2021 ANNUAL REPORT
Forging a New Path Forward
MEMBER FDIC
Keeping in step with our clients and the times. Dear Clients, Colleagues and Friends: If 2021 taught us anything, it’s that to be successful, we have to always be looking ahead and be ready to respond to the changing needs of our clients and our communities. As the pandemic continued on, we stayed one step ahead of it by expanding our business offerings, forging new partnerships and providing additional support to our clients and communities. Times and circumstances change, but one thing that doesn’t change is our commitment to servicing our clients to the best of our abilities. The past year was no exception. We opened our new branch in Stoneham to meet the growing needs of that community and we revamped NBTC.com to ensure that our clients always have quick and easy access to the information they need. When it comes to our commitment to continuous improvement, these are just a couple of examples. Every day, you can count on us to show up and be ready to do our best. On behalf of everyone at Northern Bank, thank you for your business and support. We’re looking forward to exploring new opportunities to help our clients, employees and communities grow in 2022 and beyond. JAMES MAWN President & CEO | Northern Bank
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Staying true to our mission. At Northern Bank, we believe that helping entrepreneurs build a successful business helps build a stronger, more vital community for us all. That’s a philosophy we’ve put into practice for over 60 years. Our business was founded and built by entrepreneurs, who, when they discovered a traditional bank wouldn’t lend them money, decided to start a bank of their own — a bank that would support the entrepreneurial spirit of the community.
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WHERE WE STARTED
Founded in
1960
by two entrepreneur brothers
Growing steadily and consistently over time.
WHERE WE ARE TODAY
32,000+ business and
individual customers
$2.87B
230 employees
13
branches
WHAT WE’VE ACHIEVED
290%
$733M
asset size increase in 10 years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 December 2011 – December 2021
34.3% employees with
a tenure of 5+ years
$2.87B total assets —
financially sound
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2021 Statement of Condition 2021 (in thousands)
2020 (in thousands)
$4,936
$5,388
426,745
239,958
67,220
67,196
Equities
1,305
1,318
Loans Held For Sale
3,927
11,770
2,291,659
2,188,393
(40,346)
(37,700)
2,251,313
2,150,693
Premises and Fixed Assets
34,289
32,622
Other Assets
80,172
72,360
Total Assets
$2,869,907
$2,581,305
Non-Interest Bearing Deposits
$820,023
$578,407
Interest Bearing Deposits
1,649,509
1,659,956
1,698
4,553
Other Liabilities
34,608
32,032
Total Liabilities
$2,505,838
$2,274,948
$600
$600
Surplus
133,495
133,495
Undivided Profits and Capital Reserves
233,483
175,485
(3,509)
(3,223)
$364,069
$306,357
$2,869,907
$2,581,305
Outstanding Standby Letters of Credit
$4,932
$5,348
Pledged Securities
60,881
65,987
Market Value – Securities
67,220
67,196
Book Value – Securities
67,520
65,353
Net Impact on Stockholders Equity
($216)
$1,389
ASSETS Cash and Balances Due from Depository Institutions Noninterest Bearing Balances and Currency and Coin Interest-Bearing Balances Securities Available-For-Sale Securities
Loans and Leases, Net of Unearned Income Less: Allowance for Loan and Lease Losses Loans and Leases, Net of Unearned Income and Allowance
Liabilities
Borrowings
Equity Capital Common Stock
Accumulated Other Comprehensive Income Total Equity Capital Total Liabilities and Stockholder’s Equity
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Innovating and expanding to serve our customers better and faster. In 2021, we redesigned our website, NBTC.com, and opened a new branch in Stoneham to better serve our customers.
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STONEHAM NOW OPEN
New Stoneham Branch Northern Bank has always had strong ties to Stoneham’s thriving business community, so it only made sense that we established our newest bank branch in the center of town, along Route 28. The branch is our 13th location and features a modern design that has set a new benchmark for future branch buildouts. To celebrate our grand opening, we launched a multichannel marketing campaign to introduce our branch to the Stoneham community and give local residents and businesses a quick look at all we had to offer. The campaign included exclusive rates and savings, along with a local business gift card giveaway, with two winners being drawn every month for a year. The Stoneham branch team and everyone at Northern Bank is committed to serving the Stoneham community with a full suite of banking products and services.
“ Everyone here is excited about expanding our relationships with the people and businesses of Stoneham.” JOE TODISCO Stoneham Business Development Manager, AVP
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New NBTC.com Making life easier for our clients has always been a priority.
ATM & Branches Locator Tool. We rehauled our locations
In 2021, we redesigned our website to make it more user
page to make it as quick and easy as possible to find the
friendly and easier to find information.
nearest branch or ATM near you.
Here are a few of the new features that are saving our clients
Learn Section. We introduced a new blogging feature that
time and making banking with us even more convenient.
includes the latest updates, tips and helpful insights from our
Alerts and Updates. We added an Alert Bar at the top of our
team of experts.
homepage, so that you don’t have to go far to find breaking news, service levels at our branches, holidays and more. 8
Supporting Entrepreneurs and championing small businesses. At Northern Bank, we recognize the passion and dedication it takes to start and manage a small business. Founded by entrepreneurs over 60 years ago, we understand our small business clients’ goals and challenges. That’s why we proudly positioned our business to offer more U.S. Small Business Administration (SBA) loans in 2021 and beyond. In 2021, we were named the top lender in Massachusetts to small businesses in the accommodations industry, by the SBA. More than 33% of all our SBA loans went to local restaurants, which make up a significant portion of the accommodations industry. From food trucks to fine dining, we are proud to partner with all restauranteurs and all entrepreneurs who contribute so much to the health and wellbeing of our local communities.
“ Northern Bank came in and saved the day. We were contacted in April and funded in July. The bank really did its due diligence on Crumbl Cookies and I really appreciate that. And, the follow-up customer service is great anytime I go into the Melrose branch.” JESSICA GARIANO Co-Owner, Crumbl Cookies, Saugus, MA 2021 SBA Loan Recipient 9
Small Businesses Spotlight We make it a point to celebrate the success of our small business clients whenever we have the opportunity. For National Women’s Small Business Month in October, we highlighted several of our women-owned small business clients in our “Women Wednesday” social campaign. We also recognized their contributions on our website and created a billboard honoring client, Ruth Agbaji, CEO of Code Wiz, who received the SBA Women Owned Business of the Year award in 2020. In November, we celebrated National Entrepreneur’s Day (November 15th) all month long, with a campaign that included “Take Charge Tuesday” and “Think Big Thursday” featuring inspirational and informational social posts targeted toward our entrepreneur clients. We also added special call outs on our website for the month and produced a billboard encouraging local residents to participate in Small Business Saturday, November 27th.
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Through donations and volunteerism, Northern Bank & Trust continued to focus its efforts on fighting homelessness in our communities in 2021. We strengthened our relationship with Heading Home, a nonprofit agency that works to end
Reducing homelessness and hunger in our communities.
homelessness. Through our charitable foundation, we donated $110,000 to Heading Home and partnered with Northern Bank employees to host volunteer events and donation drives for homeless families. Through his service on Heading Home’s Board of Directors, Northern Bank President and CEO, Jim Mawn, provided the nonprofit’s staff with strategic real estate and financial thought leadership. In December 2021, Heading Home dedicated one of its emergency shelters and transitional housing centers to Northern Bank volunteers.
“ Jim and his team have been stalwart supporters of Heading Home for years, but especially in response to the COVID-19 pandemic and its impact on our vulnerable clients.” DANIELLE FERRIER CEO, Heading Home Northern Bank President and CEO, Jim Mawn, and Heading Home CEO, Danielle Ferrier, celebrate the dedication of a Medford, Massbased homeless shelter to Northern Bank volunteers.
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All 2021 Donations Heading Home
$100,000
J. McKeown Boys & Girls Club Woburn
$50,000
National Brain Tumor Society
$25,000
Ron Burton Training Village
$22,000
She4She — Heading Home
$10,000
J. McGarry Scholarship: Luke Witherell
$5,000
Mystic Valley Elders
$2,500
Mission of Deeds
$10,000
Merrimack Valley Housing Partnership
$10,000
YMCA
$10,000
Nashoba Learning Group
$2,500
Minuteman Seniors
$2,500
YMCA — Melrose
$3,000
Ron Burton Training Village
$12,500
TOTAL
$265,000
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Impacting local communities. In 2021, we awarded $265,000 in donations to 11 non-profits. The grants align with our other commitments to combat hunger, provide humanitarian services to low-income families
Actively Volunteering to Shelter Local Families Northern Bank once again teamed up with Heading Home to help a local family move from a homeless shelter into new, permanent housing. Bank employee volunteers cleaned, set-up furniture, shopped and decorated a new home for the displaced family. Dozens of Northern Bank employees donated household items, gift cards and cash, making it a true team effort.
and invest in financial literacy.
Giving Highlights $5,000 Scholarship Through our charitable foundation, we continued its support for the James E. McGarry, Jr. Scholarship, which was established in 2014 and honors the late “Jim” McGarry, Jr. of Woburn for his 50 years of service to Northern Bank and his lifelong affinity for local fire and police departments. Littleton High School senior, Luke Witherell, was this year’s recipient of the $5,000 award that goes to a student with outstanding achievement in academics and community service. The student must also have a parent or legal guardian who is
Northern Bank employee volunteers team up with Heading Home
an active firefighter or police officer employed in Middlesex
to help a local displaced family move into permanent housing.
County. Luke met all the criteria and more, and now attends Chatham University, where he is pursuing a career in the medical field.
Northern Bank volunteers recently helped a local family move from a homeless shelter into a new apartment.
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Littleton High School graduate, Luke Witherell, was awarded
Before and after pictures of a room furnished by Northern Bank
the 2021 James E. McGarry, Jr. Scholarship.
volunteers using donated items.
Planning for future needs. In 2022, we continue to execute a multifaceted
“ It is great to work for a company that truly believes in giving back to the communities it serves. We are given the time we need to volunteer for causes that we are passionate about and I know that it’s very much appreciated across the bank.”
approach to fight homelessness while simultaneously addressing the community’s
JOANNE FISHLIN
most pressing needs.
Compliance Manager, AVP | Northern Bank Employee Since 2014
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NBTC.com NMLS ID 472275
MEMBER FDIC