ENB Financial Corp · OTC:ENBP
ENB Financial — Debt Investor Presentation (December 2020)
44 slides from ENB Financial's debt investor presentation, Dec 30, 2020
Slide 1: December 2020 Subordinated Notes Offering Presentation
December 2020 Subordinated Notes Offering Presentation OTCQX: ENBP CONFIDENTIAL
Slide 2: Notice to Recipients
Notice to Recipients This confidential presentation (this “Presentation”) has been prepared solely for general informational purposes by ENB Finan cia l Corp (the “Company,” the “holding company,” “we” or “our”), and is being furnished solely for use by prospective participants in considering partic
Slide 3: Offering Disclaimer
Offering Disclaimer This Presentation has been prepared by the Company solely for informational purposes based on information regarding our opera tio ns, as well as information from public sources. This Presentation is for information purposes only and is being furnished on a confidential basis to a
Slide 4: Table of Contents
Table of Contents Executive Summary 5 I Management Team, Board of Directors & Ownership Information 14 II Assets Highlights 18 III Liabilities Highlights 28 IV Capital Highlights 32 V Income Statement Highlights 35 VI Appendix 42 VII 4
Slide 5: I. Executive Summary
|. Executive Summary ENB Financial Corp
Slide 6: Terms of the Offered Securities
Terms of the Offered Securities Issuer: ENB Financial Corp , holding company of Ephrata National Bank (the "Bank") Security: Subordinated Debt Principal Amount : $20 million Term: 10 - year, no - call 5 - year Coupon: Fixed [X]% for 5 years Floating at 90 day average SOFR + [X]% thereafter Optional
Slide 7: Company Overview
Company Overview Source: S&P Global Market Intelligence; Company provided financial information (unaudited) Note: 2020YTD financials as of September 30, 2020 Branch Map Corporate Overview Ephrata National Bank Regulatory Financials Ephrata National Bank (14) (dollars shown in thousands) 2017 2018 20
Slide 8: Markets Overview
Markets Overview Source: S&P Global Market Intelligence; Federal Reserve Economic Data (FRED); United States Census Bureau; Realtor.com (1) Results from a national survey on consumer sentiment conducted by the University of Michigan Market Statistics Market Highlights FDIC Deposit Data as of June 30
Slide 9: Investment Highlights
Investment Highlights Source: S&P Global Market Intelligence; Note: This slide includes certain Unaudited Financial Information (1) See page 10 for pro forma capital structure information (2) Performance Trust PT Score™. PT Score is described in further detail on page 12 Experienced Management Team
Slide 10: Pro Forma Capital Structure & Regulatory Capital Ratios
Pro Forma Capital Structure & Regulatory Capital Ratios $119,553 $12,262 $119,553 $20,000 $12,262 Common Equity Tier 1 Capital New Sub Debt ALLL Actual Sub Debt Pro Forma Bank Level Pro Forma Regulatory Capital 09/30/20 Adj. 09/30/20 Common Equity Before Adjustments 124,155$ 18,000$ 142,155$ Less: G
Slide 11: Pro Forma Interest Coverage
($ in thousands) 2020YTD Interest Coverage 2019 Annualized PF Consolidated Pre-Tax Earnings Consolidated Pre-Tax Income, Ex Budgeted Sub-Debt (1) 13,521 13,745 Debt Expense - - A Pre-Tax Earnings Before BHC Debt Interest Expense 13,521 13,745 BHC Debt Interest Expense B Total Interest Expense - Sub
Slide 12: Relative Risk Analysis – PT Score
Relative Risk Analysis – PT Score TM Source: Performance Trust PT Score Note: PT Score Overview using September 30, 2020 financial data Note : PT Score™ is a proprietary risk assessment system created using numerous call report based ratios selected by Performance Trust . PT Score™ is based on bank
Slide 13: Relative Risk Analysis – PT Score Pro-forma
Relative Risk Analysis – PT Score TM Pro - forma Source: Performance Trust PT Score Note: PT Score using September 30, 2020 financial data This analysis assumes a $20.0 million sub debt issuance at the holding company with $18.0 million of proceeds down - streamed to the bank as common equity capita
Slide 14: II. Management Team, Board of Directors & Ownership Information
II. Management Team, Board of Directors & Ownership Information 14
Slide 15: Experienced Management Team
Experienced Management Team Source: Company provided biographies Executive Years at ENB Years in Banking Biography Jeffrey Stauffer President, CEO and Chairman 38 38 Stauffer has had over 38 years of banking industry experience with Ephrata National Bank . Stauffer has held many roles at Ephrata Nat
Slide 16: Ownership Information
Ownership Information Source: ENB Proxy Statement dated April 3, 2020 with a Proxy Record Date of March 6, 2020 Holder Common Stock Equivalent Held (actual) Ownership (%) 5%+ Shareholders J. Harry Hibshman Scholarship Fund (c/o ENB Money Mgmt.) 1,785,600 31.82% Directors and Nominees Aaron L. Groff,
Slide 17: III. Assets Highlights
Ill. Assets Highlights ENB Financial Corp 7
Slide 18: Balance Sheet Growth
Balance Sheet Growth Source: S&P Global Market Intelligence Note: Financial data at bank - level Note: This slide includes certain Unaudited Financial Information Total Loans Total Assets ($ in millions) ($ in millions) $984 $1,033 $1,097 $1,171 $1,316 – $400 $800 $1,200 $1,600 2016Y 2017Y 2018Y 201
Slide 19: Investment Portfolio Composition & Performance
Investment Portfolio Composition & Performance Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information ( 1) As of September 30, 2020 per Company filed 10 - Q report Portfolio Management Statistics Asset Class Breakdown • The management of the investme
Slide 20: Loan Portfolio Diversification & Growth
$574 $600 $696 $756 $848 $- $200 $400 $600 $800 $1,000 2016Y 2017Y 2018Y 2019Y 2020Q3 Non Owner Occ. CRE , 4.2% C&I (excl. PPP) , 6.1% PPP , 7.7% Owner Occ. CRE , 10.3% 1 - 4 Family , 40.8% Constr & Land Dev , 2.6% Multifam , 1.6% Consumer , 0.6% Farm , 20.5% Ag. Prod. , 2.4% Other , 3.1% Loan Portf
Slide 21: Historical Loan Composition
Historical Loan Composition Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information Note : 2020YTD for the 9 months ended September 30, 2020 Ephrata National Bank Loan Composition Since 2015 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 2020Y
Slide 22: Loan Portfolio by NAIC Industry Code
Loan Portfolio by NAIC Industry Code Source: Company provided documents; data as of September 30, 2020 Note: This slide includes certain Unaudited Financial Information % of Tier 1 Industry Code Capital + ALLL (11) Agriculture, Forestry, Fishing and Hunting 167.40% (22) Utilities 15.49% (23) Constru
Slide 23: Loan Modifications Due to COVID
Loan Modifications Due to COVID - 19 Source: Company provided documents Note: This slide includes certain Unaudited Financial Information Date Loan Application Approved Applications Current Balance Original Balance 9/30/2020 Consumer Loans 32 211,688$ 245,983$ Res. Real Estate Loans HFI 43 8,665,130
Slide 24: Historical Net Charge-Offs & Non-Performing Assets
Historical Net Charge - Offs & Non - Performing Assets Source: S&P Global Market Intelligence Note: 2020YTD through September 30, 2020 Note: This slide includes certain Unaudited Financial Information Net Chargeoffs / Average Loans (%) 2015 2016 2017 2018 2019 2020 YTD Ephrata National Bank 0.04 -0.
Slide 25: Non-performing Assets Details
Non - performing Assets Details Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information Non - Accrual Loans by Type Commentary Since 2016, the Bank has never produced year - end NPA excluding restructured loans/ total assets ratio greater than 0.21% A
Slide 26: Asset Quality & Reserve Coverage Ratios
Asset Quality & Reserve Coverage Ratios Source: S&P Global Market Intelligence Note: 2020YTD for the 9 months ended September 30, 2020 Note: This slide includes certain Unaudited Financial Information Loan Loss Reserves / NPLs NCOs / Avg. Loans Loan Loss Reserves / Total Loans NPAs / Assets 0.07% 0.
Slide 27: IV. Liabilities Highlights
IV. Liabilities Highlights 27
Slide 28: Deposit Growth & Composition
Deposit Growth & Composition Source: S&P Global Market Intelligence; Deposit composition as of September 30, 2020 Note: This slide includes certain Unaudited Financial Information Deposit Trends Deposit Composition Transaction Accts , 13.9% Money Market , 52.5% Other Savings , 22.7% CDs > $100k , 3.
Slide 29: Regional Deposit Information
Regional Deposit Information Source: S&P Global Market Intelligence; Deposit composition as of June 30, 2020 Note: This slide includes certain Unaudited Financial Information 1 3 2 Lancaster, PA 2020 2020 2020 2020 Deposits Market Rank Institution (ST) Branches ($000s) Share (%) 1 Fulton Financial C
Slide 30: CD Repricing Opportunities
$37,645 $29,612 $20,900 $8,813 $25,654 – $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Less than 6 months 6 to 12 months 12 to 24 months 24 to 36 months Greater than 36 months CD Repricing Opportunities Source: Company documents; Deposit composition as of September 30, 2020 Note: This slide includ
Slide 31: V. Capital Highlights
V. Capital Highlights ENB Financial Corp at
Slide 32: Total Risk-based & Tier 1 Leverage Bank Capital Ratios
Total Risk - based & Tier 1 Leverage Bank Capital Ratios Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information Note : 2020YTD financials as of September 30, 2020 (1) “Expanded Community Bank Guide to the New Capital Rule for FDIC - Supervised Banks”
Slide 33: Historical Regulatory Bank Capital Ratios
Historical Regulatory Bank Capital Ratios Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information Note : 2020YTD financials as of September 30, 2020 (1) “Expanded Community Bank Guide to the New Capital Rule for FDIC - Supervised Banks” Tier 1 Risk Ba
Slide 34: VI. Income Statement Highlights
VI. Income Statement Highlights 34
Slide 35: Historical Profitability
Historical Profitability 0.81% 0.82% 0.60% 0.60% 0.86% 0.96% 1.00% 0.97% 0.85% 0.81% 0.80% 0.64% 0.94% 1.02% 0.98% 7.43% 7.60% 5.88% 6.35% 8.83% 9.36% 9.10% 9.13% 8.12% 7.56% 7.80% 6.61% 10.15% 10.45% 10.25% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25
Slide 36: Core Net Revenue Detail
Core Net Revenue Detail Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information * 2020YTD values as of the 9 months ended September 30, 2020. Values are annualized where appropriate. $25,258 $30,168 $33,113 $36,598 $37,611 $27,029 $30,732 $32,292 $33,
Slide 37: Net Interest Income & Net Interest Margin
4.11% 4.22% 4.41% 4.61% 4.26% 2.48% 3.18% 2.64% 2.66% 2.27% 0.40% 0.35% 0.38% 0.60% 0.38% 0.36% 0.32% 0.35% 0.50% 0.37% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2016Y 2017Y 2018Y 2019Y 2020YTD* Loan Yield Securities Yield (FTE) Cost of Int. Bearing Dep. Cost of Funds Net Interest Income & Net Interest Ma
Slide 38: Profitability & Expense Controls
Profitability & Expense Controls 74.5% 72.7% 71.2% 69.3% 66.6% 2.87% 3.06% 3.06% 2.96% 2.82% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2016Y 2017Y 2018Y 2019Y 2020YTD Noninterest Expense / Avg. Assets Efficiency Ratio Efficiency Ratio (FTE) Noninterest Expense / Avg. Assets R
Slide 39: Net Interest Margin vs. Net Non-interest Expense
3.56% 3.57% 3.46% 3.41% 3.25% 3.17% 1.97% 1.83% 2.12% 2.16% 1.42% 1.47% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 Net Interest Margin (FTE) Net Noninterest Expense /AA Net Interest Margin vs. Net Non - interest Expense Source: S&P Global Market I
Slide 40: Asset-liability Management Profile
Asset - liability Management Profile Source: Company provided documents (Unaudited) Note: Sensitivity profiles as of September 30, 2020 Net Interest Income Sensitivity Profile Interest Rate Scenario -75 -50 -25 Base 100 200 300 Net Interest Income Change - Next 12 Months -2.66% -1.61% -0.33% 0.00% 1
Slide 41: VII. Appendix
VII. Appendix ENB Financial Corp 4“
Slide 42: Regulatory Financial Highlights
Regulatory Financial Highlights Source: S&P Global Market Intelligence Note: This slide includes certain Unaudited Financial Information Note : Financial data shown at Bank level 12/31/2016 For the Years Ended: For the Quarters Ended: 9/30/2020 12/31/2016 12/31/2017 12/31/2018 12/31/2019 9/30/2019 1
Slide 43: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Source: S&P Global Market Intelligence; Company provided documents Note: This slide includes certain Unaudited Financial Information Year-Ended December 31, At September 30, (dollars shown in thousands) 2016 2017 2018 2019 2020 Assets Cash & Bal. Due from Dep. I
Slide 44: Historical Consolidated Income Statement
Historical Consolidated Income Statement Source : S&P Global Market Intelligence; Company provided documents Note: This slide includes certain Unaudited Financial Information Note : 2020YTD financials for the 9 months ended September 30, 2020 YTD Ended Year-Ended December 31, September 30, (dollars
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