President’s Corner

As we head towards the end of 2016, I wanted to take the opportunity to provide you with several important updates.

Notable Accomplishments so Far this Year

The employees of the Bank have truly demonstrated how we are better together with some notable accomplishments this year:

• We are now about six months past our merger with Barre Savings Bank and we are very pleased with the results. While as expected there have been a few minor bumps along the way, we have done an excellent job serving our clients and coming together as employees as one Fidelity Bank.

• The Boston Business Journal this month identified Fidelity Bank as the fastest growing bank in Massachusetts growing at 26.1% since last year, fueled in large part by our merger with BSB.

• We recently concluded our FDIC Safety and Soundness and IT Exam. While we are waiting for the final exam report to be issued we anticipate favorable results. Each area of the bank did an excellent job preparing for the exam.

• Over the past several months there have been many community and client events including ice cream truck visits to branches, client appreciation events, Habitat for Humanity, and the United Way Day of Caring. These have been a great way to demonstrate our appreciation to clients and commitment to the communities that we serve.

• All employees were able to participate in the LifeDesign Essentials program in 2016. These sessions are important to develop a common understanding of the Bank and the principles that guide us.

• This year has also included a refresh of the Fidelity Bank brand with updated marketing, advertising, and website. We’ve also seen employees regularly wearing their LifeDesign lapel pins. This is a small, but important symbol that unifies us together and reminds us of the LifeDesign Promise.

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In this edition

Upcoming Events1

All Offices Closed:

Veteran's Day Friday, November 11

Thanksgiving Thursday, November 24

Christmas (Observed) Monday, December 26

New Years Day (Observed) Monday, January 2

• President’s Corner• The Heart Club• Fidelity in the News• United Way Day of Caring• "Movember" Challenge• Pumpkin Decorating Winners• Jeans Day Report• Customer Appreciation Days• HR Corner• Better Together Celebration

Save the date!

Wednesday, December 7th 5:30-8:30 pm

Sterling Country Club 33 Albright Road Sterling, MA 01564

All “Hearts” Holiday Party

Join us for our All “Hearts” Holiday Party. The night will include a brief business update, dinner, and of course...raffle prizes!

Please RSVP by November 16th to sbachman@fidelitybankonline.com

by Christopher W. McCarthyPresident and COO

2016 was a great year! Together, we can make 2017 even better.

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1NOVEMBER 2016

THIS IS YOUR NEWSLETTER! DO YOU HAVE NEWS TO SHARE OR AN IDEA FOR A STORY? LET US KNOW AT MARKETING@FIDELITYBANKONLINE.COM.

• We had very good results from the Better Together Savings promotion and we also experienced some increased activity and exposure from the recent Rotman’s Home Loan promotion.

Financial results to date

The Bank is on track to post a solid year financially in 2016. Commercial and consumer loan production is on target, overall deposit growth is on track, and net income is running ahead of plan.

Looking forward — the long view

In late September, the Board and Senior Management team gathered off-site for a Strategic Planning session. The purpose was to refresh our plan for the next 10 years to ensure alignment of the overall vision, mission, and plan. While our results have been good, we recognize that our industry continues to face some challenging headwinds, such as continued low interest rates, regulatory and compliance requirements, cyber security, and competition. These are challenges for all banks and we are giving them the necessary focus and attention to ensure we are well positioned to thrive in the decade ahead.

The agreed framework for the future consists of 4 Strategic Pillars:• Strong financial performance that will ensure we survive

and thrive in the decade ahead

• Continuing to strengthen the power and recognition of our LifeDesign brand promise to our clients, communities, and employees

• Best-in-class risk, audit and compliance management so that we can be confident that we are doing the right things in the right way for the regulators, clients, and employees

• Building an agile organization, so we can respond quickly and effectively to challenges and opportunities as they arise

These 4 Strategic Pillars will be the basis from which each of our functional areas will create their business plans for 2017. You will hear more about this from your respective manager as plans are developed.

Looking forward — the near term view

To support our long term success, we have been busy on several near term projects:

• Work is currently underway to further develop LifeDesign University which will expand overall learning and development as well as career pathing for employees. We anticipate having more to share about this early in 2017.

• We have undertaken a major project to improve our utilization of the Core platform, starting with an initiative to steam-line and automate the new account opening process. Very good progress has been made thus far with additional improvements expected before year end.

• The Heart Club and Management are hard at work planning some fun and exciting activities, starting with the new Fidelity Bank jackets, to express our thanks and gratitude…stay tuned for more details.

The most important aspect of everything outlined above is that none of this is even remotely possible without the dedication of our employees. We have an amazing group of caring employees that live the LifeDesign Promise each and every day. This is evident by the inspiring stories outlined each week in our High-Five’s, the collaboration among departments and branches, and friendly smiles that greet our clients every day.

THANK YOU for all you do to help us be successful!

President's Corner (continued from page 1)

As of the end of September, total assets were $775 million.

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2NOVEMBER 2016

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Fidelity in the news

Relax. Recharge. Socialize.

In staying true to our culture, we’re always looking for ways to keep this a fun and positive place to work. The Heart Club has recently added a larger group table and a TV in the lunch room. Our hope is that you’ll take some time away from your desk to eat, unwind, and converse with your Fidelity work friends.

“When demand in our lives intensifies, we tend to hunker down and push harder,” says Tony Schwartz, head of New York City-based productivity consulting firm The Energy Project. “The trouble is that, without any downtime to refresh and recharge, we’re less efficient, make more mistakes, and get less engaged with what we’re doing.”

We are all busy, however, recharging and connecting with your fellow co-workers is good for the mind and soul.

See you in the lunch room!

United Way Day of CaringThis year, the Fidelity Bank Community Care Crew was represented on three different projects in support of the United Way’s annual outreach. All in all, Team Fidelity Bank was well represented. Thanks to all who took the time to roll up their sleeves and serve our local communities!

Left: Brian Cormier and Katie Weldon joined with some of our local realtor partners from the North Central Mass Association of Realtors to clear trails at the North County Land Trust in Fitchburg.

Below: Susan Bachman, Ashley Wiljanen, Michelle Ramos, and Dee Sendrowski lent their painting expertise to Our Father’s House in Fitchburg.

Fidelity Bank had a team in the Central MA Day of Caring as well! Nichole Hamm, Sally Buffum, Courtney Denis, Kaylin Carpenter, Heather Yelle, and Brenda Woods put their skills to work doing outdoor handy work at The Bridge of Central MA’s Stepping Stone Residential Program in Worcester.

Our hard work is really starting to get noticed. Fidelity was recently highlighted in two local business journals!

The Boston Business Journal A top 15 fastest-growing bank in Massachusetts.

Read it here.

The Worcester Business Journal Fidelity grows to the 2nd largest mutual bank in Worcester County.

Read it here.

NEWS

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Pumpkin Decorating WinnersThe votes have been tallied and the results are in. We had over 1,000 votes on Facebook alone! Here are winners from our branch pumpkin decorating contest. We had no idea you all have such creative decorating skills!

"Movember" ChallengeWe challenge our resident MOs to join the worldwide phenomenon of MOVEMBER to benefit a great cause.

During the month of November, for every Fidelity Bank employee that gives up shaving and grows a “MO” (moustache, beard, goatee, etc.) the Bank will donate $50 in their honor to the local organization, The 15-40 Connection.

The 15-40 Connection is a growing national organization committed to improving early cancer detection in children, teens, and young adults. Since 1975, cancer survival rates for people between the ages of 15 and 40 have barely improved in large part because of delayed diagnosis. 15-40 Connection is driving a new cancer conversation to change this by empowering people with the lifesaving advantage of early cancer detection. Learn more about their efforts at www.15-40.org.

So, for those MOs who can rock a power moustache with a power tie, help us keep up our Positive and Fun Work Environment by taking the challenge and growing your MO for 30 days, and raise some funds for a great organization!

Leominster Main St – Boo, by Kayla Scott

Barre – Pumcorn, by Heather Yelle

Shirley – Tin man, by Brittany Waseleski

Gardner – Scarecrow, by Cathy MacEwen

Millbury – Scarecrow, by Chris Brady

Leominster Connector – Stitch, by Emily Goodman

Worcester – Spider Web, by Terrence O’Kane

Paxton – Cruella Deville, by Caitlin Stevens

Fitchburg – Treehouse, by Paula Leblanc

Princeton – Monster, by Jody Solomon

Facebook Winners: Branch Winners:

First Place with 144 likes - Treehouse Theme, by Paula Leblanc in our Fitchburg office

Second Place with 134 likes - Theatre Theme, by Rachelle Szocik in our Shirley office

Third Place with 77 likes - Tin Man, by Brittany Waseleski also in our Shirley office

SUPPORT

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Casual with a Cause

Barre Savings Client Appreciation Days

Jeans Day puts cash in some worthy pockets

In joining hands with Barre Savings Bank, we adopted the tradition of Jeans Day. Employees can wear jeans on designated days for a contribution of $5, plus the bank kicks in a matching contribution as well.

Proceeds from each Jeans Day have gone to different designated causes. Recipients to date include the SHINE Initiative, Officer Ronald Tarentino Jr. Memorial Fund, Boys & Girls Club of Fitchburg and Leominster, Worcester County Food Bank, and the March of Dimes.

This continues to be a great way for us to demonstrate LifeDesign values in giving back to the community each time we do this.

Just like hot dogs and ice cream – some things are simply better together.

Customer appreciation events were held October 5-7th at the Barre, Paxton and Princeton offices. These events were a thank you to clients for their patience during the merger process and for welcoming Fidelity Bank into the communities. Customers enjoyed kids’ activities, prizes, lunch and of course dessert from the Fidelity ice cream truck!

Chris McCarthy, President and COO, working the ice cream truck with a big smile!

To date, we have had 11 Jeans Days with contributions totaling over $7,000!

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HR Corner

Stay tuned for more news in 2017!

Open enrollmentOpen enrollment is planned to take place in mid-November this year. To get prepared, there are a few things you can do now:

• Ensure your contact information is accurate in ADP – this information feeds directly over to the carriers.

• Add/update dependents and beneficiaries within ADP – this is found under Myself > Personal Information.

• While the benefit plans for 2017 are still under review, you should start thinking about what medical plan you may want to join. Fallon typically has provided us with four plans – each designed to meet your individual needs.

Please keep a lookout for additional communications regarding 2017 Open Enrollment and, as always, contact the HR department with any questions.

Additional Year-End Reminders• Remember to use the 2016 FSA dollars you set aside! Visit mybenny.com

to check your balance. Not sure if you can use your FSA dollars for an expense? Contact UltraBenefits directly.

• Don’t forget to take advantage of the Health & Wellness benefits offered through your Fallon Health plan!

- Submit your ItFits! reimbursement form to receive cash back for your healthy choices – gym memberships, weight management programs, ski lift tickets!

- Complete your Health Assessment via The Healthy Health Plan and you could receive a monetary reward!

• Use it, don’t lose it! Your vacation and PTO balances will start fresh in 2017, so please ensure you are taking time to rest and spend time with loved ones!

- Not certain of your balance? Look in ADP > Myself > Time Off > Time Off Balances.

Employee Survey updateYou may have noticed something missing this year. We decided to take a short hiatus from the annual employee engagement survey. Given the number of imperatives on our plate this year and the need to focus on being Better Together, we decided to continue concentrating on the key themes of the last survey – communication, insight into how and why we do what we do, and heightening the demonstration of our LifeDesign principles.

Rest assured that your voice matters and the survey is coming back next year! We want to hear, understand, and respond to your needs and thoughts on how to make Fidelity Bank not just one of the Top Places to Work, but an amazing place to grow your career, serve clients and the surrounding community, and have fun doing it.

Vacation and PTO balances must be redeemed by the end of the year. Get your requested days on the calendar today!

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Better Together Celebration at Wachusett Mountain!Earlier this summer, we celebrated that we are Better Together by enjoying an evening at the mountain. The food, games, and scenery were all spectacular. What a great time to connect with each other!

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