Published on : 6/25/2024
Bangor, ME – Bangor Bancorp MHC and its subsidiary Bangor Savings Bank announced its Fiscal Year 2024 (FY24) results today. The report was released at yesterday’s Annual Meeting of Corporators.Amid a challenging macroeconomic environment, Bangor Savings Bank continued to uphold its 172 years of navigating change to meet the financial needs of its stakeholders. The Bank grew total loan production by $1.1 billion, bringing the total for the last five years to over $9 billion. It also expanded its customer base, welcoming over 22,500 new customers. This resulted in the creation of over 33,000 consumer deposit accounts, including 6,000 business accounts.
As the industry’s pandemic-era deposit surge receded, fiscal stimulus ended, and interest rates significantly increased, the Bank’s deposit balances totaled $5.5 billion at the end of FY24. Due to this transition, the Bank earned a net income of $15.3 million. With intentional runoff and right-sizing of the Bank’s investment portfolio and targeted loan production, the Bank’s total assets decreased by 2.6% from the prior year to $7.2 billion.
As a mutual community bank, staying consistent with its roots of helping people achieve homeownership, the Bank provided $450 million in residential mortgage loan production, even in a higher rate environment and low housing inventory. This supported 487 first-time homebuyers and connected buyers to various down payment assistance programs. Additionally, the Bank’s commitment to small business lending was recognized with two notable awards: the top SBA 504 Lender in Maine and the top SBA Underserved Community Lender in New Hampshire. These accolades reflect the Bank’s continued advancements in providing valuable and trusted services to meet the credit needs of Northern New Englanders.
The Bank’s core non-interest income lines of business delivered strong year-over-year results. Expanding upon its business banking solutions, the number of business clients using the Bank’s payroll and HR services grew to 4,700, and customers processed more than $1.3 billion in sales volume using the Bank’s merchant solutions. Within Bangor Wealth Management and Bangor Wealth Management of New Hampshire LLC, successful new business efforts and a team of experts building personalized strategies led to a $300 million increase in client assets, a 13.0% growth, bringing total assets under management to $2.7 billion.
With a sound balance sheet, thoughtful loan production, and healthy core business operations, the Bank remains well-positioned for continued investments in differentiated financial products and offerings to drive sustained profitability and growth, and enhance customer experiences. This approach is recognized through the Bank receiving the highest score in the New England Region in the J.D. Power 2024 U.S. Retail Banking Satisfaction study for the seventh consecutive year and being recognized on Forbes’ list of the 2024 World’s Best Banks for the sixth consecutive year.
“It’s the consistency of being there in the good and the uncertain times that matters,” said Bob Montgomery-Rice, Bangor Savings Bank President and CEO. “Despite all of the challenges our industry faced last year, we are proud to say we kept our promises to those we serve, making us stronger and better positioned for continuing growth and success.”
A Partner for Northern New England Businesses
Bangor Savings Bank remains committed to supporting businesses of all sizes with comprehensive, personalized financial services in today's dynamic economic landscape. This year, the Bank's skilled team created tailored solutions to give individuals and businesses a competitive edge and help them confidently navigate emerging opportunities.
- Local Solutions: In fiscal year 2024, the Bank continued to expand upon its business banking solutions, providing value far beyond financing. 18.7% of new core deposit accounts were opened by local businesses.
- everblue® Business Rewards Plus Mastercard® Credit Card Launch: In June 2023, the Bank introduced its own locally designed, sold, and supported everblue credit card suite, offering various credit card solutions, including a business credit card designed to simplify business financial operations.
- Buoy Local® Debit Card Integration (DCI): Enhanced Bangor Savings Bank’s Buoy Local program with Debit Card Integration, making it easier for customers to get rewarded for shopping locally at participating Buoy Local businesses by linking their Bangor Savings Bank Debit Card to the Buoy Local app to earn points, keeping more money in our communities.
- Banking as a Service (BaaS) Initiatives: Expanded the Bank’s BaaS offerings, enabling non-bank businesses to offer banking services and creating a more diverse deposit base for Bangor Savings Bank across multiple concentrations.
- Continued to innovate and provide modern payroll, HR, and merchant solutions: At year-end, over 4,700 business clients used the Bank’s Bangor Payroll & HR services, and more than 2,500 used merchant card processing services, with merchant clients processing over $1.3 billion in sales volume.
- Recognized for Payments and Innovation: Named Outstanding SME Payments Solution in the 2024 Digital Banker Global SME Banking Innovation Awards and selected for Mastercard Start Path Emerging Fintech program.
When Employees Succeed, Everyone Benefits
Bangor Savings Bank has been celebrated as one of the Best Places to Work in Maine (Large Employer Category) and as one of Business NH Magazine’s Best Companies to Work For in New Hampshire. This recognition is a testament to the Bank's strong focus on employee well-being, professional development, and inclusivity.
- The Bank continued to prioritize creating a culture of caring by offering a broad array of differentiated employee benefits across numerous categories, including Health & Wellness, Emotional Wellness, Financial Wellness, and Career Development.
- The Bank reimbursed over $1.5 million in tuition assistance over the past five years as part of its investment in professional development, which includes robust talent development programs featuring internships, strategic leadership cohorts, and a management trainee program.
Creating Customer Pathways to Prosperity
Bangor Savings Bank continues its commitment to community development, customer satisfaction, and innovative banking solutions through significant investments in affordable housing, relationship banking, and diverse credit card options, meeting the needs of our customers at every stage of their financial journey.
- Actively engaged in community development lending, issuing 57 new loans totaling $69 million, with $25 million dedicated to developing 14 affordable housing projects.
- Supported ten Federal Home Loan Bank Affordable Housing Program applications and a Low-Income Tax Credit fund that aided three affordable housing projects in Maine and New Hampshire.
- The Bank continued to help people buy homes. Bangor Savings Bank was named Maine State Housing Authority’s top lender for the 16th consecutive year and USDA Rural Development’s top lender of the year.
- Continued to innovate its personal banking solutions and services across every stage of the financial journey, including launching the everblue Credit Building Mastercard for consumers who need help establishing or building credit.
“Chris, our lender, was a huge part of making our dream of owning a home become a reality. I don’t think that we would have been able to do it without him. You could just tell it was more than a job for him.” Shane & Alexis Butterfield, Homeowners, Newcastle, Maine.
Your Community, Bangor Savings Bank’s Commitment
Bangor Savings Bank remains focused on local projects that maximize community benefit, continuing to significantly and positively impact the vitality of the region.
- In FY24, the Bank and The Bangor Savings Bank Foundation contributed more than $3.5 million through sponsorships, donations, and grants across Northern New England.
- Further showcasing its commitment to strengthening community infrastructure and support, Bank employees logged more than 11,000 volunteer hours with over 530 local organizations and initiatives.
- Received FDIC’s Community Reinvestment Act rating of “Outstanding” for the past 18 years.
- Opened new full-service branches in Bar Harbor and Kennebunk, Maine.
“It’s great to have a partner like Bangor Savings Bank. We greatly appreciate the relationship we have with the folks who work at the Bank. We also appreciate their commitment to our organization by providing volunteers that serve on our committees and help us in the community.” Robert Tourigny, of NeighborWorks Southern New Hampshire.
Embracing the future with solid governance and visionary leadership
At the heart of the Bank’s governance is a diverse and forward-thinking 10-person Board of Directors, each bringing unique perspectives and varied industry expertise. At the Bank’s Annual Meeting, leadership welcomed new board member Michael G. Cato, SVP and Chief Information Officer at Bowdoin College. The leadership team is committed to steering the organization with a vision that embraces the future while maintaining a steadfast dedication to its values and mission.
Strength and stability for generations to come
For over 172 years, Bangor Savings Bank has navigated change while prioritizing its promise to employees, customers, and communities. The gains and strategic initiatives in the prior fiscal year have strengthened the organization and enhanced its customer service offerings.
Building on the strength and stability demonstrated in FY24, the Bank is poised for continued growth through investments in technology, talent development, and unique financial offerings. The focus on sound credit quality is evidenced by non-performing loans measuring well below national peer groups. With capital levels exceeding the well-capitalized benchmark set by regulators, a sound balance sheet, and healthy operations, the Bank enters its next fiscal year ready to serve its long-standing customers and local communities.
For more information on FY24 results, please access the Annual Report here: bangor.com/promise
Media Contact:
Jaclyn Fish | Bangor Savings Bank
207.974.2555
Jaclyn.Fish@bangor.com
About Bangor Savings Bank
Bangor Savings Bank, with over $7 billion in assets, offers retail banking, business and comprehensive commercial banking, payment and corporate services, HR and payroll technologies and merchant solutions. Wealth management, investment and financial planning services are offered through Bangor Wealth Management, a division of Bangor Savings Bank, and Bangor Wealth Management of New Hampshire, LLC, a New Hampshire trust company and wholly-owned subsidiary of Bangor Savings Bank. Investment information can be found at bangor.com/investments.
Headquartered in Bangor, Maine, the Bank was founded in 1852 and is in its 172nd year, and currently has 69 branches in Maine and New Hampshire and business and/or loan production offices in Maine, New Hampshire, and Massachusetts. Bangor Savings Bank and The Bangor Savings Bank Foundation invested more than $3.5 million into the region through sponsorships, grants, and partnership initiatives last year. Bangor Savings Bank is an equal-opportunity employer. To learn more, please visit us at bangor.com. Member FDIC | Equal Housing Lender.
Wealth Management Products: Not FDIC Insured | No Bank Guarantee | May Lose Value