Dear Friend,

As we close out 2004, it is my pleasure to report to you that Farmington Savings Bank has had another outstanding year. Our total assets grew by 12 percent to end the year at $754 million. Since 2000, they have risen almost 36 percent. At this rate of growth, we will pass $1 billion in assets three years from now.

Our strength is built on a tradition of community banking. Farmington Savings Bank was founded in 1851 as a mutual savings bank to directly benefit—in the words of its charter—

the community, especially the labouring classes…affording them a place for the deposits and safe keeping of their surplus funds.

For more than 153 years, we have stayed true to that charter. We take pride in being a community-minded bank. Our name has never changed, our headquarters has remained at the same address since 1865, and all our branches are located within 12 miles of Farmington.

The Bank’s history reminds us of our mission and reason for existence. We take it seriously. And it guides us as we stay at the forefront of modern banking practices.

Our thriving communities have dynamic and sophisticated financial needs, and we are committed to meeting those needs. We offer our customers a complete line of financial products and services, including savings and checking accounts, CDs, mortgage loans, investments, life insurance, telephone banking, and online bill payment. Our rates and terms are competitive. Our service wins accolades from customers.

As the population of our region grows, so does our branch network. We now have 11 branches in seven central Connecticut towns. This fall, our newest branch opened in West Hartford on the corner of Farmington Avenue and North Main Street. It offers patrons a full range of financial and investment services.

Recognizing our customers’ need for fee-free checking, we created our Better Than Free Checking Account. It has no monthly or per-check charges, no limit on the number of checks written, and no minimum balance or direct deposit requirements. Debit cards, online banking, telephone banking, and ATM usage are free. By offering customers a “switch kit,” we make it easy for them to sign up and transfer balances from checking accounts at other banks. Customers have responded with enthusiasm. We also offer 24-hour online banking and bill pay.

A 21st century bank needs to be multifaceted; consequently, our range of services continues to grow. Through an arrangement with Infinex Financial Group, we now offer investment advice and access to financial markets in all our offices. Our customers profit from the professional care of a full-service securities broker in the Bank’s familiar setting.

Our business banking customers enjoy the same banking services offered by regional or national banks, with the added benefit of our local knowledge and decision making. Every day, we help companies with equipment financing, cash management services, commercial mortgages, lines of credit, and term loans.

Unlike many other banks, we invest local dollars locally. We finance companies that create jobs and wealth in the communities where we live, work, and play.

Through our online FSB Business Connection, business customers can export account information to external software, view cash balances, transfer funds between accounts, wire transfers, make stop-payments, and perform other cash management activities from the convenience of their offices.

We have been building up our commercial lending team to keep pace with growth in this segment of the market. This year, we established a Commercial Portfolio department, staffing it with experienced lenders who serve most of our existing commercial customers. Other lenders from the commercial team who focus primarily on new business development will thus have more time to devote to that aspect of the business.

We are committed to personalized service. As a true community bank, we treat our customers as family. We care about them, their businesses, and their futures.

All of us, in every department and branch office, know that our foremost job is customer service. That means making our products convenient and appealing, and offering them to customers in a personal, caring, and friendly way.

Many of our employees have been with us for 15, 20, or 25 years. Our customers look on them as friends. They see them outside the bank, in the community, at local events and local shopping places.

We strongly believe in supporting our communities. And we back up our beliefs with actions. In 1998, we created a charitable foundation, FSB Foundation, Inc., with the Bank as its sole contributor. Since its inception, the Foundation has given scholarships, grants, and contributions to hundreds of deserving causes.

During 2004 made 186 individual contributions totaling approximately $300,000 to local organizations and institutions. Recipients included Services for the Elderly in Farmington, Farmington Emergency Fuel Bank, Bristol Hospital, Avon Dollars for Scholars, The Plainville Food Pantry, and the Southington Community YMCA.

Our employees have volunteered thousands of hours in community and fundraising events, from walk-a-thons to town clean-up days to bike rides. I am proud of them for carrying on the Bank’s tradition of community participation.

I would like to give my sincere thanks to our employees. It is their dedication, both within and without the four walls of the Bank, that enables us to be active members of our communities and serve our customers’ growing needs year after year.

And from all of us at Farmington Savings Bank, a heartfelt “Thank you” to you, our friend and customer. You have placed your faith in us, and we treasure your trust. You can depend on us to provide you with the services you need to secure your future.

We value what you value: Security. Community. Tradition. We are determined to remain true to our charter, and we will continue to bring you Community Banking At Its Best for many years to come.

Sincerely,

 

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Box 1: FSB Foundation, Inc.

The Bank has a long tradition of benevolent giving to the communities we serve. In 1998, it established the FSB Foundation, Inc., to ensure that this tradition will continue into the future.

The Foundation is the vehicle through which the Bank awards scholarships, donations, and grants to eligible individuals and organizations. Since its inception, it has disbursed over $1.5 million through more than 850 contributions.

This year, we once again proudly sponsored Burlington Tavern Day. It was a perfect day of fun and cheer, with good weather, a dunk tank, and a team of volunteers from the Bank. Residents took in a car show and bought crafts from local vendors, while the Foundation-sponsored bandstand featured live music and magic tricks.

It was our fifth year as co-sponsors of the annual Bristol Mum-A-Thon Road Race, benefiting the Bristol Community Breast Health Project. Some 200 adults and 30 children volunteered and took part in various events on a spectacular fall day. The events were followed by food, music, massages, and a moonwalk for the kids.

We continued our tradition of sponsoring the annual Southington Apple Harvest Festival. It ran for two weekends, with about 40 vendors and non-profits providing food, information, and fun for kids that included rides and an elaborate parade. Approximately 300,000 people attended the festivities.

Our donations helped the Farmington Fire Department with the cost of a fire safety trailer. The trailer educates children on the dangers of fire. It simulates a smoke-filled home, and firefighters show children quick and safe ways to exit. In an actual fire, the trailer can be used as a mobile command center.

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Box 2: Employees Giving to the Community

On weekdays, they are tellers, branch managers, loan administrators, administrative assistants, vice presidents, and accountants. On weekends and off hours, they are volunteers at local civic organizations.

The Bank’s employees selflessly donate their time and efforts to organize community events, serve on boards, and raise funds for charities. Over the years, they have donated thousands of hours at hundreds of events throughout central Connecticut.

END SAMPLE ANNUAL REPORT