ENB Financial Corp · OTC:ENBP
ENB Financial — Shareholder Meeting (May 2019)
37 slides from ENB Financial's shareholder meeting presentation, May 7, 2019
Slide 1: 2019 Annual Shareholders Meeting
2019 Annual Shareholders Meeting ENB Financial Corp
Slide 2: Agenda
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 • Questions & Answers • Voting Results • Adjournment
Slide 3: Presenters
Presenters 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
Slide 4: Presenters
Presenters Scott E. Lied Treasurer – ENB Financial Corp Senior Vice President and Chief Financial Officer – Ephrata National Bank Jeffrey S. Stauffer Senior Vice President and Senior Lender – Ephrata National Bank
Slide 5: Meeting Certification
Meeting Certification Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 6: Matters of Proxy
Matters of Proxy Proxy Holders 1. Elect three (3) Class A directors to serve a 3-year term 2. Conduct a non-binding shareholder vote on executive comp 3. Conduct a non-binding vote on the frequency of the non-binding shareholder vote on executive comp 4. Ratify the selection of S.R. Snodgrass, P.C.
Slide 7: Matters of Proxy
Matters of Proxy 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 Jeffrey S. Stauffer
Slide 8: Current Directors
Current Directors Continuing Directors – Class B Willis R. Lefever Judith A. Weaver Continuing Directors – Class C Joshua E. Hoffman Susan Y. Nicholas Mark C. Wagner Paul W. Wenger
Slide 9: Voting Process
Voting Process Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 10: Voting Process
Voting Process Proxy Holders Judges of Election Janice S. Eaby Paul W. Wenger John H. Shuey Roger S. Kline John L. Weber
Slide 11: President's Remarks
President’s Remarks Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp
Slide 12: Mission Statement
Mission Statement 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
Slide 13: Vision Statement
Vision Statement To help clients achieve financial success as defined by them by discovering their goals and dreams in order to provide helpful advice.
Slide 14: 2019 – 2021 Strategic Plan
2019 – 2021 Strategic Plan 1. Energize employees and manage succession 2. Improve efficiency and financial performance 3. Attract customers at earlier stages of financial life 4. Improve how we deliver the Bank to area businesses 5. Implement a focused shareholder relations program
Slide 15: Employees
Employees
Slide 16: Customers
Customers
Slide 17: Shareholders
Shareholders • Maximize Efficiency • Dividend Increases • Stock Split • OTCQX Exchange • Stock Buy Back
Slide 18: Keeping our Customers Safe
Keeping our Customers Safe
Slide 19: Community
Community
Slide 20: Financial Results
Financial Results Presented by: Scott E. Lied Treasurer - ENB Financial Corp
Slide 21: Disclosures
Disclosures 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 langu
Slide 22: Net Income
Net Income 9,749 10,000 7,553 7,092 6,910 8,000 6,344 Dollars in Thousands 6,000 4,000 2,000 0 2014 2015 2016 2017 2018
Slide 23: Significant Items
Significant Items 2018 2017 Incr./Decr. Incr./ Dollars in Thousands $ $ $ Decr.% Net Interest Income 33,124 30,178 2,946 9.8 Provision for Loan Loss 660 940 (280) -29.8 Other Income 11,328 9,646 1,682 17.4 Security Gains/(Losses) (291) 675 (966) NA Operating Expense 32,446 30,877 1,569 5.1 Pre Tax I
Slide 24: 2018 Balance Sheet Growth
2018 Balance Sheet Growth Total Assets up $64.2 million + 6.2% Total Loans up $96.5 million + 16.2% Total Deposits up $53.3 million + 6.1% Total Capital up $3.0 million + 3.1%
Slide 25: Performance Ratios
Performance Ratios 2018 2017 2016 % % % Return on Average Assets (ROA) 0.93 0.63 0.80 Return on Average Equity (ROE) 9.94 6.46 7.74 Net Interest Margin 3.46 3.46 3.12 Efficiency Ratio 71.58 73.23 75.12
Slide 26: Per Share Data
Per Share Data 2018 2017 2016 Earnings Per Share $3.42 $2.23 $2.65 Dividends Per Share $1.15 $1.12 $1.09 Dividend Payout Ratio 33.63% 50.22% 41.13%
Slide 27: 2018 Peer Analysis
2018 Peer Analysis ENBP PA Bank Peer* Measurement % % Return on Average Assets LTM 0.93 0.96 Core Return on Average Equity 9.9 9.7 Price to Earnings LTM 10.4 12.5 Price to Tangible Book 98.6 128.9 Dividend Yield 3.36 2.93 *Data as of December 31, 2018 from Boenning & Scattergood, Inc., 1 st Qtr. 201
Slide 28: 2018 Peer Analysis
2018 Peer Analysis ENBP PA Bank Peer* Measurement % % Tangible Capital to Assets 9.4 9.1 Tier 1 Ratio 13.2 13.0 Total Capital Ratio 14.3 14.3 Efficiency Ratio (Adjusted) 73.0 64.7 Non-Performing Assets/Total Assets 0.17 0.58 Allowance for Loan Losses 1.25 1.05 *Data as of December 31, 2018 from Boen
Slide 29: First Quarter 2019 Results
First Quarter 2019 Results (Unaudited) Earnings: $2.6 million, Down $218,000, or 7.7%. *Adjusted for BOLI: Up $695,000, or 36.4% ROA: 0.97% ROE: 10.22% Net Interest Income: Up $1.2 million, or 15.9% Net Interest Margin: 3.59% Mortgage Gains: $349,000 vs. $235,000 * Non-GAAP Financial Measurement
Slide 30: Loan Growth
Loan Growth Presented by: Jeffrey S. Stauffer SVP Senior Lender – Ephrata National Bank
Slide 31: Area of Focus 2018 Loan Growth
Area of Focus 2018 Loan Growth 2018 2017 Increase Increase Dollars in Millions $ $ $ % Commercial R/E 285.4 260.8 24.6 9.4 Consumer R/E 249.3 44.4 17.8 293.7 Comm & Industrial 104.1 80.9 23.2 28.7 Consumer Loans 9.2 5.3 3.9 73.6 Total Loans * 692.5 596.3 96.2 16.1 * Net of Deferred Fees
Slide 32: Commercial Loan Growth
Commercial Loan Growth Commercial Mortgages - Grew $11.3 million or 12.6% - Portfolio grew to $101.4 million Commercial & Industrial (C&I) - Grew $19.6 million or 47.4% - Portfolio grew to $61.0 million
Slide 33: Agricultural Loan Growth
Agricultural Loan Growth Agricultural Mortgages - Grew $13.9 million or 9.1% - Portfolio grew to $165.9 million Agricultural C & I Loans - Grew $1.7 million or 9.1% - Portfolio grew to $20.5 million Ag Loans account for 26.9% of Total Loans
Slide 34: Residential Loan Growth
Residential Loan Growth 1 – 4 Family Residential Mortgages - Grew $42.1 million or 23.8% - Portfolio grew to $219 million Home Equity Lines of Credit - Grew $3.3 million or 5.4% - Portfolio grew to $64.4 million
Slide 35: Voting Results
Voting Results Presented by: Barry W. Harting Corporate Secretary - ENB Financial Corp
Slide 36: Communication
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Slide 37: 2019 Annual Shareholders Meeting
2019 Annual Shareholders Meeting ENB Financial Corp