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Lincoln Financial - Press Releases - LFG Applies to Become Savings and Loan Holding Company

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This document is dated November 17,


2008. It may not be accurate after such

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Forward-Looking Statements — Cautionary Language



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Lincoln Financial Group Applies to Become Savings and Loan Holding Company
PHILADELPHIA, November 17, 2008 — Lincoln Financial Group (NYSE: LNC) today announced
that it has applied with the Office of Thrift Supervision to become a savings and loan holding
company concurrent with reaching an agreement to acquire Newton County Loan & Savings, FSB, a
federally regulated savings bank. Subject to customary terms and conditions, the acquisition of
Newton County Loan & Savings, FSB, is expected to close following receipt of approval from the
Office of Thrift Supervision. The company also filed an application with the U.S. Treasury to
participate in the TARP Capital Purchase Program (TARP CPP).
Lincoln Financial's applications to become a savings and loan holding company and to participate in
the TARP CPP are subject to approvals from the Office of Thrift Supervision and the U.S. Treasury.
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its
affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group
had assets under management of $200 billion as of September 30, 2008. Through its affiliated
companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k)
and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and
comprehensive financial planning and advisory services. Affiliates also include: Delaware
Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and
Lincoln UK. For more information, including a copy of our most recent SEC reports containing our
balance sheets, please visit
For more information:
Investor Contacts:
Jim Sjoreen
484 583-1420
Media Contact:
Laurel O'Brien
484 583-1735

Forward Looking Statements — Cautionary Language
Certain statements made in this release and in other written or oral statements made by Lincoln or
on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a
historical fact and, without limitation, includes any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain words like: "believe",
"anticipate", "expect", "estimate", "project", "will", "shall" and other words or phrases with similar
meaning in connection with a discussion of future operating or financial performance. In particular,
these include statements relating to future actions, trends in our businesses, prospective services or
products, future performance or financial results, and the outcome of contingencies, such as legal
proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking
statements provided by the PSLRA.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ
materially from the results contained in the forward-looking statements. Risks and uncertainties that[1/16/2015 5:04:03 PM]

Lincoln Financial - Press Releases - LFG Applies to Become Savings and Loan Holding Company
may cause actual results to vary materially, some of which are described within the forward-looking
statements include, among others:


Continued deterioration in general economic and business conditions, both domestic and
foreign, that may affect foreign exchange rates, premium levels, claims experience, the level of
pension benefit costs and funding and investment results;
Continued economic declines and credit market illiquidity could cause us to realize additional
impairments on investments and certain intangible assets including a valuation allowance
against deferred tax assets, which may reduce future earnings and/or affect our financial
condition and ability to raise additional capital or refinance existing debt as it matures;
Uncertainty about the effectiveness of the U.S. Treasury's Troubled Asset Relief Program
Capital Purchase Program and our ability to participate in the program;
Legislative, regulatory or tax changes, both domestic and foreign, that affect the cost of, or
demand for, Lincoln's products, the required amount of reserves and/or surplus, or otherwise
affect our ability to conduct business, including changes to statutory reserves and/or risk-based
capital requirements related to secondary guarantees under universal life and variable annuity
products such as Actuarial Guideline VACARVM; restrictions on revenue sharing and 12b-1
payments; and the potential for U.S. Federal tax reform;
The initiation of legal or regulatory proceedings against Lincoln or its subsidiaries, and the
outcome of any legal or regulatory proceedings, such as: (a) adverse actions related to present
or past business practices common in businesses in which Lincoln and its subsidiaries compete;
(b) adverse decisions in significant actions including, but not limited to, actions brought by
federal and state authorities and extra-contractual and class action damage cases; (c) new
decisions that result in changes in law; and (d) unexpected trial court rulings;
Changes in interest rates causing a reduction of investment income, the margins of Lincoln's
fixed annuity and life insurance businesses and demand for Lincoln's products;
A decline in the equity markets causing a reduction in the sales of Lincoln's products, a
reduction of asset-based fees that Lincoln charges on various investment and insurance
products, an acceleration of amortization of deferred acquisition costs, value of business
acquired, deferred sales inducements and deferred front-end loads and an increase in liabilities
related to guaranteed benefit features of Lincoln's variable annuity products;
Ineffectiveness of Lincoln's various hedging strategies used to offset the impact of changes in
the value of liabilities due to changes in the level and volatility of the equity markets and interest
A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates
or equity market returns from Lincoln's assumptions used in pricing its products, in establishing
related insurance reserves and in the amortization of intangibles that may result in an increase
in reserves and a decrease in net income, including as a result of stranger-originated life
insurance business;
Changes in GAAP that may result in unanticipated changes to Lincoln's net income, including
the impact of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements,"
and SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities;"
Lowering of one or more of Lincoln's debt ratings issued by nationally recognized statistical
rating organizations and the adverse impact such action may have on Lincoln's ability to raise
capital and on its liquidity and financial condition;
Lowering of one or more of the insurer financial strength ratings of Lincoln's insurance
subsidiaries and the adverse impact such action may have on the premium writings, policy
retention and profitability of its insurance subsidiaries;
Significant credit, accounting, fraud or corporate governance issues that may adversely affect
the value of certain investments in the portfolios of Lincoln's companies requiring that Lincoln
realize losses on such investments;
The impact of acquisitions and divestitures, restructurings, product withdrawals and other
unusual items, including Lincoln's ability to integrate acquisitions and to obtain the anticipated
results and synergies from acquisitions, including Lincoln's ability to successfully integrate
Jefferson-Pilot's businesses, to achieve the expected synergies from the merger or to achieve
such synergies within our expected timeframe;
The adequacy and collectibility of reinsurance that Lincoln has purchased;
Acts of terrorism, war or other man-made and natural catastrophes that may adversely affect
Lincoln's businesses and the cost and availability of reinsurance;
Competitive conditions, including pricing pressures, new product offerings and the emergence of
new competitors, that may affect the level of premiums and fees that Lincoln can charge for its
The unknown impact on Lincoln's business resulting from changes in the demographics of
Lincoln's client base, as aging baby-boomers move from the asset-accumulation stage to the
asset-distribution stage of life; and
Loss of key management, portfolio managers in the Investment Management segment, financial
planners or wholesalers.
The risks included here are not exhaustive. Lincoln's annual report on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC include
additional factors which could impact Lincoln's business and financial performance. Moreover,
Lincoln operates in a rapidly changing and competitive environment. New risk factors emerge from
time to time and it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the impact of all risk factors on Lincoln's business or the extent
to which any factor, or combination of factors, may cause actual results to differ materially from[1/16/2015 5:04:03 PM]

Lincoln Financial - Press Releases - LFG Applies to Become Savings and Loan Holding Company
those contained in any forward-looking statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a prediction of actual results. In
addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events
or circumstances that occur after the date of the release.
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Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.

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