b'a letter from our presidentiSTEPGUIDING COUNTRY BANK SINCE 1850missionWhen the founding fathers ofHarding Green in Kelley Square, containing forty-eight market Country Bank formed the Bankrate apartments along with a public food market for local vendors; in 1850, they envisioned thatand the development of first class office space with underground the role of the local communityparking at 288 Grove Street. As part of its ongoing Worcester bank is to assist hard-workingexpansion, driven in part by its Business Development Office at 315 STATEMENT residents in providing for theirMain Street, the Bank partnered with the Worcester Red Sox as a families, growing their businesses,Founding Partner as the team prepares for its move to Worcester achieving their financial dreamsin 2021. The Banks partnership complements its 2017 partnering and enriching the local community.with the Worcester Railers Hockey Team as a Founding Sponsor.Although more than one hundredThroughout 2018, iSTEP continued to serve as the compass for Our mission is to grow mutually beneficial relationshipsand sixty-eight years haveCountry Banks community outreach and support. During the year, the passed since 1850, CountryBank donated over $1,000,000 to more than four hundred and fifty with our customers, community and staff. Banks founding principles andlocal organizations. Some of the recipient organizations included: the core values continue to guideSpecial Olympics, Hearts for Heat, the Salvation Army, the YMCA of its success. Today, we refer toGreater Springfield, the Friends of the Homeless, Provision Ministry, them as iSTEP: integrity; Service;Christinas House, the Mustard Seed, and St. Johns Food Program Teamwork; Excellence; and Prosperity.iSTEP provides the guidingfor the Poor, along with numerous others. The extent of the Banks light for the Banks business decisions, internal and external customerphilanthropy and community involvement is so much more than interactions, community support and its financial foundation. Itsfinancial. On the National Day of Giving, members of the Banks the contemporary version of traditional valuesvalues that are sobusiness community joined the staff and Board as they teamed with ingrained in the Country Bank way of life that the five conferencethe Coalition for the Homeless and built fifty beds for the nonprofit rooms at the Banks corporate office each reflect the name of a coreorganization A Bed for Every Child. Suffice it to say, theres truly value including a definition, chosen by the staff, etched on the wall. nothing more rewarding or heartwarming than knowing that a few hours of teamwork will impact the life of a helpless, loving child. The staff-driven Country Bank Employee Charitable Giving Program iNTEGRITY:wisdom is knowing the right path to raised more than $30,000 through jean days, bake sales and raffles take, integrity is taking it.and volunteered over 1,100 hours of personal time in support of relationships matter: SERVICE: customers may forget what you said, but theyllcommunity organizations. They helped pack backpacks with lifes basic necessities for the homeless, served meals to children at the never forget how you made them feel. Boys and Girls Club and the Ronald McDonald House, helped build a TEAMWORK:simply stated, its less me and more we. house for Habitat for Humanity and biked 106 miles from Springfield to Boston in honor of fallen police, firefighters and first responders We believe that relationships are lifes most valuable EXCELLENCE: he gradual result of always striving toin the Ride to Remember. At Country Bank, we do more than talk tdo better. the talk; we walk the walk, as evidenced by our slogan, we think investments. Its been our philosophy for one hundred andgiving back is the most cutting edge thing a bank will ever do!PROSPERITY:positive thinking and positive attitudesGuided by iSTEP, 2018 was a rewarding year for Country sixty-eight years and counting, and its why were still goingattract prosperity, peace and happiness. Bank, its customers, community and staff, and we look In 2018, applying the principles of iSTEP resulted in a highly forward to an equally rewarding year in 2019!strong. It means we always go above and beyond for oursuccessful year with record-breaking earnings! Net income increased more than $2,000,000 from the preceding year to $12,852,800 due VERY TRULY YOURS,customers and the communities we serve; and we always goto increased loan balances, enhanced operating efficiencies andthe Tax Reform Act of 2018. Total assets increased to $1,624,435,200 from $1,586,090,200 at the end of 2017, while total loans increased the extra mile to make things right, even when things dontto $1,240,420,800, representing 76% of total assets. Deposit balances increased to $1,083,181,700; a $58,317,200 increase from always go smoothly. It also means we never, ever, skimp onthe preceding year. Capital, the bellwether of a Banks financial strength and its benchmark for future growth, increased to 14.06%PAUL F. SCULLYof total assets, maintaining Country Banks esteemed position manners, even when life is moving a million miles an hour. as one of the higher capitalized banks in the Commonwealth. PRESIDENT & CEOLoan growth during the year was fueled by new loan originations of $298,000,000 comprised of $128,824,000 of residential mortgages and $169,218,000 of commercial loans, including the financing of several notable projects in the transforming market of downtown Worcester. These highly visible projects included: the recapitalization of 100 Front Street/Mercantile Center; construction financing of 2|Country Bank 3'