GSB Core Magazine, Community Newsletter, Q3 2021

Grow with us: GSB is hiring.

We’re branching out — while honoring our roots.

Let’s GROW!

Hello Northford!

deposits as stimulus payments aimed at economic relief were issued.

As is our tradition, we leveraged this strong financial position by expanding services and exploring innovative products to enhance customer experiences. While we are proud to continue to evolve our digital capabilities, we also continue to expand our physical reach. The opening of our North Haven branch allowed us to engage with customers and meet needs and demands while offering unparalleled customer service.

To the community we serve, As the world continues to manage the impact of the pandemic, we are honored to share that without fail, we are serving our customers during what will be looked upon as one of the most challenging periods in history. As a financial institution that has witnessed many eras of crisis, in the midst of this experience, we are continuing to grow in thoughtful ways — ensuring the stability and accessibility of this community institution.

Few banks like GSB remain. We credit our longevity to a shared commitment to core values and a desire to help our communities thrive.

COVID-19 has had far reaching effects, stressing our supply chains to the breaking point and creating a need for a secure shelter for savings.

As a result of being a trusted resource, our community bank has experienced a growth in

GSB FINANCIALS

At GSB, we not only cultivate an environment where customers receive individualized and personal service, we cultivate a culture for our employees where their growth and goals reflect the bank as a whole. We are all working on a common effort to remain a vibrant and responsible community resource.

I AM PROUD TO SHARE WITH YOU IN THE FOLLOWING PAGES STORIES OF THE INSPIRING WORK THAT IS ONGOING AT GSB TO REMAIN THE ONLY BANK YOU’LL EVER NEED.

We will soon open our eighth branch location in Northford, allowing us to strengthen our roots, while branching out. Our community presence in this new location will build a bridge between our existing branch offices in Branford and North Haven. As we invest in this real estate, we also continue to make a difference through volunteer efforts and philanthropy.

Moving forward, we are expanding through technology while reinforcing our personal approach to banking. We know our efforts to grow – be it in lending, locations, employees, technology or services – will lead to the increased vitality of the communities we serve.

We want to help the businesses who engage with us meet their expansion goals. We want to help people become homeowners or achieve personal financial milestones. We want to see economies thrive.

Timothy P. Geelan, President & CEO TGeelan@GSByourbank.com (203) 458-5456

As of June 30, 2021 (In Thousands)

GROWTH GROWTH

(2021 PRETAX INCOME REFLECTED ON AN ANNUALIZED BASIS)

CAPITAL

(2021 PRETAX INCOME REFLECTED ON AN ANNUALIZED BASIS)

$1,100,000 $1,100,000 $1,000,000 $1,000,000 $900,000 $900,000 $800,000 $800,000 $700,000 $700,000 $600,000 $600,000 $500,000 $500,000 $400,000 $400,000 $300,000 $300,000 $200,000 $200,000 $100,000 $100,000 $$-

2

$120,000

$10,000 $10,000 $8,000 $8,000

Loans

15% $80,000

$60,000

$4,000 $4,000

$40,000

$2017 2018 2019 2020 2021 $2017 Total Assets 2018 2020 2021 Gains (Losses) Loans 2019 Pretax Income - Excluding Investment Total Assets

$100,000

$6,000 $6,000

$2,000 $2,000

Pretax Income - Excluding Investment Gains (Losses)

20%

10%

5% $20,000

$-

0% 2016

2017 Tier 1 Capital

2018

2019

2020

6/30/21

Tier 1 Leverage Ratio

BRANCHING OUT, WHILE STRENGTHENING OUR ROOTS.

“And with the strong residential housing market, GSB originated $65 million in residential loans as of June of this year. We are honored that more and more consumers understand the goodwill and good impact of choosing a community bank.”

GSB continues to reach new milestones in deposits and lending, as we increase our state-wide presence in both branch locations and market share.

During 2020, retail deposits grew by $90.1 million, and thus far in 2021, another $39.6 million increase has been noted on the ledger, including $6 million in new deposits from the opening of the bank’s North Haven branch.

As GSB prepares to open another branch location in Northford and makes strategic plans for the year ahead, we recognize the continued challenges of the pandemic, but we are more secure than ever in both our ability to maximize opportunities while demonstrating our ability to serve customers and community.

One vital example of this service was the final round of the Paycheck Protection Program (PPP).

In 2021, GSB originated nearly $18 million in this final phase of funding which helped more than 230 Connecticut local businesses, according to Steven Supernaugh, SVP, Controller.

“As consumers sought stable options for their savings with us, we leveraged this strong deposit growth to fund residential and commercial loans throughout the state,” Supernaugh explained.

“We are seeing an increased consumer awareness about the negative aspects of large mergers and acquisitions,” explained Heidi Samuelson, VP, Branch Administration Officer. “Bank closings and large staff layoffs are turn-offs to consumers who understand, on a personal level, the lack of commitment to core values is made apparent by these corporate actions.”

With the strength in the housing market and people migrating to more rural areas with the ability of remote work, more people are coming to the areas served by GSB, and Supernaugh and Samuelson expect the growth trend to continue.

“GSB has never been the type of institution to gain new depositors simply by offering rate teasers. We are focused on building long-lasting relationships,” Samuelson said. “We continue to run this longstanding institution based on our core values. Our bankers are trained and encouraged to provide the best possible customer experience. Our culture embraces creative thinkers who are empowered to think outside the box. We really do listen to our customers, and we work hard to find solutions that are beneficial while maintaining safety and soundness for the bank.”

“We continue our organic growth by increasing customer services, product innovation, branch expansion and increasing our cash management presence,” Supernaugh explained. “We continue

GSB FINANCIALS

to grow our statewide presence both on Main Street and online.”

All of this supports homeownership and business growth in the communities served by GSB, which is, of course, a mission-driven result.

“Growth in lending affords people in our communities the opportunity to thrive,” Samuelson said. “It enables them to own a home, develop or expand a business, provide employment opportunities; all are ultimately tied together and create a prosperous local economy and a true sense of community.”

The opening of the Northford office should only continue to bolster this success. “The addition of this new location expands our community presence between our Branford and North Haven offices,” Supernaugh said.

“We’re bringing community banking to this market, providing loan and deposit services to new customers while supporting the area with investments and volunteerism.”

Samuelson agrees. “Our niche is in understanding how valuable our communities are: the people that live in them, the businesses that operate in them, and the people that work in them,” she said. “Remaining a mutual savings institution and not being governed by pressures to please stockholders is the first item on our strategic plan; it’s in our best interest when our communities succeed. We can and will do what it takes to be the only bank you’ll ever need.”

As of June 30, 2021 (In Thousands)

LOANS

TOTAL DEPOSITS

(EXCLUDE S DE FE R RE D FE E S)

( EX C LUDES ES C R O W A N D B R O KER ED C DS )

$800,000

$700,000

$700,000

$600,000

$81,996 $66,246

$600,000

$171,348

$75,346

$500,000

$500,000

$400,000

$400,000

$300,000

$300,000

$200,000

$200,000

$100,000

$100,000

$2017 Total Loans

2018

2019

Residential Real Estate

2020

2021

Commercial Real Estate

$93,217

$184,657

$123,821

$88,675 $94,265 $77,420 $118,293

$131,333

$139,073

$147,490

$171,066

$182,927

$123,441

$145,582

$138,640

$169,154

$176,404

$155,454

$163,402

$136,781

$133,027

2019

2020

2021

$2017 Retail CD

2018 MMDA

Savings

Int. Bearing DDA

DDA

3

A NEW CROP OF BUSINESS OPPORTUNITIES. While GSB continues to evolve in new, missiondriven ways, purposeful growth remains an important focus. Commercial loan initiatives are an important way GSB is expanding its ability to service customers and the community.

“We are truly focused on helping businesses run as efficiently as possible,” Crampton explained.

“When we bring on a client for any of our cash management services, they are really getting white glove service. We have aggressive growth goals, but our level of individualized and personalized client interaction will never be compromised by that growth. A lot of big banks offer cash management services, but once you’re signed up you’re sort of a number, and that will never happen with us.”

“We’ve come a long way on the digital side,” Paz said. “Having that option helps the communication between us and the businesses and helps facilitate things much quicker. Our lenders are very experienced in a lot of different facets of commercial lending and it’s nice to have the connections and outreach capabilities that we do on the shoreline, but we do also have a lot of expertise across the state so we feel comfortable as we grow that we’re doing that prudently.”

As GSB grows, digital presence has become a “Although commercial loan growth initiatives focal point for service to customers. Whether it’s continue to expand the reach of GSB, the opening an account, getting a debit card, setting up bank remains very committed to our existing online banking or otherwise engaging with GSB customers,” Paz said. remotely, offerings continue to evolve and improve.

“We’re balancing well our desire to serve customers For the client’s Crampton works with, enabling throughout Connecticut while still retaining customers to do things like process large amounts of strong relationships on the shoreline.” he said. checks from their office rather than visiting a branch helps improve day-to-day operations and efficiencies. The cash management team is involved in a variety of communities, not just within the GSB footprint with With an understanding that each client’s level regard to branches, Crampton explained, because the of technological understanding varies, the GSB bank is committed to supporting a thriving economy “We are, as always, focused on building team works hard to address specific needs on a wherever its customers live and work. relationships which are central to an ownercase-by-case basis. occupied project,” Paz said. “Growth of “We go to a number of commercial loans helps the bank reach diversified “That’s the GSB way,” Crampton said. “That business events even where markets, allowing us to provide business and ‘client first’ focus and relationship piece is what we don’t have branches personal financial services to a broader base. is most important.” because being involved in the communities where we Helping business clients grow and achieve goals Personal attention is the critical piece of the puzzle, have customers is critical is what brings joy to the workday for Teresa and something that is only enhanced by enabling to helping those communities thrive,” she said.

Crampton, VP, Director of Cash Management. customers to access most services remotely while “That is something at which GSB as a whole does knowing a GSB team member is never out of reach. a very good job.”

“We are a statewide lender and we strive to maximize new opportunities throughout Connecticut,” shares Mike Paz, VP, Commercial Loan Origination Manager. “The commercial side of our operation offers a favorable rate yield which helps reduce our interest rate sensitivity so we can build a balanced loan portfolio to better meet the needs of all our customers.”

GSB WEALTH MANAGEMENT FINANCIALS*

As of June 30, 2021 (In Thousands)

*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.

GROSS REVENUE

ASSETS ASSETS ASSETS ASSETS ASSETS ASSETS UNDER UNDER UNDER UNDER UNDER UNDER MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT

(2021 REFLECTED ON AN ANNUALIZED BASIS)

$3,500 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000

$3,000

$400,000 $400,000 $400,000 $400,000 $400,000 $400,000

$300,000 $300,000 $300,000 $300,000 $300,000 $300,000

$2,500

$200,000 $200,000 $200,000 $200,000 $200,000 $200,000

$2,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

$1,500

$$-$-$-$-$2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021

4

2017

2018

2019 (In thousands)

2020

2021

A NEW GENERATION OF BANKERS

in training and development, Stephanie finds joy in educating others, both her peers and those in the community with regard to financial wellness.

GSB understands that our most valuable investment is our people. The face of our institution from the drive-thru to a commercial loan closing, our team of more than 140 banking professionals define the values and the future of our community bank.

As we grow internally and externally, we’re proud of an organization that keeps pace at every opportunity.

In the paragraphs that follow, we’re honored to share a few stories (among many) of team members who aspire to a banking career that includes a personal commitment to reflect common core values and to meet the needs of each individual customer.

Jen Corradi, Relationship Development Specialist

“GSB truly believes in the strength of the community and is committed to remaining an independent, mutual savings institution. Not only does the bank support the local economy by donating money to several excellent community foundations, its people also spend their time getting involved and serve on numerous non-profit boards,” Stephanie said. “I want to help prepare younger generations for future financial success to help cultivate a community proficient in budgeting, saving, borrowing and investing. I am dedicated to serving the financial needs of our customers now and into the future; good financial habits begin close to home.”

A lifelong Guilford resident, upon completing her undergraduate degree, Jen gravitated to GSB as a potential employer, hoping to make a career with an organization that placed such high value on commitment to community. As a dedicated member of the GSB team, Jen feels rewarded by the opportunity to help local businesses thrive and reinvest dollars into the local economy.

Laura Funk, Human Resources Generalist Laura has spent most of her professional career in Human Resources positions in multiple industries, including accounting, healthcare, and banking. When she looks ahead to career growth opportunities in the future, she feels confident in the knowledge that GSB invests in its employees.

“Working at GSB has allowed me to form strong relationships with our local business owners and fellow community members,” Jen said. “I have witnessed first-hand how impactful and essential a community bank is to the local economy. I hope to continue to grow with the bank and to help sustain the financial well-being of our community in the coming years.”

Lee Foo, VP, Cash Management Relationship Officer Before coming to GSB, Lee worked primarily for large, global banks. He said the opportunity to come to GSB was an attractive one because of its culture, environment, and commitment to what is best for its customers. Throughout his career he has focused on working with business clients to help them attain their financial goals.

“What has always been most important to me throughout my career is knowing that I am a part of an organization that shares similar values to my own, which is a big reason why I was so drawn to GSB,” Laura said. “It’s very fulfilling knowing that the work that not only I, but everyone within GSB is doing, has a positive impact on our local businesses and communities as a whole.”

Stephanie Atsales, Branch Manager Stephanie came to GSB from Bank of America where she began her banking career as a teller before moving into sales and relationship management focused on promoting growth and acquisition. She was attracted to GSB because of its true devotion to being a philanthropic neighbor. With aspirations toward career growth

“My goal now is to help GSB succeed in this growth period and, while we’re growing and actively expanding our market footprint, I respect our commitment to remaining true to our roots,” Lee said. “We’re heavily focused on the customer and ensuring that what we’re offering is truly in their best interest. That’s what keeps me engaged and working and continuing to love GSB. I am so appreciative of everything we stand for. I wish I’d found GSB earlier in my career.”

To learn more about joining GSB, visit bit.ly/Join_GSB or scan this QR code to hear what our team has to say about becoming a team member of the only bank you’ll ever need.

5

PUTTING COMMUNITY BANKING ON THE MAP IN NORTHFORD.

GSB is excited to announce plans to open a branch office in Northford at 1409 Middletown Avenue.

As larger financial institutions close neighborhood locations and reduce staff while also reducing services, community banks are stepping in to do more.

We look forward to serving the community of Northford and becoming the only bank you’ll ever need.