2017 ANNUAL REPORT

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Our PROFILE

Following a banner year marked by substantial gains and further growth and

development of our LifeDesign approach, 2017 was a year of steady financial

growth focused on being a caring, solutions-driven financial partner for

clients and community.

In 2017, we continued our commitment to community through the LifeDesign

Community Dividend program, reinvesting more than $350,000 into the areas

we live and serve. We’re also committed to the revitalization of Worcester’s

downtown area through support and sponsorship of The Fidelity Bank

Worcester Ice Center.

Barre Savings and Shirley Charitable Foundations continued to enrich our

communities in 2017. The foundations, both founded by the bank as part of

past mergers, continued to provide much-needed funds to deserving local non-

profits in our community.

Through fundraising and

volunteering their time,

Fidelity Bank employees

continued their commitment

to those around us in need

by contributing more than

$24,000 through Casual

for a Cause jeans days,

benefiting great community

organizations, like Veterans

Inc. and Pink Revolution.

Additionally, our newly-

formed Community Care

Crew was out in full force,

volunteering 175 hours at

nine events since its start in

June, serving at homeless

shelters, food drives, schools,

local parks, and more.

With 2017’s announcement to merge with Colonial Co-Operative Bank of

Gardner, we look ahead to continued growth and an expanded footprint of

our unique LifeDesign approach in 2018, and beyond.

“Like smart friends, we care deeply about your well-being and will use our hearts and our heads to help you get where you want to be.”

Who We Are

Since 1888, caring has been at the heart of our banking philosophy, so much

that a heart is the logo for our LifeDesign promise, the brand for the way we

do business. We are a team of caring people, who take a caring approach, to

provide caring solutions with every interaction. We know our bottom line will

be just fine if we truly care about the people who trust us with their business.

What is our LifeDesign Difference?

Simply put, we believe that everyone – our clients, employees, and community

members – deserves the opportunity to grow, improve, and realize their

hopes and dreams. We do this through our LifeDesign promise. It’s a promise

we make to our clients to be smart friends, helping them get

where they want to be. Through our caring team of experts,

we guide clients with a thoughtful

approach that results in delivering

real financial solutions. Sitting

side by side with our clients,

we work together helping

them to make better and

more informed financial

decisions for themselves,

their families and their

businesses. This promise

to care guides all that we

do, and it is what separates

us from every other financial

institution.

Our Mission

To our clients, communities, and team of

employees, we say:

Connecting with COMMUNITY

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Brought our LifeDesign promise to 1,215 new client households in 2017, expanding our caring approach across local neighborhoods and business communities.

Provided over $117 million in mortgages and home equity loans to help our clients realize their dream of homeownership, up size or downsize to the perfect home, or make improvements on a home they already own.

Spreading the LIFEDESIGN PROMISE

When a business does right by people, everybody wins.

Our contributions to the communities we live and work in are something we

take very seriously. Through programs, volunteerism, financial contributions,

and the fulfillment of our mission, we work hard to ensure our communities

are a strong and secure foundation for us all.

Here are some of the ways Fidelity Bank supported community growth in 2017.

The SHINE Initiative

The role of our bank-founded non-profit, the SHINE Initiative, has expanded,

leading the way to raise awareness of mental illness in children and young

adults. Over the past five years, The SHINE Initiative has spread its important

message through:

• 100 classroom presentations to high

school students

• 20 school health fairs

• 20 teacher/staff trainings and forums

• 46 community forums

• 10 parent forums

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Paid out more than $350,000 in LifeDesign community dividends to more than 200 local organizations.

Invested in more than 145 local businesses, providing more than $107 million in commercial loans.

31,217 adolescents, parents, teachers and other caregivers have

been reached since 2013.

Student Wellness Advisory Teams (SWAT) had been established in 14 high schools and middle schools and 20 more will be established by the end of 2018.

$50,000 in fundraised dollars

have been allocated to support SWAT in 2018.

At year-end 2017 the SHINE Initiative’s net assets were at an all-time high.

The Shine Initiative Gala 2017

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Raising Money in Movember

During the month of November, Fidelity Bank committed to donating on the

behalf of every employee who gave up shaving to raise awareness for men’s

health issues. $4,000 was raised for the 15-40 Connection, dedicated to early

cancer detection.

Friday Fundraising

Fidelity Bank employees take a large and active role in raising money for our

local community organizations. In 2017 over $24,000 was raised by employees

and the Fidelity Bank match throughout our Casual for a Cause Jeans Days.

Many amazing organizations benefited from this effort including: United Way

Youth Venture, Wachusett Food Pantry, Veteran’s Inc., Dress for Success,

Loaves and Fishes Food Pantry, Michael’s Run, and Pink Revolution.

Introducing the Frosty Flyer

No longer known as just the Fidelity Bank ice cream truck, we welcomed

the new and improved Frosty Flyer this summer. In 2017, we visited over 50

community events, handing out more than 12,000 ice cream bars.

Investing in Revitalization

The Fidelity Bank naming rights of the ice center, which opened in September

of 2017, represents our strong commitment to community, including the

revitalization of the City of Worcester. In Worcester and throughout all of our

communities, we are committed to seeing businesses, families and individuals

thrive. Continuing our support of projects like these assures people are drawn

to our communities, where we can serve them with our LifeDesign Promise.

Doing right BY OUR COMMUNITIES

Meet the FROSTY FLYER

Ice, ice baby.

I mustache you a question…

A revolutionary idea!

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2017 FINANCIALS

Consolidated Statement of Condition - December 31, 2017(Dollars in Thousands)

Assets

Cash and Due From Banks 43,188

Securities Available for Sale 77,983

Net Loans 651,142

Bank Premises and Equipment 16,661

Other Real Estate Owned -

Other Assets 29,978

TOTAL ASSETS 818,952

Liabilities and Equity

Deposits 700,034

Borrowings 43,712

Accrued Taxes and Expenses 2,310

Other Liabilities 2,435

TOTAL LIABILITIES 748,491

Equity Capital 70,248

Accumulated Other Comprehensive Income 213

TOTAL EQUITY 70,461

TOTAL LIABILITIES AND SURPLUS 818,952

Total AssetsDollars in Millions | 5% Growth from 2016

Net LoansDollars in Millions | 6% Growth from 2016

Total DepositsDollars in Millions | 6% Growth from 2016

Loan Portfolio CompositionDollars in Millions | 7% Growth from 2016

657

TOTAL LOANS

Residential Mortgage USDA/SBA/FSAHome Equity Commercial Other

616

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Executive MANAGEMENT Our BOARD

Edward F. Manzi, Jr.Chairman & CEO

Laurie Benson

Barry Bliss

Sally Buffum

Jennifer Conrad

Anne Dygon

Sheila Julien

John Kelley

Lisa Krywucki

Jennifer Ledoux

Connie Loveland

David Perry

Dana Roberts

Deborah Sendrowski

John H. Allen

John D. Brewer

Janet S. Chambers

Alvin B. Collins

Scott Howard

Ronald J. LeBlanc

Edward F. Manzi, Jr.

Ronald Marchetti

Maureen Marshall

Ronald L. Salois

Edward A. Tarquinio

Robert Alario

Kenneth Basque

Michael Bollus

Guy Boyer

Stephen Brewer

Matthew J. Campobasso

Brian Cirelli

Jan B. Cochran

Deborah J. Ekstrom

John M. Flick

Bruce Forman

David Grenier

Sheila Harrity

Daniel Haynes

Rochelle Jonswold

Linda Kosinski

Deborah LaPointe

Susan Mailman

Brent Maugel

Christopher W. McCarthy

Ann Meilus

Thomas Mertzic

Michael Moloney

Sharon Onorato

Enrico Palmerino

Bob Pillsbury, Jr.

Sherri G. Pitcher

Debra Pochini

Paul Przybyla

Mark A. Puccio

Kenneth Ricker

Mary C. Ritter

Veronica Rosa

Paula K. Savard

Leslie Storrs

Rebecca Tuttle

Richard WilesDerek Beahn

Paula Bernier

Frederick Brose

Jamieson Burgoyne

Brennan Campbell

Andrew Caputo

Patricia Charpentier

Brian Cormier

Peter Favata

Peter Ishkanian

Linda Kirrane

Jennifer Leger

Robert Leonardi

Brenda Lockhart

Amber McCreadie

Joanne Morse

James Notaro

Sherri Pitcher

Tanya Quinn

Claire Risi

Patricia Smith

Jennifer Stone

Joyce Thibault

Richard Vallee

Ana Vargas

Brenda Woods

Judy Khallady

Zachery Lavoie

Veronica Meneses Wanda Walsh

Senior Vice Presidents

Board of Directors

Board of Corporators In addition to the Board of Directors

Vice Presidents

Assistant Vice Presidents

Christopher W. McCarthyPresident & COO

OUR LOCATIONS LEOMINSTER 9 Leominster Connector

LEOMINSTER 75 Main Street

WORCESTER 465 Shrewsbury Street

FITCHBURG 675 Main Street

GARDNER 330 Main Street

MILLBURY Armory Village, 16 South Main Street

SHIRLEY 21 Main Street

BARRE 56 Common Street

PAXTON 713 Pleasant Street

PRINCETON 206 Worcester Road

CALL 800.581.5363

ONLINE fidelitybankonline.com