Welcome to the Annual Report for Guilford Savings Bank.

Whether you’ve picked up a copy at one of our branch locations or are reading an interactive

version on a mobile device, the way you choose to interact with this annual message is reflective

of the many ways our community bank is prepared to meet the needs of a growing and changing

customer profile.

From maintaining and honoring the traditions of a comfortable and friendly neighborhood

branch, to being found and accessed by those in far-reaching zip codes, a viable financial

institution needs to build new relationships while strengthening relationships that are well

established and well valued.

On the following pages, we will share how Guilford Savings Bank (GSB) celebrated

another successful year by banking on relationships with customers both newly minted and

well-rooted in our mission, with our talented team, and with the community we serve.

On the threshold of celebrating a 140 year anniversary, GSB’s ability to reach, bond and

welcome a more diverse customer profile while nurturing those closer to home resulted in

another year of strong financial growth and continued stability. From cutting the ribbon at

our strikingly renovated Madison location, to pushing the button on expanded web-based

resources, we remained true to our strategic plan, mission and values.

Balanced efforts at retention and recruitment have resulted in one of the strongest teams

this organization has experienced. This is not only my opinion, but as ranked by the

respected Financial Management Consulting Group (FMC), who has placed GSB

among the top four banks in Connecticut, and by Bauer Financial, who has ranked

GSB as a five-star institution for the past 25 years. This passionate and respected

team stepped forward once again in support of our community, maximizing our

newly engaged matching gift program. In addition to labor hours, dollar-for-dollar

matched funding has enhanced our joint ability to impact the delivery of services

to those in greatest need.

We’re an employer of choice for financial professionals becausewe invest in our people.

The year ahead will deliver many ways to celebrate 140 years, most notably among them the renovation of our main branch on the vibrant Guilford Green. While maintaining the historic nature of this landmark building, we intend to create an interior that is more inviting and more reflective of what customers — current and potential — have come to expect in a banking environment. All of this, while keeping the cookies warm.

As I conclude my first year as President & CEO and begin my third decade as a member of the GSB team, I echo the blending of new approaches and traditional perspectives. What is common to both insights is a commitment for GSB to remain a strong, independent and accessible mutual bank that shares your community and your values.

Thanks to our locally led board of directors, our colleagues, and our customers, GSB is truly banking on relationships.

Timothy P. GeelanPresident & CEO

What does it take to stand

behind acommitment to

community?

Hard work.

In 2014, we set out to increase our community involvement like never before,

starting with our commitment to local non-profits. Dedicated members of our team

sit on over 60 non-profit boards and committees, volunteering their time and

lending their expertise to help our communities grow.

As a whole, our employees volunteered nearly 11,000 hours in the past year.

We spent our time building new houses with Habitat for Humanity, plunging into

icy cold waters with the Special Olympics of Connecticut, playing games with

children at local concert series and supporting blood donors at American Red

Cross Blood Drives.

Our team took to the classroom to teach high school juniors and seniors about

credit during “Get Smart About Credit Day”, and explained how banks work

to middle-school students as part of Junior Achievement’s financial literacy

program. We partnered with the United Way and Women & Family Life

Center to lend coaches for their “Smart About Money” program, helping

families get back on their feet by better managing their finances, and

continued to improve our own first-time homebuyer seminars.

“We continue to introduce new initiatives to our well-known efforts

of volunteerism and community support,” shares Lisa LeMonte, AVP,

Community Development Officer, who leads the non-profit committee.

“Following the success of established funds at the Guilford, Madison

and Branford community foundations, plans are underway to establish

a fund in Old Saybrook via the Community Foundation of Middlesex

County. We also started a new Green for Greens program with local

food pantries helping to provide healthy, fresh produce during the

winter months.”

As a community bank, we’re interdependent with the communities we serve. When our community thrives, we thrive. By expanding established giving, and encouraging

first-time donations, the employee match program saw a 35%

increase in contributions to worthwhile causes year-over-year.

When paired with ongoing sponsorships, donations, and

volunteerism, the total impact of our passionate community

bank is measurable.

BANKING ON

COMMUNITY

“Seaside Village in Niantic may be one block from the beach, but it represents a shift outside of our traditional market area,” shares Robert Carmody, 1st Executive Vice President and Chief Lending Officer at GSB, discussing this $7.5 million, 45-unit condo development in the heart of this quaint city. “However, moving our brand from established territories and into new markets was why Lyle Fulton, SVP, Commercial Loan Origination Manager, a 25 year veteran in commercial lending, joined our team. Through referrals and reputation, we have succeeded in growing the scope of our projects and our geographic footprint.”

Seaside Village is a three-phase project which is completing its final phase. Ready to make a change in banking resources for this last construction milestone, the development team sought new options and were referred to GSB.

“This project was a natural fit for our organization,” Carmody further explained. “While significant in scope, the product was affordable housing. Seaside Village matched our desired project profile and echoed our mission of positive community impact. We took the opportunities presented here very seriously as did the President and CEO of our bank. Tim joined us at initial meetings to convey our interest and commitment. Such efforts were noticed, and this developer became a valued client.”

Construction is well underway at Seaside Village with units ready for market in the Spring. At that time, GSB will provide further support by offering potential buyers special discounted rates as a benefit of the GSB relationship with the developer. These types of builder loan programs are unique to GSB, are tailored to be a seemless process between the developer, builder and the end buyer, and have earned award-winning recognition from the Home Builders & Remodelers Association of CT, Inc.

“We are proud to be the recipient of the 2014 Home Building Industry (HOBI) Award for Best End Loan Package for a Community and are privileged to work alongside other HOBI recipients on many of the residential projects we support,” shares Chip Poehnert, AVP, Residential Sales Manager. Poehnert brings with him over three decades of financial industry experience — the majority in residential lending. “When we help award-winning construction firms, such as Mystic River Building Company and Nordic Builders of Tolland, to close a new construction loan, we support the needs of both a vital local business and new homeowners.”

“We refer many of our home purchasers to GSB,” concludes Allan Koiva, owner of Nordic Builders of Tolland. Poehnert, who works closely with Koiva, notes that “in one circumstance, the borrowers had been committed with another lender. They supported our recommendation because our personal service was so much stronger. GSB was chosen, in many respects, because of our great reputation.”

Whether 45 housingunits in a multi-million

dollar project or adream home,

developers andhomeowners

require trustedbanking partners

with a reputation for flexibility, innovation

and commitment.

BANKING ON

REPUTATION

ASSETSCash and Due from banks $4,658,117

Interest Bearing & Federal Reserve Bank Deposits 4,739,017

U.S. Government and Agency Securities 3,221,943

Auction Market Securities 4,000,000

Corporate and Municipal Bonds 47,810,197

Corporate Stock and Mutual Funds 19,514,056

U.S. Agency CMOs and Mortgage-Backed Securities 82,802,973

Federal Home Loan Bank Stock 3,049,100

Investment in Bankers Bank-Northeast 220,000

Unrealized Gain (Loss) on Investments 5,623,185

Real Estate Loans 379,644,269

Other Loans 9,683,246

Allowance for Loan Losses (3,969,183)

Bank Premises, Furniture and Equipment 10,565,536

Bank Owned Life Insurance 17,783,897

Other Real Estate Owned 382,090

Other Assets 5,345,766

Total Assets $595,074,209

LIABILITIESSavings and Money Market Deposits $320,602,387

Checking and NOW Deposits 30,345,772

Certificates of Deposit 111,227,015

Secured Borrowings 5,569,236

FHLB Borrowings 40,723,453

Other Liabilities 7,674,437

Total Liabilities 516,142,301

SURPLUS 78,931,908

Total Liabilities and Surplus $595,074,209

ASSETS

As of December 31, 2014 bank assets were $595.1 million,

representing a growth of $35.4 million over year-end 2013.

LOANS

GSB’s gross loan portfolio ended the year at $389.3 million,

9.3% higher than the prior year. The Bank originated $32.5

million in first mortgages, $18.3 million in consumer loans,

and $63 million in commercial loans. Commercial loans

grew 31.3% year over year, continuing with the Bank’s

strategic plan to serve its small business community.

DEPOSITS

Deposits ended the year at $462.2 million, up

$24.3 million year-over-year, with growth primarily

in money market and savings accounts.

CAPITAL

GSB’s capital position of 13.3% remains strong at

over twice the level recognized by the FDIC as

well-capitalized. Year-end capital totaled $78.9

million, increasing by $4.8 million or 6.4%

for 2014.

EARNINGS

Net income of $4.0 million exceeded budget

projections. GSB’s earnings significantly augment

capital, thereby supporting our healthy

capital position.

CONDENSED STATEMENT OF CONDITIONAs of December 31, 2014

NOTE: Guilford Savings Bank has granted letters of credit totalling $805,730.No amount is outstanding at this time.

BANKING ON

STABILITYNet Income (in millions) Total Deposits (in millions)

$1

$0

2010 2011 2012 2013 2014

$2

$3

$4

$5

2010$0

$20

$40

$60

$80

$120

$100

$140

2011 2012 2013 2014

Total Loans Outstanding(in millions)

New Loan Production(in millions)

2010$330

$340

$350

$360

$370

2011 2012 2013 2014

$380

$390

$400

Total Risk Based Capital Ratio(RBC)

Regulatory Required Minimum: 10%

20100%

5%

10%

15%

20%

25%

30%

2011 2012 2013 2014

Nonperforming Loans/Total Loans

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2010 2011 2012 2013 2014

Peer Group

GSB

2010$380

$390

$400

$410

$420

2011 2012 2013 2014

$430

$440

$450

$460

$470

Whether beginning a career and seeking to be part of an innovative team, or

leveraging decades of experience in support of a strong strategic plan, our

community bank has proven to be the ideal environment for PEAK performance.

“PEAK — People, Engagement, Accountability and Knowledge is our team

development initiative for culture here at GSB,” explains Jennifer Pensa, VP,

Senior Operations Officer. “From a foundational understanding of GSB’s unique

approach to banking, to PEAK awareness of your role in mutual success, we

seek to recruit and retain those truly invested in themselves and the performance

of our mission.”

“GSB has given me new friendships and new opportunities,” adds Mike

Storiale, AVP, Digital Banking Manager and GSB team member since 2010.

“We take classes together, challenge each other, and most importantly, take

pride that with innovative ideas, we are leaving a legacy. Through the

efforts of our team we are helping to ensure this mutual bank remains strong

and independent for the generations that follow.”

Slightly more than 100 strong, the “CommuniTeam” of GSB impacts

nearly every aspect of the region where they live, work and engage.

From 11,000 volunteer hours and 60 non-profit boards to $228,000

in direct Bank donations, these like-minded individuals are united in

common values through the application of talent.

“At GSB, you can leverage your background and grow along with the

Bank. We are an employer of choice for financial professionals and a

great place to be,” concludes Timothy Geelan, President and CEO in

a recently created video about the culture and community of GSB. To

learn more about the culture at GSB, visit gsb-yourbank.com/talent.

BANKING ON

TALENT

We’re lookingfor people of a

similar mindset, you can leverageyour backgroundand grow along

with the bank.

When GSB acquired ARIA (Asset & Retirement Investment Associates) in 2011, we

anticipated that this already successful operation would continue to thrive. At the close

of ARIA’s third year as a subsidiary of GSB, growth has well-exceeded expectations

— a tribute to the experienced, professional and principled management team.

“When I established ARIA in 1999, I had little doubt that our transparent,

fee-based portfolio management philosophy would be well received,” shared

Deborah Abildsoe, Founder. “We build custom-tailored portfolios in a reflection of

the unique needs of every client. As a result, we minimize external fees and bypass

commissions, placing our interests squarely on the same side as our clients.”

As hoped, ARIA has proven a valuable resource for the customers and partners

of GSB, supporting every client’s goal to preserve and grow capital. To meet

the growing demand for personalized investment and retirement solutions,

ARIA will be expanding their team in the year ahead, welcoming highly

skilled advisors and portfolio managers. In support of this growth, a new

website was launched recently, AriaInvest.com, sharing information about

the people, philosophy and other insights for the benefit of potential clients

and colleagues, alike.

“While our total assets under management has grown the past few years,

something more important has grown as well,” concludes Deborah.

“Through our relationship with GSB, ARIA has been able to achieve a

greater impact on the community we value. We believe that to create a

strong community tomorrow, it’s up to us to invest our time and dollars

today. As we grow, our investment in our community will grow with it.

From board service to direct donations, we have been investing in the

most important dividend of all — a better future.”

To learn more about ARIA, including the most recent newsletter, visit

AriaInvest.com.

ARIA is a separate subsidiary of The Guilford Savings Bank. ARIA is a registered investment advisor and makes investment recommendations that involve products that are not Bank deposits, are not guaranteed by the Bank, and involve investment risks, including the possible loss of principal.

Growththrough awealth of

knowledge.

BANKING ON

GROWTH

Making thingseasier is the future

of all banking environments.

BANKING ON

THE FUTURE

American Polyfilm in Branford has great plans for the future. They are in the process of building a new facility that will triple the size of this custom polyurethane film producer. Guilford Savings Bank has construction plans of their own underway. Visions include renovating the landmark office on the Guilford Green, honoring the historic aspects of the building while updating the interior to meet the needs of current and future customers.

“Our Main branch will be renovated to provide modern technologies and an interior banking environment that is less about teller lines with barriers between customers, and more about better interaction,” shares Renee Pallenberg SVP, Retail Banking & Marketing Officer for GSB. American Polyfilm has been just as mindful in their plans for the future, designing their new space for growth and realistic market potential.

“We have been directing our strategic plan and quality assurance efforts toward the medical industry — a significant and growing market that we serve,” explains Victor Cassella, President and CEO of American Polyfilm. “We are a very service-oriented manufacturer and when it came time to identify a banking partner to support our future, we sought a financial institution who was also dedicated to service. GSB was among those under consideration.”

“American Polyfilm was careful in planning their expansion, and even more careful in selecting their banking partners, seeking one with SBA 504 experience” shares Mark Jenusaitis, VP, Commercial Lending Officer at GSB and a veteran at providing tailored solutions for small businesses. “The future and economic recovery is on the shoulders of small businesses. Therefore, the leadership team at the Bank took personal tours, hosted engaged meetings and shared common visions with the American Polyfilm community. In the end, GSB proved to be the best fit for an organization dedicated to remaining local, and creating good jobs.”

“GSB sent experienced, responsive lenders with extensive SBA history and presented the best thought out proposal,” concludes Cassella. “Since the initial closing on the property and in every step of the way, the loan officers and staff of GSB have made a complex transaction very easy to negotiate.”

“Making things easier is the future of all banking environments,” echoes Pallenberg. “Whether a tangible branch location such as our Main branch renovation or an online application, every effort will be made to assure that existing and future customers find it easy to access, select and have a relationship with our Bank.”

Future home of American Polyfilm

2015 BOARD OF TRUSTEESCharles L. Havrda, ChairmanBarbara L. Truex, Vice ChairmanWilliam A. ChildressStephen J. DowlerTimothy P. GeelanRichard A. GentileWilliam W. LeeMargaret Y. LivingstonSandra J. RuoffPaul Sullivan, Jr.

2015 BOARD OF CORPORATORS(INCLUDES THE BOARD OF TRUSTEES)

Christopher BalestracciDavid M. BrownPhilip CarloniRobert L. Carmody*Ryan Duques*Vaughn C. KnowlesHawley W. Lincoln, IVMark D. MatloszSamuel McKnight, Jr.Jody L. PaviglioniteLiza J. Petra*Thomas J. RichardsonJeffrey E. VailetteAnthony A. Valentino* New Corporators in 2015

CORPORATOR EMERITUSH. Logan Page, III

2015 CORPORATE OFFICERSTimothy P. Geelan President & CEO

Robert L. Carmody, 1st EVP Chief Lending Officer

Kyle J. Eagleson, EVP Chief Operating Officer

Heather P. Hackley, EVP Chief Financial Officer & ERM Officer

Lyle Fulton, SVP Commercial Loan Origination Manager

Peter E. Muszynski, SVP Senior Credit & Commercial Loan Admin. Officer

Renee B. Pallenberg, SVP Retail Banking & Marketing Officer

Bette-Lou Rush, SVP Director of Strategic Development & Info. Security

Robyn Westerkamp, SVP Director of Human Resources

Connor Dolan, VP Financial Advisor

Mark Jenusaitis, VP Commercial Loan Officer

Michael D. Paz, VP Commercial Loan Officer

Jennifer Pensa, VP Senior Operations Officer

Janet P. Sandella, VP Retail Lending Officer

Annette H. Strumolo, VP Retail Lending Manager

Steven G. Supernaugh, VP Finance Manager

Anne Tedstone, VP Banking Technology Officer

Christine Beirne, AVP Human Resources Manager

Maria Cusano, AVP Compliance Officer

Richard Davis, AVP Branch Sales & Administration Officer

Michael J. DeBlieux, AVP Secondary Market & Loan Servicing Manager

Lisa LeMonte, AVP Community Development Officer

Bryan J. Mierzejewski, AVP Network Manager

Abigail S. Patrizio, AVP Day-to-Day BSA Officer

Charles (Chip) Poehnert, AVP Residential Sales Manager

Heidi Samuelson, AVP Branch Manager, Main Office

Michael J. Storiale, AVP Digital Banking Manager

Elizabeth Vincenzi, AVP Residential Lending Supervisor

ARIADeborah Abildsoe FounderBrant Walker Vice President

FOR YOU:Checking • Savings • Money Markets • CDs • Retirement Accounts

Conventional Mortgages • Biweekly Mortgages • Adjustable Rate Mortgages

Home Equity Loans and Lines of Credit • Personal Loans • Reverse Mortgages

FOR YOUR BUSINESS:Checking • Savings • Money Markets • CDs • Sweep Accounts

Commercial Real Estate • Commercial Loans • Lines & Letters of Credit

Online Account Management • Merchant Card Solutions • Remote Check Deposit

FOR TOMORROW:1

Investment Planning • 401(k) Plans & Rollovers • Stocks, Bonds & Mutual Funds

529 College Savings Plans • Vantis Life Insurance • Long Term Care Insurance

ARIA Wealth Management – Discretionary Management • TIAA-CREF

FOR CONVIENENCE:Online Banking • Bill Pay • Online Statements • Mobile Deposit

Account Aggregation • Mobile Banking • Text Message Banking

Online Account Open • Online Mortgage Applications

NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCYNOT FDIC-INSURED

NOT GUARANTEED BY THE BANK MAY GO DOWN IN VALUE

GSB does not offer legal advice. You should seek specific advice regarding legal

and tax matters from a qualified attorney.

Select investment and insurance products and services are offered through

INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are

not affiliated.

ARIA is a separate subsidiary of Guilford Savings Bank. ARIA is a registered

investment advisor and makes investment recommendations that involve

products that are not Bank deposits, are not guaranteed by the Bank, and

involve investment risks, including the possible loss of principal.

60Non-Profit

Boards of Directors

60N P fi

$22,000In Higher Education

Scholarships Annually

11,000Volunteer Hours

$13,000In Employee Contributions

Matched by the Bank

$63 MillionOriginated in Commercial

Loans in 2014

15,000Customers

Approximately $162 Million Assets Under Management

Advisement

DozensOf Customizable

Solutions for Customers

$30,000Donated to Local Community

Foundations in 2014

51%Net Income Growth

2013-2014

$228,000Donated to the LocalCommunity in 2014

10Ways to Manage yourMoney from Anywhere

108Dedicated Team

Members

260Community Organizations

Supported

7Branches

Guilford Savings Bank Honored with Home Building Industry Award Guilford Savings Bank has been honored by the Home Builders & Remodelers Association of Connecticut (HBRA) with the 2014 Home Building Industry (HOBI) Award for Best End Loan Package for a Community.

The HOBI Awards is the state’s most prestigious housing industry program, recognizing excellence in new construction, land development, remodeling, sales and marketing, and home financing. Winners are selected by a panel of HOBI Judges with expertise in various aspects of home building. The judges review applications submitted by HBA members and travel the state for several days, touring selected homes and communities.

Leadership Development Program The two year Leadership Development Program continued through 2014 with a variety of sessions designed to combine classroom experience with real world lessons, all while building bonds, enhancing customer service and strengthening an already strong team. The ongoing collegial relationships between the members engaged in the program, and the career coaching relationships developed between Senior Officers matched with the group, continue to add to the richness and depth of the program. The group will complete the program in February 2015.

Deborah Abildsoe Named 2014 Woman of FIRE The Commercial Record named Deborah Abildsoe, President & CEO, Asset Retirement Investment Associates LLC, among its Women of FIRE honorees in 2014. The fourth annual Women of FIRE Awards celebrate the best and the brightest women in the Connecticut FIRE (Finance, Insurance and Real Estate) industry. With the help of Commercial Record readers, a group of judges sorted through dozens of nominations and chose 13 brilliant, innovative leaders to be named this year’s Women of FIRE.

Cheryl Sittnick Recognized as Five Star Mortgage Professional Cheryl Sittnick, Mortgage Originator for Guilford Savings Bank has been selected as a Five Star Mortgage Professional by Connecticut Magazine.

Each year, the magazine receives nominations from consumers who have recently purchased a home to identify award candidates. Honorees are nominated by clients and real estate agents based on customer service, integrity, communication, preparation, attention to detail, and overall satisfaction. The award recognizes the top 4% of mortgage originators in the state of Connecticut.

Anytime, Anywhere.gsb-yourbank.comEqual Housing Lender Member FDIC