ENB Financial Corp · OTC:ENBP
ENB Financial — Shareholder Meeting (May 2017)
39 slides from ENB Financial's shareholder meeting presentation, May 9, 2017
Slide 1: ENB Financial Corp
ENB Financial Corp
Slide 2: Meeting agenda
Welcome Reading of the Minutes Certify Voting Activity Vote on Matters of the Proxy Statement Discussion of Company Condition • President’s Remarks • Financial Review Questions & Answers Voting Results Adjournment
Slide 3: Meeting officers
Aaron L. Groff, Jr. • President, CEO and Board Chairman – ENB Financial Corp and Ephrata National Bank Barry W. Harting • Vice President and Corporate Secretary – ENB Financial Corp • Senior Vice President and Chief Risk Officer – Ephrata National Bank Scott E. Lied • Treasurer – ENB Financial
Slide 4: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 5: Matters of the proxy: elect three Class C directors
1. Elect three (3) Class C directors to serve a 3-year term 2. Transact other business
Slide 6: Election of Directors – Class C
1. Elect three (3) Class C directors to serve a 3-year term Election of Directors – Class C Susan Y. Nicholas Mark C. Wagner Paul W. Wenger
Slide 7: Continuing Directors – Class A and Class B
Continuing Directors – Class A Aaron L. Groff, Jr. Dr. Brian K. Reed Paul M. Zimmerman, Jr. Continuing Directors – Class B Willis R. Lefever Donald Z. Musser Judith A. Weaver
Slide 8: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 9: Retiring and emeritus directors
Janice S. Eaby Richard H. Binner John H. Shuey Roger S. Kline John L. Weber
Slide 10: Presented by: Aaron L. Groff, Jr.
Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp
Slide 11: Mission statement
To remain an independent community bank of undisputed integrity, serving the communities of Lancaster County and beyond. To offer state-of-the-art financial products and services of high quality and value at an affordable price. To provide unsurpassed personal service, delivered by a highly de
Slide 12: Vision: helping clients achieve financial success
To help clients achieve financial success as defined by them by discovering their goals and dreams in order to provide helpful advice.
Slide 13: New Branch Performance
New Branch Performance
Slide 14: Growth: New Branch Performance
GROWTH New Branch Performance
Slide 15: Stability
STABILITY
Slide 16: Agricultural & Commercial Banking
Agricultural & Commercial Banking
Slide 17: Leveraging Technology: New Account Desk
LEVERAGING TECHNOLOGY New Account Desk _ Sal eee’ , i , - as
Slide 18: Cash Recycler
Cash Recycler
Slide 19: Personal Accountability
PERSONAL ACCOUNTABILITY Practicing Personal Accountability at Work and in Life THE QUESTION BEHIND THE QUESTION® What to Really Ask Yourself to Eliminate Blame, Victim Thinking, Complaining, and Procrastination JOHN G. MILLER
Slide 20: Milestones: Billion Dollar Mark
MILESTONES Billion Dollar Mark | | | fis IL UNITED STATES 4 0100 FONE BILLION DOLL PARES fut
Slide 21: Economic Development: Wenger Feed Mill
ECONOMIC DEVELOPMENT Wenger Feed Mill
Slide 22: Presented by: Scott E. Lied
Presented by: Scott E. Lied Treasurer - ENB Financial Corp
Slide 23: Unaudited Financial Information and Forward Looking Statements
Unaudited Financial Information Some of the following slides do present financial information that is unaudited. Therefore, this information is subject to adjustments that could be necessary upon completion of the annual audit. Forward Looking Statements Some of the material and/or language used
Slide 24: Net Income
NET INCOME 8,000 7,642 7,710 7,553 7,092 6,910 = 3 5 6,000 =} i) a : 4,000 £ & S 2,000 a 2012 2013 2014 2015 2016
Slide 25: Net Interest Income and Other Income
2016 2015 Incr./Decr. Incr./Decr. Dollars in Thousands $ $ $ % Net Interest Income 25,287 23,098 2,189 9.5 Provision for Loan Loss 325 150 175 NA Other Income 8,774 7,215 1,559 21.6 Security Gains 2,370 2,840 (470) (16.5) Operating Expense 27,200 24,735 2,465 10.0
Slide 26: Mortgage Production and Mortgages Held
2016 2015 Increase Increase Dollars in Millions $ $ $ % Mortgage Production 103.0 65.0 38.0 58.5 Total Mortgages Held 120.8 98.6 22.2 22.5 Adjustable Rate Mortgages 42.5 18.5 24.0 129.7 Total Home Equity Loans 57.8 43.7 14.1 32.3
Slide 27: Gains on Sale of Mortgages and Interest Income
2016 2015 Increase Increase Dollars in Thousands $ $ $ % Gains on Sale of Mortgages 1,512 806 706 87.6 Mortgage Fee Income 673 540 133 24.6 Mortgage Interest Income 4,778 4,200 578 13.8 HELOC Interest Income 1,874 1,461 413 28.3
Slide 28: ROA, ROE, Net Interest Margin
2016 2015 % % Return on Average Assets (ROA) 0.80 0.79 Return on Average Equity (ROE) 7.74 7.38 Net Interest Margin 3.12 3.07 Efficiency Ratio 75.12 76.86
Slide 29: Earnings, Dividends and Payout Ratio
2016 2015 Earnings Per Share $2.65 $2.42 Dividends Per Share $1.09 $1.08 Dividend Payout Ratio 41.1% 44.6%
Slide 30: ENBP vs PA Bank Peer: returns and valuation
ENBP PA Bank Peer* Measurement % % Return of Average Assets (LTM) 0.80 0.83 Return on Average Equity (LTM) 7.70 8.00 Price to Earnings (LTM) 13.3 15.2 Price to Tangible Book 105 124 Dividend Yield (LTM) 3.26 2.59 *Data as of December 31, 2016 from Boenning & Scattergood, Inc., 1st Qtr. 2017 Mid-Atla
Slide 31: ENBP vs PA Bank Peer: capital and asset quality
ENBP PA Bank Peer* Measurement % % Tangible Capital to Assets 9.60 9.00 Tier 1 Capital Ratio 14.1 13.3 Total Risk Based Capital 15.2 14.3 Non-Performing Assets/Total Assets 0.11 0.91 Allowance for Loan Losses/Total Loans 1.32 1.08 *Data as of December 31, 2016 from Boenning & Scattergood, Inc., 1st
Slide 32: Balance sheet growth
Total Assets up $78.7 million + 8.7% Total Loans up $51.3 million + 9.9% Total Deposits up $77.4 million + 10.5% Total Capital down $0.2 million - 0.2%
Slide 33: First Quarter 2017 vs. First Quarter 2016
First Quarter 2017 vs. First Quarter 2016 Earnings: $1.83 million, 4.4% decrease Net Interest Income: $7.3 million vs. $6.1 million Provision for Loan Losses: $90,000 vs. (50,000) Security Gains: $140,000 vs. $728,000 Mortgage Gains: $355,000 vs. $155,000 Operating Expenses: $7.52 millio
Slide 34: Challenges and Opportunities
Challenges Loan Growth New Market Participants New Branch Growth Opportunities Net Interest Margin Growth Mortgage Growth Market Disruption
Slide 35: Questions & Answers
Slide 36: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 37: Communication
COMMUNICATION The ENB Difference: Discover what in it for you, | VISA’ Bonus Rewards Card ENB Financial Corp ‘You'll feel the difference. you'll feel the difference 2017 First Quarter Report 2016 ANNUAL REPORT
Slide 38: Questions & Answers
Slide 39: Thank you! Adjournment
ADJOURNMENT Thank you!