Slide 1: Annual Meeting of Shareholders May 6, 2014
Annual Meeting of Shareholders May 6, 2014 ACNB Corporation
Slide 2: Special Cautionary Notice Regarding Forward-Looking Statements
Special Cautionary Notice Regarding Forward-Looking Statements During the course of this presentation, there may be projections and forward-looking statements regarding events or the future financial performance of ACNB Corporation. We wish to caution you that these forward-looking statements involv
Slide 3: Bank Failures
Bank Failures Source: FDIC Banking Profile 175 150 125 100 75 50 25 0 3 25 140 157 92 51 24 2007 2008 2009 2010 2011 2012 2013
Slide 4: Unprofitable Insured Institutions
Unprofitable Insured Institutions Source: FDIC Banking Profile 35% 30% 25% 20% 15% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 12% 25% 31% 22% 16% 10% 8%
Slide 5: Year-End Comparisons December 31, 2013
Year-End Comparisons December 31, 2013 Sources: ACNB Form 10-K, FDIC Banking Profile .ACNB FDIC Insured Corporation Institutions ROA 0.90% 1.07% ROE 9.00% 9.56% Yield on Loans 4.54% 5.08% Yield on Securities 2.77% 2.37% Cost of Interest Bearing Deposits 0.31% 0.44% Net Interest Margin 3.48% 3.26% To
Slide 6: Cash Dividends – Dollar Per Share
Cash Dividends – Dollar Per Share Source: SEC Form 10-K Bank 2008 2009 2010 2011 2012 2013 ACNB 0.76 0.76 0.76 0.76 0.76 0.76 Codorus Valley 0.51 0.24 0.23 0.32 0.36 0.44 F&M Trust 1.07 1.08 1.08 1.08 0.78 0.68 Orrstown 0.87 0.88 0.89 0.69 -0- -0- Fulton 0.60 0.12 0.12 0.20 0.30 0.32 Susquehanna 1.0
Slide 7: David W. Cathell, EVP, Treasurer & Chief Financial Officer
David W. Cathell EVP, Treasurer & Chief Financial Officer ACNB Corporation
Slide 8: FDICIA Capital Categories
Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) The Federal Deposit Insurance Corporation Improvement Act requires that institutions be classified, based on their risk-based capital ratios into one of five defined categories: well capitalized, adequately capitalized, undercapi
Slide 9: Regulation of Bank
Regulation of Bank The Pennsylvania Department of Banking and Securities, which has primary supervisory authority over banks chartered in Pennsylvania, regularly examines banks in such areas as reserves, loans, investments, management practices, and other aspects of operations. The FDIC is the prima
Slide 10: ACNB Corporation Balance Sheet Trends
ACNB Corporation Balance Sheet Trends At Year-End in Millions of Dollars
Slide 11: Net Interest Income
Net Interest Income At Year-End in Millions of Dollars
Slide 12: Stockholders' Equity
Stockholders’ Equity At Year-End in Millions of Dollars
Slide 13: Book Value Per Share
Book Value Per Share At Year-End in Dollars
Slide 14: Share Price vs. Tangible Book Value
Share Price vs. Tangible Book Value
Slide 15: Total Return Performance
Total Return Performance 200.00 180.00 160.00 ® 2 s = 140.00 5 3 £ 120.00 100.00 s0.00 12/31/08 a/sijos__ | __12/31/10 wpByaL EOE 2s (Rew corporation 100.00 nial | 2ao maz | ies 19958 |Mid-atiantic custom Peer Group] 100.00 930s | 30275 1aas | 11935 168.58 —eAcns corporation —m-Mid-tlntic Custom Pee
Slide 16: James P. Helt, EVP/Banking Services
James P. Helt EVP/Banking Services ACNB Bank
Slide 17: Total Loans
Total Loans At Year-End in Millions of Dollars
Slide 18: Loan Volume by Segment
Loan Volume by Segment At Year-End in Millions of Dollars
Slide 19: Allowance for Loan Losses
Allowance for Loan Losses At Year-End as Percentage of Total Loans
Slide 20: Non-Performing Loans
Non-Performing Loans At Year-End as Percentage of Total Loans
Slide 21: Other Real Estate Owned
Other Real Estate Owned At Period-End in Dollars
Slide 22: Net Loan Losses to Total Loans
Net Loan Losses to Total Loans At Year-End as Percentage of Total Loans
Slide 23: Total Deposits
Total Deposits At Year-End in Millions of Dollars
Slide 24: Deposit Volume by Segment
Deposit Volume by Segment At Year-End in Millions of Dollars
Slide 25: North Hanover Office
North Hanover Office
Slide 26: ACNB Bank Branding
ACNB Bank Branding Proud to be your local bank in Hanover.
Slide 27: Chambersburg Office
Chambersburg Office 850 Norland Avcenue Chambersburg, PA Opening Summer 2014
Slide 28: York Loan Production Office
York Loan Production Office John E. Kashner - 30 Years Experience Donald C. McVay - 30 Years Experience Claire M. Forbush - 15 Years Experience
Slide 29: Lynda L. Glass, EVP, Secretary & Chief Governance Officer
Lynda L. Glass EVP, Secretary & Chief Governance Officer ACNB Corporation
Slide 30: Bank Risk Management
Bank Risk Management • Taking and managing risks are fundamental to the business of banking. • Generally, risk is the potential that events--- planned or unanticipated---may have an adverse impact on bank capital and earnings. • A bank director’s major responsibility regarding risk is to provide a m
Slide 31: ACNB Bank Risk Management Team
ACNB Bank Risk Management Team • First Vice President & Risk Manager • Vice President/Security & Fraud Officer • Vice President/Compliance & Community Reinvestment Act Officer • Vice President/Bank Secrecy Act, Customer Identification Program & OFAC Officer • Vice President/Information Security Offi
Slide 32: Bank Risk Management Team Responsibilities
Bank Risk Management Team Responsibilities • Develops, implements and administers specific risk management programs. • Supports business lines and operational functions with risk-related matters. • Interacts with regulators and coordinates regulatory examinations.
Slide 33: Categories of Risk Identification
Categories of Risk Identification • Credit Risk • Interest Rate and Market Risk • Liquidity Risk • Transaction and Operational Risk • Legal and Compliance Risk • Strategic Risk • Reputation Risk
Slide 34: Transaction & Operational Risk Focus
Transaction & Operational Risk Focus • Electronic Payment Systems • Digital Banking • Cybersecurity • Information Security • Third-Party Debit Card Breaches
Slide 35: ACNB Bank Initiatives
ACNB Bank Initiatives • Network/Device Security Procedures and Protocols • Network Scanning and Alerts • Network Penetration and Vulnerability Testing • Multifactor Authentication and Anomaly Detection • Customer Communication and Education • EMV-Enabled Debit Card Reissuance
Slide 36: Protecting Your Online Information
Protecting Your Online Information • Use Strong, Unique Passwords for All Devices and Logins • Use Multifactor Authentication for Online Banking and Transactions • Update Devices with Latest Security and Antivirus Releases • Secure Wireless Networks • Dispose of Devices Properly • Do Not Open Emails
Slide 37: Shareholder Profile
Shareholder Profile Number of Outstanding Shares at March 31, 2014
Slide 38: Registered Shareholders by Geography
Registered Shareholders by Geography Number of Registered Holders at March 31, 2014
Slide 39: Registered Shareholders by Share Ownership
Registered Shareholders by Share Ownership Number of Registered Holders at March 31, 2014
Slide 40: Dividend Reinvestment & Stock Purchase Plan
Dividend Reinvestment & Stock Purchase Plan Total Plan Investment at Year-End in Dollars
Slide 41: New ACNB Bank Website
www.acnb.com New ACNB Bank Website
Slide 42: ACNB Corporation Website Pages
www.acnb.com ACNB Corporation Website Pages
Slide 43: Karen B. Arthur, FVP & Senior Trust Officer
Karen B. Arthur FVP & Senior Trust Officer ACNB Bank
Slide 44: Trust Assets
Trust Assets At Year-End in Millions of Dollars
Slide 45: Trust Fee Income
Trust Fee Income At Year-End in Thousands of Dollars
Slide 46: Trust Fee Income by Segment
Trust Fee Income by Segment At Year-End in Thousands of Dollars
Slide 47: New Trust & Investment Services Offering
New Trust & Investment Services Offering • NOT FDIC-INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY THE BANK • MAY GO DOWN IN VALUE • $50,000 Minimum Investment • Personalized Planning • Local Expert Advice • Daily Access
Slide 48: New Trust & Investment Services Offering
New Trust & Investment Services Offering • NOT FDIC-INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY THE BANK • MAY GO DOWN IN VALUE • Introduced January 2013 • Opened 39 Accounts in 2013 • New Business of $3.2 Million • 1% Annual Fee • Client Niche
Slide 49: Russell Insurance Group
Russell Insurance Group Frank C. Russell, Jr. President & CEO
Slide 50: Russell Insurance Group Net Income
Russell Insurance Group Net Income GAAP Basis at Year-End
Slide 51: Russell Insurance Group EPS
Russell Insurance Group EPS Earnings Per Share at Year-End
Slide 52: Russell Insurance Group Total Revenue
Russell Insurance Group Total Revenue in Thousands of Dollars
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