GSB Core Magazine, Community Newsletter, Q3 2020

COMING SOON TO NORTH HAVEN

While we are proud of the work we are able to do in the digital space and we maintain a focus on this channel, we have long known that what was next for us was an expansion of our physical footprint.

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.

I wrote to you a year ago about the technology that was on the forefront at that time for GSB as we looked to meet the needs of our customers seeking the modern banking experience in an increasingly digital world.

We adapted the latest technology, enhancing our services to meet the expectations of those we serve while maintaining our reputation of reliability and authenticity.

The most important question we ask ourselves once we cross each precipice is: what’s next? This growth mindset allows us to remain forward-focused for the benefit of our customers who are also always looking to the next horizon.

GSB is a financial institution rooted firmly in the communities it serves, though the advent of the digital age, in particular, has allowed us to expand and serve customers statewide for quite some time along with our strength in the area of commercial lending.

We considered carefully the communities where we could make the strongest impact, develop the deepest relationships, and best serve clients. The choice became clear that North Haven was the place for us to put our efforts.

As we anticipate opening our North Haven branch in early 2021 – our seventh location – we are excited by the opportunity to extend our services in person to an area filled with possibilities for new partnerships with residents and businesses. North Haven is well positioned on the Interstate 91 corridor near the New Haven metro, yet equidistant from the Wallingford and Hamden communities, which offers an opportunity for regional reach.

North Haven at present has limited access to community banking for both consumer and commercial customers, so we are proud to bring our locally-managed financial institution into the heart of this community.

When it came to this expansion, finding a place for our new branch was a desire married with one to ensure any new location would be as modern and agile as possible. Great care was taken to design this new space as one where team efficiency, customer engagement and the ability to harness technology for the benefit of those we serve were the instrumental factors.

We’re proud of the concept we’ve developed for our new branch as one that focuses on aiding customers

in adaptation and use of our digital services, one where we can connect customers to team members bank-wide in meaningful ways using video conferencing in shared spaces, and one that lends itself naturally to conversation and connection.

As we reach forward always to what’s next in our quest to remain dexterous and innovative, we also look inward and remember our roots that will always extend deeply into the communities themselves.

We welcome this chance to engage in a new territory and to bring our unparalleled devotion to individualized service, our commitment to the success of local economies and entrepreneurs, and our expertise and understanding of customer needs to the people of North Haven and the region within which it is situated.

This is an exciting time for us and we thank you for your loyalty and support as we expand the physical reach of GSB while maintaining the core mission that will consistently set us apart. Our priority is and always has been the relationships we cultivate and we are, as always, grateful for each and every one.

My door remains open as we work to fulfill our promise: your community, your values, your bank.

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

As of Sept. 30, 2020 (In Thousands)

GSB FINANCIALS

HISTORICAL GROWTH (2020 PRETAX INCOME REFLECTED ON AN ANNUALIZED BASIS) $1,000,000

CAPITAL $8,000

$900,000

$7,000

$800,000

$120,000

20%

$100,000

$6,000 $700,000 $5,000

$600,000 $500,000

$4,000

$400,000

$3,000

$300,000

15% $80,000

$60,000

10%

$40,000

$2,000 $200,000 $1,000

$100,000 $-

2016 Total Assets

2017 Loans

2018

2019

2020

$-

Pretax Income - Excluding Investment Gains (Losses)

5% $20,000

$-

2016

2017 Tier 1 Capital

2018

2019 Tier 1 Leverage Ratio

2020

0%

NEW BRANCH BALANCES INNOVATIVE DESIGN AND MODERN AESTHETICS FOR MAXIMUM CUSTOMER EXPERIENCE Branch-building locations may now be typically smaller than they once were in the banking industry, but the impact of the new GSB branch is going to be big.

footprint. It will be the seventh GSB location, joining full-service banking centers in Old Saybrook, Madison, Guilford and Branford.

“We consider ourselves a statewide bank as we do offer commercial lending and some consumer business throughout the state, so we laid a path out of the top areas we wanted to focus in the near future,” explained Renee Pallenberg, SVP, Director of Marketing & Cash Management. “This opportunity came up and we were excited to take it to lease the building, build it to suit and have some flexibility in the design process to create this

That was the intent of the design and strategy of the new North Haven site – that it be a place where customers will have the opportunity to engage with the GSB team in ways that maximize their banking experience while the bank itself becomes entrenched in the surrounding community.

North Haven was chosen after much deliberation of the right place to expand the GSB physical

innovative experience for our customers.”

Bank branches today are most often sized at 2,000 square feet or less, so any new space was always going to be on the small side, but the COVID-19 pandemic shed further light on the ability of the team members to maximize efficiencies in a “hoteling” environment where each person working out of the branch does not require a dedicated office and instead uses a shared workspace.

The 2,000 square foot, one-story facility that is expected to open in January of 2021 will include shared conference space with video conferencing

As of Sept. 30, 2020 (In Thousands)

GSB FINANCIALS

TOTAL DEPOSITS

LOANS

(EXCLUDES ESCRO W , SW EEPS A N D BRO KERED CDS)

(EXCLUDES DEFERRED FEES) $700,000

$700,000 $600,000

$600,000

$500,000

$500,000

$83,787 $66,246 $75,346

$77,420

$58,837

$300,000

$300,000

$112,045

$200,000

$200,000

$132,117

$131,333

$100,000

$100,000

$124,512

$139,073

$-

2016 Total Loans

2017

2018

Residential Real Estate

2019

2020

Commercial Real Estate

$-

2016 Retail CD

$168,574

$94,265

$79,083

$400,000

$400,000

$123,821

$88,675

$118,293

2017 MMDA

Savi ngs

$123,441

$147,490

$162,469

$145,582

$138,640

$156,792

$155,454

$163,402

$140,470

2018

2019

2020

Int. Bearing DDA

DDA

available in office areas so customers have access via video chat to GSB subject matter experts in all areas.

“A lesson from COVID-19 has been the benefit of Zoom and Microsoft Teams meetings. Being able to see someone face-to-face when you can’t be in the same location offers so much more than just a phone conversation just for all of us bankwide, so we want to replicate that for our customers as well,” Pallenberg said. “So, if someone is not available at the branch location – a residential loan officer or cash management expert, for example – customers can still get to see the person while working with them.”

The North Haven branch also embraces the latest technology at use by bank customers, such as

online banking and the GSB phone application for iPhone and Android. Customers will be encouraged to bring a device with them to the branch’s customer engagement bar. Team members who can troubleshoot any problems that might be experienced using this tech, or answer any questions in general, will staff this customer engagement area.

There will be a drive-thru and an ATM as is standard in other branches.

While the COVID-19 pandemic impacted traffic to GSB branches as customers had to adjust habits to accommodate appointment banking due to the need for social distancing, Pallenberg said interest in coming into branches has remained.

She expects the North Haven branch to thrive in that community as customers see the benefit of the GSB experience.

With a modern looking exterior of wood and stone – one that boasts a large amount of windows to flood the space with natural light – the new branch was specifically designed as an open concept space with no traditional teller stations, but instead banker station pods that lend themselves to more in-depth conversations.

“We’ve really looked to aesthetically create a natural, soft environment and interactively create a space that allows for unmatched customer service,” Pallenberg said.

As of Sept. 30, 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

$250,000

$1,900

$1,800 $200,000

$1,700 $150,000

$1,600 $100,000

$1,500

$50,000

$1,400

$1,300

$2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

BRANCH TEAM MEMBERS OFFER COMMUNITY CONNECTIONS, CUSTOMER FOCUS Strong ties to the community and a serviceoriented mindset were the critical components considered when it came to staffing the new GSB branch in North Haven.

particularly refreshing,” Miller said. “Being part of a community bank is extremely important to me. It’s so different from any corporate, large bank.

There is a true passion for the people.”

A business development background was also key when it came to carrying the name of GSB and the bank’s established reputation into new territory.

She said she is looking forward to leveraging her existing community connections, as well as new forming partnerships to provide the best services.

“I wanted people that were really entrenched in the community, strong at networking, with a can-do attitude who have a passion for working in a team environment,” said Shalonta Ford, VP, Retail Banking Officer.

Miller is also personally energized by the new style the North Haven branch will have as compared to its other branch locations.

Enter Renee Miller, the new business branch manager of the North Haven location.

With experience in sales, customer service, business development, residential and commercial lending and leadership, Miller was the right fit to lead the North Haven team, Ford said.

She comes to GSB with branch manager experience at Ion Bank in communities as nearby as Hamden, as well as branch management experience at First Niagara Bank and Newtown Savings Bank.

Miller serves as a Mentor for the Children’s Community School in Waterbury, teaches financial understanding classes for Hamden and East Haven high schools and previously served as Co-Chair of the Hamden Regional Chamber of Commerce Young Professionals group and a board member of Arts for Learning CT. “The exciting thing about the North Haven market, specifically, and why I wanted to join GSB, is I found the drive to be connected to the community

“This is a whole new dynamic and I hope it will spread to our other locations because it really adds a new vibe of friendliness. Traditional teller lines can be restricting, but the new style is a warmer feeling. I think our customers are going to embrace the new technology and the ways we are able to assist them in incorporating that technology into their baking experience.”

When it came to the role of Assistant Branch Manager, Ford said “we were looking for someone that can really complement Renee with a sales and operation acumen.”

These were both areas where Maria Tessitore fit the bill.

A North Haven resident, Tessitore worked from 2006 to 2014 as the branch manager in North Haven of a Citizens Bank location and subsequently as the manger of a Keybank branch.

“Maria is visible in the North Haven community so what a wonderful opportunity this was for us to add her to our team and welcome some of the relationships she already has with people who

know and love her,” Ford said.

Although Tessitore will focus her time in the branch and Miller will focus hers out in the community, Ford expects that both will develop deep connections in town.

“I’m very excited to take on the role of Assistant Branch Manager,” Tessitore said. “I’m bringing to the team my years of experience in banking – both consumer and business – but also my love for the community. I feel a local, community bank is long overdue in North Haven.”

Tessitore lives not even a mile from the new branch and said she drives by to watch the branch being built each day.

“GSB expanding the footprint in North Haven is going to be so successful, not only for North Haven, but for the surrounding area,” she said. “I see a lot of possibilities there as GSB puts down some roots.”

As they look to fill out the branch employee set, Ford is excited for the work all North Haven team members will do to raise the customer engagement experience to a new level. She said an important focus of that is ensuring all team members are fluent in the many ways users engage with GSB today, including online banking and mobile banking.

“We thought that it was time, based on consumer preferences, to move in a direction of the digital experience and hire a team that can function in a non-traditional environment where we provide consultative services to customers and we really are confident in our abilities to position our products in a meaningful way,” Ford said. “We know this team will serve as trusted advisors to our customers because they are users of our digital services and can therefore offer credible insight, speak passionately about these services and troubleshoot any problems.”

WHILE WE’RE BUILDING OUR NEWEST LOCATION IN NORTH HAVEN, WE’RE BUILDING SOMETHING EQUALLY IMPORTANT — RELATIONSHIPS.

GSB is honored to support the communities of BHcare and North Haven Education Foundation with their timely programs designed to address the behavioral health and education needs that have surfaced as a result of the pandemic.