EXPECT MORE WESTFIELD BANK 2017 ANNUAL REPORT

Transcription

1 EXPECT MORE WESTFIELD BANK 2017 ANNUAL REPORT

2 2 EXPECT MORE FROM WESTFIELD BANK NEW AND EXCITING POSSIBILITIES FOR THE FUTURE ARE EMERGING FROM THE FOUNDATION OF WHAT CAME BEFORE. At Westfield Bank, we believe our customers should expect more from their financial institution. Our focus is to become your trusted partner, dedicated to meeting your financial goals. You can expect a clear vision from us, as we work to earn your trust and provide personalized service. In 2017, we successfully met the goals we set for ourselves, which we believe will prepare us for meeting future challenges in the banking industry. We already know that we can expect to see shifting customer behaviors, regulatory oversight changes, more influence from big Jon W. Park Westfield Bank Chairman & CEO data and advanced analytics, economic expansion and contraction cycles, and more rapid technological advancements. Rapid technological advancements have already transformed money from a paper-based medium to an electronic one. In addition, the growing use and expanding capabilities of mobile devices and mobile applications will further transform banking interactions. As more of our customers choose mobile-based applications, our physical locations serve less as sites of day-to-day banking transactions and more as resource centers, where we establish new relationships, assist with the loan application process, and provide advice on specific banking needs. Looking forward, Westfield Bank is poised to accomplish our future goals in an environment that will continue to evolve at an accelerated pace. We will continually enhance our capabilities to incorporate these evolving technologies to meet and exceed customer expectations. Thanks to our valued customers, we had many successes in Expect more in 2018.

3 3 EXPECT ENHANCED CAPABILITIES: 2017 HIGHLIGHTS OUR BUSINESS MODEL IS DIFFERENT FROM OTHER BANKS: WE GET TO KNOW OUR CUSTOMERS BY NAME. We invest in quality relationships over quantity, so that we can deliver on our promise of sharing knowledge and building trust. To support this business model, Westfield Bank increased our capabilities in 2017 to make our products and services more useful and appealing to a wide range of customer needs. In 2017, we launched an exclusive checking account available to employees of companies that bank with Westfield Bank: Westfield at Work offers enhanced benefits for account holders, including discounts on loans and free checking. In September 2017, we launched Westfield Private Bank, which offers a portfolio of private banking products and special events to individuals in Northeast Ohio. We established a dedicated team of private bankers, who provide personalized service to meet the unique objectives of our clients. Our new Mansfield loan production office introduces Westfield Bank to a new market. We relocated and upgraded our Wooster location, adding improved capabilities. The state-of-the-art facility opened in April 2017 and received a Design Award from Main Street Wooster. WEALTH CREDIT B. PARKER VALID THRU WEALTH DEBIT B. PARKER VALID THRU 08/18 08/18 Our focus. Meet the requirements of individuals with a high net worth Establish banker/client relationships based on personalized service Offer expertise beyond traditional banking products Provide customized deposit and loan products that help high net worth clients meet their financial goals Our bank. Originated in 2001 with current assets of more than $1 billion Affiliated with Westfield Insurance, which was established in 1848 Focused on relationship banking in Northeast Ohio Bank office locations in Akron/Fairlawn, Brecksville, Canton, Cuyahoga Falls, Medina, Westfield Center, and Wooster Deposits insured by Federal Deposit Insurance Corporation (FDIC) Our difference. Access to senior management and local decision makers Online technology providing on-demand/anytime banking capabilities and solutions Primarily invested in people and technology, not brick and mortar Privately held and focused on long-term client relationships Listed by Crain s Cleveland Business as one of Northeast Ohio s fastest growing savings institutions 5-Star Superior Rating by BauerFinancial, an independent bank industry rating organization WESTFIELD PRIVATE BANK THE IDEAL WESTFIELD PRIVATE BANK CLIENT IS AN INDIVIDUAL, COUPLE, OR BUSINESS OWNER WITH SOPHISTICATED FINANCIAL REQUIREMENTS. BY FOCUSING ON YOUR UNIQUE OBJECTIVES, WESTFIELD PRIVATE BANK PROVIDES PERSONALIZED SERVICE SUPPORTED BY PREMIUM FINANCIAL MANAGEMENT SOLUTIONS. FOUNDED ON THE VALUE OF WORKING TOGETHER TO MEET YOUR GOALS, PRIVATE BANK WESTFIELD PRIVATE BANK PROMISES A RELATIONSHIP AS EXCLUSIVE AS YOU ARE. WESTFIELD BANK 2017 ANNUAL REPORT PRIVATE BANK westfield-bank.com EXCLUSIVE BENEFITS

4 4 SHRED-IT ENVIRONMENTAL AWARD WESTFIELD BANK SAVED: 30,000 SHEETS OF PAPER 156 TREES DIGITAL BANKING ENHANCEMENTS Today s customers demand the convenience, functionality, and speed of digital banking applications. In response, Westfield Bank launched six new mobile and online banking enhancements in 2017 that offer customers more control and faster access to information. PROCESS IMPROVEMENTS Westfield Bank continually seeks input from employees to identify opportunities to maximize customer service by improving our processes. 92% EMPLOYEE ENGAGEMENT 64,155 Gallons of Water 27CUBIC YARDS OF LANDFILL 18 BARRELS OF OIL Online Banking Push Notifications Flexible Mobile Deposit Limits ONLINE & MOBILE BANKING ENHANCEMENTS Online Account Opening Fingerprint Authentication 118 IDEAS GENERATED POPMoney P2P Payments Automated Reporting of Treasury Management Activities 9.17 TONS OF PAPER SHREDDED EARNED THE BAUER FINANCIAL 5-STAR RATING FOR 33 CONSECUTIVE QUARTERS

5 5 Over COMMUNITY ENGAGEMENT Westfield Bank is committed to building and fostering positive relationships among our customers and within our communities. We are active in the Northeast Ohio communities we serve: In 2017, we sponsored over 130 events. For example, Westfield Bank was a major sponsor of the American Heart Association 2017 Akron Heart Walk, and over 25 of our employees participated in the event. Jon Park was selected to serve as chairman of the 2018 Akron Heart Walk. We hosted a full calendar of business-focused networking events and educational symposiums throughout In addition, we supported and attended multiple Northeast Ohio business and networking events, connecting with over 3,000 area leaders. These connections lead to valuable touchpoints for our customers. 350 Partnered with University of Akron to educate 350 high schoolers on managing finances and preparing for a fiscally responsible future. CUSTOMER SATISFACTION Westfield Bank is known for building relationships based on trust, and trust requires keeping the channels of communication open. In 2017, we asked our retail customers how satisfied they are with the products and services we provide. We appreciate and listen to what our customers have to say, and act on their feedback to make Westfield Bank even better. were likely or highly likely to 78% recommend Westfield Bank 82% rated satisfaction as high or extremely high WESTFIELD BANK 2017 ANNUAL REPORT

6 6 WESTFIELD BANCORP FINANCIAL HIGHLIGHTS (Dollars in thousands) (Unaudited) REVENUE (in thousands) FOR THE YEAR Gross Revenue $58,970 $50,467 $46,865 $39,658 $38,710 Operating Income* 12,319 9,003 9,512 8,008 7,875 Net Income (after tax) 12,319 8,692 9,512 6,869 7,875 Return on Average Equity* 8.40% 6.80% 7.80% 7.80% 8.70% Return on Average Assets* 0.90% 0.70% 0.90% 0.90% 0.90% Net Interest Margin 3.54% 3.47% 3.56% 3.60% 3.65% Net Charge-offs to Average Loans 0.02% 0.10% -0.03% 0.11% 0.13% AT YEAR END Total Assets $1,439,589 $1,293,851 $1,142,817 $1,036,867 $884,700 Loans 1,131,086 1,020, , , ,515 Investment Securities 197, , , , ,953 Deposits 1,014, , , , ,696 Shareholders Equity 153, , , ,165 92,187 Equity-to-Assets Ratio 10.70% 10.60% 11.00% 11.30% 10.40% Asset Growth Rate 11.30% 13.20% 10.20% 17.20% 6.00% 2017 $58, $50, $46, $39, $38,710 Prepared in accordance with U.S. GAAP *Results based on non-u.s. GAAP basis with the primary difference being operating income excludes nonrecurring charges related to business acquisitions.

7 7 INTRODUCING MIKE TOTH EXECUTIVE VICE PRESIDENT, CHIEF EXPERIENCE OFFICER Westfield Bank continuously seeks out reputable, experienced bankers, who are well known in the local communities of Northeast Ohio. In 2017, we enhanced our leadership team with the addition of Mike Toth, who serves as our Executive Vice President, Chief Experience Officer. A graduate of the Weatherhead School of Management at Case Western Reserve University, Mike has a long-established career in the banking industry in Northeast Ohio. His role at Westfield Bank is to place our customers at the center of everything we do. Mike defines that effort as enhancing processes and products to make them client-friendly, and employees having a true end-to-end process orientation of serving clients. He believes that the client experience starts from the first client interaction. Mike also believes that all Westfield Bank employees must embrace the focus on our clients, from front-line to back office to boardroom. Truly placing the customer at the center requires a continual relationship, based on determining client expectations, and setting and meeting client objectives. WESTFIELD BANK 2017 ANNUAL REPORT

8 RETAIL BANKING: Personalized customer service, robust security, and low fees. BUSINESS BANKING: Knowledgeable advice, access to decision makers, and fast turnarounds. AGENCY BANKING: Industry-specific guidance, customized solutions, and comprehensive lending options. Akron 2923 Smith Road Akron, Ohio Brecksville 8751 Brecksville Road Brecksville, Ohio Canton 4809 Dressler Road NW Canton, Ohio Cuyahoga Falls 140 Portage Trail Cuyahoga Falls, Ohio Cuyahoga Falls 505 Graham Road Cuyahoga Falls, Ohio Medina 4015 Medina Road Medina, Ohio Westfield Center Two Park Circle Westfield Center, Ohio Wooster 105 E. Liberty Street Wooster, Ohio /18