Regardless of a difficult yr for banks that noticed rates of interest rise and mistrust develop after Silicon Valley Financial institution’s collapse, Bangor Financial savings Financial institution netted practically $42 million in revenue through the previous fiscal yr and can debut a brand new location and its first-ever bank card suite later this yr.
Between March 2022 and April 2023, Bangor Financial savings Financial institution’s belongings grew to greater than $7.4 billion – a 7.1 % enhance from final yr — and netted an revenue of practically $42 million, in accordance with Bob Montgomery-Rice, Bangor Financial savings Financial institution’s president and CEO. The financial institution’s loans additionally jumped 19 % to $4.7 billion by April 2023.
Whereas the financial institution’s $42 million income marked a slight lower from the $49.8 million it gained between April 1, 2021, and March 31, 2022, Montgomery-Rice stated the drop doesn’t signify any vital decline in enterprise. As a substitute, the pandemic-driven federal loans that had been getting paid again resulted in above-average earnings that the financial institution wouldn’t count on in a regular yr.
“The PPP loans had been getting paid again, and that was vital one-time income that occurred over two years,” he stated.
Bangor Financial savings additionally opened three new places through the previous fiscal yr in Boothbay Harbor, Bar Harbor and Manchester, New Hampshire. The corporate plans to open one other location in Kennebunk within the fall.
With the brand new places, the 171-year-old firm boasted greater than 1,000 workers throughout 68 branches and 5 enterprise and mortgage manufacturing places of work throughout Maine, New Hampshire and Massachusetts as of June. Collectively, they serve greater than 260,000 prospects.
Bangor Financial savings’ ABLE Profit Checking, a program the financial institution launched final yr that helps people with disabilities lower your expenses by means of checking accounts, completed the fiscal yr with greater than $2.7 million in deposits and 500-plus members. Montgomery-Rice stated Maine is the primary state within the U.S. to supply such a program.
“That’s nearly $3 million greater than individuals would usually have to enhance their lives,” Montgomery-Rice stated. “We hope different states undertake the mannequin as a result of serving to people who find themselves in that state of affairs is essential.”
Bangor Financial savings additionally opened practically 300 new accounts with its Profit Promise program, which launched final yr and helps individuals who have fallen out of or by no means entered the banking system because of horrible credit or a big life occasion.
“When somebody is outdoors the monetary system, life is more durable and extra expensive,” Montgomery-Rice stated. “It’s not good for people and it’s not good for the financial system.”
Except for opening a checking account and saving cash, Gena Canning, Bangor Financial savings’ chair of the board, stated the Profit Promise program helps people with disabilities achieve monetary stability and independence.
The corporate additionally labored to increase its Buoy Native rewards program by integrating it with the Bangor Financial savings Financial institution Debit Mastercard. This system permits cardholders to earn loyalty factors for patronizing the greater than 1,600 native companies concerned in this system.
“No different card within the nation does that,” Montgomery-Rice stated. “It incentivizes individuals to buy regionally.”
Trying forward, Montgomery-Rice introduced Bangor Financial savings will launch its personal bank card suite, “everblue,” for enterprise prospects and people later this yr. Enterprise bank cards might be obtainable later this month and everblue playing cards for shoppers will debut in July.
Regardless of the aggressive housing market, pushed partly by restricted housing inventory, the financial institution helped greater than 2,000 prospects safe $778 million in residential loans between April 2022 and March 2023, $703 million of which had been purchases.
The financial institution additionally offered 66 group improvement loans, totaling greater than $107 million, to assist 425 inexpensive housing models.
Alongside its successes, Montgomery-Rice stated the corporate additionally skilled a brand new problem of buyer unease and mistrust following the abrupt collapse of Silicon Valley Financial institution. It led Bangor Financial savings workers to reassure prospects that their cash was protected and safe.
“Each time there’s instability within the banking system, all banks must cope with it,” Montgomery-Rice stated. “There was a confidence challenge. We had been by no means in danger, however we wanted to ensure individuals understood that.”