Bangor Savings remains strong

BANGOR – Bangor Savings Bank President and CEO Jim Conlon has no delusions that his company is immune from the economic woes that have swept across the country in the last year.

But the 156-year-old bank with its conservative lending portfolio has been able to minimize the peaks – and especially the valleys – that competitors have seen in recent months, Conlon said.

“I’ve never felt better about the banking industry, [but] at the same time felt so worse about the economy,” Conlon said in an interview Monday before the bank’s annual meeting. “There’s no such thing as a bank being recessionproof, but I think we’re in a good position to weather any storm.”

Despite challenging economic times, Bangor Bancorp, the parent company of Bangor Savings Bank, its 51 branches and 600 employees, announced strong earnings for its fiscal year that ended March 31. The company’s total outstanding loans grew 9 percent, or more than $139 million, and customer deposits and repurchase agreements grew another 6 percent, or $90 million.

Conlon said strategic investments and planning, including the acquisition of Biddeford-based Pepperell Bank & Trust in August 2007 and the opening of three Bangor Savings Bank branches in the Portland area, helped the company diversify.

“We’ve done extremely well down there. I couldn’t be more pleased,” he said of the southern Maine expansion. “I think people have responded to a local bank with a local name.”

The bank also touted its community outreach program, which provided more than $1 million in grants to nonprofits in the last year.

“Our initiatives and the results of our hard work should make all who do business with Bangor Savings Bank extremely proud,” said David Carlisle, the bank’s chairman. “Our commitment to relationship-based banking in a financially responsible manner clearly is the right thing for the people and businesses of Maine.”

One of the differences between Bangor Savings and some national banks comes in the area of subprime mortgage lending, which has been controversial across the country and has led to a spike in home foreclosures. Conlon said Bangor Savings Bank never ventured into those waters. As a result, the company didn’t make a significant profit in the short term, but also didn’t see a bevy of foreclosures in the long term. Bangor Savings foreclosed on 10 homes in the 2007 fiscal year and only 11 in 2008.

Things might get worse, both nationally and in Maine, but Conlon said Bangor Savings, the state’s largest independent bank, would continue to put its customers first.

“Any bank can take care of you when times are good,” he said.

Conlon also said Bangor Savings, which is not a national chain but can offer more products and services than the average community bank, is looking to further consolidate if the option is there.

But, he clarified, “We’re an acquirer. We’re not looking to be acquired.”

erussell@bangordailynews.net

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