2014 ANNUAL REPORT Year in review and financial highlights
STATEMENT OF INCOME Year in review and financial highlights
(Dollars in thousands)
Balance Sheet Items:
2014
2013
Total Deposits
$306,343
$301,514
Total Loans
$239,346
$223,601
$2,575
$2,585
$363,344
$346,646
$29,610
$28,082
2014
2013
8.35%
8.91%
12.98%
13.60%
1.08%
1.16%
2014
2013
$13,995
$13,260
Interest Expense
$1,114
$938
Non-Interest Income
$2,831
$3,567
Net Income After Taxes
$1,760
$2,109
Net Interest Margin (1)
4.01%
4.39%
Return on Equity
6.06%
7.72%
Return on Assets
0.51%
0.69%
82.60%
77.53%
2014
2013
44,825
44,825
$39
$47
$661
$626
Reserve for Loan Losses (RLL) Total Assets Total Equity Capital Capital Ratios: Tier-One Capital Ratio Risk Based Capital RLL/Total Loans Income Statement: Interest Income
Efficiency Ratio Shares: Shares Outstanding Earnings per Share (annualized) Book Value
(1) The “Net Interest Margin” reflects interest income net of interest expenses, adjusted for tax-exempt loans and securities, as a percentage of average earning assets.
The year of 2014 added a layer of foundation to 1st National Bank’s future. We underwent a core banking system conversion. This is the primary software we use to process banking transactions and support online and mobile banking products. We believe this will provide our clients with a more robust banking experience. We closed 2014 with strong credit quality, capital and liquidity levels. Shareholders saw an increase in the book value of their First Berlin Bancorp stock from $626.48 per share on December 31, 2013, to $660.58 per share on December 31, 2014. The team grew loan and deposit numbers to strong levels, setting 2015 up for success. We were again the recipient of American Banker’s ‘Best Banks to Work For’ award, as well as recognized by the Wisconsin governor for our financial literacy efforts. Sincerely,
Thomas L. Jensen President and CEO
GIVING
$52,000
6,717
$35,000
given to community organizations through sponsorships and donations.
community service hours logged by the 1st National Bank team, benefitting 300+ organizations.
focused on the youth, including $3,500 in highereducation scholarships.
2014 HIGHLIGHTS
INNOVATION
AWARDS
BUSINESS
Our teams worked incredibly hard to find a core banking system that would allow us to serve our clients better.
1st National Bank was the recipient of two major awards in 2014: American Banker’s Best Banks to Work For, and the Wisconsin Financial Literacy Award.
2014 brought a 7% increase in our loan portfolio, the seventh consecutive year of loan growth for the Bank. This is a combined result of our team and an improving economy. We continue to build a diverse, but sustainable, credit portfolio.
Done with little client impact, we now offer a better online banking solution and robust mobile banking application. This system provides better integration of products and simplified vendor management. Additionally, we installed three image-enabled ATMs in Green Lake, Poy Sippi, and Berlin. This allows clients to make deposits 24/7, as well as make regular withdrawals. Without a strong and unified culture at the Bank, these changes would not have been successful. We are dedicated to employing innovative products and services for our clients.
For the second consecutive year, 1st National Bank has been named one of the Best Banks to Work For. This national program recognizes banks that win high marks from its employees for providing a positive work environment, top-notch benefits, and ample career-advancement opportunities. The Governor’s Council on Financial Literacy awarded the 2014 Wisconsin Financial Literacy Award to the Bank for its effort in promoting financial literacy among Wisconsin citizens. The Bank received this Award in 2012 as well.
We continue to see an uptick in the financial strength of locally-owned businesses. Our primary focus is on small, locally owned, family run businesses. These companies make up the backbone of our communities and complement the way 1st National Bank conducts its business. Our bankers are true strategic partners of these businesses— letting them focus on what is important and allowing us to handle their financial needs.
BOARD OF DIRECTORS
LOCATIONS
Russ Kuehn Co-Chairman & Retired President, 1st National Bank
Berlin 140 W. Huron Street | Berlin, Wisconsin
Bruce Bohn Co-Chariman, 1st National Bank & Bohn Farms, Inc.
Green Lake N6230 State Road 49 | Green Lake, Wisconsin
Tom Jensen President & CEO, 1st National Bank
Montello 408 Main Street | Montello, Wisconsin
Eric Cerbins Business Banking Executive, 1st National Bank
Green Bay 2181 S. Oneida Street | Suite 2 | Green Bay, Wisconsin
Roger Field Business Owner & Retired Pharmacist
Omro 120 Alder Avenue | Omro, Wisconsin
Mark Milbrandt General Manager, Apollo Tool
Poy Sippi N4259 State Road 49 | Poy Sippi, Wisconsin
Patrick Seaman Retired Auto Dealer, West Side Garage
Waunakee 1330 Montondon Avenue | Waunakee, Wisconsin
Dr. Thomas R. Willett General Practitioner, Green Lake Medical Clinic
Westfield 356 S. Pioneer Park Road | Westfield, Wisconsin
Jeff Walker Retired Insurance Agent, Walker Agency, Inc.
Winneconne 908 E. Main Street | Suite F | Winneconne, Wisconsin
TOM JENSEN President & CEO
WENDY SEAMAN Personal Banking Executive
ERIC CERBINS Business Banking Executive