Commerce Bank/Harrisburg National Association

Camp Hill, PA · Cert 26255

FDIC · 34 branches

Q4 2015

$2.9BAssets

$2.0BLoans

$2.4BDeposits

$280.0MEquity

Loan mix

Deposit mix

NIM

Market Position · Harrisburg-Carlisle, PA · 2015 SOD (annual) · 11.4% share · #3 of 27 inst. · $1.4B of $12.7B

12.9% Dauphin

11.1% Cumberland

6.2% York

2.0% Lancaster

Earnings: ROA of 0.82%, up 2 bps year over year; NIM at 3.46%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 1.16%.

Return on Assets (quarter, annualized)

0.82%+2 bps YoY

Net Interest Margin (quarter, annualized)

3.46%-4 bps YoY

Efficiency Ratio (quarter, annualized)

66.26%+87 bps YoY

Tier 1 Leverage Ratio

9.63%

Discrete quarter, annualized.

Metric	Q4 2014	Q1 2015	Q2 2015	Q3 2015	Q4 2015	YoY Δ	Trend
Earnings
Return on Assets	0.80%	0.83%	0.61%	0.82%	0.82%	+2 bps
Return on Equity	9.53%	9.86%	7.02%	9.19%	8.73%	-80 bps
Net Interest Margin	3.50%	3.54%	3.53%	3.54%	3.46%	-4 bps
Efficiency Ratio	65.39%	68.69%	72.62%	64.65%	66.26%	+87 bps
Non-Interest Burden	1.96%	2.14%	2.29%	1.96%	1.95%	-1 bps
Growth
Asset Growth (YoY)	7.81%	4.40%	4.63%	0.20%	-3.08%	-1,089 bps
Loan Growth (YoY)	14.03%	11.27%	11.75%	9.61%	1.34%	-1,268 bps
Deposit Growth (YoY)	6.65%	9.98%	8.21%	5.10%	-1.41%	-806 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.44%	0.15%	0.48%	0.26%	1.16%	+72 bps
Allowance / Loans	1.25%	1.28%	1.25%	1.27%	1.17%	-8 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	8.59%	8.94%	9.16%	9.63%	n/a
Total Risk-Based Capital	12.60%	12.87%	12.68%	13.01%	13.78%	+118 bps
Equity / Assets	8.26%	8.65%	8.64%	9.17%	9.64%	+138 bps
Liquidity & Funding
Loans / Deposits	83.49%	82.84%	87.33%	85.75%	85.82%	+233 bps
Liquid Assets / Assets	10.99%	11.29%	11.96%	11.09%	12.45%	+146 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a