Community Concepts Financial Corp Annual Report 2018

Fiscal Year

2018 REPORT

Marking 17 Years of Economic Growth In Southern and Western Maine

2018 REPORT Welcome

Welcome

to

Community

Concepts

Finance

Corporation’s Annual Report for fiscal year 2018. It was a year of change and growth for the organization, especially with our staff. Our Vice President of Lending moved on to a great position in Mechanic Falls and Natalie Beale was promoted to be our new Loan Underwriter. Jennifer Boenig also joined the staff as the office manager.

CCFC has with other organizations to achieve this goal in this report.

At CCFC, “We believe all Individuals, Families and Communities can be Financially Secure” and all the programs we offer make this our top priority. If you’d like to directly help and support our work, you can make a tax-deductible donation and decide how your dollars will be used. We could use your donation

We’re proud to say for the fourth year in a row, we

for our revolving loan pool to support the business

were Maine’s SBA Microlender of the Year. Statewide,

community or for the homeownership center to help

more than $1.46 million in SBA Microloans were made

people become homeowners. We could also use your

with more than half or $841,000 made by CCFC.

donation as matching dollars to access other local,

With ongoing support from our lending partners and

state and federal funds.

funders, we can continue to have a significant impact in western Maine.

Please take a moment to look over the programs and clients featured in this report to learn more about the

Our Homeownership Center helps people achieve

impact CCFC has in the community and how you can

their financial goals and puts them on the path to

help.

homeownership. Our staff works with hundreds of people every year and you’ll learn more about these

Yours in Service,

programs in this report.

CCFC staff also continue to focus on economic

Glen E. Holmes

development in Oxford County and a major area of focus is improving broadband service and access. You’ll learn more about the planning grant and partnership

2

PRESIDENT

Economic Development

Town?

Title?

Access to affordable, high speed

County that are part of Maine

successful in receiving a grant

broadband is quickly becoming

West and encourage greater use

from the Stephen and Tabitha

the most critical infrastructure

of computers in this region. Axiom

King

of our time, just like electricity,

Technologies of Machias, Maine,

public access computers in public

transportation,

to

upgrade

roadways

the consultant for this project,

libraries in Maine West towns.

were early last century. And, digital

developed a plan for each town

To complement these initiatives

literacy skills are needed to take

to enhance and promote more

the Adult Education Centers that

full advantage of this access.

advanced broadband and expand

serve northern Oxford County are

broadband service to unserved

offering more computer classes.

Through

the

and

Foundation

Maine

West

collaborative, a Betterment Fund initiative,

the

Northern

Forest

Center in partnership with CCFC received a planning grant from

areas. CCFC is working with each town to help implement its plan and

improve

local

broadband

service.

CCFC and the Northern Forest Center

continue

to

explore

additional funding opportunities to increase digital inclusion and

the State of Maine’s broadband

To help make it easier for residents

digital literacy skills for Maine

agency, the ConnectME Authority,

and visitors to connect to the

West residents and businesses and

to assess the current status of

internet three wifi hotspots will

expand and improve high speed

broadband

broadband infrastructure.

and

be installed in downtowns in

demand for high speed broadband

infrastructure

the Maine West region. And,

in 27 towns in Northern Oxford

the Northern Forest Center was 3

Total Portfolio

$9,632,719

$3,267,227.00

$

Business Lending

$6,365,492.00

Residential Lending

Community Concepts Finance Corp.

Audited Statement of Financial Position FY18

FY17

Assets

TOTAL ASSETS

$5,280,143.10 $14,557.28 $8,486,817.42 $13,781,517.80

$5,540,760.87 $27,073.76 $7,562,277.95 $11,388,501

TOTAL LIABILITIES

$1,363,880.27 $8,069,330.25 $9,433,210.52

$1,599,379.20 $7,345,886.05 $8,945,265.25

$4,348,307.28

$4,184,847.33

$13,781,517.80

$13,130,112.58

Current Assets Property & Equipment Other Assets

Liabilities Current Liabilities Non Current Liabilities

Net Assets TOTAL LIABILITIES & NET ASSETS Statement of Financial Position* *FY 18 unaudited FY 17 CPA BerryDunn 4

FY 2018 By the Numbers

Total Business Lending

Business Technical Assistance

69 Business Loans statewide totaling $2,581,825 SBA Microlender of the Year

Honored for the 4th year in a row!

327 business owners received more than 1,600 hours of assistance from business advisors.

Homeownership Center 625

184

43 Loans totaling $841,001 communicate

broadband infrastructure

modern

information

users

Northern Forest Center study

growth

improve expansion

The homeownership center also provided more than 1,450 hours of pre-purchase, credit and foreclosure counseling services.

Total Residential Lending

variables

Economic Development

accessible seminars

understand

Northern Oxford County

e�cient

planning

statistics

Homebuyer Education Participants New Homeowners Created

analytical development

number connectivity

13 first and second mortgages = $262,657 2 USDA 502 loans = $309,576

5

Business Lending

Oxford Residential Lending Offers India Chance to Afford Safe, Pat Paine, the owner of Pat’s Hot Tubs

few months — faster than Pat thought

workforce. Natalie Beale, also from

& Pools was renting a building on Rt.

possible!

CCFC, contributed her expertise on how

26 in Oxford, but as her business grew, the space — unfortunately — could not. Then, Pat and her husband David noticed a For Sale sign posted on a nearby, appropriately sized building.

Their first call was to the seller. Their second

call

was

to

Community

Concepts Finance Corporation (CCFC), the small business support arm of Community Concepts (CC) that had helped one of their former employers through a rough patch. Purchasing the building would only be the first step toward a new home for their business. In order to open the doors a new furnace, new fixtures and a significant remodeling project would be required. A partnership between the

Paines,

Norway

Savings

Bank

and CCFC resulted in a blueprint for expansion, financial backing and a new storefront grand opening within only a 6

Once the new location was up and running the next steps, expanding their market and working more efficiently to pay for the upgrade, became the couple’s first priority. Again, CCFC was there with an experienced business advisor, Kevin Smart, to consult on new

to interview, how to make a job offer, the structure of workman’s comp and initiating standards for dress code, time off and break time. CCFC also referred Pat to a payroll company, which saves time and money by removing mundane tasks from her plate.

advertising and marketing campaigns

Getting CCFC involved early on helped

while

office

turn the expansion of Pat’s Hot Tubs &

functions such as bookkeeping and

Pools from a potential struggle into a

labor relations.

smooth transition, with guidance from

also

reviewing

back

With the new building and better signage, Pat’s experienced growth in customer traffic and sales, which in turn brought about the need for more staff.

A series of classes on hiring recruitment and retention, hosted at the Oxford

project conception to completion.

Now, the budding business has two loans — one with CCFC and one with Norway Savings — both of which will which be refinanced in a few years when it qualifies for traditional financing.

Casino by The Oxford Hills Chamber

With the help of CCFC and Norway

of Commerce and the Central Maine

Savings, Pat and David are ready to

Human Resource Association, started

swim in the deep end!

Pat down the road to creating a stable

FMI on Pat’s Hot Tubs & Pools stop in at 894 Main St., Oxford or call (207) 539-6047 and on the web PatsHotTubsandPools.com

Natalie Beale Natalie Beale is a Loan Underwriter at CCFC, where she analyzes loan applications based on financials, risk, feasibility and community impact. Beale graduated from the University of Southern Maine, with bachelor’s degrees in Leadership & Organizational Studies and Social and Behavioral Science, both of which have contributed well to her lifelong entrepreneurial spirt and active community engagement. Prior to becoming an Underwriter, Beale was a Business Advisor with CCFC working with clients on social media and print marketing, record keeping, business plans, cash flow analysis, hiring, training and more. Beale, who promoted to Underwriter in 2018, obtained the American Bankers Association Certificate in Business and Commercial Lending alongside completing various Neighborworks Training Institute courses in community economic development, underwriting and financial analysis.

7

Business Lending

Portland Residential Lending Offers Individuals a Chance to Afford Safe, Healthy Housing One person with passion and a valuable

high quality bagels spiked upward, Paul

Finance

skill can start a small business. Then,

boosted production by expanding into

subsidiary of Community Concepts.

with luck and hard work, that small

a Cumberland Avenue location. Soon,

Paul met with CCFC Business Advisor

business will grow. But building a

folks began walking in and asking for

Kevin Smart to explore everything from

business demands new and different

bagels — then they wanted toppings on

marketing, financing and accounting

skills, which a budding entrepreneur

them — plus coffee. Before long, Paul,

—

may lack. And that is where the

who had not envisioned opening a

development, income and expense

resources available from Community

storefront, was the owner of a busy and

flows, plus many of the other topics

Concepts Finance Corporation (CCFC)

popular bagel shop. Early last year, Paul

that a small businessman must master

can make the difference between

decided that the Cumberland Avenue

to succeed.

struggling

of

space was too small to accommodate

smoothly

an increase in both cafe seating and

growth

or

with

the

challenges

transitioning

toward a mature business model.

Paul Ferrell, the owner of Union Bagel in Portland, began wholesaling bagels out of the Portland Public Market six years ago with no plan to enter the retail market. When demand for his

bagel production. He opened another location in a building he owns on Veranda Street with the intention of moving production over there, while simultaneously attempting to buy the building on Cumberland Avenue. There was a lot on Paul’s plate.

With

his

complicated,

expansion Julie

Viola, Paul’s Business Banking Gorham

Manager Savings,

recommended he look into

the

available

assistance through

Community Concepts 8

business

and

(CCFC),

a

workforce

“I worked closely with Paul in assessing his financial picture”, says Kevin. “We recently completed a deep dive into his finances for the past six years, so that in addition to understanding his operational practices, Paul now has a comprehensive picture of his business from a financial perspective, including an

understanding

of

his

starting

financial picture, and how growth and

plans becoming more

at

to

Corporation

expansion activities have affected that picture.”

Paul has learned a lot through this process, because, as he says, “I came into this knowing how to make bagels, not necessarily how to manage a business.” Kevin and Paul are now delving into how the changes in hiring laws, both from the State of Maine and

the City of Portland, will affect new hiring policies designed to build and retain a solid work force.

Later this year they plan to assess how best to expand into new markets and what affect that will have on operations.

With the help of financial and technical assistance from CCFC, Paul’s path to expanding his bagel business is now more like a walk in the park than a trek over a mountain.

FMI on Paul and Union Bagel Company, call 207-699-8264 or email unionbagelco@gmail.com

Kevin Smart Kevin Smart is a Business Advisor with Community Concepts Finance Corporation. Before joining CCFC in 2016, he spent 11 years in the banking industry, working in management, mortgage and consumer lending. He also has 20 years of experience in nonprofit management and spiritual counseling. Kevin is a Certified QuickBooks Desktop Pro Advisor and helps businesses with budgeting, development, staff training, operations oversight and strategic planning.

9

Homebuyer Education

Home Buyer Education and Housing Counseling with Melissa Green of Community Concepts, Vice President of Client Services Community

a

person. After the on-line course is

Score and strategies to keep a home

Homebuyer Education course open

Concepts

offers

completed, there is a 1-on-1 session,

threatened

to anyone with $30 and an interest

usually conducted over the telephone,

individual meetings of 2 to 4 sessions

in learning the “nuts and bolts” of

to clarify reasons and incentives for

often happen after a client has taken

successfully purchasing a first home.

purchasing a home, as well as forging

the Home Buyer Course. Counselors

Offered to residents of Franklin, Oxford

connections to make the dream of

are available in-person in Lewiston

and Androscoggin counties, the class

home buying a reality. Lots of folks

or South Paris, or on the phone. The

is taught by a “neutral” guest presenter

who take the course decide the timing

phone meetings can happen during

in a one-day session, usually on a

may not be right, or that there are more

a client’s lunch break, or after dinner,

Saturday. Many loan applications and

boxes to check off before they feel

allowing for flexibility with the client’s

support resources — such as Maine

comfortable buying a home — always

schedule.

Housing’s Advantage Program, which

a good thing to know before jumping

different goals depending on what the

qualifies participants for a $3,500 grant

into a 30-year mortgage.

client has in mind, with accountability

towards down payment and closing costs — require the Home Buyer Education Certificate, which is awarded upon completion of the course.

For

folks

scheduling

with

transportation

conflicts

that

Community Concepts also offers PrePurchase Counseling where clients

by

An

foreclosure.

Action

Plan

These

creates

steps to follow like a road map and support from the counselor.

meet with a housing counselor to

Buying a first home can be difficult,

create an Action Plan, which lists and

Community Concepts gives people the

and

prioritizes the steps to becoming a

knowledge — and power — to succeed,

make

home buyer. Topics in the Action Plan

no matter what the home ownership

attending an all-day Saturday course

include

goal.

difficult, Community Concepts offers

budgeting, tips for saving money,

an

improving on or establishing a Credit

on-line

course

costing

$99/

understanding

cash

flow,

FMI on ccfcmaine.org or phone 207-333-6419 or email homequest@community-concepts.org 10

Board of Directors Mark Samson With over 30 years of banking experience, Mark is the current President of Dirigo Federal Credit Union. He joined the credit union in 2012 as Executive Vice President of Lending where he directed a highly successful period of loan growth, product diversification and institutional advancement. Mark oversees business development, loan portfolio growth, portfolio risk management, loan pricing, product development and sales, and adherence to policy and procedure.

Prior to joining Dirigo Federal Credit Union, Mark was the Senior Vice President/Senior Retail Lending Manager at Mechanics Saving Bank. Mark is a graduate of Lesley University and holds a Bachelor’s of Science in Business Management. Mark is an active participant in the community and currently serves on the Finance Committee for Community Concepts and on the Saint Dominic’s Academy Finance Committee. Mark is a former Maine State Legislator, Maine State Housing Commissioner, Androscoggin County Budget Committee member and Auburn Youth Hockey coach.

Mark is a lifelong resident of Lewiston-Auburn and currently resides in Auburn with his wife Marie and two children: Connor and Callie.

Lincoln Jeffers Lincoln Jeffers is the Economic and Community Development Director for the City of Lewiston. He has worked to create and promote economic development in Lewiston since 2000. During his tenure the city has had more than $665 million invested in economic development projects that have created 3,275 new jobs and retained 1,400 jobs. More than 3.3 million square feet of new retail, restaurant, office, medical, warehouse and commercial space has been built or rehabilitated. Lincoln received a bachelor’s degree in sociology from Middlebury College, and has completed graduate work in economic and community development at the Muskie School of Public Service.

Between Middlebury and Muskie, Lincoln spent a decade in Breckenridge, Colorado working in a variety of industries and small businesses.

Travis Travis joined Augusta-based Kennebec Savings Bank in June of 2018 as Vice President, Commercial Banking Officer having previously interned there as a college student. Previous to that, Travis worked for the Bank of New Hampshire as well as Androscoggin Bank for over five years in a similar capacity, having started in their credit department as a Commercial Credit Analyst before moving into commercial lending. Travis obtained a Bachelor’s degree in Business Administration from the University of Maine in Orono and an MBA from Thomas College in Waterville. In addition to the CCFC Board, Travis also serves on the Board of two central Maine non-profit organizations, both which serve the needs of children. Travis lives in Readfield with his wife, Danica, and their two daughters, Adalynn and Lillian. When not in the office, Travis and his family can often be found outside exploring all of the natural beauty Maine has to offer.

Christopher Paradis Christopher Paradis has more than 35 years combined experience working in the private and public sectors.

He has held a number of different positions of responsibility over his professional career with stints in the banking, lighting, refractory metals and higher education industries for such companies as People’s Heritage Bank (TD Bank), Philips Elmet, Philips Lighting USA, Elmet Technologies, and the Maine Community College System. His board work includes serving nine years as a Director and Chair for the Maine International Trade Center as a Governor’s appointee and he currently is a member of the Community Concepts Inc. board.

Paradis is also an active member and Past President of the Auburn Maine Rotary Breakfast Club and is an avid outdoors recreational enthusiast. He holds a B.S. in Business Administration from the University of Maine and a M.S. in Business Management from Husson University. Christopher joined CCFC’s board in 2017.

11

Thanks to all our supporters!

Financial Institutions Bangor Savings Bank Camden National Bank Dirigo Federal Credit Union Evergreen Credit Union Franklin Savings Bank Gorham Savings Bank Katahdin Trust Company

Government Agencies Machias Savings Bank Norway Savings Bank SIS (Sanford Institution for Savings) Bank Skowhegan Savings Bank TD Bank University Credit Union

CDFI (Community Development Financial Institutions) Fund CHAPA Citizens Housing and Planning Association

HoMEworks Maine BCCP (Bureau of Consumer Credit Protection) Authority

Partners AVCOG Androscoggin Valley Council of Governments

of Commerce

Mahoosuc Land Trust

SCORE

Fryeburg Business Association

Maine Preservation

Southern Maine Planning & Development Council

Bethel Area Nonprofit Collaborative

Granite State Development Corporation

MaineStream Finance CDFI

Bethel Chamber

Greater Bridgton Lakes Region Chamber of Commerce

Biddeford Saco Area Economic Development Corporation

Norway Downtown Oxford Hills Chamber of Commerce

Jay Livermore Chamber of Commerce

Envision Rumford Four Directions Native CDFI

LA Metro Chamber of Commerce

New Ventures Maine Northern Forest Center

Greater Franklin Development Council

CEI (Coastal Enterprises Inc.) CDFI

Franklin County Chamber

Maine Woods Consortium

River Valley Chamber of Commerce SBA Small Business Development Centers

Western Maine Community Action

Foundations & Nonprofits Maine Community Foundation The Betterment Fund The Sandy River Charitable Foundation

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To explore your personal mortgage options, stop by your local branch or call 1.800.284.5989.

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Mortgage loans are available to qualified applicants who meet the Bank’s current loan guidelines for owner-occupied residential properties in New England. Available for loans up to $453,100.

For loans with less than a 20% down payment, escrow for taxes and property insurance is required (including flood insurance, if applicable). Additional restrictions may apply. See tax advisor regarding deductibility of interest and charges. NMLS ID #483424. 1Visit www.northeastbank.com/hero for a full list of eligibility criteria. 23% down payment limited to fixed-rate mortgages.