Dear clients, friends and colleagues:

We are very happy that 2008 is shaping up to be another exciting year for Fidelity Bank. Your enthusiastic loyalty is very much appreciated and remains one of the biggest strengths of the Fidelity Bank organization. I would like to personally thank all of our clients, friends and colleagues for their patronage and support in 2007.

Some of you may be concerned about the recent news related to the financial health of the banking industry. Fortunately, Fidelity Bank’s financial health continues to be as solid as it has been since we opened in 1970. Thanks to a long-tenured staff and strong capitalization, you can be confident about the long-term stability of the bank. As you’re most certainly aware, the mortgage business continues to contract, but we are still happy to report a solid 2007 performance in this year’s statement of condition.

While it was announced I’ve been promoted to president of the bank, I continue to work with Jim Morton, our chair of the board. I’ve worked with Jim for more than 25 years and look forward to many more years of collaboration.

We hope that this year brings repeated prosperity for you and your business.

Thank you for choosing Fidelity Bank!

Sincerely,

top