HEREthe people of the Seacoast come first g r e e t i n g s A year of growth and transition 2018 was another successful year for Federal Savings Bank, with asset growth of $27.3 million, an increase of 7% from fiscal year 2017. Our growth can be attributed to an extraordinary effort from every person on our team, as well as the continued loyalty of our customers—some of whom have relationships with us that go back generations. In addition to our strong financial performance, I have some exciting news to share with you. This summer, we will be changing our name from Federal Savings Bank to First Seacoast Bank. Why First Seacoast Bank? We have proudly supported the Seacoast region for nearly 130 years and want to clearly communicate our strong commitment to the people, businesses, and communities we serve. We think our new name better reflects who we are and why we are here. Best of all, we will still be known as “FSB” which should help ease the transition to our new brand. We have always moved forward with purpose, from our founding as Dover Co-Operative Savings Fund and Loan Association in 1890, to Dover Federal Savings and Loan Association in 1955, to Federal Savings Bank in 1983, and now to First Seacoast Bank. While our name has changed over the years, our mission, vision, and values have not. We are excited about the future of FSB and the Seacoast and are renewing our longstanding pledge to work with you to help shape the future of this wonderful region that we call home. Thank you to our staff, our Board of Directors, and our customers for a strong 2018 and a future filled with renewed energy, optimism, and opportunity. James R. Brannen, President & CEO FSB in our community w i t h g r a t i t u d e SENH Habitat for Humanity FSB Build Day Holiday Giving Lydia’s House of Hope Dover Children’s Home Cocheco Valley Humane Society $50,000 Donation Community Partner Financing United Way Day of Caring Eagles In Action Jay O’Neill concluded his remarkable career in banking in 2018, as he retired from his role as our President and Chief Executive Officer. A banker since 1975, Jay joined FSB in 1994 as Vice President, Senior Retail Officer, and became President and CEO in 2009. During his tenure, the Bank exceeded growth expectations, going from $257 million in assets in 2010 to $359 million in 2017. He oversaw the opening of our Rochester branch, our transformation to modern “dialogue banking,” and new services like the Customer Call Center, mobile banking, and the founding of the FSB Charitable Foundation. All the while, he insisted on crediting the Bank’s success to the entire FSB team. He will be missed, but never replaced. Thanks, Jay.Jim Schulte first joined our Board in 1982, just before we changed our name to Federal Savings Bank. With his well-earned retirement, we look back on nearly 36 years of remarkable achievement as he helped us evolve into the FSB of today. His first term as Chairman, in 1989, coincided with our 100th anniversary! Over the course of his directorship, he helped to recruit and retain numerous bank officers and Board members as he engaged in some of our most significant projects, from our first ATM, to opening new branches, and incorporating onlinebanking technologies. Under Jim’s leadership, FSB also introduced commercial banking, including our certification as an SBA-approved lender. Congratulations, Jim, and thank you. FSB in our community SENH Habitat for Humanity FSB Build Day s u p p o r t i n g o u r c o m m u n i t y In 2018, we donated over $200,000 to 100+ local nonprofit organizations through direct contributions and our Casual for Our Community jeans day initiative. Holiday Giving A few R E C I P I E N T S Lydia’s House of Hope Dover Children’s Home Big Brothers Big Sisters of NH Seacoast Youth Mentoring Program $2,500 Friends of Madbury Library New Library and Community Center $10,000 YMCA of the Seacoast YMCA of Strafford County Summer Camp Program $5,000 FSB Scholarship Program Eight $1,000 scholarships awarded to local high school students Cocheco Valley Humane Society $50,000 Donation Community Partner Financing In addition to our financial support, our employees contributed countless hours of volunteer time through our Eagles In Action philanthropy program. United Way Day of Caring Eagles In Action Monarch School of New England Therapeutic Garden $2,500 Families First Health & Support Center Dental Program $2,500 f i n a n c i a l s in thousands Statement of Condition for the Period Ending December 31: Income Statement for the Period Ending December 31: Assets 2018 2017 Cash on Hand & In Banks ............ $5,889 $5,650Investments & Securities ............. $49,622 $37,042 Loans Residential Loans ................... $201,759 $188,787 Commercial Loans ................ $106,350 $104,401 Consumer Loans .................... $12,446 $13,321 Deferred Fees .......................... $866 $786 Less Reserve for Loan Losses .......................... ($2,806) ($2,804)Net Loans .......................................... $318,615 $304,491Land, Buildings and Equipment . $5,581 $5,944Net Other Assets ........................... $7,406 $6,620Total Assets ..................................... $387,114 $359,747 Liabilities & Capital 2018 2017Deposit & Escrow Accounts ....... $275,207 $250,529Total Borrowings ............................. $75,737 $72,225Other Liabilities .............................. $3,443 $5,095Total Liabilities ................................ $354,387 $327,849Total Capital ...................................... $32,727 $31,898 Total Liabilities & Capital ........... $387,114 $359,747Income 2018 2017 Interest Income on Loans & Investments ........................ $14,264 $12,600 Interest Expense on Deposits & Borrowings ....... $3,145 $1,820 Net Interest Income ...................... $11,119 $10,780 Provision for Loan Losses ........... – $160 Adjusted Net Interest Income ..................... $11,119 $10,620 Total Non-Interest Income ......... $1,550 $1,815 Total Non-Interest Expense ....... $11,356 $10,822 Income Before Taxes .................... $1,313 $1,613 Income Tax Expense .................... $232 $701 Net Income ...................................... $1,081 $912 Board of Directors2018 Chairman Dana C. Lynch2018 Vice Chairman Thomas “TJ” JeanPatricia Barbour Michael J. Bolduc Mark BoulangerJames R. Brannen James Jalbert Erica JohnsonJames Schulte Janet Sylvester Paula Williamson-ReidOfficers James R. BrannenPresident & Chief Executive Officer Timothy F. DarganSenior Vice President, Senior Commercial Loan OfficerRichard M. DonovanSenior Vice President, Chief Financial OfficerBrad BarbinVice President, Chief Information OfficerPaul BergeronVice President, Commercial Loan OfficerPamela J. BishopVice President, Commercial Loan OfficerJohn CrispVice President, Commercial Portfolio Officer Barbara GrazianoVice President, Internal Audit, Compliance & BSA Officer Priscilla MacInnisVice President, Commercial Loan Officer James C. McKennaVice President, Wealth Management Tiffany Melanson Vice President, Marketing & Public RelationsStephanie MorneauVice President, Retail Loan Production OfficerWilliam Sawyer Vice President, Special Assets ManagerJennifer StauffisVice President, Treasurer & Finance/ Deposit Operations OfficerJohn Swenson Vice President, Bank Administration & Enterprise Risk OfficerJean TremblayVice President, Senior Retail Loan OfficerChantal UptonVice President, Sales & Training Thomas Wilhelm Vice President, Loan Operations OfficerSharon ZachariasVice President, Human Resources Susan L. BrownCorporate Clerk Ted BakerAssistant Vice President, Financial AdvisorBrian Bjorkman Assistant Vice President, ControllerValerie Dyer Assistant Vice President, Business Development Officer Cheryl ThompsonAssistant Vice President, Business Development Officer Sharla RollinsAssistant Vice President, Branch Administrator/Branch ManagerJanet Wyman Assistant Vice President, Deposit Operations Manager Eric Cournoyer Lead Mortgage Loan Officer Coralie O’BrienMortgage Loan Officer Cindy WardMortgage Loan Officer Katie BuoteBarrington Branch ManagerGina DeNuzzioDurham Branch ManagerNorlaila MillerPortsmouth Branch ManagerZachary ZwickerDover Branch Manager Dover 633 Central Avenue, Dover, NH 03820 603-742-4680 Durham 7A Mill Road, Durham, NH 03824 603-868-1111 Barrington 6 Eastern Avenue, Barrington, NH 03825 603-664-9327 Portsmouth 1650 Woodbury Avenue, Portsmouth, NH 03801 603-431-2212 Rochester 17 Wakefield Street, Rochester, NH 03867 603-332-3740 55,000 surcharge-free ATMs worldwide Allpointnetwork.com fsbdover.com Member FDIC