2023 Annual Report
Reaching
New Heights
while staying above the turbulence
Since 1870, Kennebec Savings Bank has been helping our customers get to their financial destinations. More than that, I like to think of our work as helping our customers reach their dreams. Whether it’s buying a first home, planning for retirement, or preparing for a new baby to arrive, we are honored to be trusted advisors in our customers’ lives, helping them to navigate where they want to go.
As President and CEO, I am always looking ahead and anticipating the future needs of our customers and our employees. How can we continue to improve and move forward? How can we stay above the turbulence of life, so our customers arrive at their financial destination safely and comfortably? It’s incredible to think that when the Bank first opened its doors in Augusta over 153 years ago, deposits were made in paper currency and our Bank’s vault safety was measured by how thick the door was. That was fifty years before the Wright brothers flew the first airplane! A lot has changed since then. We now live in a digital world where most deposits are made online and our “Bank vault” is measured in inches (and not feet like the vaults of old). We invest in the best technologies to keep our customers’ money secure. Our founders may not have imagined a world where a customer could deposit a check on a handheld phone, let alone even have
Our Pursuit of Clear Skies
Staying above the turbulence requires an experienced and knowledgeable team working together.
Andrew Silsby President & Chief Executive Officer
computers, but they certainly had the vision to commit to continuously evolving to provide the best banking services possible. Similarly, I think the Wright brothers would be amazed at the advancements in aviation and how a deeper understanding of aerodynamics has enabled humans to fly beyond the limits of the sky.
One thing that hasn’t changed is that when you enter a Kennebec Savings Bank branch, you’ll be greeted by a team of people who care. We are all dedicated to helping our customers reach their goals and our communities thrive. While many customers might only interact with our bank tellers or loan officers, we have an entire network of skilled professionals working behind the scenes to support everything we do. From our Operations team to our Risk team & Fraud Analysts, we are all here working together to deliver an exceptional customer experience.
By many measures, 2023 was a tough year for banking. From the first half of the year failure of multiple banks that had operations in California to rapidly changing interest rates to a steep rise in bank fraud, there was turbulence to navigate. It was also a tough year for our communities; the unthinkable shooting in Lewiston and the devastating wind and rainstorms impacted so many of us. In the face of catastrophe, we strive to stay above the bumps and turmoil, so our customers always feel safe and secure. The Bank has been serving Mainers for
generations and we have weathered everything from two world wars and the Great Depression, to 9/11 and the Great Recession, to the COVID-19 pandemic and its aftermath. Through it all, we’ve remained stable as we continue to evolve to meet the needs of our customers.
Just as a plane soars above the turbulence for a smooth flight, Kennebec Savings Bank pursues clear skies for our customers through meticulous planning, investment in new financial technologies, and by our experienced staff collaborating as a team. We may not defy gravity in our day-to-day work, but we are guided by a visionary spirit as our Bank continues to grow and soar to new heights.
So, where do you want to go? It’s our pleasure to help you get there.
2023 Awards
Readers’ Choice Award
Kennebec Journal & Morning Sentinel
United Way of Kennebec Valley Large Business Partner of the Year Award
Kennebec Valley Chamber of Commerce Large Business of the Year Award
Bauer 5-Star Rating
34 years or 136 straight quarters – less than 4% of banks nationwide have this track record
For many, the face of Kennebec Savings Bank is the team that greets you at one of our seven branches in Central and Southern Maine. To be able to provide reliable banking services for our customers is an honor. Much like an in-flight crew works to make their passengers comfortable and put them at ease, our team works to make every customer feel welcome and know that they are in good hands. It’s a responsibility we take seriously, whether the need is small or large. “We are very customer focused – we’ll even balance a customer’s checkbook, if needed! We do it all,” shares Sara Fifield, Business Development and Branch Manager in Augusta. 2023 brought some unfortunate and challenging days to our communities, and it was important for us to continue to provide service for our customers. In order to keep the Augusta branch open during the December wind and rain storm, “Staff came to the Augusta branch from other locations just to fill
Welcome Aboard!
Visiting a local Bank branch connects you with our caring team.
in and assist us, but really it was to assist our customers. When electricity is out and the internet is down, everyone is working together.”
While Sara and the frontline teams may be who most customers interact with, there are entire groups of experienced professionals supporting each interaction – like air traffic controllers helping to ensure safe takeoffs and landings. “A lot is happening in the background to make sure the frontline staff is shining and that transactions are going smoothly. If there is an issue, we pick up the phone,” shares Natusha Fate.
Natusha is one person the frontline team can always call upon in her role as Branch Operations Manager. She loves that no two days are ever the same in her line of work. Knowledgeable about banking systems, regulatory requirements, and customer service essentials, Natusha and her team are able to balance the needs of multiple departments while providing consistent support to the frontline teams. “We work to create a bridge between frontline staff and the operational areas. We make sure the systems and processes we use support a positive customer experience. It’s this type of teamwork that enables Kennebec Savings Bank to provide an exceptional experience that helps deliver our customers to their financial destinations, both smoothly and comfortably.
“The flight experience starts before the plane takes off. At Kennebec Savings Bank, our culture starts before you walk in the door. We hire people who believe in our mission of excellence in community and customer service.”
Sara Fifield
Business Development & Branch Manager in Augusta
“We all lean in together to give our customers a first-class experience.”
Natusha Fate Branch Operations Manager
When Bank customers experience fraud or a scam, they can feel helpless and alone – like when an airline customer misses a connecting flight and isn’t sure where to find help. While fraud attempts have soared in recent years, our fraud team is a mighty resource that detects, prevents, and mitigates all kinds of fraud attempts – and sometimes even saves the day. Our team works tirelessly to stop fraud before it happens. We train continuously in the latest technologies to track transaction patterns and recognize the signs of a scam. Across the Bank it’s a top priority and a team effort. “We rely heavily on our frontline staff. They know our customers,” said Senior Risk & Fraud Investigation Administrator Teresa Sherburne, who is also a Certified Anti-Money Laundering (AML) and Fraud Professional with the American Bankers Association. The fraud team provides regular
Expertly Navigating Turbulence
Our fraud team acts as our customers’ dedicated copilots in helping to keep their money safe.
training for staff members, going over questions to ask customers when fraud is suspected and showing them how to identify fraudulent checks.
Risk Analyst Cathryn Thurston has been with the Bank for almost four years and has a strong sense of pride for being able to protect the Bank and its customers. In her volunteer work with Junior Achievement, some third graders observed that Cathryn is kind of like a “bank cop.” She agrees, “There is a detective component to the work.” It’s not unheard of for Cathryn to move quickly through the office and have lots of adrenaline pumping when a fraud situation is stopped from occurring. “We’re preventing a customer from losing money and they are so appreciative when that happens. It could be their life savings or money they want to leave to their family members,” said Cathryn.
Teresa proudly shares, “We prevented over $430,000 in fraud from happening during 2023.” Our team sees everything from elder abuse and romance scams to stolen or altered checks. When fraud happens, the team has a process of best practices to help mitigate any damage. “Most importantly, we are there to help and be a resource for customers,” says Teresa.
“We’re preventing customers from losing money and they are very appreciative.”
Cathryn Thurston
Risk Analyst
“I love stopping scammers at the gate.
When we get a win, you can hear the ‘woo-hoo’ all the way through our organization.”
Teresa Sherburne
Senior Risk & Fraud Investigation Administrator
Security Check 2023 Numbers
Fraud Cases Reported Over 3x As Many Cases Since 2021
$ , In Net Losses From Check Fraud Prevented $ . , In Losses Prevented
Since 2016, the Bank has stopped over $1.5 million in fraud transactions. When a Bank employee stops a scam or fraud, they are recognized in the fraud team’s monthly newsletter as a Fraud Buster.
To say Maine’s housing market was competitive over the last few years feels like an understatement; skyhigh demand, low housing inventory, and record-low interest rates all combined to create a frenetic and turbulent atmosphere. When interest rates began to fly high in 2023, the market began to slow down considerably. This meant that after multiple years of high-volume loan processing, 2023 was a great year to work on gaining efficiencies in our loan origination and closing processes.
At Kennebec Savings Bank we are committed to keeping the loan process as fast, simple, and affordable as possible. While we were meeting our customers’ needs, our loan team saw that we could do even better. “We’ve always made it work and our staff always provided an excellent customer experience,” shares Residential Closing Manager Elysabeth Armstrong. “Now we are just quicker and more efficient than ever.”
Enhancing the Experience
Efficiencies in our loan processing helps the customer experience fly to new heights.
When it comes to an airline’s ground crew, timing and accuracy is everything – and the same can be said for what happens behind the scenes to process loans. The loan team looked at our entire loan process for ways to streamline and to take the turbulence out of every step. “We wanted to know how we could make the system work better for all of us,” shares Assistant Vice President and Director of Loan Operations Heather Dutill. “All the lenders have different styles, but everyone got on board with doing things consistently, so we could be more efficient.” The entire team received training on the loan system’s capabilities, which helped eliminate duplicate efforts within the process.
“There are so many facets to buying and financing a home and customers simply don’t want to be entangled in all the details,” observes Armstrong. “We prepare our own closing packages right here, which is unique and saves our customers hundreds if not thousands of dollars in closing costs. Closing packages used to take weeks to prepare and now, if everything is in place, it’s just a handful of days. Our competitors simply can’t do this the same way we can.”
Updating our processes and procedures has also had a positive impact on our staff. “We want our team to come to work and not be stressed or have more to do than they can handle. Now when we’re busy, we
know we have a great process and we know we can get through it,” shares Armstrong. It was also meaningful for Armstrong to be able to make these improvements to the department. “The Bank is so supportive of me. I had lots of ideas and they listened to them and gave me the runway to implement them.”
“We prepare our own closing packages right here, which is unique and saves our customers hundreds if not thousands of dollars in closing costs.”
Elysabeth Armstrong Residential Closing Manager
Information
Local Loans with a Local Crew Kennebec Savings Bank does not sell our mortgage loans on the secondary market, which translates into a faster and simplified process. By sidestepping the complexities of selling loans on the secondary market, we are able to streamline the lending experience, sparing our customers from unnecessary red tape, paperwork, and costs. From taking a loan application to closing, each customer has a single point of contact for all of their needs. It is just one of many ways the Bank seeks to provide a smooth financial experience for our customers.
“I love that everyone works together at Kennebec Savings Bank. Customers can come to us and get their loan closed quickly, without the turbulence caused by unnecessary gate changes. We really care about our customers”
Heather Dutill Assistant Vice President & Director of Loan Operations
A successful flight doesn’t start and end with the pilot – it involves a sophisticated team working together to reach the destination. At Kennebec Savings Bank, the customer experience is supported by an entire network of experienced professionals. Behind the scenes, our Operations team is responsible for many initiatives that enhance our services. From improving our digital banking platform to implementing a formal project management process, we are committed to evolving our ground operations so we help ensure our customers reach their financial goals – while enjoying the journey.
Upgrading our digital banking platform was an opportunity for us to elevate the customer experience and engage in continuous improvement. The Digital Banking team sought feedback from Bank staff and customers to make improvements to the platform. With all this input we were able complete multiple upgrades to improve
Onward & Upward
the technology so our customers could more easily navigate the system. We also introduced new features and functionality, such as Zelle®, a person-to-person payment platform. Making changes to the platform has had a major impact and allowed our customers and employees to do more while they are on the go. “We test everything multiple ways – from right clickers, to left clickers, to double clickers, or even for tablet users,” shares Amy Driscoll, Digital Services Analyst.
Working behind the scenes, our Operations team provides lift to all Bank employees. “Behind the scenes, the goal is to help Bank projects take off smoothly and land on time without change fees.”
With increased online Bank activity, we also elevated security in 2023 with features such as multi-factor authentication and tighter parameters on atypical transaction patterns. These technological upgrades assist our fraud team in locating unusual behavior, which helps to prevent fraud. “Gone are the days of braving a blizzard to have to make a bank deposit; customers can safely and securely access the Bank from the comfort of their home, 24 hours a day, seven days a week. From payments and deposits to secure messaging, our goal is to keep Kennebec Savings Bank at our customers’ fingertips,” says Amy.
A project management team was also introduced last year as a way to enhance all of our ground operations. Carol Payne, Assistant Vice President & Vendor Management and Security Officer, along with other members of the teams, Erica Austin, and Emmaline Briske, launched the Project Management Office and created a process and handbook for employees to introduce and track projects
across the Bank. By streamlining the way we bring new planes to the fleet, Bank employees now have clearer communication and awareness and transparency around what’s changing and why. “This program allows us to get up above the clouds and have a better view of where we are all headed. We can easily see which projects are urgent, which ones help us reach our strategic goals, and which projects are required to meet regulatory requirements. We are collaborating on a higher level, each and every day” shares Carol.
Carol Payne
Assistant Vice President & Vendor Management and Security Officer
Fostering Strong Connections for Success in Digital Banking
Our Digital Banking team has forged a strong relationship with our digital platform vendor. Our team’s attention to detail, commitment to rigorous testing, and clear communication has established Kennebec Savings Bank as a trusted partner. When our provider is looking to test new features or make changes to the digital platform, our team has an early voice at the table. At a recent digital banking conference, the Kennebec Savings Bank Digital Banking team was featured prominently, with Vice President & Banking Systems Officer Jess Norton presenting.
“We’re making sure that Kennebec Savings Bank is on the radar with our ideas and perspectives being seen, heard, and implemented.”
Amy Driscoll Digital Services Analyst
money, it’s also about our team donating their time to help others.
One example of this type of giving back is Domingo Cheleuitte, a systems solutions analyst at the Bank who has been volunteering with The Literacy Volunteers of Kennebec (LVK) for several years. During the pandemic he helped create a platform for them to continue face-toface tutoring online with tablets. In 2023, he continued to support community members with LVK’s Digital Equity Program, which received funding through the state’s Affordable Connectivity Program. The Digital
Helping Others Spread Their Wings
We give back as a way to elevate our community.
Equity Program helps people in the community with both internet connectivity and technology tutoring, making sure everyone can access and be able to use technology. As one of LVK’s technology tutors, Domingo is available to answer questions and to show people how to operate new devices. “It makes a difference on both a micro and macro level,” shares Domingo. “Individuals who have confidence issues with trying new technology can learn in a patient, nonintimidating, and helpful environment. When they learn how to use a device, they can talk to their family or look at their financial information. On the macro level, it allows people to access more services, such as applying for jobs. It’s a mutual benefit. By helping others, it allows all people to reach new heights.”
Domingo’s involvement with the program has been incredibly rewarding. Not only has he been able to share his technological know-how with others, it has also given him an opportunity to spread his wings. “This was my first opportunity to lead a project. It was a tremendous learning experience for me. Managing a project in a multifaceted way has carried over to my current position at the Bank.” Domingo is grateful that his volunteering is encouraged at Kennebec Savings Bank. “The Bank is always willing to participate and support my work with LVK. There is not much more I could ask for.”
Domingo Cheleuitte Systems Solutions Analyst
2023 board of directors
Brian H. Tarbuck
In 2023, Brian Tarbuck was elected to our Board of Directors. He is a Professional Engineer and serves as general manager of the Greater Augusta Utility District. Involved in his community, Brian serves on several local nonprofit boards and is on the school board for RSU #38.
William W. Sprague, Jr.
Andrew E. Silsby Clerk
Charles W. Hays, Jr. Board Chair
Alison A. Lorenz
Amy P. Tardiff
Douglas E. Reinhardt
Mary A. Denison Vice Chair
Diane F. Hastings
Mark L. Johnston
Norman S. Elvin
Christopher L. Gaunce
Brian H. Tarbuck
Corporators
P. Nicholas Alberding
James W. Bass
Laura J. Benedict
Brian S. Berry
John D. Blouin
Dr. Mark Bolduc
Michelle A. Bragg
Kevin R. Bunker
Amos M. Byron
Jessica J. Clark
Gail P. Conley
Philip W. Davidson
Cathy A. DeMerchant
Mary A. Denison
Steven E. Diaz, MD
George W. Diplock, Jr.
Katie L. Doherty
Timothy M. Dunham
Jordanne Dunn, DMD
Matthew W. Dwyer
David M. Eldridge
Norman S. Elvin
Edward J. Fabian, III
Michael J. Fortin
Scott D. Fossett
Sarah P. Fuller
Phyllis Gardiner
Craig J. Garofalo
Christopher L. Gaunce
Debra A. Getchell
David A. Grenier
Daren S. Hachey
Brent L. Hall
Donn E. Harriman
Diane F. Hastings
Charles W. Hays, Jr.
Bradley A. Hendrickson
William S. Hill
Charles L. Hippler, III
Kathleen B. Hounsell
Jeffrey E. Hubert
Jennifer L. Johnson
Mark L. Johnston
Kevin P. Joseph
Earle R. Kenney
Michelle P. Labonte
Patricia P. Ladd
Donald O. Lagace, Jr.
James R. Lagasse
Joseph M. Lajoie
R. Howard Lake
James S. LaLiberty
Gary Lapierre
Raegan F. Larochelle
Alison A. Lorenz
Andrew B. MacLean
Abigail B. Manter
Robert M. Marden
Walter F. McKee
Nicole O. McSweeney
Chelsea B. Moeller
Robert M. Moore, Jr.
Stacey L. Morrison
L. Michael Murphy
Lisa L. Newell
Anita M. Nored
Mary Kathleen O’Halloran
Tobias R. Parkhurst
Gary R. Peachey
Michele L. Pelletier
Daniel S. Petersen
Rachel A. Petersen
Gregory R. Piper
Donald J. Plourde
Matthew G. Pouliot
William D. Purington, II
Rebecca J. Pushard
Allan L. Rancourt
Michael J. Roy
David J. Roy
Andrew E. Silsby
William W. Sprague, Jr.
Ingrid L. Stanchfield
D. Mark Stebbins
Paul D. Stein
Lauren A. Sterling
Barton J. Stevens
Robin M. Struck
Brian H. Tarbuck
Amy P. Tardiff
Jonathan R. Tardiff
Eben A. Thomas
Matthew L. Walters
Tracy L. Warren
P. Kevin Wellenius
Dennis S. Wheelock
Stephen J. Wood
Courtney E. Yeager
Honorary Corporators
Stephen W. Albison
Cecile A. Bouffard
Nona O. Boyink
Leo W. Caron
Richard A. Coleman
Daniel J. Dubord
Maurice G. Fortin
Thomas E. Foster
Carole T. Fryover
Gary L. Hammond
Robert C. Hutchinson
Roger J. Katz
Dr. H. Winston Kipp
Warren C. Kessler
Peter E. Meulendyk
Mary L. Morrison
Michael A. Napolitano, Jr.
Richard D. O’Connor
Reginald E. Perry
William H. Perry
Joan Phillips-Sandy
Douglas E. Reinhardt
Peter G. Thompson
Thomas A. Trafton
Leo J. Violette
Sumner A. Webber, Sr.
Dorothy S. Weeks
Kennebec Savings Bank Officers & Key Management Staff
Andrew E. Silsby President & Chief Executive Officer
Craig J. Garofalo Executive Vice President, Chief Operating Officer & Chief Loan Officer
Kristine A. Avery Sr. Vice President & Chief Human Resources Officer
Debra A. Getchell Sr. Vice President, Chief Financial Officer & Treasurer
David A. Grenier Sr. Vice President & Chief Commercial Banking Officer
Michelle L. Labonte Sr. Vice President & Senior Residential Lender
David J. Roy Sr. Vice President & Chief Risk Officer
Danny L. Swindler, II Sr. Vice President & Chief Banking Operations Officer
Aline R. Taylor Sr. Vice President & Chief Retail Banking Officer
Gail P. Conley Regional Vice President & Director of Investment Services
Rene M. Couverette Regional Vice President of Enterprise Risk & Business Continuity
David M. Eldridge Regional Vice President & Commercial Banking Officer
Nicolas G. Patenaude Regional Vice President & Assistant Treasurer
Amos M. Byron Vice President & Senior Trust Officer
Amanda L. Cooley Vice President & Marketing and Communications Officer
Matthew W. Dwyer Vice President & Residential Lending Manager
Sharon L. Etscovitz Vice President & Loan Servicing Officer
Brent L. Hall Vice President & Commercial Banking Officer
James R. Lagasse Vice President & Information Security Officer
Gary Lapierre Vice President & Loan Officer
Ian T. McCarthy Vice President & Commercial Banking Officer
Jessica J. Norton Vice President & Banking Systems Officer
Paige A. O’Donnell Vice President & Retail Regional Manager - Southern Division
Michael J. Pietroski Vice President & Retail Regional Manager - Central Division
Angela B. Robbin Vice President, Regulatory Counsel, Senior Compliance Officer & CRA Officer
D. Mark Stebbins Vice President & Senior Credit and Appraisal Analyst
James B. Tribou Vice President & Senior Commercial Credit Officer
Tracy L. Warren Vice President & Loan Officer
Nathan E. Archibald Asst. Vice President & Commercial Portfolio Manager
Julie A. Armstrong Asst. Vice President & Loan Officer
Erin N. Bechard Asst. Vice President & BSA Officer
Jean M. Conway Asst. Vice President & Senior Financial Analyst
Heather L. Dutill Asst. Vice President & Director of Loan Operations
Heather O. Knowles Asst. Vice President & Controller
Carol L. Payne Asst. Vice President & Vendor Management and Security Officer
Angela M. Rackliff Asst. Vice President & Customer Care and Customer Experience Manager
Anthony W. Rhoades Asst. Vice President & Loan Officer
Marco J. Stigling Asst. Vice President & Residential and Consumer Lending Manager
Lydia M. Tuttle Asst. Vice President & Collections and Loan Officer
Todd E. Wentworth Asst. Vice President & Creative Officer
Benjamin A. Weymouth Asst. Vice President & Technology Officer
Mary A. Hammond Human Resources Officer
Tamara R. Hillman-Tardiff Loan Officer
Sarah W. Sachs President, KFS Mortgage Company
Kennebec Savings, MHC, Parent of Kennebec Savings Bank
Consolidated Balance Sheet & Statement of Income*
Cash and Cash Equivalents
U.S. Government and Agencies
Other Bonds
Corporate Stock
Real Estate Loans
Commercial Loans
Other Loans
Allowance for Loan Losses
Bank Premises and Equipment
Other Assets
Total Assets
Liabilities & Capital
Checking Deposits
Savings Deposits
Certificates of Deposit
Other Retail Funding
Wholesale Funding
Other Liabilities
Equity Capital
Total Liabilities and Capital
Statement of Income
Interest on Loans
Interest and Dividends on Investments
Total Interest Income
Interest Paid on Deposits
Interest Paid on Wholesale Funding
Total Interest Expense
Net Interest Income
Provision for Loan Losses
Other Operating Income
Security Gains/(Losses)
Operating Expenses
Earnings Before Income Taxes
Income Taxes
Net Operating Income
Unrealized Holding Gains/(Losses) on
55,564,031 (5,356,671) (2,393,462) (7,750,133) 47,813,898 (1,350,000) 5,109,248 678,176 (34,403,274)
*Unaudited
“On behalf of the entire crew at Kennebec Savings Bank, I’d like to thank you for choosing to bank with us. We hope that every banking experience is enjoyable and exceeds your expectations. We look forward to the opportunity to serve you again in the future. It is our pleasure to help you get to where you want to go. When we look at the future and what’s possible, the sky’s the limit.”
Andrew Silsby President & Chief Executive Officer
