All kinds of easierSM

For easier banking, it was a very good year.

2014 Resolutions: Done

2014 Annual Report

Consult on-site at businesses

Support the community

Put live Personal Bankers on interactive

video screens

Stay financially strong

2014 Resolutions:DONE

Offer 24/7 mobile banking

Make mortgage process easier

Help you earn and save money

Extend banking hours

Our resolutions are all about you.

Everywhere banking touches your life, we work hard to bring you new ease and speed. A brief look at 2014 will show you how Ion Bank continues to make your banking all kinds of easier.

Give customers more reasons to choose Ion Bank.

Ion Bank achieved many benchmarks of success in 2014. But one in particular brings special pride:

In a Hearst Connecticut Newspaper survey of 10,000 workers, Ion Bank ranked among the Top Ten Workplaces for midsize companies

in southwest Connecticut for the second year in a row.

Enthusiastic customers plus motivated employees—that’s the proven formula for better banking. It’s the heart of a mutual bank’s success: devoting 100% of our efforts to serve our customers, not generating dividends for shareholders. And it demonstrates the power of being centered in the community, not managed from somewhere else in the country.

Our team and our customers have helped make Ion Bank an ever-growing asset to this region. Thank you for your confidence in us.

Charles J. Boulier, IIIPresident & Chief Executive Officer

You can choose from many banks. We want to make Ion Bank the standout choice for consumers and business customers. To succeed, we’re leveraging two crucial assets: the power of new technology and the knowledge and personal touch of our people. Please read how we’re making the most of both.

DONE

Make day-to-day transactions easier.

DONE

To make your banking easier, we’ve extended our hours, including our toll free Customer Contact Center (Mon. – Fri., 7 a.m. to 8 p.m., and Sat., 7 a.m. to 3 p.m.). Or chat online with a Customer Consultant at IonBank.com. Along with 24-hour ATMs at our 17 branches, customers now have free use of over 55,000 Allpoint ATMs worldwide. After normal lobby hours, select branches offer Personal Bankers on interactive video screens. And any time, make secure check deposits by smartphone, anywhere you are.

When it comes to saving and making money, what’s easier than free? Ion Bank offers Free Checking that’s really free—without the conditions many banks insist upon. Plus, with our Ka-Ching! savings program, you save while you spend—a true differentiator in the marketplace.

For prompt business financial decisions, our commercial bankers make a point of getting out of our offices and into your business, learning it firsthand. For loans of all sizes, from business expansion to capital equipment financing, Ion Bank is on the case. You can also use Remote Deposit Capture to make deposits right from your business. This efficient system helps businesses improve cash flow, reduce processing expenses, consolidate deposits from multiple locations, and learn about returned items in less time.

Naturally, you evaluate a bank by the numbers. Our ongoing mission is to be a force for progress in banking. These results speak volumes about the confidence we’ve inspired.

CONSOLIDATED STATEMENT AND CONDITIONDecember 31, 2014 and 2013 (in thousands of dollars)

Stay financially strong.

DONE

December 2014 December 2013

ASSETS

Cash and Cash Equivalents $ 5,139 $ 5,267

Investment Securities &

Interest Bearing Cash Equivalents 143,616 132,234

Loans —

Loans and Mortgages 869,552 794,562

Less Allowance for Possible Loan Loss 12,241 11,189

Total Net Loans 857,311 783,373

Other Assets 49,259 42,330

TOTAL ASSETS $ 1,055,325 $ 963,204

LIABILITIES AND RETAINED EARNINGSDeposits—

Savings & Time $ 371,669 $ 337,023

NOW, Money Market & Checking 454,103 416,575

Total Deposits 825,772 753,598

Borrowings 108,069 92,162

Other Liabilities 30,039 18,079

Total Liabilities 963,880 863,839

Accumulated Other Comprehensive Income (11,322) (2,114)

Retained Earnings 102,767 101,479

TOTAL LIABILITIES & RETAINED EARNINGS $ 1,055,325 $ 963,204 Information based on Call Report data

Make a difference in the community.

DONE

Through charitable contributions. We donated more than $660,000 in 2014 to organizations such as the Naugatuck Fire Department for a lifesaving Automated External Defibrillator (AED), the Boys & Girls Club of Greater Waterbury, Literacy Volunteers of Greater Waterbury Inc., the Mattatuck Museum, ARC of Meriden/Wallingford, Girls Inc. in Meriden, the Hamden Arts Commission, the Wallingford Emergency Shelter, and the Meriden Children First Initiative.

Through our volunteers. Our employees donated 6,794 hours of time, energy, and enthusiasm to volunteer projects, including the Food Drive for the Naugatuck Ecumenical Food Bank, teaming up with Naugatuck All About You! Home Care Services. The Ion Bank Cheshire Half Marathon/5K raised over $100,000 for Best Buddies, the Cheshire Lions Club, and Abilities Without Boundaries.

Directors Mark C. Yanarella, ChairmanCharles J. Boulier, IIIAnn Merriam FeinbergRichard H. GesseckLucille JanatkaDavid W. NurnbergerFrancis R. PowellJohn H. TobinStephen C. Widman

Corporators John D. ArestaRoy A. BalkusJames P. BehuniakRegina S. BirdsellCharles J. Boulier, IIIJohn A. BrucatoWayne P. BuckmillerRichard D. CoeRocco K. CorsoLaura C. Dake-RocheJose P. DaSilvaPeter J. EscobarAnn Merriam FeinbergDavid FerraroEdward G. FitzpatrickPaul FitzpatrickEugene A. FridlandChristopher GattoRichard H. Gesseck

Tom HennickJames J. JacksonPeter JacobyLucille JanatkaMarcelo MartinsJohn M. Milone, Jr. David W. NurnbergerGary B. O’ConnorMatthew L. O’ConnorFrancis R. PowellRonald J. PuglieseElizabeth M. SantoroGeorge StoneScott M. SutherlandJohn H. TobinStephen C. WidmanMark C. YanarellaLaurie M. Yelding

All kinds of easierSM

PHONE203.729.4442 ortoll free 877.729.4442

WEBIonBank.com

MAILIon BankPO Box 370Naugatuck, CT 06770-0370

WEB CHATSelect “Contact Us” at IonBank.com

ALLPOINT ATMallpointnetwork.com/ atm-locators.aspx

SOCIAL MEDIAFacebook.com/IonbankTwitter.com/Ion_Bank

Member FDIC Equal Housing Lender