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2 0 13 A N N U A L R E P O R TWE TOOK THE ONE LESS TR AVELED

AND THAT HASMADE ALL THEDIFFERENCEIt’s tough out there. Since 2008, almost everyAmerican has suffered financially in one way oranother. The same goes for businesses. Banks, too,have felt the pinch of declining interest rates and asluggish economy. Difficult days like these test yourmettle and your ingenuity.Since the onset of the great recession of 2008,Liberty Bank has chosen a path that may be counterintuitive to some a road less traveled butclearly it has made all the difference for us.While other banks were closing branches, we weregrowing. While other banks were downsizing, wewere hiring. While other banks were struggling withfiscal health, we were as strong as ever. And whileother banks were tightening the purse strings, wewere lending to home buyers and small businesses.And, perhaps the achievement of which I am mostproud: over the last five years, Liberty Bank has notwavered in its commitment to local communities.

Our Foundation grants have continued to grow andemployees by the hundreds volunteer locally.We have forged our own way and come out aheadas you’ll see by the achievements on the followingpages. It is my honor to work with the best team inthe business, and a privilege for all of us to serveour customers and communities.Look for more great things to come from LibertyBank as we continue to carve out our own pathwayto becoming Connecticut’s most admired company.Sincerely,I by no means travel the road alone. My thanksfor the guidance of a truly professional, insightfuland innovative Executive Management Team:Barry AbramowitzSenior Vice President, Chief Information OfficerDeborah BochainExecutive Vice President, Retail BankingThomas HylinskiExecutive Vice President, Retail LendingPatricia JatkeviciusSenior Vice President, Chief Marketing OfficerGerard KusinskiExecutive Vice President, Chief Lending OfficerRobert ParrySenior Vice President, Chief Human Resources OfficerChandler J. HowardPresident & CEOThomas PastorelloExecutive Vice President, Chief Financial OfficerEugene ShugrueSenior Executive Vice President, Chief Risk& Credit Officer2013 Annual Report1

2Liberty Bank

DESTINATION: GROWTHIf you really want to get somewhere in the banking businessnowadays, growth is the name of the game. Of course, that’s easiersaid than done. Faced with depressed interest rates and growingregulation, lots of banks have come to a standstill or chosen todownsize. But not us.We believe that Liberty Bank has a unique value proposition first-rate products and all the latest technology combined with hometown, first-name-basis service. And last year, we set out to extendthat value to as many new customers and markets as possible.Early in 2013, we acquired Bank of Southern Connecticut andadded three new locations in all-important New Haven County:Amity, downtown New Haven, and Branford. We followed that withthe addition of two more locations to our expanding roster of sitesin Hartford County: Bristol and Southington.Our newest branches also have free-standing welcome centers –rather than the barrier of an old-fashioned teller line. They’re staffedby universally trained employees who are capable of handling justabout anything a customer requires. It’s all about reducing waittimes and improving customer service.For the first time, Liberty Bank also introduced itself in FairfieldCounty with a brand-new adjustable-rate mortgage productsuited to home buyers in this market, generating over 100 millionin closed loans.Overall, we picked up a record-breaking 10,926 new householdsin 2013. How did we do it? Not by simply opening our doors in newtowns, but by offering products customers can’t find elsewhere,by making a concerted effort to help small businesses grow, and bybuilding long-term relationships. Our ability to attract and retainthousands of new households year after year is proof of our good,solid, long-term strategy.Cutting the ribbon in New Haven (l to r)Liberty Board Chairman Mark Gingras;Kelly Murphy, City of New Haven; LibertyPresident & CEO Chandler J. Howard;New Haven Mayor Toni Harp; and JorgePerez, Liberty Bank.All new from the groundup in Southington.2013 Annual Report3

Second-generation owners of this well-respectedgarage sought funding to increase their shop’s squarefootage and to install revolutionary painting technology.We were glad to help them grow into their sixth decadeof business.Eddie and Carol LupinekEddie’s Auto Body SpecialistsEast HaddamWHEN BUSINESSSUCCEEDS, THEENTIRE COMMUNIT YSUCCEEDS4Liberty BankSmall business is the engine that revs theeconomy. And yet, in the last couple of years,small businesses everywhere have faltered.At Liberty Bank, we believe that a communitybank is only as effective as the community itsupports. We take pride in seeing occupiedstorefronts and “open for business” signs allalong the main streets we serve.In 2013, we significantly stepped up oursmall-business lending, both in number of loanclosings (a 128 percent increase), and closedloan dollars (a 265 percent increase). The USSmall Business Administration took note of ourefforts, honoring us with an Eagle Award for

We supported Pavilion Catering’s latest project, renovationof an 1850 farmhouse into a wedding planning center witha construction and term loan for installing a catering kitchen.They’re all about planning and producing dream weddingsand we are proud to help their business grow.Tom McDowellConnecticut Wedding GroupPavilion CateringMiddletownour 150 percent increase in SBA loans madeand 251 percent increase in dollar volume.We also broadened our solutions to includenot just products and services for the business, but also for business owners and theiremployees. We are equally prepared to openbank accounts and arrange for merchantprocessing as we are to talk succession planningor employee perks at work.Our most important small-businessaccomplishment? We remained true to ourcommunity banking roots. We proved we canget bigger and better without losing sight ofthe fact that we’re dealing with individuals andthe dreams that they hold dear.Liberty financing helped these small businesses keep on truckin’ in 2013:Pizzeria Da Vinci; Riverstone Landscaping, LLC; Cromwell ConcreteProducts, Inc.; and the Robert Borruso Agency, New England Property &Casualty, Inc.2013 Annual Report5

Sure, we love having customers visit us at abranch location and thousands do every day.But nowadays, customers also want the bankto come to them, anywhere and anytime.That’s why we’re constantly striking out in newdirections, especially in cyberspace.In 2013, our chief technological achievementwas the launch of Mobile Banking. This waskeenly anticipated by customers and verywell-received. By year-end, over one-half ofour Online Banking customers had enrolledfor mobile connectivity an adoption ratefar surpassing expectations.So now, in addition to banking by phoneand personal computer, customers have theability to transact business via Kindle, Android,iPad, and iPhone devices. One customertweeted that he loved having his bank in hispocket. To which we say, “Thanks for bringingus along!”6Liberty BankWith today’s technology, customers are notshy about telling you how you’re doing, andwe’re happy to report that our Mobile Bankingratings remain at a steady 4.8 stars out offive. The biggest item on customers’ wish listis mobile check deposit, which is already inthe works.Last year, more customers than ever openedchecking and savings accounts online, and agrowing number used our envelope-free ATMsfor their deposits. With just a year up andrunning, UTransfer our online service thatallows the transfer of money between Libertyand other financial institutions had enrolledmore than 6,000 customers.All indications are that customers truly prizespeed and convenience when it comes tobanking. So our direction in the year aheadwill be toward finding new ways to make technology work even harder for them.

OUTWARDLYMOBILE2013 Annual Report7

12NDABA National CommunityCommitment AwardStraightTop WorkplaceAward3RD Largest BankHeadquarteredin Connecticut2013 ACHIEVEMENTS29,375Customers Enrolledin Mobile Banking14,023Hours Volunteered by Employeesin Their Communities0.84% 3.6Return on AssetsBILLION in Total Assets

45Connecticut BankingLeaders, Robin Fujio,Kathy Doucette, DebBochain & Kelly SperanzaNew Branch Locations(Amity, Branford, Bristol,New Haven, Southington)10,926New HouseholdsAcquired 1.5BILLIONin Loans Funded 182,026Record-BreakingThanksgiving DriveChandler J. HowardCBA Chairman, ABA CommitteeMember and Federal Reserve BankCouncil Member 689,246in Liberty BankFoundation Grants 237,000 Record-BreakingUnited Way Drive

WE’D LIKE TO SAY THANKS TO OUR SUMMER YOUTHEMPLOYMENT FUNDING COLLABORATORS:Middletown:Southeastern Connecticut:City of MiddletownChamber of Commerceof Eastern ConnecticutFoundationCommunity Foundationof Middlesex CountyGuilmartin, DiPiro andSokolowski, LLCCharter Oak Credit UnionJackson ChevroletCommunity Foundationof Eastern ConnecticutMain Street MarketDime Bank FoundationMiddle OakDominion ResourcesMiddlesex United WayPeople’s UnitedCommunity FoundationNew England EmporiumEatery and MarketplaceSea Research FoundationPeach Pit FoundationPegasus ManufacturingSeasons Federal Credit UnionEmane Holley keeps the filecabinet organized at SeasonsFederal Credit Union.10 Liberty BankJasmine Jackson easily handlesthe lunch rush at the New EnglandEmporium Eatery and Marketplace.

FAR-REACHINGIMPACTLIBERT Y BANK FOUNDATION2013 GRANTSGrants by TypeAffordable Housing Scholarships and Early Literacy GrantsEducation for Economic Success43,450153,000195,946Nonprofit Capacity Building34,000Capital Projects42,350Food and Shelter106,000Special Programs37,000United Way77,500Total 689,246Grants by RegionGreater New LondonHartford County 89,35057,000Marketwide186,000Middlesex County176,296New Haven County53,650Norwich/Willimantic126,950TotalWhile the Bank was expanding into new marketslast year, the Liberty Bank Foundation was closebehind. As a community Bank we believe it’s justas important for us to serve our neighbors as it isto attract new customers. And, in that spirit, theBank gifted 1.2 million to bolster the Foundation’sendowment and our 2013 giving escalated to anall-time high of 689,246.Liberty Bank Foundation is noted for a trait thatdiverges from mainstream giving, and one that webelieve makes us a standout collaboration. Ratherthan traveling the road alone, we are constantlyon the lookout for funding partners who can joinforces with us to add impact.Last year, our annual Thanksgiving Drive raiseda record-breaking 182,026 for holiday meals forfamilies in need. We know that this amazing resultwould not have been possible without our longstanding partnerships with 29 local Rotary Clubs,for which we are truly grateful.In 2013, we also led the charge to involve 18 otherfunders in providing much-needed support forsummer youth employment opportunities. Thanksto this combined generosity, we were able to raisemore than 100,000 to help put dozens of lowincome young people to work in Middletown andsoutheastern Connecticut.The American Bankers Association thought thiseffort was significant enough to recognize LibertyBank Foundation with a Community Commitmentaward. We were one of only six institutions nationwide so honored last year. 689,2462013 Annual Report11