President's Message

Edward L. Hennessey, Jr.

Our success over the years is directly related to our dedicated employees and the high level of customer service they provide every customer.  We want each officer and employee to personalize our slogan “Experienced People, Exceptional Service”.   Several years ago, we retained the services of a company to conduct mystery shops of Machias Savings Bank and nine of our competitors.  In the beginning, the survey results indicated we were doing almost exactly the same as our competitors.  Since 2001, we have worked diligently to perfect our customer service skills.  I am proud to say today our survey results are substantially higher than our competitors.  Exceptional customer service will remain one of our top priorities for 2008.

This was the fourth consecutive year of record earnings and growth.  We must be careful not to become complacent as this trend will change in 2008.  A downturn in the economy will make us work harder, which in turn should make us better.

In July of 2007, we opened our newest branch in Ellsworth located at the Mill Mall shopping plaza.  This branch has a new look and feel and has been openly accepted by our customers.  We also are in the process of building a new branch office on Cottage Street in Bar Harbor.  As of January 1, 2008, most of the steel has been erected and we anticipate the branch opening in the spring.  We are also actively pursuing the permitting process to build a new regional headquarters facility on Wilson Street in Brewer.  We hope to begin construction on this new branch by June of 2008 with a completion date of late fall. 

The sub prime mortgage collapse and the downturn in the local economy will have an adverse affect on banking for 2008 and 2009.  Our logging and lobster industries have both suffered very difficult years and the price of fuel has impacted almost every business we finance.  On a much brighter note, with the early snowfall in December, many businesses that depend on winter activities will hopefully flourish in 2008. 

Our economic outlook indicates that rates will continue to drop during 2008.  The lower interest rates will help our borrowers, but will also have an adverse affect on our depositors, especially our elderly depositors who depend upon interest income from their savings to supplement their retirement.  We hope the Federal Reserve will not drop rates to a level that would cause inflation.  It is going to be very difficult to reach a happy medium and reduce rates to a level that will allow the housing market to recover, but not a level low enough to cause inflation to become our primary concern.

Machias Savings Bank has a great brand, fantastic employees, a rich heritage, and a great future.  I am privileged to lead this company.  I do not think we know yet how good we can be.  I would like to take this opportunity to thank our directors, corporators, officers, and employees for their dedication and commitment to the success of Machias Savings Bank.  Thank you, our valued customer, for your continued support.  We look forward to serving you in 2008 and beyond.

Edward L. Hennessey, Jr.
President, CEO & Clerk
December 31, 2007