Acnb Corporation · NASDAQ:ACNB
Acnb — Shareholder Meeting (May 2020)
35 slides from Acnb's shareholder meeting presentation, May 7, 2020
Slide 1: Annual Meeting of Shareholders May 5, 2020
Annual Meeting of Shareholders May 5, 2020
Slide 2: Welcome & Introductions
ACNB Corporation Welcome & Introductions See
Slide 3: Board of Directors
The picture can't be displayed. Board of Directors Alan J. Stock – Chairman of the Board Richard L. Alloway II Kimberly S. Chaney Frank Elsner, III James P. Helt Todd L. Herring Scott L. Kelley James J. Lott Donna M. Newell J. Emmett Patterson Daniel W. Potts Thomas A. Ritter Marian B. Schultz D. Ar
Slide 4: Subsidiary Executive Officers
The picture can't be displayed. Subsidiary Executive Officers • ACNB Bank James P. Helt – President & Chief Executive Officer David W. Cathell – Executive Vice President/Treasurer & Chief Financial Officer Lynda L. Glass – Executive Vice President/Secretary and Chief Risk & Governance Officer Laurie
Slide 5: Business Advisors
The picture can't be displayed. Business Advisors • Bybel Rutledge LLP Partner Nicholas Bybel , Jr., Esquire • RSM US LLP Partner Patrick Mulloy
Slide 6: Meeting Agenda
The picture can't be displayed. Meeting Agenda • Call to Order & Business Matters • President & CEO Presentation • Shareholder Questions & Answers • Voting Results from Judge of Election • Adjournment
Slide 7: Rules of Conduct and Procedures
The picture can't be displayed. 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 webcast meeting as a Shareholder using a proxy control number,
Slide 8: Forward-Looking Statements
The picture can't be displayed. 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 invo
Slide 9: Call to Order & Business Matters
Call to Order & Business Matters
Slide 10: President & CEO Presentation James P. Helt
President & CEO Presentation James P. Helt
Slide 11: Company Profile
• Headquartered in Gettysburg, PA • Stock Symbol : ACNB (Nasdaq) • Community Bank Subsidiary : ACNB Bank with Wealth Management • Bank Marketplace includes Southcentral Pennsylvania ( Adams, Cumberland, Franklin, Lancaster & York Counties ) and Northern Maryland (Baltimore, Carroll & Frederick Count
Slide 12: Locations
FRANKLIN. Locations ACNB Corporation Operations Center ‘ACNE Bank FCB Bank NWSB Bank Russell Insurance Group, Inc mwreee* ACNB Bank Loan Office O) CUMBERLAND = @ ° » Me e x © Kore york OAs @ © © cian e Ce FREDERICK e@ BALTIMORE e a . ° 2 068 he A iene d) LANCASTER, A HARFORD
Slide 13: 2019 Performance Highlights
2019 Performance Highlights Record Year • ACNB Corporation reported record 2019 financial results with $23.7 million in net income, an increase of 9% ov er 2018 . Market Expansion • Expanded market penetration and operations in Pennsylvania with the opening of the Lancaster Loan Office in May 2019.
Slide 14: 2019 Record Financial Results
2019 Record Financial Results
Slide 15: Statement of Condition - Assets
Statement of Condition - Assets • Total Assets of $1.7 Billion at December 31, 2019 • Year - Over - Year Growth of $72.5 Million or 4% • Earning Assets Growth – Year - Over - Year Loan Decline of $29.9 Million or 2% – Overall decline in loans outstanding was due to payoffs in a declining rate enviro
Slide 16: Statement of Condition - Funding
Statement of Condition - Funding • Total Deposits of $1.4 Billion at December 31, 2019 • Year - Over - Year Growth of $64.2 Million or 5% • Other Funding Sources – Year - Over - Year FHLB & Borrowings Decline of $17.2 Million or 21% – Year - Over - Year Stockholders’ Equity Growth of $21.4 Million o
Slide 17: Net Income
Net Income At Year - End in Millions of Dollars *Non - GAAP Financial Measures Disclosure: Without the nonrecurring expenses incurred as a result of the acquisition and integrati on of New Windsor Bancorp, Inc., net of the corresponding tax impact at the marginal tax rate, in the amount of $3,010,00
Slide 18: 2019 Earnings
2019 Earnings • 2019 Net Income of $23.7 Million – Up 9% from 2018 • Year - Over - Year Changes – Net Interest Income Up $2.3 Million or 4% – Net Interest Margin Steady at 3.81% with Declining Trend – Provision for Loan Losses Down $1.0 Million – Other Income Up $2.2 Million or 14% – Russell Insuran
Slide 19: Statement of Stockholders' Equity
Statement of Stockholders’ Equity • Total Stockholders’ Equity of $189.5 Million at December 31, 2019 - Up $21.4 Million or 13% since December 31, 2018 • Retained Net Income Up $16.8 Million with $23.7 Million in Net Income Minus $6.9 Million in Dividends Paid for a 29% Dividend Payout Ratio • Divid
Slide 20: Bank Regulatory Capital Ratios
Bank Regulatory Capital Ratios • Capital is the “C” in CAMELS Regulatory Rating System • Capital Measured by Quantitative Ratios and Regulators Can Apply Qualitative Judgments on Necessary Capital Levels • For 2019, Tier 1 Leverage Ratio Increased on Higher Income and Modest Asset Growth • For 2019,
Slide 21: Dividends Per Share
Dividends Per Share $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 2009 ©2010-2011» 2012-2043 2014-2015 2016-2017 «2018» 2019-2020 ‘O4st Quarter @2nd Quarter |@3rd Quarter m4th Quarter
Slide 22: Frederick County Bancorp, Inc. (FCBI) Acquisition
Frederick County Bancorp, Inc. (FCBI) Acquisition
Slide 23: Statement of Condition Following FCBI Acquisition
Statement of Condition Following FCBI Acquisition This table summarizes the fair value of FCBI assets acquired and liabilities assumed and the resulting ACNB balance sheet in thousands of dollars at quarter - end March 31, 2020. FCBI Acquisition ACNB 3/31/20 Cash and cash equivalents $ 35,262 $ 129,
Slide 24: FCBI Acquisition Rationale
FCBI Acquisition Rationale • Mid to high single digit EPS accretion • Modest tangible book value dilution with a reasonable tangible earnback period • Significantly expands core markets into Frederick County, providing additional lending opportunity and a robust deposit base in a demographically - a
Slide 25: Coronavirus Disease 2019 (COVID-19)
Coronavirus Disease 2019 (COVID - 19)
Slide 26: ACNB Corporation Response to COVID-19
ACNB Corporation Response to COVID - 19 • All community banking offices were limited to drive - up services for in - person banking transactions, with lobby access available via appointment in the case of critical needs for services such as safe deposit box access. • Additional staff were allocated
Slide 27: ACNB Corporation Response to COVID-19
ACNB Corporation Response to COVID - 19 • Limits on Mobile Banking deposit transactions were raised temporarily so that customers have the ability to deposit checks in both higher dollar amounts and number. • All ACNB Bank fees for customers using an ATM, regardless of the location, are waived until
Slide 28: Commercial Loan Portfolio Concentrations
Commercial Loan Portfolio Concentrations The table provides information with respect to the Corporation’s commercial loans by industry at March 31, 2020, that may have suffered, or are expected to suffer, greater losses as a result of COVID - 19. As of March 31, 2020 Type of Loans Number of Loans Ba
Slide 29: COVID-19 Loan Modifications
COVID - 19 Loan Modifications As of March 31, 2020 Type of Loans Number of Loans Deferral Period Balance Percentage of Tier 1 Capital Commercial Purpose 216 3 months $ 132,898,838 53.80% Consumer Purpose 71 1-3 months 1,498,218 0.61% 287 $ 134,397,056
Slide 30: Paycheck Protection Program (PPP) Loans
Paycheck Protection Program (PPP) Loans As of April 30, 2020 PPP Phase # OF APPROVED APPLICATIONS $ AMOUNT OF APPROVED APPLICATIONS APPROX. FEE INCOME # OF PPP LOANS FUNDED $ AMOUNT OF FUNDED LOANS FEE INCOME 1 826 $118,854,285.00 $4,481,302.00 822 $118,499,485.00 $4,465,402.00 2 375 $26,645,118.00
Slide 31: Our Vision
Our Vision To be the independent financial services provider of choice in the core markets served by building relationships and finding solutions.
Slide 32: Shareholder Questions & Answers
Shareholder Questions & Answers
Slide 33: Voting Results from Judge of Election
Voting Results from Judge of Election
Slide 34: Thank You & Meeting Adjournment
Thank You & Meeting Adjournment
Slide 35: Slide 35