“Every day I have the privilege of watching our employees help our customers achieve their goals. Whether it’s a young person opening their first savings account, a couple purchasing their first home, or someone starting a new business venture or expanding their business, our brand of banking revolves around our employees’ ability to establish a relationship with our customers and help improve their financial health.” —Jon J. Prescott
2
| KATAHDINTRUST.COM/100YEARS
A LETTER FROM OUR PRESIDENT Dear Reader, As I reflect on Katahdin Trust’s 100 year anniversary, I am filled with gratitude for all that we have accomplished, the journey we have taken and the plans we have for a successful future. First, I want to thank all of our employees and customers. Every day I have the privilege of watching our employees help our customers achieve their financial goals. Whether it’s a young person opening their first savings account, a couple purchasing their first home, or someone starting a new business venture or expanding their business, our brand of banking revolves around our employees’ ability to establish a relationship with our customers and help improve their financial health.
SENIOR MANAGEMENT JON J. PRESCOTT PRESIDENT & CEO
BONNIE C. FOSTER
SENIOR VICE PRESIDENT RETAIL SERVICES
WILLIAM P. LUCY
SENIOR VICE PRESIDENT COMMERCIAL SERVICES
MATTHEW M. NIGHTINGALE SENIOR VICE PRESIDENT TREASURER & CFO
When I am asked what it takes for a company to reach 100 years, I consider my personal experience and the opportunities that have been provided to me. In 1989, shortly after graduating from college, I joined Katahdin Trust. My first job at the Bank involved odd jobs like shredding, filing and assisting the staff with their workload. I can honestly say that I started from the ground up. In my nearly 30 year history, I have worked in many positions and departments including finance, marketing and as a branch manager. There are many stories of employees like me who took advantage of opportunities to grow and evolve in their careers. Encouraging our employees to try new things and find their passion is one of the things I am most proud of at Katahdin Trust. Speaking of passion, I strongly believe community banking is the place to be! We are large enough to offer similar products and services of larger banks but small enough to really know our customers and communities. When they succeed, so do we. It’s a partnership we take very seriously. Not
only are we completely dedicated to the satisfaction of our customers but we are committed to serving our communities through volunteerism, financial support and beyond. At Katahdin Trust we have found our niche of banking in the communities we serve. It doesn’t get any better than that. We have seen a lot of changes in banking over the last 100 years. Thanks to the guidance and wisdom of our board of directors, our business strategies have been carefully orchestrated based on both the opportunities and challenges occurring during any given decade. Our dedicated, knowledgeable staff has adapted to new technology, increasing regulation and new expectations from our customers. Our customers trusted us during the Great Depression, the Great Recession and other turbulent economic times. It speaks to our resilience and determination to stand the test of time. I believe our founders would be very proud! As you peruse the pages of this insert I believe you will learn how we’ve achieved this significant milestone. Perseverance and work ethic backed by a desire to help our friends and neighbors reach their life’s goals has been a driving force at Katahdin Trust for 100 years. It will continue to be so for the next 100 years. We believe the best is yet to come and humbly thank you for being part of our journey.
JON J. PRESCOTT
PRESIDENT & CEO
3
OUR PAST PRESIDENTS Henry Rowe: 1918 – 1943
Edgar Harrington: 1981 – 1992
Zenas Harvey: 1943 – 1952
Steven Richardson: 1992 – 1997
Willard McIntire: 1952 – 1981
Jon J. Prescott: 1997 – present
Henry C. Rowe was Katahdin Trust's first President. Rowe held a variety of jobs in addition to being the President of the Bank, including woods worker and store owner. He passed away in 1957 at the age of 90, and is buried in the Patten Cemetery.
2018 Marks Our 100th Anniversary We’ve seen a lot of change during that time, but what has carried our Bank through the last 100 years is consistency in our mission. From our founding in 1918, being a positive influence in the communities that we serve has been one of our top priorities. Relationships are at the heart of what we do. So to every one of our customers, neighbors and friends, thank you for 100 years of community banking at its best!
4
| KATAHDINTRUST.COM/100YEARS
ď ´ Teachers and school
children gather outside for grand opening of Patten branch in 1918.
OUR BOARD STEVEN L. RICHARDSON CHAIRMAN
Partner, Richardson’s True Value Hardware. Patten, Maine. Director since 1978.
RICHARD J. YORK, SR.
Owner/Operator, Aroostook Beverage Co. Presque Isle, Maine. Director since 1995.
VICE CHAIRMAN
RICHARD B. HARNUM, JR.
General Sales Manager, York’s of Houlton. Houlton, Maine. Director since 1997.
President, Webber Group. Bangor, Maine. Director since 2017.
JON J. PRESCOTT
KIMBERLEY A. NILES
PRESIDENT & CEO
Kathadin Bankshares Corp. and Katahdin Trust Company. Houlton, Maine. Director since 1997.
ROBERT E. ANDERSON
Chairman of the Board, FA Peabody Company. Houlton, Maine. Director since 1989.
6
PETER F. BRIGGS
| KATAHDINTRUST.COM/100YEARS
Owner and Director, State of Granite LLC. Founder, VC CFO Services, LLC. Scarborough, Maine. Director since 2015.
PAUL R. POWERS
Owner, Powers Roofing & Sheet Metal, Inc. Owner, B.J.J. Powers Enterprises. Caribou, Maine. Director since 2000.
Regional Leadership and Collaboration Katahdin Trust recognizes that partnership and collaboration are essential to our work and enters into these relationships with purpose, commitment, and focus toward achieving a common and actionable goal.
Sherwood Howes, Sharon Howes
McPhee’s father, was the holder of the oldest Katahdin Trust savings passbook.
8
| KATAHDINTRUST.COM/100YEARS
WITH US FROM Longtime Customers “It’s amazing for the bank to reach 100 years. It speaks to Katahdin Trust’s dependability and capacity to serve customers like my grandfather and father in the 20th century as well as the customers in the 21st century.” —Sharon Howes McPhee
THE BEGINNING Sharon Howes McPhee’s family has been customers of Katahdin Trust since 1918. She recently visited the Patten branch—the first branch of Katahdin Trust and where her grandfather opened his accounts—to talk about their history and share some special memories. “My grandfather, Ira Howes, started doing business with Katahdin Trust the year the bank opened in 1918,” explained Sharon. “In fact, I am told I still have the oldest savings account with Katahdin Trust, thanks to a passbook my father, Sherwood, handed down to me many years ago.” In 1918 when Sherwood was four years old, his father, Ira, took him to the bank to open an account. “He was only four, but he remembered holding his father’s hand and walking into the bank to give them his money to deposit,” says Sharon. “He handed the teller a few dollars, which was a lot of money back then for a four year old. He has told me that story countless times over the years!” Like so many Katahdin Trust customers, Sharon’s family had both personal and business accounts with the bank. “My grandfather and then my father owned the Patten Theatre from 1925 until it closed in 1972. I still have records of their business accounts with the bank.” As the person with the oldest savings account at the bank, Katahdin Trust was pleased to include Sherwood in its 80th anniversary celebration in 1998. “He was so proud to be on the float in the parade,” says Sharon. “It was a special day for our family.” “It’s amazing for the bank to reach 100 years,” remarks Sharon. “It speaks to Katahdin Trust’s dependability and capacity to serve customers like my grandfather and father in the 20th century as well as the customers in the 21st century.” While meeting the needs of today’s customers has certainly evolved since Ira Howes began doing his banking in 1918, the core mission of Katahdin Trust remains the same— to help make the communities in which they operate a better place to work, live, and do business.
9
The Patten Theatre passbook. Sherwood Howes at Katahdin Trust’s
80th anniversary celebration in 1998.
10
| KATAHDINTRUST.COM/100YEARS
WITH US FROM THE BEGINNING, CONTINUED
Local decision making continues to be a hallmark of Katahdin Trust’s flexibility to meet its overall goal of attracting individuals and businesses who demonstrate an active interest in their local communities. “Katahdin Trust is built on character,” says Jay Shields, Owner of The Byer Manufacturing Company located in Orono. “While many banks have continued to become bigger and more detached, Katahdin Trust offers a level of personalized service that is rare to find. They are big enough to serve our needs and small enough to really care. Katahdin Trust is a Maine bank for Maine people.” Customers expect their financial partner to have a stake in their success. Whether it’s meeting individual or business goals, relationship banking is more important than ever. Customers from all over the state of Maine rely on Katahdin Trust to deliver the products and services they need to be successful. “If you’re building a business, Katahdin Trust is a good building partner,” says Floyd J. Brown, Jr., Owner, of Floyd J. Brown, Jr. Construction Company located in Windham. “Katahdin Trust has been with us every step of the way.” “They work hard to help local, small businesses like me and they understand why it’s important,” shares Randy Sargent, Owner of Scarboro Muffler Center located in Scarborough. “Katahdin Trust believes in small business. Working with them, I don’t have to worry about a thing. I can focus on doing what I do best.” From its start in Patten in 1918 with customers like Ira and Sherwood Howes to today’s customers from all over Maine, Katahdin Trust is deeply grateful for the trust that has been placed in them. “It’s about trust,” says Dr. Carl Chasse of Chasse Chiropractic in Madawaska. “The name says it all. Katahdin Trust provides sound advice and helps me navigate through the unique challenges that come with owning a business. Everyone I’ve worked with has been kind, reliable, and honest. You stick with people that have those values.”
11
100 Years of Community Banking at its Best! Katahdin Trust is celebrating 100 years of community banking at its best! It’s not a slogan; it’s a way of doing business, our mindset, and our promise to each person who walks through our door. We’ve been serving the financial needs of our local communities since 1918.
Let’s take a look back at some key events that have occurred in the last 100 years. 1918 As the 19th century rolled into the 20th, business leaders across the nation began opening independent, community banks to meet the financial needs of families and business owners largely ignored by big-city banks. In northern Maine, Katahdin Trust Company was such a bank — opening its doors in Patten on March 7, 1918.
12
| KATAHDINTRUST.COM/100YEARS
1921 Three years after opening its first office in Patten, the Bank opened a branch in Island Falls in 1921. These remained the only two locations for the next 55 years.
19761987
1990s
In 1976, the Bank opened its third office in Oakfield. Eleven years later, the Bank expanded to Houlton.
In 1991, the Bank opened its fifth office in Presque Isle. During the mid 1990’s, as population continued to decline and larger banks continued to reduce their presence in northern Maine, Katahdin Trust remained loyal to the area and continued expanding with two new offices in Mars Hill and Caribou and a new Operations Center in Houlton.
2000
In November of 2000, the Bank more than doubled its assets with the acquisition of several Aroostook County branches of Peoples Heritage Bank (now TD Bank).
20072008
In 2007, Katahdin Trust acquired Maine Financial Group, located in the southern Maine community of Scarborough, and continues to operate it as a commercial loan office. Later that year, the Bank added a commercial services officer in Scarborough. A second commercial loan office was opened in the eastern Maine community of Bangor in March 2008.
20102012
20132014
The Bank began to expand its presence in the greater Bangor market with full-service branch locations in 2010; opening in Bangor’s Broadway Shopping Center in August and nearly a year later in Hampden. In May of 2012, the Bank opened a third Bangor area branch on Springer Drive at the Christmas Tree Shop Plaza. Concurrent with the opening of this branch, the Bangor commercial loan office relocated to this facility.
In November of 2013, the Bank expanded services at its Scarborough commercial loan office to include a full array of deposit accounts and teller amenities. Six months later in May of 2014, Katahdin Trust opened its third branch in the St. John Valley located at 79 West Main Street in Fort Kent.
Today, we celebrate 100 years of service to generations of customers with 16 branch locations throughout the state of Maine. And while our founders wouldn’t recognize the modern technologies and methods of banking today, it’s a certainty that they would appreciate the continued commitment to personal service provided by Katahdin Trust employees. We’ve never lost sight of the original vision of our founders, which was to be responsive to the needs of our communities while offering comprehensive solutions and impeccable service.
13
OUR MISSION Over the years, Katahdin Trust has remained committed to: • Providing quality financial service by giving each and every customer courteous, personal and professional attention. Our employees are well trained; knowledgeable and motivated at all times to fulfill our customers’ financial needs.
• Meeting the financial needs of the communities we serve, consistent with maintaining safe and sound banking practices.
• Continued growth and increased shareholder value at levels in line with maintaining a strong capital position.
• Remaining an independent locally owned and managed community bank that adds to the quality of life of the communities we serve.
• Treating all people fairly and equally.
• Helping businesses grow and prosper.
By adhering to our mission, Katahdin Trust will ensure that our customers, shareholders and employees alike will benefit from our continued growth and prosperity.
14
| KATAHDINTRUST.COM/100YEARS
Commitment to the Community Katahdin Trust is committed to providing quality financial service by giving each and every customer courteous, personal, and professional attention.
As we mark our 100th Anniversary, we have shared some key milestones that reflect on both the work and the sustained values that built Katahdin Trust over the past 10 decades. We are forever grateful to our many employees — past and present — who believe in our mission, show leadership in their communities, and help this region grow and prosper. Together, we have achieved a great deal! Today, Katahdin Trust remains a local company, built on traditions of financial strength, community priorities and innovation. We’re proud to be your local community bank and trusted financial partner. We remain committed to providing you with the highest level of personal services and look forward to the next 100 years!
15
MEET OUR
Our Greatest Asset Is Our People.
EMPLOYEES Katahdin Trust employees were recently asked to describe what it’s like to work there. While they represented different departments and lengths of service, the similarities in their answers speak to the consistent values and priorities that have sustained Katahdin Trust for 100 years. Whether they have been with Katahdin Trust for two years or 35, every respondent was quick to remark on the relationships with their co-workers. “We’re a family. We’re a close knit group,” said Valerie Pelletier, Customer Service Representative in Houlton and a 30 year employee of Katahdin Trust. “We work hard, but we have fun too. Our customers see how much we enjoy working together to help them.” “When I worked for a bigger bank I felt more like a number and now I feel like I’m part of a family,” shares Arianna McGraw, Branch Service Representative in Scarborough and a two year employee. “When I came to Katahdin Trust I knew two things right away – we work hard to help our customers get what they need and that this was a place I could learn and grow and advance my career.”
16
| KATAHDINTRUST.COM/100YEARS
Helping make customers’ dreams a reality is a responsibility felt by all employees.
Vincent Gilmore, a Teller at the Springer Drive branch in Bangor and a two year employee, started working at Katahdin Trust shortly after graduating from high school. “People my age think banking is something you get into when you’re much older but that couldn’t be further from the truth! Even though my experience was more in landscaping and other summer jobs, they saw my work ethic and were willing to train me. I really wanted to be in a professional work environment and Katahdin Trust is the perfect fit. I love helping our customers. I am learning every day and look forward to the opportunities that are ahead of me.” Helping make customers’ dreams a reality is a responsibility felt by all employees. “The Management Information Systems (MIS) department may not work face to face with customers but we take great pride in helping our co-workers who do,” explains Scott Rossignol, System Administrator, MIS and a four year employee. Whether we’re on the front lines or work behind the scenes we all have the same end goal – to assist our customers. That is something that is instilled in us from day one.”
A few decades ago a MIS department was not as vital but rapid advances in technology have revolutionized the way customers interact with Katahdin Trust. “The way our customers do their banking today is much different,” explains Annette Beaton, Vice President and Retail Services Officer in Houlton and a 30 year employee. “Years ago we would see all of our customers in person either at the teller or drive thru window. Now we offer so many options through online and mobile banking. We’re always here for that in person consultation when they need it, but we’re proud to offer our customers products and services that provide convenience and help them save time.”
KATAHDIN TRUST IS A MAINE BANK SUPPORTING MAINE PEOPLE AND MAINE ACTIVITIES. “We really care about our customers and the communities we serve,” says Jonathan Glazier, Customer Service Representative, Springer branch, Bangor and a four year employee. “Being encouraged to volunteer our time in the community is important,” says Matthew Nightingale, Senior Vice President, Treasurer, Chief Financial Officer and a 19
year employee. “Whether we sign up to ring the bell for the Salvation Army, collect food for the local pantries, visit schools to teach children about financial literacy, or serve on a non-profit board, our employees invest thousands of hours a year to help make our communities thrive. It is an honor to serve and a responsibility we take seriously.” “Coming to work for Katahdin Trust was one of the best decisions I ever made,” explains Karen Chapman, Vice President and Training Manager and a 23 year employee. “I’ve worked for larger financial institutions and nothing compares to working for a bank where employees are encouraged to develop their skills, be involved in their community and be rewarded for their hard work.” Katahdin Trust takes pride in offering its employees an outstanding salary and benefits package. “New employees are often surprised – and always pleased – at our comprehensive benefits,” explains Natasha McCarthy, Human Resources Director. “In addition to our competitive salary program that includes performance bonus incentives and a retirement plan, we also have an employee stock ownership plan along with insurance, educational incentives, paid vacations and more.” In summary, when asked what sets Katahdin Trust apart from other banks, Bill Lucy, Senior Vice President, Commercial Services, and a two year employee sums it up this way: “I have been in banking for 37 years and what makes Katahdin Trust special is its unusual autonomy to make decisions quickly for its customers. Our 100 year heritage is built on working with people who work in the woods and on the farm. We haven’t forgotten who built this bank – fiercely independent people and families who needed a bank they could count on to be there for them. That’s as true today as ever. Those roots run deep and show that we’re in this for the long haul. Here’s to the next 100 years!”
17
Supporting non-profit organizations
Volunteering at community events
Promoting local events through radio and social media
Helped provide backpacks of books for every first grader in Aroostook County
INVESTING IN OUR
COMMUNITIES For 100 years, Katahdin Trust has demonstrated its commitment to the local communities we serve through volunteerism, corporate contributions, employee donations and radio advertising. Our bank culture embodies a spirit of giving to make our communities a better place to live, work and play. Our employees log thousands of volunteer hours a year to more than 200 organizations. From youth and senior organizations, to humane societies, to financial literacy programs in schools and community development activities, our employees are serious about giving back and making a difference. In addition, they generously donate funds during the Bank’s monthly Casual Because We Care days, helping to support organizations selected by a committee of employees. Each year, Katahdin Trust supports several hundred organizations with financial contributions. “Monetary donations are part of our overall giving strategy,” explains Krista Putnam, Vice President, Marketing.
18
| KATAHDINTRUST.COM/100YEARS
“The local branches are actively involved in helping the Bank make decisions based on the needs in their communities. Our goal is to do more than issue a check to a worthy cause, we look for ways to be involved as partners in many of the organizations we support.” For example, a key partnership with United Way of Aroostook provided for a backpack of books for every first grader in Aroostook County last year. In addition to a financial contribution, our employees donated time to pack and distribute the books as well as volunteer at end of summer parties for hundreds of children. A hallmark of Katahdin Trust’s giving strategy is its radio advertising program. Launched in 2002, the Bank began devoting most of its air time to help promote community events and fundraising efforts of charitable and civic organizations throughout the Bank’s market area. “Our radio program has had a very positive impact on the Bank, its employees, and organizations throughout our service area,”
says Putnam. “Many non-profit organizations and community activities are struggling to meet the needs of those they serve. Our radio advertising — now in combination with our Katahdin Corner community calendar and social media strategy that includes Facebook, Instagram, LinkedIn, Twitter and more — adds a layer of marketing and promotional support that the organization may not otherwise be able to afford or have the manpower to execute.”
with radio advertising. I have heard great feedback from the spot which ran a while ago, but recently someone mentioned it to me again. It had a great impact on our pantry.”
Our radio strategy is effective because Bank employees are involved in the process from start to finish. Many of the events that are promoted are from employee recommendations and it is often the referring employee that is the one that records the spot for the Bank. The Bank’s marketing department then takes the information and adds it to the Katahdin Corner community calendar on their website and posts it on the Bank's Social Media Channels. A food pantry that received radio time from Katahdin Trust offered this feedback: “Thank you for supporting our pantry
Katahdin Trust’s senior management team is extremely supportive of the Bank’s community involvement efforts. Thanks to its volunteerism, corporate giving, radio and social media efforts, the Bank has been recognized by local leaders, business owners and community members for its leadership in supporting community based events. We are proud that the Bank’s involvement extends deeply into the communities we serve. After all, a community that works together thrives together, and that is something we stand behind!
The dollars that the organization would otherwise need to use for marketing and promotion can be utilized to meet the needs of their clients. The Bank helps the organization in a truly intangible way through the promotion of activities in a variety of channels.
19
The Future of Banking Offering some of the latest technological advances in banking and delivering them in a convenient, reliable, and safe way – all with the exceptional personal service for which we are known – has helped establish Katahdin Trust as a trusted financial partner.
KEEPING UP WITH TECHNOLOGY 100 years ago, personal service meant a faceto-face visit at the Bank or in the homes or businesses of our customers. Today personal service has a much broader definition – providing products and services that can be personally accessed by our customers in the ways that are most important to them. Our founders would likely be in awe of the modern technologies and methods of banking today. We are confident that they would be very proud of how we have kept pace with the ever increasing demand to offer a variety of options, whether it’s banking from a personal computer, through our mobile app, by phone, by ATM or at any of our 16 convenient locations. Our customers decide when and by what means they want to do their banking with us.
20
| KATAHDINTRUST.COM/100YEARS
Technology continues to transform the financial services industry, and it’s our job to deliver banking services in innovative ways, and to provide digital channels to help our retail and business customers alike move and manage their money with ease, speed and convenience. Our goal is to deliver financial products that enhance the customer experience with the way people live and work today. In addition to our more traditional methods of interacting with customers, our online services are easy to use and available 24/7. User friendly tutorial videos can be accessed through our website to help customers set up their accounts online. Protecting our customers’ information is as important as the products we offer
them. “Security is our highest priority and we have invested heavily to ensure our customers are protected,” explains Andrew Putnam, Vice President, Chief Information Officer. “Whether you are online opening a checking or savings account, applying for a mortgage, checking your account balances, transferring money or viewing your monthly statement, we utilize multiple levels of security to protect our customers.” For example, by offering mobile banking apps like CardValet®, our customers are able to manage their finances with their smartphone by instantly controlling how, when and where their debit card is used; and Katahdin Trust Visa debit card with Apple Pay® allows for convenient and
secure payments at hundreds of thousands of merchants nationwide. Keeping up with the latest technological advances in banking and delivering them in a convenient, reliable, and safe way – all with the exceptional personal service for which we are known – has helped establish Katahdin Trust as a trusted financial partner. It’s a tradition and value we will continue to uphold during our next 100 years!
Message and data rates may apply. CardValet® is a trademark of Fiserv, Inc. or its affiliates. Apple Pay® is a trademark of Apple Inc.
Share
certificate.
Celebrating 100 Years of Community Banking
An old
check writer machine.
We remain committed to providing you with the highest level of personal service and look forward to the next 100 years!
Katahdin Trust offers convenient locations all
over the state, including this branch in Hampden. Board Book. Page 1 shows meeting notes
from the first board meeting on March 14, 1918.
The Traveling History Display
will be making an appearance at each Katahdin Trust location throughout the year of 2018.
An old ledger containing records of
customer loan payment information.
22
| KATAHDINTRUST.COM/100YEARS