Community Concepts Financial Corporation 2018 Annual Report

Page 1

Fiscal Year

2018 REPORT

We Believe all Individuals, Families and Communities can be Financially Secure.


2018 REPORT Welcome

Welcome

to

Community

Concepts

Finance

At CCFC, “We believe all Individuals, Families and

Corporation’s Annual Report for fiscal year 2018. It

Communities can be Financially Secure” and all the

was a year of change and growth for the organization,

programs we offer make this our top priority. If you’d

especially with our staff. Our Vice President of Lending

like to directly help and support our work, you can

moved on to a great position in Mechanic Falls and

make a tax-deductible donation and decide how

Natalie Beale was promoted to be our new Loan

your dollars will be used. We could use your donation

Underwriter. Jennifer Boenig also joined the staff as

for our revolving loan pool to support the business

the office manager.

community or for the homeownership center to help

We’re proud to say for the fourth year in a row, we were Maine’s SBA Microlender of the Year. Statewide, more than $1.46 million in SBA Microloans were made

people become homeowners. We could also use your donation as matching dollars to access other local, state and federal funds.

with more than half or $841,000 made by CCFC.

Please take a moment to look over the programs and

With ongoing support from our lending partners and

clients featured in this report to learn more about the

funders, we can continue to have a significant impact

impact CCFC has in the community and how you can

in western Maine.

help. CCFC is a subsidiary of Community Concepts, Inc.

Our Homeownership Center helps people achieve their financial goals and puts them on the path to homeownership. Our staff works with hundreds of

which is led by Shawn Yardley, the Chief Executive Officer, and Kevin Mahoney, who serves as CCFC’s Treasurer and Community Concepts’ Chief Financial Officer.

people every year and you’ll learn more about these programs in this report.

Yours in Service,

CCFC staff also continue to focus on economic development in Oxford County and a major area of focus is improving broadband service and access. You’ll

Glen E. Holmes

learn more about the planning grant and partnership CCFC has with other organizations to achieve this goal

PRESIDENT

in this report.

17 Market Square • South Paris, ME 04281 (207) 333-6419 • homequest@community-concepts.org www.ccfcmaine.org • Find us on Facebook @CCFCMaine CCFC is a subsidiary of Community Concepts, Inc. Visit www.community-concepts.org for more information

2


Board of Directors Mark Samson, Chairman With over 30 years of banking experience, Mark is the current President of Dirigo Federal Credit Union. He joined the credit union in 2012 as Executive Vice President of Lending where he directed a highly successful period of loan growth, product diversification and institutional advancement. Mark oversees business development, loan portfolio growth, portfolio risk management, loan pricing, product development and sales, and adherence to policy and procedure. Prior to joining Dirigo Federal Credit Union, Mark was the Senior Vice President/Senior Retail Lending Manager at Mechanics Savings Bank. Mark is a graduate of Lesley University and holds a Bachelor’s of Science in Business Management. Mark is an active participant in the community and currently serves on the Saint Dominic’s Academy Finance Committee. He is also past president of the Community Concepts board and served on the Finance Committee. Mark is a former Maine State Legislator, Maine State Housing Commissioner, Androscoggin County Budget Committee member and Auburn Youth Hockey coach. Mark is a lifelong resident of LewistonAuburn and currently resides in Auburn with his wife, Marie, and two children, Connor and Callie.

Travis Frautten, Vice Chairman Travis joined Augusta-based Kennebec Savings Bank in June of 2018 as Vice President, Commercial Banking Officer having previously interned there as a college student. Previous to that, Travis worked for the Bank of New Hampshire as well as Androscoggin Bank for over five years in a similar capacity, having started in their credit department as a Commercial Credit Analyst before moving into commercial lending. Travis obtained a Bachelor’s degree in Business Administration from the University of Maine in Orono and an MBA from Thomas College in Waterville. In addition to the CCFC Board, Travis also serves on the Board of two central Maine non-profit organizations, both of which serve the needs of children. Travis lives in Readfield with his wife, Danica, and their two daughters, Adalynn and Lillian. When not in the office, Travis and his family can often be found outside exploring all of the natural beauty Maine has to offer.

Lincoln Jeffers, Secretary Lincoln Jeffers is the Economic and Community Development Director for the City of Lewiston. He has worked to create and promote economic development in Lewiston since 2000. During his tenure, the city has had more than $665 million invested in economic development projects which created 3,275 new jobs and retained 1,400 jobs. More than 3.3 million square feet of new retail, restaurant, office, medical, warehouse and commercial space has been built or rehabilitated. Lincoln received a bachelor’s degree in sociology from Middlebury College, and has completed graduate work in economic and community development at the Muskie School of Public Service. Between Middlebury and Muskie, Lincoln spent a decade in Breckenridge, Colorado working in a variety of industries and small businesses.

Christopher Paradis, Member at Large Christopher Paradis has more than 35 years combined experience working in the private and public sectors. He has held a number of different positions of responsibility over his professional career with stints in the banking, lighting, refractory metals and higher education industries for such companies as People’s Heritage Bank (TD Bank), Philips Elmet, Philips Lighting USA, Elmet Technologies, and the Maine Community College System. His board work includes serving nine years as a Director and Chair for the Maine International Trade Center as a Governor’s appointee and he currently is a member of the Community Concepts Inc. board. Christopher is also an active member and Past President of the Auburn, Maine Rotary Breakfast Club and is an avid outdoors recreational enthusiast. He holds a B.S. in Business Administration from the University of Maine and a M.S. in Business Management from Husson University. Christopher joined CCFC’s board in 2017. 3


Total Portfolio

$9,632,719

$3,267,227.00

$

Residential Lending

$6,365,492.00

Business Lending

Community Concepts Finance Corp. Audited Statement of Financial Position FY18

FY17

Assets

TOTAL ASSETS

$5,280,143.10 $14,557.28 $8,486,817.42 $13,781,517.80

$5,540,760.87 $27,073.76 $7,562,277.95 $13,130,112.58

TOTAL LIABILITIES

$1,363,880.27 $8,069,330.25 $9,433,210.52

$1,599,379.20 $7,345,886.05 $8,945,265.25

$4,348,307.28

$4,184,847.33

$13,781,517.80

$13,130,112.58

Current Assets Property & Equipment Other Assets

Liabilities Current Liabilities Non Current Liabilities

Net Assets TOTAL LIABILITIES & NET ASSETS

FY 17 & 18 CPA BerryDunn 4


FY 2018 By the Numbers

Total Business Lending

Business Technical Assistance

69 Business Loans statewide totaling $2,581,825 SBA Microlender of the Year

Honored for the 4th year in a row!

215 business owners received more than 2,900 hours of assistance from business advisors.

Homeownership Center 625

184

43 Loans totaling $841,001 communicate

broadband infrastructure

modern

information

users

Northern Forest Center study

growth

improve expansion

The homeownership center also provided more than 1,450 hours of pre-purchase, credit and foreclosure counseling services.

Total Residential Lending

variables

Economic Development

accessible seminars

understand

Northern Oxford County

e�cient

planning

statistics

Homebuyer Education Participants New Homeowners Created

analytical development

number connectivity

13 first and second mortgages = $262,657 2 USDA 502 loans = $309,576

5


Business Lending

CCFC Helps Oxford Business Relocate & Expand Pat’s Hot Tubs & Pools, located on

help with the purchase of the building.

With the new building and better

Route 26 in Oxford, is a family-owned

However, purchasing the building would

signage,

and operated business offering sales,

only be the first step toward a new

experienced growth in customer traffic

installations, repairs and services for hot

home for the business. In order to open

and sales, which in turn brought about

tubs and above-ground pools. Pat Paine

the doors, a new furnace, fixtures and a

the need for more staff. Natalie Beale,

and her husband, David, have more than

significant amount of remodeling would

also from CCFC, shared with Pat her

20 years of experience and can help

be required. A partnership between the

expertise on marketing, interviewing,

keep your pool or hot tub clean with

Paines, CCFC and a local bank resulted

developing job descriptions, making

all the necessary chemicals and water

in a blueprint for expansion, financial

job offers and creating an employee

testing right in their store. They also

backing and a new storefront grand

manual. Natalie and Pat also attended

carry toys and equipment that can be

opening within only a few months-

a local workshop on hiring, recruitment

used in a pool, hot tub or even the lake.

faster than Pat thought possible!

and retention.

Once the new location was up and

Getting CCFC involved early on helped

running, the couple’s priority became

turn the expansion of Pat’s Hot Tubs &

expanding their market and working

Pools from a potential struggle into a

In fact, in the summer months, you’ll usually find a large rubber ducky with sunglasses floating around in a hot tub out front.

Pat’s

Hot

Tubs

&

Pools

more efficiently. CCFC was there with

smooth transition, with guidance from

Pat and David were able to expand

an experienced business advisor, Kevin

concept to completion. Now Pat and

their business and move into the larger,

Smart, to consult on new advertising

David are ready to swim in the deep end!

new location thanks to Community

and marketing campaigns while also

Concepts Finance Corporation (CCFC).

reviewing office functions such as

They learned about CCFC through a

bookkeeping.

former employer and hoped they could 6


FMI on Pat’s Hot Tubs & Pools stop in at 894 Main St., Oxford or call (207) 539-6047 and on the web PatsHotTubsandPools.com

Natalie Beale Natalie Beale is a Loan Underwriter at CCFC, where she analyzes loan applications based on financials, risk, feasibility and community impact. Beale graduated from the University of Southern Maine, with bachelor’s degrees in Leadership & Organizational Studies and Social and Behavioral Science, both of which have contributed well to her lifelong entrepreneurial spirit and active community engagement. Prior to becoming an Underwriter, Beale was a Business Advisor with CCFC working with clients on social media and print marketing, record keeping, business plans, cash flow analysis, hiring, training and more. Beale, who promoted to Underwriter in 2018, obtained the American Bankers Association Certificate in Business and Commercial Lending alongside completing various NeighborWorks Training Institute courses in community economic development, underwriting and financial analysis. 7


Business Lending

Baking Success: CCFC Helps Bagel Business Grow to Meet Market Demands One person with passion and a valuable

out of the Portland Public Market six

to buy the building on Cumberland

skill can start a small business. Then,

years ago with no plan to enter the

Avenue.

with hard work and a little luck, that

retail market. When demand for his

small business will grow. Building a

high quality, organic flour bagels spiked

business demands new and different

upward, Paul boosted production by

skills, which a budding entrepreneur

expanding into a Cumberland Avenue

may lack, and that’s where Community

location. Soon, folks began walking

Concepts Finance Corporation (CCFC)

in and asking for more than just his

can help. Working with a CCFC business

traditional bagels which are hand

advisor

difference

rolled, boiled and then baked on a

between struggling with the challenges

stone hearth. They wanted various

of growth or moving forward with a

toppings, breakfast sandwiches, coffee

successful and sustainable business

and other options, like dairy-free cream

model.

cheese. Before long, Paul, who had not

can

make

the

Paul Farrell, the owner of Union Bagel in Portland, began wholesaling bagels

envisioned opening a storefront, was the owner of a busy and popular bagel shop. Early last year, Paul decided that the Cumberland

Avenue

space was too small to accommodate an increase in both café seating

and

bagel

production. He opened

With his expansion plans becoming more complicated, Paul’s local bank manager recommended he look into the assistance available through CCFC. Paul met with CCFC Business Advisor Kevin Smart to explore everything from marketing, finance and accounting to business and workforce development. “I worked closely with Paul in assessing his financial picture,” said Kevin. “We recently completed a deep dive into his finances, looking at the past six years, in addition to understanding his operational practices. Paul now has a comprehensive picture of his business from a financial perspective, including an

understanding

of

his

starting

financial picture and how growth and expansion activities have affected that picture.”

another location in a

Paul has learned a lot through this

building he owns on

process, adding, “I came into this

Veranda Street with the

knowing how to make bagels, not

intention

moving

necessarily how to manage a business.”

production there, while

Paul and Kevin are now delving into

simultaneously

how the changes in hiring laws, both

of

trying

from the State of Maine and the City of 8


Portland, will affect new hiring policies designed to build and retain a solid work force. Later this year, they also plan to assess how best to expand into new markets and what impact that will have on operations. With the help of financial and technical assistance from CCFC, Paul’s path to expanding his bagel business is moving forward and rolling along.

FMI on Paul and Union Bagel Company, call (207) 699-8264 or on the web at unionbagel.com

Kevin Smart Kevin Smart is a Business Advisor with Community Concepts Finance Corporation. Before joining CCFC in 2016, he spent 11 years in the banking industry, working in management, mortgage and consumer lending. He also has 20 years of experience in nonprofit management and spiritual counseling. Kevin is a Certified QuickBooks Desktop Pro Advisor and helps businesses with budgeting, development, staff training, operations oversight and strategic planning.

9


Mike Wilson, senior program director for the Northern Forest Center; Anne Hazlett, Assistant to the Secretary for Rural Development at the United States Department of Agriculture; and Mia Purcell, Vice President of Economic Development and Impact at CCFC, attended an event in Cranberry Isles to celebrate the construction of a broadband network.

Economic Development

Building Better Broadband Access to affordable, high speed broadband is quickly becoming the most critical infrastructure of our time, just like electricity, transportation, and roadways were early last century.

To help make it easier for residents and visitors to connect to the internet, three wifi hotspots will be installed in downtowns in the Maine West region.

The Northern Forest Center was awarded a

The Northern Forest Center also received a grant

broadband planning grant from the State of

from the Stephen and Tabitha King Foundation

Maine’s broadband agency, the ConnectME

to upgrade public access computers in public

Authority, to assess and improve high speed

libraries in Maine West towns. To complement

internet connectivity in the Maine West region,

these initiatives the Adult Education Centers that

which includes 27 towns in northern Oxford

serve northern Oxford County are offering more

County. Development of the plan was coordinated

computer classes.

by Community Concepts Finance Corporation (CCFC) in collaboration with Axiom Technologies of Machias, Maine, who developed a plan for each town to enhance and promote more advanced broadband

and

expand

broadband

service

to unserved areas. CCFC’s Vice President of Economic Development and Impact, Mia Purcell, is working with each town to help implement its 10

plan and improve local broadband service.

CCFC and the Northern Forest Center continue to explore additional funding opportunities to increase digital inclusion and digital literacy skills for Maine West residents and businesses and expand and improve high speed broadband infrastructure.


Marjorie Baril, a HUD certified Housing Counselor and Financial Coach with CCFC, leads a Homebuyer Education class and participants take a break to have a little fun.

Homebuyer Education

Homeownership Center Hundreds of people every year work

Many

and

the Homeownership Center offers pre-

with staff in the Homeownership Center

homeownership

offer

purchase counseling. Clients met with a

at

Community

Concepts

lending

institutions programs

Finance

incentives for people to take the class,

counselor to establish goals and create

Corporation (CCFC) and one of the

such as MaineHousing’s Advantage

an action plan. Topics the counselor

most popular classes is the Homebuyer

Program

may cover include ways to find money

Education class. This class provides the

participants

grant

leaks, setting up a budget or improving

“nuts and bolts” of homeownership and

towards down payment and closing

a credit score. Appointments can be

is offered locally by CCFC’s certified

costs. Green added, “We are a HUD

done over the phone or in-person at

housing counselors. The one-day class

approved counseling agency, but it’s

the South Paris or Lewiston office. In

covers all the basics of homeownership,

always best to check with your lender

addition to pre-purchase counseling,

from financial preparedness to the

on what programs and incentives they

the Homeownership Center also offers

loan process, and also brings in guest

offer and what’s required.”

an online Money Management course

speakers who can share their expertise in finance and real estate.

which

provides

with

a

qualified

$3,500

The Homeownership Center also offers an online Homebuyer Education course

as well as foreclosure prevention services.

“We have guest presenters come in and

which requires a person complete the

The Homeownership Center is always

share their firsthand knowledge and

online course and speak with one of

looking for new ways to help clients

experience with people,” said Melissa

CCFC’s certified housing counselors to

become financially secure so class

Green, Vice President of Client Services

ask any questions and learn about state

offerings can change. For the latest

for CCFC. “Being able to talk with

and local resources.

schedule and offerings, visit CCFC’s

someone who has processed mortgage applications or done home inspections for several years is so helpful.”

While exploring homeownership, some

website or Facebook page.

people may need additional support and

FMI on ccfcmaine.org or phone (207) 333-6419 or email homequest@community-concepts.org 11


Thanks to all our supporters! Government Agencies FAME Maine DECD

Financial Institutions Bangor Savings Bank Camden National Bank Dirigo Federal Credit Union Evergreen Credit Union Franklin Savings Bank Gorham Savings Bank Katahdin Trust Company

Machias Savings Bank Norway Savings Bank SIS (Sanford Institution for Savings) Bank Skowhegan Savings Bank TD Bank University Credit Union

Maine Department of Professional & Financial Regulations

U.S. Department of Housing and Urban Development U.S. Small Business Administration

Maine Housing Authority

CDFI Fund

NeighborWorks America Oxford County

CHAPA Citizens Housing and Planning Association

USDA Rural Development

hoMEworks Maine BCCP

Partners AVCOG Androscoggin Valley Council of Governments

of Commerce

Commerce

Development Centers

Fryeburg Business Association

Mahoosuc Land Trust

SCORE

Bethel Area Nonprofit Collaborative

Maine Preservation

Granite State Development Corporation

Maine Woods Consortium

Southern Maine Planning & Development Council

Bethel Chamber

Greater Bridgton Lakes Region Chamber of Commerce

Biddeford Saco Area Economic Development Corporation

Greater Franklin Development Council

CEI (Coastal Enterprises Inc.) CDFI Four Directions Native CDFI

Jay, Livermore Falls, Livermore Chamber of Commerce

Franklin County Chamber

LA Metro Chamber of

Envision Rumford

MaineStream Finance CDFI New Ventures Maine Northern Forest Center Norway Downtown Oxford Hills Chamber of Commerce River Valley Chamber of Commerce SBA Small Business

Western Maine Community Action

Foundations & Nonprofits Maine Community Foundation The Betterment Fund The Sandy River Charitable Foundation

Ready to buy a home? Get pre-approved today, be ready to buy tomorrow

HEROES Advantage Loan $750 in closing cost discounts1 as our way of saying “Thanks” for serving our community.

To explore your personal mortgage options, stop by your local branch or call 1.800.284.5989.

DOWN PAYMENT Advantage Loan

MI Advantage Loan No monthly mortgage insurance. Low fixed rate with only 5% down.

Check Rates

Low down payment conventional loans, with options as low as 3% down.2

Find a Lender

Apply for a Loan

All online at northeastbank.com/mortgage

Mortgage loans are available to qualified applicants who meet the Bank’s current loan guidelines for owner-occupied residential properties in New England. Available for loans up to $453,100. For loans with less than a 20% down payment, escrow for taxes and property insurance is required (including flood insurance, if applicable). Additional restrictions may apply. See tax advisor regarding deductibility of interest and charges. NMLS ID #483424. 1Visit www.northeastbank.com/hero for a full list of eligibility criteria. 23% down payment limited to fixed-rate mortgages.


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