Mar 8, 2009 -
Claremont Savings Bank is a mutual savings bank established in 1907. Through the years we have used safe and sound banking practices to accumulate over $42,000,000 in capital, or 13.7% of assets. This capital level is over three times what is required by the banking industry regulators to meet their minimum capital standards of 4.00% and 59% higher than what they would consider to be well capitalized at 8.00%. Please refer to our December 31, 2008 statement of condition for further information.
I want you to know this because the last several months have been quite challenging for the banking and financial industry throughout the world. Such well known names as Bear Stearns, Lehman Brothers, AIG, GMAC, Washington Mutual, Indy Mac, Wacovia, Fannie Mae and Freddie Mac have run into tough times requiring either the help of the US Treasury, the Federal bankruptcy courts, the FDIC insurance fund, or stronger financial partners.
Claremont Savings Bank has not had to participate in the government’s monetary assistance program, known as TARP to provide additional liquidity for lending purposes or capital restoration. In fact, CSB is in a very strong position to meet the lending needs of the area.
You can be assured that your money maintained in any of our checking, savings, money market, and certificate of deposit accounts is safe at Claremont Savings Bank because of its strong capital level and the FDIC’s insurance fund. In fact, through the balance of 2009, the FDIC insurance levels have been expanded to $250,000 per account holder. This coverage continues at the $250,000 level for IRA account holders, and was increased to an unlimited amount for all of our checking account holders.
In order to provide even further protection for our depositors, in September, we started to provide enhanced FDIC insurance coverage for our depositors through a program called CDARS. This program allows Claremont Savings Bank to participate with other well capitalized banks throughout the country to provide you with FDIC insurance coverage for all of your deposits at the bank.
Besides our capital, the other ingredient that I feel is most important at Claremont Savings Bank is its employees. I consider our employees to be Claremont Savings Bank’s most valuable resource. Why? Because our bank is not just about accounts and numbers, we are actually in the personal care business. Claremont Savings Bank, through its dedicated employees, has to provide outstanding care and service to our customers every day by providing the understanding, patience, and expertise to everyone that walks through our doors, utilizes our call center, or uses our electronic delivery system. We must have a professional approach to gain and maintain the confidence that you, our customer, and the community expect day in and day out, month in and month out, and year in and year out.
I would also like to alert you to the many forms of very sophisticated phishing schemes now taking place. This includes emails, direct phone calls, and even text messaging by fraudulent parties in an effort to entice you to provide your personal information as well as debit card numbers, pin numbers, and on line banking ID access. Please be assured that CSB would never ask you for this information via these forms of communication.
This activity has been occurring simultaneously with the major security breach of an electronic data processor, Heartland. Many of the merchants with which you use your debit card, process these transactions through this processor. In an effort to protect your funds and privacy, the bank has reissued new cards to over 1600 customers. We know that this is an inconvenience for you to have to use a new card with a new account number and have it repined. But, these perpetrators are actively using the information they have received from Heartland to attempt to remove funds from your account for their personal benefit.
I would also like to brief you on some of the many new activities that have occurred and new services introduced at Claremont Savings Bank during the last quarter. If you would like additional information, please contact me or any other manager of the bank.
• In September, we introduced our FreE account which works similarly to a checking account but is based totally on electronic transactions using debit cards and on line banking services.
• We have added Quicken to our Quick books package of services for online banking customers.
• In early October we installed a major upgrade to our in-house data processing system.
• We have outsourced the production and the mailing of our deposit account customers’ statements through a partnership with Micro Dynamics.
• We have instituted a Relational Pricing program for all of our customers. This software allows us to uniformly apply fees and credits to our customers based upon the various deposit and loan account relationships each customer maintains with the bank.
• We were authorized by the State of Vermont to conduct limited banking operations in the form of customer solicitations, taking deposit and loan applications, and attending loan closings.
• We are currently in the process of remodeling and improving the interior appearance of our Charlestown Branch. When completed we will have a new handicapped accessible entrance, an additional office, new lobby furniture, a formal internet café, new wall paper, countertops, and furniture.
• We have installed a new self service coin counter at the main office.
• Long time employee, Elaine Lang, senior vice president of Deposit Operations retired.
• Her assistant, Jodi Tenney was promoted to Vice President of Deposit Operations.
• Vicki Corliss was promoted to assistant manager of deposit operations.
• Jodi Rounds has been promoted to assistant manger of the Charlestown Branch.
• Heather West has been promoted to assistant manager of the Maple Avenue branch.
• Greg Frazier was hired as the assistant manager of the Customer Care- call center.
During 2009, the bank will emphasize products and services designed especially for our customers. We are also emphasizing internal efficiencies that will allow us to compete more effectively in the new banking environment. I will keep you informed of our progress during the year.
Again I want to assure you that Claremont Savings Bank is financially sound with an abundance of capital, liquidity for loan production, and a great staff of employees eager and willing to provide the outstanding service you deserve and expect.
If I can answer any of your questions, please do not hesitate to contact me.
Sherwood C. Moody
President and CEO
smoody@claremontsavings.com
690-2708