2018 Annual Report

Caring Connects Us All

2 2018 ANNUAL REPORT 2018 ANNUAL REPORT 3

Following a steady year of growth, 2018 followed suit – and then some. Two

banks officially became one on April 1, 2018 with the successful merger of

Fidelity Bank and Colonial Co-Operative Bank. We’re excited to be stronger

together, and pleased with the collaboration and contributions our new,

larger team is making.

For more than 130 years, caring has been at the heart of our banking

philosophy. We put it front and center for all clients. We start with what’s in

their hearts – not what’s in their wallets – to provide custom financial advice

that helps them achieve their dreams. It’s this approach, the LifeDesign

Promise, that’s at the heart of everything we do.

When we care, we solve problems. We help clients find the perfect

mortgage, no matter their needs. We collaborate and craft

solutions for local business owners. We give the best

deposit solutions to help clients manage their money,

save for a rainy day, and find true value in their accounts.

Fidelity Bank cares deeply about our clients’ and

employees’ wellbeing – and always will. We’ll use our hearts

and our heads to help them get where they want to be.

Steady Growth and Community INVESTMENT

Who cares? WE DO!

In 2018, we reinvested in our banking centers and staff. In addition to the

new Downtown Worcester branch, we improved our Gardner and Paxton

LifeDesign Banking Centers. We also expanded our commitment to our

employees through our LifeDesign University LAUNCH Program, an 18-month

leadership development program, which celebrated its first group of

graduates this year.

As always, we’re inspired by our staff’s motivation to serve. From fundraisers to

Random Acts of Caring, our team’s big hearts never stop. As a result, we reinvested

more than $400,000 through our LifeDesign Community Dividend program.

Our hard work did not go unnoticed. Fidelity Bank was voted Best Bank and

Best Financial Service for the Worcester Telegram & Gazette Best of Central

Massachusetts Awards, Best Bank of 2018 by Baystate Parent Magazine, and

Reader’s Choice by the Leominster Champion. We’re humbled by the honors

and send a heartfelt thank you to the community for a successful 2018.

Colonial Conversion Validation Team

2018 Honors & AWARDS

Commercial loans –

record production of

$129 million in new

loans

Millbury LifeDesign

Banking Center’s

one-day CD promotion

brought in $7 million in

new deposits

New Worcester Front

Street LifeDesign

Center saw $40 million

in new deposits in just

four months

We’re thrilled to report that financial performance was strong in 2018. At

year-end, total assets were $935 million – up $116 million from 2017. Key

areas of growth included:

CARING Connects

Us All

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Brought our LifeDesign promise to 1,684 new client households in 2018, expanding our caring approach across local neighborhoods and business communities.

Provided over $132 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

Caring people. Caring approach. Caring solutions.

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 2018:

In September of 2018, the most caring bank on the

block opened our doors at our second branch in

Worcester. Right in the heart of downtown, the

new storefront location at 153 Front Street made

a grand opening with a completely modernized

look, leading with our LifeDesign Promise. Our

Front Street team of LifeDesign bankers hit the

ground running, bringing in over $40 million in

new deposits in just four months.

We ended 2018 with the grand re-openings of

both our Gardner and Paxton LifeDesign Banking

Centers. Both locations were completely modernized

to provide a client experience one would expect

from the bank that truly cares. The Gardner

renovations were completed at the former

Colonial Co-Operative branch, meaning we

could officially close our existing Fidelity Bank

Gardner branch, and be up and running in one

LifeDesign banking center to best serve our

Gardner clients.

Paid out more than $400,000 in LifeDesign community dividends to more than 250 local organizations.

Invested in more than 90 local businesses, providing more than $129 million in commercial loans.

Paxton

Gardner

Worcester Front Street

Worcester Front Street Interior

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2018 marked Fidelity Bank’s 130th year of caring for the Central Massachusetts

community. To us, caring for our community means seeing life through the eyes

of our neighbors. We hear their worries. We imagine their dreams. We realize

that we are part of something much bigger than ourselves. Here’s a look at Fidelity

Bank’s 130th year of caring for our neighbors, employees, and our community.

Random acts of caring, year-round

Throughout the year, our staff

hit the streets with Random

Acts of Caring, showing our

clients and community how

much we care.

Community building, January

The Fidelity Bank and

Colonial Co-Operative Bank

merger transition team

came together for a day

of service with Habitat for

Humanity.

Casual for a cause, year-round

Some of the great area

organizations supported

by Casual for a Cause:

Learning First Foundation,

The Ava Roy Foundation,

Wonderfund MA,

Veterans Inc., PINK

Revolution, The Shine

Initiative, Bottom Line,

and more.

Legal day one, April

April 2, 2018 marked Legal

Day One, Fidelity Bank and

Colonial Co-Operative’s first

day of business as one entity.

Fidelity Bank becomes largest

bank in its region.

Congrats, grads, November

Twelve members of the

Fidelity Bank team completed

LifeDesign University, an

18-month development program

for young professionals.

Heart to Heart: A Look at CARING in 2018

Movember, November

During the month of November, Fidelity Bank hosted a FUNdRAZOR, benefiting

the 15-40 Connection, raising funds for cancer research and screenings.

Full STEAM ahead, December

Fidelity Bank awarded a

$10,000 gift to the

Boys & Girls Club

of Fitchburg and

Leominster Gardner

Clubhouse to support

science, technology,

engineering, art,

and math (STEAM)

education – all part of

increased community

support following the

Colonial Co-Operative

Bank merger.

Dragon Boat, September – The Fidelity Bank team raced across Lake Quinsigamond in the second annual Worcester Dragon Boat Festival, raising funds for the United Way of Central Massachusetts.

Pulling 4 Paws, April – Fidelity employees flexed their

muscles and raised funds for NEADS World Class Service

Dogs at the 2018 Pulling 4 Paws Truck Pull

It’s SHINE time, December – Worcester Railers and Fidelity Bank teamed up for the Ugly Sweater Game benefiting the SHINE Initiative to raise $14,000 for youth mental health programming.

We all scream for ice cream! October – The Frosty Flyer hit

the streets in 2018, handing out thousands of frozen treats

at community events, including the March of Dimes Run for

Babies 5K race.

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2018 FINANCIALS

Consolidated Statement of Condition - December 31, 2018(Dollars in Thousands)

Assets

Cash and Due From Banks 20,450

Securities Available for Sale 95,503

Net Loans 766,119

Bank Premises and Equipment 19,977

Other Real Estate Owned 36

Other Assets 32,989

TOTAL ASSETS 935,074

Liabilities and Equity

Deposits 797,621

Borrowings 53,114

Accrued Taxes and Expenses 3,529

Other Liabilities 2,466

TOTAL LIABILITIES 856,730

Equity Capital 78,813

Accumulated Other Comprehensive Income <469>

TOTAL EQUITY 78,344

TOTAL LIABILITIES AND SURPLUS 935,074

Total AssetsDollars in Millions | 14.2% Growth from 2017

Net LoansDollars in Millions | 17.7% Growth from 2017

Total DepositsDollars in Millions | 14.0% Growth from 2017

Loan Portfolio CompositionDollars in Millions | 17.5% Growth from 2017

772

TOTAL LOANS

Residential Mortgage USDA/SBA/FSAHome Equity Commercial Other

657

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Executive MANAGEMENT Fidelity Mutual HOLDING COMPANY

Edward F. Manzi, Jr.Chairman & CEO

Laurie Benson

Barry Bliss

Sally Buffum

Jennifer Conrad

Anne Dygon

Sheila Julien

John Kelley

Brad Kirlin

Lisa Krywucki

Jennifer Ledoux

Connie Loveland

Joanne Morse

John Peculis

David Perry

Dana Roberts

Gregory Ryan

Deborah Sendrowski

John H. Allen

Janet S. Chambers

Brian Cirelli

Alvin B. Collins

Scott Howard

Ronald J. LeBlanc

Edward F. Manzi, Jr.

Ronald Marchetti

Maureen Marshall

Edward J. McLaughlin, Jr.

Ronald L. Salois

Dean R. Sweeney

Alan Agnelli

Robert Alario

John H. Allen

Alice Anderson

Kenneth Basque

Michael Bollus

Guy Boyer

Stephen Brewer

Matthew J. Campobasso

Janet S. Chambers

Brian Cirelli

Jan (Georgana) Cochran

Alvin Collins

John Dale

Carolee Eaton

Deborah Ekstrom

John M. Flick

Bruce Forman

Joseph Guercio

Sheila Harrity

Daniel Haynes

Jeannie Hebert

Scott Howard

Rochelle Jonswold

Linda Kosinski

Deborah LaPointe

Ronald J. LeBlanc

Susan Mailman

Edward F. Manzi, Jr.

Ronald Marchetti

Maureen Marshall

Brent Maugel

Christopher W. McCarthy

Edward J. McLaughlin, Jr.

Ann Meilus

Thomas Mertzic

Michael Moloney

Sharon Onorato

Enrico Palmerino

Joan Pena

Bob Pillsbury, Jr.

Sherri Pitcher

Debra Pochini

Paul Przybyla

Mark A. Puccio

Kenneth Ricker

Mary Ritter

Veronica Rosa

Ronald L. Salois

Paula K. Savard

Douglas Stone

Leslie Storrs

Dean R. Sweeney

Rebecca Tuttle

Paul Valois

Richard Wiles

Derek Beahn

Rebecca Beaton

Paula Bernier

Frederick Brose

Jamieson Burgoyne

Brennan Campbell

Linda Carmichael

Patricia Charpentier

Brian Cormier

Peter Favata

Peter Ishkanian

Jennifer Leger

Robert Leonardi

Brenda Lockhart-LeBlanc

Amber McCreadie

James Notaro

John Pacheco

Travis Perry

Sherri Pitcher

Tanya Quinn

Claire Risi

Stephen Smith

Jennifer Stone

Joyce Thibault

Kathleen Trainor

Richard Vallee

Ana Vargas

Kara Wiersma

Brenda Woods

Debra Caisse

Debra Daniels

Amanda Guzman

Nichole Hamm

Judy Khallady

Zachery Lavoie

Veronica Meneses

Karen Reardon

Michael Richard

Alexandra Vazquez

Wanda Walsh

Timi Whitney

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

WORCESTER 153 Front Street

FITCHBURG 675 Main Street

GARDNER 6 City Hall Avenue

MILLBURY Armory Village, 16 South Main Street

SHIRLEY 21 Main Street

BARRE 56 Common Street

PAXTON 713 Pleasant Street

PRINCETON 206 Worcester Road

WINCHENDON 1 School Square/Route 12

WOBURN 400 Tradecenter Drive (Loan Office)

CALL 800.581.5363

ONLINE fidelitybankonline.com