3rd Fed Bank

Newtown, PA · Cert 29132

FDIC · 19 branches

Q3 2014

$815.6MAssets

$609.0MLoans

$668.0MDeposits

$95.4MEquity

Loan mix

Deposit mix

NIM

Market Position · Philadelphia-Camden-Wilmington, PA-NJ-DE-MD · 2014 SOD (annual) · 0.1% share · #40 of 137 inst. · $0.6B of $510.2B

1.5% Bucks

0.6% Philadelphia

1.0% Burlington

0.6% Mercer

Earnings: ROA of 0.59%, down 52 bps year over year; NIM at 3.26%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.63%.
Funding: loans stand at 91.18% of deposits as of Q3 2014.

Return on Assets (YTD, annualized)

0.59%-52 bps YoY

Net Interest Margin (YTD, annualized)

3.26%+31 bps YoY

Efficiency Ratio (YTD, annualized)

76.06%+1,186 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q3 2013	Q4 2013	Q1 2014	Q2 2014	Q3 2014	YoY Δ	Trend
Earnings
Return on Assets	1.11%	1.04%	0.75%	0.79%	0.59%	-52 bps
Return on Equity	10.11%	9.52%	6.96%	7.16%	5.30%	-481 bps
Net Interest Margin	2.95%	3.07%	3.19%	3.19%	3.26%	+31 bps
Efficiency Ratio	64.20%	64.45%	70.25%	68.29%	76.06%	+1,186 bps
Non-Interest Burden	1.62%	1.75%	2.16%	2.08%	2.41%	+78 bps
Growth
Asset Growth (YoY)	19.44%	17.55%	18.09%	17.33%	-2.57%	-2,202 bps
Loan Growth (YoY)	16.27%	16.23%	15.30%	15.60%	-3.29%	-1,955 bps
Deposit Growth (YoY)	27.58%	22.16%	21.04%	19.77%	-3.19%	-3,077 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.23%	0.19%	1.65%	0.82%	0.63%	+40 bps
Allowance / Loans	1.06%	1.06%	0.67%	0.68%	0.67%	-40 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	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	17.50%	17.46%	16.93%	17.45%	18.00%	+50 bps
Equity / Assets	10.57%	10.76%	10.88%	11.27%	11.70%	+113 bps
Liquidity & Funding
Loans / Deposits	91.27%	89.58%	87.02%	88.52%	91.18%	-9 bps
Liquid Assets / Assets	3.32%	5.07%	6.44%	5.24%	3.80%	+47 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a