Quality: Sound Loan Growth increased to $32.40 at December 31, 2012, up from $28.98 at  December 31, 2011. Century is “well capitalized” by all regulatory standards,  and we foresee no difficulty passing all proposed “Basel III” standards with  organic capital generation from earnings. Total loans grew by 12.9% to $1.1 billion on December 31, 2012, marking  the first time we passed the billion-dollar loan milestone. Nonperforming  assets fell from the previous year, to $4.5 million. The education and  healthcare sectors continue to drive our loan growth, increasing some 27%,  as a mirror image of the dynamic economic engine of Southern New England.  Century has earned the right to be known as the expert in not-for-profit  tax-exempt bond finance. Business lending is always a core focus; we have a dozen business  development officers in the field, a talented group of energized underwriters,  and a daily loan review and approval process that ensures speedy and thoughtful  decisions by experienced senior managers. We utilize the SBA lending  programs wherever possible to increase credit availability and minimize risk. 2012 was a record year in which we closed $117 million in residential first  mortgages and $67 million in home equity loans. We extended 307 energy  conservation loans through the Mass Save loan program, which helped us do  our part for conservation and build new long-term relationships. Risk management is in our blood, and the results show it. We make loans  in our geographic footprint to organizations and families of character and  promise who see us as the center of their banking relationship. Every loan is  reviewed and approved by senior management, who receive robust and  collegial input from our bankers in the field. Decisions are made swiftly with  an eye to the macro and micro risks present in every loan. We know the loans  that we do – and do not – want in our portfolio. The decisions are clear, and  the analysis is thorough and respectful to all. Borrowers are not just credit  scores to Century; they are families and companies, hopes and dreams. We  try to bring value to all types of applicants in their search for financing. Cambridge College Inaugural Celebration Pictured from left: Barry R. Sloane,  Deborah C. Jackson, President of Cambridge College,  Gerald S. Algere, SVP, Century Bank,  Barbara J. G. Sloane, and Marshall M. Sloane Pictured from left: Executive Vice President Brian J. Feeney,  Executive Vice President David B. Woonton,  Executive Vice President Paul A. Evangelista  and Chief Financial Officer & Treasurer  William P. Hornby