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Exhibit 5
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UST CORP.
TUCKER ANTHONY INC.
NORTHEAST FINANCIAL SERVICES CONFERENCE
DECEMBER 15, 1997
Neal F. Finnegan
Chief Executive Officer
James K. Hunt
Chief Financial Officer
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UST Corp. - Investor Presentation...
This presentation contains statements which are forward-looking in
nature, such as references to strategic plans and expectations. These
forward-looking statements are inherently uncertain, and actual results
may differ from Company expectations. Risk factors that could impact
current and future performance include but are not limited to: changes in
asset quality; adverse changes in the economy of the Company's primary
market; adverse changes in collateral values; fluctuations in market
rates and prices which can negatively affect net interest margin, asset
valuations and expense expectations; and changing requirements of federal
and state bank regulatory agencies that could materially impact future
operations of the Company.
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UST Corp. - Recent Developments...
- Announcement of Two Significant Bank Acquisitions:
- Affiliated Community Bancorp, Inc. (12/15/97); $1.1 billion
- Somerset Bank (12/10/97); $520 million
- Firestone Financial Corp. Acquisition (10/15/97); $85 million
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UST Corp. - Recent Developments...
- Completed Walden Bancorp Acquisition:
- Merger of Walden subsidiaries into USTrust (Q2 '97)
- Conversion to USTrust operating systems
- Addition of $1 billion of banking resources
- Integration of Branch Purchase (Q1 '97 and Q4 '96)
- Twenty former BayBank/Bank of Boston branches
- Deposit acquisition and loan purchase
- Addition of $744 million of banking resources
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UST Corp. - A More Attractive Franchise...
- Asset base increases to over $5 billion
- Continued in-market Metropolitan expansion
- Strong market demographics (Middlesex County)
- Improved leverage and efficiency opportunities
- Accretive to earnings after reasonable save assumptions
- In-market branch consolidations
- Operational leverage
- Back room synergies
- Adds to equity capital; accretive to book value
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UST Corp. - Greater Market Access...
The increase to 83 branches provides UST with greater access to both
Businesses and Consumer Households located within the Boston SMSA:
- UST has branches in 9 of the top 10 and 17 of the top 20 Business
Markets
- UST coverage has increased to over 50% of the 120,000 Businesses
located in Zip Codes within the Boston SMSA
- UST coverage has increased to over 52% of the one million Consumer
Households located in Zip Codes within the Boston SMSA
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A Stronger Market Presence...
Branch Locations
by County USTB SOSA AFCB Pro Forma
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Middlesex 27 5 12 44
Norfolk 20 0 0 20
Suffolk 13 0 0 13
Essex 4 0 0 4
Plymouth 2 0 0 2
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Total 66 5 12 83
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UST Corp. - AFCB Transaction Analysis...
Terms Exchange Ratio: 1.41 USTB shares per AFCB share
No collars
19.9% Stock Option granted to USTB
Walkaway provisions
Accounting/Tax Pooling of Interests; Tax free exchange
Due Diligence Completed
Approvals Shareholders of each corporation
Federal Reserve
Commissioner of Banks
Targeted Closing First Half, 1998
Board Composition 5 AFCB directors added to USTB Board
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UST Corp. - AFCB Transaction Analysis (Continued)...
One-Time Charges
- Investment Bankers
- Data processing contract penalty,
conversion and deconversion
- Direct Mail, Checkbooks, etc. = $12 million
- Legal, accounting and regulatory
- Compensation/severance/stay-bonus
- Contingency
Potential Saves
- Branch consolidations
- Duplicate internal functions 27% saves needed
- (directors, back room, etc.) = to equal break-even
- Duplicate external functions based on 1998
(external audit, legal, insurance, etc.) analyst estimates
- Leverage
(EDP, marketing, etc.)
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UST Corp. - SOSA Transaction Analysis...
Terms Exchange Ratio: 0.19 USTB shares per SOSA share
No collars
16.7% Stock Option granted to USTB, plus
additional consideration
Accounting/Tax Pooling of Interests; Tax free exchange
Due Diligence Completed
Approvals Shareholders of SOSA
FDIC
Commissioner of Banks
Targeted Closing First Half, 1998
Board Composition 1 SOSA director added to USTB Board
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UST Corp. - SOSA Transaction Analysis (Continued) ...
One-Time Charges
- Investment Bankers
- Data processing contract penalty,
conversion and deconversion
- Direct Mail, Checkbooks, etc. = $6.0 - $7.5 million
- Legal, accounting and regulatory
- Compensation/severance/stay-bonus
- Asset quality provisions
- Contingency
Potential Saves
- Branch consolidations 18% SOSA saves
- Duplicate internal functions = needed to
(directors, back room, etc.) break-even
- Duplicate external functions based on 1998
(external audit, legal, insurance, etc.) fully-taxed
- Leverage analyst estimates
(EDP, marketing, etc.)
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UST Corp. - Company Profile...
9/30/97
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(In millions, except per share data) USTB* SOSA AFCB Forma
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Total assets $3,776 $ 520 $1,129 $5,425
Total earning assets $3,564 $ 493 $1,087 $5,144
Total deposits $2,864 $ 458 $ 703 $4,025
Equity capital $ 329 $ 34 $ 110 $ 473
Total shares outstanding
Period End (9/30/97) 29.8 16.7 6.5 42.4
Weighted Average 30.2 16.9 6.7 42.9
Book value per share $11.02 $2.06 $17.21 $11.16
Equity to Assets ratio 8.71% 6.54% 9.74% 8.72%
*Includes Firestone Financial Corp. acquired in October, 1997
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UST Corp. - Loan Profile...
9/30/97 Pro Forma
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(In millions) USTB* SOSA AFCB Dollars %
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Commercial and industrial $ 947 $ 21 $ 40 $1,008 26%
Commercial real estate $ 312 $166 $178 $ 656 17%
Residential real estate $ 736 $203 $469 $1,408 37%
Consumer/home equity $ 665 $ 7 $ 22 $ 694 18%
Lease financing $ 62 n/a n/a $ 62 2%
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Total Loans $2,722 $397 $709 $3,828 100%
* Includes Firestone Financial Corp. acquired in October, 1997
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UST Corp. - Deposit Profile...
9/30/97 Pro Forma
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(In millions) USTB SOSA AFCB Dollars %
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Noninterest bearing $ 619 $ 22 $ 47 $ 688 17%
NOW accounts* $ 42 $ 25 $ 57 $ 124 3%
Money market accounts* $ 629 $ 49 $ 75 $ 752 19%
Regular savings $ 662 $ 69 $121 $ 852 21%
Time certificates $ 912 $293 $404 $1,609 40%
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Total deposits $2,864 $458 $703 $4,025 100%
*Reflects overnight sweep of $316 million in NOW account balances to money
market accounts for USTB to reduce reserve requirements
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UST Corp. - Asset Quality/Reserve Adequacy
9/30/97
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(In millions) USTB* SOSA AFCB Forma
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Period end loans $2,722 $ 397 $ 709 $3,828
Nonaccrual loans $ 28.5 $ 3.9 $ 3.3 $ 35.7
Other real estate owned $ 1.2 $ 7.2 $ 0.0 $ 8.5
Reserve for possible loan losses $ 51.6 $ 7.4 $ 8.4 $ 67.4
Reserve to nonaccrual loans 181% 192% 252% 189%
Reserve to total loans 1.90% 1.87% 1.18% 1.76%
*Includes Firestone Financial Corp. acquired in October, 1997
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UST Corp. - Primary Objectives...
- - Deliver Q4 1997 Analyst estimate of $0.40 per share
- - Leverage existing franchise and improve efficiencies
- - Successful integration of pending acquisitions
- - Retain and grow "new" business (loans and deposits)
- - Maintain sound operating ratios (capital, asset quality, reserves)
- - Pursue accretive events (additive/synergistic)
- - Position USTB to maximize shareholder return
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USTB
[MIDDLESEX MARKET MAP]
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| - USTB |
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USTB, SOSA, AND AFCB
[MIDDLESEX MARKET MAP]
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| - USTB |
| - AFCB |
| - SOSA |
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USTB, SOSA, AND AFCB
[MIDDLESEX, ESSEX MAP]
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| - USTB |
| - SOSA |
| - AFCB |
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[UST CORP. LOGO]
AFFILIATED COMMUNITY BANCORP, INC. [SOMERSET BANK LOGO]