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Branch OfficesMain Office55 Elm StreetDedham, MA 02026781-329-6700Needham1077 Great Plain AvenueNeedham, MA 02492781-449-0002South Boston636 East BroadwaySouth Boston, MA 02127617-268-2088Dedham Square420 Washington StreetDedham, MA 02027781-320-1410Norwood185 Central StreetNorwood, MA 02062781-762-8500Walpole1428 Main StreetWalpole, MA 02081508-668-4600East Dedham260 Bussey StreetDedham, MA 02026781-320-1412Sharon45 South Main StreetSharon, MA 02067781-793-9360Westwood673 High StreetWestwood, MA 02090781-320-1416Senior Community BranchesDedhamNewBridge on the CharlesWalpoleNew Pond VillageCantonOrchard CoveBedfordCarleton-WillardInvestment, Asset Management and Trust Services55 Elm StreetDedham, MA 02026Investment Center at Dedham SavingsAvailable through Sorrento Pacific Financial, LLCMichael PuglieseAssistant Vice President - Investment Center at Dedham SavingsSPF Financial Advisor781-320-4805Plimoth Investment AdvisorsThomas B. MillerJoseph R. KingVice PresidentFirst Vice PresidentPlimoth Investment AdvisorsPlimoth Investment Advisors781-320-4865774-319-3695Dedham Savings has joined Allpoint Network, which means Dedham Savings customers now haveaccess to Americaʼs largest surcharge-free ATM network, with some 55,000 surcharge-free ATMs worldwide.To find the Allpoint ATMs closest to you, please visit http://www.allpointnetwork.com/locator.aspxDEDHAM INSTITUTION FOR SAVINGS since 1831D edham , M as s ac hu s ettsM ember FDIC/M ember DIFwww.dedham savi ngs.co mEqual Housing Lender2017Annual Report
Dedham Savings 2017 Annual ReportDedham Savings 2017 Annual ReportPresidentʼs MessageTo Our Corporators, Customers and Friends of the Bank,Trustees and Members of the CorporationKevin F. HampeCharles T. SpiegelJohn H. Emmons, Jr.William G. GothorpeDavid S. BeckwithAlexander K. LeithTrusteesPeter S. GregoryJuanita Allen KingsleyPhilip R. WeberJuliet W. OnderdonkDean H. SteegerChristine L. ToddMilton J. Benjamin, Jr.It gives me tremendous pleasure to present our 2017 Annual Report. Thiswas a year highlighted by excellent financial results, the formation of ourmutual holding company (1831 Bancorp, MHC), the retirement of twoBank Executive Management Team members, and the election of a newBank Director/Trustee and two Corporators. We also successfully dealtwith the financial reporting and tax management challenges triggered bythe passage of the Tax Cut and Jobs Act of 2017 in late December 2017.Milton J. Benjamin, Jr.Joan K. CoughlinLouis A. RizoliPeter G. BrownJames L. ElcockMark R. EpkerGary EveeIn 2017, the Bank achieved record annual earnings totaling 12.7 million,which resulted in an excellent return on assets (ROA) of 0.90%. Thiscompares favorably to the 7.9 million (0.58% ROA) earned in 2016 and 7.8 million (0.63% ROA) earned in 2015. This yearʼs earnings include a 9.5 million pre-tax gain from the sale of the Bankʼs 100,000 investmentin Northeast Retirement Services, Inc. (NRS) and a related donation of 1million of appreciated stock to the Bankʼs charitable foundation. The netafter-tax earnings benefit from these events was 5.5 million. Also, bondlosses were taken at year end to take advantage of the new lower federalincome tax rate that went into effect on January 1, 2018. Therefore, afteradjusting for the NRS-related transactions and tax-driven bond losses, weestimate our “normalized” 2017 earnings at 8.8 million, still well aboveour 2016 and 2015 results.Clerk of the Corporationand Board of TrusteesCharles T. SpiegelJohn H. Emmons, Jr.Kevin F. HampeJoan K. CoughlinCory AlexandreJuanita Allen KingsleyFotios BarounisMichael A. BeaumontDavid S. BeckwithMilton J. Benjamin, Jr.James M. BradyPeter G. BrownJoan K. CoughlinSusan CurtinJohn CzyzewskiGeorge Doherty, IIIJames L. ElcockJohn H. Emmons, Jr.Mark R. EpkerJames W. Evans, Jr.Thomas J. FilbinDale N. GarthStephen N. GiffordLewis E. Gilman, IIIWilliam G. GothorpeExecutive CommitteeAlexander K. LeithPeter S. GregoryPeter G. Brownand alternate Trustees each monthAudit-Risk CommitteePhilip R. WeberLouis A. RizoliMark R. EpkerGary EveeMembers of the CorporationPeter S. GregoryWilliam B. GutfarbKeith P. HampeKevin F. HampeRobert B. HansonEdward R. JastremBret D. JordanJoseph R. KelliherJoanna Cook KjellmanRobert A. Lawrence, Jr.Alexander K. LeithRalph Lowell, IIIChristopher C. MansfieldJudith A. MasseyDavid MatteoHope McDermottTimothy McDonoughNancy R. MobleyStephen G. MoorheadJoseph C. MoraskiJuliet W. Onderdonk 8 Peter G. Brown,President and Chief Executive OfficerMichael R. PaoliniAllan D. Parker, IIILora M. PellegriniGiorgio PetruzzielloHelen A. PhinneyRichard P. Quincy, Jr.Louis A. RizoliFrancis J. Ryan, Jr.Jeffrey ScheerBarbara SheaJeffrey J. SkerryCharles T. SpiegelJason R. SpiegelDean H. SteegerRobert W. TaylorChristine L. ToddFrancis M. Walley, IIIRev. Rali WeaverPhilip R. WeberDavid WinickGary T. WoodsWith respect to our balance sheet, we continue to pursue a conservative,yet successful, growth strategy. Total assets grew to approximately 1.444billion which represents a 56.3 million, or 4.1%, year over year increase.Our lenders closed a near-record 362 million in loans during 2017. This allowed us to grow our loan portfolios by 38.6million to end the year with outstandings totaling 1.080 billion.Total deposits, our primary funding source, grew 110.7 million, or 9.9%, to end the year at 1.111 billion. However, thisdeposit growth came largely from brokered deposits taken in from the wholesale markets. This funding strategy helped usachieve our 2017 balance sheet growth objectives and effectively manage our overall cost of funds. Total capital increased 13.8 million to end the year at 160.5 million. This yielded a healthy capital-to-asset ratio of 11.11%. This capped awonderful nine-year run that saw Bank capital double since 12/31/08, which for Dedham Savings was the low point of thefinancial crisis. For more financial information, I ask that you read the Financial Review prepared by our Chief FinancialOfficer, Mark Ingalls, that appears later in this report.Regarding the mutual holding company, on November 15, 2017 the Bankʼs Board of Corporators, on the recommendationof the Bankʼs Trustees and Executive Management, voted to approve the formation of 1831Bancorp, MHC. This actionreceived final regulatory approval in February of 2018. Also formed was a mid-tier stock holding company (1831Bancorp, Inc.). The mutuality of the organization remains intact but now resides inside the MHC, the sole owner of themid-tier holding company, which is the sole owner of the now stock savings bank. This new corporate structure providesour Board added flexibility to pursue other banking-related business lines, explore M&A opportunities with other banksand bank holding companies and expand our options to raise capital via subordinated capital or debt. 1
Dedham Savings 2017 Annual ReportDedham Savings 2017 Annual ReportBank Management (contʼd)The Bank also dealt with changes within its Executive Management Team, the Board of Trustees/Directors and Board ofCorporators. Jerry Lavoie, EVP and Chief Operating Officer and Bill Mullin, EVP of Residential Lending retired afterlong and very successful banking careers. We wish Jerry and Bill much happiness in retirement. In response to thesechanges, Mark Ingalls assumed the responsibilities of Chief Operating Officer and Laura Dorfman has joined us to leadour Residential Lending Division.We also feel fortunate to have Edward Jastrem and Jeffrey Skerry join our Board of Corporators. Ed is a financial plannerand Westwood resident. Jeff is an attorney/CPA and resident of Medfield. Both Ed and Jeff provide our institutionvaluable professional and market perspectives in their new role as Corporators.Finally, we are thrilled to announce that Gary Evee was recently elected to the Bankʼs Board of Directors and to theMHCʼs Board of Trustees. A resident of Randolph, Gary is an independent consultant in information technology securityand has already elevated our Boardʼs overall knowledge and expertise in this critical area.Each year, we select an employee for the Bankʼs Ebenezer Burgess 1831 Presidential Award. This annual award, namedafter the Bankʼs founding President, recognizes an employee with outstanding job performance and strong participationin Bank and other community activities. As in prior years, selecting one recipient is difficult as we are blessed with somany deserving employees. Fortunately, there is one individual each year who seems to shine above all others, and thisyear was no exception. With great pleasure, I am pleased to announce Deleila Mouawad, the Manager of Deposit Support,as this yearʼs recipient. Deleila started with the Bank in 2009 as a part-time Central Files clerk. Her desire to learn andaccept new responsibilities along with her exceptional work ethic, customer serviceskills, volunteer efforts and warm demeanor have enabled her to move up rapidly inthe organization. Watching Deleila grow and prosper within our Bank environmenthas been a delight to observe. Congratulations Deleila!Deleila Mouawad, Manager of DepositSupport and recipient of the sixthannual Ebenezer Burgess 1831 Award.In closing, as Dedham Savings completes its 186th year, the successes we haveachieved and changes we have made to our corporate structure this past year match upwell with our very balanced and consistent approach to conducting business. Wecontinue to be motivated to serve our customers and communities in the best possibleway. However, to do so, we always need to be willing to embrace changes in theways we do business, adapt to the latest economic trends and to shifts in theregulatory environment while maintaining a superior work culture so our hardworkingemployees can better serve our constituencies. In 2017, through their actions, ouremployees, senior management team, Directors/Trustees and Corporators could nothave been more “in sync” in helping Dedham Savings be the best community bank inour markets.Sincerely,Peter G. BrownPresident and Chief Executive OfficerBrendan MinichResidential Loan OfficerMichael NickleyResidential Loan OfficerElizabeth PaoliniResidential Loan OfficerDeposit OperationsSue Ellen McKinnonSenior Vice PresidentMaureen NedderVice PresidentAML / BSA & Security OfficerTonia ReillyVice PresidentKerry A. RigginsVice PresidentMary LussierAssistant Vice PresidentInformation TechnologyWilliam A. Kane, Jr.Senior Vice PresidentDirector of ITJames P. HanlonSenior Vice PresidentLaura J. TimmermanVice PresidentInvestment CenterMichael PuglieseAssistant Vice PresidentSPF Financial AdvisorRetail BankingRobert M. ErasmiSenior Vice PresidentBranch ManagersHeidi A. BrowneVice PresidentElm StreetValleri LovelySouth BostonPaul J. PelletierSharonStephanie PerkinsNeedhamBusiness DevelopmentRichard BurkeVice PresidentGovernment & Not for Profit BankingCharlie ToczylowskiAssistant Vice PresidentMarcella MustoBusiness Banking OfficerMarketingElizabeth BissellSenior Vice PresidentPina RedaDeposit Operations OfficerLaura A. MacsVice PresidentWestwoodFacilitiesRalph D. Pina, Jr.Assistant Vice PresidentDavid A. WhitneyVice PresidentWalpoleKevin DonovanMarketing OfficerFinanceAmanda P. Justice, CPAVice PresidentTreasurerAnna ConteAssistant Vice PresidentEast DedhamTrainingTracy RossiVice PresidentMobashir AliDedham SquareJudy DeLisleAssistant Vice PresidentHuman ResourcesRobin McLeodVice PresidentHuman ResourcesOperations OfficerCorporation MeetingMarch 29, 2018 2 Thomas BensonNorwood 7 Jaclyn TilksAssistant Vice President
Dedham Savings 2017 Annual ReportDedham Savings 2017 Annual ReportBank ManagementFinancial Review 2017Peter G. BrownPresidentChief Executive OfficerMark C. IngallsExecutive Vice PresidentChief Financial OfficerExecutive TeamGerard R. LavoieExecutive Vice PresidentChief Operating OfficerPamela A. MillardExecutive Vice PresidentChief Risk OfficerDouglas R. ShawExecutive Vice PresidentSenior Lending OfficerWilliam M. MullinExecutive Vice PresidentMortgage BankingVictoria A. GravesSenior Vice PresidentChief Information OfficerJames P. HanlonSenior Vice PresidentChief Technology OfficerJean M. TennihanSenior Vice PresidentHuman Resources OfficerAdministrationJohn H. Emmons, Jr.Vice PresidentBeverly SomervilleVice PresidentCRA OfficerRisk ManagementLisa JohnsonVice PresidentAuditorCarol S. Lewis, Esq.Vice PresidentCompliance OfficerCommercial LendingJoseph C. CavalliniSenior Vice PresidentNorman A. Hayes IIISenior Vice PresidentRobert J. Leary, Jr.Senior Vice PresidentWilliam F. Lindquist, IIISenior Vice PresidentAnne V. McBrideSenior Vice PresidentSenior Credit OfficerDouglas W. StevensSenior Vice PresidentJohn E. DeckerVice PresidentAbigail KingVice PresidentMichael J. MoranVice PresidentAlex CavalliniAssistant Vice PresidentMartin F. Connors, IIIAssistant Vice PresidentTessie WootenCommercial Loan Production OfficerLoan OriginationTracy E. HarvardSenior Vice PresidentLisa Forkey MurphyVice PresidentPatricia HarbourLending Operations OfficerLoan ServicingMaria G. IngegneriSenior Vice PresidentBarbara GniadoAssistant Vice PresidentCathy J. HamiltonAssistant Vice PresidentRetail LendingJames W. DunnVice PresidentSales ManagerPauline M. DzengelewskiAssistant Vice PresidentCynthia J. SullivanAssistant Vice PresidentBrendan MinichResidential Loan OfficerMichael NickleyResidential Loan OfficerElizabeth PaoliniResidential Loan OfficerSecondary MarketHolly LiteVice PresidentDeposit OperationsSue Ellen McKinnonSenior Vice PresidentMaureen NedderVice PresidentBSA & Security OfficerTonia ReillyVice PresidentKerry RigginsVice PresidentMary LussierElectronic Banking OfficerFacilitiesRalph D. Pina, Jr.Assistant Vice PresidentFinanceAmanda K. Justice, CPAVice President and TreasurerHuman ResourcesRobin McLeodAssistant Vice PresidentInformation TechnologyLaura J. TimmermanVice PresidentApril Kemp, CISAAssistant Vice PresidentInformation Security OfficerRetail BankingBranch AdministrationRobert M. ErasmiSenior Vice PresidentBranch ManagersHeidi A. BrowneVice PresidentElm StreetLaura A. MacsVice PresidentWestwoodDavid A. WhitneyVice PresidentWalpoleAnna ConteAssistant Vice PresidentEast DedhamMobashir AliDedham SquareThomas BensonNorwoodValleri LovelySouth BostonPaul J. PelletierSharonStephanie PerkinsNeedhamBusiness DevelopmentRichard BurkeVice PresidentGovernment & Not for Profit BankingCharlie ToczylowskiAssistant Vice PresidentMarcella MustoBusiness Banking SpecialistMarketingLois A. LovelyVice PresidentJaclyn TilksMarketing OfficerTrainingJudy DeLisleAssistant Vice President 6 Dedham Savings achieved excellentfinancial results as the Bankʼs balancesheet and net income reached new highsin 2017. Total footings grew 56.3Mduring 2017 to end the year at 1.444B.Outstanding loan balances rose by 38.6M or 3.70% while non-brokereddeposits declined 17.5M or 1.6% in2017. Surplus increased 13.8M to finishthe year at 160.5M. Earnings for 2017 of 12.7M were well above the 7.9Mgenerated in 2016 and this helped theBank achieve a stellar 0.90% return onassets for the year. The Bankʼs 2017financial performance was well abovethat achieved in recent years andexceeded that of most local competitorsand other savings banks headquarteredin Massachusetts.The election of Donald Trump asPresident in November 2016 and theDecember 2016 Fed tightening createdheightened market expectations headinginto 2017 of increased fiscal stimulus andfaster economic growth, and that theseoutcomes would cause longer interestrates to move sharply upward. However,longer rates largely held steady, and insome instances even trended lowerthrough much of 2017. Short-term interestrates on the other hand climbed steadilyas the Fed raised rates three times in 2017after having done so just once in each ofthe prior two years. The marketexpectation for Fed action in 2018 is forthree rate increases in 2018 and a similarnumber for 2019 so few observers projectthe end to the current cycle of monetarytightening to happen any time soon.The Trump Administration made good onits campaign promise to reduce corporateand personal income tax rates by gettingthe Tax Cut and Jobs Act of 2017 through 1BLoans 900.1Loan origination activity in 2017 wasstrong but down 6.5% relative to 2016 asthere was no surge in refinance activity in2017 as took place during the first half of2016. While residential loan volume fellyear over year, commercial loan volumewas up 8.2% on the strength ofconstruction and commercial real estatelending. Strong local real estate marketskept demand of housing high despitemodestly higher mortgage rates howeverthe supply of new homes for sale wastight which kept home sales activity incheck along with the related demand fornew loans. Strong real estate markets alsolead to improved loan credit qualitywhich was at a post-financial crisis highin 2017. Lower residential mortgage loanorigination volume and fewer bulk loansales are the reasons why net gains fromloan sales experienced a sharp year overyear decline in 2017 relative to 2016. Notonly did portfolio loan growth slow in% 934.0 988.9 1,041.0Net Interest Margin – Taxable Equivalent4%3.17%3.21%3.12%700m 640.5 610.8 621.9 163.9 151.1 143.2140m 135.4 126.5120m 619.12%400m110m300m200mUndivided Profits3.20%3% 599.8 160m3.11%800m500mStrong 2016 stock market performancewas followed by a better 2017 as the Dowwas up 25.2% and the S&P 500 returned19.7% for the year. Of much greaterimportance was the February 2017 sale ofNortheast Retirement Systems toCommunity Bank Systems, a regionalbank holding company located in upstateNew York. This transaction resulted in a 9.5 million gain from which the Bankdonated 1 million to support thephilanthropic efforts of the Bankʼscharitable foundation. 1,079.6900m600m2017 relative to prior years, so too didnon-brokered deposit growth, which wasnegative for 2017. The Bank continues toattract new core deposit balances howeverhigher short-term interest rates, boomingequity prices and the strong local realestate markets are spurring an outflow ofdeposit balances from customers whohave become less risk-averse and are nowseeking higher returns on their investablefunds. The Bankʼs new South Bostonbranch and our success in attractingdeposits from local municipalities andnonprofits are helping to stem the tide.Brokered deposits were used in a largeway in 2017 to fill funding gaps as theseproved to be a lower cost alternative toFederal Home Loan Bank borrowings.Bank Management was able to controlfunding cost growth in 2017 despite thethree Fed increases but is less optimisticfor 2018 as we expect financialinstitutions to compete more strongly forincreasingly scarcer deposit funds.Improved asset yields and controlledfunding costs enabled the Bank to achievea modest increase in net interest marginduring 2017 after taking a slight dipin 2016.Congress and signed into law just beforeyearend. Interestingly, this new lawnegatively impacted Q4 2017 earnings forthe banking industry as a whole and forour institution as the new lower federalcorporate income tax rate triggered arevaluation of deferred tax assets andliabilities that resulted in a materialone-time increase in reported tax expenseand lower Q4 earnings. However, thereduction in the federal corporate incometax rate from 35% to 21% will provide asubstantial and permanent boost to Bankearnings starting in 2018. For DedhamSavings, the estimated annual federalincome tax savings is expected to exceed 1.5M. With tax reform in the rear viewmirror, the next legislative goal for theindustry is to get regulatory relief viarollback of the most onerous Dodd-FrankAct provisions. 300.3 323.2 348.4 419.1 460.51%100m100m90m0%90m201320142015Total Retail Loans(Includes Residential,Home Equity and Consumer)20162017201320142015Total Commercial Loans(Includes Real Estate,Construction and C&I) 3 2016201720132014201520162017
Dedham Savings 2017 Annual ReportDedham Savings 2017 Annual ReportConsolidated Balance SheetsConsolidated Statements of Net IncomeDecember 31, 2017 and 2016(Dollars in thousands)2017Assets:Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,0831,70917,7922016 9,7506,19215,942Securities available for sale, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal Home Loan Bank stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loans, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Premises and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Bank-owned life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04,0732,435Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,444,380 1,388,052Liabilities:Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal Home Loan Bank advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mortgagorsʼ escrow accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,221,15036,1843,75622,7981,283,888 ded profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total liabilities and surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163,878(3,386)160,492 1,444,380151,111(4,437 )146,674 1,388,052Years ended December 31, 2017 and 2016(Dollars in thousands)2017Interest and dividend income:Loans, including fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42,6996,1868048,965 40,0095,7813145,821Interest expense:Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal Home Loan Bank advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,1531,1046,2574,5321,0355,567Net interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Provision for loan losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net interest income, after provision for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42,70815542,55340,25430539,949 Other income:Customer service fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Income from mortgage banking activities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gain on exchange of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Gain (loss) on sales and donation of securities available for sale, net . . . . . . . . . . . . . . . . . . . . . .Other-than-temporary impairment losses on equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Income from bank-owned life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Income from other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6909517613,447Operating expenses:Salaries and employee benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Occupancy and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Data processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .FDIC insurance assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Marketing and advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Charitable donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other operating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,5892,9552,0716291,0202912,73834,130Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19,0506,32511,6193,704Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2016 5 2,8421,0029,545(903)– 12,7252,5101,480–1,175(232 )562252535,800 7,915
Dedham Savings 2017 Annual ReportDedham Savings 2017 Annual ReportConsolidated Balance SheetsConsolidated Statements of Net IncomeDecember 31, 2017 and 2016(Dollars in thousands)2017Assets:Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Interest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,0831,70917,7922016 9,7506,19215,942Securities available for sale, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal Home Loan Bank stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Loans, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Premises and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Bank-owned life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Net deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,072283,3218,0334,8759941,033,4137,1044,6322
Assistant Vice President - Investment Center at Dedham Savings SPF Financial Advisor 781-320-4805 Thomas B. Miller Vice President Plimoth Investment Advisors Joseph R. King First Vice President Plimoth Investment Advisors 781-320-4865 774-319-3695 Plimoth Investment Advisors 55 Elm Street Dedham, MA 02026 Bedford Carleton-Willard
