Slide 1: 2009 Annual Meeting
< c Tm! IT =q — Lj ND, age 8 a Responsibility. Stability. Trust. 2009 Annual Meeting
Slide 2: Meeting Agenda
Meeting Agenda • Welcome • Reading of the Minutes • Certify Voting Activity • Vote on Matters of the Proxy Statement • Discussion of Condition of Company President’s Remarks Financial Review ENB’s Money Management Group • Vote Results • Adjournment
Slide 3: Matters of Proxy
Matters of Proxy • Establish the number of directors to be elected at ten. • Elect ten directors to serve for one-year terms
Slide 4: Current Directors
Current Directors • Aaron L. Groff Jr. • J. Harold Summers • Willis R. Lefever • Mark C. Wagner • Donald Z. Musser • Paul W. Wenger • Susan Y. Nicholas • Paul M. Zimmerman Jr. • Bonnie R. Sharp • Thomas H. Zinn
Slide 5: Voting Process
Voting Process Proxy Holders Judges of Election • Janice S. Eaby • Richard H. Binner • John H. Shuey • Roger S. Kline • William M. Rohrbach
Slide 6: Condition of the Company: President's Remarks
Condition of the Company • President’s Remarks Presented by: Aaron L. Groff Jr. President/CEO - ENB Financial Corp
Slide 7: Board Transitions
Board Transitions Retirements Appointments • James C. Gibbel • Susan Young Nicholas • Paul W. Brubaker • Paul W. Wenger
Slide 8: Management Team: ENB Financial Corp
Management Team: ENB Financial Corp • Aaron L. Groff Jr. Chairman, President, CEO • Paul W. Wenger Vice President, Secretary • Scott E. Lied Treasurer
Slide 9: Management Team: Ephrata National Bank
Management Team: Ephrata National Bank • William L. Barnett • Bridget A. Hudacs – Vice President, Sr. Trust Officer – Vice President, Marketing Officer Money Management Group • Dennis A. Klugh • Dale G. Burkholder – Vice President, Human Resources – Sr. Vice President, Sr. Lender Officer • Craig K.
Slide 10: ART Process
ART Process • Consultative initiative – Achieving Results Together • Identify and implement industry best practices • 122 action items identified • Full implementation by year end 2009
Slide 11: Condition of the Company: Financial Condition
Condition of the Company • Financial Condition Presented by Scott E. Lied Treasurer - ENB Financial Corp
Slide 12: Disclosures
Disclosures • 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/
Slide 13: Net Income
Net Income 10,000 8,000 Dollars in thousands 6,801 6,985 6,244 6,467 6,000 4,771 5,063 4,014 4,000 2,000 0 2002 2003 2004 2005 2006 2007 2008
Slide 14: 2008 Significant Items
2008 Significant Items • ART Project $481,000 engagement costs $1.22 million separation package expense • Net Losses on Securities $506,000 • FDIC Insurance Increased $175,000
Slide 15: 2008 Significant Items
2008 Significant Items • Net Interest Income (NII) $1,000,000 or 5.4% increase • Provision for Loan Loss $777,000 reduction • Other Income $764,000 or 16.9% increase
Slide 16: Net Interest Income
Net Interest Income 21.0 20.1 20.0 Dollars in millions 19.1 19.0 18.3 18.7 18.7 18.0 17.6 17.1 17.0 16.0 15.0 14.0 2002 2003 2004 2005 2006 2007 2008
Slide 17: Operating Expenses
Operating Expenses 25.0 20.5 Dollars in millions 20.0 16.8 15.3 15.0 13.1 13.8 12.6 11.5 10.0 5.0 2002 2003 2004 2005 2006 2007 2008
Slide 18: Earnings Per Share
Earnings Per share $3.00 $2.50 $2.31 $2.39 $2.13 $2.20 $2.00 $1.77 $1.67 $1.50 $1.40 $1.00 $0.50 $0.00 2002 2003 2004 2005 2006 2007 2008
Slide 19: Dividends Per Share
Dividends Per Share $1.50 $1.25 $1.24 $1.17 $1.21 $1.12 $1.04 $1.00 $0.96 $0.87 $0.75 $0.50 2002 2003 2004 2005 2006 2007 2008
Slide 20: Peer Analysis
Peer Analysis Measurement ENB Peer* ROAA 0.60% 0.67% Net Interest Margin 3.69% 3.63% Efficiency Ratio 74.78% 70.07% NPAs /Assets 0.83% 1.46% Capital Ratio 10.1% 9.4% Risk-Based Capital 16.09% 14.21% * Peer Group is defined as all banks in the Philadelphia Federal Reserve District as provided by the
Slide 21: First Quarter Results
First Quarter Results • Q1 2009 $1,081,000 versus $1,395,000 (Q1 2008) 22.5% decrease
Slide 22: FDIC Insurance
FDIC Insurance 2008 2009 (est) Rate $230,000 $750,000 One-Time Assessment N/A $550,000 Total Ins Cost $230,000 $1,300,000
Slide 23: Condition of the Company: ENB's Money Management Group
Condition of the Company • ENB’s Money Management Group Presented by William L. Barnett Vice President - ENB’s Money Management Group
Slide 24: ENB's Money Management Group
ENB’s Money Management Group • Introduction ENB’s Money Management Group Goal to provide the best and most suitable investment management service to customers Goal is to support the institution and the complement the commercial banking and deposit services we offer.
Slide 25: ENB's Money Management Group
ENB’s Money Management Group • Our Focus A source of community involvement A primary source of Non-Interest Income for ENB Financial Corp An entity that truly makes Ephrata National Bank a full-service institution • Target Prospects Businesses Clients needing or wanting investment advice
Slide 26: ENB's Money Management Group
ENB’s Money Management Group • Primary Goal: Maximize Growth of Assets and Revenues Reduce volatility of earnings year to year unless you have a year like 2008 Grow assets and revenues Control expenses Provide comprehensive services and guidance to support the long- and short-term objectives
Slide 27: ENB's Money Management Group
ENB’s Money Management Group • Services Offered Under Administration Consumer or Personal Trust Retirement Plan Administration Investment Management Custody
Slide 28: ENB's Money Management Group
ENB’s Money Management Group Year End YTD 2008 2009 Change Market Value $158,844,688 $164,041,973 +3.27% Book Value $141,359,751 $152,655,246 +7.99% (Cost Basis) Full Year Revenue $802,786 Revenue Per $1,000 $5.05 Assets Under Custody
Slide 29: ENB's Money Management Group
ENB’s Money Management Group • Service Overview Professional investment management Conscientious and customized estate and financial planning Retirement plan / 401(k) consulting and administration services Full-service investment management through BAR Financial and Financial Network Investm
Slide 30: Voting Results
Voting Results • Report of Election Presented by Paul W. Wenger Corporate Secretary - ENB Financial Corp
Slide 31: Adjournment
Adjournment • Mission Statement: 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