Great Bear to Defer Bank Charter, Will Expand Energy Efficiency, Solar and Commercial Financing Operations

LEHIGH VALLEY, PA December 8, 2008 Great Bear Financial will focus its growth on its rapidly expanding energy efficiency and renewable energy lending business and will defer the opening of a proposed retail bank.

This decision was reached after thorough analysis regarding the uncertainty of the current historically unstable banking climate which has resulted in a virtual moratorium on new community bank charters around the country as well as the great likelihood of far more onerous regulation and costs being imposed on banks in the future.

Great Bear Financial is an expansion of AFC First Financial Corporation, an Allentown-based financial institution founded in 1947 which specializes in energy efficiency and renewable energy lending in twelve Northeast and Mid-Atlantic states from Maine to Virginia. AFC First’s energy lending business has been growing at close to 25% annually for the past several years. Its energy loan servicing portfolio is approaching $20 million and it continues to expand its exclusive programs for the states of Pennsylvania (www.keystonehelp.com) and Connecticut (www.ctsolarlease.com) as well as energy efficiency and solar financing program with utilities such as National Grid (www.nationalgrid.energyloan.net) and Duke Energy among others. AFC First bears little or no credit loss recourse for the majority of these programs, and its loan portfolios continue to perform well ahead of national averages. AFC First Financial Corporation will now trade as Great Bear Financial and continue to exist as an independent company. The Board of Directors of Great Bear Financial is comprised of Peter Krajsa, John M. Hayes, Elizabeth Socci CPA, Alan Leahey MD, Kurt Koehler, Michael Seislove, Michael Harned and Carl Billera.

“We continue to see tremendous opportunities for growth in energy related lending, particularly through our partnerships with states and utilities which have been promoting and subsidizing many of our programs as well as in the solar and “whole house” energy improvement markets,” said Peter Krajsa, Chairman and CEO. “In today’s credit environment it is imperative that a lender have a sustainable specialty niche that it thoroughly understands. Great Bear/AFC First is considered a national leader in the energy finance market with a network of over 1,600 approved contractors, manufacturers and utilities offering our financing programs. To meet their increasing demand we have expanded both our residential and commercial financing initiatives as well as our geographic footprint. The bank charter would have provided some administrative efficiencies for us, but deferring it has no impact on the growth of our core energy business”

The bank charter was contemplated to allow Great Bear further opportunities for growth as a community bank. “We ran a successful capital raising campaign and had a strong business plan in place when we started the regulatory approval process. However, we are in unprecedented times, and in our view now is not the right time to start a bank,” said John M. Hayes, Great Bear’s President. “To our knowledge, no new community bank charters have been granted by the FDIC since the beginning of the current financial turmoil. It is also unclear as to when approvals will restart and what additional fees, increased deposit insurance premiums and other compliance requirements will be imposed on new banks. Regulators appear to be favoring consolidation into a small number of larger banks, rather than the creation of new community banks, and you have witnessed the “bailout” of many of these larger institutions. We strongly believe in the community banking model, particularly in our target market in western Lehigh and eastern Berks counties. We may re-consider the charter at a later date, if and when regulatory support shifts back in favor of community banks.”

Great Bear will operate from its headquarters in the Great Bear Center office complex on Brookside Road in Lower Macungie Township. It also maintains offices in New Jersey, Connecticut and Maryland. In addition to its energy lending business it will offer residential mortgage, commercial leasing and other financial services in the Lehigh Valley and eastern Berks County. Traditional banking services will be made available from a yet to be named bank which will occupy the branch location in Great Bear Center.

For further information contact Peter Krajsa, pkrajsa@afcfirst.com or John M. Hayes, jhayes@afcfirst.com (610)-433-7486