XIII. A New Decade

A New Decade

Our Bank

As 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.

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.

e 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. 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.

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.

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 o ered electronic statements to its customers for the rst time that year and entered the world of social media by creating a presence for the Bank on Facebook.

e Farmingdale branch opened in 2012 and was the rst LEEDcerti ed building constructed by the Bank. Geothermal wells and heat pumps provide heating and cooling for the building. Triple-pane glass windows, automatic light switches, carpets made from recycled soda bottles and materials from sustainable forestry practices all contributed to achieving Silver-level certi cation.

e 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.

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.

e Bank invested in a complete upgrade of all its ATMs in 2013, allowing customers to deposit multiples checks as well as cash up to 40 bills directly into the machine. A new ATM was installed at the Alfond Center for Health in Augusta. A second KSB Anytime Electronic Banking Center was opened on Civic Center Drive.

As the Bank continued to grow, its need for space had outgrown what was available at the State Street headquarters. It began moving operations sta into the North Park Professional Building at 330 Civic Center Drive in Augusta. e 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 o ces. On September 4, 2014, Kennebec Savings Bank made a change to its corporate structure for the rst time since it was organized in 1870. e Bank’s mutuality and corporators moved up to a newly-formed mutual holding company named Kennebec Savings, MHC. A mid-tier holding company, named Kennebec Savings, Inc., was also created during the process. Updating the 144-year-old charter to a modern-day structure provided the Bank greater exibility for growth and raising capital if it ever became necessary.

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.

The Bank introduced mobile deposit technology in 2014, providing customers with more convenience and flexibility.

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

at 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.

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

e Bank had grown to 120 employees by 2016. Assets had grown to $864 million and capital reached $116 million. Kennebec Savings Bank 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 Farmingdale branch celebrated a grand re-opening in 2016.

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 for the rst time in its history with the opening of a location in the Town of Freeport. is new Electronic Banking and Loan Center o ered commercial and residential real estate loans, as well as many other conveniences including the ability to deposit checks and cash, withdraw and transfer money, and view account balances with its new ATM.

e Bank became one of the rst in the country to meet the stringent requirements necessary to acquire a .Bank web domain and email address in 2017. is transition was made to provide the Bank’s customers with a more protected, trusted and easily identi able location to meet their nancial needs. And thus, www.KennebecSavings.Bank was born.

In 2017, the Bank began to form new relationships with other local nancial institutions in an e ort to expand the reach of commercial lending divisions beyond Kennebec County. By participating in loan deals with other Maine community banks, Kennebec Savings Bank was able to provide loans that would otherwise not be possible and o er a widened

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.

e 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. e 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 Bank in Maine and receiving a BauerFinancial, Inc. 5-Star Rating. Independent Banker Magazine named the Bank in the top ten of consumer lenders under $1 billion in the nation, and the Independent Community Bankers of America (ICBA) awarded the Bank one of three national community service awards.

e Freeport location grew considerably in 2018 with $45 million in loans. is growth helped propel Kennebec Savings Bank past the $1 billion mark in June 2018. e Bank as a whole nished the year with nearly $1.065 billion in assets and became Maine’s 10th-largest Maine-based bank, moving up two spots from 2017.* e Bank refurbished the historic Tappan-Viles Mansion in 2019 with restoration work to the oors, walls and other xtures. At the same time, the original bank building built in 1959 was remodeled to provide new o ce space for several departments. is involved the removal of the Bank’s original vault, requiring special heavy-duty equipment including a forklift and a crane to remove the 17,000-pound door.

Due to the success of the Bank’s rst venture into Cumberland County, the Bank expanded its services at the Freeport location in September 2019. Now employing a stand-up workstation and a universal banking approach, the Freeport branch o ers its customers a wide range of personal, commercial and investment banking services in one location.

Opposite: The Freeport location became a full branch in 2019, employing a stand-up workstation and a universal banking approach. In 2017, Kennebec Savings Bank made important upgrades to its technology infrastructure, including the acquisition of a .Bank web domain.

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

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 project at the historic Gerald Hotel in Fair eld. Built at the turn of the 20th century, the Gerald is a striking Renaissance Revival structure with a design not normally found in rural Maine, and it is one of the town’s largest buildings. It was listed on the National Register of Historic Places in 2013. e Gerald was renovated and converted to provide much needed housing for seniors, and the construction project brought jobs, increased revenue for local businesses, and added tax revenue to the local area.

In 2015, the Bank helped the Kennebec Land Trust purchase Howard Hill in Augusta by providing both commercial nancing and a corporate donation to the cause. Howard Hill, the wooded backdrop to the Maine State House, is a large and diverse natural area in the middle of Augusta. Its 164 acres include a cascading stream, steep ravines, large boulders, an expansive ridgeline with sheer cli s and a diverse wildlife habitat. e property is crisscrossed by an informal network of old carriage and woods roads that provide expansive views over the State House and the Kennebec River Valley. It had been a goal of the Kennebec Land Trust and many others to acquire and preserve this land since the mid 1970s.

Also that year, the historic Maine Chance Lodge, once a health spa owned by cosmetics pioneer Elizabeth Arden, was renovated by the Travis Mills Foundation as a retreat for combat-wounded veterans and

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. ey participate in adaptive activities, bond with other veteran families and enjoy muchneeded rest and relaxation in Maine’s outdoors. Kennebec Savings Bank provided nancing 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 eater 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.

e 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.

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.

Our People

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

e Bank also strengthened its internship program which, by 2019, o ered 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 rst named president in June 2014 and CEO in January 2015. Andrew had joined the Bank in December 1993 as a loan o cer. 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.

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.

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

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

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 signi cant involvement with the Trek Across Maine, the largest fundraising event of its kind for the American Lung Association.

e 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. ese 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 e orts to restore and expand its historic property.

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 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 nonpro ts throughout the Bank’s service area.

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

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

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

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.