Northeast Pennsylvania Financial Corp
Northeast Pennsylvania Financial — Merger or Acquisition (December 2004)
17 slides from Northeast Pennsylvania Financial's merger presentation, Dec 9, 2004
Slide 1: Strategic Merger Announcement
aN KNBT Bancorp, Inc. and NORTHEAST PENNSYLVANIA Q FINANCIAL CORP. Strategic Merger Announcement December 9, 2004
Slide 2: Disclaimer
Disclaimer This investor presentation for this transaction, which will be available on KNBT's web site, contains forward-looking statements regarding the merger of KNBT and NEPF. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ
Slide 3: Disclaimer (continued)
Disclaimer (continued) KNBT and NEPF will be filing relevant documents canceming the merger with the Securities and Exchange Commission (SEC), including a registration statement on Farm 8-4 containing a prospectus/proxy statement. WE URGE INVESTORS TO READ THESE DOCUMENTS BECAUSE THEY WILL CONTAIN I
Slide 4: Presentation Outline
Presentation Outline Corporate Profiles Strategic Opportunity Financial Impact Franchise Impact Summary of Opportunity RRR > REY Bancorp, Inc. December, 2008 aged
Slide 5: Corporate Profiles
Corporate Profiles KNBT PROFILE KNBT Bancorp, Inc. (NASDAQ - KNBT), headquartered in Bethlehem, Pennsylvania, was formed as a result of Keystone Savings Bank and Nazareth National Bank combining their 184 year history of service excellence Keystone Nazareth Bank & Trust (KNBT), a subsidiary of KNBT
Slide 6: Strategic Opportunity
Strategic Opportunity Excellent Strategic Fit Complementary Business Combination Attractive Financial Low Execution Risk Bancorp, Inc. Introduction to new, contiguous markets Strengthens market position of combined entity = Adds insurance capability and builds critical mass in Trust services. KNBT b
Slide 7: Impact-Transaction Summary
Financial Impact-Transaction Summary Floating Exchange Ratio 20 day avg. trading activity prior to close Structure 50% cash/50% stock Purchase Price Per NEPF Share $23/share Aggregate Purchase Price $97.5 million Treatment of Options Cashed out Termination Fee $4 million Due Diligence Completed Boar
Slide 8: Impact-Deal Pricing
Financial Impact-Deal Pricing Comparable Transactions KNBI/NEPF __ Regional National Price/Eook 156.46% 182.75% 17.06% Price/Tangible Book 190.24% — 201.98% 180.04% Price/LTM EPS 18.25% 27.18% 26.98% ‘Tang, Book Prem. /Core Deposits 11.06% 13.91% 15.23% Price/ Deposits 20.18% 22.38% 24.08% neagipnss
Slide 9: Impact-Accretive to Earnings
Financial Impact-Accretive to Earnings + Accretive to earnings in the first full year of combined operations 2004 Pro Forma (00 share KNBT Net Income’ $17,300 90.59 NEPF Net Income” 4,001 a 19% Cost Savings? 2,302 007 Other Adjustments* 2,625) 0.08) Pro Forma 20978 0.64 4Net Income estimated based o
Slide 10: Impact-Pro Forma Balance Sheet
Financial Impact-Pro Forma Balance Sheet KNBT NEPF Combined" Assets $2,292.4 $236.0 $3,187 Net Loans 9988 403.6 1,402.4 Deposits 1,286.8 483.4 47703 Borrowings 5886 264.3 8529 Equity 385.7 585 B45 ‘Tangible Equity to Assets 15.15% 5.82% 10.93% Tangible Book per Share $1181 - $10.39 (Gn millions) Sp,
Slide 11: Impact-Combined Deposits as of 9/30/04
Financial Impact-Combined Deposits as of 9/30/04 $(000) KNBT NEPF Combined Mix Non-interest DDA $116,590 $36,676 $153,266 8.66% Interest bearing DDA 168,347 81,150 249,497 14.09% MMDA 239,815 75,164 314,979 17.79% Savings & clubs 214,315 92,626 306,941 17.34% Brokered deposits ie) 10,000 10,000 0.56
Slide 12: Impact-Loan Portfolio as of 9/30/04
Financial Impact-Loan Portfolio as of 9/30/04 $(000) KNBT NEPF Combined Mix Commercial & Industrial $47 542 $40,473 $88,015 6.20% Commercial Real Estate 280,146 71,138 351,284 24 74% Residential Real Estate 380,604 117,085 497,689 35.06% Consumer 298,427 184,359 482,786 34.00% Total $1,006,719] $413
Slide 13: Franchise Impact-Geography
Franchise Impact-Geography F Bancorp, Inc, December, 2008 Page 13
Slide 14: Franchise Impact-Institutional Ranking as of 9/30/04
Franchise Impact-Institutional Ranking as of 9/30/04 » Creates the 11" largest PA-based financial institution, with dominant positions in the Lehigh Valley, the greater Luzerne County, and the Pocono regions Total Assets Rank Company Name (9000) 1 PNC Financial Services Group, Inc. (The) 77,297,000
Slide 15: Franchise Impact-Deposit Market Share
Franchise Impact-Deposit Market Share County KNBT NEPF Combined Lehigh 20.82% - 20.82% Northampton, 22.37% - 22.37% Monroe 4.09% 0.42% 451% Carbon, 435% 464% 8.99% Luzerne - 6.25% 6.25% Columbia - 469% 469% Schuylkill - 5.67% 5.67% Pennsylvania 0.65% 0.26% 0.91% Matt share source: FDICIOTS Summary o
Slide 16: Franchise Impact-Deposit Market Share Rankings
Franchise Impact-Deposit Market Share Rankings County KNBT NEPF Combined Lehigh 20f 19 - 20f 19 Northampton, dof 15 - 1 of 15 Monroe. 8 of 16 15 of 16 7 of 15 Carbon, 10 of 11 8of 11 5 of 10 Luzerne - Sof 19 Sof 19 Columbia - 6 of 9 6 of 9 Schuylkill - 5 of 18 5 of 18 Pennsylvania 22 of 288 51 of 28
Slide 17: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] and [LOGO] Strategic Merger Announcement December 9, 2004 Dis claimer This investor presentation for this transaction, which will be available on KNBT’s web site, contains forward-looking statements regarding the merger of KNBT and NEPF. These
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