ENB Financial Corp · OTC:ENBP

ENB Financial — Shareholder Meeting (May 2014)

36 slides from ENB Financial's shareholder meeting presentation, May 6, 2014

  1. Slide 1: Shareholders Meeting May 6, 2014

    SHAREHOLDERS MEETING MAY 6, 2014 ENB Financial Corp

  2. Slide 2: Meeting agenda

     Welcome  Reading of the Minutes  Certify Voting Activity  Vote on Matters of the Proxy Statement  Discussion of Company Condition • President’s Remarks • Financial Review • Growth Initiatives  Questions & Answers  Voting Results  Adjournment

  3. Slide 3: Presenting officers

     Aaron L. Groff, Jr. • President, CEO and Board Chairman – ENB Financial Corp and Ephrata National Bank  Paul W. Wenger • Vice President and Corporate Secretary – ENB Financial Corp • Senior Vice President and Cashier – Ephrata National Bank  Scott E. Lied • Treasurer – ENB Financial Corp • Senio

  4. Slide 4: Presented by: Paul W. Wenger

    Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp

  5. Slide 5: Election of Directors – Class C

    Elect three (3) Class C directors to serve a three-year term Election of Directors – Class C Susan Y. Nicholas Mark C. Wagner Paul W. Wenger

  6. Slide 6: Continuing Directors – Class A and B

    Continuing Directors – Class A Aaron L. Groff, Jr. Brian K. Reed Paul M. Zimmerman, Jr. Continuing Directors – Class B Willis R. Lefever Donald Z. Musser Judith A. Weaver

  7. Slide 7: Presented by: Paul W. Wenger

    Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp

  8. Slide 8: Directors emeriti

     Janice S. Eaby  Richard H. Binner  John H. Shuey  Roger S. Kline  William M. Rohrbach

  9. Slide 9: Presented by: Aaron L. Groff, Jr.

    Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp

  10. Slide 10: 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 personal service, delivered by a

  11. Slide 11: Service values

    • Courteous • Accurate • Responsive • Empowered

  12. Slide 12: Investing in Tomorrow

    INVESTING IN TOMORROW wr iE

  13. Slide 13: Growing Branches

    GROWING BRANCHES -

  14. Slide 14: Growing Branches – Myerstown

    GROWING BRANCHES - MYERSTOWN

  15. Slide 15: Growing Technology

    GROWING TECHNOLOGY ENB Bank On The Go! mobile banking app keeps you financially connected anytime from anywhere. It's secure, easy to install and easy to use. From checking balances and viewing transactions to making transfers, your money is always at your fingertips. It’s one more way ENB can help

  16. Slide 16: Growing Loans

    GROWING LOANS

  17. Slide 17: Home equity and mortgage promotions

    05% CONTACTUS, ENB) Ephrata ‘Online Banking Login farall ional Bank USERID, Sm | THE ALL-OUT Beers as APR* for some of your a - =e winter problem inet 3 % repairs. e /APR’ HOME EQUITY SPECIAL iterates The dream of owning your own hom fant Niver ee retention ne © ENB can help. fn ENB Mortgage represe

  18. Slide 18: Presented by: Scott E. Lied

    Presented by: Scott E. Lied Treasurer - ENB Financial Corp

  19. Slide 19: Unaudited Financial Information; Forward Looking Statements

    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/or language us

  20. Slide 20: Net income, 2009–2013

    7,642 7,710 8,000 7,148 6,345 Dollars in Thousands 6,000 4,300 4,000 2,000 0 2009 2010 2011 2012 2013

  21. Slide 21: 2013 vs 2012 income changes

    2013 2012 Change Dollars In Thousands $ $ $ Net Interest Income 21,524 21,854 (330) Gains on Securities 3,217 940 2,277 Loan Loss (Credit) Provision (225) (975) (750) Other Income* 6,180 6,337 (157) Operating Expense 21,935 21,169 (766) Tax Expense 1,501 1,295 (206) Total Income Impact 68 *Net of Se

  22. Slide 22: Gains on securities, 2009–2013

    3,500 3,217 3,000 Dollars in Thousands 2,500 2,000 1,500 1,500 972 940 1,000 500 175 0 2009 2010 2011 2012 2013

  23. Slide 23: Loan loss provision, 2009–2013

    3,500 2,920 3,000 2,500 Dollars in Thousands 2,000 1,800 1,575 1,500 1,000 500 0 -500 (225) -1,000 (975) -1,500 2009 2010 2011 2012 2013

  24. Slide 24: Return on assets, equity and margin ratios

    2013 2012 % % Return on Average Assets 0.96 0.98 Return on Average Equity 8.92 8.87 Average Equity Ratio 10.78 11.11 Net Interest Margin 3.17 3.35 Efficiency Ratio 73.36 69.53

  25. Slide 25: Earnings, dividends per share and payout ratio

    2013 2012 Earnings Per Share $2.70 $2.68 Dividends Per Share $1.04 $1.00 Dividend Payout Ratio 38.52% 37.31%

  26. Slide 26: ENBP vs PA bank peer: returns and valuation

    ENBP** PA Bank Peer Measurement % % Return of Average Assets (LTM) 0.96 0.75 Return on Average Equity (LTM) 9.03 7.36 Price to Earnings (LTM) 11.08 16.77 Price to Tangible Book 1.02 1.23 Dividend Yield (LTM) 3.49 2.61 *As of December 31, 2013 **Data from McAdams Wright Ragen’s Q4 2013 Community Bank

  27. Slide 27: ENBP vs PA bank peer: balance sheet measures

    ENBP** PA Bank Peer Measurement % % Loans/Deposits 65.62 78.35 Non-Interest Deposits/Total Deposits 26.39 13.76 Equity to Assets 10.31 10.23 Non-Performing Assets/Total Assets 0.17 1.47 Allowance for Loan Losses/Net Loans 1.67 1.50 *As of December 31, 2013 **Data from McAdams Wright Ragen’s Q4 2013

  28. Slide 28: Loans by type

    12/31/13 12/31/12 Growth Growth Loan Type $ $ $ % Commercial Real Estate 221,523 194,025 27,498 14.2 Consumer 163,302 159,636 3,666 2.3 Commercial & 53,395 60,698 (7,303) (12.0) Industrial Total Loans 438,220 414,359 23,861 5.8 Dollars in Thousands

  29. Slide 29: Agriculture loans by county

    12/31/13 % of County $* Total Lancaster 66,804 51.0 Lebanon 31,042 23.7 Berks 25,731 19.6 Misc. (Out of Market) 7,502 5.7 Total 131,079 100.0 *Dollars in Thousands. Based on Ag sector NAICS codes

  30. Slide 30: Q1 2014 results

    Q1 2014 Earnings: $1,838,000 versus $2,008,000 (Q1 2013) • 8.5% decrease from Q1 2013 Net Interest Margin: • Q1 2014 – 3.23% • Q4 2013 – 3.17% Security Gains: $663,000 versus $918,000 (Q1 2013) Credit Provision: $200,000 versus $50,000 (Q1 2013)

  31. Slide 31: Challenges

     Highly Competitive Lending Environment  Increasing Loan Yield  Further Margin Improvement  Increased Regulatory Burden

  32. Slide 32: Opportunities and strengths

     New Branches/Market Opportunities  Agriculture Lending Strength  Strategic Mortgage Initiative  High Levels of Liquidity  Improved Balance Sheet Mix  Strong Brand Equity

  33. Slide 33: Service values

    • Courteous • Accurate • Responsive • Empowered

  34. Slide 34: Questions & Answers

    QUESTIONS & ANSWERS

  35. Slide 35: Presented by: Paul W. Wenger

    Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp

  36. Slide 36: Adjournment – Thank you

    ADJOURNMENT Thank you!

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