President's Message

Edward L. Hennessey, Jr.

This year we have seen interest rates drop to levels that most of us would not have believed.  This was great for those of you who purchased new homes or refinanced your existing mortgage but devastating to those who depend on interest on their savings to supplement their income.  Some of our depositors have depleted a portion of their savings to survive over the past year.

We have seen some of our borrowers struggle to make their payments for the last two to three years.  Some have lost high paying jobs and have replaced those jobs with unemployment or with lower paying jobs that do not provide them with sufficient income to make ends meet.  Even though we have worked hard to help these borrowers, our foreclosures have increased to a level several times higher than the mid 2000’s. 

The economy in our area has not been good and although the national economy is showing signs of continued improvement those signs have not reached here.  Our natural resources are our back bone and the only shining star has been the lobster fishing industry.  Many of our lobster fisherman have experienced one of the best years ever with prices being very strong throughout the year.  Our logging contractors have struggled for the last several years.  However, if the weather cooperates and temperatures drop, the prices and demand at year end look promising.  The blueberry harvest was below average but the price almost doubled from 2009 which is excellent for Downeast Maine.  The potato crop was above average and for those farmers that had not presold their crop, it was a great year.  The Christmas wreath season was above average and provided much needed jobs to Downeast Maine.  Another very positive sign is the increased bookings statewide for the lodging industry.

Day in and day out, providing exceptional banking experiences is our focus – in every relationship, in every product developed, in every service rendered and in every promise made.   Being exceptional isn’t a new concept for Machias Savings Bank, it’s what we’ve always been.  In the coming year, Machias Savings Bank will be increasing its market presence and presenting a new updated image.  We are excited about our newly formed Business Services Department which will allow our bank to provide specialized services which have not previously been available to our business customers. We are confident  we can provide exceptional business related services and do it better than our competitors, ultimately increasing our market share.  To further increase our market presence, we plan to open a branch in Brewer in the spring of 2012 and this will be our Business Services Department headquarters.  While several of our competitors are focusing their efforts on Southern and Western Maine, our primary focus will be Coastal Maine, Downeast Maine, and from Bangor and Brewer north.

Machias Savings Bank has fantastic employees who volunteer their time in the communities they call home.  In 2010, over 2,074 volunteer hours were logged, of which 95% was devoted to promoting financial literacy. Our focus for the future is to look for opportunities for growth, however, our roots will always be in Downeast Maine.  We pledge that we will always be known as the bank that provides the most exceptional banking experience for its customers.  Thank you, our valued customers, for your continued support.

 

Edward L. Hennessey, Jr.

President & CEO

December 31, 2010

 

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