Ron Bernas Vice President, Consumer Sales

 Conestoga Bank is a full-service financial institution with 16 locations in Center City and South Philadelphia, Bucks, Chester, Montgomery and Delaware counties. A wholly-owned subsidiary of Conestoga Bancorp, Conestoga Bank is headquartered in Chester Springs, Pennsylvania.  Asset size: 700 Million

 Bankwerx is Conestoga Bank’s vision for the future of branch and retail banking.

 Complete branch transformation (Philadelphia)  Redesign traditional branch into modern technology- infused branch of the future  Physical branch size reduced by 20%  Personal Teller Machines (PTMs) replace teller lines  Staffing Model ◦ Staff reduction – efficiencies gained ◦ Sales-focused (Street Team created)  Leverage technologies to meet shifting consumer preferences

 Target Audience ◦ Millennials ◦ Tech-savvy, upwardly mobile consumers  Product Offerings ◦ Focus on core deposit accounts – featuring eChecking ◦ Recent launch of Conestoga Bank Prepaid Debit Card  Service Solutions ◦ In-branch: PTMs, self-service account opening, and video conferencing ◦ Online: online banking, mobile banking, mobile deposit

 Existing Customers ◦ High customer retention rate ◦ Easy adoption of technology – PTMs  New Customer Growth - (from June 2012 launch date to present) ◦ 31% increase in new customers (59% millennial age range) ◦ 77% increase in new account openings (41% millennial age range )  Marketing Strategies ◦ Blend of traditional and digital strategies ◦ Street Team – branch events and demographically targeted offsite events

 Pilot concept outside existing market ◦ Launch in areas abundant in target demographics ◦ Create exclusive products  Opportunities for greater efficiencies ◦ Physical site – potentially could have reduced size by closer to 50% ◦ Staffing – reduced staff by 1 FTE. However, as more Bankwerx branches come online, potential to reduce in-branch staff even greater.