2018 Annual Report and Statement of Condition

Page 1

2018 Annual Report and Statement of Condition

Issued: March 2019

Member FDIC NMLS :ID 472275

Colleagues, customers and friends: It’s an inspiring time at Northern Bank. The past year was one of new partnerships, continued growth and meaningful community involvement. We’re pleased to outline some of those successes in our 2018 Annual Report. As you’ll see, your confidence and loyalty have enabled great things. On behalf of everyone at Northern Bank, I’d like to thank you for your unwavering support—and express my excitement for what’s to come in 2019. Stay True,

James J. Mawn, President & CEO



In life and in business, everyone has a true north. A passion, a driving force. It makes us who we are. But day-to-day responsibilities, especially finances, can cause people to lose sight of their goals. We opened our doors nearly 60 years ago to help handle our customers’ financial needs and ensure they focus on what matters most to them.


Since then, we’ve remained privately owned and have maintained an eye for opportunity. We make decisions quickly but take the time to truly understand our customers. With our insight, they’re able to better stay on course—their course—and, always, Stay True.



1031 Exchange Business Loans

2018 Banky™ Award awarded to the top 1% of community banks in America

Cash Management Merchant Services

How we help

Mobile Banking Online Banking

What started as a bank for entrepreneurs has grown into a full-service partner. We’ve honed our business and personal banking suites to guide our customers at every stage of their financial journeys.

2018 Readers’ Choice Award for Community Bank


Deposit Accounts Home Loans Mobile Banking Online Banking

5-Star Bauer Rating 06


Cash Management We get that no one starts a business to focus on the banking and finances. So, to help business owners simplify their back offices, we expanded our cash management team in 2018. Our services include:


Information Reporting

Fraud Protection

Stay on top of your business’s account activity and balances with our online banking solution. View historical and same-day account information. Export balance and transaction information in a variety of formats. Then, import this information into your accounting system or create the reports needed to help manage your business.

Protect your accounts against fraud with online solutions that put the power of approval in your hands. With our Positive Pay product, you can view and detect potentially fraudulent check and electronic payments. You can also require approval for all wire or electronic payments with our business online banking solution.

Faster Incoming and Outgoing Payments


No matter how you get paid—cash, check or card—you’ll be covered by services like mobile check deposit, remote deposit capture, merchant services, lockbox and same-day ACH (Automated Clearing House). You’ll also be able to save time making payments with ACH payments, bill pay or wire transfers.

Through changing markets and regulations, we can provide insight and solutions based on your portfolio objectives.


2018 Statement of Condition December 31, 2018

ASSETS Cash and Balances Due From Depository Institutions: Noninterest-Bearing Balances and Currency and Coin Interest-Bearing Balances Securities: Available-for-Sale Securities Equities With Readily Determinable Fair Values Not Held For Trading Loans Held for Sale Loans and Leases, Net of Unearned Income Less: Allowance for Loan and Lease Losses Loans and Leases, Net of Unearned Income and Allowance Premises and Fixed Assets Other Assets

In thousands $ 5,885 121,847

49,760 1,195 3,804

1,885,647 29,890 64,281 $2,162,309

$ 1,792,253 $ 316,532 1,475,721


118,465 25,289 1,936,007


600 41,495 186,904 (2,697) 226,302 $ 2,162,309

EQUITY CAPITAL Common Stock Surplus Undivided Profits and Capital Reserves Accumulated Other Comprehensive Income


$2.16 B

Northern Bank Total Asssets







$ 1,909,814 24,167

TOTAL ASSETS LIABILITIES Deposits in Domestic Offices Noninterest-Bearing Interest-Bearing Other Borrowings Other Liabilities

Steady Growth

Outstanding Standby Letters of Credit Pledged Securities



______________________________ James J. Mawn, President & CEO Securities are recorded at market value and the difference between market value and book value, $49,760,000 and $50,342,000 respectively, is shown net of taxes as a decrease of $440,000 to stockholders’ equity. This statement has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.



The Northern Bank Charitable Foundation is a huge part of who we are. Through it, we support non-profits and community organizations in Middlesex County. Our efforts focus on hunger relief, housing, education and expanded youth and social services to assist some of our most vulnerable neighbors.

McGarry. It provides $5,000 to a local, college-bound student whose parent or guardian is a police officer or firefighter.

The Foundation also funds a scholarship in the name of long-time employee Jim

The following figures represent our major donations for the year.

In 2018, the Foundation provided over $200,000 in contributions, ranging in size from $1,000 to $50,000, to more than 30 organizations.


Heading Home: We teamed up with New England running back Sony Michel and 98.5 The Sports Hub to launch “Taking it to the House.” For every New England touchdown scored during the 2018-2019 season, we donated $1,000 to Heading Home and their fight to end homelessness. The final donation—capped off by Sony’s championship-clinching goalline plunge—totaled an amazing $62,000.



James L. McKeown Boys & Girls Club of Woburn: As part of a five-year, $250,000 pledge, we helped with the completion of their new Clubhouse, a program that offers sports, arts and crafts and other activities that foster fun and growth.



$37,000 Heading Home: For three families living in shelters, we sponsored their moves into

National Brain Tumor Society: Our donation helped to fund research, education and patient support programs.

apartments, finished with new furniture.



$25,000 Area Food Banks: We worked with multiple food banks in our communities to help feed the hungry.

Habitat for Humanity of Greater Lowell: We helped with the renovation of an affordable


home in Billerica for a lowto-moderate income family.

Nashoba Learning Group: Our support helped fund the school’s programs for kids and adults with autism.



Organizations supported in 2018


Food Pantries

Youth and Social Services

Acton Community Supper and Food Pantry | Bread of Life | Cor Unum Meal Center | Council of Social Concern | Loaves & Fishes | People Helping People Reading Food Pantry | Sudbury Community Food Pantry | Sunshine Gals | Westford Food Pantry Melrose Farmers Market

Boys & Girls Club of Greater Billerica | Hope Sudbury James L. McKeown Boys & Girls Club of Woburn Nashoba Learning Group | Waltham YMCA | YMCA of Metro North | YMCA of Reading

Housing Assistance

Education and Financial Literacy

abitat for Humanity of Greater Lowell | Heading H Home Inc. | Mission of Deeds | Merrimack Valley Housing Partnership Inc.

Budget Buddies | Goodnow Library | James McGarry Scholarship | Junior Achievment | Minuteman Senior Services | Mystic Valley Elders | Town of Chelmsford Scholarship | Cristo Rey High School


Our Team These are the faces of some pretty exceptional people. From their passion for service to their entrepreneurial mindset, our leadership team embodies what Northern Bank stands for. Everything we do starts with them.



James Mawn, Esq. President & CEO

Donald Queenin Executive Vice President

Francis Kenney Executive Vice President & CFO

Raymond Clark Executive Vice President


Joseph Bellino Board Member

Danielle Black Board Member

James Brown, III Board Member

Brandon Kelly Board Member

John Martini Board Member

Russell Mawn Board Member

Mary Elizabeth Mawn-Ferullo, Esq. Board Member

Alicia MawnMahau, Esq. Board Member

Robert McCrensky Board Member

M. Catherine Riley, Esq. Board Member

Fred Salvucci Board Member

John Sullivan Board Member


Headquarters 275 Mishawum Road Woburn, MA 01801 800-273-6908

Our Locations Our footprint spans Middlesex County. If you live here, then there’s a good chance we aren’t far away. Plus, Northern Bank Direct, our online division for certificates of deposit and money market accounts, is available nationwide at NorthernBankDirect.com.




414 Massachusetts Ave Acton, MA 01720

265 Great Road Littleton, MA 01460

45 Main Street Westford, MA 01886






Woburn Center

482 Boston Road Billerica, MA 01821

514-516 Franklin Street Melrose, MA 02176

303 Main Street Woburn, MA 01801






Woburn Main Office

600 Main Street Reading, MA 01867

275 Mishawum Road Woburn, MA 01801






Woburn West

430 Boston Post Road Sudbury, MA 01776

215 Lexington Street Woburn, MA 01801



13 Center Street Burlington, MA 01803

14 Littleton Road Chelmsford, MA 01824 978-256-1552



Member FDIC NMLS ID: 472275

nbtc.com 800-273-6908