Dear Customers and Friends,

At this time, while a large number of banking and financial service organizations on a national level are experiencing financial difficulties in the area of sub-prime mortgage lending, Fidelity Bank chose long ago not to become involved in that area of lending. Our concern has been more about meeting the needs of our customers and about growing profitably over the longer term, and we’ve carefully avoided the

sub-prime mortgage market.

We bring a high level of expertise, professionalism, and understanding to mortgage lending. Successfully meeting the banking and borrowing needs of our customers for more than 105 years, Fidelity is also locally owned and managed. We are very proud of the fact that many of our new mortgage customers come from current and past customer referrals.

Most importantly, during this most difficult time for financial services companies, Fidelity has achieved consistently strong profits during 2007 and through the first two quarters of 2008. In addition, we’ve maintained the liquidity to meet our customers needs and are well capitalized by regulatory standards. At the same time, with new branch offices in Green Ridge and another in West Scranton (an environmentally “green branch”), we have invested and will continue to invest in the local community.

Fidelity Bank is dedicated to serving the Northeastern Pennsylvania community and is well positioned as a safe haven from the turmoil created by those companies that chose to get involved in sub-prime lending.

We welcome the opportunity to serve you and satisfy your banking needs at any one of our 12 branches in Northeastern PA. We invite you to visit us today and to become a member of our banking family.

Sincerely,

Executive Management Team

Fidelity Deposit & Discount Bank