AFC First Financial Corporation May 31, 2011 Peter Krajsa, Chairman and CEO

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1 The NEW Keystone HELP: Simplified. Sales Ready. AFC First Financial Corporation May 31, 2011 Peter Krajsa, Chairman and CEO

2 AFC First A National Leader In Energy Efficiency Lending AFC First Financial Corporation is an experienced specialty energy efficiency lender and the provider of the EnergyLoan program. Founded in 1947 in Allentown, PA. AFC has processed over 50,000 energy efficiency loan applications. Retail contractor-driven energy lending to consumers has been primary business since AFC First is one of only three Fannie Mae approved Energy Lenders in the nation. Currently lending in 24 states with over 3,000 Approved Contractors, Manufacturer, Utility and State and Municipal Partners

3 AFC First A National Leader In Energy Efficiency Lending AFC First Financial s key energy efficiency services Contractor Recruitment, Screening and Training Loan Application Intake and Processing Loan Servicing, Off and On Bill Rebate Processing Payments to Approved Contractors including Verification of Satisfactory Completion Installed Equipment and Energy Savings tracking BPI,RESNET and Contractor Certification through new Green Energy Training Center programs (Awarded Rockefeller Foundation Grant) Home Performance Program Management (PA Home Energy)

4 Rapid and Sustained Growth in Energy Lending

5 AFC s National Programmatic Expansion National EnergyLoan Platform PA s Keystone HELP Energize Delaware Maryland EnergyLoan Greater Cincinnati Energy Alliance Illinois On Bill Finance Program Kentucky Home Performance Finance Efficiency Maine PACE program CT Solar Lease CT Energy Efficiency Loan Program Progress Energy National Grid Arizona Selected as one of 18 pilot Power Saver Lenders

6 PA s Keystone HELP (Home Energy Loan Program) One of the most successful state sponsored consumer energy efficiency finance programs in the nation Over 8,000 loans and close to $65 million funded since 2006 with rapidly increasing consumer demand A model DOE and EPA program and a principal prototype for the proposed federal Home Star program as it addresses both reactive and proactive energy improvement needs Based on a pilot started by the West Penn Power Sustainable Energy Fund it has involved into a unique public-private partnership which leverages loan capital provided by PA Treasury and PHFA with DEP (ACT 1 and ARRA) funds to provide greatest incentives

7 Keystone HELP Loans by County

8 Keystone HELP Annual Loan Growth

9 Pennsylvania s Keystone HELP Enhanced By EnergyWorks Core Loan Capital PA Treasury PA Housing Finance Agency Loss Reserve/Rate Buydowns PA DEP EnergyWorks Contractor Management/Loan Origination & Servicing AFC First Financial Corp. ECA (EnergyWorks) Approved Contractors Homeowner

10 Program Dollars for Loss Reserves and Other Incentives Promote Private Capital Investment

11 Two Types of Energy Efficiency Customers REACTIVE PROACTIVE

12 Like Home Star, Financing Programs Should Not Exclude, But Rather Incent Consider Tiered Financing Approach which accommodates both Reactive and Proactive Consumers Don t exclude the consumer who wants to install an ENERGY STAR or high efficiency improvements but doesn t have time to go through the whole audit protocol But provide lower interest rate to the consumer who will do the Whole house improvement program Contractors have to buy in to the ease of the program and can t be put off by complexity need to accommodate their customers Use simple, consumer recognized national standards such as ENERGY STAR for equipment standards no need to reinvent the wheel or confuse the market

13 Who is Eligible? Pennsylvania homeowners who: Own and are making qualifying improvements to their primary residence located in Pennsylvania and; Whose combined annual household income is $150,000 or less The Keystone HELP R&R ENERGY STAR Loan, Geothermal Loan (or other AFC First non Keystone HELP loans) may be available for homeowners whose income exceeds $150,000 please contact us for details. Improvements must be made to 1 to 2 unit owner-occupied dwellings. Work under the secured Whole House Improvement Loan or Renovate and Repair ENERGY STAR Loan programs must be done on a 1-2 unit owner occupied, deeded property. If you are applying for financing under the Keystone HELP program, you must meet the credit eligibility standards of the program.

14 Who Can Perform the Work? Approved Contractors authorized to perform work under the standard Energy Ehave been reviewed for financial and ethical stability and are currently fficiency programs. Will end September 30, You must be either Trained or Certified after that date. Trained Contractors are Approved Contractors who have undergone additional training on building science and Whole House energy improvements (HP 101), and are currently authorized to perform work under all unsecured Energy Efficiency and Geothermal loan programs. If they are performing work under the Secured Whole House Improvement Loan program, they must be working under a Certified Auditor who provides on-site oversight of their work. Will be minimum standard after September 30, Certified Contractors are Approved Contractors who have achieved BPI (Building Performance Institute) certification or accreditation. Certified Contractors are authorized to perform work under all loan programs.

15 What s New with Keystone HELP as of May 31? Great New Simplification and Replacement of "CAPP Scorecard/Points" with a Simple Checklist for 2.99% Financing Statewide (0.99% in Southeast Pennsylvania through EnergyWorks and in the City of Allentown) for Energy Improvements with Air Sealing and Insulation (BPI Only) You Can Now Combine Keystone HELP Financing with All Utility, Manufacturer and Other Rebates (Including Act 129) For the Most Affordable "Price Package" for The Customer! Continued Low Rate 7.99%/8.99% Unsecured Financing Statewide (4.99%/5.99% in Southeast Pennsylvania through EnergyWorks and in the City of Allentown) for stand alone EN ERGY STAR Heating, Cooling, Windows, Doors, Insulation and More 4.99% for Geothermal Heat Pumps, plus No Payments for 12 Months" Optional Additional Tax Credit Anticipation Loan Larger Secured Loans to $35,000 for Whole House, Solar and Major Energy Improvements to 120% LTV - Pennsylvania's PowerSaver-type program

16 What Improvements Are Eligible? ENERGY STAR rated Heating and Cooling (All Fuels) ENERGY STAR Water Heaters, Fans, Thermostats ENERGY STAR Closed Loop Geothermal Above must be listed on energystar.gov or ARI certified as ENERGY STAR Air Sealing (Whole House) and Insulation to Program Standards ENERGY STAR Windows and Doors Must have a NFRC label with U-Factor <=.30 Recommendations of a Certified Energy Audit with sufficient predicted energy savings Entire job can be financed if at least 75% of the work is for eligible improvements. Improvements not qualifying for Keystone HELP may be eligible for other financing programs at different rates and terms.

17 New Simple CAPP Checklist The Scorecard Has Been Eliminated!

18 Statewide Energy Efficiency Loan Programs Including NEW BPI- Only CAPP program

19 Special Rates for Southeast Pennsylvania And Also City of Allentown

20 Special Geothermal Loan Program

21 EnergyLoan Programs for non-keystone HELP qualifying including SOLAR

22 Program Delivery Accept Applications Online via program website Through Integrated App on Contractors Website Call Center and Toll Free Numbers Utility Link and Call Center Direction

23 AFC First A National Leader In Energy Efficiency Lending AFC FIRST KEYSTONE HELP CONTACTS Tessa Shin Ken Yeager Bob Groegler Jeff Kadas Peter Krajsa John Hayes Julie Unger Director, Keystone HELP Program Manager VP of Business Development Business Development Manager Director, Marketing & Programs Chairman and CEO President and COO VP of Operations (610) keystonehelp.com afcfirst.com