Slide 1: ACNB Corporation Annual Meeting of Shareholders May 3, 2022
ACNB Corporation Annual Meeting of Shareholders May 3, 2022 1
Slide 2: Welcome & Introductions
Welcome & Introductions 2
Slide 3: Board of Directors
Board of Directors Alan J. Stock Chairman of the Board Todd L. Herring Vice Chairman of the Board Kimberly S. Chaney Frank Elsner, III James P. Helt Scott L. Kelley James J. Lott Donna M. Newell Daniel W. Potts D. Arthur Seibel, Jr. David L. Sites 3
Slide 4: Retiring Directors
Retiring Directors Marian B. Schultz – Ms. Schultz has been a member of both the Corporation’s and ACNB Bank’s Boards of Directors since 1992. James E. Williams – Mr. Williams has been a member of both the Corporation’s and ACNB Bank’s Boards of Directors since 2007. 4
Slide 5: Subsidiary Executive Officers
Subsidiary Executive Officers Jason H. Weber EVP/Finance Mark A. Westcott President & Chief Executive Officer Front left to right: Lynda L. Glass, EVP/Secretary and Chief Risk & Governance Officer; David W. Cathell, EVP/Treasurer & Chief Financial Officer; Laurie A. Laub, EVP/Chief Credit & Operatio
Slide 6: Business Advisors
Business Advisors Bybel Rutledge LLP: Partner Nicholas Bybel, Jr., Esquire RSM US LLP: Partner Patrick Mulloy 6
Slide 7: Meeting Agenda
Meeting Agenda • Call to Order, Quorum & Business Matters • President & CEO Presentation • Shareholder Questions & Answers • Voting Results • Adjournment from Judge of Election 7
Slide 8: Rules of Conduct and Procedures
Rules of Conduct and Procedures In the interest of an orderly Annual Meeting of Shareholders for ACNB Corporation, please honor the following basic Rules of Conduct and Procedures: • If you have joined the virtual meeting as a Shareholder using a proxy control number or legal proxy, you will be able
Slide 9: Forward-Looking Statements
Forward-Looking Statements Duringthecourseofthis statements regarding events presentation,theremaybeprojectionsandforward-looking or the these future financial performance of ACNB Corporation.We wish to caution youthat forward-lookingstatements involvecertainrisks and uncertainties, including a vari
Slide 10: Call to Order, Quorum & Business Matters
Call to Order, Quorum & Business Matters 10
Slide 11: President & CEO Presentation
President&CEOPresentation James P. Helt 11
Slide 12: Executive Summary
Executive Summary Executive Summary Notes Accolades row. 1. Source: S&P Capital IQ as of March 31, 2022. 12 Source: 10K as of December 31, 2021 unless otherwise noted. • Named to Central Penn Business Journal’s list of the Top 50 Fastest Growing Companies in Central Pennsylvania for the fourth year
Slide 13: Market Overview
Market Overview Key Notes Market Footprint 1. Source: FDIC Deposit Market Share Report as of June 30, 2021. 2. These market areas include Gettysburg, Upper Adams, Littlestown, McSherrystown, Carroll Valley, East Berlin, and Newville. 3. Source: United States Census Bureau data. 4. Compounded Annual
Slide 14: Overview of 2021 Results
Overview of 2021 Results Financial Summary Financial Overview 1. Provision expense in 2020 was a result of the COVID-19 pandemic as well as a large unanticipated charge-off of one loan in 1Q’20. 14 Source: 10K as of December 31, 2021 •Record year in Net Income, an increase of approximately 50% from
Slide 15: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Loans ($MMs) Total Assets ($MMs) CAGR¹ (‘17 - ’21): 4.23% Total Deposits ($MMs) Tangible Common Equity ($MMs) 208.6 1. Compounded Annual Growth Rate (CAGR) Source: 10K as of December 31, 2021 15 CAGR¹ (‘17 - ’21): 14.17%223.9 144.2 20172018201920202021 165.5 131
Slide 16: Performance Trends
Performance Trends Net Interest Margin (%) ROAE (%)¹ 3.51 Efficiency Ratio (%) EPS ($)¹ TCE / TA (%) TBVPS ($) 20.46 18.77 1. ROAE and EPS for 2017 and 2020 are adjusted to reflect figures that exclude the one-time merger related charges for the New Windsor and Frederick County acquisitions (non-GAA
Slide 17: Wealth Management
Wealth Management At Year-End in Thousands of Dollars percentage of the market value of assets under income, and 34% higher fee income on brokerage relationships. 1. Securities and certain insurance products are offered through Cetera Investment Services, LLC, a registered broker-dealer and FINRA me
Slide 18: ACNB Insurance
ACNB Insurance At Year-End in Thousands of Dollars Services, Inc. the needs of its clients since its founding as an independent insurance subsidiaries. 18 Source: Internal Sources 47,73547,94346,508 20172018201920202021 Premiums • January 2022 rebranding of insurance subsidiary to ACNB Insurance Ser
Slide 19: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition as of 12/31/2021 Key Underwriting Notes 4.3% 1-4 Family Gross Loan Growth ($MMs) 1. Compounded Annual Growth Rate (CAGR) Source: S&P Capital IQ and 10K as of December 31, 2021 19 CAGR¹ (’17 - ’21): 4.23%1,637.8 1,244.2 20172018201920202021 1,302.
Slide 20: Prudent Reserve Discipline
Prudent Reserve Discipline Trends in Loan Loss Reserve Loan Loss Reserve Overview 25,000 1.80 1.23 20,000 provisioning for the impact of the COVID-19 20 Source: 10K as of December 31, 2021 and Internal Sources • ACNB actively monitors its loan portfolio and records provision expense to maintain stro
Slide 21: Healthy Deposit Portfolio
Healthy Deposit Portfolio Deposit Composition as of 12/31/2021 Deposit Portfolio 2020. the Bank’s total deposit portfolio. of total deposits. 21 Source: 10K as of December 31, 2021 and Internal Sources • Year-end 2021 deposits of $2.4 billion increased 11.0% over • Deposit growth impacted by lack of
Slide 22: Active Capital Management
Active Capital Management • Capital ratios exceed regulatory and our internal requirements. Quarterly cash dividend increased to $0.26 per share in the 4th quarter of 2021. o Declared a $0.02 special dividend in the 2nd quarter of 2021. In February of 2021, the Board of Directors approved a share re
Slide 23: At the Heart of Community Life
At the Heart of Community Life...... This is community banking! FCB Bank Community Shred Event Carroll County 4-H Fair School Supply Drive Bag the Bounty Food Drive In-School Banking Susan G. Komen Race for the Cure New Oxford Harvest Festival Ringing the Bell for the Salvation Army 23
Slide 24: ACNB Bank Volunteer of the Year Award
ACNB Bank Volunteer of the Year Award Created to recognize exemplary community service by a Bank staff member Winner receives: • • Commemorative Trophy One Extra Day of Paid Time Off AND Linda S. Roth, Vice President/Treasury Management Officer, was presented with the 2022 Volunteer of the Year Awar
Slide 25: Growth Opportunities
Growth Opportunities Organic Strategies Inorganic Strategies households. demographics and enhancement of long-term 25 • Strategically positioned in one of the fast-growing regions along the East Coast, within a short drive of Baltimore, Philadelphia, and Washington, D.C. • Southcentral Pennsylvania
Slide 26: Maximizing shareholder value
As a community banking organization, we believe that we must consistently strive to maximize shareholder value by: 1. Utilizing a combination of tools, including both organic and inorganic growth models, to profitably expand our customer 3. Continually improving our operating efficiency through the
Slide 27: In Conclusion
In Conclusion • ACNB Corporation remains well capitalized and positioned to continue our growth trends to the benefit of our customers, employees, shareholders and communities. • Asset quality remains strong as we continue to work through the impacts of the pandemic and market uncertainties. • ACNB
Slide 28: Shareholder Questions & Answers
Shareholder Questions & Answers 28
Slide 29: Voting Results from Judge of Election
Voting Results from Judge of Election 29
Slide 30: Thank You & Meeting Adjournment
Thank You & Meeting Adjournment Stock Symbol: ACNB (Nasdaq) www.acnb.com 30