GSB Core Magazine, Community Newsletter, Q1 2022

THE POWER OF TEAMWORK — a year in review, a year of growth.

launching a brand evolution, and adopting a digital transformation program that will ensure the future of this community bank for generations that follow.

When asked why his employee-owned company chose GSB, while being surrounded by many other financial institutions in our state’s third-largest city, Tony shared that the decision was easy to make: “We wanted a bank that would be responsive on a local level, with state-of-the-art technology and world-class knowledge and service. We found that and more, at GSB. We were looking for bankers, but what we discovered were new members of our team.”

TO THE COMMUNITY WE SERVE,

It’s fitting that the cover of this issue of CORE — our year in review — features customers and friends at Vespoli, USA, makers of world-class rowing shells in New Haven. Shown with Lee Foo, VP, Cash Management Relationship Officer is Tony Garcia, Vespoli’s CFO. Not only do Tony and the community of Vespoli represent our growing, state-wide reputation among all business classes, the very concept of the sport they design for, crew, is reflective of the unity, resilience, and focus this past year required of the entire community at GSB. Through the power of teamwork, we navigated what no one expected — the second year of a pandemic, while simultaneously opening two new branch locations,

Tony’s words resonated with me, and with other members of the GSB community. In many ways, this experience of being “discovered” is at the heart of every action taken this past year, or action planned in the immediate future, on our way to GSB150— our 150-year milestone in 2025.

• Through new branch locations, innovative branding, and data-driven marketing, we are being discovered by new markets and business sectors.

• With customer-centric products, renewed core values, and a highly engaged community of bankers, existing customers are discovering new, expanded relationships with a trusted resource.

• Through proactive human resources, job crafting, and team-first dynamics, we are

GSB FINANCIALS

being discovered by the next generation of bankers — allowing us to combine start-up energy with the confidence of experience.

• Through mergers and acquisitions, as well as entry-level investor applications, the recently re-branded Grey Ledge Advisors are being discovered for their experience, diligence and opportunities.

Has the first phase of our initiatives been successful?

All of our financial vital signs are very good — total growth, capital, assets, and loan portfolios are all on the plus side, which is a surprise to no one in a review of the markets for 2021. We have welcomed team members in some vital positions — technology, infrastructure, and business development and our loan losses are well below average.

While as stewards of this financial institution — a community resource — it is rewarding to report on our stability and strength, the GSB board and the entire team are most pleased to report that your bank is well-positioned to meet the needs of those we serve in the clearly unpredictable months ahead.

As we speak of needs, I call your attention to our annual dashboard on community reinvestment.

Once again, we were proud to partner with our regional Foundation Partners for disbursements of grants to on-the-ground organizations who are doing the most good for those who need it the most. We will continue to be proactive about

As of December 31, 2021 (In Thousands)

HISTORICAL GROWTH

$1,100,000 $1,100,000 $1,000,000

(2022 PRETAX INCOME REFLECTEDGROWTH ON AN ANNUALIZED BASIS) HISTORICAL (2022 PRETAX INCOME REFLECTED ON AN ANNUALIZED BASIS) $10,000 $10,000

$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 $$-

CAPITAL $120,000

20%

$100,000 15%

$8,000 $8,000

$80,000

$6,000 $6,000

$60,000

$4,000 $4,000

$40,000

$2,000 $2,000

$20,000

10%

5%

2017 2018 2017 Total Assets 2018 Loans Total Assets

Loans

$2019 2020 2021 $2019 2021 Pretax Income -2020 Excluding Investment Gains (Losses) Pretax Income - Excluding Investment Gains (Losses)

$-

0% 2017

2018 Tier 1 Capital

2019

2020 Tier 1 Leverage Ratio

2021

our philanthropy and I know wholeheartedly that the GSB volunteers are eager to once-again clock those hours as true community bankers, supporting missions by putting our “knowledge bank” to great use.

No annual greeting would be appropriate without concluding on a note of gratitude. This year I have much to be grateful for. I send my heartfelt appreciation out to each and every member of the GSB team from in-branch staff to those online — you made it work, no matter where you had to work. And to our Board of Directors, thank you for supporting a vision of the next generation of GSB. Through your efforts of today, we will be stronger, more vibrant, and successful tomorrow.

PROOF THAT THROUGH THE POWER OF TEAMWORK, WE’RE GSB — THE ONLY BANK YOU’LL EVER NEED.

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

WHY DID VESPOLI CHOOSE GSB?

During the pandemic, Vespoli began its search for a lending partner that could guide the company through the uncertain waters ahead. They wanted a bank that would be responsive on a local level, but with state-of-the-art technology and world-class knowledge and service. They found that in GSB.

GSB FINANCIALS

As of December 31, 2021 (In Thousands)

LOANS

TOTAL DEPOSITS

(EXCLUDES DEFERRED FEES)

(EXCLUDES ESCROW AND BROKERED CDS)

$900,000

$800,000

$800,000

$700,000

$98,010

$700,000

$600,000

$81,996 $66,246

$600,000

$500,000

$171,348

$75,346

$500,000

$400,000

$400,000

$300,000

$300,000

$200,000

$200,000

$100,000

$100,000

$-

$88,675

$94,265

$195,827

$123,821

$77,420 $147,490

$171,066

$190,059

$123,441

$145,582

$138,640

$169,154

$180,196

$139,073

$155,454

$163,402

$136,781

$133,661

2017

2018

$118,293 $131,333

$-

2017 Total Loans

2018

2019

Residential Real Estate

2020

2021

Commercial Real Estate

Retail CD

MMDA

2019 Savings

2020 Int. Bearing DDA

2021 DDA

GSB WEALTH MANAGEMENT REBRANDS FOR GROWTH. After a thoughtful discovery and design process that engaged the input of both long-standing and recently hired team members; leadership from GSB, and unaffiliated peers, GSB Wealth Management has chosen a new identity — Grey Ledge Advisors.

“As a long-standing leader in wealth management, executive benefits, and financial/retirement planning, following the acquisition of CTMA, we determined it was time to create a more encompassing identity,” shared Ken Russell, President and CEO of GSB Wealth Management.

“We tasked ourselves to resolve a brand that not only reflected our accomplished, professional team but also represented our full scope of services and core competencies.”

months ahead, the transition will continue with very visible applications including new collateral, signage, digital/social initiatives, and a fullyrefreshed website.

“We have already prepared communities close to home regarding this change,” continued Ken. “Communications have been issued to the collective GSB team and of course, our clients. Our vendor and industry partners are being notified through other standard communications and we will be issuing formal media communications when total brand replacement is complete.”

The attached brand overview diagram provides further details about the elements of style behind the brand standards. In the weeks that follow, further updates will be shared via LinkedIn, established podcasts, and trade media as GSB Wealth Management becomes Grey Ledge Advisors.

“We look forward to stepping out in this elevated new direction with the support of the GSB Community,” summarized Ken. “On behalf of the entire Grey Ledge team, thank you for the many words of encouragement we have received to date.”

The inspiration for the selected brand — which was initiated by a member of the team — was drawn from an intentional focus on key values and the mission of the organization. The solid iron Grey connotes the steady and unwavering years of experience, combined with the upward trajectory of an iconic Ledge. This rebrand highlights a commitment to long-term stability and financial path for clients and the community.

Following a successful trademark registration, the brand began rolling out this month. Over the

GSB WEALTH MANAGEMENT FINANCIALS*

As of December 31, 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 FEE INCOME

ASSETS UNDER MANAGEMENT

(2021 GROSS REVENUE REFLECTED ON AN ANNUALIZED BASIS) $4,000

$500,000

$3,500 $3,000

$400,000

$2,500 $300,000

$2,000 $1,500

$200,000

$1,000 $100,000

$500 $-

$2017

2018

2019 IN THOUSANDS

2020

2021

2017

2018

2019 IN THOUSANDS

2020

2021

GROWING OUR TEAM 2021 & 2022 PROMOTIONS: Senior Vice President: Shalonta Ford, SVP Retail Banking & DEI Officer

Senior Vice President: Denise Sokolowski, SVP Senior Credit Risk Manager

Executive Officer: Christine Beirne, EVP Chief Talent & Culture Officer

Executive Officer: Brant Walker Chief Investment Strategist

Senior Vice President: Alexander Sulpasso, SVP Senior Operations Manager

Executive Officer: David Finnerty, EVP Chief Operating Officer

KATHLEEN DUNCAN: CBA’S NEW LEADER IN BANKING AWARD

Machr 2022

Machr 2021

NEW BOARD MEMBERS:

JIM DAVITT & PAT MURPHY GRADUATE FROM THE CONNECTICUT SCHOOL OF FINANCE & MANAGEMENT

GSB MHC Board of Corporators: Kenneth Russell

GSB MHC Board of Corporators: Ralph Volpe

GSB Bancorp Board of Directors & GSB MHC Board of Trustees: Kyle Eagleson

GSB Bancorp Board of Directors & GSB MHC Board of Trustees: Camille Murphy

Guilford Savings Bank Board of Directors: Ralph Volpe

Guilford Savings Bank Board of Directors: Laura Martino

Photo: Peter Sikes from Shoreline Pixels

SHORELINE CHAMBER OF COMMERCE 2021 EMPLOYER OF THE YEAR AWARD

NEW CHAIRMAN AND VICE-CHAIRMAN: GSB MHC Board of Trustees: William W. Lee, Chairman

GSBWM expands its team and client services through the acquisition of CTMA Wealth Management on December 31, 2020 In March 2022, the firm announced it will now be known as Grey Ledge Advisors.

GSB MHC Board of Trustees: Robert L. Carmody, Vice Chairman

CHRISTINE BEIRNE GRADUATES FROM ABA STONIER GRADUATE SCHOOL OF BANKING

JANET SANDELLA RECEIVES PAUL HARRIS FELLOW COMMUNITY SERVICE AWARD

DAVID FINNERTY GRADUATES FROM THE BARRET SCHOOL OF BANKING SUMMA CUM LAUDE

SHALONTA FORD IS APPOINTED AS NEW DIVERSITY, EQUITY & INCLUSION OFFICER

2021 Best of

Greater New Haven

READERS’ POLL

$307,000 DONATED TO THE LOCAL COMMUNITY IN 2021

$

$13,250

EMPLOYEE CONTRIBUTIONS MATCHED BY THE BANK

74

NON-PROFIT BOARDS OF DIRECTORS

$115,000

COMMUNITY FOUNDATION GRANTS

$22,000

IN HIGHER EDUCATION SCHOLARSHIPS

107

COMMUNITY ORGANIZATIONS SUPPORTED