Mutuality and the Difference it Makes for Board of Directors 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 institution to develop long-term relationships with our depositors President & CEO and loan customers. We do not manage our daily activities for Wabtec Corporation quarterly dividends paid to stockholders. Robert E. Blackham, Atty. As a bank, we believe that underwriting formulas are not the best Partner, Firm President/Chairman way to understand a customer’s business. Through thoughtful Roetzel & Andress 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 SVP, CGI try to sell services and products that customers don’t need or want. Former CEO, Summa We recognize that our strength and stability corresponds directly Kim Tillotson Fleming with the strength and stability of our customers. Depositors, Chairman & CEO borrowers, business owners… we are in this together and that is Hefren-Tillotson, Inc. probably not something you’ve heard from your banker before. In fact, money raised through our depositors is reinvested locally Thomas A. Kobus in the communities we serve. Many banks claim to want a lasting EVP/ CFO & Treasurer relationship with their customers. At Dollar Bank, we’ve lived this Dollar Bank, FSB philosophy every day since 1855. James J. McQuade During the first half of the 2018 fiscal year, Dollar Bank’s financial President & CEO statement reflects its continued strength and growth as a full service financial institution meeting the banking needs of our community Dollar Bank, FSB for more than 160 years. Our core capital amounted to $969 million, or 11.54% of our average total assets. Jeffrey Morrow Former EVP As a mutual institution, Dollar Bank’s capital strength is the result Dollar Bank, FSB of prudent management. We have been consistently rated as well capitalized by government regulators, representing the highest Robert P. Oeler category of financial soundness. The growth of our operation is the Chairman of the Board result of serving the needs of our customers, versus stock based Dollar Bank, FSB financial institutions serving the needs of shareholders. Samuel J. Stephenson, CPA Dollar Bank’s ongoing commitment to our customers has Former Firm Director differentiated us and is central to every Dollar Bank employee’s Baker Tilly Virchow Krause LLP approach to banking. & Former Partner, ParenteBeard Roger E. Wright Former VP, CNG & Former President, Peoples Natural Gas James J. McQuade A copy of Dollar Bank’s audited financial statement President & CEO is available by writing to the Treasurer: Dollar Bank Accounting Department Three Gateway Center, 8 North Pittsburgh, PA 15222 2018 Semi-Annual Statement of Condition May 31, 2018 ($ in thousands) ASSETS Cash and Short-Term Investments .................................................................................... $ 246,092 Investment Securities Available For Sale .......................................................................... 927,453 Other Investment Securities ............................................................................................... 65,867 Total Cash and Investment Securities .................................................. $ 1,239,412 Federal Home Loan Bank Stock ........................................................................................ 28,194 Loans Receivable: Mortgage and Home Equity Loans Residential ...................................................................................................... 5,187,457 Other Mortgages............................................................................................ 981,108 Total Mortgage and Home Equity Loans Before General Valuation Allowances 6,168,565 Non-Mortgage Loans Commercial .................................................................................................... 612,284 Consumer ....................................................................................................... 180,555 Total Non-Mortgage Loans Before General Valuation Allowances ..................... 792,839 Total Loans Before General Valuation Allowances ............................. 6,961,404 General Valuation Allowances ................................................................................ (46,904) Total Loans Receivable (Net) ............................................................... 6,914,500 Office Premises and Equipment ......................................................................................... 100,864 Good Will ............................................................................................................................ 497 Other Assets: Accrued Interest Receivable ......................................................................... 22,244 Accounts Receivable and Miscellaneous ...................................................... 56,857 Total Other Assets ................................................................................. 79,101 TOTAL ASSETS ............................................................................................................. $ 8,362,568 LIABILITIES Deposits: Checking and Checking With Interest ......................................................... $ 1,931,874 Savings ........................................................................................................... 3,353,107 Certificates and IRA/Keogh .......................................................................... 1,311,150 Total Deposits ........................................................................................ 6,596,131 Borrowings .......................................................................................................................... 741,431 Other Liabilities: Escrows .......................................................................................................... $ 45,211 Accrued Interest Payable and Other Liabilities ........................................... 28,206 Total Other Liabilities ........................................................................... 73,417 TOTAL LIABILITIES ..................................................................................................... $ 7,410,979 CAPITAL Retained Earnings ............................................................................................................... 951,589 TOTAL LIABILITIES AND CAPITAL .......................................... $ 8,362,568 Regulatory Capital ($ in thousands) Capital at Regulatory Excess 05/31/2018 Requirement Capital Tier I Leverage (Core) Capital $969,445 $335,879 $633,566 Tier I Risk-Based $969,445 $317,852 $651,593 Total Risk-Based $1,018,897 $423,802 $595,095 Equal Housing Lender. Member FDIC. Copyright © 2018, Dollar Bank, Federal Savings Bank. MSC523_18.