Independent Banker - September 2018 - 44

The 2018 ICBA National Community Bank
Service Awards are sponsored by FIS
Breathing new life into historic
New England downtowns
KENNEBEC SAVINGS BANK OPENED FOR BUSINESS ON
Water Street, downtown Augusta, Maine's main drag, in
1870. Almost 150 years later, the $1 billion-asset bank
has expanded to four branches. But today, the community
bank is taking a lead role in restoring Water Street's
economic and cultural vibrancy, along with the main
streets of four other communities it serves.
For years, these New England downtowns were the
economic engines of their communities, in part because
they were near rivers, the 19th century's main " highways "
for commerce and manufacturing. (This is why many
of the main streets are named Water Street.) But when
suburban malls started springing up in the 1960s and
1970s, downtown retail suffered. Foot traffic decreased,
and with it the market for arts, culture and entertainment.
Augusta's historic Colonial Theatre was one such
casualty, closing its doors in 1969. Kennebec Savings
Bank is now helping restore the 1913 theater to its
original splendor by donating $100,000 to fix the
floor-no easy task, thanks to a leak in the roof that went
unrepaired for decades.
" From 1969 until a few months ago, the leak was
making two major holes in the floor. I'm talking
30-by-40-foot holes, " explains Kennebec Savings Bank
president and
CEO Andrew
Silsby. " A lot of
potential donors
who went into
the theater
couldn't get
beyond those
craters in the
Name: Kennebec Savings Bank
Location: Augusta, Maine
Assets: $1 billion
kennebecsavings.bank
floor. They just couldn't see it [working]. So, our dollars
are going into fixing the foundation. "
The community bank has also donated $100,000 to the
renovation of Johnson Hall, Maine's oldest opera house,
which was established in 1864 on another Water Street,
this one in nearby Gardiner, Maine.
Kennebec Savings Bank's funds aren't just going
44 Q ICBA Independent Banker Q September 2018
National Winner
Kennebec Savings Bank
toward philanthropic projects. The bank is also helping
downtown Augusta building owners help themselves by
dedicating $250,000 to a loan fund reserved for improving
the infrastructure of historic properties. The loans are
interest-free for borrowers, because the city of Augusta has
partnered with the bank to cover interest costs. Several
restaurants and shops have taken advantage of the loans
so far, and some have used them to create residential units
on the upper floors of their buildings, adding to downtown
Augusta's residential population. In two-and-a-half years,
Silsby says, 55 market-rate apartments have been added to
the downtown area, and all of them are full.
The community bank's
dedication to its service
area is longstanding.
Employees give generously
of their time, donating
around 9,000 hours
of community service
in 2017. And with no
stockholders, the bank
instead pays " community
dividends " by donating
roughly 10 percent of its
annual net income back
to the areas it serves. In
10%
Percentage of
annual net income
Kennebec Savings
Bank gives back to the
local community
2017, it gave $705,000 to 350 different organizations
in 35 communities. Silsby expects that number to rise
to $810,000 this year. He says it's a " full-time job "
managing the requests and donations, and " a lot of fun. "
Downtown's abuzz
He also enjoys seeing the beginnings of a reenergized
Water Street in downtown Augusta. " For most of my
adult life, Water Street has been a ghost town at 5
o'clock, " he says.
" I recently went down on a Tuesday night, and as I
turned the corner, I saw every parking space was taken.
That's a new phenomenon. There's a sense of community
that is hard to replicate outside of downtowns, " he
Photo: Michael D. Wilson
Independent Banker - September 2018

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