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SERVING CUSTOMERSSUPPORTING COMMUNITIES

2015ANNUAL REPORT

Presid

ent’s Messag

e Just as our

customerssupport us,

North Brookfield Savings Banksupports our local

communities.

“

”

Serving Customers, Supporting Communities has been the deep-rooted focus of North Brookfield Savings Bank since we opened our doors in 1854. We remain true to the original mission of the Bank by continually making a difference for our customers and in our communities every day.

It’s hard to believe another year has gone by, but North Brookfield Savings Bank continues to grow and 2015 was another successful year. We generated growth in loans and deposits and we remain a well-capitalized bank. The Business Center in Ware was officially opened and now complements our state-of-the-art retail bank branch at that location.

Each year, we continue to enhance our product offerings at NBSB. One of our highlights in 2015 was participating in the Federal Home Loan Bank of Boston’s Equity Builder Program, which provides grants to eligible homebuyers with down payment and closing cost assistance. Additionally, the Bank was one of the first to participate in the Mass Clean Energy Solar Loan Program, and the response has been positively overwhelming. In the coming year, we look forward to introducing mobile banking for the convenience of our customers.

Our success reflects the importance we place on making a positive impact on our customers and in our communities. Just as our customers support us, North Brookfield Savings Bank supports our local communities. We believe to be successful all of us must work together and support each other as we meet today’s challenges.

To Our Valued

Customers & Community Members:

We often hear the phrase “buy local” and at NBSB we embrace that philosophy through our charitable efforts. Our donation and fundraising activities are centered on the local food pantries, fuel assistance agencies, literacy programs and youth programs. In fact, you will see many of them highlighted on our community pages. The Officers and employees of NBSB dedicate many volunteer hours for community outreach. I offer them my sincerest thank you for their passion and commitment to serve our communities.

At NBSB we strive to help our local communities and businesses grow and prosper. We help customers meet their financial goals, whether that is saving for the future, purchasing a home or investment property, refinancing a mortgage, purchasing a car, or funding a business.

I encourage you to visit us at any of our convenient locations. We are here ready to serve you - whether in person, online and soon from your mobile phone. The key difference at North Brookfield Savings Bank is that you are doing business with people you know. We make decisions locally, invest our customer’s deposits locally and we believe in our communities.

I thank you, our customers, our communities, our employees, and the Board of Trustees, for another successful year. I can’t wait to see what the future has in store!

Donna L. BoulangerPresident & Chief Executive Officer

Our C

ustom

ers

Above & Beyond toServe Our CustomersAt North Brookfield Savings Bank, we are committed to personally serving all of our customers during every transaction, no matter how large or small. Technology has become a valuable banking tool, but we will never substitute technology for the personal banking experience.

North Brookfield Savings Bank values making connections and building relationships with our customers. We take the time to listen and to find the right products or services that will fit their needs. When a customer calls about online banking, visits a branch to open a Free Checking account, needs to acquire financing for a car, or visits our Mortgage Center to purchase their first home - we strive to find them exactly what they are looking for.

We provide above and beyond service each and every day because at North Brookfield Savings Bank every customer interaction is important to us.

Jennifer Plassmann, Ware Assistant Branch Manager and Scott Farr, Universal Teller assist customers at the renovated and restored Ware branch. The 40 Main Street branch location is a state-of-the-art facility and has an innovative, contemporary setting. Offices and hallways contain partial glass walls to create a welcoming, open and bright atmosphere. The branch has an improved, technology-enhanced teller line, better able to streamline everyday teller line transactions and improve the customer’s banking experience.

Adam Gillette, East Brookfield Branch Manager with Jeff and Justyne Smith, NBSB customers and owners of Bay Path Golf Course in East Brookfield.

Nancy Roy, NBSB customer and owner of Interactive School House in Three Rivers with Kathy Higgins, Palmer Branch Manager and Stephanie Skaza, Three Rivers Assistant Branch Manager.

Caitlin Burns, Junior Underwriter and Donna Tiso, SVP/Retail Lending Manager helped Greg Morse and Chuck Atkins finance the restoration of their beautiful Victorian home in West Brookfield.

Jim Walling, Derek Hannah and Cassandra Walling (not shown), owners of Firesafe Chimney Services with their employees Ace Fontaine and Nick Elie, visited Jennifer Plassmann, Ware Assistant Branch Manager and J. Rylee Hatt, Ware Branch Manager to get assistance with their NBSB accounts.

Tim Kurty, NBSB customer and owner of Mill Valley Golf Links in Belchertown, gets assistance with his business accounts from Warren Izyk, Belchertown Branch Manager.

We Make Your Dream Home a RealityFinancing that Works for Our Customers

Bruce and Deb Arnold financed their Nissan Pathfinder with the help of Tammy Gustafson, North Brookfield Assistant Branch Manager. Their adorable chocolate lab Charlie loves to go on adventures in their new ride.

Our B

usinesses

Building StrongBusiness PartnershipsWhen you partner with North Brookfield Savings Bank’s Business Center, you can be confident that you are teaming up with a dependable financial institution that will be committed to understanding your unique business needs.

Our Business Center Team is comprised of experienced commercial lenders who will meet on your terms and will work closely with you to create customized business solutions that will grow your business successfully. You will find exactly what you are looking for to ensure your business thrives with our comprehensive suite of high quality business products and convenient banking services. We are proud to make our decisions locally and quickly because we understand that your time is valuable.

At North Brookfield Savings Bank, we build strong partnerships that support the success of our business communities.

Team up with North Brookfield Savings Bank’s Business Center

Shown left to right are Jim Algie, SVP/Commercial Loan Officer; Linda Cunningham, Commercial Administrative Assistant; Tony Piermarini, SVP/Senior Commercial Loan Officer; Pamela Kozlik, Commercial Credit Analyst; and Rick Egan, VP/Commercial Loan Officer.

Glenn and Genevieve Stillman, owners of the produce and plant farm Stillman’s Farm in New Braintree with Rick Egan, VP/Commercial Loan Officer.

Matt and Sheri Flandreau, on-site owners of The Goddard School for Early Childhood Development in Auburn, with Jim Algie, SVP/Commercial Loan Officer and Tony Piermarini, SVP/Senior Commercial Loan Officer.

Bill and Elizabeth Bromage owners of Paint the Town, Inc. in Three Rivers, Jim Algie, SVP/Commercial Loan Officer, and Josh Bromage, Production, Product Development and Shipping of Paint the Town, Inc.

In 2015, North Brookfield Savings Bank held a ribbon cutting ceremony for the newly renovated Business Center conveniently located on Route 9 in Ware. The ceremony took place during the NBSB Renovation Celebration which marked the completion of renovations at the Ware Branch as well as the official opening of the Ware NBSB Business Center location.

Shown at the ceremony were (left to right) M. Richard Pluta, NBSB Trustee; Lewis Iadarola, Ware Zoning Board of Appeals Chairman; John Carroll, Ware Selectmen; Tony Piermarini, NBSB Senior VP/Senior Commercial Loan Officer; Donna Boulanger, NBSB President & CEO; Paul Opalinski, Ware Community Development Authority Member; William Braman, Ware Business & Civic Association President; Tracy Opalinski, Ware Community Development Authority Member; and Leonard Weake, Quaboag Hills Chamber President.

Renovation CelebrationThe North Brookfield Savings Bank Business Center in Ware

Scott and Kate Norrie, owners of Howe Lumber in East Brookfield with Tony Piermarini, SVP/Senior Commercial Loan Officer and Rick Egan, VP/Commercial Loan Officer.

Rick Egan, VP/Commercial Loan Officer and Tonya Laird, Branch Manager with June Glidden, NBSB customer and owner of June’s Bakeshop in New Braintree.

Our C

om

munities

Stronger Togetherwith Our CommunitiesNorth Brookfield Savings Bank works diligently to make a positive, lasting and meaningful impact in all of our local communities. We offer support to local organizations through various financial contributions and sponsorships and fund scholarships to local graduating high school seniors. We host annual in-branch fundraisers, invite the community to have fun at bank organized events, and employees volunteer many hours for community outreach.

The enthusiasm and commitment displayed by NBSB employees to our local communities is unwavering and is further proof of the firm partnership we share with these communities we serve. They continue to give back year after year to their communities with their generous individual contributions and volunteerism.

Your communities are our communities. We all work and live in them together. North Brookfield Savings Bank knows that we are stronger together and that in order for us all to thrive tomorrow, we need to invest and support our communities today.

Patty Ostrout, SVP/Retail Banking presented a $500 check to support adult education programs at The Literacy Project Ware Classroom to Judith Roberts, Executive Director, along with staff and students.

NBSB President and CEO Donna Boulanger along with other mentors from NBSB assisted North Brookfield Elementary School students such as Ryan Brown Herraiz and Ty Babineau at the TREPS Business Plan Workshop.

Employees of NBSB dressed as the “NBSB Money Bees” handed out fun giveaways to parade goers along the “BEEutiful” themed Belchertown Fair Parade route.

During a field trip, West Brookfield Branch Manager Andrew Leighton taught Natalia Madry and other students of the NBSB Quaboag High School Financial Literacy class about safe deposit boxes, a secure place to store valuables and important documents. North Brookfield Savings Bank’s financial literacy classes educate students on various banking fundamentals and finances. It covers topics such as balancing a checkbook, how to open a bank account, setting financial goals, as well as other banking essentials.

A Community InvestmentSupporting & Fostering Financial Literacy

J. Rylee Hatt, Ware Branch Manager, Adam Gillette, East Brookfield Branch Manager, and Laurie Lacaire, Teller proudly represented NBSB at the East Brookfield Independence Day celebration.

NBSB President and CEO Donna Boulanger and NBSB Chairman of the Board Roland Gauthier, presented a $2,500 check to Laurance Morrison, QCC Foundation President and Dr. Gail Carberry, QCC President for the Quinsigamond Community College’s RISE Program.

Patty Ostrout, SVP/Retail Banking presented a $500 check to Mrs. Mary Lou Callahan, Palmer High School Principal to support a compelling leadership presentation for students by Houston Kraft, Motivational Speaker and Leadership Trainer.

NBSB was proud to team up once again with Bell & Hudson to sponsor and volunteer at the Quaboag Valley Relay for Life Survivors Dinner which honors cancer survivors.

Consolidated Balance Sheet

DECEMBER 31 2015 2014

ASSETSCash and Due from Bank 8,725,229 10,885,640

Investment Securities

Available for sale, at fair value 53,874,000 58,050,000

Held to maturity, at amortized cost 17,123,000 20,186,000

Real Estate Loans 116,868,896 112,618,610

Commercial Loans 48,678,762 38,461,332

Consumer Loans 2,186,714 2,429,604

Banking Premises & Equipment 6,991,635 5,816,822

Federal Home Loan Bank Stock 1 ,661,500 1,650,900

Federal Reserve Bank Stock 630,250 630,850

Other Assets 13,459,052 1 3 , 9 1 1 , 1 2 1

TOTAL ASSETS 270,199,038 264,640,879

LIABILITIES AND SURPLUS

Savings and Term Deposits 1 6 1 ,587,951 162,065,480

Checking, NOW and Demand Deposits 48,310,834 43,967,774

Mortgagors’ Escrow Accounts 674,438 621 ,638

FHLB Advances 20,500,000 20,500,000

Other Liabilities 5,612,774 4,927,853

TOTAL LIABILITIES 236,685,997 232,082,745

TOTAL EQUITY CAPITAL 33,513,041 32,558,134

TOTAL LIABILITIES AND EQUITY CAPITAL 270,199,038 264,640,879

OFFICERS

President & CEODonna L. Boulanger

Senior Vice PresidentJames R. AlgieMargaret I. CarrPatricia A. OstroutAnthony J. PiermariniPatricia H. ShermanDonna M. TisoVice PresidentCynthia G. AyersPatricia A. BernardJoseph R. DunnRichard B. Egan, IIJay W. Jil

Assistant Vice PresidentTammy MartinCaitlin M. O’Connor

EMPLOYEES

Mary AntinovitchChris BarnesJudy BearseRachel BeaudryJennifer BerthiaumeAnn BradyCaitlin BurnsLinda CunninghamJoseph DeadyAshlyn DrostAshley DuBrinoSamantha FarmerScott FarrLogan FullamScott GarrandAdam GilletteEileen GrahamKatelyn GrangerKathleen GrigasDerek GrueterLeslie GuertinTammy Gustafson

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 R. Chesson, Jr. Louis A. Petruzzi, Jr.Robert E. Pillsbury

CORPORATORS

Trustees and the following:

Mark AdamsMichael AudetteMatthew G. BenvenutiDamien BerthiaumeJessica BettencourtRichard BonnayerElaine BooneChristine BuzzellHarold Chesson, Jr.Harold Chesson, IIIAgnes DavisKevin M. DonahuePeter A. DupellWayne GranatRichard Greene

Jennifer HattKathy HigginsJanel HolmesWarren IzykDarlene JarnaganVirginia JensenRenee JurczykPamela KozlikLaurie LacaireTonya LairdMorgan LairdSamantha LavalleyAndrea LedouxAndrew LeightonRenee LetendreYvonne LittleRaymond McKayEllen MulherinKelsey Anne NicholsGabrielle OldsMaryMargaret O’SheaFelecia PaquinLynn PionJennifer PlassmannTheresa RuizBrian SardelisJessica ShimanskyJessica SimmoneauMegan SinclairStephanie SkazaJenny SkoczylasRachael SlozakPaula St. JohnWendy SwallowNicole SyriacJean SzelaPaula TankersleyTyler TrainorJean VarleyDebra WarmanSteven WarmanMorgan Westerback

William D. HerrickPriscilla B. HoweBrenda HowlandJack Hulmes, Jr.Robert HuntJoseph JannetteRobert LaFlammeAndrew Leach, Sr.Vincent J. LucchesiJohn LukaskiewiczErnest Messier, Jr.Scott NorrieRobert PaquetJason PaquetteRichard M. ParsonsGail PiatekEdward ReedJames St. AmandNancy SalemDavid SnayMichelle TerryMichael ToomeyGene R. VarneyRichard VarneyMaureen Wesolaski

Honorary Corporators Matthew C. BenvenutiRobert Bishop Claire BothwellTheresa CuddyLouis Grace, MDJune KlemJohn KrusellJohn MilksLouis Petruzzi, Jr.Robert PillsburyLouise Woodard