Dear Friends and Colleagues,
Despite the unprecedented challenges of 2020 and COVID-19, York Traditions Bank – now doing business as Traditions Bank - has once again realized a remarkable year of achievements, performance, and profitability. As we reflect on our 18th year of service—and our 15th consecutive year of profitability—we are humbled by the positive impact the bank has had on the people, businesses, and communities we serve. Our corporate culture of inclusivity and true cooperation laid the foundation for our team to rally together, going above and beyond for all of our customers and each other. In staying true to our core values, all of which create value for our stakeholders, our associates worked collaboratively to provide flexible solutions to our clients, build real relationships, and contribute to the success of our communities.
Performance
In 2020, Traditions Bank experienced our most profitable year to date, with assets reaching $641 million and Return on Assets climbing to 1.38%. Fueled by the SBA Paycheck Protection Program, residential real estate lending, and construction financing, net loans increased by $53 million. Deposits soared, increasing nearly $108 million to $567 million.
Traditions Mortgage
Traditions Mortgage celebrated a decade of service and remains the number one overall residential mortgage lender in York County for the seventh year running. As of December 31, 2020, we closed 2,145 loans, surpassing last year’s record total, with an unprecedented $493 million in financing. This represents $12.5 million in gains on sale, almost 275% of 2019 results.
Shareholder Value
Shareholder value increased approximately 15% year over year with tangible book value of $20.72 per common share of stock as of December 31, 2020, an increase of $2.72 per share from prior year. We announced a one-time, special dividend of 40 cents per common share payable on March 29, 2021.
Support Through the Pandemic
Through a collective team effort, including representatives across all departments of the bank, we deployed more than $51 million to help preserve more than 6,000 local jobs through the Paycheck Protection Program. The bank also provided temporary loan payment deferrals to customers impacted by COVID-19.
Always with the safety of our associates and customers top of mind, we remained open for business by offering exquisite service through the drive-thru - and even the parking lot - when it was necessary to temporarily close our lobbies, and we educated our customers on digital banking solutions.
Technology Enhancements
We launched numerous digital products to enhance customer experience and improve efficiency and security, such as Zelle®, digital payments (Apple Pay/Google Pay/Samsung Pay), Real-Time Alerts, an interactive website chat feature, online account opening, and digital document signing. We also introduced or refined many internal digital capabilities while our IT team simultaneously met the fluctuating tech
needs of remote workers to ensure services never ceased. Our community deserves the best from us and we are not going to let them down.
Community Commitment
Traditions Bank associates tracked over 2,000 volunteer hours with 100 community organizations. The bank donated more than $300,000 to nearly 150 nonprofits across Central Pennsylvania, which included funds to support area educational improvement organizations. Community support has surpassed $2 million since the bank’s inception. In lieu of our annual customer appreciation lunches, a creative 18 Years, 18 Days of Giving program was launched, donating $1,000 a day to area nonprofits and highlighting their good work. Our customers are our friends and neighbors, and we will always be there for them.
We advanced our Diversity, Equity, and Inclusion focus by continuing work on the bank’s DEI policy and plan, establishing bank-wide training, and enhancing awareness and appreciation of diverse cultures and customs.
Growing for the Future
A company’s performance is only as strong as its people, and to support our future growth, we made some key hires and promotions in 2020.
Thomas Sposito II joined our Executive Management Team as Strategic Revenue Officer, and Patricia Martin’s new title of Managing Director of Human Resources and Organization Development elevated her to an Executive Management Team member as well. The Her Traditions strategic plan took shape, beginning with the addition of Nicole Shaffer as Director of Her Traditions. And Hans Abendshoen was recruited for the new role of Retail Sales Manager.
The bank proposed the formation of a holding company, Traditions Bancorp, pending shareholder approval at the April 19, 2021 Annual Meeting. And we announced the opening of our first Lancaster County office in January 2020. After a temporary delay, construction on our Oregon Pike location was completed in March 2021. Read more about our Lancaster expansion on page 10.
The year 2020 saw Traditions Bank and our associates rise to unforeseen challenges, respond nimbly, work tirelessly, and demonstrate real resilience in the face of a global pandemic. Remaining steadfast to our mission, beliefs and culture, our bank gave back to a community that has given so much to us. As we embark on 2021, we are poised for continued success. The strength of this organization is due largely to the unwavering support of our stakeholders, and we wish to express our sincere gratitude to each one of you.
Michael E. Kochenour Eugene J. Draganosky Founder & Chairman of the Board President & CEO
Board of Directors
(seated left to right)
Wanda D. Filer, M.D. - Chief Medical Officer, VaxCare / Founder, Strategic Health Institute / Family Medicine Physician
William J. Shorb - VP & CFO, HOLLA Spirits, LLC
Michael E. Kochenour - Founder & Chairman of the Board, Traditions Bank
Eugene J. Draganosky - President & CEO, Traditions Bank
Elizabeth F. Carson - Retired Banking Executive, Community Leader
(standing left to right)
David L. Bode, CCIM, SIOR - Managing Partner, ROCK Commercial Real Estate, LLC
Robert F. Lambert - President, York County Libraries
R. Eric Menzer - President, York Professional Baseball
John D. Brown - Consultant, Financial Investor
Kevin J. Schreiber - President & CEO, York County Economic Alliance
John M. Polli - President, Reliance Student Transportation, LLC
In a year of great uncertainty, Traditions Bank is fortunate to have been able to rely on the consistent leadership of our board of directors who supported us every step of the way. We thank you for your wisdom, dedication, governance, and counsel as we worked to anticipate the needs of our clients and communities, and help create solutions for their success.”
Executive Management Team
Eugene J. Draganosky President & CEO
John D. Blecher, CPA Founder, CFO and COO
Teresa L. Gregory, DBA President, Traditions Mortgage
Michael E. Huson Managing Director, Business Services
Patricia A. Martin Managing Director, HR and Organization Development
J. Mark Poliski Chief Credit Officer
Thomas J. Sposito II Strategic Revenue Officer
Bradley A. Willow Managing Director, Personal and Private Banking
Srategic Leadership Team
Suzanne M. Becker Director of Marketing and Communications
Susan M. Campbell Director of Training and Development
Joseph Lombardi Director of Information Technology
Justin Mann Treasurer
Vickie Chronister Director of Operations
Linda Senft Director of Regulatory Services
Elizabeth Dellinger Director of Treasury Management
Nicole Shaffer Director of Her Traditions
Bonnie Gyenes Director of Accounting
Keith Sheffer Director of Loan Administration
Traditions Bank is committed to remaining a thriving, independent organization, delivering value to our shareholders, and realizing our vision to be the true local bank of choice across our markets.
FOR FURTHER DETAIL, REFER TO THE 2020 ANNUAL REPORT OR VISIT IR.TRADITIONS.BANK
