2021 Annual Report

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I can’t pretend that 2021 hasn’t been an emotionally draining year. But at the same time, the fact that the Bank has been healthy and successful enough to lend a helping hand to nonprofits like the four featured in this report, is very uplifting. Not everybody gives back. Philanthropy, even at the smallest level, is a learned skill, but it’s something that can bring joy. When I was a young banker, an early mentor of mine talked to me about the importance of the United Way and the social safety nets of our society. He impressed upon me the importance of giving to the United Way, and I’ve been a huge fan ever since.

Andrew Silsby President & Chief Executive Officer KENNEBEC SAVINGS BANK

I had the honor of chairing the United Way of Kennebec Valley’s campaign just as they expanded to serve all of Kennebec County. Historically, the campaign might grow by 1% or 2% each year, but I thought we could do better. I challenged the United Way board to set the goal at 5%, and although they were a bit skeptical, they ultimately agreed. We then came up with the KSB High Five Challenge — the Bank would match, up to $25,000, the increase of any donor who raised their gift by 5% or more. A majority of companies answered our challenge, and to our surprise, we were able to increase this year’s campaign by an astounding 18%! So, it does work when local people vouch for the organization and say, ‘We all need to lean in and


Dear Friends,

support this cause.’ A lot of helping hands — large and small — can make a huge difference.

People who work in a bank tend to value service and have helpful personalities, so giving back is an important part of our corporate culture. Whether it’s showing up for fundraising events, serving on corporate boards, sharing available office space, or even baking dog treats, you’ll find Kennebec Savings Bank employees lending their hands, time, and talents to all kinds of community causes.

From lending a hand to guide our business customers through the PPP loan program and forgiveness process to lending our financial strength and expertise to frontline workers and nonprofits serving our most vulnerable neighbors, I’m proud to say Kennebec Savings Bank had a strong and successful year. We opened many new deposit accounts, and with this substantial growth, we were well positioned to meet unprecedented loan demand. It’s been very rewarding and has at the same time increased our profitability — which means we make a little more, so we’re able to do more for the community. We will continue to give back because it is at the heart of what we do, in good times and bad, for more than 150 years.

A Spotlight on Giving Back The last two years of the pandemic have been hard — the hardest many of us have ever known. But generations of Mainers have survived hardship before the same way we are learning to get by today: by pitching in and lending a hand to help one another — especially the most vulnerable in our communities. That’s been part of the mission and philosophy of Kennebec Savings Bank since our founding in 1870. As a community bank, Kennebec Savings Bank is a mutual organization. That means we don’t have individual stockholders. Through our Community Dividends program, we give the money that would go to stockholders back to our communities. In 2021, we donated nearly $1.1 million across the 35 communities we serve.

How KSB Helps


Communities SERVED

In 2021, our ability to give back — not just financially, but as creative problem solvers and business partners — became more important than ever. It wasn’t just the smart thing to do financially and economically, it was the right thing to do. And, for our employees, who put in thousands of volunteer hours, it was the chance to make a real difference for a personal cause, close to home and close to the heart. In this Annual Report we are pleased to spotlight four local nonprofit organizations (and KSB employees) that are changing lives, building communities, and creating connections to meet the challenges of today and open up the opportunities of tomorrow. We are proud to partner with them and with all those who believe, as we do, that helping others get through even the toughest times starts with lending a hand.


Organizations Supported

$1,100,000 Donated

Kennebec Savings Bank is honored to be the Independent Community Bankers of America (ICBA) 2021 Exceptional Community Bank Service Award recipient. The Bank was recognized with the national award for our response to the COVID-19 pandemic. When the pandemic hit, local nonprofits and small businesses needed support – and fast. We moved quickly to help food assistance programs that were working to meet unprecedented need, local theaters forced to close their doors, chambers of commerce that didn’t qualify for Paycheck Protection Program (PPP) loans, volunteer literacy programs that needed tablets for remote learning, and more. Our employees volunteered thousands of hours while processing $75 million in PPP loans and helping customers navigate new challenges.

in our case to youth and family. It makes a big difference for people in how they do their local business.”

Ken Walsh

CEO Alfond Youth & Community Center


“It gives people a sense of community when your local bank is giving back —

Alfond Youth & Community Center KEN WALSH, CEO “There are many ways that KSB employees have volunteered. In some cases they’ve rolled up their sleeves and helped hand out meals, like at our Thanksgiving event, in which we served over 1,500 hot meals. Others serve on our Board of Directors or committees. Dave Roy, who has been with Kennebec Savings Bank for many years, serves on our Steering Committee for the ice rink campaign. They give that professional expertise that a lot of nonprofits could use. What I love about the culture of Kennebec Savings Bank is that through Andrew’s leadership, there’s almost an expectation of community involvement, of civic engagement. Andrew himself leads that way — by being the chair of the campaign of the United Way, he’s showing it by example. When I sit down and talk to Andrew about prospects for the Board, he leads me to thinking about who in the community could be helpful, and who in the Bank could really be supportive. I think it’s part of their blood in regards to the essence behind the KSB culture, and they prove it. Some people can talk about it, but KSB is proof in the pudding.

We built a mini Fenway Park, the only licensed Fenway Park in the country, back in 2007. KSB was a major leadership donor, which helped us get Major League Baseball, the Red Sox Foundation, and the Cal Ripken Tournament — the Iron Man of baseball — to attend the dedication. The effect of KSB being involved with projects is long lasting. So here we are, because of what they helped us build, hosting a World Series. And who would have ever thought the World Series would be in Waterville, Maine? So it’s pretty cool to see how it’s a complete circle of support and helping us build a foundation for moving forward with our projects — and growing and getting better.”

“Having grown up here, and having raised my children here, I had a great childhood and took advantage of some of the programming that these organizations had to offer. I would like to use my position to help better the community from a social standpoint and also from an economic standpoint. I’d love for my kids to come back here and have the opportunity to do the same thing I did — work, live, and raise a family. It really is a great area. Like many communities that relied on manufacturing, we’re having to reinvent ourselves. And this is all part of it.”

Dave Roy Senior Vice President & Chief Risk Officer Kennebec Savings Bank

trying to do more to help people find appropriate housing, and when these two properties that KSB helped us with were coming on the market, we wanted to move quickly, because if we lost those, where would those families go? One is a family of seven and one is a family of ten. Where would they go?”


“During the pandemic we started really looking at our housing program and

Chris Myers Asch

Efrain Ferrusca

Co-Founder and Executive Director Capital Area New Mainers Project

Property Manager Capital Area New Mainers Project

Capital Area New Mainers Project CHRIS MYERS ASCH, CO-FOUNDER & Executive Director “We work with local landlords to find properties where they’re willing to offer below-market rents to the refugee families we work with, who are primarily from Iraq and Syria. They have big families. When you have eight to ten people in a family, you need a bigger place, and bigger places are more expensive. That’s why we started our Better Housing Program — to help refugees find affordable, appropriate housing. During the pandemic, some of the properties we had been renting were going on the market, which would displace several refugee families. We saw the opportunity to purchase the properties to keep the families there. That’s when we approached Kennebec Savings Bank. They were very supportive. Kennebec Savings Bank is full of creative problem solvers. Craig Garofalo is the kind of guy who wants to make things happen. His approach is: ‘This is something we want to do, so we will figure out a way.’ And we did. They provided us with a good financing deal and matched our down payment for the two properties with a donation. Their support allowed us to start to build up the funds to purchase more properties, renovate them, and move a refugee family into better housing.

We’ve been with Kennebec Savings Bank almost since we started five years ago. We opened our first bank account with Kennebec Savings Bank, and that very first year they gave us a small donation to help us get started. Everybody there is very friendly and helpful, but Craig, in particular, has been a wonderful guide who has helped us think through different issues, especially in terms of housing. He has helped us figure out what makes sense fiscally and explore what options we have available. So it’s not just about a generous grant, although we appreciate that very much. It is also about the support, encouragement, and guidance that Craig and Kennebec Savings Bank have provided.”

“The thought of helping folks get a start and be given a fair chance motivated us — we know we’re in a good spot to help. Through our strong lending expertise and our commitment to community giving, we were able to find creative ways to do more and help the organization succeed in their efforts. It is truly exciting and rewarding to say ‘This is somebody doing great work in our backyard and we can help them meet a need and do great things for our community.’ It solidifies what community banking is — finding those creative ways to help folks out.”

Craig Garofalo Executive Vice President, Chief Operating Officer & Chief Loan Officer KENNEBEC SAVINGS BANK

support from our bank, certainly the dollars you donate every year and your banking support — you’re our bank! We love banking with you — but also that commitment of volunteer time. We have people who are willing to serve, lead, and represent us in a way that is just really impactful.”

Hillary Roberts Executive Director KENNEBEC VALLEY Humane Society


“I so appreciate that we have such a long-standing history of financial

KENNEBEC VALLEY Humane Society HILLARY ROBERTS, Executive Director “We had our first in-person event in a pretty long time in the spring, which is an outdoor dog walk called the Mutt Strut. We’ve been doing this event for many years, but seeing KSB put together a team led by Amanda Cooley and Erin Bechard — two women I respect and appreciate — feels really good, especially when you’re trying to do something after you haven’t done it for a while and wanting to get it right. I just love the support. I love the fact that we know that the Bank is going to show up for us. We’ve been working on our Capital Campaign, and we began our fundraising during the pandemic. It was a choice that we made because we need to, but there are certainly obstacles to that. Kennebec Savings Bank committed a $250,000 gift to our campaign, which is a leadership gift. It’s a really significant amount of money, and at the point they made their commitment I had two other leadership gifts, so they were there at the very beginning. The Bank was one of the first to say, ‘We’re going to join you in this because we know it’s important, we know it matters, we know you need it.’ There are other folks who sometimes say ‘We’re going to wait and see who else makes a commitment and when you reach a certain level call me back’, and that is not what I heard from KSB. It was very ‘Yes! We’re going to be there for you. We know that this is vital to the future of your organization.’ And to make a gift of

that size, for us, really solidifies this is a partnership that is truly meaningful, and I think will be for a very long time. We’ve had a number of KSB employees that have served on our board, and I have always appreciated that because it’s wonderful to have financial minds and community leaders that serve. Board members take on a pretty big responsibility; It’s a commitment of time, and in most cases, our board members are also supporting us financially. Erin Bechard serves on our board right now as secretary. She’s such a great example of a person who’s there for all the right reasons. The mission really matters to her, it’s very, very clear — in her free time she bakes dog treats to bring to our dogs.”

“I’ve always had a soft spot for animals. I first started out working at the shelter as a volunteer. I did that for a few years and it was really rewarding, and then I wanted to get more deeply involved and do more, so I joined the Board and I’ve been serving three and a half years now. The Bank has been wonderful. They are fierce advocates of community support and involvement in particular by encouraging and supporting employees getting involved in volunteer opportunities that really mean something to them. At the end of the day, volunteering for something that’s important to you and tugs at your heart strings, is beneficial for all.”

ERIN BECHARD Assistant Vice President & BSA Officer Kennebec Savings Bank

that is exactly what Kennebec Savings Bank is.”



“When I think of the term ‘community partner’ in its purest sense,

UNITED WAY OF KENNEBEC VALLEY Courtney Yeager, Executive Director “In March of 2020, Andrew was the first person to call me, at the onset of the pandemic. He called my cell phone at 7 a.m. and said ‘Courtney, what is United Way doing? Whatever you’re doing, Kennebec Savings Bank will be the first one to donate.’ We had just decided the day before to launch what we were calling a COVID-19 Response Fund for the region, which was intended to raise money outside our typical fundraising season to support nonprofits. We knew they were going to be super hard hit and were already experiencing some of the fallout. Kennebec Savings Bank contributed the first $10,000 to the COVID-19 Response Fund, the seed money for that effort, and we ended up raising about $247,000 over the course of a few months. We had a lot of people give their government relief checks, in full, to this effort, and we had several other businesses follow KSB’s lead in contributing to us. It was obviously a very difficult time but also a really heartwarming time to see our entire community come together. The fact that Andrew picked up the phone, made that first call, and said ‘Courtney, whatever you need,’ was so meaningful to me and life changing for some of our nonprofits. It prevented some of our nonprofits from closing their doors. Our relationship with KSB has always come with a ton of manpower in the form of volunteers. We usually have two or three KSB employees volunteer for our

annual allocation process, which impacts dozens of nonprofit programs every year, so we can responsibly allocate United Way funding. We also have several KSB employees in our Emerging Leaders Society, which combines philanthropy with volunteerism; Those folks are giving back to our community and are the next generation of local leadership, in my mind. More recently, we’ve had a few people from KSB join our Diversity, Equity, and Inclusion committee because they recognize the importance of that work. And we’ve always had leadership from KSB on our Board of Directors. Jess Norton is our most recent past chair and our incoming treasurer. Basically, if we ever need volunteers, we know we can count on KSB. I think that’s in large part due to the Bank’s encouragement of volunteerism among its employees — it’s embedded in the culture and even their policies. Employees are able to do a certain amount of volunteerism during the workday, which is really rare — we don’t see that very often. Kennebec Savings Bank takes corporate social responsibility as a concept very seriously.”

“It’s opened my eyes to where the need is, and also where all of the help is coming from. I’ve been involved with the United Way through their allocations process and how they determine where the funds are sent and spent, and I have total confidence that they are good stewards of my donations and are very thoughtful and caring with where the money goes in our community. Kennebec Savings Bank is a huge part of the success of this community, and everybody knows that. Organizations come to us and ask for our help, and I think our name is very much synonymous with community support and doing the right thing.”

Jess Norton

United Way of Kennebec Valley

Vice President & Deposit Operations Officer Kennebec savings Bank

BOARD OF DIRECTORS Bill Sprague, Chairman Norman S. Elvin Mary A. Denison Christopher L. Gaunce

Charles W. Hays, Jr., Vice Chairman Amy P. Tardiff Mark L. Johnston

Andrew E. Silsby, Clerk Diane F. Hastings Douglas E. Reinhardt

In 2021, Christopher L. Gaunce was elected to the Kennebec Savings Bank Board of Directors. Under his leadership as president and owner, Central Maine Motors Auto Group, the company has grown to become one of the most successful auto groups in the state with a strong reputation for community support. With deep roots in the Waterville region, Christopher is active in the Central Maine Growth Council and several other nonprofits throughout the region.


On March 5th, 2021, Kennebec Savings Bank announced our successful merger with Kennebec Federal Savings — a community bank which had been serving the greater Waterville community since 1936. Like Kennebec Savings Bank, Kennebec Federal Savings was well known for their personal approach, excellent customer service, and strong commitment to the community. The decision to merge was many months in the making and the result of a great deal of due diligence and counsel. By coming together as one institution under the Kennebec Savings Bank name, we are able to offer enhanced products, services, and a new convenient branch location, all with the very same commitment to our customers and community. As a community bank, the economic health and vitality of our region is at the heart of everything we do. Both

Kennebec Federal Savings and Kennebec Savings Bank had been serving the people of Waterville for decades, and had been equally committed to providing a superior customer service experience focused on personal relationships. Both banks had strong reputations for being deeply involved with nonprofits and charitable causes to support the growth and prosperity of our region. We believe that is why our customers choose to bank with us. The completion of the merger expanded our presence in the Waterville area with the addition of a new location at 11 Washington Street. Additionally, we welcomed all 21 employees from Kennebec Federal Savings to our team. With deeper roots in Waterville, we are positioned to do more for our customers and community, which is at the foundation of everything we do.

Allan Rancourt, President of Kennebec Federal Savings, ended his career with the completion of the merger. Allan worked for Kennebec Federal Savings for 44 years and was known for his exceptional customer service and dedication to the greater Waterville community. Allan was well respected by his peers and a true “old-school banker.” Upon his retirement, Allan stated: “I’ll miss it terribly. I’ll miss the employees. I’ll miss the customers coming in. But 44 years — it’s time for someone else to come to the plate, and I’m so happy it’s Kennebec Savings Bank, because they’re an excellent, excellent community bank.” Congratulations, Allan, on your retirement and exceptional banking career.

Corporators P. Nicholas Alberding James W. Bass Laura J. Benedict Brian S. Berry John D. Blouin Dr. Mark E. Bolduc Michelle A. Bragg Christine M. Brawn 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 Kevin T. Dono Daniel J. Dubord Timothy M. Dunham Jordanne Dunn, DMD Matthew W. Dwyer 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 Gary L. Hammond 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 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 Chelsea B. Moeller Robert M. Moore Stacey L. Morrison L. Michael Murphy Lisa L. Newell Anita M. Nored Mary Kathleen O’Halloran Tobias R. Parkhurst Gary R. Peachey Daniel S. Petersen Gregory R. Piper Donald J. Plourde Matthew G. Pouliot Rebecca J. Pushard Allan L. Rancourt Michael 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 Amy P. Tardiff Jonathan R. Tardiff Eben A. Thomas

Matthew L. Walters Thomas G. Warren 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 David A. Cosgrove Maurice G. Fortin Thomas E. Foster Carole T. Fryover Moira H. Fuller Robert C. Hutchinson Roger J. Katz Dr. H. Winston Kipp Warren C. Kessler Peter E. Meulendyk Mary L. Morrison Leo J. Murphy Michael A. Napolitano, Jr. Richard D. O’Connor Raymond D. Pepin Carolyn B. Perry Reginald E. Perry William H. Perry Joan Phillips-Sandy Douglas E. Reinhardt Jack D. Smart Susan S. Thomas Peter G. Thompson Thomas A. Trafton Leo J. Violette Sumner A. Webber, Sr. Dorothy S. Weeks

Kennebec Savings Bank Officers Andrew E. Silsby, President & Chief Executive Officer Craig J. Garofalo, Executive Vice President, Chief Operating Officer & Chief Loan Officer Christine M. Brawn, Sr. Vice President & Chief Human Resources Officer Kevin T. Dono, Sr. Vice President & Chief Information Officer Debra A. Getchell, Sr. Vice President, Chief Financial Officer & Treasurer David A. Grenier, Sr. Vice President & Chief Commercial Banking Officer David J. Roy, Sr. Vice President & Chief Risk Officer Gail P. Conley, Regional Vice President & Director of Investment Services Rene M. Couverette, Regional Vice President & Project Manager David M. Eldridge, Regional Vice President & Commercial Banking Officer William S. Hill, Regional Vice President & Loan Officer Michelle L. Richardson, Regional Vice President & Senior Residential Lender Amos M. Byron, Vice President & Trust Officer Matthew W. Dwyer, Vice President & Loan Officer 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 & Deposit Operations Officer Paige A. O’Donnell, Vice President of Retail Banking Nicolas G. Patenaude, Vice President & Assistant Treasurer Angela B. Robbin, Vice President, Regulatory Counsel, CRA & Senior Compliance Officer D. Mark Stebbins, Vice President & Senior Credit and Appraisal Analyst Tracy L. Warren, Vice President & Loan Officer Julie A. Armstrong, Asst. Vice President & Loan Officer Erin N. Bechard, Asst. Vice President & BSA Officer Jennifer L. Bechard, Asst. Vice President & Managing Human Resources Officer Jean M. Conway, Asst. Vice President & Senior Financial Analyst Amanda L. Cooley, Asst. Vice President & Community Engagement Officer Amanda M. Dodge, Asst. Vice President, Branch Manager & Loan Officer Laura M. Hayward, Asst. Vice President & Director of Account Management Heather O. Knowles, Asst. Vice President & Controller Carol L. Payne, Asst. Vice President & Vendor Management and Security Officer Benjamin A. Weymouth, Asst. Vice President & Technology Officer Mary A. Hammond, Human Resources Officer Tamara R. Hillman-Tardiff, Loan Officer Anthony W. Rhoades, Loan Officer Lydia M. Tuttle, Collections Officer

Kennebec Savings, MHC, Parent of Kennebec Savings Bank Consolidated Summary Balance Sheet & Consolidated Summary 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

Year Ended

Year Ended





Statement of Income Interest on Loans

Year Ended 12/31/21

Year Ended 12/31/20





Interest and Dividends on Investments



Total Interest Income







Interest Paid on Deposits




Interest Paid on Wholesale Funding









Net Interest Income








Provision for Loan Losses Other Operating Income Security Gains/(Losses) Operating Expenses
















Total Interest Expense


Earnings Before Income Taxes Income Taxes Net Operating Income





















Unrealized Holding Gains/(Losses) on Equity Securities, net of tax Net Income *Unaudited



3,710,560 $15,479,694

AUGUSTA (207) 622-5801 FARMINGDALE (207) 588-5801 FREEPORT (207) 865-1550 WATERVILLE, Main Street (207) 872-5563 WATERVILLE, Washington Street (207) 873-3539 WINTHROP (207) 377-5801 WWW.KENNEBECSAVINGS.BANK