Mutuality and the Difference it Makes Board of Directors for Dollar Bank Customers. Esther L. Barazzone, Ph.D. President Emerita Many people do not know what being a mutual bank means or why Chatham University that could be meaningful for them. Raymond T. Betler Dollar Bank is not owned by stockholders. We manage this Former President & CEO institution to develop long-term relationships with our depositors Wabtec Corporation and loan customers. We do not manage our daily activities for quarterly dividends paid to stockholders. Robert E. Blackham, Atty. As a bank, we believe that underwriting formulas are not the best Firm President/Chairman way to understand a customer’s business. Through thoughtful Roetzel & Andress, LPA interaction, we strive to learn the uniqueness of each of the customers Cleveland, OH we serve. That is how we develop long-term relationships and we do it because it is what’s best for our customers. Dollar Bank Audrey Dunning Representatives don’t work on commission. Therefore, they don’t Former CEO, Summa try to sell services and products that customers don’t need or want. Kim Tillotson Fleming We recognize that our strength and stability corresponds directly Chairman & CEO with the strength and stability of our customers. Depositors, Hefren-Tillotson, Inc. borrowers, business owners… we are in this together and that is probably not something you’ve heard from your banker before. Thomas A. Kobus In fact, money raised through our depositors is reinvested locally EVP/ CFO & Treasurer in the communities we serve. Many banks claim to want a lasting Dollar Bank, FSB relationship with their customers. At Dollar Bank, we’ve lived this philosophy every day since 1855. James J. McQuade President & CEO During the first half of the 2019 fiscal year, Dollar Bank’s financial Dollar Bank, FSB statement reflects its continued strength and growth as a full service financial institution meeting the banking needs of our community Jeffrey Morrow for more than 160 years. Our core capital amounted to over $1.04 Former EVP billion, or 12.12% of our average total assets. Dollar Bank, FSB As a mutual institution, Dollar Bank’s capital strength is the result Robert P. Oeler of prudent management. We have been consistently rated as well capitalized by government regulators, representing the highest Chairman of the Board category of financial soundness. The growth of our operation is the Dollar Bank, FSB result of serving the needs of our customers, versus stock based financial institutions serving the needs of shareholders. Samuel J. Stephenson, CPA Former Firm Director Dollar Bank’s ongoing commitment to our customers has Baker Tilly Virchow Krause LLP differentiated us and is central to every Dollar Bank employee’s & Former Partner, ParenteBeard approach to banking. Leila L. Vespoli Former EVP, Chief Legal Officer First Energy Corp. Cleveland, OH Roger E. Wright James J. McQuade Former VP, CNG & Former President & CEO President, Peoples Natural Gas A copy of Dollar Bank’s audited financial statement is available by writing to the Treasurer: Dollar Bank Accounting Department, Three Gateway Center, 9 West, Pittsburgh, PA 15222 2019 Semi-Annual Statement of Condition May 31, 2019 ($ in thousands) ASSETS Cash and Cash Equivalents ................................................................................................ $ 171,362 Investment Securities Available For Sale .......................................................................... 1,015,052 Investment Securities Held to Maturity ............................................................................ 52,229 Total Cash and Investment Securities .................................................. $ 1,238,643 Investment in Federal Home Loan Bank Stock ................................................................ 31,797 Loans Receivable: Mortgage and Home Equity Loans Residential ...................................................................................................... 5,168,322 Other Mortgages............................................................................................ 1,059,659 Total Mortgage and Home Equity Loans .............................................................. 6,227,981 Non-Mortgage Loans Commercial .................................................................................................... 711,928 Consumer ....................................................................................................... 248,832 Total Non-Mortgage Loans .................................................................................... 960,760 Total Loans ............................................................................................ 7,188,741 Allowance for Loan and Lease Losses ................................................................... (47,555) Net Loans Receivable ........................................................................... 7,141,186 Premises and Equipment .................................................................................................... 105,192 Goodwill .............................................................................................................................. 445 Other Assets: Accrued Interest Receivable ......................................................................... 25,096 Other Assests ................................................................................................. 43,587 Total Other Assets ................................................................................. 68,683 TOTAL ASSETS ............................................................................................................... $ 8,585,946 LIABILITIES Deposits: Checking ......................................................................................................... $ 1,979,858 Savings ........................................................................................................... 3,247,206 Certificates and Other Deposits .................................................................... 1,511,906 Total Deposits ........................................................................................ 6,738,970 Borrowings .......................................................................................................................... 738,876 Other Liabilities: Advance Payments by Borrowers for Taxes and Insurance ........................ $ 43,912 Accrued Interest Payable and Other Liabilities ........................................... 38,506 Total Other Liabilities ........................................................................... 82,418 TOTAL LIABILITIES ..................................................................................................... $ 7,506,264 CAPITAL Total Surplus ...................................................................................................................... 1,025,682 TOTAL LIABILITIES AND CAPITAL ....................................................................... $ 8,585,946 Regulatory Capital ($ in thousands) Capital at Regulatory Excess 5/31/2019 Requirement Capital Tier I Leverage (Core) Capital $1,039,155 $342,963 $696,192 Tier I Risk-Based $1,039,155 $332,644 $706,511 Total Risk-Based $1,089,518 $443,525 $645,993 Equal Housing Lender. Member FDIC. Copyright © 2019, Dollar Bank, Federal Savings Bank. MSC470_19.