The Bank earned three more awards, as well. It received a Bike Friendly Business Award from the Bicycle Coalition of Maine and a Best Places to Work in Maine award, in addition to being named Business of the Year by the Mid-Maine Chamber of Commerce.

In 2008, the recession hit. In a year filled with uncertainty, Kennebec Savings Bank served as a safe haven for its customers. While other banks were forced to close or merge, it was business as usual. The Bank even saw growth despite the worst economic downturn in many years, attracting 2,300 new customers. Through a very successful ad campaign, the Bank was seen as a safe haven for people’s money during this time of great uncertainty.

Left: Kennebec Savings Bank opened a second KSB Anytime Electronic Banking Center in the lobby of the Augusta office in 2008.

60

1870

1880

1890

1900

1910

1920

1930

1940

Though mortgage activity was low in Maine and nationally, Kennebec Savings Bank still recorded $83 million in new mortgage business, representing 20 percent of all mortgages granted in Kennebec County that year.

The Bank also expanded, opening a second KSB Anytime 24-hour Electronic Banking Center in the lobby of the Augusta office.

Technological advancements continued to exceed the pace of customers’ demands. Nearly a million transactions were processed through ATMs, bank by phone, and internet banking—a considerable increase over past years.

The Bank began providing services in a new town when it opened an electronic banking center in Manchester in 2006.

Kennebec Savings Bank expanded its real estate holdings, as well. The Bank

Another big development that year was the beginning of Kennebec

finalized the purchase of a new property on Augusta’s Civic Center Drive

Wealth Management. The new division was created to enhance the

in addition to properties in Waterville including a few parcels that were

offerings of the eight-year-old Investment and Trust Services Department.

converted into more lovely green spaces for the community.

Despite very unfavorable market conditions, it added $7.7 million in new money and 20 new accounts to its wealth management area in 2008.

Kennebec Wealth Management Securities offered through LPL Financial Member FINRA & SIPC

1950

1960

1970

1980

Mainebiz ranked Kennebec Savings Bank 11th out of 31 banks statewide in terms of asset size, and the Bank continued to maintain its 5-star rating from BauerFinancial, Inc., a distinction it now had held for 18 consecutive years and one only six percent of institutions nationwide could claim.

1990

2000

2010

2020

61

62

1870

1880

1890

1900

1910

1920

1930

1940

A Safe Haven for Your Money If you’ve been watching the news over the past several days, you are probably well aware of the turmoil in the financial services industry which is causing depositor concerns across the country, including right here in Maine.

The Bank had $407 million in deposits at the end of 2008. By the end of 2009, that figure had grown to $462 million, representing a growth rate of almost 13.5 percent, double from the previous year.

In fact, I’ve had a few calls from customers who are concerned about the safety of their deposits here at Kennebec Savings Bank. I tell them that there’s really no safer place to keep their money. We are financially strong, and very well capitalized! And, for the past 18 years (74 consecutive quarters), we have received Bauer Financial’s five-star rating as a superior financial institution, a distinction held by only 5.7% of banks in the country! (www.bauerfinancial.com)

Kennebec Savings Bank also launched its Safe, Secure and Stable promotion in 2009, resulting in a record number of new checking and savings accounts being opened. By year’s end, the Bank had 2,061 new customers and opened more than 6,700 new accounts.

Our customers should have no concerns about funds that they have on deposit at KSB. They should, however, have concerns about any uninsured deposits that they have at other financial institutions, particularly ones with whom they are not well acquainted. It is certainly no time to be sending money to banks they’ve never heard of just because they are paying a high rate of interest.

The Bank helped customers purchase or build 974 new homes that year, representing more than $92 million—and it proved to be one of the best mortgage lenders out there. According to the Mortgage Bankers Association’s National Delinquency Survey, the national delinquency rate for mortgage loans on one- to four-unit residential properties in

We are, in fact, a safe haven for your money. If you’re not a customer, now is a great time to experience the KSB difference.

2009 rose to an adjusted rate of 9.64 percent at the end of the third

Augusta 622-5801 • Waterville 872-5563 • Winthrop 377-5801

quarter. But at Kennebec Savings Bank, the delinquency rate was only

www.kennebecsavings.com

Mark L. Johnston President Kennebec Savings Bank

.82 percent, the result of good underwriting and exceptional collection management by the Kennebec Savings Bank team and a strong customer base committed to home ownership.

THE GREAT RECESSION In response to uncertainty in the midst of the recession of the mid 2000s, the Bank ran an ad campaign aimed at easing depositor concerns.

Opposite: Through teamwork and tenacity, the Gardiner branch was opened in just 52 days in 2009.

1950

1960

1970

1980

1990

2000

2010

2020

63

Our People Kennebec Savings Bank continued to expand its presence in the region, and the team continued to grow. In 2009, teamwork and tenacity got the new Gardiner branch up and running in an incredible 52 days from concept to opening day. The Bank now had 92 employees, including an additional five hired that year to further develop the thriving Kennebec Wealth Management division.

Kennebec Savings Bank started KSB Striders in 2002, a program that encouraged employees to walk their way to better health. In that inaugural year, 50 employees logged more than 5,700 miles on their road to fitness.

Kennebec Savings Bank hired, promoted and relocated current employees to staff the new Gardiner branch. Left to right are Tracy Plourde, Brent Hall, Amanda Spearin, Kristi Lamoreau, Carol Bockman and Patty Coan.

In 2003, two long-time Bank employees retired: Vice President & Loan Officer Thomas A. Trafton with more than 22 years of lending at the Bank, and Assistant Vice President & Accounting/Operations Manager

Andrew Silsby was promoted from senior vice president and treasurer

Elaine E. Wardwell with 26 years of service.

to executive vice president and treasurer in 2008, while Bank President Mark Johnson received the town of Manchester’s Spirit of America

Ray Pepin retired from the Board in 2003. He had previously retired

award. He was also named to the Independent Community Bankers

as Bank president in 1993. Longtime Kennebec Savings Bank trustee

Association’s national board of directors.

Donald “Peanut” Rodrigue retired from the Board in 2005. He had served as a corporator since 1983 and a trustee since 1984.

64

1870

1880

1890

1900

1910

1920

1930

1940

Assistant Vice President & Accounting/ Operations Manager Elaine E. Wardwell retired in 2003 after 26 years at the Bank.

Donald “Peanut” Rodrigue, a longtime trustee, retired after 31 years of service to the Board of Directors.

Ray Pepin served as president of Kennebec Savings Bank from 1980 to 1993, but remained on the Board of Directors until 2003. During his presidency, the Bank acquired the Tappan-Viles Mansion and installed the Bank’s first in-house computer system.

1950

1960

1970

1980

Vice President & Loan Officer Tom Trafton retired in 2003 after 22 years of service to the Bank.

1990

2000

2010

2020

65

Dick O’Connor’s Legacy Over his nearly 45-year term on Kennebec Savings Bank’s Board of Directors, Dick O’Connor has had a profound impact on the Bank’s success—and that of many other organizations throughout the Kennebec Valley region.

His relationship with the Bank began when his father came into the Bank in the early 1970s and opened a CD with former Chairman of the Board Brooks Newbert. The funds came from the two-percent profit generated that year by the O’Connor family’s auto business.

Dick joined the board at the age of 30 in 1975, filling a vacancy left by his uncle, Jim O’Connor. At that time, the Bank had $25 million in assets and had one location with 13 employees. He would go on to become one of the longest-serving board members in the Bank’s history, and held the board chair position from 1994 to 2016.

At the time of his retirement from the Board of Directors in September 2019, the Bank had grown to $1.1 billion in assets and employed 138 employees over six locations. His leadership throughout these years is credited with supplying much of the impetus for the significant growth the Bank has experienced over his more than four decades on the Board.

Members of the Board of Directors are pictured here in 1993. From top left to bottom right: Peter Dawson, Donald “Peanut” Rodrigue, John Shostak, Dick O’Connor, Bill Pelletier, Ray Pepin and Harry Jose.

Kennebec Savings Bank was not the only organization in Kennebec Valley to benefit from his leadership and business savvy. As owner of O’Connor Motors for many years, the business grew to be among the top 10 Chevrolet dealers in the country. He and his wife, Joanne, have given generously in both volunteer time and charitable donations to a wide range of local causes. Cushnoc Crossing Bridge, referred to as “the Third Bridge,” connecting Augusta’s east and north ends and Route 3 to the coast, may very well have never been built were it not for Dick’s determination, leadership and tenacity.

Special thanks goes out to Dick for his incredible contribution to the Bank and the communities that it serves!

66

Dick O’Connor retired from Kennebec Savings Bank’s Board of Directors in September 2019. To pay tribute to his leadership to the Bank and the Kennebec Valley region, the Bank donated $50,000 to the Boys and Girls Clubs of Kennebec Valley.

The Bank commissioned a portrait of Dick, which now hangs alongside the portrait of his friend and mentor, Brooks Newbert, in the Tappan-Viles Mansion.

67

68

1870

1880

1890

1900

1910

1920

1930

1940

Our Community In 2002, the Children’s Discovery Museum in Augusta marked its 10th

In 2008, a young man with a big heart—Ricky Gibson—brought light

anniversary with Kennebec Savings Bank as an ongoing supporter.

to the Maranacook football field, using his Make-a-Wish Foundation

May 2005 brought abnormal amounts of rain. The saying goes “April showers bring May flowers,” but it was the May showers that brought the flowers to Kennebec Savings Bank customers. Knowing that people were tiring of all the rain, the Kennebec Savings Bank team surprised customers with potted geraniums, giving out thousands of the brightly

donation to make it possible. Gibson passed away in April 2009 after a seven-month battle with cancer, but his legacy lives on in our hearts and on the football field. Each year the Bank supports the Ricky Gibson Memorial Car & Bike Show, which provides funding for low-income student athletes to play football.

colored flowers to brighten everyone’s day.

Hurricane Katrina, an extremely dangerous category 5 hurricane, struck the Gulf Coast in late August 2005. Just a month later, Hurricane Rita, the fourth most intense hurricane ever recorded, worsened the effects caused by Katrina. These natural disasters drove a spike in fuel costs, not to mention the many families and communities left devastated by the damage. Kennebec Savings Bank joined with hundreds of other businesses and communities around the world to aid in the relief efforts.

There was also record hunger in central Maine that winter. The Bank reached out to approximately 30 food banks and food pantries to provide aid to those in need.

Local student Ricky Gibson designated his Make-A-Wish Foundation donation to make upgrades to the Maranacook Community High School football field. To honor his legacy, each year the Bank supports the Ricky Gibson Memorial Car & Bike Show.

Opposite: For many years following the 9/11 tragedy, Kennebec Savings Bank draped an American flag over its sign at the Main Office to honor those lost.

1950

1960

1970

1980

1990

2000

2010

2020

69

Giving Back Kennebec Savings Bank contributed more than $250,000 to approximately 400 organizations in 2002 alone. This included building on a long-standing partnership with the Capital Area Recreation Association Sports Complex to enlarge sports fields, build dugouts and batting cages, fund the first electronic scoreboard and assist with the addition of three new soccer fields.

In 2003, the Bank received the Governor’s Award for Business Excellence, a prestigious honor presented to businesses that demonstrate a consistently high level of caring and commitment in the areas of community, employees and customer service.

Above: Kennebec Savings Bank continues to be a major supporter of the Capital Area Recreation Association to this day.

That year, the Bank made its largest donation in its history at that time with a $100,000 gift to Team Cony to benefit Cony High School.

The gift helped to fund a larger auditorium, gym and classrooms in

Right: The Bank received the Governor’s Award for Business Excellence in 2003 in recognition for its commitment to the community, its employees and customer service.

the school’s new building, which opened in 2006.

The Bank continued to step up its community support in 2004, funding a record 373 projects. These included the largest-ever donation of $500,000 to Kennebec Valley YMCA, used to build a state-of-the-art facility in Augusta, as well as $25,000 to complete a three-mile section of the Kennebec Rail Trail from Hallowell to Farmingdale.

70

1870

1880

1890

1900

1910

1920

1930

1940

More than 17 Kennebec Savings Bank team members also volunteered for the 20th Annual Trek Across Maine to benefit the American Lung Association of the Northeast. Nine employees rode in the three-day, 180-mile bike ride under the team name the Loan Rangers, raising approximately $9,000.

Seventy-four employees donated a record $30,000 to the United Way campaign, and the Bank matched that amount. The funds raised supported local people with local needs.

In 2005, Kennebec Savings Bank contributed $500,000 to the capital campaign to fund the construction of the MaineGeneral Harold Alfond Center for Cancer Care, matching the largest gift in the Bank’s history.

For many years, a large percentage of the employees at Kennebec Savings Bank participated in the American Lung Association’s Trek Across Maine.

Kennebec Savings Bank President & CEO Mark Johnston served as campaign chair, helping to raise an additional $10 million toward the cost of building this state-of-the-art cancer center located in north Augusta.

2008 saw the Loan Rangers, now in their fifth year of riding in the Trek Across Maine, raise approximately $37,000, earning them a spot among the top three teams for fundraising out of a total of 148 teams and having the second largest in the number of participants.

Also in 2008, the Bank was a major sponsor of the Festival de la Bastille, held in Augusta in celebration of the area’s Franco-American community.

Kennebec Savings Bank was a major contributor to the fund to construct the MaineGeneral Harold Alfond Center for Cancer Care in 2005.

1950

1960

1970

1980

1990

2000

2010

2020

71

A Culture of Teamwork Kennebec Savings Bank has long placed a high priority on providing opportunities for employees to come together and strengthen their ability to work together toward a common goal—and all while having fun doing it.

One of the Bank’s signature employee events is the annual trip to Cabbage Island. Each summer, employees gather in Boothbay Harbor and embark on a boat trip to the quintessential Maine island destination. There they enjoy a full-service lobster bake, play outdoor games and walk the island’s natural trails, and return home to a view of the night-time lights of the harbor.

The Bank dedicates a day to appreciate all of its employees. The day starts with breakfast goodies at all of its locations and an opportunity for the Bank president and human resources director to shake each employee’s hand to say thank you. Later in the day, employees are treated to the annual Employee Appreciation Dinner. Only a handful of senior leaders are responsible for planning the evening’s entertainment and employees are not informed of what to expect

Top: For many years, Kennebec Savings Bank participated in Commute Another Way Day, which encouraged people to find a healthier and greener way to get to work.

Middle: Each year, employees are treated to an excursion to Maine’s pristine Cabbage Island for a delicious lobster bake and good company.

Bottom: Employees took to the hills for a family snow tubing trip to make the most out of a cold Maine winter!

72

until they arrive at the venue. Past events have included comedians, magicians, game shows, costume parties, and much more—and each have put their own unique twist on bringing together employees for fun and laughs.

Over the years, numerous family events have been held in an effort to keep it a fun work environment. From summer pool parties and lakeside beach cookouts to winter snow tubing and toboggan trips, every season provides opportunities to have some fun. For many years, the Bank hosts movie nights where employees’ children sprawl out in their pajamas on the lobby floor after closing to enjoy a Disney movie of their choice. Much pizza, popcorn and candy is consumed…maybe too much!

Although the employee events have changed in response to the passage of time and the Bank’s considerable growth, one thing remains unchanged—its commitment to fostering a close-knit atmosphere that values teamwork, trust, appreciation—and fun, of course!

Top: Kennebec Savings Bank participates in the Manchester Clean-up each year as a team to help keep the community’s common spaces looking great.

Middle: The Bowl for Kids Sake, a major fundraiser for Big Brothers Big Sisters of Mid-Maine, provides employees with an opportunity to test their bowling skills—and wear fun costumes—for a good cause.

Bottom: You never know what to expect when Kennebec Savings Bank throws a retirement party! When Vice President and Loan Officer Tom Trafton retired in 2003, he was treated to a concert by “Bankfolk”—a play on the band “Strangefolk”—in which his son was a member.

73

A New Decade

Our Bank

A

s a new decade began, Kennebec Savings Bank continued to grow and earn accolades from the communities it serves. It was voted “Best Bank” in the Augusta and Waterville markets by citizen vote in the community and was named the

“2010 Best Place to Work in Maine” in the small/medium category.

Left and above: Kennebec Savings Bank expanded its footprint into Farmingdale with the purchase and demolition of property overlooking the river in 2011.

74

1870

1880

1890

1900

1910

1920

1930

1940

In 2010, the board of Kennebec Valley Federal Credit Union approached Kennebec Savings Bank to pursue a merger of the two institutions. The Bank’s Board of Directors, and later Corporators, voted to accept the credit union’s membership in its February 2011 annual meeting. The credit union’s Board of Directors also voted unanimously to merge. The credit union’s members, however, voted against the merger, but the institutions still maintain a positive working relationship today.

Kennebec Savings Bank was named the “2010 Best Place to Work in Maine” in the small/medium business category.

Kennebec Wealth Management expanded from its Waterville location into the Augusta branch, and the Bank purchased property in Farmingdale to gear up for a permanent location in the area.

The Bank successfully completed its largest computer system upgrade to date in 2011, with 150 systems upgraded. It also introduced Zashpay, now Popmoney, an easy, fast and secure online person-to-person payment service that enabled customers to send and receive money to and from others directly from their Kennebec Savings Bank account.

Above: A political campaign of sorts, complete with lawn signs, was initiated as a result of the attempt to merge Kennebec Federal Credit Union and Kennebec Savings Bank.

1950

1960

1970

1980

1990

2000

2010

2020

75

76

1870

1880

1890

1900

1910

1920

1930

1940

Kennebec Savings Bank entered into the world of social media in 2011 when it launched its Facebook page.

In an effort to keep up with the latest advances in technology, in 2011 the Bank underwent its largest computer system upgrade at the time.

Kennebec Savings Bank also offered electronic statements to its

pumps provide heating and cooling for the building. Triple-pane glass

customers for the first time that year and entered the world of social

windows, automatic light switches, carpets made from recycled soda

media by creating a presence for the Bank on Facebook.

bottles and materials from sustainable forestry practices all contributed

The Farmingdale branch opened in 2012 and was the first LEEDcertified building constructed by the Bank. Geothermal wells and heat

to achieving Silver-level certification.

The Bank also introduced Mobile Money in 2012. Now customers could use their mobile devices to pay for goods as an alternative to a debit card or checks.

Opposite: Then-Board President Dick O’Connor had the honor of cutting the ceremonial ribbon at the grand opening of the Farmingdale branch in 2012. The facility was the first LEED-certified building constructed by the Bank.

1950

1960

1970

1980

1990

2000

2010

2020

77

Above: The Bank purchased the North Park Professional Building on Civic Center Drive in Augusta to provide much-needed office space for its growing staff.

The Bank invested in a complete upgrade of all its ATMs in 2013,

On September 4, 2014, Kennebec Savings Bank made a change to its

allowing customers to deposit multiples checks as well as cash up to 40

corporate structure for the first time since it was organized in 1870. The

bills directly into the machine. A new ATM was installed at the Alfond

Bank’s mutuality and corporators moved up to a newly-formed mutual

Center for Health in Augusta. A second KSB Anytime Electronic

holding company named Kennebec Savings, MHC. A mid-tier holding

Banking Center was opened on Civic Center Drive.

company, named Kennebec Savings, Inc., was also created during the

As the Bank continued to grow, its need for space had outgrown what was available at the State Street headquarters. It began moving operations staff into the North Park Professional Building at 330 Civic Center Drive

process. Updating the 144-year-old charter to a modern-day structure provided the Bank greater flexibility for growth and raising capital if it ever became necessary.

in Augusta. The spacious North Park location was able to meet these needs and could accommodate more expansion in the future, while receiving rent from the Social Security Administration for their offices.

78

1870

1880

1890

1900

Opposite: Kennebec Savings Bank opened a second KSB Anytime Electronic Banking Center in Augusta on Civic Center Drive, which is located adjacent to the Bank’s North Park Professional Building.

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

79

Also in 2015, Independent Community Bankers of America ranked Kennebec Savings Bank among the top 10 community banks nationwide for consumer lending. During this year, Kennebec Savings Bank provided almost one in every three mortgages written in Kennebec County.

The Bank had grown to 120 employees by 2016. Assets had grown to $864 million and capital reached $116 million. Kennebec Savings Bank The Bank introduced mobile deposit technology in 2014, providing customers with more convenience and flexibility.

celebrated the grand re-opening of the Farmingdale branch, and Independent Banker Magazine put Kennebec Savings Bank among the top 75 banks nationwide for its mortgage lending.

The Bank also introduced mobile deposit technology, making it possible for customers to deposit checks right from their smartphones or tablets by taking a picture.

That same year, Kennebec Savings Bank reached an incredible 100 straight quarters of being top-rated by BauerFinancial, Inc., putting it in the top four percent of banks nationwide.

The Bank introduced Apple PayÂŽ to its customers in 2015, as well as new bank cards with added security features by embedding computer chips in the cards.

80

1870

The Farmingdale branch celebrated a grand re-opening in 2016.

1880

1890

1900

1910

1920

1930

1940

Travis Rowell, Bill Hill and Liz Plummer were the first three employees in the Freeport location.

In 2017, Kennebec Savings Bank expanded outside of Kennebec County

in 2017. This transition was made to provide the Bank’s customers with

for the first time in its history with the opening of a location in the

a more protected, trusted and easily identifiable location to meet their

Town of Freeport. This new Electronic Banking and Loan Center offered

financial needs. And thus, www.KennebecSavings.Bank was born.

commercial and residential real estate loans, as well as many other conveniences including the ability to deposit checks and cash, withdraw

1950

In 2017, the Bank began to form new relationships with other local

and transfer money, and view account balances with its new ATM.

financial institutions in an effort to expand the reach of commercial

The Bank became one of the first in the country to meet the stringent

with other Maine community banks, Kennebec Savings Bank was able to

requirements necessary to acquire a .Bank web domain and email address

provide loans that would otherwise not be possible and offer a widened

1960

1970

1980

lending divisions beyond Kennebec County. By participating in loan deals

1990

2000

2010

2020

81

82

1870

1880

1890

1900

1910

1920

1930

1940

variety of loan products. Banks will continue to compete for smaller commercial loans while joining together for the largest loans to help keep the Maine banking community strong and employing Maine people.

The Bank acquired property across the street from its State Street location in 2017; the district court building on the property that was abandoned when the new Capital Judicial Center opened. The purchase and razing of the building was completed to make room for potential future expansion.

Kennebec Savings Bank received several industry awards and accolades in 2018, including being recognized by Forbes® as a Best-In-State

In 2017, Kennebec Savings Bank made important upgrades to its technology infrastructure, including the acquisition of a .Bank web domain.

Bank in Maine and receiving a BauerFinancial, Inc. 5-Star Rating.

Independent Banker Magazine named the Bank in the top ten of

The Bank refurbished the historic Tappan-Viles Mansion in 2019 with

consumer lenders under $1 billion in the nation, and the Independent

restoration work to the floors, walls and other fixtures. At the same

Community Bankers of America (ICBA) awarded the Bank one of three

time, the original bank building built in 1959 was remodeled to provide

national community service awards.

new office space for several departments. This involved the removal

The Freeport location grew considerably in 2018 with $45 million in loans. This growth helped propel Kennebec Savings Bank past the

of the Bank’s original vault, requiring special heavy-duty equipment including a forklift and a crane to remove the 17,000-pound door.

$1 billion mark in June 2018. The Bank as a whole finished the year

Due to the success of the Bank’s first venture into Cumberland County,

with nearly $1.065 billion in assets and became Maine’s 10th-largest

the Bank expanded its services at the Freeport location in September

Maine-based bank, moving up two spots from 2017.*

2019. Now employing a stand-up workstation and a universal banking approach, the Freeport branch offers its customers a wide range of

Opposite: The Freeport location became a full branch in 2019, employing a stand-up workstation and a universal banking approach.

personal, commercial and investment banking services in one location.

*Mainebiz, Dec 2018: Source: Federal Deposit Insurance Group

1950

1960

1970

1980

1990

2000

2010

2020

83

Photo of Howard Hill courtesy of Norm Rodrigue, longtime member of the Kennebec Land Trust.

Our Community In 2013, the Bank became a supporter of a $4 million renovation

donation to the cause. Howard Hill, the wooded backdrop to the Maine

project at the historic Gerald Hotel in Fairfield. Built at the turn of

State House, is a large and diverse natural area in the middle of Augusta.

the 20th century, the Gerald is a striking Renaissance Revival structure

Its 164 acres include a cascading stream, steep ravines, large boulders,

with a design not normally found in rural Maine, and it is one of

an expansive ridgeline with sheer cliffs and a diverse wildlife habitat.

the town’s largest buildings. It was listed on the National Register of

The property is crisscrossed by an informal network of old carriage and

Historic Places in 2013. The Gerald was renovated and converted to

woods roads that provide expansive views over the State House and the

provide much needed housing for seniors, and the construction project

Kennebec River Valley. It had been a goal of the Kennebec Land Trust

brought jobs, increased revenue for local businesses, and added tax

and many others to acquire and preserve this land since the mid 1970s.

revenue to the local area.

84

Also that year, the historic Maine Chance Lodge, once a health spa

In 2015, the Bank helped the Kennebec Land Trust purchase Howard

owned by cosmetics pioneer Elizabeth Arden, was renovated by the

Hill in Augusta by providing both commercial financing and a corporate

Travis Mills Foundation as a retreat for combat-wounded veterans and

1870

1880

1890

1900

1910

1920

1930

1940

their families. Veterans who have been injured in active duty or as a result of their military service, along with their families, receive an all-inclusive, all-expenses paid and barrier-free vacation in Maine. They participate in adaptive activities, bond with other veteran families and enjoy muchneeded rest and relaxation in Maine’s outdoors. Kennebec Savings Bank provided financing for the purchase and renovation of the estate, as well as the purchase of additional property to allow lake access to guests.

2016 was the beginning of a new chapter for Augusta’s downtown.

Revitalization of Water Street was well underway, breathing new excitement into the area. A campaign to renovate and reopen the historic Colonial Theater began in earnest. Buildings were being redeveloped, new restaurants were opening, new residential space was under construction and there was an increasing variety of shops and small businesses opening up on the main thoroughfare, drawing more people downtown.

The Bank continues to aid the revitalization through commercial loans and corporate support. It also helped fund the development of the Kennebec River Rail Trail that now connects Augusta to Farmingdale.

Right: President & CEO Andrew Silsby and Michael Hall, executive director of the Augusta Downtown Alliance, discuss the revitalization of Water Street in 2016.

1950

1960

1970

1980

1990

2000

2010

2020

85

Top left: Kennebec Savings Bank is a long-time supporter of the Kennebec River Rail Trail that now connects Augusta to Gardiner.

Top right: President & CEO Andrew Silsby poses with Retired U.S. Army Staff Sargeant Travis Mills in the midst of construction at the Travis Mills Foundation’s Maine Chance Lodge. Kennebec Savings Bank provided financing for the purchase and renovation of the facility, which benefits combat-injured veterans and their families.

Left: In the fall of 2017, Cushnoc Brewery was one of three establishments to open on Augusta’s Water Street, each aided by the Bank’s commercial lending division.

Opposite: The Bank provided a lead donation to support the renovation and restoration of Augusta’s iconic Colonial Theater.

86

1870

1880

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2010

2020

87

Our People Kennebec Savings Bank experienced record growth throughout the new decade, and the employee base grew along with it. The Bank had 94 employees across four locations in 2010, and in 2019, employed 140 people across six locations.

The Bank also strengthened its internship program which, by 2019, offered over a dozen students internship positions in departments across the Bank. A number of interns went on to establish full-time positions at the Bank, including the current controller and assistant treasurer.

In 2015, Bank president Mark Johnston retired after 21 years at the Bank and 15 years as president. Andrew Silsby was first named president in June 2014 and CEO in January 2015. Andrew had joined the Bank in December 1993 as a loan officer. In 2003, Andrew was named a Rising Star by Independent Banker Magazine.

Right: During Mark Johnston’s tenure as president, the Bank invested in considerable technology upgrades, established Kennebec Wealth Management, opened the Farmingdale branch, acquired new properties to enhance the Augusta and Waterville locations, purchased the North Park building in Augusta, and opened several KSB Anytime Electronic Banking Centers.

88

1870

1880

1890

1900

1910

1920

1930

1940

INTERNSHIP PROGRAM In 2019, Kennebec Savings Bank hired 12 students representing colleges from Maine and beyond as part of its annual internship program. The long-standing program aims to provide students with valuable, hands-on work experience to enhance their business skills and prepare them for the workforce.

Since 1996, the program has seen more than 100 participants and was the beginning of a career at Kennebec Savings Bank for more than a dozen of its current employees.

1950

1960

1970

1980

1990

2000

2010

2020

89

Giving Back In 2010, the United Way of Mid-Maine awarded Kennebec Savings Bank the George R. Keller Award for participation level and campaign growth. Independent Banker Magazine also recognized the Bank for its significant involvement with the Trek Across Maine, the largest fundraising event of its kind for the American Lung Association.

Kennebec Savings Bank was a major contributor to Johnson Hall’s capital campaign geared toward restoring and renovating their historic property in Gardiner.

The next year, the Bank was recognized again for its community support, earning an award from Maine Sports Legends for its commitment to youth and sports. In 2012, it received the John Bridge Award from the Kennebec Valley YMCA for its longtime support of local families and youth.

Over the next few years, Kennebec Savings Bank’s contributions to the communities it serves continued to grow, with more than 500 requests answered and $550,000 awarded in 2015 alone. These contributions included capital campaign contributions, annual appeal donations and special event underwriting and sponsorships to health care, education, athletics, food banks, animal shelters, fuel assistance funds and more.

Kennebec Savings Bank contributed to several major giving campaigns in 2016, pledging $150,000 to the University of Maine at Augusta for its 50th Anniversary Campaign and $100,000 to Johnson Hall’s efforts to restore and expand its historic property.

Kennebec Savings Bank donated $150,000 to the City of Waterville for the Riverwalk Project in 2018.

90

1870

1880

1890

1900

1910

1920

1930

1940

In 2016, the Bank launched its Catalyst Grant program, designed to provide funding for organizations to launch new initiatives that broaden their impact on the communities they serve. Two $30,000 Catalyst Grants are awarded each year and disbursed over a three-year period.

A committee of Bank employees representing various departments determines the recipients.

In 2018, through the Bank’s Community Dividends program, more

Kennebec Savings Bank pledged $100,000 to Waterville Creates! toward a new arts facility in downtown Waterville in 2019.

than $810,000 was donated across the 35 communities Kennebec Savings Bank serves, supporting more than 350 organizations in Kennebec County. Bank employees also volunteered over 9,000 hours for nonprofits throughout the Bank’s service area.

Maine Dental Health Out-Reach was one of two Catalyst Grant recipients in 2016.

Kennebec Savings Bank contributed to several major campaigns in 2019, most notably in the Waterville area where a record amount of community investment was underway to help revitalize the city.

The Bank made a $100,000 donation to Waterville Creates! toward a new arts building in the heart of downtown on the heels of a $150,000 donation toward the City of Waterville’s Riverwalk project.

The Bank also contributed to several campaigns to build turf fields at local high schools across the Kennebec Valley region.

1950

1960

1970

1980

1990

2000

2010

2020

91

ANNUAL REPORTS THROUGH THE YEARS Kennebec Savings Bank publishes an annual report to provide an update on its financial standing. In more recent years, the publication is first distributed at the Bank’s annual meeting of the Board of Corporators in February. Each cover provides its readers with a quick glimpse into what life at the Bank was like through the years.

92

93

PAST AND PRESENT BOARD CHAIRS

PAST AND PRESENT CEOS, TREASURERS AND PRESIDENTS

Watson F. Hallett: March 21, 1870, to January 16, 1884 Russell Eaton: January 22, 1884, to May 9, 1887 Martin V. B. Chase: May 9, 1887, to December 28, 1905 George E. Macomber: January 30, 1906, to May 11, 1936 Walter M. Sanborn: May 11, 1936, to May 13, 1957 Brooks Newbert: May 13, 1957, to June 12, 1980 Burill D. Snell: June 24, 1980, to September 23, 1983 John H. Shostak: October 11, 1983, to March 29, 1994 Richard D. O’Connor: April 15, 1994, to February 16, 2016 William W. Sprague, Jr.: February 16, 2016, to present

Joseph L. Adams: March 21, 1870, to May 12, 1874 Frank H. Adams: May 12, 1874, to January 12, 1876 Samuel B. Glazier: January 12, 1876, to July 15, 1878 Russell Eaton: July 15, 1878, to May 8, 1882 William B. Nichols: May 8, 1882, to January 11, 1887 John R. Gould: January 11, 1887, to July 2, 1888 William G. Boothby: July 2, 1888, to February 21, 1942 Arno A. Bittues: February 25, 1942, to December 31, 1959 Norman A. Cote: December 31, 1959, to February 12, 1980 Raymond D. Pepin: February 12, 1980, to June 1, 1993 William H. Pelletier: June 1, 1993, to January 1, 1999 Mark L. Johnston: January 1, 1999, to December 31, 2014 Andrew E. Silsby: July 1, 2014 to present

William G. Boothby, treasurer from 1888 to 1942.

94

Brooks Newbert, chair of the Board from 1957 to 1980.

Dick O’Connor, Chair of the Board from 1994 to 2016.

2020 BANK OFFICERS

The Board of Directors in 2020. Standing left to right: Douglas E. Reinhardt, Amy P. Tardiff, Charles W. Hays, William W. Sprague, Diane F. Hastings and Mark L. Johnston. Bottom row left to right: Norman S. Elvin, Andrew E. Silsby and Mary A. Denison.

2020 BOARD OF DIRECTORS William W. Sprague, Jr., Chair Charles W. Hays, Jr., Vice Chair Andrew E. Silsby, Clerk Mary A. Denison Norman S. Elvin Diane F. Hastings Mark L. Johnston Douglas E. Reinhardt Amy P. Tardiff

Andrew E. Silsby, President & Chief Executive Officer Craig J. Garofalo, Executive Vice President, Chief Operating Officer & Chief Loan Officer Christine M. Brawn, Senior Vice President & Chief Human Resources Officer David R. Holmblad, Senior Vice President, Marketing Director & Communications Officer Debra A. Getchell, Senior Vice President, Chief Financial Officer & Treasurer David A. Grenier, Senior Vice President & Chief Commercial Banking Officer Anita M. Nored, Senior Vice President & Chief Retail Banking Officer David J. Roy, Senior Vice President & Chief Risk Officer Gail P. Conley, Regional Vice President & Director of Investment Services David M. Eldridge, Regional Vice President & Commercial Banking Officer William S. Hill, Regional Vice President & Loan Officer Amos M. Byron, Vice President & Trust Officer Jason C. Dupuy, Vice President & Technology Officer Matthew W. Dwyer, Vice President & Loan Officer Brent L. Hall, Vice President & Commercial Banking Officer James R. Lagasse, Vice President & Information Security Officer Gary Lapierre, Vice President & Loan Officer Michelle L. Richardson, Vice President & Director of Lending Operations D. Mark Stebbins, Vice President & Senior Credit and Appraisal Analyst Katie C. Vickers, Vice President & Commercial Services Manager Tracy L. Warren, Vice President & Loan Officer Julie A. Armstrong, Assistant Vice President & Branch Manager Erin N. Bechard, Assistant Vice President & BSA Officer Tracy L. Farrell, Assistant Vice President & Loan Officer Jessica J. Norton, Assistant Vice President & Operations Officer Nicolas G. Patenaude, Assistant Vice President & Assistant Treasurer Carol L. Payne, Assistant Vice President & Vendor Management and Security Officer Jennifer L. Bechard, Human Resources Managing Officer Mary A. Hammond, Human Resources Officer Tamara R. Hillman-Tardiff, Loan Officer Heather O. Knowles, Controller Jessica M. Reynolds, Branch Manager & Loan Officer Anthony W. Rhoades, Loan Officer Angela B. Robbin, Regulatory Counsel, Compliance Officer & CRA Officer Travis N. Rowell, Branch Manager & Loan Officer Lydia M. Tuttle, Collections Officer

95

President & CEO Andrew Silsby

A FINAL NOTE FROM THE PRESIDENT & CEO

I

n 2020, Kennebec Savings Bank will recognize a milestone anniversary just as the State of Maine enters its bicentennial year. We have long understood that the success of our communities is intrinsically linked to our own. And just as history has shown,

the next 150 years are sure to present their own set of challenges and opportunities. Our commitment to excellent service, teamwork and dedication to our community will remain on the forefront as we move into our next 150 years. We hope you have enjoyed this historical look back as we celebrate this significant anniversary for Kennebec Savings Bank.

96