Annual Report 2016

bright past

bright present

bright future

North Brookfield | East Brookfield | West Brookfield Ware | Belchertown | Palmer | Three Rivers

NorthBrookfieldSavingsBank.com866-711-6272

To Our Valued Customers & Community Members:

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As a true community bank,

North Brookfield Savings Bank

remains focused on delivering

exceptional service so we can

provide you with banking services

and quality products to help

you reach your financial goals.

Another year has drawn to a close and as we reflect on 2016 it is rewarding to see a year filled with highlights that contributed to the continued growth of North Brookfield Savings Bank. In 2016, the Bank experienced both loan and deposit growth, finishing the year with over $288 million in assets and capital of just under $35 million, far in excess of regulatory minimums. North Brookfield Savings Bank continues to be a secure, strong and reliable Bauer Financial 5-star rated financial institution and a steadfast community partner, which during this time of banking consolidation ensures the Bank remains on the current path to a bright future.

In order for us to achieve that, we remember that North Brookfield Savings Bank was established with a mission to meet the needs of the local community. Whether financing a home, car, or business, or saving for a child’s education or your retirement, we are able to meet that need.

NBSB is able to handle multi-million dollar loans to area businesses, residential mortgages, construction loans and in 2016 was a participating lender in the Mass Clean Energy Solar Loan program with resounding success. To further make certain that all of our customers’ banking needs are met, we offer conveniently located state-of-the-art branch locations with knowledgeable, experienced staff and a full collection of convenience services and deposit products for all stages of life.

We are constantly striving to bring you even better banking. In 2016, we improved our accessibility and convenience for our customers by introducing our Mobile Banking app with Deposit on the Go Mobile Check Deposit, and the adoption rate exceeded expectations. In addition, we modernized our Palmer branch location to have a more efficient and streamlined design.

As a true community bank, North Brookfield Savings Bank remains focused on delivering exceptional service so we can provide you with banking services and quality products to help you reach your financial goals. The staff at NBSB truly cares about our customers and is committed to exceeding your expectations. When you call us we answer the phone, and when you visit us we know you by name. This traditional approach combined with modern technology is the foundation for NBSB’s sustained growth. I am confident that this balanced way of doing business will further improve customer satisfaction and will allow us to remain competitive by offering innovative banking technologies while staying connected to our customers.

It is easy to see that we simply love our communities, as made evident through North Brookfield Savings Bank’s overall community giving initiatives, in addition to the many generous volunteer hours willingly committed by NBSB employees. We work hard to contribute in various ways to local organizations that directly benefit and make the most impact within our immediate communities.

North Brookfield Savings Bank makes your financial security a top priority. As cyber threats and fraud are becoming more common, we continually improve upon our risk management programs to ensure we have systems to protect our information and to educate our customers on cybersecurity awareness.

North Brookfield Savings Bank has had consistent earnings and growth. While 2016 had many accomplishments we want to highlight, our attention is now heading in the direction of our 2017 goals. The renovation of our West Brookfield branch will bring you a state-of-the-art location and we have upgraded our Bill Pay to include Popmoney®. Our efforts are already underway and our coming decisions will be based on what is best for the long term to ensure a bright future for us all.

Thank you to our customers, communities, employees and the Board of Trustees for your continued support and trust.

Bright past, bright present, bright future,

Donna L. BoulangerPresident & Chief Executive Officer

Our CustomersBright past, bright present, bright future

North Brookfield Savings Bank takes great pride in knowing that you will have a remarkable banking experience when you visit us. The reason for this is simple - you deserve it. Each and every day we provide our customers with the very best customer service and personalized attention. We proudly offer a wide variety of straightforward lending and deposit products for every stage of your life. Plus, to help make your life even simpler we offer helpful banking services like online banking, bill pay, eStatements and eLoanBills and have added some new technologies like mobile banking with mobile check deposit. You can quickly and easily apply online for a loan with just a few clicks or we welcome you to visit any of our convenient branches or our Mortgage Center. North Brookfield Savings Bank is always here to help you, here to serve you.

North Brookfield Savings Bank

is always here to help you,

here to serve you.

East Brookfield Branch Manager Adam Gillette visited Scott and Gracie Conner, owners of the

well-known and loved EB Flatts Restaurant located in East Brookfield.

Belchertown Branch Manager Warren Izyk assisted Martinus J. Ruiterman, owner of Martin’s Auto, LLC in Belchertown with his business and personal banking.

Regional Branch Manager Cindy Fountain visited

Betty Gundersen, owner of Betty Gundersen Studio of Dance located in West Brookfield shown with some of the outstanding studio faculty members Rhiannon Gresty, Lucy Jacek, Victoria Schlegel and Becky Garlicki.

SVP/Retail Lending Manager Donna Tiso along with Mortgage Underwriter/Closer Caitlin Burns helped Rhonda and John Brault finance their beautiful colonial home in North Brookfield.

Ware Branch Manager Jennifer Rylee Hatt with Irene Allard, owner of Bray’s Landscaping in Ware, along with her landscaping crew

members Melinda, Zachery, Sarah, and Katherine.

Three Rivers Assistant Branch Manager Stephanie Skaza visited Chris Stolar and Renee Niedziela, owners of J. Stolar Insurance Agency, Inc. in Palmer along

with Palmer Assistant Branch Manager Jennifer Plassmann.

Janice and Dale Wentworth, owners of The Warren Farm and Sugarhouse, shown with their dogs Jack and Natalie, financed their Ford Explorer with the help of Regional Branch Manager Tonya Morrill.

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Each and every

day we provide

our customers

with the very best

customer service

and personalized

attention.

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Our BusinessesBright past, bright present, bright future

At North Brookfield Savings Bank we love to shine a light on our amazing business customers because they are an integral part of our communities and our success. We are honored that they place their trust in us to take care of their business banking needs every day. The NBSB Business Center has all the elements you could possibly want when it comes to your business finances - an experienced commercial team that will listen to your ideas and help make them into a reality, local decision making power, convenient banking services like online banking, bill pay, mobile banking and mobile check deposit, a selection of business deposit products which includes a free business checking account, plus a wide variety of small business and commercial loan products that we can customize to your exact business needs. Our goal is for you to be able to focus on what is truly most important – your business.

At North Brookfield Savings Bank we love to

shine a light on our amazing business customers.

Rick Egan, VP/Commercial Loan Officer and Dr. Amjad Bahnassi look over plans of his new practice location

being built on Shrewsbury Street in Worcester.

Valerie James, owner of Val’s Restaurant & Lounge located in Holden, met with Tony Piermarini, SVP/Senior Commercial Loan Officer and John Downs, VP/Commercial Loan Officer.

William Kleinedler, owner of Kleinedler Studios in New Braintree gave Rick Egan, VP/Commercial Loan Officer

a tour of his beautifully constructed art studio.

Shane Chabot, owner of Country Auto Body Inc. in North Brookfield with Rick Egan, VP/Commercial Loan Officer and John Downs, VP/Commercial Loan Officer.

Marcia Terry, Michelle Terry and David Terry Jr., owners of CEP Real Estate, LLC based out of Brookfield with

Rick Egan, VP/Commercial Loan Officer.

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Our goal is

for you to be

able to focus

on what is

truly most

important –

your business.

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6 Norman Gadoury, owner of Gadoury Homes, LLC, in Manchaug, with Tony Piermarini, SVP/Senior Commercial Loan Officer and Nicole Bumgarner, Bookkeeper and Agent of Gadoury Homes, LLC visiting newly constructed townhomes in Whitinsville.

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North Brookfield Savings Bank is proud to partner with Gadoury Homes, LLC when it comes to financing new construction properties. Gadoury Homes, LLC has been servicing the central Massachusetts area since 2004, and like North Brookfield Savings Bank, places a high importance on providing the very best experience to their customers. They pride themselves in helping every family find a house that perfectly fits their needs and turning every house into a home.

NBSB helps a business turn a house into a home.Gadoury Homes, LLC

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Our CommunitiesBright past, bright present, bright future

At North Brookfield Savings Bank, our steadfast commitment to our communities is simply a part of who we are. We know that our connection is vital to the well-being and strength of our vibrant communities and that is demonstrated through the hours volunteered by our dedicated employees and the contributions made by NBSB. Together we promote literacy through school banking programs, young entrepreneur business programs and community reading days. We walk and fundraise for local cancer services, help community members in need by collecting food and toys through our annual drives, assist our local seniors, host fundraisers and blood drives, support fun community events and make financial contributions; to name a few. We believe in being a contributing member of our communities and there is nothing that pleases us more than to offer support to our neighbors and friends in order to help them shine their brightest.

Our steadfast commitment

to our communities is simply

a part of who we are.

NBSB President and CEO Donna L. Boulanger and NBSB Trustee Betsy Cuddy presented a $2,374 check to Camp Putnam Executive Director Todd Stewart from the NBSB “Feed a Camper at Camp Putnam” fundraiser.

Regional Branch Manager Tonya Morrill presented a $1,500 check to Hearts for Heat North Brookfield Chapter members Tina Buzzell, Ellen Smith, and Sue and Tom Lewandowski to help make fuel payments for neighbors in need.

Three Rivers Universal Supervisor Felecia Paquin and Assistant Branch Manager Stephanie Skaza present the NBSB Toy Drive collection from the local community.

NBSB’s May Hat Contest Winner two-year-old Flynn Reardon was spotted wearing his NBSB hat while visiting the Bank’s booth at the West Brookfield Asparagus and Flower Heritage Festival.

As a gold sponsor of the Palmer 300th Parade, NBSB volunteers participated in the event while wearing “Palmer 300” swag and handing out fun giveaway items along the parade route.

Palmer Assistant Branch Manager Jennifer Plassmann and Ware Branch Manager Jennifer Rylee Hatt presented a $500 check and totes to Linda Lloyd, Executive Director of the Angels & Backpacks Program which funds weekend food bags for local low-income school children.

NBSB President and CEO Donna Boulanger along with other mentors from NBSB assisted North Brookfield Elementary School students such as Amanda Seidler and Molly Procopio at the TREPS Business Plan Workshop.

Belchertown Branch Manager Warren Izyk with Gianna Zenon, Ella Ricker and Belchertown Assistant Branch Manager Renee Jurczyk, holding some of the food drive items the girls’ collected in lieu of birthday gifts.

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There is nothing

that pleases us

more than to

offer support

to our neighbors

and friends in

order to help

them shine

their brightest.

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OFFICERS

President & CEODonna L. Boulanger

Senior Vice PresidentMargaret I. CarrKimberly A. CobbPatricia A. OstroutAnthony J. PiermariniDonna M. Tiso-PrizioVice PresidentCynthia G. AyersPatricia A. BernardJohn T. DownsRichard B. Egan, IIJay W. JilCherie E. Morgan

Assistant Vice PresidentCaitlin M. O’Connor

EMPLOYEES

Mary AntinovitchRachel BeaudryJennifer BerthiaumeAnn BradyMeagan BrousseauCaitlin BurnsAmy CasavantLinda CunninghamJoseph DeadySamantha FarmerScott FarrCindy FountainScott GarrandAdam GilletteKatelyn GrangerKathleen GrigasLeslie GuertinTammy Gustafson Elise Hank-WitaszekJennifer Hatt

Trustees, Corporators, Officers and Employees

TRUSTEES

Chairman Roland A. Gauthier Thomas C. Baker, III Blaise P. BerthiaumePresident & CEO Donna L. Boulanger Sara Hunt Gregory C. Kline John R. A. Lofgren Elizabeth A. Martinelli M. Richard Pluta Lloyd A. Rice Jeffrey A. SpencerClerk of the Corporation Alan R. Varnum

Honorary TrusteesArthur Allen, Jr.Harold Chesson, Jr.Robert E. Pillsbury

CORPORATORS

Trustees and the following:

Mark AdamsMichael AudetteMatthew G. BenvenutiDamien BerthiaumeJessica BettencourtRichard BonnayerElaine BooneChristine BuzzellHarold R. Chesson, IIIPaul CranstonAgnes DavisKevin M. DonahuePeter A. DupellRichard GreeneWilliam D. HerrickPriscilla B. Howe

Janel HolmesJamie HubaczWarren IzykDarlene JarnaganRenee JurczykPamela KozlikLaurie LacaireSamantha LavalleySara LeBelAndrea LedouxRenee LetendreYvonne LittleJessica MonahanTonya MorrillEllen MulherinKelsey Anne NicholsMaryMargaret O’SheaFelecia PaquinMadison ParkerLynn PionJennifer PlassmannMax RichardTheresa RuizJessica ShimanskyStephanie SkazaJenny SkoczylasRachael SlozakPaula St. JohnDawn StaffordWendy SwallowNicole SyriacJean SzelaPaula TankersleyJean VarleyDebra WarmanSteven WarmanAvalyn WarnckeMorgan WesterbackHannah White

Brenda HowlandJack Hulmes, Jr.Joseph JannetteRobert LaFlammeMarc LamoureuxAndrew Leach, Sr.Vincent J. LucchesiJohn LukaskiewiczErnest Messier, Jr.Scott NorrieTracy OpalinskiRobert PaquetRichard M. ParsonsGail PiatekEdward ReedJames St. AmandNancy SalemDavid SnayMichelle TerryMichael ToomeyGene R. VarneyRichard Varney Marc VarnumMaureen Wesolaski

Honorary Corporators Matthew C. BenvenutiRobert BishopJune KlemJohn KrusellRobert PillsburyLouise Woodard

Consolidated Balance Sheet

DECEMBER 31 2016 2015

ASSETSCash and Due from Bank 7,267,327 8,725,229

Investment Securities

Available for sale, at fair value 49,223,000 53,874,000

Held to maturity, at amortized cost 14,161 ,000 17,123 ,000

Real Estate Loans 132,303,745 116,868,896

Commercial Loans 54,687,462 48,678,762

Consumer Loans 10,040,045 2,186,714

Banking Premises & Equipment 6,766,565 6,991,635

Federal Home Loan Bank Stock 1,599,000 1 ,661,500

Federal Reserve Bank Stock 660,400 630,250

Other Assets 1 2,004,388 13,459,052

TOTAL ASSETS 288,712,932 270,199,038

LIABILITIES AND SURPLUS

Savings and Term Deposits 173,341,461 1 6 1 ,587,951

Checking, NOW and Demand Deposits 53 ,1 14 ,18 1 48,310,834

Mortgagors’ Escrow Accounts 709,000 674,438

FHLB Advances 2 1 ,000,000 20,500,000

Other Liabilities 5,782,358 5,612,774

TOTAL LIABILITIES 253,947,000 236,685,997

TOTAL EQUITY CAPITAL 34,765,932 33,513,041

TOTAL LIABILITIES AND EQUITY CAPITAL 288,712,932 270,199,038