1. Annual Meeting of Shareholders April 25, 2007

2. 2006 Highlights  Formation of an Equipment Leasing Company  Construction and Opening of Ardmore Branch  New Loan Production Office in West Chester  Newtown Square and Exton Results  Matt Waschull joins Executive Management Team  Excellent financial performance!

3. 20062005Change Net Income$12.7 mil$11.3 mil+12.0% Diluted EPS$1.46$1.31+11.5% Total Assets$827 mil$727 mil+13.7% Financial Highlights

4. 20062005Change ROE15.7%15.4%+20 bps ROA1.72%1.66%+6 bps Financial Highlights

16. Stock Performance – 1/1/06 – 1/1/07

17. Challenges for 2007 and Beyond  Flat yield curve is affecting net interest margins  Fierce competition for deposits  Deposit pricing pressures  Philadelphia area is “over-banked”

18. How do we meet these challenges?

19.  Concentrate on lines of business where we can effectively compete ~ Business Banking ~ Wealth Services ~ Private Banking  Expand the footprint of the Bank  Obsession with “client service”  Aggressive sales culture  Focus on expenses

20. Major Initiatives for 2007  Formation of a Private Banking Group  Build new regional office in West Chester  Re-tool the Wealth Management Group ~ People ~ Investment platform  Remote Deposit Capture program  Support rapid growth of the equipment leasing company