SLIDES: Chelsea Groton Bank and Chelsea Groton Foundation Annual Meeting (4/17/14)

5/27/2018 SLIDES: Chelsea Groton Bank and Chelsea Groton Foundation Annual Meeting (4/17/14)

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to the Chelsea Groton Bankand Chelsea Groton Foundation

Annual MeetingApril 17, 2014

Welcome


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Ballot No. 1NEW CORPORATORS

Chelsea Groton Bank

Michael Alfultis, PhDEllen C. BrownFred A. Conti


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April 17, 2014

Chelsea Groton Foundation

Annual Meeting


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Chelsea Groton

Foundation Board

Chelsea GrotonCorporators:

Jeffrey R. GodleyEric M. Janney

Chelsea GrotonTrustees:D. Ben BenoitMary Ellen Jukoski

Chelsea GrotonOfficers:

Harry P. ColonisAnne L. OdgenZuzanna T. OlszewskiMichael Rauh

Denise T. StapienskiLaureen Tracy-DufficyLori-Ellen Wesolowski

Anne H. Wilkinson


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Chelsea Groton

Foundation Officers

Michael Rauh, PresidentEric M. Janney, Vice PresidentHarry P. Colonis, TreasurerLori-Ellen Wesolowski, Secretary


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Ballot No. 1

RE-ELECTION to the BOARD of TRUSTEES

for a Second Three-Year Term ending with theAnnual Meeting to be held in 2017


Mary Ellen JukoskiB. Michael Rauh, Jr.


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Statement of Activities2013


Fund Balance 1/1/13 $ 2,804,953Additions:

Contributions Received 206,364

Increase in Market Value of Investments 298,514Interest and Dividends Earned 29,638Realized Gains on Investments 140,229

Reductions:Grants Awarded 150,405

Administrative Expenses 7,661Income Taxes Due 9,050

Fund Balance 12/31/13 $ 3,312,582


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Grant Making

Applications received84Grants awarded64

Amount distributed$150,405


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A Sample of Grants Made

Center for HospiceCare SE CTChildren's Museum

of SE CT

Covenant Shelterof

New London, Inc.


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A Sample of Grants Made

Malta, Inc.

Southeastern Council of Alcoholism &Drug Dependence (SCADD)

OIC of New LondonCounty, Inc.


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April 17, 2014

Chelsea Groton Bank

Annual Meeting


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Officer

Promotions

Margaret H. Blundon, Vice President

Marie A. Carmenati, Vice PresidentDawn M. Day, Vice PresidentKathryn D. Alves, Assistant Vice PresidentKelly M. Burke, Assistant Treasurer


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New Officers

Michael T. Sheahan, Senior Vice President

Ishmael Bryan, Assistant SecretaryMichele Magowan, Assistant SecretaryMelissa Mercado, Assistant Secretary


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Report on Board and Corporator Activities

Chelsea Groton Bank


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Ballot No. 2ELECTION to the BOARD of TRUSTEES

for a Three-Year Term ending with the AnnualMeeting to be held in 2017

Chelsea Groton Bank

Mary Ellen JukoskiThomas R. Switz

ELECTION to the BOARD of TRUSTEES

for a One-Year Term ending with the AnnualMeeting to be held in 2015

Marilynn Malerba


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Ballot No. 3ELECTION of OFFICERS

Chelsea Groton Bank


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Agenda

Income Balance Sheet

Deposits Loans Investments

Capital 2014 Highlights


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Income

Interest Income $29,046,969

Non-Interest Income 8,632,100

Sub-Total $37,679,069

Expense

Non-Interest Expense -$27,867,173

Interest Expense -3,559,414

Loan Loss Provision 0

Income Taxes -1,502,433

Sub-Total -$32,929,020

Net Income $4,750,049

2013 Net IncomeIncome


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$4,062

$4,750

$3,000

$4,000

$5,000

17%

Increase

2012 2013

Net Income 2012 vs. 2013(000s omitted)


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Deposit Growth(000s omitted)

$598,000$647,000

$683,000$721,000

$759,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2009 2010 2011 2012 2013

+5%


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Deposit Mix

DDA13%

NOW17%

Savings &

MM45%

Time25%


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Cost of Funds

0.43

0.68 0.710.72

0

0.5

1

CGB Market Peers CT Mutuals US Mutuals


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New London County Deposits(6/30/13)

OfficesDeposits(000 omitted)

MarketShare2013

MarketShare2012 Change

Citizens 14 $783,644 18.4% 19.1% - .7%

ChelseaGroton

14 $738,016 17.3% 16.3% + 1.0%

Peoples 12 $563,173 13.2% 13.8% - .6%

Dime 10 $482,066 11.3% 11.1% + .2%

Bank ofAmerica

10$468,677 11.0% 10.1% + .9%

Liberty 9 $457,484 10.7% 10.7% NC


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537 505 507 551592

121 218 242240

244

$0

$200

$400

$600

$800

$1,000

2009 2010 2011 2012 2013

Loans Investments Other

748

808 836

932883

Assets($ in millions)

+5.5%


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Loan Growth(000s omitted)

$551,000

$592,000

530,000

540,000

550,000

560,000

570,000

580,000

590,000

600,000

2012 2013

+7.4%


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Loan Production(000s omitted)

$221,070 $223,762

50,000

70,000

90,000

110,000

130,000

150,000

170,000

190,000

210,000

230,000

250,000

2012 2013

+1.2%


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Loan Portfolio

71%

22%

5%

2%

Residential MortgageCommercial Mortgage

Commercial

Installment


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Mortgage Market ShareNew London County, CT 2013

PurchaseMortgages Re-Finance Total

# $ # $ # $

Chelsea Groton 136 26,886,000 667 90,469,914 803 117,355,914

Charter Oak 93 17,452,036 808 94,919,515 901 112,371,551

Wells Fargo 51 13,817,291 332 65,456,839 383 79,274,130

Bank ofAmerica

30 8,468,063 356 69,101,387 386 77,569,450

Citizens 66 14,487,912 404 56,443,055 470 70,930,967

Liberty 76 13,340,962 359 52,592,356 435 65,933,318

Quicken 27 6,591,783 288 56,934,617 315 63,526,400

Navy Federal 102 23,599,978 223 39,570,982 325 63,170,960

Dime 67 10,944,274 280 50,092,095 347 61,036,369


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0.00

1.50

3.00

4.50

6.00

2009 2010 2011 2012 2013

Earning Asset Yield

Cost of Funds

Net interest margin

Net Interest Margin


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Whats behind the

numbers?Chelsea Groton is an independent, mutually owned,

community bank, committed to servingEastern CT and the surrounding communities.We help our customers safely, simply, and effectively

manage their finances,

and we help make their long-term goals a reality.


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First TimeHomebuyer

Loan Product: CHFA/FHAProperty Location: Montville, CT

Property Value: $123,000Loan Amount: $112,750Downpayment: 3.5%

JumboSecond Home

Loan Product: 30 Year Fixed JumboProperty Location: Stonington Borough

Property Value: $1,800,000Loan Amount: $650,000 first mortgage

$350,000 Home equity lineDownpayment: 44%


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NewConstruction

Community BankLoan

Loan Product: 30 Year Fixed ConstructionProperty Location: Stonington, CT

Property Value: $750,000Loan Amount: $350,000

Downpayment: 53%

Loan Product: 5/1 Adjustable Rate MortgageProperty Location: Groton, CT

Property Value: $225,000Loan Amount: $175,000

Downpayment: 22%


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Thames Edge at Fairview

Chelsea Groton Banks borrowing relationship with Odd Fellows dates back to 1988. Most recently the Borrower has receivedState of CT approvals to add a Continuing Care Retirement Community (CCRC) which will be known as Thames Edge. Threeloans were underwritten in August totaling $16,742,000. These funds are being used to refinance existing CGB debt and well ascomplete construction for this project.


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Starbucks

Loan proceeds were used to construct a Starbucks Restaurant on Salem Turnpike in Norwich which opened on July

19, 2013. The Borrower currently leases the building to Starbucks; however, it is scheduled to be sold to another party

by the end of September.


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Mystic Drawbridge Ice Cream

Mik F


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Mikes FamousHarley Davidson


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Tilwell Petroleum


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Reliance House


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Asset Quality

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

4Q2009 4Q2010 4Q2011 4Q2012 4Q2013

NPL ALLL


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Non-Current Loans to Total LoansPeer Data Comparison

1.06

1.68

2.06

0

0.5

1

1.5

2

2.5

Chelsea Groton CT Mutuals US Mutuals


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Provision for Bad Debts(000s omitted)

$0

$930

$2,925$2,848

$4,498

$0

$1,000

$2,000

$3,000

$4,000

$5,000

20132012201120102009


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Investment PortfolioAs of March 31, 2013

US Agency

Corp. Bonds

MunicipalBonds

Asset Backed

Equities

CD's

Cash

Security% of

Portfolio

MarketValue

(In Millions)

US Agency 53% $132

Corp. Bonds 17% 42Equities 10% 35

Mun. Bonds 8% 20

Asset Backed 5% 13

Cert. of Dep. 3% 6

Cash 4% 10

TOTAL $258


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Investment Performance

Portfolio 1 Year 3 Years 5 Years 10 YearsSince

Inception

FixedIncome

0.2% 3.0% 3.9% 3.8% 5.7%

Equities 29.3% 18.0% 17.9% 9.9% 7.4%


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Capital($ in millions)

$114

$118

$121

$127

$134

2009 2010 2011 2012 2013


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MinimumWell

CapitalizedCGB

PeerAverage

Tier 1/TotalAssets

4.00 5.00 14.1 10.85

Total RiskBased

8.00 10.00 22.5 19.27

Minimum Requirementsand Peer Comparison

(% as of 12/31/13)


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Financial Services Revenue

20%

25%

30%

35%

40%

45%

50%

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000$800,000

2009 2010 2011 2012 2013

Recurring Revenue Fee Income Percentage


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Product MixCategory Total Principal Total Revenue

Mutual Fund $12,490,196 $351,559

Stock $7,995,262 $41,969

Variable Annuity $2,643,478 $201,200

ETF $1,535,669 $2,117

Fixed Annuity $1,180,839 $22,798

Equity Indexed Annuity $743,414 $28,406REIT $743,091 $1,077

Bond $329,074 $3,082

Fixed Annuity $235,827 $4,933

Municipal Bonds $138,660 $13,616

FEE BASED $39,945 $39,490

Broker CD $28,000 $525

Universal Life $2,663 $2,075Term Life $2,501 $867

Whole Life $1,142 $1,185

Variable Life $801 $16

Long Term Care $0 $1,036


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Risks & Concerns

Interest Rate Risk Fraud/Cyber Security

Regulations/CFPB Economy


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New Programs

New website, online banking, mobile app On-boarding, concierge Refer-A-Friend

Management Development Program 1stTime Homebuyers Document management system 160thBirthday-Acts of Kindness


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0

5

10

15

20

25

30

35

40

Recommen

dationDr

oveBy Othe

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Since

Childhood

News

paper

Co-w

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Employe

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DirectMai

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Referrals Rank #1for New Business


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Questions?????


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Time forcocktails and dinner!

Documents

SLIDES: Chelsea Groton Bank and Chelsea Groton Foundation Annual Meeting (4/17/14)