Mutuality and the Difference It Makes for Dollar Bank Customers. Board Of

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Mutuality and the Difference it Makes for Board of Directors Dollar Bank Customers. Esther L. Barazzone, Ph.D. President Emerita Dollar Bank is the largest independent mutual bank in the nation.* Chatham University Many people do not know what being a mutual bank means or why that could be meaningful for them. Raymond T. Betler President & CEO Dollar Bank is not owned by stockholders. We manage this Wabtec Corporation institution to develop long-term relationships with our depositors and loan customers. We do not manage our daily activities for Robert E. Blackham, Atty. quarterly dividends paid to stockholders. Partner, Firm President/Chairman Roetzel & Andress As a bank, we believe that underwriting formulas are not the best Cleveland, OH way to understand a customer’s business. Through thoughtful interaction, we strive to learn the uniqueness of each of the customers Audrey Dunning we serve. That is how we develop long-term relationships and CEO we do it because it is what’s best for our customers. Dollar Bank Summa Representatives don’t work on commission. Therefore, they don’t try to sell services and products that customers don’t need or want. Kim Tillotson Fleming Chairman & CEO We recognize that our strength and stability corresponds directly Hefren-Tillotson, Inc. with the strength and stability of our customers. Depositors, Thomas A. Kobus borrowers, business owners… we are in this together and that is EVP/ CFO & Treasurer probably not something you’ve heard from your banker before. Dollar Bank, FSB In fact, money raised through our depositors is reinvested locally in the communities we serve. Many banks claim to want a lasting James J. McQuade relationship with their customers. At Dollar Bank, we’ve lived this President & CEO philosophy every day since 1855. Dollar Bank, FSB During the first half of the 2017 fiscal year, Dollar Bank’s financial Jeffrey Morrow statement reflects its continued strength and growth as a full service Former EVP financial institution meeting the banking needs of our community Dollar Bank, FSB for more than 160 years. Our core capital amounted to $909 million, or 11.51% of our average total assets. Robert P. Oeler Chairman of the Board As a mutual institution, Dollar Bank’s capital strength is the result Dollar Bank, FSB of prudent management. We have been consistently rated as well capitalized by government regulators, representing the highest Holly W. Sphar, Jr. category of financial soundness. The growth of our operation is the Chairman result of serving the needs of our customers, versus stock based Shore Corporation financial institutions serving the needs of shareholders. Samuel J. Stephenson, CPA Dollar Bank’s ongoing commitment to our customers has Former Firm Director differentiated us and is central to every Dollar Bank employee’s Baker Tilly Virchow Krause LLP approach to banking. & Former Partner, ParenteBeard Roger E. Wright Former VP, CNG & Former President, Peoples Natural Gas

James J. McQuade A copy of Dollar Bank’s audited financial statement President & CEO is available by writing to the Treasurer: Dollar Bank Accounting Department Three Gateway Center, 8 North Pittsburgh, PA 15222 *Source: fdic.gov, Mutual (non stock) Savings Institutions by Total Assets as of 3/31/17. 2017 Semi-Annual Statement of Condition May 31, 2017 ($ in thousands) ASSETS

Cash and Short-Term Investments...... $ 296,036 Investment Securities Available For Sale...... 914,622 Other Investment Securities...... 83,091 Total Cash and Investment Securities...... $ 1,293,749 Federal Home Loan Bank Stock...... 27,664

Loans Receivable: Mortgage and Home Equity Loans Residential...... 5,058,937 Other Mortgages...... 888,255 Total Mortgage and Home Equity Loans Before General Valuation Allowances 5,947,192 Non-Mortgage Loans Commercial...... 576,221 Consumer...... 139,871 Total Non-Mortgage Loans Before General Valuation Allowances...... 716,092 Total Loans Before General Valuation Allowances...... 6,663,284 General Valuation Allowances...... (42,458) Total Loans Receivable (Net)...... 6,620,826 Office Premises and Equipment...... 95,655 Good Will...... 523

Other Assets: Accrued Interest Receivable...... 19,960 Accounts Receivable and Miscellaneous...... 46,052 Total Other Assets...... 66,012 TOTAL ASSETS...... $ 8,104,429

LIABILITIES

Deposits: Checking and Checking With Interest...... $ 1,723,348 Savings...... 3,476,478 Certificates and IRA/Keogh...... 1,112,318 Total Deposits...... 6,312,144 Borrowings...... 824,190

Other Liabilities: Escrows...... $ 43,353 Accrued Interest Payable and Other Liabilities...... 28,546 Total Other Liabilities...... 71,899 TOTAL LIABILITIES...... $ 7,208,233

CAPITAL

Retained Earnings...... 896,196 TOTAL LIABILITIES AND CAPITAL...... $ 8,104,429 Regulatory Capital

($ in thousands) Capital at Regulatory Excess 5/31/2017 Requirement Capital Tier I Leverage (Core) Capital $909,156 $316,056 $593,100 Tier I Risk-Based $909,156 $303,557 $605,599 Total Risk-Based $953,581 $404,742 $548,839