Meet The President
Chief Executive Officer
April 30, 2020 – The Milford Bank has a unique business proposition—offer superior service, stay involved with the community and maintain strong local ties, while providing financial services to our customers that rival our larger competitors. We tend to look at future products, services and opportunities through a technology-focused lens. That’s important; but so is the human component. Our greatest strength is in our people. The same digital technology that empowers customers also frees our team to take a more hands-on approach to relationship-building. It enables banks like us to better utilize and deploy our most important asset—our bankers. While their roles have changed and will continue to evolve, their importance to our customers is apparent. It is through continued growth, fostered by relationships between our staff and our customers, that the Bank will continue to succeed.
The Bank was successful in growing in 2019. Total assets ended 2019 at $449.6 million and deposits grew to $360.5 million, an increase of nearly $15 million. Our lenders were busy writing loans; our loan portfolio closed the year at $388.4 million, an increase of over $7.0 million. Net income for 2019 was $1.3 million, down year over year. The primary reason for the reduction in income was the pressure reduced interest rates put on our net interest margin. Capital stands at $47.7 million and the Bank retains the highest regulatory capital rating of “well capitalized.”
Our commitment to the communities we serve is as strong as ever. During the year, we expanded them to include West Haven and Orange. Our employees continue to support our communities in relevant, meaningful ways. In addition to encouraging our people to support causes they are passionate about, the Bank contributed approximately $127,000 to various organizations. The Bank also made a contribution to The Milford Bank Foundation which enabled the Foundation to award nearly $16,000 in grants to 27 community groups.
Our employees step up in a large way too, contributing nearly $15,000 to United Way, which the Bank matched. We really do make a difference in the communities we serve.
For the past several weeks, we have been monitoring and reacting to the spread of coronavirus (COVID-19). Our team is closely following the situation and we have contingency plans in place to ensure the safety of our employees and the continuity of our business. We are following CDC rules, regulatory guidelines and state mandates. We, no doubt like many of you, are hopeful its impact on our business will be short lived. The Bank is fundamentally strong and this disruption to our business is only temporary.
We remain confident that we will continue to move forward. We don’t expect the interest rate environment and the residual effects resulting from the COVID-19 health crisis to be favorable for us, so we are investigating ways to supplement the margin. We are energized by the opportunity to diversify our revenue streams as we look for other income producing lines of business. We will continue to focus on deposit acquisition to grow our deposit base, enabling us to write loans to customers and businesses so that they can achieve their goals. We will continue to expand our digital offerings; notably on-line deposit account opening is on the project list. Above all else, we will do all of it with strict adherence to our standards and culture, while delivering what we call “The Milford Bank Experience.”
I am reminded that none of our successes in meeting challenges like this global health crisis is possible without the support, encouragement and guidance of our Trustees and that of our management team. The hard work and dedication of our employees and loyalty of our customers is critical.
Thank you for your business, for your continued support, and for believing community banks like ours make a difference.
Read our Annual Report.