FINANCIAL STATEMENTS

Consolidated Reports of Financial Condition
Dollar Amounts in Thousands

President's Message

I am pleased to report that Essex Savings Bank has had the 4th best fiscal year since our founding in 1851. Our credit quality continues to be excellent and our capital remains more than double the requirement of the FDIC to be considered well capitalized. We have zero foreclosed properties. This year we will be distributing another quarter of a million dollars to worthy non-profits whose needs are ever -increasing. By year end, we will have contributed to the community in excess of $2.6 million over the past 13 years, equivalent to ten percent of our after tax net income.

Work has started at our Madison site where Essex Savings Bank and Essex Financial Services will open a new financial services center - the first expansion of our footprint in twenty years. We are also proud to report that we have enhanced our Trust Department with the addition of two superb professionals, attorneys Granville Morris and Moira Martin, who continue to bring the level of expertise and Trust service to new heights. Total trust assets stood at $154 million as of December 31, 2008 due to their excellent progress in expanding relationships.

For the year ended December 31, 2008, net income of $2.0 million decreased a modest 5.8% from the previous year of $2.2 million due largely to the initiatives and investments designed into our strategic plan. Through these initiatives we are maximizing our strength in this market and are positioning ourselves to seize opportunities as they arise. Total assets for the Bank rose to $270 million, a 4.5% increase from the $259 million reported in 2007, and capital increased by 5.9% to $31 million.

Mr. John W. Rafal, President of Essex Financial Services, and his talented team, reported record earnings. Gross revenue for the fiscal year ending September 30, 2008 increased 7.6% from $10.8 million the previous year to $11.6 million. Assets under management were $2.1 billion at fiscal year end. Due to unprecedented market conditions, more and more people are looking to independent firms for the service and performance they feel they cannot obtain from large regional and national entities. Mr. Rafal was named number one by Barron’s Magazine in their annual ranking of America’s Top Independent Financial Advisers for the second year in a row, which has certainly helped with the flow of new business.

We appreciate the opportunity to respond to your financial needs and provide consultative advice coupled with the personal attention you deserve. We are grateful for the effort of our Directors, Trustees, Officers and Staff who contribute enormously to our success.

Sincerely,


Gregory R. Shook
President & Chief Executive Officer

 

Member FDIC           Equal Housing Lender
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