Acnb Corporation · NASDAQ:ACNB
Acnb — Debt Investor Presentation (March 2021)
31 slides from Acnb's debt investor presentation, Mar 30, 2021
Slide 1: ACNB Corporation
ACNB Corporation Nasdaq Listed: “ACNB” 16 Lincoln Square, P.O. Box 3129 Gettysburg, PA 17325 717.334.3161 / 888.334.2262 www.acnb.com 3/23/2021
Slide 2: Confidentiality Notice
Confidentiality Notice This Investor Presentation (the "Presentation") is being furnished to a limited number of parties who may be interested in or have expressed an interest in investing in the subordinated notes (the "Notes") of ACNB Corporation (the "Company"). The Company has engaged Boenning &
Slide 3: Note to Recipients
Note to Recipients The Presentation has been prepared solely for general informational purposes by the Company and is being furnished solely for use by prospective participants in considering participation in the proposed Offering. No representation or warranty as to the accuracy, completeness, or f
Slide 4: Note to Recipients
Note to Recipients In making an investment decision, prospective participants must rely on their own examination of the Company, including the merits and risks involved. Prospective participants are urged to consult with their own legal, tax, investment, regulatory and accounting advisers with respe
Slide 5: Offering Disclaimer
Offering Disclaimer This Presentation has been prepared by the Company solely for informational purposes based on information regarding our operations, as well as information from public sources. This Presentation is for information purposes only and is being furnished on a confidential basis to a l
Slide 6: Confidentiality Notice
Confidentiality Notice The information contained in this Presentation was prepared expressly for use in this Presentation and is based on certain assumptions and management's analysis of information available at the time this Presentation was prepared. The information contained herein has been provi
Slide 7: Forward Looking Statement
Forward Looking Statement In addition to historical information, this Investor Presentation, and oral statements made from time to time by the Company’s representatives may contain forward-looking statements. Such forward-looking statements can be identified by the use of forward-looking terminology
Slide 8: Private Placement Terms
Private Placement Terms1 1The placement and sale of the Notes will not be registered under the Securities Act of 1933. The Company will offer and sell the Notes only to Qualified Institutional Buyers and Institutional Accredited Investors. The minimum investment is $500 thousand, subject to an avail
Slide 9: Executive Summary
Executive Summary Executive Summary Notes Bank Established:1857 Headquarters:Gettysburg, PA Market Capitalization1:$259 Million Total Assets:$2.6 Billion Gross Loans:$1.6 Billion Deposits:$2.2 Billion TCE/TA:8.32% ROAA2:0.97% ROAE2:9.25% LTM Net Interest Margin:3.35% LTM Noninterest Income / Operati
Slide 10: Key Notes Market Overview
Key Notes Market Overview Ranked #1 in Adams County market, with deposit market share of 57.9%1. ACNB has the #1 deposit market share in 7 out of 13 defined market areas in Pennsylvania.2 Market footprint covers South-Central Pennsylvania and Central Maryland. The South-Central Pennsylvania and Cent
Slide 11: ACNB Executive Management
ACNB Executive Management Name/TitleBanking ExperienceJoined ACNB BankExperience/DisciplinesPrior Experience James P. Helt President & CEO31 Years2008 Strategy, Sales, Lending, Credit, ExecutiveFB&T, Financial Trust, CMTY, SUSQ David W. Cathell EVP/Treasurer & CFO43 Years2005Finance, Treasury, Strat
Slide 12: Growth Opportunities
Growth Opportunities Organic StrategiesInorganic Strategies Acquisition of top tier and experienced HR talent due to market disruption Focused on balance sheet expansion, driven by loan growth via commercial lending Expansion into new markets Loan Production Offices (Lancaster, PA and Hunt Valley, M
Slide 13: The Successful Community Bank of the Future
The Successful Community Bank of the Future Traditional Loan and 1 3 Trust and Retail Investments
Slide 14: Investment Considerations
Investment Considerations 1Well-established South-Central Pennsylvania community bank 2Experienced management team with strong operational ability Financial performance historically above peers Strategic plans in place to drive core earnings growth Well positioned for future growth in core markets S
Slide 15: Financial Summary: Overview of 2020 Results
Financial Summary Overview of 2020 Results Financial Overview Historical IncomeFor the Year Ended December 31, Year-end 2020 net income was $18.4 million, or $2.13/share, reflecting a 22.5% decrease from 2019. 2020’s results include $6.0 million in one-time merger related expenses associated with th
Slide 16: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets ($MMs) CAGR (’16 – ’20): 17.4% 2,555.4 Total Loans ($MMs) CAGR (’16 – ’20): 14.0% 1,245.91,302.91,275.0 1,648.8 1,206.3 1,595.41,647.71,720.3 909.7 20162017201820192020 20162017201820192020 Total Deposits ($MMs)Tangible Common Equity ($MMs) CAGR (’16 – ’2
Slide 17: Performance Trends
Net Interest Margin (%) Performance Trends ROAE (%)1 3.35 3.51 3.813.81 3.35 9.1710.55 13.6213.33 9.25 20162017201820192020 20162017201820192020 Efficiency Ratio (%) EPS ($)1 67.99 62.37 59.8759.7859.35 1.80 2.22 3.093.362.67 20162017201820192020 20162017201820192020 TCE / TA (%) TBVPS ($) 9.43 8.38
Slide 18: Wealth Management Assets
Wealth Management Assets At Year-End in Thousands of Dollars 103,000110,000 132,000 159,700 195,000224,000232,000257,000 277,000 20162017201820192020 Trust AUMBrokerage AUM (1) ACNB’s wealth management business derives a majority of its revenue from noninterest income consisting of trust, investment
Slide 19: Russell Insurance Group
Russell Insurance Group At Year-End in Thousands of Dollars 36,44038,447 41,647 47,73547,943 20162017201820192020 RIG Premiums ACNB Corporation's wholly-owned subsidiary, Russell Insurance Group, Inc., is a full-service insurance agency that offers a broad range of property & casualty and group life
Slide 20: Strong Credit Quality
Strong Credit Quality1 For the Year Ended December 31, 1Data reflects Bank Level metrics 20
Slide 21: Prudent Reserving Discipline
Prudent Reserving Discipline In $000s unless otherwise stated 2016 2017 2018 2019 2020 Loan Loss Reserve Loan Loss Reserves—Beginning of Period 14,747 14,194 13,976 13,964 13,835 Less: Charge-offs (766) (461) (1,810) (917) (2,987) Add: Recoveries 213 243 178 188 238 Add: Provision Expense 0 0 1,620
Slide 22: Diversified and Growing Loan Portfolio
Diversified and Growing Loan Portfolio Key Underwriting Notes ACNB Asset Quality measures continue to reflect commitment to sound Loan Portfolio Composition as of 12/31/2020 Other credit risk management, including conservative underwriting practices, timelycreditadministrativeprocesses,andproactivec
Slide 23: Focused COVID-19 Response
Focused COVID-19 Response Operations & Employees All community banking offices were limited to drive up services for in person banking transactions, with lobby access available via appointment in the case of critical needs for services such as safe deposit box access. Additional staff were allocated
Slide 24: COVID-19 Loan Considerations
COVID-19 Loan Considerations COVID-19 Response 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
Slide 25: COVID-19 Loan Modifications
COVID-19 Loan Modifications Commercial Loans - Exposed IndustriesNumberLoan% of Total% of Total In $000s unless otherwise statedof LoansBalanceLoan PortfolioCapital Hospitality718,3941.12%7.13% Commercial Real Estate77,1650.43%2.78% Other205,3510.33%2.07% Food Services34,5360.28%1.76% Residential Re
Slide 26: Deposit Portfolio
Deposit Portfolio Healthy Deposit Portfolio Deposit Composition as of 12/31/2020 Year-end 2020 deposits of $2.2 billion increased 54.8% over 2019. ACNB picked up $375 million in deposits through the Frederick County Bancorp transaction that closed in 1Q’20. ACNB grew organic deposits by approximatel
Slide 27: Time Deposit Repricing Opportunities
Time Deposit Repricing Opportunities 192,866 135,068 112,473 36,250 Notes < 3 Months3 Months to 6 Months6 Months to 12 Months > 12 Months Approximately 76.4% of the Bank’s Time Deposits mature within the next 12 months The potential for repricing on these maturing deposits may help benefit the overa
Slide 28: Strong Liquidity Position
Strong Liquidity Position Asset Mix ($000s)Liability Mix ($000s) Total Equity Borrowings Interest-bearing Nonbrokered Noninterest-bearing Deposits Liquidity Summary As of year-end 2020, ACNB had approximately $400 million of cash and cash equivalents between the holding company and the Bank. The Ban
Slide 29: Pro Forma Capital Ratios
Consolidated In $000s unless otherwise stated2020 Placement1 Repayment1 Pro Forma Bank-Level 2020 Placement1 Repayment1 Pro Forma Consolidated Capital Ratios (%)Bank-Level Capital Ratios (%) 14.91 15.75 15.10 15.10 13.68 13.63 13.68 13.63 13.86 13.86 13.86 13.86 8.32 8.29 8.90 8.87 8.49 8.49 9.01 9.
Slide 30: Double Leverage and Interest Coverage
Double Leverage and Interest Coverage Assumes: i) private placement of subordinated notes with gross proceeds of $15.0 million; ii) total placement related expenses of $325 thousand (capitalized); iii) repayment of $5 million in current outstanding debt; and no proceeds downstreamed to the Bank 30 E
Slide 31: Non-GAAP Disclosure
Non-GAAP Disclosure Tangible common equity and tangible book value per common share are non-GAAP financial measures calculated using GAAP figures. Tangible common equity is calculated by excluding the balance of goodwill and intangibles from stockholders’ equity. Tangible book value per share is cal