Groton - Chelsea Groton Bank saw its profits dip by nearly 20 percent last year, thanks largely to bad-loan charge-offs, but the institution's assets, deposits and investments rose significantly, according to its annual financial report.
Profits for the year at the mutual bank were $3.1 million, compared with nearly $3.9 million in the previous annual report. Over the same period, assets increased 3 percent, deposits 5.5 percent and investments 11.2 percent.
"We were able to grow our loan portfolio, significantly increasing our business loans compared to the year before, and provide more money for mortgages than any other bank or credit union in New London County," said bank president and chief executive Michael Rauh at the bank's annual meeting, which was held last week at the Mystic Marriott.
Chelsea Groton set aside nearly $8 million for possible loan losses last year, compared with nearly $6.9 million the previous year. Its inventory of owned properties reached $2 million last year compared with $1.85 million the year before.
The bank's total capital increased more than $3 million to $120.6 million, and Rauh termed Chelsea Groton's performance "very strong." Its assets-to-capital ratio remained a buoyant 14.4 percent, "a clear indication of safety and soundness," according to Rauh.
The bank gave away more than $277,000 to local nonprofits last year.
"Through the strategic planning process over the past year, our board of trustees recommitted to remaining a mutual bank," Rauh said. "We work exclusively for the benefit of our customers and the communities we serve - not for a group of shareholders."
To see the bank's 2011 financials online, go to http://chelseagroton.com/PDFs/Financials2011.pdf.
In other business, Chelsea Groton named new corporators Lori Danis, manager of James Family Commercial Properties; Nancy Hillery, president and general manager of The Hillery Company and Conn-Fab Sales, and William Turner, regional director of AT&T.