b'LETTER FROM THE PRESIDENTAs we begin 2019 it is a great time to reflect on all weve accomplished in 2018 and celebrate those achievements. Some of the key highlights from 2018 include the Bank surpassing the billion dollar mark andgrowing by a record of more than 9.5%. Our financial strength, stability, and responsible growthare admirable, and we continue to be ranked as one of the top banks in Connecticut. We are proud to report that we executed our technology upgrade with little to no interruption toour customers. We now have a state-of-the-art technology platform that will serve as the foundation for many customer enhancements in 2019 and will keep us competitive in the marketplace.We also opened two new branch offices in Waterbury and Stamford. The Stamford branch was Martin G. Morgadodesigned with our branch of the future model: a branch without a teller line with state-of-the-art President and technology. We intend to implement this model in some of our other branches in 2019 and beyond. Chief Executive Officer The Banks involvement in the community remained strong in 2018. The Savings Bank of Danbury Foundation awarded more than $190,000 to 73 agencies or an increase of 6% over the previousyear. The Bank also contributed an additional $433,000 to community organizations for a totalof $623,000.Our commitment to our employees is paramount, and we promote activities that support a positive work environment inside and outside of the Bank. Employee activities included community service, team building and a number of cultural programs. Shifting to 2019, our key objectives are to remain abreast of new technologies; provide high-touch personal service to our customers; put a greater focus on relationship banking; deepen our relationships with customers in our footprint; continue to prioritize innovation and offer a competitive suite of products and services; and enhance the Banks brand in online and offline channels.2019 will be an exciting year! We will be celebrating our 170th Anniversary, and we have a series of special programs that we will unveil throughout the year. The Bank will continue to manage its assets and regulatory agenda while continuing to invest in technology, infrastructure, and talent. We believe these elements are critical to the future success of the Bank. We will also continue to focus on our employees, customers, and community. I would like to thank our Board of Directors, Waterbury Advisory Board, corporators, employees, and all of our customers for your continued confidence in Savings Bank of Danbury. Your commitment and dedication is greatly appreciated.Sincerely, Martin G. Morgado President and Chief Executive Officer 2'