2014 ANNUAL REPORT
President’s Message
In my new role as President and CEO, I am pleased to report that 2014 was
another successful year for Centreville Bank. As noted in the Treasurer’s
Report, the Bank’s financial strength places us in a unique position among
Rhode Island financial institutions, and we plan to leverage this strength
going forward.
Under Ray Bolster’s stewardship, Centreville Bank has grown and prospered,
and we are indebted to him for his tireless efforts to ensure the Bank’s
success. Although we will miss seeing Ray on a daily basis, we are grateful
for his ongoing involvement with the Bank through the Board of Trustees.
As we look ahead to 2015 and beyond, we are extremely excited by the
opportunities we see for Centreville Bank. In the past several years, we
have put together a strong and determined management team. We are
going to work harder than ever to provide outstanding products and
services, and enhance the customer experience – not only in our branches,
but in all our delivery channels and throughout the organization.
“We have been working closely
with our staff, customers, and
prospects to learn first-hand
what we need to do to earn
- and keep - their business and
support. This feedback has been
instrumental in helping us to
create a strategic plan to move
Centreville Bank forward.”
- Tom Lamb
While we are proud of all we have accomplished, we know that there is
always more that can be done. With increased competition from community
banks and credit unions, we recognize that Centreville Bank’s fiscal strength
is not enough to effectively compete in our market. To that end, we have
been working closely with our staff, customers, and prospects to learn
first-hand what we need to do to earn – and keep – their business and
support. This feedback has been instrumental in helping us to create a
strategic plan to move Centreville Bank forward.
I continue to be touched by the dedication of our employees in so many
great causes. This support and involvement in the communities we serve
remains a big part of what Centreville Bank is about. We live and work
here, and we are committed to helping the many organizations that, in
turn, help all of us.
In closing, I want to thank our Trustees, Corporators, and our staff for their
hard work and support. I am truly honored by the opportunity to work
with you in our quest to make Centreville Bank the best it can be.
Sincerely,
Thomas J. Lamb, Jr.
President, CEO & Chairman of the Board
Treasurer’s Report
Financial Highlights
The Bank continued to maintain extraordinary capital
levels with a 22.8% Tier 1 capital ratio, which far
surpassed its peer group as well as the regulatory
requirement of 5% to be considered “well-capitalized.”
2014 yielded a return on asset ratio of 79 basis points,
the highest in over 5 years. This allowed for balance
sheet growth of over $18 million and net income after
tax of $7.8 million surpassing 2013 by 22%.
From an earnings perspective, the sustained low rate
environment and the lagging local economy continued
to influence the Bank’s core banking activities. Deposit
balances declined $16.7 million as a result of certificate of deposit balances maturing
and finding higher returns elsewhere. Loan balances remained stable while the return
on loans decreased by 17 basis points from 4.04% to 3.87%. However, contrary to many
of its peers, Centreville’s net interest margin rose by 7 basis points due to an increase in
the return on investments of 14 basis points, combined with a decrease in the cost to
fund earning assets from 63 basis points to 57 basis points. The resulting impact was
growth to net interest income of $1.5 million, before the provision for loan losses.
Additionally, the Bank benefited from its strong investment returns and improved asset
quality. Its yield on the investment portfolio improved from 2.34% to 2.48% and with
the continued improvements in the stock market, the Bank was able to realize $3.5
million in gains on security sales as well as record dividend income of $3.5 million.
Furthermore, as Centreville continues to strive to maintain the highest credit quality
within the loan portfolio, provision for loan losses decreased $591 thousand for the
year ended.
Financial Condition
December 31, 2014
Total Assets
$
997,768,527
December 31, 2013
$
979,604,432
Cash & Short Term Investments
25,587,555
41,303,441
Securities, at Fair Value
516,855,910
488,460,672
Loans, Net
418,859,193
418,203,319
Customer Deposits
684,740,162
701,392,672
20,000,000
20,000,000
Total Retained Earnings
247,648,050
228,458,047
Risk Based Capital Ratio
50.81%
49.55%
Equity to Assets
24.82%
23.32%
December 31, 2014
December 31, 2013
Borrowed Funds
Operating Results
Total Interest & Dividend Income
Total Interest Expense
Net Interest Income Before Loan Losses
Provision for Loan Losses
$
28,980,254
$
27,807,463
5,495,805
5,779,950
23,484,449
22,027,513
649,250
1,240,000
The Bank maintained its customer commitment and recognized the need to ensure
customer service fees are a minimal source of income. As such, the ratio of non-interest
income to assets stands at .21% compared to the national rate of 3.03%. Management
also made a concerted effort to manage operating costs and thereby decreased
non-interest expenses by $97 thousand or .47% in a period of increasing regulations
and an ever-changing complex banking environment.
Net Interest Income
22,835,199
20,787,513
Non-Interest Income
6,640,683
6,647,943
Non-Interest Expense
20,271,080
20,367,690
Provision for Income Taxes
1,418,573
671,438
With an outstanding capital position, sound credit quality and strong management
oversight, the Bank is well positioned for responsible growth and reinvestment in 2015.
Net Income
7,786,229
6,396,329
Return on Average Assets
0.79%
0.67%
Net Interest Margin
2.47%
2.40%
Jillian J. DeShiro, CPA
Senior Vice President
Chief Financial Officer and Treasurer
Thank You Ray
Our Leadership Team
For the past nine years, Centreville Bank
President, CEO and Chairman of the Board
Ray Bolster has been at the helm, successfully
steering the Bank through one of the most
difficult economic environments in history.
With Ray’s leadership, Centreville Bank has
grown to become one of the area’s strongest
financial institutions.
Centreville Bank is fortunate to have a
talented group of hard-working individuals
on the leadership team. Every member of
our team has extensive experience in
banking and their respective fields, and all
share a common vision for the future of
Centreville Bank.
area that will work with the branches to
ensure consistency and compliance across
the Bank. The area will also concentrate on
appropriate training and coaching for the
branch staff. This will help to ensure that
our customers receive the same excellent
service across the branch network.
Here are just a few highlights from
the past year:
Consumer Lending – Mortgage loans
continue to play a significant role in the
growth of Centreville Bank and we have
added even greater depth to our retail
lending team to ensure future success.
The Bank will be focused on improving the
loan process for our customers, and we
are planning the launch of several new
products in 2015.
Over and above Ray’s contributions
towards the Bank’s success are his efforts,
both personally and on behalf of the Bank,
to helping others. Ray – or “Chip” as he is
known to friends and family – is much
beloved by the many organizations and
individuals who have benefited from his
generosity, warmth, and genuine concern
for the well-being of others.
Centreville Bank is very fortunate to be
highly regarded in the communities we
serve. We’re known for our support of the
many not-for-profit organizations that
serve the needs of our communities, and
for the kindness and respect we show
customers, colleagues, business and
community leaders. These are the values
that Ray lives by, and ones that he instilled
at Centreville Bank.
While Ray has officially retired as President,
CEO and Chairman of the Board, we are
grateful that he will continue to be involved
with Centreville Bank through our Board
of Trustees.
We wish Ray much happiness and wonderful
adventures in the years ahead.
Commercial Lending – In 2014, Centreville
Bank made a significant commitment to
growing our commercial loan portfolio and
brought a strong team of experienced
professionals on board to meet these goals.
Products and Services – This division was
created to focus on the enhancement of
product offerings, improving the customer
experience, and elevating the Bank’s brand
awareness. Through customer analytics
and consumer research, the Bank has
gained a deeper understanding of our
current customer base and prospects, and
has outlined numerous opportunities for
growth. We have created a branch operations
The Bank is grateful for the contributions of
our many dedicated employees who have
helped make Centreville Bank one of Rhode
Island’s strongest community banks.
Centreville Bank’s leadership team shown (front row, left to right):
Jill DeShiro, Karen Flynn, Yokota Strong, Pam Stenberg; (back row, left to
right); Hal Horvat, Nancy Ferrara, Julie Casey, Tom Lamb, Brian McGinnis,
Maureen Terranova and Richard Denio.
Centreville Bank and Community Spirit
We recently conducted a survey among
colleagues, customers and area residents to
ask them what comes to mind when they
hear of Centreville Bank. An overwhelming
majority stated “the Bank’s community
involvement.” We couldn’t be more pleased
with this response!
Supporting our local cities and towns is
one of our core values. Annually, we help
dozens of non-profit organizations
statewide, not only in financial support
through the Centreville Savings Bank
Charitable Foundation, but in the hundreds
of volunteer hours from our employees.
While the list of those we support is
long, we chose to highlight in this year’s
report four organizations that were the
beneficiaries of Centreville Bank’s support.
We would also like to recognize the time,
energy and enthusiasm from our many
employees that help keep this community
spirit alive.
Pictured below (l-r) are Lou Giancola, President/CEO
of South County Hospital; Brenda Owren, Area Branch
Manager; Matt Owren; and Raymond Bolster,
Centreville Bank.
South County Hospital Cancer Care
Center – Centreville Bank has pledged
$250,000 to the Hospital’s “The Campaign
for Cancer Care” initiative, the largest gift
yet to this effort. For Centreville Bank Area
Manager Brenda Owren, this donation hit
close to home. Brenda’s brother Matt is a
cancer survivor who was treated at South
County Hospital. Matt is not only thriving
today, but is also working as a physical
therapist at the Hospital.
Meals on Wheels - Centreville Bank
donated $20,000 to the Meals on Wheels
Emergency Meal Program, which
allowed the organization to deliver 1,350
“shelf-stable” meals this past winter to
recipients throughout the state. Without this
donation the program was in jeopardy.
Wickford Art Festival – Centreville Bank
was the title sponsor for this much-beloved
event, attended by thousands who stroll
through this charming village seeking
exceptional artwork.
Pictured above (l-r) are Domenica Santilli, Area
Branch Manager; Tom Lamb, Centreville Bank; and
Heather Amaral, Executive Director of Meals on Wheels
of Rhode Island.
South Kingstown Animal Rescue
League – With a $25,000 contribution from
the Bank, the Animal Rescue League is in
the final construction phase of a state-ofthe-art facility in Peace Dale. One of the
few Rhode Island shelters with a strict
“no kill” policy, the rescue league will also
be home to one of the country’s first K9
training centers.
Corporate Directory
Executive Officers
Corporators
Thomas J. Lamb, Jr.
President – CEO &
Chairman of the Board
Stephen D. Alves
Dr. Paul E. Barber
Cecile G. Benoit
Richard A. Bernard
Robert A. Bjorklund
Raymond J. Bolster, II
Kevin A. Breene
Arthur J. Brown
John S. Brunero, Jr.
Ronald J. Caniglia
Henry G. Caniglia
Philip Casacalenda, III
James W. Coogan
Dr. B. Gerard Coppolelli
Thomas J. Cronin
Mark Cullion
Alfred R. D’Ambrosca
Thomas Deangelis
Craig J. Delfino
Albert A. DiFiore
Michael R. Durand
Jonathan K. Farnum
Stacy B. Ferrara
John P. Gallogly
G. John Gazerro, Jr.
John Golomb
Brian Harbour
R. George Henault
Robert J. Holmes
Andrea M. Hopkins
James A. Hopkins
Robert A. Iannotti
Robert A. Iannotti, Jr.
James E. Joly
Kenneth Jones
Arthur Joyal
John E. Keenan
Earl P. Knight
Dr. Patricia Koch, OD
Roy A. LaCroix, Sr.
Jillian J. DeShiro, CPA
Senior Vice President –
CFO & Treasurer
G. John Gazerro, Jr.
Secretary
Trustees
Dr. Paul E. Barber*
Raymond J. Bolster, II*
John S. Brunero, Jr.†
Henry G. Caniglia*
Craig J. Delfino†
G. John Gazerro, Jr.*
R. George Henault
Honorary Trustee
Robert J. Holmes*
Andrea M. Hopkins†
James A. Hopkins*
Robert A. Iannotti*
Dr. Patricia Koch, OD†
Thomas J. Lamb, Jr.
Robert O. Pare*
Walter F. Richardson, III†
* Board of Investment
† Audit Committee
L. Stephen Lamb
Thomas J. Lamb, Jr.
Normand Lemay
Robert H. Lodge, Sr.
David G. Lussier
Vincent A. Martucci
Gerald J. McGraw
Susan P. Moore
Thomas F. Morgan, Jr.
Peter D. Nolan
Lionel A. Nunes
Richard A. Padula
Robert Padula
Anthony J. Paliotta
Herman Paolucci
Robert O. Pare
Alfred F. Pare
Lester A. Parente
Fred T. Perry
Glen S. Petit
Antonio D. Pezza
Robert C. Reynolds, DDS
Walter F. Richardson, III
Gerald M. Roch
John P. Roch
Raymond J. Roch
Geoffrey E. Rousselle
John L. Ruzzo
David J. Skurka
Noel A. St. Germain
Mark D. Tourgee
William F. Varr
James M. Vesey
Anthony J. Vessella
Thomas A. Vessella
Thaylen H. Waltonen
S. Keith White, Jr.
Adrien Zarlenga
“Under Ray Bolster’s stewardship,
Centreville Bank has grown and
prospered, and we are indebted to
him for his tireless efforts to
ensure the Bank’s success. Although
we will miss seeing Ray on a daily
basis, we are grateful for his
ongoing involvement with the Bank
through the Board of Trustees.”
- Tom Lamb
MAIN OFFICE
West Warwick
1218 Main Street
West Warwick, RI 02893
401-821-9100
Coventry
777 Tiogue Avenue
Coventry, RI 02816
401-823-9100
Cranston
193 Comstock Parkway
Cranston, RI 02921
401-464-9100
East Greenwich
495 Main Street
East Greenwich, RI 02818
401-886-9100
Narragansett
1115 Boston Neck Road
Narragansett, RI 02882
401-783-9300
West Greenwich
834 Victory Highway
West Greenwich, RI 02817
401-397-9300
Wickford
234 West Main Street
Wickford, RI 02852
401-295-7100