ENB Financial Corp · OTC:ENBP
ENB Financial — Shareholder Meeting (May 2010)
37 slides from ENB Financial's shareholder meeting presentation, May 6, 2010
Slide 1: ENB Financial Corp 2010 Annual Meeting
ENB Financial Corp aI 2010 Annual Meeting ee. a 867
Slide 2: Meeting Agenda
M A EETING GENDA • Welcome • Vote on Matters of the Proxy Statement • Discussion of Condition of Company Ø President’s Remarks Ø Financial Review Ø Lending Review Ø ENB’s Money Management Group • Questions & Answers • Vote Results • Adjournment
Slide 3: Presenters
P RESENTERS • Aaron L. Groff, Jr. Ø President, CEO and Board Chairman - ENB Financial Corp and Ephrata National Bank • Paul W. Wenger Ø Vice President and Corporate Secretary - ENB Financial Corp • Scott E. Lied Ø Treasurer - - ENB Financial Corp • Dale G. Burkholder Ø Senior Vice President and Seni
Slide 4: Voting Process
V P OTING ROCESS Proxy Holders • Janice S. Eaby • John H. Shuey Judges of Election • Richard H. Binner • Roger S. Kline • William M. Rohrbach
Slide 5: Matters of Proxy
M P ATTERS OF ROXY • Elect four (4) Class A directors to serve three-year terms • Elect three (3) Class B directors to serve two-year terms • Elect three (3) Class C directors to serve one-year terms • Other Business
Slide 6: Board Classification
B C OARD LASSIFICATION Purpose of classifying the directors: • Structure better promotes continuity and stability • Encourages decision-making by board members based on long-term results
Slide 7: Current Directors
C D URRENT IRECTORS Class A Election (3 Year Term) • Aaron L. Groff, Jr. • J. Harold Summers • Paul M. Zimmerman, Jr. • Thomas H. Zinn Class B Election (2 Year Term) • Willis R. Lefever • Donald Z. Musser • Bonnie R. Sharp Class C Election (1 Year Term) • Susan Y. Nicholas • Mark C. Wagner • Paul W.
Slide 8: President's Remarks
P R RESIDENT’S EMARKS • Aaron L. Groff, Jr. Ø President/CEO - - ENB Financial Corp
Slide 9: Mission
M ISSION • To remain an independent community bank of undisputed integrity, serving the communities of Northern 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, delive
Slide 10: We Are
W C E ARE • Courteous • Accurate • Responsive • Empowered
Slide 11: FDIC Bank Failures
FDIC Bank Failures 25 : 2007 2008 140 2009 64 2010 YTD =
Slide 12: Strategic Initiatives
S I TRATEGIC NITIATIVES • Strategic Initiatives for 2010 - 2012 Ø Loan Growth Ø Strengthen Capital Ø Non-Interest Income Improvement Ø Increase Deposit Market Share in Lancaster County
Slide 13: Financial Review
F R INANCIAL EVIEW • Scott E. Lied Ø Treasurer - - ENB Financial Corp
Slide 14: Disclosures
D ISCLOSURES • Unaudited Financial Information Ø 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 Ø Some of the material and
Slide 15: Dollars in Thousands
Dollars in Thousands 8.000 6,000 4.000 2.000 0 4.771 2006 5,063 2007 4.014 2008 4.300 2009
Slide 16: Significant Items
S I Net Interest Income $ 858,000 increase Other Income $1,533,000 increase Operating Expenses (net of FDIC assessment) $1,191,000 decrease FDIC Assessment $ 792,000 increase Provision Expense $2,251,000 increase IGNIFICANT TEMS
Slide 17: Dollars in Millions
Dollars in Millions 22.0 21.0 20.0 19.0 18.0 17.0 16.0 15.0 14.0 21.0 20.1 9 i 2006 2007 2008 2009
Slide 18: Other Income
O I THER NCOME Data shown excludes securities gains and losses.
Slide 19: Operating Expenses
O E PERATING XPENSES Graph represents operating expenses net of annual FDIC assessments.
Slide 20: Dollars in Thousands
Dollars in Thousands 56 54 a SS 2006 2007 2008 2009
Slide 21: Dollars in Thousands
Dollars in Thousands 3.500 3.000 2.500 2.000 1.500 1.000 500 0 2.920 1.276 1.446 669 2006 2007 2008 2009 GD
Slide 22: i $1.67 bL.5:
$2.00 $1.77 i $1.67 60 bL.5: $1.40 $1.40 —_ $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 -— = — : 2006 2007 2008 2009
Slide 23: $1.50 $1.25 + $1.00 - $0.75 | $0.50 $1.24 $rt7 ene $ri7 06 2007
$1.50 5 $1.25 + $1.00 - $0.75 | $0.50 $1.24 $rt7 ene $ri7 2006 2007 2008 2009
Slide 24: Dividend Comparison
D C Bank Name Current Dividend Change from Dividend High (2006 - 2008) Union National Community Bank $0.00 -100.00% Susquehanna Bank $0.01 -95.65% National Penn Bank $0.01 -94.12% Fulton Bank $0.03 -83.33% VIST Bank $0.05 -75.00% Ephrata National Bank $0.24 -22.58% IVIDEND OMPARISON
Slide 25: Shareholder Value
S V ENBP SUSQ FULT Average Stock Price* - Oct 2008 $25.69 $17.12 $11.62 Average Stock Price* - Jul 2009 $24.83 $4.80 $6.05 Jul 2009 Price as % of Oct 2008 Price 97% 28% 52% Average Stock Price* - Apr 2010 $20.58 $11.26 $11.46 Apr 2010 Price as % of Oct 2008 Price 80% 66% 99% Current Dividend Yield o
Slide 26: Peer Analysis
P A Measurement ENB Peer* Return on Average Assets (ROAA) 0.60% 0.19% Net Interest Margin 3.49% 3.71% Other Income 0.88% 0.74% Operating Expense 2.81% 2.96% Tier 1 Leverage Capital 9.56% 8.71% EER NALYSIS * Peer Group is defined as National UBPR Peer Group $300 Million to $1 Billion, a total of 1,19
Slide 27: First Quarter Results
F Q R IRST UARTER ESULTS • Q1 Ø $1,468,000 versus $1,081,000 (Q1 2009) Ø 35.8% increase Ø 3.0% balance sheet growth
Slide 28: Lending Review
L R ENDING EVIEW • Dale G. Burkholder Ø Senior Vice President and Senior Lender - Ephrata National Bank
Slide 29: Credit Quality
C Q Measurement ENB Peer* 30 - 89 Days Past Due 0.20% 1.43% 90+ Days Past Due 0.17% 0.15% Non-Accrual 1.42% 2.91% Total Delinquencies 1.79% 4.49% Net Losses to Average Total Loans 0.29% 1.09% REDIT UALITY * Peer Group is defined as National UBPR Peer Group $300 Million to $1 Billion, a total of 1,19
Slide 30: Loan Portfolio Mix
L P M Loan Type ENB Peer* Construction and Development 4.99% 12.69% Commercial Real Estate (CRE) 21.20% 30.84% CRE Multi-Family 2.83% 2.57% Commercial & Industrial 7.29% 13.42% Loans to Municipalities 7.67% 0.51% Farmland & Agricultural 14.26% 4.18% 1 - 4 Family Residential 38.83% 23.83% OAN ORTFOLI
Slide 31: Loan Growth
L G OAN ROWTH * Peer Group is defined as National UBPR Peer Group $300 Million to $1 Billion, a total of 1,198 banks.
Slide 32: ENB's Money Management Group
E M M G NB’S ONEY ANAGEMENT ROUP • William L. Barnett Ø Vice President - ENB’s Money Management Group
Slide 33: Strategic Focus
S F TRATEGIC OCUS • Our Focus 2010-2011 and Beyond • Target Prospects • Services to Community
Slide 34: Money Management Group Goals
G • Our Money Management Group Goals Ø Become a trust and asset management group that customers and non-customers automatically recognize when the topic of money management and investment arises. Ø Provide a solution to every customer or prospect we meet • In the community • In our daily servicing O
Slide 35: Questions & Answers
Q A UESTIONS & NSWERS
Slide 36: Voting Results
V R OTING ESULTS • Report of Election Ø Presented by Paul W. Wenger Corporate Secretary - ENB Financial Corp
Slide 37: Adjournment
A DJOURNMENT Please join us for refreshments in the Hibshman Conference Room.