Sandra L. McGoldrick
President/CEO

To The Members of Winter Hill Bank, FSB:
Once again I am pleased to report to you the 2007 performance of the Winter Hill Bank. This year a renewed emphasis was placed on Customer Relationship Banking and that was accomplished by increasing customer awareness through various communications, lobby efforts and an upgraded website to suite today’s busy lifestyle. Our branch network in Somerville, North Reading and Chelsea combined with our CustomServe approach and our excellent reputation for Exceptional Service Without Exception will position us for future growth that is projected for 2008. We will achieve this growth by continuing to strengthen our relationship with our customers and continuing with everyday relationship building to ensure that the products are suited to the needs of our customers and the communities we serve.

Also, during the year, as a result of an opportunity in North Reading, the bank began construction on a new full-service free standing banking facility at 271 Main Street in North Reading. This new branch will provide the Community of North Reading with two drive-up windows, a walk-up ATM, night depository and convenient parking. There is no doubt that our employees will enjoy working in this new facility and our customers will benefit from this newly designed state of the art facility to conduct all of their banking business.

I would be remiss if I failed to mention the market turmoil concerning the foreclosure rates on “subprime” loans that wreaked havoc in parts of the mortgage industry and elevated concerns about the faltering of the U.S. economy during 2007. Some financial institutions and other entities active in mortgage lending sought to enhance yields by originating higher risk mortgage loans. Winter Hill Bank refrained from such originations and as of December 31, 2007, its loan portfolio did not include any subprime mortgage loans.

The vision for the Bank and beyond is exceedingly bright. We will promote the Winter Hill Bank brand, highlighting the differences and advantages we offer in a changing, competitive landscape. We will stay the course of our strategic plan which has proven to be on target with the goals and objectives of the bank and the needs of the community. Also, we will preserve the bank’s commitment to providing financial services of the highest quality and value to our depositors and borrowers as we maintain our role as the Community Bank of the areas that we serve.

In closing, I want to express my sincerest appreciation for the support of the Board of Directors and a thank-you to the Officers and Employees for their dedication and hard work. Also, to our many customers, friends and future customers, we look forward to building a banking relationship with you and serving you in all of your banking needs.