ENB Financial Corp · OTC:ENBP
ENB Financial — Shareholder Meeting (May 2010)
37 slides from ENB Financial's shareholder meeting presentation, May 4, 2010
Slide 1: ENB Financial Corp 2010 Annual Meeting
ENB Financial Corp 2010 Annual Meeting 7 ~XT aN? 7? > aa
Slide 2: Meeting Agenda
MEETING AGENDA • Welcome • Vote on Matters of the Proxy Statement • Discussion of Condition of Company President’s Remarks Financial Review Lending Review ENB’s Money Management Group • Questions & Answers • Vote Results • Adjournment
Slide 3: Presenters
PRESENTERS • Aaron L. Groff,, Jr. President, CEO and Board Chairman – ENB Financial Corp and Ephrata National Bank • Paul W. W Wenger Vice President and Corporate Secretary – ENB Financial Corp • Scott E. Lied Treasurer – ENB Financial Corp • Dale G. Burkholder Senior S i Vice Vi President P
Slide 4: Voting Process
VOTING PROCESS Proxy Holders Judges of Election • Janice S. Eaby • Richard H. Binner • John H H. Shuey • Roger S. S Kline • William M. Rohrbach
Slide 5: Matters of Proxy
MATTERS OF PROXY • Elect four (4) Class A directors to serve three-year terms • Elect three (3) Class B directors to serve two-year terms • Elect El three h (3) Class Cl C directors di to serve one-year terms • Other Business
Slide 6: Board Classification
BOARD CLASSIFICATION Purpose of classifying the directors: • Structure better promotes continuity and stability • Encourages decision-making by board members b bbased d on llong-term results l
Slide 7: Current Directors
CURRENT DIRECTORS Class A Election (3 Year Term) • Aaron L. Groff, Jr. • Paul M. Zimmerman, Jr. • J. Harold Summers • Thomas H. Zinn Class B Election (2 Year Term) • Willis R. R Lefever • Bonnie R. R Sharp • Donald Z. Musser Class C Election (1 Year Term) • Susan Y. Nicholas • Paul W. Wenger • Mark
Slide 8: President's Remarks
PRESIDENT’S PRESIDENT S REMARKS • Aaron L L. Groff Groff, Jr Jr. President/CEO – ENB Financial Corp
Slide 9: Mission
MISSION • 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, service
Slide 10: We Care
WE CARE • Courteous • Accurate • Responsive i • Empowered
Slide 11: Banking Climate
us FDIC Bank Failures 160 140 120 100 2008 140 2009 64 2010 YTD
Slide 12: Strategic Initiatives
STRATEGIC INITIATIVES • Strategic Initiatives for 2010 – 2012 Loan Growth Strengthen Capital Non-Interest Income Improvement Increase I D Deposit it Market M k t Share Sh ini Lancaster L t County C t
Slide 13: Financial Review
FINANCIAL REVIEW • Scott E. E Lied Treasurer – ENB Financial Corp
Slide 14: Disclosures
DISCLOSURES • Unaudited Financial Information Some of the following slides do present financial information that is unaudited. Therefore, this information is s bject to adjustments subject adj stments that could co ld be necessary necessar uponpon completion of the annual audit. • Forward o wa d L
Slide 15: Net Income
8,000 3 6,000 Z 4.771 5.063 8 4,300 = | A bE A js ——_ 2006 2007 2008 2009
Slide 16: 2009 Significant Items
2009 SIGNIFICANT ITEMS Net Interest Income $ 858,000 increase Other Income $1,533,000 increase Operating Expenses $1 191 000 decrease $1,191,000 (net of FDIC assessment) FDIC Assessment $ 792,000 increase Provision Expense $2,251,000 increase
Slide 17: Net Interest Income
N Dollars in Millions 22.0 21.0 20.0 19.0 18.0 17.0 16.0 15.0 14.0 2006 2007 20.1 2008 21.0 2009
Slide 18: Other Income
OTHER INCOME Data shown excludes securities g gains and losses.
Slide 19: Operating Expenses
OPERATING EXPENSES Graph p represents p operating p g expenses p net of annual FDIC assessments.
Slide 20: FDIC Assessment
1,022 230 Dollars in Thousands 2006 2007 2008 2009
Slide 21: Provision Expense
P 2.920 669 Dollars in Thousands 2006 2007 2008 2009
Slide 22: Earnings Per Share
EARNINGS PER SHARE
Slide 23: Dividends Per Share
$0.75 - $0.50 - $0.17 2006 2007 $1.24 2008 2009
Slide 24: Dividend Comparison
DIVIDEND COMPARISON Current Change from Dividend Bank Name Dividend High (2006 – 2008) Union National $0 00 $0.00 -100.00% 100 00% Community Bank 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% 22.5
Slide 25: Shareholder Value
SHAREHOLDER VALUE ENBP SUSQ FULT Average Stock Price* – Oct 2008 $25.69 $17.12 $11.62 Average Stock Price* – Jul 2009 $24 83 $24.83 $4 80 $4.80 $6 05 $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%
Slide 26: Peer Analysis
PEER ANALYSIS Measurement ENB Peer* Peer Return on Average Assets (ROAA) 0.60% 0.19% Net Interest Margin 3 49% 3.49% 3 71% 3.71% Other Income 0.88% 0.74% Operating Expense 2.81% 2.96% Tier 1 Leverage Capital 9.56% 8.71% * Peer Group p is defined as National UBPR Peer Group p $300 $ Million to $1 $ B
Slide 27: First Quarter Results
FIRST QUARTER RESULTS • Q1 2010 $1,468,000 versus $1,081,000 (Q1 2009) 35.8% 35 8% increase 3.0% balance sheet growth
Slide 28: Lending Review
LENDING REVIEW • Dale G. G Burkholder Senior Vice President and Senior Lender – Ephrata National Bank
Slide 29: Credit Quality
CREDIT QUALITY Measurement ENB Peer* Peer 30 – 89 Days Past Due 0.20% 1.43% 90+ Days Past Due 0 17% 0.17% 0 15% 0.15% Non-Accrual 1.42% 2.91% Total Delinquencies 1.79% 4.49% Net Losses to Average Total Loans 0.29% 1.09% * Peer Group p is defined as National UBPR Peer Group p $300 $ Million to $1 $ B
Slide 30: Loan Portfolio Mix
LOAN PORTFOLIO MIX Loan Type yp 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
Slide 31: Loan Growth
LOAN GROWTH * Peer Group p is defined as National UBPR Peer Group p $300 $ Million to $1 $ Billion,, a total of 1,198 , banks.
Slide 32: ENB's Money Management Group
ENB’S MONEY MANAGEMENT GROUP • William L. L Barnett Vice President – ENB’s Money Management Group
Slide 33: Strategic Focus
STRATEGIC FOCUS • Our Focus 2010-2011 and Beyond • Target Prospects • Services to Community
Slide 34: Goals
GOALS • Our Money y Management g Group p Goals Become a trust and asset management group that customers and non-customers automatically recognize when the topic of money management and investment arises. Provide a solution to every customer or prospect we meet • In the community • In our daily s
Slide 35: Questions & Answers
QUESTIONS & ANSWERS
Slide 36: Voting Results
VOTING RESULTS • Report of Election Presented by Paul W. Wenger Corporate Secretary – ENB Financial Corp
Slide 37: Adjournment
ADJOURNMENT Please l join j i us for f refreshments f h in the Hibshman Conference Room.