ENB Financial Corp · OTC:ENBP
ENB Financial — Shareholder Meeting (May 2016)
35 slides from ENB Financial's shareholder meeting presentation, May 10, 2016
Slide 1: 2016 Annual Shareholders Meeting
Le — =7 <| " he s : 2016 ANNUAL SHAREHOLDERS MEETING MAY 10, 2016 ENB Financial Corp
Slide 2: Welcome, Minutes, Voting, Discussion of Company Condition
Welcome Reading of the Minutes Certify Voting Activity Vote on Matters of the Proxy Statement Discussion of Company Condition • President’s Remarks • Financial Review Questions & Answers Voting Results Adjournment
Slide 3: Meeting Officers: Groff, Harting, Lied
Aaron L. Groff, Jr. • President, CEO and Board Chairman – ENB Financial Corp and Ephrata National Bank Barry W. Harting • Vice President and Corporate Secretary – ENB Financial Corp • Senior Vice President and Chief Risk Officer – Ephrata National Bank Scott E. Lied • Treasurer – ENB Financial
Slide 4: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 5: Matters of the Proxy Statement
1. Elect three (3) Class A directors to serve a 3-year term 2. Approve and adopt an amendment to Article 7 of the Articles of Incorporation to eliminate cumulative voting in the election of directors 3. Conduct a non-binding shareholder vote on the resolution to approve executive compensation 4. Tra
Slide 6: Election of Directors – Class A
1. Elect three (3) Class A directors to serve a 3-year term Election of Directors – Class A Aaron L. Groff, Jr. Dr. Brian K. Reed Paul M. Zimmerman, Jr.
Slide 7: Continuing Directors – Class B and Class C
Continuing Directors – Class B Willis R. Lefever Donald Z. Musser Judith A. Weaver Continuing Directors – Class C Susan Y. Nicholas Mark C. Wagner Paul W. Wenger
Slide 8: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 9: Retiring and Emeritus Directors
Janice S. Eaby Richard H. Binner John H. Shuey Roger S. Kline John L. Weber
Slide 10: Presented by: Aaron L. Groff, Jr.
Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp
Slide 11: Dedication
DEDICATION
Slide 12: Mission: Independent Community Bank of Undisputed Integrity
To remain an independent community bank of undisputed integrity, serving the communities of 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 highly de
Slide 13: Strategic Priorities
1. Develop & Execute a Growth Strategy 2. Attract, Retain, Develop & Reward Employees 3. Leverage Technology 4. Take Advantage of Market Disruption 5. Opportunistic Mergers & Acquisitions
Slide 14: Growth: Morgantown Office
GROWTH Morgantown Office
Slide 15: Georgetown Drive-up Facility
Georgetown Drive-up Facility
Slide 16: Leveraging Technology: ENB Deposit on the Go!
LEVERAGING TECHNOLOGY ENB Deposit on the Go!
Slide 17: Vision for Clients, Employees, Shareholders, Communities
To help clients achieve financial success as defined by them by discovering their goals and dreams in order to provide helpful advice. We want: Our employees to find fulfillment in their work through professional growth, recognition, achievement and customer accolades; Our customers to achieve t
Slide 18: Presented by: Scott E. Lied
Presented by: Scott E. Lied Treasurer - ENB Financial Corp
Slide 19: Unaudited Financial Information and 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
Slide 20: Net Income 2011-2015 (Dollars in Thousands)
8,000 7,642 7,710 7,148 7,092 6,910 Dollars in Thousands 6,000 4,000 2,000 0 2011 2012 2013 2014 2015
Slide 21: Income Statement Comparison 2015 vs 2014
2015 2014 Incr./Decr. Incr./Decr. Dollars in Thousands $ $ $ % Net Interest Income 23,098 22,461 637 2.8 Provision for Loan Loss 150 (50) 200 N/A Other Income 7,215 6,439 776 12.1 Security Gains 2,840 3,109 (269) -8.7 Operating Expense 24,735 23,421 1,314 5.6
Slide 22: Mortgage Production and Balances
2015 2014 Increase Increase Dollars in Millions $ $ $ % Production: Originations 65.0 31.9 33.1 103.8 Mortgage Balances: Total Mortgage Held Balance 109.1 100.5 8.6 8.6 Adjustable Rate Mortgages 18.7 5.5 13.2 240.0
Slide 23: Mortgage Gains and Fee Income
2015 2014 Increase Increase Dollars in Thousands $ $ $ % Mortgage Gains 805.6 414.4 391.2 94.4 Mortgage Fee Income 524.6 202.2 322.4 159.4
Slide 24: ROA, ROE, Net Interest Margin, Efficiency Ratio
2015 2014 % % Return on Average Assets (ROA) 0.79 0.84 Return on Average Equity (ROE) 7.38 7.98 Net Interest Margin 3.07 3.10 Efficiency Ratio 76.86 76.11
Slide 25: Earnings, Dividends Per Share and Payout Ratio
2015 2014 Earnings Per Share $2.42 $2.48 Dividends Per Share $1.08 $1.07 Dividend Payout Ratio 44.6% 43.2%
Slide 26: ENBP vs PA Bank Peer Group
ENBP PA Bank Peer Measurement % % Return of Average Assets (LTM) 0.79 0.82 Return on Average Equity (LTM) 7.40 7.70 Price to Earnings (LTM) 13.40 12.60 Price to Tangible Book 0.97 1.09 Dividend Yield (LTM) 3.32 2.99 *Data as of December 31, 2015 from Boenning & Scattergood, Inc., Q4 2015 Mid-Atlanti
Slide 27: Capital and Asset Quality vs Peers
ENBP PA Bank Peer Measurement % % Capital to Assets 10.50 10.10 Non-Performing Assets/Total Assets 0.04 0.88 Allowance for Loan Losses/Total Loans 1.36 1.13 *Data as of December 31, 2015 from Boenning & Scattergood, Inc., Q4 2015 Mid-Atlantic Regional Bank & Thrift Review
Slide 28: Balance Sheet Growth
• Total Loans up $49.1 million (10.4%) • Total Assets up $48.4 million (5.6%) • Total Deposits up $40.4 million (5.8%) • Total Capital up $2.3 million (2.5%)
Slide 29: First Quarter 2016 vs First Quarter 2015
First Quarter 2016 vs. First Quarter 2015 Earnings: $1.91 million, 30.4% increase Provision for Loan Losses: $(50,000) vs. $200,000 Security Gains: $728,000 vs. $561,000 Other Operating Expense $6,482,000 vs. $6,150,000 Includes $430,000 of CoBank Amortization
Slide 30: 2016 Challenges
2016 Delayed Federal Reserve Rate Action Growth & Expansion Expenses New Market Participants
Slide 31: 2016 Opportunities
2016 Significant Market Disruption Increased Core Earnings – Margin Improvement Significant Loan Growth – Asset Reallocation Increased Mortgage Income
Slide 32: Questions & Answers
QUESTIONS & ANSWERS
Slide 33: Presented by: Barry W. Harting
Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 34: Presented by: Aaron L. Groff, Jr.
Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp
Slide 35: Adjournment – Thank you!
ADJOURNMENT Thank you!