Greetings!

 

While much of the banking industry struggled during the past year, I am pleased to report that 2010 marked one of the most successful years in the 140 year history of Skowhegan Savings. We ended the year with $446 million in total assets and over $61 million in capital. Both are all-time highs for the Bank, and reflect our financial strength and history of prudent management of the Bank's assets.

 

The financial capacity of the Bank allowed us to extend our market northward with the purchase of the Border Trust Company's Jackman branch office. We are very excited to bring our brand of community banking and commitment to community to the people of the Jackman area, and are pleased to be working with the staff led by Betsy Guay. We also began offering non-bank financial services through Skowhegan Financial Services. Our Financial Advisor, Norm Hart, has been very successful in meeting the needs of our clients with financial advice, planning, and investment services. It is Norm's integrity in focusing on individual customer needs that has led to our success with this service and made it a natural fit within the culture of Skowhegan Savings.

 

Some additional highlights of the past year were:

• We completed a year-long celebration of our 140th year of serving the banking needs of our communities with celebrations in each of them.
• We enhanced our electronic banking products with environmentally-friendly and convenient electronic documents.
• We donated approximately $150,000 to enhance educational and economic opportunities in our area.
• We were named a "Best Place to Work in Maine" for the second consecutive year.  

During this past year there has been a perception in the country that "banks were not lending." One look at our balance sheet demonstrates that this is not true. In spite of a sluggish economy, Skowhegan Savings grew our commercial loan portfolio by 37% over 2009. As you can see in the following pages, this activity has helped bring new and expanding businesses to our market, creating jobs, and generally making our communities a better place to live and work.

 

This coming year we plan on continuing our investments in technology to bring Mobile Banking and other enhancements to our customers, while retaining the quality personalized service that defines Skowhegan Savings. We also plan on strengthening our community commitment with a financial literacy program delivered in our schools and with the creation of the Skowhegan Savings Charitable Foundation which will allow us to invest in our communities in a more efficient and meaningful manner.

 

It is our team of employees that makes Skowhegan Savings the institution it is and I would like to recognize them for their dedication to our mission and for the integrity they bring to work every day. On behalf of that team, I would also like to thank you, our customers, for the opportunity to serve your financial needs and, in the process, help our communities be vibrant places to live, learn and work.

  

Sincerely,

John C. Witherspoon

President & CEO

 

Time to Tap into Your Home's Equity!

By Meghan Loubier, Belgrade Branch Manager

 

Tap into the equity in your home with one of our Spring Home Equity offers!

Spring is nearly here and there are great rates available for home equity loans and lines of credit. If you are looking for a way to get the most out of the value of your home and meet some financial goals, your local Skowhegan Savings loan officer can help find the right home equity option for you. Here are some basics:

 

There are two types of home equity loans: the home equity loan and the home equity line of credit. The home equity loan is granted in one lump sum and the borrower pays a set monthly amount-not unlike a home mortgage, while the home equity line of credit comes with approval for a certain loan amount and the choice whether or not to use it.

 

Are Home Equity Loans Right for Me?

When deciding whether or not a home equity loan is the right decision for you, consider your short and long-term goals.  Home equity loans are good options for those looking to borrow a lump sum amount and reap long term rewards-such as major home renovation or the consolidation of high interest credit cards.

 

Conversely, home equity lines of credit are often better for those focusing on the short-term.  They can be good ways to plan for unexpected, immediate financial needs.  They are also popular options when facing a long-term project-for instance, a remodel or renovation that will be done over a period of time that requires payments at intervals rather than in one lump sum.

 

Here are the top 5 benefits to taking advantage of your home's equity now:

1. Interest paid on the loan may be tax deductable, just as it is on your first mortgage.
2. Interest only payments - Home equity lines of credit offer interest only payments for the first 5 years.
3. Low closing costs - closing costs on a home equity loan are considerably lower than what a borrower would find on a full mortgage refinance.
4. Already have a low rate on your first mortgage but need to access home equity?  A home equity loan is a great way to access the equity in your home if you would prefer not change the rate or term on your existing first mortgage.
5. Funds from the loan can be used for such things as:
   • Debt Consolidation
   • Home Remodeling Projects
   • College Expenses
   • Down payment on an investment property

If any of these benefits appeal to you and you're interested in tapping into the equity in your home, contact one of our local lenders today to learn more about our Spring Home Equity offers and how you can enter to win a $500 Visa Gift Card.

Happy Returns: Tips for Savings Money at Tax Time

 ~Adapted from FDIC Consumer News~ 

  

FDIC Consumer News and Skowhegan Savings don't give tax advice, but we do occasionally share suggestions for you to consider or discuss with your tax advisor. Here is our latest collection of tips to keep in mind as you prepare to file your taxes.  

 

Consider using tax time to pay off high-interest debt or save for the future. "Use your tax refund to pay down high-interest debt and build up your savings," said Luke W. Reynolds, Chief of the FDIC's Community Outreach Section. "For example, purchase a U.S. Savings Bond with some or all of your tax refund. You can also direct deposit your refund into as many as three different accounts and three different financial institutions."  

 

Avoid high-interest loans offered at tax time. In particular, be aware that a "refund anticipation loan" is an expensive loan product arranged by tax preparers for people who file their returns electronically and who don't want to wait for their tax refund.  

 

"Refund anticipation loans are costly and often unnecessary because taxpayers can expect to have their tax refund direct deposited into their bank account within about 10 days of when the return was electronically filed with the IRS," explained Joyce Thomas, an FDIC financial educator in the Community Outreach Section.  

 

"The funds spent on fees and interest for any sort of refund advance could be better used, including saving for a goal or paying down debt," added Reynolds.

 

Be on guard against tax-related frauds. Examples include scam e-mails falsely claiming to come from the IRS and intended to trick taxpayers into revealing personal information. Other scams involve unscrupulous tax preparers who promise larger refunds than competitors and make fraudulent errors that expose victims to costly fees and penalties.  

 

For more information and consumer tips, go to the tax scams page on the IRS Web site. 

 

Check out programs offering free tax help. The IRS-coordinated Volunteer Income Tax Assistance program and the Tax Counseling for the Elderly service offer free tax-preparation assistance for low-income, disabled, elderly, and non-English speaking taxpayers.

 

Another IRS program is "Free File," which allows taxpayers who earn $58,000 or less (for returns to be filed during 2011) to use a tax-preparation software program to prepare and file their federal taxes for free through the IRS Web site. Taxpayers who exceed the income threshold can still manually complete their forms and "e-file" them through the IRS Web site.  

 

Ask if you may qualify for unusual tax breaks. "These may vary from year to year, but taxpayers in special situations - perhaps those who started a small business, were unemployed, or lost property because of a natural disaster - should check with the IRS for special considerations that may apply to them," Reynolds said.

 

For more help or information, start at www.irs.gov or consult a tax advisor.