2019 ANNUAL REPORT

Delivering Our Values Through The Character Of Our People

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Andrew Silsby - President & CEO - KSB Employee Since 1993 - KSB President & CEO Since 2015

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“I’ve been a part of Kennebec Savings Bank’s proud tradition for 26 years, five of which I’ve been honored to serve as

president & CEO. As I look forward to celebrating the Bank’s 150th anniversary in 2020, in this Annual Report I am pleased to reflect on our achievements in

2019. It was a year that saw us more committed than ever to the values that have helped make us Maine’s

most uniquely successful community bank.

My thanks to all of you who have shared in our success this past year, and all the years you’ve been part of

Kennebec Savings Bank.”

The Best Values stay close to home Since 1870, Kennebec Savings Bank has been building success in a familiar way: nurturing relationships to help our neighbors buy homes, expand businesses, build careers, find retreats, see

the world — in short, live their best possible lives.

Working and banking together, we’ve become the 10th largest Maine based bank by staying true to the values that have defined our success for generations. For each and every one of us, that

means taking care of customers, taking pride in working together as neighbors helping neighbors and sharing our success by giving back to the communities we serve.

In this 2019 Annual Report, we celebrate those familiar values, along with some of the familiar faces who have been proud to live, work and bank with you, right here at home.

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employees and families coming together at the 2019 walk for hope

Kennebec Savings Bank was formed

March 19, 1870 following an act signed into law by

Governor Joshua Chamberlain.

150 years Of Service To

Our Communities

5 Locations

$1.16 billion In Assets

10TH largest Maine-Based Bank

$1 million In Community

Dividends In 2019

-Pam Kimball - Head Teller, Augusta - Employee Since 1993 Community Involvement - Father’s Guardian with Honor Flight

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“I’ve always felt that banking is really about taking care of people. In 26 years, I’ve seen couples get married, have kids and watched those kids graduate. And every year we see

the snowbirds who love to come back and see familiar faces. Tellers are often the first people our customers see when they come in to a branch, and we take that responsibility seriously. We are reinforcing the quality

of service and giving it that personal touch.”

People TakingCare of People

In a century and a half, much has changed in the banking business — but our commitment to delivering superior service to each and every one of our customers remains the bedrock of all we do here at Kennebec Savings Bank.

We know that pairing the latest technology with local, personal service has helped to make Kennebec Savings Bank a top Maine bank. We are proud to offer a full suite of personal and business banking services designed to help individuals grow and prosper and business banking partnerships committed to improving the quality of life for entire communities.

From a friendly smile that greets you at the drive-thru or inside one of our branches to expert lending and financial management help from our

industry-leading team, you can depend on the team at Kennebec Savings Bank to treat you like part of our family. For many of us who have lived and worked here our whole lives, you truly are.

Bank employee Cecile Bouffard is pictured here at the drive-up window in 1959.

2019 Awards

Forbes Best in State Bank

icba National Community Bank Service Award

Winner

icba Ranked 4th for consumer and mortgage lending for banks $1 Billion or more

Best of the Best Kennebec Journal and

Morning Sentinel

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Dave Roy - Sr. VP & Chief Risk Officer - KSB Employee Since 1996

Community Involvement - Mid-Maine Chamber of Commerce - Central Maine Youth Hockey

“Growing up in Waterville, I’ve seen a lot of changes. I’m proud of the Bank’s

commitment to this community -- whether its providing a loan to help launch a new business

or donating to a community project, we’re almost always at the table. We need to help create a vibrant

economy not just for the sake of growth, but for everyone’s wellbeing.”

NeighborsHelping Neighbors Kennebec Savings Bank is a Bank built on relationships — with our customers, our employees and with the communities we serve. In sharing our values and working together towards common goals, we are committed to making life better every day, while creating a future of shared stability and prosperity.

As a mutual organization and proud supporter of local businesses, we believe it is our mission to positively impact the quality of life right here in our own communities. From helping to revitalize the main streets and downtowns of Augusta, Waterville, Winthrop, Gardiner and Hallowell, to expanding to bring our unique brand of personal banking to Freeport, we never stop working to increase the prosperity and vibrancy of Maine’s most livable towns and cities. After all, we’re proud to live, work and play in these great places, too.

The Waterville location held a grand opening following a major expansion project in 1996.

Working To Preserve Our Communities

In 2015, the Bank helped the Kennebec Land Trust purchase Howard Hill

in Augusta by providing both commercial financing and a corporate donation to the

cause. Howard Hill, the wooded backdrop to the Maine State House, is a large and diverse

natural area in the middle of Augusta.

The property is crisscrossed by an informal network of old carriage and woods roads

that provide expansive views over the State House and the Kennebec River Valley. It had been a goal of the Kennebec Land Trust and many others to acquire and preserve this land since the mid 1970s.

On October 10, 2019, the property was officially opened and

dedicated to public for its use.

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Linsey Gervais - Human Resources Coordinator - KSB Employee Since 2018 Community Involvement - Member of the Eastern Star

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“My grandmother worked for Kennebec Savings Bank and I remember shadowing her when I was in high school. Now I work here and have my own 4 year-old daughter! I

love, love, love the Bank’s community involvement — I love it for myself and for the example it sets for her.

Just like my grandmother did for me!

Linsey’s Grandmother, Assistant Vice President & Accounting/ Operations Manager Elaine Wardwell retired in 2003 after 26 years at the Bank.

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Support is aShared Tradition Most of us here at Kennebec Savings Bank have called central Maine home all our lives. With deep roots in our towns and cities, we are passionately committed to giving back and sharing our success with those around us.

In the past few years, the Bank has contributed hundreds of thousands of dollars to the communities we serve. Through capital campaign contributions, annual appeal donations, special event underwriting and sponsorships, we have helped dozens of communities around central Maine, benefiting everything from food banks and health care facilities to schools, animal shelters, emergency care and many other causes.

Ask any of our employees and they’ll tell you that being part of team that believes in giving back is one of their favorite aspects of working at Kennebec Savings Bank. In 2019, our people were proud to give thousands of hours of their time at local events supporting a wide range of worthy causes:

• MaineGeneral Health Walk for Hope

• Financial education classes and seminars

• Emerging Leaders - United Way of KV

• Junior Achievement

• Big Brothers Big Sister of Mid Maine

• Colonial Theater & Johnson Hall

Major 2019 Gifts In 2019 we were proud to give

more than $1,000,000 in donations to more than 350 organizations in

35 communities.

WHITEFIELD LIBRARY To Purchase Historic Grange Hall

SNOW POND CENTER FOR THE ARTS Bowl In The Pines Restoration Project

WATERVILLE CREATES To The Paul J. Schupf Art Center

BOYS AND GIRLS CLUBS OF KENNEBEC VALLEY

In Honor Of Richard “Dick” O’Connor

CAMP KV FOR KIDS To Renovate Their Main Lodge

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“I was born and raised right here in Augusta. Kennebec Savings Bank has

always been my hometown bank, and my great uncle was a KSB president. I’m doing something I really enjoy, living where I want to and in a place where

I’m proud to be.”

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Nicolas Patenaude - AVP & Assistant Treasurer & Finance Officer - KSB Employee Since 2009 Community Involvement - Big Brothers Big Sisters of Mid-Maine

Nicolas’s Great Uncle, Ray Pepin, served as president of Kennebec Savings Bank from 1980 to 1993 but remained on the Board of Directors until 2003.

Loan Growth

- COMMERCIAL

- RESIDENTIAL

$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000

0 2011 2012 2013 2014 2015 2016 2017 2018 2019

Staying True to Our Values If banking has gone through a lot of changes in the last century and a half, here at Kennebec Savings Bank we are proud to say we’ve never changed who we are: a community bank committed to delivering dedicated, personal service and working together for the common good.

The technology and products may evolve, the locations and staff may grow and change, but you

can always bank on one thing: Kennebec Savings Bank will remain true to the values we’ve shared with our customers, our community and one another since 1870.

2019 Growth Working and banking together, we’ve become one of Maine’s top ten banks by staying true

to our values.

Net Income 8%

Total Assets 12%

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Capital 14%

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Special Thanksgoes out to Dick O’Connor for his nearly 45-year term on Kennebec Savings Bank’s Board of Directors, Dick O’Connor has had a profound impact on Bank’s success – and that of many other organizations throughout the Kennebec Valley region.

Dick O’Connor Board Member 1975 - 2019 Chair of Board 1994 - 2016

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We Welcome Our Newest Board Member Amy P. Tardiff Vice president and general counsel at the Maine-based, employee owned company (and a familiar name among Maine’s most dynamic business leaders), J.S. McCarthy Printers.

Board of Directors William W. Sprague, Jr., Chairman Charles W. Hays, Jr., Vice Chairman Andrew E. Silsby, Clerk Mary A. Denison Norman S. Elvin Diane F. Hastings Mark L. Johnston Douglas E. Reinhardt Amy P. Tardiff

Celebrating 150 Years of Success As we prepare to celebrate Kennebec Savings Bank’s 150th anniversary in 2020, we remain committed to the vision that has guided us for a century and a half.

Our Mission: Kennebec Savings Bank is committed to operating as a profitable, responsible and customer-focused community bank that:

• Serves as the primary bank of individuals, families, professionals and businesses in our markets with great service, products and technology;

• Positively contributes to the quality of life in our communities; and

• Offers a challenging and rewarding work environment to the KSB team of employees.

Backed by our growing and highly trained team, the future has never looked brighter for Kennebec Savings Bank. We look forward to sharing our continued success with all our customers, employees, and communities in the coming decade and beyond.

150 Years of success through the leadership of our early Treasurers, Presidents

and CEOs

Joseph L. Adams: Frank H. Adams:

Samuel B. Glazier: Russell Eaton:

William B. Nichols: John R. Gould:

William G. Boothby: Arno A. Bittues:

Norman A. Cote: Raymond D. Pepin: William H. Pelletier:

Mark L. Johnston: Andrew E. Silsby:

1870 – 1874

1874 – 1876

1876 – 1878

1878 – 1882

1882 – 1887

1887 – 1888

1888 – 1942

1942 – 1959

1959 – 1980

1980 – 1993

1993 – 1999

1999 – 2014

2014 – Present

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Corporators P. Nicholas Alberding Laura J. Benedict Brian S. Berry John D. Blouin Nona O. Boyink Michelle A. Bragg Amos M. Byron Jessica J. Clark Gail P. Conley David A. Cosgrove Philip W. Davidson Cathy A. DeMerchant Mary A. Denison Steven E. Diaz, MD George W. Diplock, Jr. Katie L. Doherty Daniel J. Dubord Jordanne Dunn, DMD Matthew W. Dwyer Norman S. Elvin Edward J. Fabian, III John V. Finnegan Mark A. Ford Maurice G. Fortin Michael J. Fortin Scott D. Fossett Sarah P. Fuller Phyllis Gardiner Craig J. Garofalo Debra A. Getchell Linda B. Gifford David A. Grenier Daren S. Hachey Brent L. Hall Gary L. Hammond Donn E. Harriman Diane F. Hastings Charles W. Hays, Jr. Bradley A. Hendrickson William S. Hill

Charles L. Hippler III Kathleen B. Hounsell Jennifer L. Johnson Mark L. Johnston Roger J. Katz Earle R. Kenney Patricia P. Ladd Donald O. Lagace, Jr. James R. Lagasse Joseph M. Lajoie R. Howard Lake James S. LaLiberty Gary Lapierre Margaret A. Lord Alison A. Lorenz Andrew B. MacLean Abigail B. Manter Robert M. Marden Walter F. McKee Robert M. Moore Stacey L. Morrison L. Michael Murphy Anita M. Nored Lisa L. Newell Mary Kathleen O’Halloran Tobias R. Parkhurst Gary R. Peachey Reginald E. Perry Daniel S. Petersen Gregory R. Piper Donald J. Plourde Matthew G. Pouliot Lynn Roberts Reed Douglas E. Reinhardt David J. Roy Jeffrey A. Shostak Stephen H. Shuman Andrew E. Silsby William W. Sprague, Jr. Ingrid L. Stanchfield D. Mark Stebbins Paul D. Stein

Barton J. Stevens Robin M. Struck Amy P. Tardiff Jonathan R. Tardiff Eben A. Thomas Katie C. Vickers Thomas G. Warren Tracy Warren P. Kevin Wellenius Dennis S. Wheelock Stephen J. Wood

Honorary Corporators Stephen W. Albison Cecile A. Bouffard Leo W. Caron Richard A. Coleman Thomas E. Foster Carole T. Fryover Moira H. Fuller Robert C. Hutchinson Dr. H. Winston Kipp Warren C. Kessler Peter E. Meulendyk Mary L. Morrison Leo J. Murphy Michael A. Napolitano, Jr. Richard D. O’Connor Raymond D. Pepin Carolyn B. Perry William H. Perry Jack D. Smart Susan S. Thomas Peter G. Thompson Thomas A. Trafton Leo J. Violette Sumner A. Webber, Sr. Dorothy S. Weeks

Kennebec Savings Bank Officers Andrew E. Silsby, President & Chief Executive Officer Craig J. Garofalo, Executive Vice President, Chief Operating Officer & Chief Loan Officer Christine M. Brawn, Senior Vice President & Chief Human Resources Officer Debra A. Getchell, Senior Vice President, Chief Financial Officer & Treasurer David A. Grenier, Senior Vice President & Chief Commerical Banking Officer David R. Holmblad, Senior Vice President, Marketing Director & Communications Officer Anita M. Nored, Senior Vice President & Chief Retail Banking Officer David J. Roy, Senior Vice President & Chief Risk Officer Gail P. Conley, Regional Vice President & Director of Investment Services David M. Eldridge, Regional Vice President & Commercial Banking Officer William S. Hill, Regional Vice President & Loan Officer Amos M. Byron, Vice President & Trust Officer Jason C. Dupuy, Vice President & Technology Officer Matthew W. Dwyer, Vice President & Loan Officer Brent L. Hall, Vice President & Comercial Banking Officer James R. Lagasse, Vice President & Information Security Officer Gary Lapierre, Vice President & Loan Officer Michelle L. Richardson, Vice President & Director of Lending Operations D. Mark Stebbins, Vice President & Senior Credit and Appraisal Analyst Katie C. Vickers, Vice President & Commercial Services Manager Tracy L. Warren, Vice President & Loan Officer Julie A. Armstrong, Assistant Vice President & Branch Manager Erin N. Bechard, Assistant Vice President & BSA Officer Tracy L. Farrell, Assistant Vice President & Loan Officer Jessica J. Norton, Assistant Vice President & Operations Officer Nicolas G. Patenaude, Assistant Vice President & Assistant Treasurer Carol L. Payne, Assistant Vice President & Vendor Management and Security Officer Jennifer L. Bechard, Human Resources Managing Officer Mary A. Hammond, Human Resources Officer Tamara R. Hillman-Tardiff, Loan Officer Heather O. Knowles, Controller Jessica M. Reynolds, Branch Manager & Loan Officer Anthony W. Rhoades, Loan Officer Angela B. Robbin, Regulatory Counsel, Compliance Officer & CRA Officer Travis N. Rowell, Branch Manager & Loan Officer Lydia M. Tuttle, Collections Officer

Kennebec Savings, MHC, Parent of Kennebec Savings Bank Consolidated Summary Balance Sheet & Consolidated Summary Statement of Income

Assets Cash and Cash Equivalents U.S. Government and Agencies Other Bonds 18,578,490 23,066,397 Corporate Stock 55,050,187 41,829,914 Real Estate Loans 705,437,913 665,795,298Commercial Loans 264,090,451 211,259,490 Other Loans Allowance for Loan Losses Bank Premises and Equipment Other Assets

Total Assets

Liabilities & Capital Checking Deposits Savings Deposits Certificates of Deposit Other Retail Funding Wholesale Funding Other Liabilities Equity Capital

Total Liabilities and Capital

Year Ended 12-31-2019*

$6,552,265 68,687,025

9,603,003 (5,762,001) 18,459,057 18,665,189

$1,159,361,579

12-31-2019* $227,991,414 398,039,205

99,917,085 1,732,344

265,636,686 12,151,127

153,893,718

$1,159,361,579

Year Ended 12-31-2018

$16,899,698 64,893,894

8,515,156 (5,149,725) 18,776,561 20,106,952

$1,065,993,635

12-31-2018 $216,337,082 342,603,081 108,804,141

1,573,732 251,067,403 10,684,464

134,923,732

$1,065,993,635

Statement of Income Year Ended Year Ended 12-31-2019* 12-31-2018

Interest on Loans $41,848,658 $36,552,993Interest and Dividends on Investments 4,385,300 4,027,900 Total Interest Income

Interest Paid on Deposits Interest Paid on Wholesale Funding Total Interest Expense Net Interest Income

Provision for Loan Losses Other Operating Income Security Gains/(Losses) Operating Expenses

Earnings Before Income Taxes Income Taxes

Net Operating Income

Unrealized Holding Gains/(Losses) on Equity Securities, net of tax **

Net Income

*Unaudited

46,233,958

(6,204,789) (5,626,415)

(11,831,204) 34,402,754

(600,000) 4,149,695 1,273,216

(25,357,814)

13,867,851 (2,861,792)

$11,006,059

6,709,161 $17,715,220

40,580,893

(4,117,203) (4,830,217) (8,947,420) 31,633,473

(720,000) 4,654,448 1,567,039

(24,664,641)

12,470,319 (2,265,113)

$10,205,206

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**Effective 2019, changes in the fair value of equity investments recognized in net income

www.KennebecSavings.Bank Augusta (207) 622-5801 • Farmingdale (207) 588-5801 • Freeport (207) 865-1550 • Waterville (207) 872-5563 • Winthrop (207) 377-5801