Financial Reports
To Our Corporators, Customers, Staff, and Neighbors
Since 1852, it has been the bank’s mission to serve the needs of our customers and our communities. We are neighbors within the community who care, not just about our customers’ financial success, but also about the strength and health of our communities and the people within them. Our mission to provide Exceptional Service Without Exception, is known by every employee, and sets us apart from the hundreds of competitors in the financial services industry. This mission sends an important message to the public, and is part of the product we deliver. Exceptional Service Without Exception cuts through all the noise and gets straight to the bank’s passion and vision. It is how we approach each customer and each decision. It is the reason we have been successful in the past, and why we will continue to succeed in the future.
Customers, both new and old, continue to seek the Exceptional Service our employees provide, pushing our total deposits to a record $1.1 billion. By the end of 2024, the total number of checking accounts grew to 24 thousand, surpassing the total number of savings and time deposits combined, while balances in those checking accounts grew to $527.8 million. Continued growth of checking accounts is important, as the checking account is the cornerstone of a full banking relationship.
The bank’s total assets grew to $1.4 billion, while our loan portfolios grew by $29.8 million to finish the year at $826.7 million, both record levels for the bank. In 2024, customers continued to turn to Bath Savings to finance their homes and businesses allowing the bank to originate $289.1 million in new loans. Loans to individuals, which include home mortgages, were 44% of that total while our business and municipality lending totaled 56% of our production.
In 2024, the bank posted Net Income from Operating Activities of $10.9 million, which was just $300 thousand less than 2023. The variance again is due to the decrease in our net interest margin, as interest paid to our depositors grew faster than interest we received from our loan and investment portfolios.
Trust fees account for 77% of our other income, as managed asset fees totaled $9.6 million causing total noninterest income to grow by 14% ending 2024 at $12.4 million. Operating costs increased by 3.2% and totaled $32.0 million for the year.
Customers continue to choose Bath Savings Trust Company to manage their financial assets. By the end of the year, the Trust Company managed 2,914 accounts, pushing the total financial assets we manage for our clients to a record $1.8 billion. Our clients value the personal service and proven investment strategies individually designed for performance and protection. Clients were pleased with another outstanding year of financial performance, and even more pleased with the unmatched level of care, respect, and individual attention they receive.
The market value of the bank’s equity securities portfolio improved net of taxes by $4.8 million in 2024, so net income for 2024 totaled $15.8 million.
As a mutual organization, all our earnings are kept as Capital Reserves and Undivided Profits. The strength and safety of a bank is reflected in its Capital, and in 2024 our Capital totaled nearly $189.6 million, 13.5% of total assets. This ratio is a measure of a bank’s strength and safety, and at the end of December our capital ratio was again more than twice the amount the FDIC would require to be designated as “well capitalized.”
At Bath Savings, we believe it is important to be a good neighbor and support our local communities. In 2024, the bank contributed $773 thousand to hundreds of nonprofit groups in our region. In addition, last year our employees supported their communities by providing over 4,400 volunteer hours to nonprofit and charitable organizations, both during and after business hours.
2024 was also a year of change for our Board of Trustees. In February, Sandra Morrell Rooney retired from our Board after 19 years of service. Then in June, our Chair of the Board, John W. Voorhees retired after serving 15 years as a Trustee and 7 years as Chair. We thank both Sandy and John for their years of service and contributions to Bath Savings. Fortunately, both are now Honorary Corporators and will continue to support the bank in that role.
In July, Kevin T. Burns was elected Chair of the Board. Kevin has been a Corporator since 1999, and has been a member of the Board since 2011. Also in July, William T. Racine of Bath was elected Vice Chair. Bill has been a Corporator since 1990 and a Trustee since 2014.
We were honored to be named as one of the Best Places to Work in Maine by the Best Company Group, an independent workplace research firm. This marks the 11th consecutive year we have received this designation. In addition, Newsweek named Bath Savings one of America’s Best Regional Banks, one of only two Maine banks to receive this honor. We were also named Best Bank in the 2024 Times Record Best of Midcoast poll.
These awards and recognition are because of the Exceptional Service delivered every day by our team of 170 employees who strive to improve our customers’ lives through financial advice, service, and products. I am proud to collaborate with this team of talented and caring professionals who genuinely care about our customers, the bank, and each other. I thank them for their continued efforts in building and maintaining loyal customer relationships. Together, we will always deliver the Exceptional Service that sets us apart.
Sincerely,
Glenn L. Hutchinson, President & CEO