Acnb Corporation · NASDAQ:ACNB
Acnb — Shareholder Meeting (May 2021)
30 slides from Acnb's shareholder meeting presentation, May 6, 2021
Slide 1: ACNB Corporation Annual Meeting of Shareholders May 4, 2021
ACNB Corporation Annual Meeting of Shareholders May 4, 2021 1
Slide 2: Welcome & Introductions
Welcome & Introductions 2
Slide 3: Board of Directors
Board of Directors 3 Alan J. Stock Chairman of the Board Todd L. Herring Vice Chairman of the Board Kimberly S. Chaney Frank Elsner, III James P. Helt Scott L. Kelley James J. Lott Donna M. Newell Daniel W. Potts Thomas A. Ritter Marian B. Schultz D. Arthur Seibel, Jr. David L. Sites James E. Willia
Slide 4: Subsidiary Executive Officers
4 Subsidiary Executive Officers Front left to right: Lynda L. Glass, EVP/Secretary and Chief Risk & Governance Officer; David W. Cathell, EVP/Treasurer & Chief Financial Officer; Laurie A. Laub, EVP/Chief Credit & Operations Officer Back left to right: Douglas A. Seibel, EVP/Chief Lending & Revenue
Slide 5: Business Advisors
5 Business Advisors Bybel Rutledge LLP: Partner Nicholas Bybel, Jr., Esquire RSM US LLP: Partner Patrick Mulloy
Slide 6: Meeting Agenda
• Call to Order & Business Matters • President & CEO Presentation • Shareholder Questions & Answers • Voting Results from Judge of Election • Adjournment 6 Meeting Agenda
Slide 7: 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 virtual meeting as a Shareholder using a proxy control number, you will be able to submit questions during the meeting using t
Slide 8: 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 involve certain risks and uncertainties, including a variety of
Slide 9: Call to Order & Business Matters
Call to Order & Business Matters 9
Slide 10: President & CEO Presentation James P. Helt
President & CEO Presentation James P. Helt 10
Slide 11: ACNB Corporation Overview
11 Bank Established: 1857 Headquarters: Gettysburg, PA Market Capitalization 1 : $259 Million Total Assets: $2.6 Billion Gross Loans: $1.6 Billion Deposits: $2.2 Billion TCE/TA: 8.32% ROAA 2 : 0.97% ROAE 2 : 9.25% LTM Net Interest Margin: 3.35% LTM Noninterest Income/Operating Revenue : 21.43% LTM E
Slide 12: Market Footprint and Deposit Market Share
• ACNB Bank is ranked #1 in Adams County market, with deposit market share of 57.9%¹. • ACNB Bank has the #1 deposit market share in 7 out of 13 defined market areas in Pennsylvania ². • Market footprint covers Southcentral Pennsylvania and Central Maryland. • The Southcentral Pennsylvania and Centr
Slide 13: Overview of 2020 Results
13 Overview of 2020 Results • Year - end 2020 net income was $18.4 million, or $2.13/share, reflecting a 22.5% decrease from 2019. » 2020’s results include d $6.0 million in one - time merger related expenses associated with the Frederick County Bancorp, Inc. (“FCBI”) acquisition. » The year’s resul
Slide 14: Consistent Balance Sheet Growth
14 Consistent Balance Sheet Growth Total Deposits ($MMs) Tangible Common Equity ($MMs) CAGR¹ (‘16 - ’20): 17.4% CAGR¹ (‘16 - ’20): 14.0% CAGR¹ (‘16 - ’20): 19.1% CAGR¹ (‘16 - ’20): 15.3% Total Assets ($MMs) Total Loans ($MMs) 1. Compounded Annual Growth Rate (CAGR)
Slide 15: Performance Trends
15 Performance Trends ROAE (%)¹ Efficiency Ratio(%) EPS ($)¹ TCE / TA (%) TBVPS ($) 1. ROAE and EPS for 2017 and 2020 are adjusted to reflect figures that exclude the one - time merger related charges for the New Windsor Bancorp, Inc. and Frederick County Bancorp, Inc. acquisitions (non - GAAP) Net
Slide 16: Wealth Management
16 Wealth Management At Year - End in Thousands of Dollars • ACNB’s W ealth M anagement business derives a majority of its revenue from noninterest income consisting of trust, investment advisory and brokerage, and other servicing fees. • Wealth Management clients are located largely within the Bank
Slide 17: Russell Insurance Group, Inc.
17 Russell Insurance Group, Inc. At Year - End in Thousands of Dollars • ACNB Corporation's wholly - owned subsidiary, Russell Insurance Group, Inc., is a full - service insurance agency , with licenses in 44 states, that offers a broad range of property , casualty , health, life and disability insu
Slide 18: Diversified and Growing Loan Portfolio
18 Diversified and Growing Loan Portfolio • ACNB a sset q uality measures continue to reflect commitment to sound credit risk management, including conservative underwriting practices, timely credit administrati on processes, and proactive customer relationship management. • Independent loan review
Slide 19: Prudent Reserving Discipline
19 Prudent Reserving Discipline • ACNB actively monitors its loan portfolio and records provision expense to maintain strong asset quality. • To address the impact of the COVID - 19 pandemic, ACNB recorded $2.6 million and $1.6 million in provision expense during Q2’20 and Q3’20. • In addition to CO
Slide 20: Healthy Deposit Portfolio
20 Healthy Deposit Portfolio • Year - end 2020 deposits of $2.2 billion increased 54.8% over 2019. » ACNB picked up $37 4 million in deposits through the Frederick County Bancorp , Inc. transaction that closed in 1Q’20. • ACNB grew organic deposits by approximately 27.8% in 2020, largely a factor of
Slide 21: Focused COVID-19 Response
• To assist customers in managing deposit accounts , fees for account transfers conducted via the Customer Contact Center were waived and there was potential fee relief for overdraft services for a period of time. • For personal and business loan customers experiencing financial hardship, processes
Slide 22: COVID-Loan Considerations
22 COVID - 19 Loan Considerations • Despite no significant deterioration in its loan portfolio thus far throughout the pandemic, ACNB proactively increased its provision expense in 2020, an acknowledgement of the uncertainty in the broader economic environment. • Although many of the Bank’s borrower
Slide 23: COVID-Loan Modifications
23 COVID - 19 Loan Modifications • As of December 31, 2020, the Bank’s commercial exposure to the accommodation and food service sector (NAICS 72) was approximately 7.7% of gross loans. • Beginning in late 1Q’20 and early 2Q’20, the Bank began receiving requests for temporary modifications to repaym
Slide 24: ACNB Helping Hands
24 ACNB Helping Hands was a special initiative launched in April 2020 that served to reinforce ACNB Bank’s ongoing commitment to community during the COVID - 19 pandemic. • This program was funded by ACNB Bank in the amount of $40,000 and supplemented by staff members and Directors affiliated with t
Slide 25: Growth Opportunities
25 Growth Opportunities • Acquisition of top tier and experienced HR talent due to market disruption • Focus on balance sheet expansion, driven by loan growth via commercial lending • Expansion into new markets » Loan Production Offices (Lancaster, PA and Hunt Valley, MD) » Full - Service Offices •
Slide 26: The Road Ahead
The Road Ahead As a community banking organization, we believe that we must consistently strive to maximize shareholder value by : 26 1. Addressing the challenges and opportunities facing our company due to the pandemic, keeping an eye on both short - term and long - term goals. 2. Utilizing a combi
Slide 27: In Conclusion
27 In Conclusion • ACNB Corporation remains well capitalized and positioned to continue our growth trends to the benefit of our customers, employees, shareholders and communities. • Asset quality remains strong as we continue to work through the impacts of the pandemic. • ACNB Corporation remains fo
Slide 28: Shareholder Questions & Answers
Shareholder Questions & Answers 28
Slide 29: Voting Results from Judge of Election
Voting Results from Judge of Election 29
Slide 30: Thank You & Meeting Adjournment
Thank You & Meeting Adjournment 30 Stock Symbol: ACNB (Nasdaq) www.acnb.com