A Letter from the President
To Our Community:
Whether it be in commerce, art, or living, it is the influence of the sea that spawns many of our local
traditions. These traditions, so important to our heritage and history, highlight our annual report of March,
2010.
With respect for a banking tradition that dates back to the fishing and whaling community of 1851, I am
pleased to report solid financial results for Seamen’s Bank marked by a significant rebound in net income
and a noteworthy increase in deposits. Despite continuing economic uncertainties and high national
unemployment, we remain confident that your Bank will continue these positive trends in the coming
months.
Net income rose to $1,089,000 at fiscal year end notwithstanding an unexpected and unprecedented
assessment from the FDIC of $600,000 as we continue to bear the burden of an economic crisis precipitated
by the “too-big-to-fail” banks.We also made the decision to augment our loan loss provision by an additional
$400,000. Electing to take a conservative approach toward our loan portfolio, this increased provision
improved loan loss coverage to 1.26%. Coupled with our strong capital position of 10.8%, we remain well
protected in the event of future pressures to our loan portfolio.
Deposit levels remained strong as consumers sought the stability of sound community banks. Deposits
reached $252 million, a nearly $27,000,000 increase over last fiscal year end—an increase of 11.8%.
Reflecting the general economy and the lagging real estate sales, loan levels were flat from a year ago.
As always, income, asset, and deposit growth do not tell the whole story of Seamen’s Bank. We continue to
take pride in our employees who invest their time, energy, and expertise to give back to the community either
as volunteers or as active members in community organizations. Throughout the turmoil of the past months,
our contributions to the Seamen’s Bank Charitable Foundation also continued unabated with donations
passing the $100,000 mark.
As we look towards the year ahead, challenges will undoubtedly continue not only on the economic front
but also on the regulatory front. Regulatory agencies continue to respond to the crisis of the past months
as would be expected—with greater regulation in more areas more of the time. Given the nonsense of some
of the larger banks, this was anticipated by many in the industry. Unfortunately, it has become increasingly
difficult for small community banks to deal with the massive regulatory burden. The costs of compliance
now comprise one of the primary threats to the community banks across the country.
Because of the commitment of our employees, our trustees, and our customers, we have the means and
ability to meet these challenges. Indeed, Seamen’s Bank continues to prosper because our idea and
philosophy has remained constant for our 159 years—we continue to be close to the communities which we
serve.
Respectfully,
 
John K. Roderick
President
 View a PDF
of this year's
Annual Report
Consolidated Balance Sheet
| Year ended March 31 |
2010 |
2009
|
| Assets |
|
|
| Cash and Due from Banks |
$4,696,000
|
$4,899,000
|
| Securities |
64,947,000 |
46,937,000
|
| Federal Funds Sold |
11,577,000 |
9,342,000
|
| Loans |
197,754,000 |
196,472,000
|
| Reserve for Losses |
(2,518,000) |
(2,408,000)
|
| Land, Buildings, Equipment |
3,922,000 |
4,113,000
|
| Other Real Estate |
467,0000 |
0
|
| Other Assets |
4,663,000 |
4,574,000
|
| Total Assets |
$285,508,000 |
$263,929,000
|
|
Liabilities and Surplus
|
|
|
| Deposits |
$252,265,000 |
$225,290,000
|
| Other Liabilities |
2,332,000 |
9,604,000
|
| Total Liabilities |
$254,508,000 |
$234,894,000
|
|
Undivided Profits
|
$30,702,000 |
$29,613,000
|
| Net Unrealized Gains on Securities held for sale |
209,000 |
(578,000)
|
| Total Surplus |
$30,911,000 |
$29,035,000
|
|
Total Liabilities and Surplus
|
$285,508,000 |
$263,929,000
|
This statement has not been reviewed, or confirmed for accuracy, by the Federal Deposit Insurance Corporation.
|
