Investing for Good ANNUAL REPORT 2015

Investing for Good A N N UA L R E P O RT 2 0 1 5 This is Ron Phillips’ final CEI annual report. Ron’s vision, creativity, indefatigable energy and l...
Author: Joshua Watts
17 downloads 0 Views 4MB Size
Investing for Good A N N UA L R E P O RT 2 0 1 5

This is Ron Phillips’ final CEI annual report. Ron’s vision, creativity, indefatigable energy and leadership have been critical to CEI and a driving force for the welfare of people in Maine and rural America since he rode his motorcycle up the coast 38 years ago. Ron, we thank you and wish you all the best on the next leg of your journey. THE BOARD AND STAFF OF CEI

CEI FINANCES BUSINESSES AND PROJECTS IN MAINE, THE NORTHEAST, AND ACROSS RURAL AMERICA Our sincere thanks to Ellen Golden, SVP and Managing Director of CEI Investment Notes, Inc. and Alice Hudyberdi, Executive Associate, who both stepped away from CEI in 2015 after 38 and 32 years respectively. Our organization would not be what it is today without their countless contributions and commitment to our mission.

CEI Loans and Investments 2

CEI 2015 ANNUAL REPORT

Dear Friends, Over the past 38 years, our organization has steadily invested in people, places, and

existence on our planet. Inequality has become the focus of much attention and

enterprises in Maine and in rural communities throughout the United States. Our

rhetoric; we hope policy change and community engagement will turn this nation

mission is to help create economically and environmentally healthy communities in which

toward greater equality of both opportunity and outcome.

all people, especially those with low incomes, can reach their full potential. We believe in

There is good news: individual and institutional investors and asset managers

the power of investment as a means to build a more equitable world.

increasingly apply “ESG” (Environment, Social and Governance) criteria to the

CEI changes lives through a holistic approach to community economic

businesses and markets in which they invest, a practice commonly referred to as

development. Our promise to create change means understanding the sectors and

“impact investing.” The CDFI/CDC industry’s approach to impact investing for

systems that support a vibrant, sustainable economy. We lead efforts to strengthen

social and environmental benefit is gaining traction with investors, while targeting

agriculture and food systems, fisheries and aquaculture, forestry, nature-based tourism,

resources to low and moderate income communities, individuals, children, and

renewable energy, community facilities, affordable housing, and sustainable real

families who are suffering. Please join us on our journey to make a difference,

estate development. Directly and with our many partners, we provide a wide array of

from Civil Rights to Sustainable Solutions.

financing solutions and advising services for business owners. We advance policies that create opportunity. With total assets of nearly $120 million, a net worth of $43 million, and overall capital under management of $770 million, CEI is a proud member of the Community Development Finance Institution (CDFI)/Community Development Corporation (CDC) industry. Since its inception in 1977, CEI has mobilized $1.2

Ronald L. Phillips President and CEO

Ellen Seidman Chair, Board of Directors

billion in financing for over 2,555 businesses and community development projects. Throughout CEI’s history, our strategy has been to anticipate and mitigate the impacts of a changing world that has not always been kind to the communities we serve. In the past year, we saw broader attention to both climate change and inequality—two of our long-time concerns. Pope Francis’ landmark encyclical, The Care for Our Common Home, called for climate change awareness and action around the world. This was followed by the United Nations Conference on Climate Change in Paris, where 195 nations convened to address the impact of human

CEI 2015 ANNUAL REPORT

3

CEI CUMULATIVE IMPACT

1977-2015

2015 IMPACT CEI NOTES

CEI INVESTMENT NOTES, INC.

INVESTED $2.2 million Capital Under Management/ Committed $770 million Businesses Financed

2,555

CREATED/RETAINED 93 jobs FINANCED 17 projects CREATED 11 units of affordable housing

CEI AND ITS SUBSIDIARIES

CEI LOANED/INVESTED $20.6 MILLION Microloans $1 million Small Medium Enterprise $12.5 million Housing $6.6 million CREATED/RETAINED 1,388 JOBS

Amount Financed $1.194 billion

FINANCED 97 BUSINESSES

Amount Leveraged $2.43 billion

Child Care Slots Created/ Preserved

4

CEI 2015 ANNUAL REPORT

C7a

5,806

FINANCED 3 businesses

CHI

CEI 7(a) Financing LLC 1,882

CREATED/RETAINED 374 jobs

ADVISED 3,287 BUSINESSES/PEOPLE Housing Counseling 959 Business Development Services 2,328 CREATED/RETAINED 212 AFFORDABLE HOUSING UNITS

49,786

Affordable Housing Units Created/Preserved

INVESTED $38 million

CREATED/RETAINED 195 CHILD CARE SLOTS

Businesses/People Advised

Full-time Jobs at Loan Closing 33,103

CCML

CEI CAPITAL MANAGEMENT LLC

SMALL BUSINESS LENDING COMPANY (SBLC) LICENSE ACQUIRED Open for business in 2015

CEI HOUSING, INC.

CVI

CEI VENTURES, INC.

PROVIDED 278 affordable housing units LOCATED in 17 communities in seven counties in Maine

INVESTED $829,900

SERVED 560 individuals, seniors, and families

CREATED/RETAINED 713 jobs

NUMBER OF PROJECTS 20

FINANCED 5 businesses

PORTFOLIO VALUE $35.4 million

Little River Flower Farm

BUXTON, MAINE

Less than 30 minutes west of downtown Portland, Maine, Bruce and Nancy Stedman have been growing MOFGA certified flowers and produce at Little River Flower Farm for over 15 years. Looking to diversify and scale their production and grow year-round, the Stedmans invested in an ArchSolar integrated solar greenhouse. The project was financed with loans from CEI and CEI Investment Notes, Inc. CEI’s understanding of the renewable energy and agricultural sectors was critical to closing the loan. The greenhouse features flexible solar panels integrated into the glazing, supplemental

lighting and heat storage systems, making it economically and environmentally sustainable. These factors informed the loan process, a “first” for CEI in terms of greenhouse technology underwriting. “One challenge of helping small farms scale production and adopt year-round agriculture is capital. CEI is filling that need, allowing farmers to increase their margins and contribute to regional food systems more predictably and with better returns,” said Tony Kieffer, Founder, ArchSolar.

“CEI understood the innovative nature of the project from the get-go and worked with us at every step to see us through to closing.” BRUCE STEDMAN Owner, Little River Flower Farm

CEI FINANCING: $480,000 for Greenhouse purchase and construction CEI TEAMS : CEI Investment Notes, Inc.; Lending & Investing, Sustainable Agriculture and Food Systems Program WEBSITES: littleriverflowerfarm.com archsolar.net

CEI 2015 ANNUAL REPORT

5

“CEI worked with us through the loan process, developing everything that goes into that. There were a lot of roadblocks, but they stuck with us the entire time - we didn’t quit, and they didn’t quit either. People stop by and they love seeing the cows out in the pasture, and they love seeing us milk the cows. There used to be four or five dairy farms here 30 years ago, and until we got here, there were no dairy farms, so it’s something that’s vanishing in the landscape in Maine. People are excited to see it coming back.” CONOR MACDONALD Co-owner, Bo’Lait Farm

Bo’Lait Farm

WASHINGTON, MAINE

Maine’s grassy, rocky pastures have supported dairy herds for centuries, contributing to a long history of dairy farming. In recent decades, however, Maine has been losing dairies at a steady pace. Since dairy is largely considered the backbone of agriculture infrastructure, the loss of dairy farming can be devastating to agriculture as a whole. Despite this challenging economic reality, bright spots dot the landscape. Bo’Lait Farm is one of them—a ray of hope to a sector in decline – illustrating the future of dairy and agriculture in our rural Northeastern state.

In launching Bo’Lait, Conor and Alexis Macdonald are bringing life back to a farm that had been out of operation since the mid-1970s. With extensive farming and animal husbandry experience, they represent the next generation of organic dairy farmers building viable, profitable farm businesses, and continually striving to adopt best herd health and pasture management practices. Certified as an organic dairy by Maine Organic Farmers and Gardeners Association (MOFGA), Bo’Lait sells milk to Organic Valley, the leading source of organic milk in the nation.

CEI FINANCING: $168,600 for 45 organic dairy cows, a new barn, and milking parlor equipment CEI TEAMS: Sustainable Agriculture and Food Systems Program, Lending and Investing, CEI Investment Notes, Inc., Business Development Services PARTNERS: Farm Services Agency 6

CEI 2015 ANNUAL REPORT

Lana’i Community Health Center To reach Lāna’i, Hawaii’s smallest publicly-accessible inhabited island, there are two options: a $200 roundtrip flight from Honolulu or a $60 ferry ride from Maui. For the 44% of the island’s population that live at or below 200% of the Federal Poverty Level, the only option for affordable on-island health care is the Lāna’i Community Health Center (LCHC). LCHC previously operated out of a converted three-bedroom home, unable to provide adequate healthcare to the remote island community. Missing services included obstetrics, mammography, psychiatry, inpatient substance abuse treatment, and oral health care. Typically, babies were born in Honolulu or Maui, and mothers-to-be relocated preterm to avoid endangering themselves or their babies.

LANA’1, HAWAII

In order to improve access in this remote rural community, CEI Capital Management LLC (CCML) utilized the New Markets Tax Credit (NMTC) program to attract private capital to the project, constructing a 6,800 square foot health care facility built to LEED standards. The facility nearly doubles LCHC’s patient capacity, accommodating 856 additional patients annually. It includes nine exam rooms, dental x- ray machinery, two dental operatories, lab facilities, conference and administrative offices and a community activity room.

“CEI’s show of faith in our organization and our project was tremendous. This was a complicated project and it would have been easy to walk away, but CEI stayed involved, listened to the truth, and proceeded with our project. Mahalo nui loa, Maraming Salamat. We are forever grateful for CEI’s efforts and belief.” DIANE V. SHAW, PhD, MBA, MPH, FACMPE Executive Director, Lana`i Community Health Center

NEW MARKET TAX CREDIT INVESTMENT: $8 million COMMUNITY BENEFIT: $80,000 to support an internship program CEI TEAM: CEI Capital Management LLC PARTNERS: U.S. Bancorp Community Development Corporation, Pacific Growth Associates

CEI 2015 ANNUAL REPORT

7

“Without CEI, this project never would have flown. It was clear from the start that CEI had an in-depth knowledge of the fishing industry and understood the importance of preserving the working waterfront.” HALE MILLER Co-owner, Millers’ Wharf

Millers’ Wharf Lobster LLC By all measures Maine’s lobstering industry is an economic powerhouse, providing thousands of jobs and adding more than $1 billion annually to the state’s economy. This bright picture, however, belies two startling statistics: a very small percentage of Maine’s 3,500 mile coastline provides commercial access to fishermen and nearly half the licensed lobstermen are over the age of 50. Transitioning this industry to the younger generation, while preserving working waterfront access, is crucial to the future of Maine’s economy. Purchased in 1978, Millers’ Wharf in Tenants Harbor serves as home base for a lobstering business operated by the four Miller brothers and their extended families.

CEI FINANCING: $150,000 Loan for wharf expansion and dredging. CEI TEAMS: Sustainable Fisheries and Aquaculture Program, Lending and Investing PARTNERS: Key Bank, Maine Department of Marine Resources, Land for Maine’s Future Program

8

CEI 2015 ANNUAL REPORT

TENANTS HARBOR, MAINE Over twelve years, CEI worked closely with the Millers, providing a loan in partnership with Key Bank to expand the wharf and dredge so that bait and catch can be off-loaded regardless of the tide. With CEI financing, the Millers added four hoists, increasing efficiency and the number of boats they could serve. CEI also helped the Millers secure the property through the Working Waterfront Access Protection Program, ensuring access not only for future generations of Miller fishermen, but to other Tenants Harbor fishermen as well.

NativeEnergy

BURLINGTON, VERMONT

Global water resources are under pressure due to dramatic increases in demand and climate change. The World Bank notes that about 700 million people lack access to safe drinking water. That number is expected to rise as water scarcity and sanitation issues plague developing countries. NativeEnergy develops, structures, and finances impact projects providing investment opportunities that further the sustainability and business goals of its corporate partners. The company’s water filter distribution projects in Kenya, Ghana, Ethiopia, India, and Honduras help prevent waterborne illness, a leading cause of

death for young children. Families in these countries have to make a daily choice: use polluting woodstoves, fueled by scarce and expensive charcoal or wood to purify their water, or risk serious disease. NativeEnergy brings private-sector funding to solutions that reduce greenhouse gases and give families sustainable, healthy alternatives. With help from CEI’s Sustainable Agriculture and Food Systems program, NativeEnergy got a CEI loan that positioned them for a $250,000 investment from CEI Ventures to expand project origination and development capabilities.

“CEI is an ideal partner for NativeEnergy. Their long-term view on sustainability and understanding of the impact investing space provides value to our evolving Corporate Impact Investment practice. We look to them not only as a board member but also a business partner.” JEFF BERNICKE CEO and President Native Energy

CEI VENTURES INVESTMENT: $250,000 for working capital and expansion CEI TEAMS: CEI Ventures, Inc., Sustainable Agriculture and Food Systems Program PARTNERS: FreshTracks Capital and Village Ventures CEI 2015 ANNUAL REPORT

9

“It has been a blessing to have a CEI StartSmart business counselor on my team. My business counselor and mentor Tae Chong has been my biggest cheerleader – he is insightful, experienced, and always has my company’s best interests at heart.” NAIMA ABDIRHMON Owner, ARWO Learning Center, LLC

ARWO Learning Center At ARWO Learning Center, located in Portland, Maine, you find faces of the future: ARWO’s young charges, and its founder, Naima Abdirhmon, who immigrated here from Somalia. Naima’s mother, a successful business owner, was one of StartSmart’s first clients. Naima attended Portland public schools and then earned a Doctorate of Pharmacy Degree from University of New England. While volunteering at Deering High School, she decided she also wanted to educate young people and help them succeed. And with that, ARWO Learning Center was born.

PORTLAND, MAINE  ARWO opened in April 2015 on Forest Avenue, a hub for immigrant and refugee businesses in the city. In just under a year, the center has grown to an enrollment of 47 children. ARWO means “prosperous” in Somali—the center’s wish for every child in its care. Naima worked closely with CEI’s StartSmart business development program for immigrants and refugees and the Portland Jobs Alliance to identify, train, and hire six staff members, including five new Mainers.

CEI FINANCING: $35,000 working capital loan CEI TEAMS: StartSmart, Workforce Solutions, Lending and Investing PARTNERS: Portland Jobs Alliance WEBSITE: arwochildcare.com 10

CEI 2015 ANNUAL REPORT

Done Roving

CHARLOTTE, MAINE

Artesan, hand-painted yarn is a premier product for knitters, highly coveted for its unique attributes and character. Paula and Stephen Farrar of Charlotte, Maine, a small town in rural Washington County, capitalized on the market demand for this niche product to build a successful business. Former organic sheep farmers, the Farrars purchase almost all of their wool from small domestic farms in the area. With help from CEI’s Women’s Business Center (WBC), the Farrars built their fledgling home business from the ground up, starting in their basement in 2011. Four years later,

Paula and Stephen were recognized as the New England and Maine SBA 2015 Home-Based Business Champions of the Year and subsequently moved Done Roving into a 5,000 square-foot stateof-the-art manufacturing facility. “With a strategic plan, diligence, and creativity, the Farrars methodically grew their business, taking on sales representatives from competitors who had closed and innovating with new products,” says WBC Business Counselor Ruth Cash-Smith.

“Running any business is challenging. Running a business with your spouse can be even more so. Ruth [CashSmith] helped us build on our individual strengths and kept us focused on our plan and growth strategy. She understood the nature of our business as well as our challenges and opportunities.” PAULA FARRAR Owner, Done Roving

CEI Participation: 42 hours of business advising CEI TEAM MEMBER: Women’s Business Center at CEI PARTNERS: Camden National Bank, U.S. Small Business Administration WEBSITE: doneroving.com

CEI 2015 ANNUAL REPORT

11

“From my first visit with CEI Small Business Development Center counselor Janet Roderick as a

Blue Ox Malthouse

LISBON FALLS, MAINE

budding entrepreneur, through our successful loan application, CEI has been an integral support system for growing our company–it still is.” JOEL ALEX Owner and founder, Blue Ox Malthouse

The remarkable resurgence of craft breweries over the past decade sparked founder Joel Alex’s dream of using local grains in the crafting process. With financing from CEI and CEI Investment Notes, Inc., and support from numerous individuals and organizations in Maine and beyond, Blue Ox Malthouse is poised to become the premier supplier of conventional and organic malt from Maine-grown grains. The company connects the 5,000 acres (equivalent to 14 million lbs. or 7,000 tons) of malting barley grown in Maine to the $35

million in-state market opportunity of Maine-based breweries. Blue Ox Malthouse also provides an ancillary benefit to Maine’s agriculture sector by creating a market and increased opportunity to supply more crops to local retailers. In addition to financing 40 percent of the debit capital for Blue Ox Malthouse’s equipment costs and line of credit, CEI’s Business Development Services and Sustainable Agriculture and Food Systems program advised Joel throughout the earliest stages of this compelling business startup.

CEI TEAMS: Business Development Services, Sustainable Agriculture and Food Systems Program, Lending and Investing, CEI Investment Notes, Inc. PARTNERS: Maine Institute of Technology, Maine Center for Entrepreneurial Development, Maine Manufacturing Extension Project, Maine Grain Alliance, Libra Foundation and many others 12

CEI CEI 2015 2015 ANNUAL ANNUAL REPORT REPORT

WEBSITE: blueoxmalthouse.com

C E I S TA F F ADMINISTRATION and GENERAL MANAGEMENT Officers Ronald L. Phillips, President & CEO Corenna Howard, COO David Wedick, CFO Accounting Crystal Burnham, Senior Staff Accountant Debra J. Gibb, Director of Accounting David A. Pease, Housing Staff Accountant Beth L. Raburn, Accounting Administrator Jessica D. Stover, Accounting Administrator Izabela Werner, Staff Accountant Mark Wrenn, Staff Accountant Data Management Kevin Smith, Data Analyst Human Resources Sarah Brown, HR Generalist Colleen Ippolito, Director of HR Office Keith Burrell, Office Coordinator Michelle Smith, Special Projects Coordinator Policy, Research and Corporate Development Keith R. Bisson, SVP, Program Management & Development Laura Buxbaum, SVP, Public Policy & Resource Development Carla B. Dickstein, SVP, Research & Policy Development Elizabeth Rogers, SVP, Marketing & Communications Information Technology Jesse Cole, Director Eric Cordeiro, Systems Administrator Jeremy Johnson, Systems Administrator

BUSINESS DEVELOPMENT SERVICES Jennifer L. Sporzynski, Senior Program Director Maine Small Business Development Center Betty J. Egner, Certified Business Advisor Thomas L. Gallant, Bangor Center Director, Certified Business Advisor David R. Hill, Center Director, Certified Business Advisor J. Ann McAlhany, Certified Business Advisor Janet M. Roderick, Certified Business Advisor W. Bradshaw Swanson, Maine Master Certified Business Advisor StartSmart Tae Chong, Certified Business Advisor Jill M. Lorom, IDA Project Coordinator John E. Scribner, Director, Business Advisor Women’s Business Center Ruth Cash-Smith, Certified Business Advisor Betty J. Gensel, Program Director, Certified Business Advisor Kate Curran, Training & Outreach Coordinator Sarah Guerette, Program Director, Certified Business Advisor LENDING & INVESTING Thomas P. Burnham, Director, Loan Quality & Compliance Michelle L. Chartier, Loan Services Administrator John Egan, SVP, Lending & Investing Mark A. Jennings, Loan & Investment Officer Sarah Matel, Chief Credit Officer Cole Palmer, Loan & Investment Officer Bethany A. Richards, Loan Group Administrator

Tyrell A. Russell, Loan Services Administrator Arthur M. Stevens III, Loan & Investment Officer HOUSING COUNSELING & EDUCATION Margaret J. Grant, Administrative Assistant Linda E. LaJoie, Housing Counselor Mechelle I. Nash, Housing Counselor Jason W. Thomas, Director HOUSING & PROPERTY MANAGEMENT Chris Kelley, Construction Analyst NATURAL RESOURCES & SUSTAINABLE COMMUNITIES Sustainable Agriculture & Food Systems Gray Harris, Director Daniel E. Wallace, Associate Director Sustainable Fisheries & Aquaculture Richard D. Clime, Project Developer, Working Waterfront Hugh S. Cowperthwaite, Director, Fisheries Project WORKFORCE SOLUTIONS Christa S. Baade, Program Developer Elizabeth Love, Program Developer Paul J. Scalzone, Director SUBSIDIARIES AND AFFILIATES CEI Capital Management LLC Tad S. Atwell, Executive Vice President, Lending & Investments Aimee E. Cates, Asset & Relationship Manager Elizabeth Chenevert, Compliance Assistant Patricia Crafts, Office Manager & Executive Assistant

Thomas J. Dolan, COO Jane Elvidge, Staff Accountant Didier P. Hakizimana, Senior Accounting Manager David A. Hays, CFO Jackie Lynds, Treasury and Loan Servicing Manager D. Jesse McKinnell, Revenue & Fund Development Officer Charles J. Spies III, CEO Leah B. Thibault, Director, Executive Administration & Special Projects Marilyn H. Thomas, Senior Asset & Relationship Manager Traci R. Vaine, Chief Compliance Officer Ruth E. Vinal, Accounting & Cash Manager Niels Zellers, Revenue & Fund Development Officer CEI Community Ventures, Inc. Nathaniel V. Henshaw, Manager CEI Investment Notes, Inc. Elizabeth Rogers, Managing Director CEI Ventures, Inc. Thao H. Duong, Fund Administrator Nathaniel V. Henshaw, President Chandler Jones, Principal CEI 7(a) Financing LLC Mary Childs-Mayer, SVP, Origination & Relationship Manager Charles J. Spies III, President Colette Twigg-Rowse, SVP, Portfolio & Credit Manager F. Robert Wilson, CEO

CEI 2015 ANNUAL REPORT

13

C E I B OA R D S Non-CEI affiliations are provided for information only CEI Board of Directors David L. Bennell, Freeport, ME VALUE CHAIN ADVISORS Betsy Biemann, Brunswick, ME (Vice Chair) Harvard University Erin Cooperrider, Edgecomb, ME Community Housing of Maine, Inc. Glenn Cummings, Portland, ME University of Southern Maine Laura C. Foye, Cape Elizabeth, ME TD Bank Karin A. Gregory, Biddeford, ME Furman Gregory Deptula Susan Hammond, Bangor, ME Four Directions Development Corp. Dwight G. Havey, Falmouth, ME Capricorn Products, Inc. Susan B. Inches, No. Yarmouth, ME Tilson Scott Kenney, Gray, ME Farm Credit East Kevin Lewis, Winthrop, ME Community Health Options John A. Moore, Orono, ME Bangor Savings Bank Chip Newell, Portland, ME New Height Group Ronald L. Phillips, Waldoboro, ME CEI Peter R. Pitegoff, Yarmouth, ME University of Maine School of Law Cordelia T. Pitman, R.A., LEED AP, Portland, ME Wright-Ryan Construction, Inc. Ellen Seidman, Washington, DC (Chair) Urban Institute David Vail, Brunswick, ME Bowdoin College Emeritus Christa Velasquez, Chicago, IL University of Chicago Ian Yaffe, Ellsworth, ME Mano en Mano CEI General Counsel Michael E. High, Portland, ME DrummondWoodsum

14

CEI 2015 ANNUAL REPORT

CEI National Target Market Advisory Board of Directors Suzanne Anarde, Fowler, CO Rural LISC Cathy Dolan, Philadelphia, PA Opportunity Finance Network Jim Ferris, Silver Springs, MD NeighborWorks Capital Susan Hammond, Orono, ME Four Directions Development Corporation Moises Loza, Washington, DC Housing Assistance Council Hubert Van Tol, Rochester, NY PathStone Kenneth A. Willis, Boston, MA Federal Home Loan Bank of Boston CEI Capital Management LLC Board of Directors Robert A. Burgess, Portland, ME Bangor Savings Bank Elaine DiPietro, Columbia, MD Enterprise Community Investment, Inc. Laura C. Foye, Cape Elizabeth, ME TD Bank Lisa C. Hook, Portland, ME People’s United Bank Corenna Howard, Hallowell, ME CEI Marten R. Jenkins, Shepherdstown, WV Natural Capital Investment Fund, Inc. Erin M. Piper, Portland, ME (Chair) Maine Public Employee Retirement System Carlton N. Owen, Greenville, SC U.S. Endowment for Forestry and Communities Ronald L. Phillips, Waldoboro, ME CEI Matthew Polstein, Millinocket, ME New England Outdoor Center Christopher Sikes, Holyoke, MA Common Capital, Inc. David Wedick, South Portland, ME CEI CEI Capital Management LLC Advisory Board Will Belongia, Waterbury Center, VT Vermont Community Loan Fund Susan Hammond, Bangor, ME Four Directions Development Corp.

Michael S. Levine, Brooklyn, NY Local Initiatives Support Corporation Jennifer Novak, Minneapolis, MN Community Reinvestment Fund, USA Sheila T. Saxton, Bethesda, MD Calvert Foundation Scott Sporte, Oakland, CA NCB Capital Impact Hubert Van Tol, Rochester, NY PathStone Enterprise Center CEI Community Ventures, Inc. Board of Directors Timothy P. Agnew, Yarmouth, ME Masthead Venture Partners John F. Burns, East Blue Hill, ME Maine Venture Fund Nathaniel V. Henshaw, Brunswick, ME CEI Ventures, Inc. Ronald L. Phillips, Waldoboro, ME CEI CEI Investment Notes, Inc. Board of Directors David L. Bennell, Freeport, ME Value Chain Advisors John Egan, Freeport, ME CEI Ellen Golden, Woolwich, ME CEI Investment Notes, Inc. Corenna Howard, Hallowell, ME CEI Chip Newell, Portland, ME The NewHeight Group Ronald L. Phillips, Waldoboro, ME (Chair) CEI Kenneth Spirer, Portland, ME David Wedick, South Portland, ME CEI CEI Investment Notes, Inc. Advisory Board Maria Arabatzis, Boston, MA Fresh Pond Capital Betsy Biemann, Brunswick, ME Harvard University Joel D. Davis, Hallowell, ME Cribstone Capital Management Nicole Dolan, Portsmouth, NH Veris Wealth Partners LLC Randall P. Rice, Boston, MA Trillium Asset Management

D. Robinson Snow, Cumberland Center, ME Concord Trust Company Alan Spear, Portland, ME Coffee By Design CEI Ventures, Inc. Board of Directors Elizabeth R. Butler, Brunswick, ME Butler Law Offices LLC Frank Governali, Cape Elizabeth, ME Karin A. Gregory, Biddeford, ME (Chair) Furman Gregory Deptula Corenna Howard, Hallowell, ME CEI Carlos Mello, Augusta, ME Finance Authority of Maine Ronald L. Phillips, Waldoboro, ME CEI Dean Plaisted, Kennebunk, ME F. Stephen Ward, Damariscotta, ME The First, N.A. David Wedick, South Portland, ME CEI CEI Ventures, Inc. Advisory Board Art Casavant, Bridgeport, CT People’s United Bank John C. Everett IV, Cape Elizabeth, ME KeyBank N.A. Deborah Jordan, Camden, ME Camden National Bank Carl Kopfinger, Philadelphia, PA TD Bank Bruce G. Nickerson, CPA, Bangor, ME Bangor Savings Bank CEI 7(a) Financing LLC Board of Directors Kevin Boes, Chicago, IL (Chair) LISC, New Markets Support Company Heidi DeArment, Missoula MT Montana Community Development Corporation Pender J. Lazenby, Falmouth, ME Sarah Matel, Bristol, ME CEI John A. Moore, Orono, ME Bangor Savings Bank Anna Tefft, Winston-Salem, NC Natural Capital Investment Fund, Inc. David Wedick, South Portland, ME CEI

DONORS CEI thanks the following entities who represent CEI’s past and current funding sources: Private Foundations, Nonprofits and Intermediaries 39th Street Giving Fund Aid to Artisans, Inc. The Harold Alfond Foundation American Express Foundation American Express Philanthropic Ameriprise Foundation Annie E. Casey Foundation Anonymous Aspen Institute Avesta Housing Bangor Savings Bank Foundation Bank of America Foundation The Betterment Fund The Bingham Program Birch Cove Fund Francis Hollis Brain Foundation Broad Reach Fund The Margaret E. Burnham Charitable Trust Calvert Social Investment Foundation Carpathian Foundation The Carrot Project Center for the Study of Social Policy Citizens Housing and Planning Association, Inc. Sam L. Cohen Foundation Community Development Venture Capital Alliance Corporation for Enterprise Development Jessie B. Cox Charitable Trust Edward Daveis Fund of the Maine Community Foundation Davis Conservation Fund Education Network of Maine Dwight D. Eisenhower Foundation Empower Lewiston Euphoria Revocable Trust Fannie Mae Fannie Mae Foundation Federal Home Loan Bank of Boston Ford Foundation Franklin Research & Development Corporation Genesis Community Loan Fund Georges River Estuary Goodwill Industries of Northern New England John T. Gorman Foundation Gulf of Maine Council on the Marine Environment The William Randolph Hearst Foundations Heifer International F. B. Heron Foundation Housing Assistance Council Housing Partnership Network Hudson Foundation Institute of International Education Institute for Social and Economic Development Island Institute Jane’s Trust W. K. Kellogg Foundation Stephen and Tabitha King Foundation The Kresge Foundation Emanuel & Pauline A. Lerner Foundation The Libra Foundation Lilly Endowment, Inc.

Local Initiatives Support Corporation Lutheran Social Services John D. and Catherine T. MacArthur Foundation Maine Bar Foundation Maine Community Foundation Maine Farmland Trust Maine Fishing Industry Development Center Maine Health Access Foundation Maine Initiatives Harvest Fund Maine SBDC Maine Technology Institute Maine Women’s Fund MaineShare The John Merck Fund The Monterey Fund Morton-Kelly Charitable Trust Charles Stewart Mott Foundation National Center for Appropriate Technology National Congress for Community Economic Development National Cooperative Bank National Economic Development and Law Center National Equity Fund National Farm to School Network National Fish and Wildlife Foundation National Network of Sector Practitioners National Rural Funders Collaborative Network for Good New England Housing Network Newman’s Own Foundation Northern Forest Center Opportunity Finance Network Paraprofessional Health Institute Penobscot East Resource Center People’s Regional Opportunity Program People’s United Community Foundation The Perkins Family Trust Richard F. Perkins Charitable Lead Trust Plum Creek Foundation The Rockefeller Foundation The Saint Paul Foundation Wicklow Fund The Sandy River Charitable Foundation The Schwab Charitable Fund Elmina B. Sewall Foundation Small Enterprise Growth Fund Smith Richardson Foundation Southern New Hampshire University The Sudbury Foundation Sunshine Hill Fund Surdna Foundation The Doree Taylor Charitable Foundation TD Charitable Foundation United Way of Mid Coast Maine Van Winkle Foundation Western Massachusetts Enterprise Fund Wholesome Wave Wiscasset Female Charitable Trust Women, Work and Community Religious Institutions American Baptist Churches USA Brunswick Friends Meeting Damariscotta Baptist Church The Episcopal Church First Universalist Church of Auburn Mennonite Mutual Aid – Community Development Investing Mercy Partnership Fund

National Council of Churches Domestic Working Group on Hunger and Poverty Pelham Fund for Economic Justice Second Congregational Church, Newcastle Sisters of Charity of Cincinnati Sisters of Charity of Iowa Sisters of Charity of St. Elizabeth Society of Mary St. Andrew’s Episcopal Church, Damariscotta St. Philip’s Episcopal Church, Wiscasset Unitarian Universalist Church, Veatch Foundation United Church of Christ, Bath United Methodist Church United Presbyterian Foundation U.S. Catholic Conference of Bishops Campaign for Human Development Businesses, Banks, and Individuals Alex Agnew Timothy Agnew Susan Alberg Androscoggin Savings Bank Androscoggin Trust and Head Invest Anonymous Maureen Anthoine-Orlandini Beth Ansheles Susan Avrutick Phil Bailey Camden National Bank Carilynn Balbo Bangor Savings Bank Bank of America Banknorth Group, Inc. Bar Harbor Bank and Trust Kevin Barton Bath Iron Works (A General Dynamics Company) Bath Savings Institution Jessica Bean L. L. Bean Daniel Beck Carol Bendall David Bennell Bernstein Shur Berry Talkbot Royer Betsy Biemann Big Sky Bread Company Keith Bisson Wendy Bloch Anna Bradbury Nancy Brain Katherine Branch Roberta Brezinski Tom Broussard Blake Brown Laura Browne Estate of Eric Bruum Deborah Burd Laura Buxbaum Paula Buxbaum Robert and Ann Buxbaum Camden National Bank Patricia Campbell Yoshi Campbell Sally Cartwright Arthur Casavant Ruth Cash-Smith Rosalie and David Cates Ann and John Carman Central Maine Power Company Anthony Chang

Mary Childs-Mayer Pierre Clavel Grace Cleaves and Michael Miles Harold Clossey Coastal Economic Development Corp. Brandon Collen Common Sense Computing, Inc. Community Concepts, Inc. Community Investment Associates Constant Contact Erin Cooperrider and Michael Mayne Diane Cowan Erica Crane cPort Credit Union Bill Creighton Brooke Curran Katherine Curran Curtis Thaxter LLC Damariscotta Bank & Trust Company Davidson Associates Joel D. Davis and Associates Leverett B. and Megan T. Davis, Jr. Nicole Davis William Dehais Carla Dickstein CohnReznick Dodge Cove Marine Farm, Inc. Drummond & Drummond LLP DrummondWoodsum & MacMahon Dudley Ventures Mil Duncan East Shore Studio & Print Caroline Eliot Jane Elvidge Mary Lynn Engel Emily Eschner Marya Faust Edward F. Feibel Deborah and Mark Felder Anne Finestone The First, N.A. First Federal Savings & Loan Association First National Bank of Damariscotta Five County Credit Union William Flood Susan Foote Gore Flynn Andrew Foster Laura Foye Sandy Galvan Robert H. Gardiner Gardiner Savings Institution Kathryn Gardner and Michael Newsom in the name of Virginia Newsom Ryan George Stephanie Gilbert William Ginn Thomas Gioia Ellen F. Golden Gorham Savings Bank Jody Gould Christen Graham Greater Portland Building Fund John and Katie Greenman Peter and Harriette Griffin Sarah Guerette Gigi Guyton Sarah Halpin Kenneth Handler Hannaford Brothers Elizabeth Hanscom Gray Harris Dwight Havey

Mary Ann Haxton Mary Ann Hayes Marsha Herman Heidi Hetz Michael High Hodgdon Yachts, Inc. The Home Depot Foundation Robinson G. Hollister Amanda Hollyday James Hollyday Lisa Hook Howe and Cahill Leslie Hunter Susan Inches and Bob Sessums Intuit JDA Consulting, Inc. Marten and Lucetta Jenkins Johnson & McCaa LLC David Jones Carolyn Kell Theresa Kelly Kennebec Valley Community Action Program Scott Kenney KeyBank N. A. Mitch Kihn Eleanor Kinney J. Edward Knight & Co. Carl Kopfinger Joy Kubit Mark Lapping Lanman Rayne PLLC Roger Levesque Michael Levine Peter Lord Donna Loring Martha Lynch Lyme Timber Mabe’s Kitchen, LLC Macdonald Page and Co. LLC Machias Savings Bank Maine Association of Realtors Foundation Maine Community Reinvestment Corp. Maine Hosting Solutions Maine Housing Investment Fund Maine Life Photography Maine Warmers LLC Maine Women’s Journal Maine Yankee Atomic Power Company Mainebiz Marine Trade Center MASS MoCA Steven Masters J. Ann McAlhany Janet C. McCaa, Esq. Diana McCain Richard McGoldrick David McKinnell Ryan McKisson MEMIC Merrill Lynch & Co., Inc. Metaphor Bronze Tileworks Rev. Carolyn and Dr. Eric Metzler Mark and Victoria Millar Wendy Miller S. Peter Mills Morgan Stanley Josephine Morrison Mt. Auburn Associates Heidi Murphy Justin Nadeau Ann Naimie NBT Bank

Neighborworks S.P. “Chip” Newell and Susan Morris Sally Newhall Bruce and Sharon Nickerson Eliza Cope Nolan Northeast Bank Northern New England Housing Fund Oakes & Parkhurst Glass Buck O’Herin Paul OLeary Nathan OLeary Lennart Olson OneBeacon Insurance Company Janet Parkhurst Richard Parkhurst Camille Parrish Michael Payson, Jr. Perkins Family Trust Ronald L. and Suzanne Phillips Linda Piper Peter Pitegoff and Ann Casady Cordelia Pitman Sandra Plette Plum Creek Foundation Portland Financial Planning Group, LLC Portland Models and Talent Portland Press Herald Preti Flaherty Susan Pullen F. L. Putnam Barbara Rachel Marlowe Rafelle K. Rain Craig Rancourt Robert Rapoza Frederick P. Rector III Catherine Renault Bethany Richards Ashley Robedee Rockland Savings Bank Elizabeth Rogers Sharon Rosen Sandra Rosenblith Ronald Robinette Ronald B. and Jeanne J. Russell Christopher St. John Sherene Salahshoor Nadine Salley Paul Scalzone Anthony Schmitz Ellen Seidman Karl Seidman Miriam Shark Shaw’s Supermarkets, Inc. Stephen Shea Kristel Sheesley Silly’s Skowhegan Savings Bank Cynthia Smith Kevin Smith Maggie Smith Snowdrift Farm Worldwide Sparkes Hearing Services Jorma Spaziano Charles Spies Kenneth Spirer Jennifer Sporzynski Stealthcat Computer Consulting Sandra Stone Sally Streuver Nancy E. Strojny Sundog Company Sunrise County Economic Council

CEI 2015 ANNUAL REPORT

15

W. Bradshaw Swanson Annee Tara and Tom Rumpf TD Bank, N.A. Tides Foundation – Exploring Elf Tompkins, Clough, Hirschon & Langer Tom’s of Maine Carrington Tutwiler Union Trust UNUMProvident Corporation U.S. Trust Corporation US Bank Community Development Corp. David and June Vail Verizon Foundation Village Veterinary, Inc. Vino Bodega, Inc. Gary Vogel Wachovia Daniel Wallace Lisa Wallace Jennifer Walker Ashley Ward F. Stephen Ward Matthew and Anne Ware Warren, Currier & Buchanan Estate of Lee S. Waterman Lee Webb David Wedick Wells Fargo Izabela Werner Shane Whalen Catherine Whitney Bo Yerxa Jennifer Young Diane York Ethan Zuckerman Local, State, Federal, and Tribal Government Sources City of Auburn, Maine City of Bangor, Maine City of Bath, Maine City of Clyde, Kansas City of Lewiston, Maine City of Portland, Maine City of Rockland, Maine Corporation for National and Community Service Finance Authority of Maine Four Directions Development Corporation Hancock County Planning Commission Lewiston Housing Authority Lincoln County Commissioners Lincoln County Regional Planning Commission Lincoln County – State of Maine Maine Bureau of Consumer Credit Protection Maine Bureau of Vocational Education Maine Commission for Community Service Maine Community College System Maine Department of Agriculture, Conservation and Forestry Maine Department of Behavioral and Developmental Services Maine Department of Economic and Community Development Maine Department of Education Maine Department of Environmental Protection

16

CEI 2015 ANNUAL REPORT

Maine Department of Labor Maine Department of Marine Resources – Land for Maine’s Future Program Maine Department of Transportation MaineHousing Maine Office of Energy Independence and Security Maine Office of Multicultural Affairs Maine Office of Tourism Maine Science and Technology Foundation Maine State Housing Authority Maine State Planning Office, Coastal Program Maine Treasurer’s Council on Financial Literacy Mount Desert Island and Ellsworth Housing Authorities National Oceanic and Atmospheric Administration Fisheries Aquaculture Program Fisheries Saltonstall Kennedy Grant Program National Sea Grant College Program – University of Maine New Hampshire Department of Health and Human Services – Office of Minority Health and Refugee Affairs Southwest Harbor Housing Authority Tanana Chiefs Conference, Inc. Town of Boothbay, Maine Treasure Coast Regional Planning Commission U.S. Agency for International Development U.S. Department of Agriculture, Rural Development Cooperative State Research, Education and Extension Service Risk Management Agency Rural Economic and Community Development Program Trade Adjustment Assistance Program U.S. Department of Commerce Economic Development Administration U.S. Department of Health and Human Services Administration for Children and Families, Child Care Bureau Office of Community Services, & Office of Refugee Resettlement U.S. Department of Housing and Urban Development U.S. Department of Labor, Employment and Training Administration U.S. Department of the Treasury, CommunityDevelopment Financial Institutions Fund U.S. Environmental Protection Agency U.S. Gulf of Maine Association U.S. Small Business Administration University of Maine Westbrook Housing Authority Investors, CEI Community Ventures Fund LLC Coastal Enterprises, Inc. Community Development Venture Capital Alliance Finance Authority of Maine John D. and Catherine T. MacArthur Foundation Maine Employers Mutual Insurance

Company The Sandy River Charitable Foundation U. S. Small Business Administration The Vermont Community Foundation Investors, CEI Investment Notes, Inc. Anonymous Aileen and Tim Agnew Barbara Asnes JoAnne and Michael Bander Bangor Savings Bank The Betterment Fund Betsy Biemann James G. Blaine Fran Bodell Samuel F. Brown Robert C. and Ann Buxbaum Patricia L. Campbell Ann R. Carman Circle of Friends Trust Clients of Fresh Pond Capital Clients of the Sustainability Group Clients of Trillium Asset Management Clients of Veris Wealth Partners Coastal Enterprises, Inc. William Creighton Susan M. Deutsch Michael L. and June Pasternack Finnegan Gore Flynn The Frances Fund Odette Galli Ellen F. Golden Carol Goloff Jim Graham Karin Gregory Peter and Harriette Griffin Deborah Y. Hawthorn J. Christopher Hormel Lois and Albert Howlett Michael Herz and Kate Josephs Susan B. Inches John and Linda Isaacson Anne and Steve Kemper Peter Lamb and Faith Harrington Adam and Diana Lee Catherine Lee and Robert Moyer Jonathan S. Lee Joan Leitzer Steven Lydenberg Mark Millar Jeanne Miller Greg and Linda Millert Susan Morris Chip Newell Karen E. Orso Parnassus Core Equity Fund Pax World Balanced Fund Tina Petra Ronald L. and Suzanne C. Phillips Sydney and Terry Plum Ellen Remmer Sarah Rheault The Rocking Moon Foundation Margaret Rosenau Bonnie Rukin The Sandy River Charitable Foundation The Schocken Foundation Jennifer Schuberth and John Urang Ellen Seidman Sarah Shed Hildy J. Simmons Alison Smith

Kenneth Spirer Emily Swan Betts Swanton Annee Tara Carlisle Towery Martha Tracy Suzanne Trazoff Benjamin and Mariana Tupper June and David Vail Carol Wishcamper Ian Yaffe Investors, Coastal Ventures Limited Partnership Androscoggin Savings Bank Anonymous Bangor Savings Bank Bank of America Bath Savings Institution The Bingham Betterment Fund Calvert Social Investment Foundation Coastal Enterprises, Inc. Kennebunk Savings Bank Key Community Development Corporation KeyBank N. A. NCB Capital Impact Jessie Smith Noyes Foundation The Sandy River Charitable Foundation TD Bank N.A. Investors, Coastal Ventures II LLC Anonymous (3) Bangor Savings Bank Bank of America Bar Harbor Bank & Trust Bath Savings Institution The Bingham Betterment Fund Camden National Bank Coastal Enterprises, Inc. Community Development Venture Capital Alliance Central Fund Finance Authority of Maine The First, N.A. Gorham Savings Bank Kennebec Savings Bank Kennebunk Savings Bank KeyBank N.A. John D. and Catherine T. MacArthur Foundation Machias Savings Bank People’s United Bank Opportunity Finance Network TD Bank, N.A. The Sandy River Charitable Foundation Skowhegan Savings Bank Investors, Coastal Ventures III Limited Partnership Anonymous (8) Bangor Savings Bank Bar Harbor Bank & Trust Bath Savings Institution Calvert Social Investment Fund Camden National Bank Coastal Enterprises, Inc. Finance Authority of Maine The First, N.A. Gorham Savings Bank Katahdin Trust Kennebec Savings Bank

Kennebunk Savings Bank Machias Savings Bank Norway Savings Bank People’s United Bank Saco & Biddeford Savings Institution The Sandy River Charitable Foundation Sanford Institution for Savings Skowhegan Savings Bank TD Bank, N.A. Operational Assistance, CEI Community Ventures LLC Brown & Company Chittenden Bank Coastal Enterprises, Inc. Cook, Little, Rosenblatt and Manson Cope & Associates, Inc. Ernst & Young Ethos Marketing & Design Gallagher Flynn & Company LLP Headwaters Strategy LLC Michael Horvath Maine Department of Environmental Protection New Hampshire Community Development Finance Authority Pierce Atwood LLP Rooks Communication Surdna Foundation University of Maine University of Southern Maine Small Business Technology Development Center University of Vermont Yale Goldman Sachs Nonprofit Business Plan Award Tax Credit Investors/Lenders, CEI Capital Management LLC Appalachian Mountain Club (AMC) American Process, Inc. Andover Holdings Associated Hardwoods, Inc. Axio Green LLC Bangor Savings Bank Bank of America, N.A. Bank of Western Massachusetts BBP Financing LLC BLD Properties The Boston Conservatory Capital Hotel Company Capital Regional Development Council Capmark Capital, Inc. CEI Housing, Inc. Champlain Housing Trust Citibank, N.A. Citicorp USA , Inc. Citizens Bank of Massachusetts Claremont Development Authority Commonwealth Dairy Holdings Community Guaranty Savings Bank The Conservation Fund Cooperative Fund of New England COUNTRY Mutual Insurance Company Crowley Development LLC Curators of the University of Missouri DaniMer Scientific, LLC Educare Central Maine Emmi (USA ) Inc. First Colebrook Bank The First, N.A.

Foremost Farms Franklin Savings Bank Galvan Initiatives Foundation GE Commercial Finance Genesis Community Loan Fund Habitat for Humanity Hartland Group Horsehead Corporation Housing Vermont Ingraham JP Morgan Chase Katahdin Trust Company Kestrel Aircraft Co. KeyBank N.A. Lewiston/Auburn Economic Growth Council Local Enterprise Assistance Fund Lyme Timber Company Marshall Engines, Inc. Mascoma Savings Bank Morgan Stanley The Nature Conservancy NCB Capital Impact New Forest Renewable New Hampshire Business Finance Authority New Hampshire Community Development Finance Authority New Hampshire Housing Finance Authority NewWood Corp. Northampton Cooperative Community Market Ochoco Lumber Company Ohio National Life Insurance Company PBS Lumber Holdings LLC Pioneer Valley Solar LLC PowerPay RC Funding Richford Health Center Rochester Economic Development Corp Sovereign Bank Speare Memorial Hospital Stearns Bank, N.A. TD Bank, N.A. Trans Pecos Banks Trust for Public Land TransCapital U.S. Bancorp Community Development Corp. USDA Rural Development Vermont Community Loan Fund Vermont Economic Development Authority Wainshal Partners LLC Wainwright Bank Webb Development of Buffalo Wells Fargo Community Investment Holdings LLC Western Massachusetts Enterprise Fund The Westervelt Company White Mountain Apache Timber Woodland Finance Co., LLC Woodsville Guaranty Savings Bank Worcester Center for Performing Arts, Inc. ZeaChem, Inc.

COASTAL ENTERPRISES, INC. AND SUBSIDIARIES Consolidated Statements of Financial Position September 30, 2015 (with comparative totals as of September 30, 2014) ASSETS Current Assets Cash and cash equivalents Accounts receivable, net of allowance Interest receivable Notes receivable, current portion Grants receivable Prepaid expenses Total Current Assets

2015 $25,185,746 3,951,011 718,928 5,527,840 624,317 272,275 36,280,117

2014 $22,904,315 3, 583,349 679,066 3,143,532 646,755 208,093 Management has prepared 31,165,110 and is responsible for

Land, Property and Equipment, Net

21,147,522

Other Assets Notes receivable, net of current portion and net of loan loss reserve Restricted cash Due from affiliates Investments Security deposits Deferred tax asset Intangible asset (SBLC license) Total Other Assets

27,904,965 8,602,397 149,058 24,494,547 74,850 8,902 1,000,000 62,234,719

59,748,799

$119,662,358

$106,608,133

LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Accrued expenses Long-term debt, current portion Line of credit Deferred fee income Unapplied grant funds Total Current Liabilities

$1,323,776 1,467,493 16,114,236 1,035,219 2,807,561 2,216,748 24,965,033

$259,059 1,110,395 12,523,171 1,035,219 2,761,657 2,016,463 19,705,964

Other Liabilities Security deposits Subordinated debt Long-term debt - net of current portion Total Other Liabilities Total Liabilities

65,862 3,216,000 48,504,954 51,786,816 76,751,849

60,074 3,315,963 40,653,280 44,029,317 63,735,281

Net Assets Unrestricted net assets, controlling interests’ portion Temporarily restricted net assets Permanently restricted net assets Subtotal - net assets of controlling interests Unrestricted net assets, non-controlling partners’ capital Total Net Assets

31,847,139 2,707,792 2,956,187 37,511,118 5,399,391 42,910,509

29,905,889 3,781,738 2,956,187 36,643,814 6,229,038 42,872,852

$119,662,358

$106,608,133

TOTAL ASSETS

TOTAL LIABILITIES AND NET ASSETS

15,694,224

28,688,609 10,484,762 326,371 20,182,646 57,150 9,261

the condensed financial information and selected financial data which are presented in this report. The data is excerpted from complete financial statements audited by Macpage LLC. The reader wishing for further information about Coastal Enterprises, Inc. and its subsidiaries should contact our office.

CEI 2015 ANNUAL REPORT

17

COASTAL ENTERPRISES, INC. AND SUBSIDIARIES Consolidated Statements of Activities September 30, 2015 (with comparative totals as of September 30, 2014)

Revenues Interest and dividend income Federal and state sources Private/public sources Rental income In-kind income Fee income Other revenue Forgiveness of debt Realized gain on investments Net change in unrealized appreciation (depreciation) of investments Total Revenues Expenses Salaries and fringe benefits Consultants and contract services Provision for loan losses Provision for bad debts- net Interest expense In-kind service expense Grants to third parties Depreciation and amortization expense Travel Office expense Occupancy Communication expense Staff and Board development Advertising and promotion Insurance Property taxes Operating and maintenance expense Organizational costs Income taxes Miscellaneous expense Total Expenses Increase (Decrease) in Net Assets Before Activities of Noncontrolling Interests Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings Increase (Decrease) in Net Assets, Controlling Interests Net Assets Beginning of Year (Restated) Noncontrolling Partners’ Net Capital Distribution Activities of Noncontrolling Interests Noncontrolling interests in Subsidiaries’ earnings Net Assets End of Year 18

CEI 2015 ANNUAL REPORT

2015 $2,171,312 2,839,517 2,803,914 1,307,259 173,284 6,843,701 361,761 266,868 871,031 115,848 17,754,495

2014 $1,832,935 2,575,955 1,526,342 1,265,448 41,157 8,440,835 518,256 266,868 8,358,348 (4,246,018) 20,580,126

8,568,310 1,493,171 1,213,849 (153) 1,689,342 143,237 131,752 502,111 277,071 358,644 567,295 245,728 133,598 144,378 480,981 175,285 468,529 98,928 831 141,237 16,834,164

8,720,383 1,373,133 1,056,822 (17,901) 1,434,077 91,793 14,474 457,927 288,577 365,558 663,925 214,698 135,256 163,557 454,002 161,780 477,279 254,488 (1,636) 166,085 16,474,277

920,331 (53,027) 867,304 42,872,852 (882,674)

4,105,849 (2,254,295) 1,851,554 45,091,416 (6,324,413)

53,027 2,254,295 $42,910,509 $42,872,852

CUMULATIVE CEI SHARE OF FINANCING AND LEVERAGE

CEI CUMULATIVE LENDING AND INVESTING BY FISCAL YEAR CEI 33% $1.2

LEVERAGE 67%

$1.0

$1.00 CEI Financing Leverages $2.03 From Other Sources

$0.8

HOUSING $0.6

2015 SOURCES OF REVENUE

VENTURE MICROLENDING

9%

$0.4

SMALL/MEDIUM ENTERPRISE 24%

$0.2

41%

7% 13% 2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

$0 1977

BILLIONS

NEW MARKETS TAX CREDITS

6%

INTEREST & DIVIDEND

FEDERAL & STATE

FEE INCOME

PRIVATE

RENTAL INCOME

OTHER

CEI 2015 ANNUAL REPORT

19

The board and staff of CEI value diversity in all aspects of program participation and employment. CEI is an equal opportunity lender, provider and employer.

Coastal Enterprises, Inc. (CEI) is a missiondriven lender and investor specializing in rural economic development in Maine and throughout the U.S. CEI combines financing, advising services and policy leadership to help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.

30 FEDERAL STREET, SUITE 100 BRUNSWICK, MAINE 04011 207.504.5900 207.882.7308 fax [email protected] www.ceimaine.org © Copyright 2016 Coastal Enterprises, Inc.