GSB Core Magazine, Community Newsletter, Q2 2020

WHEN I LOOK AT OUR GSB TEAM, I ALSO SEE HEROES OF A DIFFERENT KIND. I SEE ESSENTIAL EMPLOYEES WHO HAVE GONE ABOVE AND BEYOND TO HELP OUR CUSTOMERS KNOW THEY ARE NOT ALONE AS THEY NAVIGATE WHAT THIS “NEW NORMAL” WILL MEAN FOR THEM.

When businesses and schools first closed, we immediately responded to the anticipated financial hardships in our local communities by donating $100,000 to the community foundations of Branford, Guilford, Madison and Middlesex County.

TO THE COMMUNITY WE SERVE,

In the past few months, the world as we know it has changed in ways we never anticipated. This time has given new meaning to the word adaptable, and, for the GSB team, we wrote a new definition of one important entry in our vernacular: dedication.

The COVID-19 pandemic has been devastating.

We grieve alongside the members of our community who have suffered the effects of the virus, who have lost loved ones, who were saddened by canceled commencements and family gatherings, and those individuals and businesses struggling financially in the face of this crisis.

We also thank the heroes among us: the first responders and the frontline hospital staff who have worked tirelessly to provide critical care to those who have fallen ill and to save as many lives as possible.

Much of our staff moved to remote work, but the collaboration among employees only strengthened as we tackled the release of funds from the Paycheck Protection Program. This program was aimed at helping hard hit small businesses. The money was available, but the application process was challenging and our staff worked 16-hour days and weekends to ensure it felt as smooth as possible for our customers.

While many larger banks turned away those with whom they did not have an existing banking relationship, once we knew our customers were taken care, of we also extended PPP application support to non-customers in our community.

We understood how urgently small businesses needed funding to help them maintain staffing and to steady operations in the face of the shut down.

I am proud and appreciative of our team members and their devotion to meet this need.

Onsite, we quickly took action within our branch locations to ensure preventative practices at the recommendation of the CDC and the state Department of Public Health to keep our staff and customers safe. We began offering all in-person services either by appointment or through our drive-up windows and encouraged our customers to use our mobile and online banking services.

For those new to these offerings, we began online tutorials or phone instruction sessions to help our customers adapt.

As is our mission as a community bank, we worked with customers on an individual basis if they were impacted by the pandemic. Steps such as loan deferment and the waiver of early withdrawal fees on CDs were considered to help those struggling financially.

We offered our expertise. We offered a listening ear. We offered a compassionate voice on the other end of the phone. We still offer all these things as part of our dedication to our shared community and values.

If we were able to match the generosity and caring spirit shown by our communities themselves – and I believe we were – then I feel we have at least in small ways succeeded in our efforts to offer some light in dark days and to support you, our valued customers, in a world that is dramatically and in some ways forever changed.

As of March 31, 2020 (In Thousands)

GSB FINANCIALS

HISTORICAL GROWTH

CAPITAL

(2020 PRETAX INCOME REFLECTED ON AN ANNUALIZED BASIS) $120,000

$800,000

20%

$7,000

$700,000

$6,000

$100,000 15%

$600,000

$5,000

$80,000

$500,000 $4,000 $400,000

$60,000

10%

$3,000

$300,000

$40,000

$2,000

$200,000

$1,000

$100,000 $-

$2016

2017 Total Assets

2018 Loans

2019

2020

Pretax Income - Excluding Securities Gain (Loss)

5% $20,000

$-

0% 2016 Total Capital

2017

2018 Tier 1 Capital

2019

2020

Tier 1 Leverage Ratio

I AM HONORED TO LEAD A TEAM WHOSE DEDICATION EXCEEDED ALL EXPECTATIONS AND I AM GRATEFUL FOR THE TRUST OF A COMMUNITY WHOSE RESILIENCY HAS BEEN REMARKABLE.

Although the state is reopening and progress is being made, there are still so many unknowns ahead of us. We will continue to practice safety in our branches and I hope you will as well in your personal lives. Stay healthy and stay home as much as possible.

LEARNING BY DOING. GSB HELPS HUNDREDS OF CUSTOMERS SECURE PPP LOANS

On behalf of all of GSB, thank you for the trust you’ve placed in us during this unprecedented time and always. We are proud to be your bank.

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

GSB Facilities and Vendor Manager Victoria Magin had just returned from vacation at the start of the state shutdown resulting from COVID-19.

She spent two weeks quarantined and working on her laptop before she was cleared to return to her branch, gather her desktop computer, and return home to a newly purchased desk to complete an office setup there.

Shortly after, funds were released under the $349 billion Paycheck Protection Program to benefit small businesses hit hard by the virus, and that meant long days for Victoria in an area where she typically does not focus. Congress enacted the legislation putting the program in place, but little guidance was given to the banks expected to do the lending.

“There were a lot of late nights, but it was worth it because I know these people in our community were in need,” she said. “I had no problem working

16 hours a day and emailing customers endlessly back and forth gathering information because, at the end of the day, these small business owners were, and are, struggling and we are able to help.”

Victoria’s usual role in facilities became limited as a result of COVID-19 – although she was tasked with helping to make changes within the branches to maximize safety, much of her other responsibilities could not be carried out. She offered her time to help in other areas and became a team leader on the PPP project.

As of March 31, 2020 (In Thousands)

GSB FINANCIALS LOANS

TOTAL DEPOSITS

(EXCLUDES DEFERRED FEES) $700,000

$700,000

(EXCLUDES ESCROW, SWEEPS AND BROKERED CDS)

$66,246

$64,126

$123,821

$124,039

$123,441

$147,490

$149,902

$145,582

$138,640

$139,125

$155,454

$163,402

$149,690

2018

2019

2020

$600,000 $75,346

$600,000

$500,000

$500,000 $400,000 $300,000 $200,000

$88,675

$2016 Total Loans

2017

2018

Residential Real Estate

2019

2020

Commercial Real Estate

$77,420

$400,000

$58,837

$300,000

$112,045

$200,000

$132,117

$131,333

$124,512

$139,073

$100,000

$100,000

$94,265

$79,083

$118,293

$2016 Retail CD

2017 MMDA

Savings

Int. Bearing DDA

DDA

Chief Lending Officer Lyle Fulton was in charge of the entire process.

“It was a chaotic roll out for round one with minimal guidance from the Small Business Administration or the Treasury on how the program was going to work and even up until the morning of April 3 when it was going to begin, the terms were changed,” Lyle said. “It was really up to us to find our way through the system. It was learning by doing.”

Through many late nights and round the clock weekend work, the lending team was able to process 160 loans totaling almost $30 million before the funding ran out.

“It ramped up so quickly it was like we were moving felt he was made a priority.

100 miles an hour and it never really slowed down “When I texted, they always texted back. They were because we wanted to make sure everyone got learning on the fly but they were always following through the second round if they didn’t in the first. up with me,” he said. “They were very reassuring Thankfully the funding is still holding out this and even though I knew they didn’t have control time,” Kathy said. over everything, they followed through on what they said they would.”

The team began by accepting applications via

email but connected with a third-party platform Paul and Jeanne Dostie of Jerry’s Transmission Service called Lendio in order to streamline the process were also grateful for the help of the GSB team. of inputting applications and better process them completely, accurately, and as efficiently as possible. “When COVID hit, we were just getting our feet back on the ground from Paul being out on The bank now has more than 400 loans approved medical leave,” Jeanne explained. “Our business and in total more than $40 million in funding. had slowed down quite a bit. As many businesses in the state were shutting down we were deemed “Lyle did a fantastic job leading us through this essential. We were notified by GSB about the PPP effort,” said Senior Operations Officer Dave loans as soon as they were available and Mike Paz Finnerty. “The amount of information that was on their team was tremendous to work with. He coming at us was tremendous, but we stayed connected throughout the day to adjust to changes submitted our application immediately, kept us up to date on the progress and the loan was deposited and keep up with what we were learning. It was a into our account within two weeks.” true lesson in adaptability.”

FOR THEIR PART, CUSTOMERS ARE

“It was such a relief,” she said. “The whole loan application from start to finish couldn’t have been easier. GSB is a true community bank that takes care of its small businesses.”

TREMENDOUSLY GRATEFUL FOR THE Reverse Mortgage Specialist Kathy Duncan served as Victoria’s counterpart as a second team leader on EFFORTS MADE BY THE GSB TEAM. the project. She was working from her house with “I’ve heard from businesses who were doing so well two of her three children – both college students – and then this hit and they were afraid they were wrapping up their semesters at home. going to lose their staff,” Kathy said. “This loan enabled them to keep them.”

She worked long hours – eventually relocating

to her usual branch that was at the time closed to lobby traffic so she would have a quieter work environment – to help push loans through. She would leave the office some evenings as late as 9 p.m. and continue working until after midnight at home.

Victoria said she’s heard words of appreciation from every customer, as the GSB team worked hard to handle the bumps in the process so the individuals they helped could focus on what mattered most: their business.

James Mancini of Sachem Landscaping is one such business owner. He said when he first reached out to GSB he was the 161st business owner to call, so he knew the staff was busy. He understood the challenges the bank was facing, but said he always

“They’re very grateful,” she said. “It validates for me why I do this job, because we’re helping people who really need it.”

As of March 31, 2020

GSB WEALTH MANAGEMENT FINANCIALS* (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 UNDER MANAGEMENT

(2020 GROSS REVENUE REFLECTED ON AN ANNUALIZED BASIS)

$300,000

$2,000 $1,900

$250,000

$1,800

$200,000

$1,700

$150,000 $1,600

$100,000

$1,500

$50,000

$1,400 $1,300

$2016

2017

2018

20192

2020

2016

2017

2018

2019

2020

In March, we were proud to support the four community foundations of Branford, Guilford, Madison, and Middlesex County, to help members of our community facing financial hardships due to the COVID-19 pandemic. Our friends at these foundations shared with us how all community contributions truly make a difference. Here’s what they had to say:

PREPARING OUR BRANCHES FOR SAFE BANKING

THE GUILFORD & BRANFORD COMMUNITY FOUNDATIONS:

“Our communities were rocked by COVID-19. Guilford Savings Bank proactively gave significant donations to our COVID-19 Response Funds as the impact of the pandemic became more clear.

These funds provided support for infants to seniors, from basic needs to assisting local businesses, and diapers to surgical masks.

We don’t know how the pandemic will unfold, but we do know that with GSB’s support, the foundations will be here to help.”

MADISON FOUNDATION:

“The overwhelming support from the community is humbling.

Our foundation was able to provide immediate assistance to members of our community affected by the economic shutdown, thanks to generous donations such as this.”

MIDDLESEX COUNTY:

“Thank you, Guilford Savings Bank, for putting your hearts and dollars to work in the community. We are honored to work with you and humbled by your commitment to our region. You truly are GREAT people doing GREAT things in our community.”

EVERY BUSINESS IS ESSENTIAL AT GSB. When you're close to the community you serve, you find opportunities to help your customers in the face of any challenge.

Pairing technology with enthusiasm and expertise, our team of commercial bankers helped the businesses in our community achieve more than $40 million through the Payroll Protection Program (PPP).

To the customers who trust in us, thank you.

To the team who put in long hours, both virtually and in person, thank you.