Branch Locations Bethel
Our strength is our future 24 Grassy Plain Street
203.830.4230
79 Stony Hill Road
203.798.7232
Bridgewater
29 Main Street South
860.210.4124
Brookfield
200 Federal Road
203.775.5219
828 Federal Road
203.740.4436
226 Main Street*
203.830.4200
158 Main Street
203.830.6935
100 Mill Plain Road
203.830.4220
71 Newtown Road
203.830.6955
126 North Street
203.830.4210
Kent
15 Kent Green Blvd
860.927.3529
New Fairfield
24 Route 39
203.746.7913
New Milford
164 Danbury Road
860.355.1842
41 East Street
860.210.2670
Newtown
1-A Commerce Road
203.426.4414
Ridgefield
100 Danbury Road
203.431.5948
Sharon
5 Gay Street
860.364.5555
Southbury
406 Main Street South
203.264.2002
Danbury
2007 Annual Report
* Main Office
Member
FDIC
1-866-872-1866 unionsavings.com
EQUAL HOUSING
LENDER
growing needs of our customers. An ongoing focus on electronic banking brought enhancements to the internet banking channel, an upgrade to our website, and the installation of flat-panel screens that enable us to better communicate with customers in our offices. This focus will continue in 2008, as we upgrade the capabilities of USBonline for consumers and businesses. 2008 will also bring upgrades to a number of our branches, including
A letter from the President
construction of a new facility on North Street in Danbury. A second ongoing area of focus is our commitment to outstanding customer service. We believe that delivering
Dear Customers and Friends,
‘above and beyond service’ is a key goal for any customer interaction with Union Savings Bank. And thanks to the efforts
I am pleased to report that 2007 was another successful
of everyone, especially our human resource management
year for Union Savings Bank, as we achieved net income of
team who helps find and retain stellar employees, we
$8.5 million. I share this news with great pride as I reflect on
achieve this goal on a daily basis.
the commitment shown by our employees, trustees and corporators who helped make it possible. The difficult times that our industry saw in 2007 tested the true strength of all financial institutions. For many banks, last year was marked by substantial declines in income due to inappropriate investing and lending. As a result, these banks have had to reduce staff and redefine operating strategies. For Union Savings Bank the story is quite different; we are strong and well poised for continued success in the future thanks to consistent earnings and a strong capital position.
I am especially proud that we achieved our deposit goals within an extremely volatile rate environment, while remaining sensitive to our customers’ need for competitive deposit rates. Our conservative lending philosophy means we do not participate in sub-prime mortgage lending, but rather take pride in the fact that we work with each individual customer to help them purchase a home that they can afford. We take that same philosophy into the business environment, where our commercial lenders work with local businesses to meet their financial needs with sound advice and flexible products.
It all starts with our business approach. Our progressive attitude towards serving our customers, combined with governance by a conservative operating philosophy, means decisions are not driven by short-term gains that forsake long-term growth and stability. Instead, we continually seek opportunities to build the kind of performance and value
We are strong and
that earns the trust of our customers, our communities and
well poised for
our employees.
continued success
In 2007 we invested in our branches, our people and
in the future.
technology as part of an effort to meet the changing and
We bring not only financial strength but community
This philosophy of giving back to the community, combined with financial strength and support, is vital to the world we live in and is what defines us as a mutual bank.
commitment to
As we welcome the future with all the exciting innovations
everything we do
it may bring, I would also like to take this opportunity to
and every decision
welcome the newest member of our Board of Trustees,
we make.
Lucie Voves. Lucie brings proven leadership expertise to the board from her years spent starting and growing her business, Church Hill Classics. She also brings a strong understanding of community support from her involvement
Helping customers manage their finances in today’s dynamic
with several non-profit organizations. We look forward to
economic environment keeps us focused on products that
Lucie’s contributions of insight and experience to everything
meet this challenge. In 2007, we added Health Savings
we do as both a bank and a steward to our communities.
Accounts (HSA) to help individuals with private health insurance better manage the rising costs of medical care. We also significantly increased the number of Remote Deposit installations as a way for companies to complete transactions with our bank without ever leaving their office. To help make the overly complex world we live in a bit more manageable we launched 1-2-3 Checking, streamlined checking products that simplify the selection of a checking
As Union Savings Bank’s 2007 performance illustrates, our solid position in the highly competitive and ever changing financial services market highlights the soundness of our approach in all that we do. It reflects the dedication of our hard-working employees. It reminds us that our strength is a continual benefit to our customers and communities. I am grateful for all that we have achieved and I am confident about what the future holds for Union Savings Bank.
product while offering value-added benefits. Sincerely, I am especially proud to say that as the largest mutual bank in the region, we bring not only financial strength but community commitment to everything we do and every decision we make. Not being shareholder owned means that
John C. Kline President & CEO
we are able to weather market instabilities and fluctuations better than most. And rather than dividends paid out to investors, a substantial portion of our earnings are redistributed right back into our community, to non-profit organizations that help improve the quality of life in western Connecticut. This sense of mutual commitment that began with our founding 142 years ago is also exemplified by our employees who continually donate their time and energy to non-profit programs and organizations throughout the region. I cannot thank them enough for their tireless contributions.
Executive Management: Standing, back row (L-R): Gary E. Lemme, Marie T. O'Neill, Paul F. Larsen, David A. Birkins, Mary-Pat Cottrell. Sitting, front row (L-R): Francis G. Dattalo, Jay C. Lent, John C. Kline, Lynne A. Beardsley.
Community Strength
Our dedication to the communities we support is more than just a philosophy. It is an integral part of our mission at Union Savings Bank. In 2007, we helped over 500 community-based non-profit organizations in western Connecticut continue their great work with over $600,000 in charitable donations. In addition, The Union Savings Bank Foundation distributed grants totaling $134,000 to 16 non-profit organizations that provide programs for adult education and skills training, youth education, pre-school
Giving back to
enrichment, housing repair for the elderly, counseling
our communities
support and more.
is one of the Our employees also shared in that commitment by
most important
donating over 1,000 hours of time during weekends and
forms of
off-hours, volunteering for local civic organizations, organizing community events, serving on boards of
reinvestment
local non-profit organizations and raising funds for
we provide.
local charities. Giving back to our communities is one of the most important forms of reinvestment we provide as a mutual bank. It is part of a philosophy we strongly believe in. And the payment we receive in return is
Union Savings Bank Donations (In thousands)
an incredible sense of pride knowing that we have helped improve the quality of life for people in western
$614
$672
$658
2004
2005
$716
$734
2006
2007
Connecticut.
2003
Union Savings Bank Foundation and Bank Contributions
Financial Statements
Financial Trends Assets
Statement of Condition
(In millions)
December 31, 2007 (Unaudited) (Dollars in Thousands)
$1,461
Assets
$1,588
$1,627
2005
2006
$1,722
$1,284
Cash and due from banks
$ 47,024
Securities available for sale, at fair value
129,869
Securities held to maturity (fair value $139,702)
140,521
Federal Home Loan Bank stock
21,236
Loans, net
2003
2004
2007
1,308,108
Premises and equipment
23,185
Other assets
52,406
Total Assets
$ 1,722,349
Net Loans (In millions) $1,133
$1,223
$1,308
$980 $848
Liabilities and Capital Deposits
$ 1,034,495
Repurchase agreements
119,549
Federal Home Loan Bank advances
383,032
Other liabilities Capital Total Liabilities and Capital
2003
2004
2005
2006
2007
26,027 159,246 $ 1,722,349
Deposits (In millions) $940
$983
$1,006
$1,034
$894
2003
2004
2005
2006
2007
$144
$153
$159
2005
2006
2007
Statement of Income Year Ended December 31, 2007 (Unaudited) (Dollars in Thousands)
Interest and dividend income
$ 93,152
Interest expense
50,476
Net interest and dividend income
42,676
Noninterest income
8,098
Capital
Noninterest expense
38,854
(In millions)
Income before income taxes
11,920 $122
Provision for income taxes Net Income
$131
3,469 $ 8,451 2003
2004
Products & Services
Certificates of Deposit, Savings & Money Market Accounts A wide range of savings plans makes your dollar work harder while being protected by the security of FDIC insurance. Choose a CD for terms beginning at 91 days with a minimum opening deposit of $1,000.
1 2 3
CHECKING
Union Savings Bank knows how busy life can be. 1-2-3 Checking helps make managing it easier with three great choices.1 is free. 2 earns you interest. And 3 gives you interest plus all the benefits of Generations Gold® - an exclusive membership discount rewards program. Electronic options like USBonline Internet Banking and our Visa® Check Card give you round-theclock access to your accounts plus the ability to pay bills online, get cash and pay for purchases where Visa® is accepted.
HSA – Health Savings Account Our HSA can help you manage the costs associated with health care and private health insurance. Plus there are tax-saving benefits. Complete information and answers to the most common questions about HSAs can be found at unionsavings.com.
Investment Management & Trust Services* We can help you deal with financial matters related to critical life issues including education, retirement, job change, divorce, the death of a spouse or an inheritance.
Alternate Investments* You’ll find a wide selection of superior mutual funds, annuities and professionally managed or self-directed Individual Retirement Accounts. These financial products and services are offered exclusively through Raymond James Financial Services, Inc., member NASD/SIPC, an independent broker/dealer. *Not FDIC Insured Not Bank Guaranteed May Lose Value
Mortgage Loans & Home Equity Lines of Credit Get competitive rates and flexible terms from one of western Connecticut’s leading mortgage lenders. Plus, we offer the convenience of automatic payments right from your checking account.
Consumer Loans All of our consumer loans offer attractive rates and flexible terms, with a fast approval process.
Business Loans and Services You'll find a full range of business banking services including commercial and small business loans, cash management and more. Plus, benefit from local bankers who know your community and take the time to understand the needs of local businesses.
Remote Deposit Manage deposits for your business from the convenience of your business with remote deposit. It enables you to electronically deposit checks without taking time away from work.
Get account information, transfer funds between accounts, find current interest rates, branch locations and hours. Call: (203) 796-7854 or (800) 860-6670.
Go online any time to check account balances, transfer funds, pay bills and review transaction activity. Available for consumers and businesses. To try it, log on to unionsavings.com and click on USBonline. Then click on Personal Banking Online Demo or Business Banking Online Demo.
Trustees*
Corporators
Chairman of the Board of Trustees
Fred L. Baker, Esq.
William M. Lavelle
Thomas A. Frizzell Attorney, Partner, Talarico, Frizzell & Olivo
James J. Blansfield
Richard J. Lipton, M.D.
Richard B. Blessey
Mark A. Malkin, C.P.A.
Vice Chairman of the Board of Trustees
Alan T. Boyce
Michael Marcus
Richard E. Steiner President, Steiner, Inc.
Eugene P. Buccini
Andrew J. Montanari, Jr.
Abner Burgos-Rodriguez
Mark X. Paladino
Ray P. Boa Owner, A & J Construction Company
Emile Buzaid
Sal Pandolfi
Anthony E. Caraluzzi, Jr.
Cheryl D. Reedy
Arnold E. Finaldi, Jr. Vice President, Rose and Kiernan, Inc.
Maureen Casey Gernert
Eugene A. Reelick
Linda Clark
John R. Reese, Esq.
Thomas R. Green Funeral Director, Green Funeral Home, Inc.
David M. Coelho
Agostinho J. Ribeiro, Esq.
William J. Coffey, Jr.
John H. Ryan
Jeff M. Levine Owner, Levine Automotive
Geoffrey Dent
M. Jeffers Ryer
Kevin L. Dumas, C.P.A.
Paul P. Scalzo
John M. Murphy, M.D. CEO, Associated Neurologists, P.C.
Joseph A. Equale, C.P.A.
Richard E. Steiner
Mary Ann D. Frede
Dennis K. Stone
David S. Hawley
Patsy A. Stroble
Jose F. Henriquez, M.D.
Michael R. Sturdevant
Alice G. Hyman
Luis Tomas
Michael A. Kallas
Lewis J. Wallace, Jr.
Kevin J. Kelleher
William H. Webb, Jr.
Kevin A. Kennedy
Arthur C. Weinshank, Esq.
James E. Kick
Roy D. Young
Stephen G. Rosentel, C.P.A. President, Leahy’s Fuels, Inc. Cynthia Stevens President, Cynthia Stevens Associates Donald T. Studley, C.P.A. Partner, Studley, White and Associates, P.C. Jack T. Tyransky, C.P.A. Partner, Allen & Tyransky Lucie H. Voves President, Church Hill Classics
*Trustees are also Corporators
Officers
Chairman of the Board
Treasurer
Thomas A. Frizzell
Deborah L. Fish
Vice Chairman of the Board Richard E. Steiner
Assistant Vice Presidents Donna M. Barra-Cytron
Donna J. Lillis
Bonnie E. Blackman
Susan B. Magersuppe
Madeline S. Bunt
Kathleen A. McDonough
Jay C. Lent
Awilda L. Caisse
Christina Michael
Senior Vice President & CFO
Jim R. Cavanaugh
Sharon A. Miller
David A. Birkins
Sharon E. Cipolla
Ericka C. Nitsche
Senior Vice President & Corp. Secretary
Olya L. Conterez
Maida G. Olson
Lynne A. Beardsley
Darlene L. Dodson
Mark J. Pragano
Elizabeth B. Durkin
Gerald Platania
President & CEO John C. Kline
Executive Vice President & COO
Senior Vice Presidents
Richard E. Fink
Robert T. Ramsey
Mary-Pat Cottrell
William J. McNamara
Olendina B. Francisco Pereira
Renee A. Russell
Margaret L. Condon
Joseph F. Morrissey
Teresa A. Garrison
Ivan K. Shiffman
Francis G. Dattalo
Marie T. O'Neill
Rachel Gharis-Goldberg
Daniel C. Silva
Douglas W. Fuller
Agnes M. Pace
Carol A. Giannico
Pamela C. Slater
Paul F. Larsen
David B. Rowley
Anthony Gnolfo
Cheryl A.Tibor
Gary E. Lemme
Brian R. Skarda
Lynn W. Humeston
Margaret T. Velthuizen
Peter J. Leone
John Taylor
Sally A. Kile
Seamus M. Walsh
Scott L. Kozek
Diana Wellman
Judith A. LaBella
Jennifer L. Zinzi
Brian J. McGuigan
Vice Presidents
Marlene F. Lamendola
Sue A. Blasavage
Jill V. Morton
Gianni Cordazzo
Ellen L. Palmer
Officers
Christopher J. Daigle
Ronald F. Pekrul
Paulette A. Ellison
Jason M. Ginsberg
Nancy M. Dugbartey
Deborah L. Roche
Karen J. Farrenkopf
Hilda M. Henriques
Mary Kay Duus
James B. Rusiecki, Jr.
Silas Avila Jr.
Sharon J. Jakus
Eric R. Erdtmann
Douglas P. Schmeltz
Sherry L. Auclaire
Ada McMahon
Annette Field
Scott W. Senete
Stacy A. Ashby
Rayhana Moghal
Shawn L. Gregory
Georgina M. Sherman
Roberta D. Bryson
M. Ruth Polk
Susan J. Grobnagger
David M. Steck
Kerry M. Coelho
Jo-Ann M. Robling
Belinda D. Ireland
Elissa T. Terzo
Rebecca H. Corna
Andrew C. Seitz
Wayne J. Leiss
Michael W. Troiano
Maria D. Costa
Gregory S. Slomba
Theresa Marek-Oldham
Geraldine J. Turkington
Amy M. Czupkowski
Loretta E. Vallely
Michele R. Martin
William H. Valenti
Allison D. Downs
Jennifer L. Wehner