Colleagues, customers and friendsColleagues, customers and friends: 2 03. In life and in business,...

2018 Annual Report and Statement of Condition

Issued: March 2019

Member FDICNMLS ID: 472275

It’s an inspiring time at Northern Bank.

The past year was one of new partnerships, continued growth and meaningful community involvement. We’re pleased to outline some of those successes in our 2018 Annual Report.

As you’ll see, your confidence and loyalty have enabled great things. On behalf of everyone at Northern Bank, I’d like to thank you for your unwavering support—and express my excitement for what’s to come in 2019.

Stay True,

James J. Mawn, President & CEO

Colleagues, customers and friends:

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In life and in business, everyone has a true north. A passion, a driving force. It makes us who we are.

But day-to-day responsibilities, especially finances, can cause people to lose sight of their goals. We opened our doors nearly 60 years ago to help handle our customers’ financial needs and ensure they focus on what matters most to them.

Since then, we’ve remained privately owned and have maintained an eye for opportunity. We make decisions quickly but take the time to truly understand our customers. With our insight, they’re able to better stay on course—their course—and, always, Stay True.

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5-Star Bauer Rating

2018 Readers’ Choice Award for Community Bank

2018 Banky™ Award awarded to the top 1% of

community banks in America

1031 Exchange

Business Loans

Cash Management

Merchant Services

Mobile Banking

Online Banking

Deposit Accounts

Home Loans

Mobile Banking

Online Banking

BUSINESSES:

INDIVIDUALS:

What started as a bank for entrepreneurs has grown into a

full-service partner. We’ve honed our business and personal

banking suites to guide our customers at every stage of

their financial journeys.

How we help

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We get that no one starts a business to focus on the banking

and finances. So, to help business owners simplify their back

offices, we expanded our cash management team in 2018.

Our services include:

Cash Management

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Stay on top of your business’s account activity

and balances with our online banking solution.

View historical and same-day account

information. Export balance and transaction

information in a variety of formats. Then,

import this information into your accounting

system or create the reports needed to help

manage your business.

Information Reporting

Through changing markets and regulations,

we can provide insight and solutions based

on your portfolio objectives.

Liquidity

Protect your accounts against fraud with online

solutions that put the power of approval in your

hands. With our Positive Pay product, you can

view and detect potentially fraudulent check

and electronic payments. You can also require

approval for all wire or electronic payments with

our business online banking solution.

Fraud Protection

No matter how you get paid—cash, check or

card—you’ll be covered by services like mobile

check deposit, remote deposit capture, merchant

services, lockbox and same-day ACH (Automated

Clearing House). You’ll also be able to save time

making payments with ACH payments, bill pay or

wire transfers.

Faster Incoming and Outgoing Payments

December 31, 2018

2018 Statement of Condition

ASSETS

LIABILITIES

EQUITY CAPITAL

Other Assets

Premises and Fixed Assets

Loans and Leases, Net of Unearned Income and Allowance

Less: Allowance for Loan and Lease Losses

Loans and Leases, Net of Unearned Income

Loans Held for Sale

Available-for-Sale Securities

Equities With Readily Determinable Fair Values Not Held For Trading

Securities:

Other Borrowings

Other Liabilities

Interest-Bearing Balances

Interest-Bearing

Noninterest-Bearing Balances and Currency and Coin

Noninterest-Bearing

Cash and Balances Due From Depository Institutions:

Deposits in Domestic Offices

Common Stock

Surplus

Undivided Profits and Capital Reserves

Accumulated Other Comprehensive Income

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Steady GrowthNorthern Bank Total Asssets

$2.16 B

201820102005200019951990

$6,591

$48,547

Outstanding Standby Letters of Credit

Pledged Securities

______________________________

James J. Mawn, President & CEO

Securities are recorded at market value and the difference between market value and book value, $49,760,000 and $50,342,000 respectively, is shown net of taxes as a decrease of $440,000 to stockholders’ equity.

This statement has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.

TOTAL ASSETS

TOTAL LIABILITIES

TOTAL EQUITY CAPITAL

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

24,167

1,475,721

121,847

3,804

29,890

118,465

64,281

25,289

$2,162,309

1,936,007

$ 1,909,814

$ 316,532

$ 5,885

$ 1,792,253

600

41,495

186,904

(2,697)

226,302

$ 2,162,309

49,760

1,195

1,885,647

In thousands

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The Northern Bank Charitable Foundation

is a huge part of who we are. Through it,

we support non-profits and community

organizations in Middlesex County. Our

efforts focus on hunger relief, housing,

education and expanded youth and

social services to assist some of our most

vulnerable neighbors.

The Foundation also funds a scholarship

in the name of long-time employee Jim

McGarry. It provides $5,000 to a local,

college-bound student whose parent or

guardian is a police officer or firefighter.

In 2018, the Foundation provided over

$200,000 in contributions, ranging in size

from $1,000 to $50,000, to more than 30

organizations.

The following figures represent our major

donations for the year.

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Heading Home:

We teamed up with New England running

back Sony Michel and 98.5 The Sports Hub

to launch “Taking it to the House.” For every

New England touchdown scored during

the 2018-2019 season, we donated $1,000

to Heading Home and their fight to end

homelessness. The final donation—capped

off by Sony’s championship-clinching goal-

line plunge—totaled an amazing $62,000.

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James L. McKeown

Boys & Girls Club of Woburn:

As part of a five-year, $250,000 pledge,

we helped with the completion of

their new Clubhouse, a program that

offers sports, arts and crafts and other

activities that foster fun and growth.

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$37,000Heading Home:

For three families living in shelters,

we sponsored their moves into

apartments, finished with new furniture.

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National Brain

Tumor Society:

Our donation helped to fund

research, education and

patient support programs.

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$25,000Area Food Banks:

We worked with multiple food

banks in our communities to

help feed the hungry.

$20,210Nashoba Learning Group:

Our support helped fund the

school’s programs for kids and

adults with autism.

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Habitat for Humanity

of Greater Lowell:

We helped with the

renovation of an affordable

home in Billerica for a low-

to-moderate income family.

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These are the faces of some pretty exceptional

people. From their passion for service to their

entrepreneurial mindset, our leadership team

embodies what Northern Bank stands for.

Everything we do starts with them.

EXECUTIVES

DIRECTORSOur Team

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Joseph BellinoBoard Member

James Mawn, Esq.President & CEO

Danielle BlackBoard Member

Donald QueeninExecutive Vice President

James Brown, IIIBoard Member

Francis KenneyExecutive Vice President & CFO

Brandon KellyBoard Member

Raymond ClarkExecutive Vice President

John MartiniBoard Member

Russell MawnBoard Member

Mary Elizabeth Mawn-Ferullo, Esq.Board Member

Alicia Mawn-Mahau, Esq.Board Member

Robert McCrenskyBoard Member

M. Catherine Riley, Esq.Board Member

Fred SalvucciBoard Member

John SullivanBoard Member

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Our footprint spans Middlesex County. If you

live here, then there’s a good chance we aren’t

far away. Plus, Northern Bank Direct, our online

division for certificates of deposit and money

market accounts, is available nationwide at

NorthernBankDirect.com.

Our Locations

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Headquarters 275 Mishawum Road Woburn, MA 01801

800-273-6908

Acton414 Massachusetts AveActon, MA 01720978-263-9501

Billerica482 Boston RoadBillerica, MA 01821978-667-4107

Burlington13 Center StreetBurlington, MA 01803781-272-2880

Chelmsford14 Littleton RoadChelmsford, MA 01824978-256-1552

Littleton265 Great RoadLittleton, MA 01460978-486-3543

Melrose514-516 Franklin StreetMelrose, MA 02176781-662-0200

Reading600 Main StreetReading, MA 01867781-569-2400

Sudbury430 Boston Post RoadSudbury, MA 01776978-569-1901

Westford45 Main StreetWestford, MA 01886978-692-9700

Woburn Center303 Main StreetWoburn, MA 01801781-933-6606

Woburn Main Office275 Mishawum RoadWoburn, MA 01801781-937-5400

Woburn West215 Lexington StreetWoburn, MA 01801781-937-5423

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nbtc.com800-273-6908

Member FDICNMLS ID: 472275

Colleagues, customers and friendsColleagues, customers and friends: 2 03. In life and in business,...

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