East Penn Financial — Shareholder Meeting (May 2007)
51 slides from East Penn Financial's shareholder meeting presentation, May 14, 2007
Slide 1: Welcome to Our Annual Meeting
WELCOME TO OUR ANNUAL MEETING May 10, 2007
Slide 2: Please rise for our National Anthem
Please rise for our National Anthem East Penn Financial Corp.
Slide 3: Music by Aram Basmadjian
MUSIC BY ARAM BASMADJIAN
Slide 4: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
“WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 5: Bruce R. Keil, Secretary
BRUCE R. KEIL SECRETARY
Slide 6: Forrest "Woody" A. Rohrbach
Forrest “Woody” A. Rohrbach East Penn Financial Corp.
Slide 7: Dale A. Dries
Dale A. Dries East Penn Financial Corp.
Slide 8: Tom R. Gulla
East Penn Financial Corp. Tom R. Gulla
Slide 9: Allen E. Kiefer
East Penn Financial Corp. Allen E. Kiefer
Slide 10: Brent L. Peters
East Penn Financial Corp. Brent L. Peters
Slide 11: Gordon K. Schantz
East Penn Financial Corp. Gordon K. Schantz
Slide 12: Linn H. Schantz
East Penn Financial Corp. Linn H. Schantz
Slide 13: Don R. Schneck
East Penn Financial Corp. Don R. Schneck
Slide 14: Peter L. Shaffer
East Penn Financial Corp. Peter L. Shaffer
Slide 15: "Harry" Tantaros
East Penn Financial Corp. “Harry” Tantaros
Slide 16: Dr. Geoff Toonder
East Penn Financial Corp. Dr. Geoff Toonder
Slide 17: Atty. Don S. Young
East Penn Financial Corp. Atty. Don S. Young
Slide 18: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
“WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 19: Bruce R. Keil, Secretary
BRUCE R. KEIL SECRETARY
Slide 20: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
“WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 21: Motion to Waive the Reading of the 2006 Minutes
Motion to Waive the Reading of the Minutes of the 2006 Annual Meeting of Shareholders and to Approve the 2006 Minutes
Slide 22: Don Peterson, Judge of Election
DON PETERSON JUDGE OF ELECTION
Slide 23: Motion to Elect Four Class C Directors
Motion to Elect Four Class C Directors Allen E. Kiefer Brent L. Peters Forrest A. Rohrbach Peter L. Shaffer
Slide 24: Motion to Ratify Beard Miller Company LLP as Independent Auditors
Beard Miller Company LLP as Independent Auditors for the year ending December 31, 2007 Motion to ratify the selection of
Slide 25: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
“WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 26: Brent L. Peters, Chairman, President & CEO
BRENT L. PETERS CHAIRMAN, PRESIDENT & CEO
Slide 27: Forward-looking Statements
Forward–looking Statements The Corporation has made forward-looking statements in this report that are subject to assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. In
Slide 28: Historical Yields
Historical Yields Source: FactSet Week of May 7 th , 2007
Slide 29: Net Interest Rate Spread
Net Interest Rate Spread Liability costs have risen faster than asset yields 6.04% 6.22% 6.30% 6.37% 6.38% 6.48% 2.58% 2.72% 3.13% 3.33% 3.43% 2.87% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 12/31/2005 3/31/2006 6/30/2006 9/30/2006 12/31/2006 3/31/2007 2.00% 2.25%
Slide 30: 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 $3.61 2006 Ast Qtr
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 $3.61 2006 Ast Qtr
Slide 31: Income Statement - 2006 vs 2005
East Penn Financial Corporation Income Statement - 2006 vs 2005 (in thousands) $13,308 $11,107 $2,732 $389 $933 $3,611 $12,771 $10,345 $2,511 $420 $3,503 $1,014 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Net interest income Operating expenses Other income Provision for loan losses Tax pr
Slide 32: Balance Sheet Highlights - 2006 vs 2005
East Penn Financial Corporation Balance Sheet Highlights - 2006 vs 2005 (in millions) $439.5 $70.4 $319.5 $43.9 $379.4 $24.0 $25.2 $404.2 $75.2 $290.3 $328.0 $22.8 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Total Assets Investments Loans, net of ALLL Deposits & CMA Borrowings Stkholder Equi
Slide 33: Net Outstanding Loans
Net Outstanding Loans in millions
Slide 34: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2004 2005 2006 Commercial Commercial RE Residential RE RE Construction Tax Exempt Home Equity Other Consumer
Slide 35: Past Due Loans
Past Due Loans st Qtr. Years Ended December 1.41% 1.20% 1.29% Peer Group Avg. 1.99% 0.83% 0.71% 0.92% Total Past Dues 0.10% 0.13% 0.22% 0.44% 90 Days and Over 1.89% 0.70% 0.49% 0.48% 30-89 Days 2007 2006 2005 2004
Slide 36: 450.0 $381.1 400.0 S728 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 2002 2003,
450.0 $381.1 400.0 S728 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 2002 2003, 2004 2005 2006 1st Qir 2007
Slide 37: Deposit Market Share Analysis – Lehigh County
Deposit Market Share Analysis – Lehigh County 2006 2005 2004 # of Branches Total Deposits Rank Market Share Rank Market Share Rank Market Share Wachovia Corporation (NC) 2,116,153 38.48 38.46 34.93 KNBT Bancorp (PA) 436,090 7.93 7.62 6.70 American Bank Incorporated (PA) 370,8 6.74 7.06 6.59 East Pen
Slide 38: Deposit Mix
DEPOSIT MIX 12/31/2006 DDA Non-interest 12% Deposits Time 50% DDA and MMA Savings 38%
Slide 39: Dividends Per Share
Dividends Per Share (annualized) 025 020 0.15 0.10 0.05 0.00 2002 2003 2004 2005 2006
Slide 40: Semi-Annual Cash Dividend
Semi-Annual Cash Dividend The first of two dividend payments… 12 cents per share, payable February 28, 2007 to shareholders of record February 2, 2007. The second cash dividend payment will be announced in the second half of 2007.
Slide 41: Selected Financial Data
Selected Financial Data 3.6 % $0.55 $0.57 Diluted earnings per share 1.8% $0.56 $0.57 Basic earnings per share -13.9% 15.86% 15.64% Return on average equity -5.4% 0.92% 0.87% Return on average assets -2.5% 8.0% 7.8% Tier I leverage capital 10.2% $3.62 $3.99 Book value 10.2% 22,841 25,161 Stockholder
Slide 42: Summary of Shares Traded
Twelve Months Ended: December 31, 2006 481,095 shares December 31, 2005 494,640 shares December 31, 2004 476,834 shares Four Months Ended: April 30, 2007 224,326 shares Stock Price Range: High Low 2006 $ 9.50 $ 7.66 2005 $ 9.50 $ 8.39 2004 $ 10.59 $ 7.75 Closing price @ April 30, 2007 - - $ 8.28 (So
Slide 43: Stock Price Performance
Three Year Comparative Price Appreciation Five Year Comparative Price Appreciation Note: Data as of May 7, 2007 Source: SNL Financial (21.5%) 37.4% 19.4% 49.5% 43.8% 34.6% Stock Price Performance EPEN Overview 35.3% 31.6%
Slide 44: Brent L. Peters, Chairman, President & CEO
BRENT L. PETERS CHAIRMAN, PRESIDENT & CEO
Slide 45: Questions?
QUESTIONS?
Slide 46: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
“WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 47: Management Reports and Reported Actions of Directors and Officers
Management Reports and Reported Actions of the Corporation’s Directors and Officers for the Year Ending December 31, 2006. Motion to approve a resolution to confirm
Slide 48: Don Peterson, Judge of Election
DON PETERSON JUDGE OF ELECTION
Slide 49: "Woody" Rohrbach, Lead Independent Director and Vice-Chairman
. “WOODY” ROHRBACH Lead Independent Director and Vice-Chairman
Slide 50: Motion to Adjourn the Annual Meeting
Motion to adjourn the Annual Meeting of Shareholders for the Year 2007
Slide 51: Please Join Us for Refreshments
PLEASE JOIN US IN THE MUSEUM FOR REFRESHMENTS