A BANK THAT PUTS THE COMMUNITY IN THE SPOTLIGHT.

Every year, Guilford Savings Bank reinvests in the community we serve. From art and

culture to the art of caregiving, it is among our strongest core values to consider a vibrant community our most important asset.

TALKING POINTS...

GSB has a heart for the arts and community giving.

The Bank increased its sponsorship of the Ivoryton Playhouse in Essex this year, becoming one of only four season sponsors and helping multiple nonprofits meet their fiscal goals in the process.

Not only does the Bank’s sponsorship of the Playhouse – one that extends years back

– show its commitment to the performing arts and arts on the shoreline in general, it also serves as a way to bolster other organization’s charitable efforts.

The Ivoryton installs a custom tent on its patio adjacent to the theatre for four months each summer and invites nonprofits to use the facility for fundraising efforts by allowing the organization to keep a portion of the ticket price for the chosen evening’s show. Last year, 18 nonprofit events were held under the tent, with some groups coming from as far as the Greater Hartford area.

“Groups include the Valley Shore YMCA and the Coalition for Housing and Homelessness. The Playhouse has been

responsible for helping organizations raise tens of thousands of dollars for their work and GSB has allowed us the opportunity to do that,” explained Ivoryton Playhouse Managing Director Krista May.

The Bank also hosts a corporate event under the tent at the Playhouse annually.

The Ivoryton is more than a century old and its executive director, Jacqueline Hubbard, celebrates her 25th anniversary there this year. It has grown over the years from a small theatre to a $2 million business that hosts seven professional main stage shows as well as a holiday show each year. Its membership continues to grow and the theatre operated at 82 percent capacity last year.

“In a world where the arts are often the first things cut, we’re so grateful for the support we receive from the community and sponsors like GSB,” May said. “Honestly, the Playhouse is an absolute treasure. It’s a gem for the state and certainly for the shoreline. When everything is so serious and crazy in the world, we’re one of those havens that can provide great entertainment and a lot of heart and commitment to our community.”

TENT EVENTS AT THE IVORYTON PLAYHOUSE: ONE OF THE MANY WAYS GSB IS PROUD TO BE THE SPONSOR OF SUMMER!

Camp Rising Sun: Annual Night Out

Cystic Fibrosis Foundation: New Haven’s Finest

Hometown Harmonies: A Celebration of our Communities

Valley Shore Y: Golf Classic

Essex Lions Club: Lobster Bake

New Reach: Summer on the Sound

The Kate Gala

Community Foundation of Middlesex: Endless Summer

Old Saybrook Historical Society: Taste of the Town

Estuary Council of Seniors: Shoreline Chefs

UPCOMING EVENTS7/17

7/18

7/19

7/22

8/3

8/8

8/24

9/4

9/7

9/22

GSB FINANCIALS As of March 31, 2019 (In Thousands) GSB FINANCIALS As of March 31, 2019

(In Thousands) GSB WEALTH MANAGEMENT FINANCIALS* As of March 31, 2019 (In Thousands)

In an era when everything from news sources to incoming calls are under suspicion, this is an interesting time to be in banking. Security through a trusted resource remains a primary concern while demands for innovative financial technology continue to rise. As a result, the desire for increased privacy is squarely juxtaposed to the demand for increased access through technology.

In the midst of this environment, Guilford Savings Bank (GSB) retains a solid foundation while consistently evolving to provide access to valuable, necessary and contemporary resources. Whether opening your first checking account online or looking to have a face-to-face conversation about the benefits of a reverse mortgage, GSB is a lifetime financial partner you can trust.

I am always grateful to share with our customers and the community at large the demonstrated efforts by GSB employees for continuous growth and improved services. Kathleen Duncan, featured in this edition of “CORE,” has been a stand-out talent in her representation of reverse mortgages. This is a new role for Kathy and she has been a great fit — enthusiastically supporting customers to fulfill their goal through trusted information and advice.

Speaking of trusted information, I am pleased to report that the Bank continues to have solid financial performance in all areas. In other areas of performance, our staff continues to invest in our community through nonprofit board service and volunteer hours. GSB matches these human resources with financial resources as we reinvest into the communities we serve. As a mutual Bank, we thrive if the communities we serve thrive, and this is part of the GSB core values.

In April, EVP and Chief Financial Officer Kyle Eagleson and I attended the American Bankers Association (ABA) Washington Summit – to make sure the voice of the community Bank was heard. The Summit is the largest annual gathering of banking leaders in the nation’s capital. This year’s topics included housing refinance reform, data security, economic growth projections and the key roles bankers play in Federal governance.

With regard to data security, Senate Banking chairman, Mike Crapo (R-Idaho), remarked that the financial services industry excels in the area of data privacy and security versus other industries

and should be recognized for the high standards already in place at these financial institutions.

Although large, public institutions often take center stage in this kind of arena, we believe that the mutual institutions with a grassroots level, community perspective, offer critical insight and we value the opportunity to share our success and viewpoint with our peers.

In other news, GSB welcomed six new members to its Board of Corporators. This is an eclectic group with diverse career and personal backgrounds hailing from around the state and we are privileged to have them. In acclimating them to GSB, I shared that all of our services, including wealth management and financial planning, are carried out with our customers in mind. Centric to our work is our effort to understand the needs of each individual and to fill them, utilizing for their benefit the latest technology with our personal touch.

AS ALWAYS, MY DOOR IS ALWAYS OPEN. I WELCOME INPUT FROM THE COMMUNITY IN GUIDING US TO BE THE ONLY BANK YOU EVER NEED.

A HEART FOR HOME OWNERS

Kathy Duncan has been with Guilford Savings Bank for more than six years – formerly in the role of branch manager – but she recently took on the position of Reverse Mortgage Specialist at the start of the year. She said what she enjoys most about her day is the chance to connect with members of the public and to educate them on the benefits of reverse mortgages to help them meet their financial goals.

For many people, homes are their biggest asset.

That’s why Kathy Duncan wishes she had known about reverse mortgages when her father was developing dementia.

“We would have been able to keep him at home with in-home care instead of moving him to a dementia unit that quickly ate up all of his funds,” she said. “It’s important to me that I let people my age know about this option when dealing with their aging parents.”

As an Assistant Vice President and Reverse Mortgage Specialist with Guilford Savings Bank, Duncan is able to fulfill that intent of

Timothy P. GeelanPresident & CEOTGeelan@GSByourbank.com(203) 458-5456

ensuring others are well informed of their options.

Although she has been with GSB – formerly in the role of branch manager – for more than six years, she just recently took on the position of Reverse Mortgage Specialist at the beginning of the year and is eager to share The Bank’s expertise with the community. She emphasizes The Bank’s longstanding reputation as a credible and trustworthy resource for financial needs, from early days of banking to one’s golden years.

“I spend my days trying to make contacts with people who may have a need for a reverse mortgage or who know somebody who may have that need,” Duncan said.

In a way it’s a labor of love, as the primary goal for GSB promoting reverse mortgages is to fill a community need, she said.

“GSB really wants to keep the reverse mortgage product available as a service to the community,” Duncan explained. “We’re not the lender that provides the reverse mortgages, we work with a third party, but we really do this as a community service because we want our customers to know they can rely on us when their needs diversify.”

A reverse mortgage – designed for homeowners age 62 or older – is a mortgage loan, typically on residential property, that allows the borrower to access the property’s value. Unlike traditional mortgages in which you pay the bank each month, in a reverse mortgage the bank pays you to allow you to take advantage of the appreciated value of

your house and unlock the equity in your home.

The reverse mortgage offered through GSB’s mortgage lender, the Home Equity Conversion Mortgage, is insured by the Federal Housing Administration, making it a secure way to gain access to additional funds while living on a limited income.

“They are most commonly used as a financial planning or retirement tool,” Duncan explained.

“For example, if somebody wants to retire when they’re 65 and their financial advisor tells them their investments will take them to age 82, when those investments start running low, the reverse mortgage can kick in so they don’t have to feel a loss in income and they can stay in their homes.”

Duncan has focused efforts on connecting with home care agencies to help educate agency clients who want to stay at home of the benefits of the reverse mortgage in terms of supplementing the expense of an in-home aide so the person doesn’t need to move into a facility.

She also works at combating the myths and negativity that surround reverse mortgages, including a persistent belief that a reverse mortgage makes a homeowner more susceptible to foreclosure.

“If you pay your taxes and insurance, that won’t be the case,” Duncan said. “I encourage people to learn all the facts. Every reverse mortgage conversation is very specific to the individual. It’s not a traditional mortgage, so the situation differs

and can benefit people in different ways from supplementing monthly income to simply a line of credit that sits there and is available when they need it – for example, if something happens to their home and they need to repair the roof.”

What Duncan enjoys most about her role is the opportunity to work with people to help them reach their financial goals, much as she did when she was a branch manager.

“I feel like I’m connecting with different people in the communities. Before I was tied to the branch so I would see people specific to that area, and now I’m getting out and meeting even more people,” she said.

Duncan has a diverse work history that includes both banking and work in emergency department patient registration in the hospital setting, but all of her experience, she said, has been tied to her love of customer service.

“I like helping people. This is what I’ve always liked. This is just a different category of people to help,” she said of her work promoting reverse mortgages.

“Don’t be afraid to ask me questions. I’m happy to answer anything.”

KATHY DUNCAN IS FOCUSED ON PROMOTING REVERSE MORTGAGES* FOR THE BENEFIT OF THE COMMUNITY MEMBERS SHE HOLDS DEAR

Above: This is a third party product and will not be underwritten, funded or serviced by the Bank. This material is not from HUD or FHA and has not been approved by HUD or a government agency.

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

ASSETS UNDER MANAGEMENT

2015 2016 2017 2018 2019

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

2015 2016 2017 2018 2019

GROSS REVENUE

0%

5%

10%

15%

20%

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2015 2016 2017 2018 2019

CAPITAL

Total Capital Tier 1 Capital Tier 1 Capital Ratio

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

2015 2016 2017 2018 2019

HISTORICAL GROWTH(2019 Pretax Income Reflected On an Annualized Basis)

Total Assets Loans Pretax Income - Excluding Securities Gain (Loss)

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2015 2016 2017 2018 2019

REAL ESTATE LOANS(Excludes Deferred Fees)

Total Loans Residential Real Estate Commercial Real Estate

$117,348 $124,512 $139,073 $155,454 $164,953

$127,026 $132,117 $131,333 $145,582 $146,634

$100,483 $112,045

$118,293 $123,441 $123,570 $52,770

$58,837 $77,420

$94,265 $101,337

$71,644 $79,084

$88,675

$75,346 $65,337

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2015 2016 2017 2018 2019

TOTAL DEPOSITS(Excludes Escrow, Sweeps and Brokered CDs)

Retail CD MMDA Savings Int. Bearing DDA DDA

*Below: GSB Wealth Management, LLC is a separate subsidiary of The Guilford Savings Bank. GSB Wealth Management, LLC is a registered investment advisor and makes investment recommendations that involve products that are not Bank deposits, are not guaranteed by the Bank, not FDIC insured and involve investment risks, including the possible loss of principal.