#1Acquisition of Northpoint Commercial Finance A Leading North American Inventory Finance Lender May 18, 2017 LAURENTIAN BANK laurentianbank.ca#2D Disclaimer & Prospectus Information This presentation has been prepared by Laurentian Bank of Canada (Laurentian Bank or the Bank) solely for information purposes. Recipients of this presentation may not reproduce or otherwise redistribute, in whole or in part, the presentation to any other person. Prospectus Information A final base shelf prospectus of Laurentian Bank dated December 20, 2016 containing important information relating to the securities described in this document has been filed with the applicable securities regulatory authorities in each of the provinces of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document (collectively, the Prospectus). This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the 1933 Act), or any state securities laws and may not be offered or sold in the United States, except in transactions exempt from the registration requirements of the 1933 Act and applicable state securities laws. The Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States. No Investment Advice This presentation is not, and is not intended to be, an advertisement, prospectus or offering memorandum, and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by readers in connection with, the purchase of or investment in any securities of any entity. This presentation accordingly should not be treated as giving investment advice and is not intended to form the basis of any investment decision. It does not, and is not intended to, constitute or form part of, and should not be construed as, any recommendation or commitment by the Bank or any of its directors, officers, employees, direct or indirect shareholders, agents, affiliates, advisors or any other person, or as an offer or invitation for the sale or purchase of, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities, businesses and/or assets of any entity, nor shall it or any part of it be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever. Readers should not construe the contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters. No Reliance This presentation does not purport to be comprehensive or to contain all the information that a recipient may need in order to evaluate the transaction or entities described herein. No representation or warranty, express or implied, is given and, so far as is permitted by law and no responsibility or liability is accepted by any person, with respect to the accuracy, fairness or completeness of the presentation or its contents or any oral or written communication in connection with the transaction described herein. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed for any purpose whatsoever on any projections, targets, estimates or forecasts or any other information contained in this presentation. In providing this presentation, Laurentian Bank does not undertake any obligation to provide any additional information or to update or keep current the information contained in this presentation or any additional information or to correct any inaccuracies which may become apparent. External Information Where this presentation quotes any information or statistics from any external source, it should not be interpreted that the Bank has adopted or endorsed such information or statistics as being accurate. We advise you that some of the information presented herein is based on or derived from statements by third parties, has not been independently verified by or on behalf of the Bank, and that no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or any other information or opinions contained herein, for any purpose whatsoever. Key Assumptions Unless otherwise stated, US$ converted to C$ at currency exchange rate of 1.36 throughout this presentation. 2#3Caution Regarding Forward Looking Statements In this document and in other documents filed with Canadian regulatory authorities or in other communications, Laurentian Bank of Canada may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements include, but are not limited to, statements regarding the Bank's business plan and financial objectives. The forward-looking statements contained in this document are used to assist readers in obtaining a better understanding of the Bank's financial position and the results of operations as at and for the periods ended on the dates presented and may not be appropriate for other purposes. Forward-looking statements typically use the conditional, as well as words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. Some of the specific forward-looking statements in this document include, but are not limited to, statements with respect to the expected timing and completion of the acquisition described herein, the anticipated sources of financing thereof (including the related equity financings (collectively, the "Equity Financing")); the fact that closing of the acquisition is subject to certain conditions; anticipated benefits of the acquisition, including the expected impact on the Bank's size, operations, capabilities, development, growth drivers and opportunities, geographic reach, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the expected impact of the acquisition on the Bank's and/or NCF's earnings per share and margins, as well as anticipated accretion thereto; projected NCF net interest margins; expectations regarding the Bank's business model, transformation plan and strategy, the maintenance of the Bank's Basel III Common Equity Tier 1 ratio, the retention of NCF management and employees and the strategic fit and complementarity of NCF with the Bank; anticipated revenue synergies and estimated transaction and integration costs and the timing of incurrence thereof. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other forward-looking statements will not be achieved or will prove to be inaccurate. Although the Bank believes that the expectations reflected in these forward- looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Certain important assumptions by the Bank in making forward-looking statements include, but are not limited to: the satisfaction of all conditions to the completion of Acquisition and the related Equity Financing within the anticipated timeframe; the maintenance of the Bank's Basel III Common Equity Tier 1 ratio; the Bank's ability to execute its transformation plan and strategy; the successful and timely integration of the Bank and NCF and the realization of the anticipated benefits and synergies of the acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; the ability to retain management and key employees of NCF; desired attributes of an equipment finance platform; the growth potential in the equipment finance niche market; the ability of the Bank to access the capital markets; the absence of significant undisclosed costs or liabilities associated with the acquisition; the absence of significant changes in foreign currency exchange rates or significant variability in interest rates; the ability to hedge exposures to fluctuations in interest rates and foreign exchange rates; the expectation of regulatory stability; no downturn in economic conditions; sufficient liquidity and capital resources; no material changes in competition, market conditions or in government monetary, fiscal and economic policies; and the maintenance of credit ratings. The Bank cautions readers against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various material factors. Among other things, these factors include: the failure or delay to receive or fulfill regulatory approvals and notifications or otherwise satisfy the conditions to the completion of the acquisition or the Equity Financing; potential undisclosed costs or liabilities associated with the acquisition; historical and pro forma consolidated financial information may not be representative of future performance; reputational risks and the reaction of the Bank's and NCF's personnel and customers to the transaction; the failure to realize, in the timeframe anticipated or at all, the anticipated benefits and synergies of the acquisition; factors relating to the integration of the Bank and NCF, diversion of management time and unanticipated costs of integration; the Bank's limited experience in the U.S. market and in inventory financing; difficulties in the operation of the Bank's transformation plan and in particular the reorganization of retail branches, the modernization of the core banking system and adoption of the Advanced Internal Ratings-Based approach to credit risk; exchange rate risk; foreign currency exposure risk; changes in capital market conditions, changes in government monetary, fiscal and economic policies, changes in interest rates, inflation levels and general economic conditions, legislative and regulatory developments, changes in competition, adverse modifications to credit ratings, scarcity of human resources, and developments in the technological environment. The Bank further cautions that the foregoing list of factors is not exhaustive. For more information on the risks, uncertainties and assumptions that would cause the Bank's actual results to differ from current expectations, please also refer to the Management's Discussion and Analysis under the title "Risk Appetite and Risk Management Framework" in the Bank's Annual Report, as well as to other public filings available at www.sedar.com The Bank does not undertake to update any forward-looking statements, whether oral or written, made by itself or on its behalf, except to the extent required by securities regulations. 3#4Executive Summary ■ Laurentian Bank of Canada ("LBC") has entered into an agreement to acquire Northpoint Commercial Finance ("NCF"), a leading non-bank inventory finance lender with a portfolio of approximately $1.2 billion (US $0.9 billion) in assets NCF is a diversified player in the equipment finance sector, specialized in inventory financing with a broad US & Canadian presence, based in Alpharetta, Georgia, USA & Burlington, Ontario, Canada Founded in 2012 by former Textron Financial Corporation leaders, NCF's top management team has unique expertise and a solid track record of originating, growing and managing a multi-billion dollar inventory finance portfolio NCF's highly complementary activities will be combined with LBC Capital (within Business Services) to create a scalable end-to end equipment finance platform Transaction is expected to generate attractive margins and Bank believes this acquisition will be accretive to its EPS in the first full year of operation and by approximately 4% in 2019 Concurrent with the acquisition, the Bank has entered into agreements providing for equity financings of subscription receipts, in the amount of (i) $200 million on a "bought deal" basis with a syndicate of underwriters and (ii) $25 million on a private placement basis with the Caisse de dépôt et placement du Québec Acquisition is expected to close before the end of fiscal 2017, subject to customary closing conditions, including regulatory approvals Acquisition of NCF increases and diversifies Business Services in the Bank mix D#5NCF - A Leading Specialized Inventory Financing Lender ■ Well established non-bank leader in inventory financing with a broad US and Canadian presence • Head office based in Alpharetta, Georgia, USA • Canadian office in Burlington, Ontario, Canada ■ Operates in a large fragmented inventory finance market • North American inventory finance market is fragmented and totals approximately $280+ billion (US $200+ billion¹) The Bank believes the market presents significant growth opportunities ■ Founded in 2012 by a strong team of former Textron Financial Corporation professionals, under the leadership of Dan Radley . Over 25 years of average experience and strong client relationships with leading companies Strong professional and cultural fit Existing management expected to continue to operate the company post acquisition ■ Well diversified portfolio of equipment loans ◉ $1.2 billion (US $0.9 billion) as at March 31, 2017, with average outstanding lines of credit below $0.5 million (US $0.4 million) per dealer Relationships with > 300 manufacturers and > 2,000 dealers in 8 market segments Attractive portfolio metrics & strong credit profile Floating rate lines of credit with attractive net interest margins projected in the mid-single digit range Excellent underwriting standards with multiple sources of credit protection . Manufacturer repurchase and remarketing agreements • Dealer personal guarantees • Security interest on new equipment acquired at dealer cost 1. Average annual loss ratio of 19 bps since inception Source: Equipment Leasing and Finance Foundation, 2016-2017 US Equipment Finance Market Study Portion of the equipment finance market financed through lines of credit used as a proxy for inventory finance 5#6D Well Diversified Business Market Segment Diversification 1 4% 3% 3% 2% Dealer Credit Lines Diversification1 (based on authorized size) Marine ■RV 31% 13% 14% 30% Trailers Mftd Housing Light Construction Power Sports Tech/Electronics Outdoor Power Larger exposures reflect market segments at inception Smaller exposures reflect recent entries into market segments Geographic Diversification1 3% 20% 11% 18% 20% $2M+ $1-$2M 13% $750k-$1M $500-750k 4% $250-500k $100-$250k 11% $50-$100k $0-$50k Average authorized size of credit line is $0.8 million Average outstanding credit line is $0.5 million Dealer Diversification1 Receivables % Total Balance State/Province ($M) Receivables Top 10 Dealers ($M) % of Receivables Texas 97.7 7.9% Dealer 1 34.4 2.8% Florida 84.6 6.9% Dealer 2 19.2 1.6% Michigan 70.0 5.7% Dealer 3 18.6 1.5% California 69.7 5.7% Dealer 4 15.3 1.2% Alabama New Jersey Washington Ohio New York North Carolina States 11-20 States 21-50 Subtotal - U.S. Ontario 46.4 3.8% Dealer 5 14.4 1.2% 37.7 3.1% Dealer 6-10 Avg. 11.7 Avg. 0.9% 37.4 3.0% Top 10 Total 113.6 13.0% 36.3 2.9% 34.0 2.8% 33.0 2.7% 281.6 22.8% 277.3 22.5% 1 105.5 89.7% 32.8 2.7% Subtotal - Canada Total Receivables 127.5 10.3% 1 233.0 100.0% 1 Figures as of March 31, 2017 6#7Strong Strategic Fit & Highly Complementary to LBC Capital Equipment Finance Value Chain Growth Drivers Manufacturers Equipment Dealers Equipment End-Users Cross-sell opportunities D Inventory Finance Loans & Leases Cross-Sell NORTHPOINT Opportunities LBC CAPITAL COMMERCIAL FINANCE Increased penetration within dealer base New dealers within existing manufacturer base New manufacturers New/complementary / adjacent product lines Complementary offering provides attractive growth opportunities 7#8The making of LBC Capital - Strategic and Targeted Desired Attributes of an Equipment Finance Platform Team & Expertise Leasing Capability Inventory Finance Capability Scale Brand Awareness Systems / Processes Footprint to Support North American Manufacturers 2014 2016 CIT. 2017 NORTHPOINT Now LBC CAPITAL COMMERCIAL FINANCE Cdn Equipment Financing activities LBC Capital to become an end-to-end equipment finance platform for North American manufacturers and their dealer networks 8#9Aligned with our Transformation Plan Objectives Increase Business Services in Bank mix $ Cdn Loans to Business Customers Grow by more than 60% to $13B by 2019 2015 $8.0B Q1/17 $10.1B NCF 2016 $10.0B Pro forma $11.3B 2019 $13.0B Acquisition of NCF activities adds approximately $1.2 billion of diverse and attractive yielding assets to Business Services, advancing towards our 2019 target of $13.0 billion • 12% increase in the Business Services portfolio to $11.3 billion pro forma from $10.1 billion in Q1 2017 Business Services loans within the Bank mix increases from 30% in Q1 2017 to 32% pro forma Growth Propelled by the Equipment Finance Specialty within Business Services 21% D 11% $2.3B 4% NCF $1.1B 1% CIT $0.3B $0.1B 2014 2015 2016 Pro forma Q1-2017 Equipment Finance Equipment Finance as % of Business Services 6#10Attractive Financial Profile Valuation Consideration Impact on Capital Synergies and Costs Accretion • . • • • Purchase price based on the book value of equity plus a premium Favourable premium compared to recent comparable transactions Issuing $225 million of subscription receipts at $51.70. The subscription receipts will be exchangeable into common shares of the Bank upon closing of the acquisition Bank's current liquidity position to fund remainder of the assets Based on anticipated assets at the close of the transaction and giving effect to the related equity issuance, it is expected that the Bank's pro forma CET1 ratio would be maintained within the guided 7.8% to 8.2% range Revenue synergies anticipated to be realized over time through cross-selling between existing NCF / LBC customers Approximately $6 million of transaction and integration costs are currently expected with a substantial portion to be incurred by the end of calendar 2017 Attractive margins that should be accretive, with the Bank's lower cost of funds expected to have a positive impact on Northpoint's margins ⚫ Bank believes this acquisition will be accretive to its EPS in the first full year of operation and by approximately 4% in 2019 10#11Investor Relations Contact Susan Cohen Director, Investor Relations (514) 284-4500, ext. 4926 [email protected]