2020 Annual Report

A Look Back, A Look Ahead

A Message from Our President and Chairman of the Board of Directors

As we reflect on 2020 and the continuing effects of the pandemic during 2021, we can't help but marvel over the uncommon valor showed by our employees and the entire community banking industry in the face of this overwhelming adversity. Upon being classified as an essential business by the federal government in the early stages of the pandemic, our employees rose to the challenge of continuing to serve our customers and played a key role in helping numerous small businesses, and something we celebrate with this report.

Upon the onset of the pandemic, our employees worked feverishly to adapt to the difficult environment with which we were faced. Be it our front-line employees adapting to safely serving our customers or the back-office staff who quickly mobilized to work from home, it was an effort that was nothing short of extraordinary. An effort that showed extreme resiliency in the face of rough and unchartered waters.

We were there for our commercial customers providing $68 Million in Paycheck Protection Program (PPP) loans to keep their businesses open and their workers employed. We were there for our customers who were struggling financially to make their loan payments. As community bankers, we answered these calls for help. We supported numerous nonprofits in the communities we serve with donations as demand for their services reached record highs. We were there as a pillar in the community as we have been for the past 160-plus years.

As community bankers, we thank our employees for being "economic first responders" and for the role they played being a critical part of the solution during this difficult moment in our history. We would also like to recognize and thank the healthcare workers and first responders for the difficult work they faced and their herculean efforts in saving so many lives.

During this feat of navigating the pandemic throughout 2020, we also diligently laid the foundation for our Bank consolidation plans as we entered into a new and exciting era for our organization in 2021. Effective January 4, 2021, we successfully consolidated our three state banking charters under Northwest Community Bank, with Collinsville Bank and Litchfield Bancorp as operating divisions. Under this structure, our banks maintain their brand identities and provide us with operational efficiencies that will allow us to compete as a thriving community bank for generations to come. Importantly, no employees lost their job and no branches were closed as a result of this consolidation, which served to solidify our historical commitment to mutuality.

As we are now fully immersed in 2021, we remain cautiously optimistic that the pandemic will be behind us soon as the light at the end of the tunnel continues to brighten. We continue to operate in a very strong financial position with healthy earnings and a strong balance sheet with exceptional asset (loan) quality and a strong capital position. We continue to experience robust growth in the form of loans and deposits, and look forward to welcoming customers into our two newest branch locations in Farmington and Simsbury.

In closing, we feel this is not a period in time to forget. Rather, it is a time to remember. A time to remember how we as a vibrant community and local bank came together to address the biggest challenge of our lifetimes. We are proud of what we accomplished in serving our customers and thank you for the trust you have bestowed in us and for your continued support. As we look forward to the bright rays of hope on the horizon, we hope you remain safe and healthy, and that a world of normalcy returns for all of you very soon.


Stephen P. Reilly
President & CEO

Stephen P. Reilly

William J. Shea II
Chairman

William J. Shea II

Stephen P. Reilly
President & CEO

William J. Shea II
Chairman

A Dedicated Team, Loyal Customers, Caring Communities

Making A Difference

Community Banking At It's Best

The Paycheck Protection Program (PPP)

After Congress approved the CARES Act, our teams jumped into action and worked in shifts throughout the day and night to secure PPP funds for our customers.

COVID Assistance

Following stay-at-home orders and state officials requiring the closure of businesses, we recognized our communities were going to be impacted significantly. We were able to provide emergency assistance to over 330 mortgage borrowers and 170 commercial loan customers who requested payment deferments during the COVID-19 crisis. We waived all Insufficient, Uncollected Funds and Early Withdrawal Penalties on CDs for 60 days at the start of the pandemic.

Best of the Valley

Collinsville Bank was voted "Best Bank" by the readership of The Valley Press. It is a great honor to serve our community and we appreciate the recognition.

Continued Growth

In 2020, we opened two new locations to better serve our customers.

Our New Branch in Farmington, CT

In September, following social distancing protocols, we held a small gathering, for the ribbon-cutting ceremony at our new Farmington branch, which had opened in February 2020.

Our New Branch in Simsbury, CT

In December, we had a soft opening of our Simsbury branch, followed by the official ribbon-cutting in January 2021.

Record-Setting Year of Home Sales

The pandemic inspired local people and out-of-state residents alike to make a move and to purchase new homes. In 2020, our Banks wrote 572 mortgages - totaling $129 Million-a significant increase from the previous year. Of those 572 mortgages, we were able to make the dream of homeownership possible for 29 first-time homebuyers.

The Bank is proud to partner with the Federal Home Loan Bank of Boston to provide additional grant programs to qualified borrowers using their Equity Builder and HOW programs.

Higher Demand for
Home Improvement Loans

While spending more time at home, borrowers recognized the need for home improvements and there was steady growth in those loans. We were happy to help our customers feather their nests.

All the while, the Banks also migrated to a new Loan Origination System for both residential and consumer loans to streamline many processes.

Convenience Banking

The COVID-19 crisis saw the Banks and our customers adjusting to how banking transactions can be done. Some customers who were hesitant about signing up for eBanking and Mobile Banking reconsidered their options and realized how easy and secure it is. The Banks made updates to our Online and Mobile Banking platforms, bringing together a new look and enhanced features.

Always together, even while apart

One of the things we missed the most when we closed our lobbies in response to CDC recommendations, was seeing our customers and co-workers in person. We were happy to continue to assist with our customer's needs via our drive-ups, telephone and with appointments as needed.

Our employees quickly adjusted to ever changing conditions to ensure customers continued to receive the best customer service possible. Our retail staff were front-line essential workers who showed up with a smile... even if you couldn't see it behind their masks! Our support staff members were able to transition to remote work with new "work-from-home" set-ups, including video conferencing. Even our annual holiday party was held via Zoom in 2020!

2020 Donations by the Banks: $288,324 supporting 241 organizations