Downingtown National Bank

Downingtown, PA · Cert 7464

FDIC · 14 branches

Q3 2019

$1.1BAssets

$924.2MLoans

$932.4MDeposits

$139.2MEquity

Loan mix

Deposit mix

NIM

Market Position · Philadelphia-Camden-Wilmington, PA-NJ-DE-MD · 2019 SOD (annual) · 0.2% share · #25 of 109 inst. · $1.0B of $459.9B

5.0% Chester

0.3% Philadelphia

0.4% Delaware

Earnings: ROA of 1.01%, up 1 bps year over year; NIM at 3.38%.
Asset quality: problem loans at 0.77% of loans (+5 bps YoY), with net charge-offs at 0.06%.

Return on Assets (YTD, annualized)

1.01%+1 bps YoY

Net Interest Margin (YTD, annualized)

3.38%+3 bps YoY

Efficiency Ratio (YTD, annualized)

65.29%-33 bps YoY

Tier 1 Leverage Ratio

10.92%+69 bps YoY

Year to date, annualized, through each quarter.

Metric	Q3 2018	Q4 2018	Q1 2019	Q2 2019	Q3 2019	YoY Δ	Trend
Earnings
Return on Assets	1.00%	1.03%	0.97%	0.97%	1.01%	+1 bps
Return on Equity	9.04%	9.30%	8.57%	8.47%	8.65%	-39 bps
Net Interest Margin	3.36%	3.31%	3.37%	3.40%	3.38%	+3 bps
Efficiency Ratio	65.62%	64.56%	66.21%	66.83%	65.29%	-33 bps
Non-Interest Burden	2.02%	1.96%	2.07%	2.10%	2.03%	+1 bps
Growth
Asset Growth (YoY)	5.86%	7.01%	6.06%	1.82%	-1.31%	-717 bps
Loan Growth (YoY)	10.75%	10.49%	7.99%	5.13%	1.75%	-900 bps
Deposit Growth (YoY)	7.84%	14.30%	9.97%	4.45%	-0.83%	-867 bps
Asset Quality
Nonperforming Loans / Loans	0.71%	0.62%	0.49%	0.66%	0.77%	+5 bps
Net Charge-Offs / Loans	0.02%	0.04%	0.07%	0.07%	0.06%	+4 bps
Allowance / Loans	0.72%	0.71%	0.72%	0.72%	0.74%	+2 bps
Allowance Coverage of NPLs	1.0x	1.2x	1.5x	1.1x	1.0x	0.0x
Capital
Tier 1 Leverage Ratio	10.23%	10.21%	10.38%	10.61%	10.92%	+69 bps
Total Risk-Based Capital	13.68%	13.46%	13.66%	13.99%	14.61%	+94 bps
Equity / Assets	11.19%	11.23%	11.41%	11.80%	12.50%	+132 bps
Liquidity & Funding
Loans / Deposits	96.61%	94.98%	95.25%	95.37%	99.12%	+251 bps
Liquid Assets / Assets	5.57%	5.75%	7.39%	8.48%	6.02%	+45 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a