Acnb Corporation · NASDAQ:ACNB
Acnb — Shareholder Meeting (May 2008)
43 slides from Acnb's shareholder meeting presentation, May 9, 2008
Slide 1: Annual Meeting of Shareholders May 6, 2008
Annual Meeting of Shareholders May 6, 2008
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. Forward-looking statements include the information concerning possible or assumed future results of operations of ACNB Corporation and its Subsidiaries. When we use words such as “believes”, “expects”, “anticipates” or similar expressions, we ar
Slide 3: Bank Stock Prices
Bank Stock Prices Source: Yahoo Finance.com As of Low High 4/30/2008 ACNB $14.80 $19.38 $13.85 Orrstown 28.00 38.00 30.25 Codorus Valley 15.00 19.95 15.80 F & M Trust 23.15 27.55 23.80 Fulton 9.91 16.88 12.47 Susquehanna 16.31 27.75 19.89 PNC 53.10 76.15 69.35 M & T 77.39 125.13 93.23 Wachovia 23.77
Slide 4: Asset Quality
Asset Quality The Corporation does not have any significant concentrations greater than 10% of loans to any one industry or customer, as well as did not originate or hold subprime mortgages in its loan portfolio.
Slide 5: Regulation of Bank
Regulation of Bank The Office of the Comptroller of the Currency, which has primary supervisory authority over national banks, regularly examines banks in such areas as reserves, loans, investments, management practices, and other aspects of operations. These examinations are designed for the protec
Slide 6: Federal Deposit Insurance Corporation Improvement Act (FDICIA)
Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) The Federal Deposit Insurance Corporation Improvement Act requires that institutions be classified, based on their risk-based capital ratios into one of five defined categories, as illustrated below: well capitalized, adequately
Slide 7: Asset Quality Ratios
Asset Quality Ratios 2005 2006 2007 • Non-Performing Loans to Total Loans: 1.40% 0.79% 0.41% • Allowance for Loan Losses to Total Loans: 0.90% 1.03% 1.07% • Allowance for Loan Losses to Non-Performing Loans: 64.4% 130.4% 258.9% • Net Charge-Offs to Total Loans: 0% 0% 0% • Net Recovery (or Loss) in D
Slide 8: Fundamentals of Banking
Fundamentals of Banking 1. Banks buy money in the form of Deposits.
Slide 9: Fundamentals of Banking
Fundamentals of Banking 1. Banks buy money in the form of Deposits. 2. Banks sell money in the form of Loans.
Slide 10: Fundamentals of Banking
Fundamentals of Banking 1. Banks buy money in the form of Deposits. 2. Banks sell money in the form of Loans. 3. Banks make money when the sell price is higher than the buy price.
Slide 11: However, Risk Management is Crucial to Maintain Earnings
However, Risk Management is Crucial to Maintain Earnings 1. Interest Rates can change quickly: • Do not over pay for deposits. • Do not under charge for loans. 2. There is Risk in Lending: • Banks need reasonable assurance that Borrowers can repay within the terms and conditions of the loan agreemen
Slide 12: Performance Comparison
Performance Comparison In Thousands of Dollars 2005 2006 2007 % Change ('07 v '05) Interest Income: • From Loans $27,243 $33,281 $35,740 31.2% • From Securities $15,041 $15,006 $15,841 5.3% Total Interest Income $42,284 $48,287 $51,581 22.1%
Slide 13: Performance Comparison
Performance Comparison In Thousands of Dollars 2005 2006 2007 % Change ('07 v '05) Interest Income: • From Loans $27,243 $33,281 $35,740 31.2% • From Securities $15,041 $15,006 $15,841 5.3% Total Interest Income $42,284 $48,287 $51,581 22.1% Interest Expense: $17,370 $23,448 $26,561 52.9% Net Intere
Slide 14: ACNB Corporation
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Slide 15: Report on Financial Statements - Report of Independent Auditors
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of ACNB Corporation and subsidiaries as of December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the years in the three-year period ended
Slide 16: Report on Internal Controls - Report of Independent Auditors
Beard Miller Company, LLP Report on Internal Controls Report of Independent Auditors In our opinion, ACNB Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control – Integrated Fram
Slide 17: ACNB Corporation Balance Sheet Trends
ACNB Corporation Balance Sheet Trends At Year-End in Millions of Dollars 0 250 500 750 1,000 2000 2001 2002 2003 2004 2005 2006 2007 Assets Deposits Loans Securities 567 169 361 453 290 548 671 927
Slide 18: Net Interest Income
Net Interest Income At Year-End in Millions of Dollars 22.9 23.1 24.3 22.7 24.5 24.9 24.8 25.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2000 2001 2002 2003 2004 2005 2006 2007
Slide 19: Total Assets
Total Assets At Year-End in Millions of Dollars 567 630 735 873 924 945 965 927 0 100 200 300 400 500 600 700 800 900 1,000 2000 2001 2002 2003 2004 2005 2006 2007
Slide 20: Total Loans
Total Loans At Year-End in Millions of Dollars 361 362 372 415 441 493 524 548 0 50 100 150 200 250 300 350 400 450 500 550 600 2000 2001 2002 2003 2004 2005 2006 2007
Slide 21: Total Securities
Total Securities At Year-End in Millions of Dollars 169 220 310 388 406 368 353 290 0 50 100 150 200 250 300 350 400 450 500 2000 2001 2002 2003 2004 2005 2006 2007
Slide 22: Total Deposits
Total Deposits At Year-End in Millions of Dollars 453 509 583 639 647 679 670 671 0 100 200 300 400 500 600 700 2000 2001 2002 2003 2004 2005 2006 2007
Slide 23: Shareholders' Equity
Shareholders’ Equity At Year-End in Millions of Dollars 60.4 63.0 70.5 72.7 74.5 74.0 77.3 85.1 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2000 2001 2002 2003 2004 2005 2006 2007
Slide 24: Book Value Per Share
Book Value Per Share In Dollars 10.09 10.52 11.76 12.13 12.44 12.32 12.90 14.21 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 2000 2001 2002 2003 2004 2005 2006 2007
Slide 25: Adams County National Bank
a — ADAMS COUNTY NATIONAL BANK —E~ “=
Slide 26: Total Loans
Total Loans At Year-End in Millions of Dollars 361 362 372 415 441 493 524 548 0 50 100 150 200 250 300 350 400 450 500 550 600 2000 2001 2002 2003 2004 2005 2006 2007
Slide 27: Loan Volume by Segment
Loan Volume by Segment At Year-End in Millions of Dollars 0 50 100 150 200 250 300 2000 2001 2002 2003 2004 2005 2006 2007 Commercial Residential Mortgage Consumer/Other
Slide 28: Net Loan Losses/Total Loans
Net Loan Losses/Total Loans Industry Peer Group includes: All Commercial Banks with asset size of $300 million to $1 billion. Source: FDIC, Uniform Bank Performance Reports 0.06 0.07 0.03 0.26 0.24 0.23 0.17 0.13 0.11 0.18 0.00 0.00 0.00 0.08 0.00 0.10 0.20 0.30 0.40 0.50 2001 2002 2003 2004 2005 20
Slide 29: Adams County National Bank
a — ADAMS COUNTY NATIONAL BANK —E~ “=
Slide 30: 2008 Bank Strategic Direction: Assets
2008 Bank Strategic Direction Assets At Year-End in Millions of Dollars 917 931 911 441 493 524 406 368 290 949 548 353 0 100 200 300 400 500 600 700 800 900 1,000 2004 2005 2006 2007 Assets Loans Securities
Slide 31: 2008 Bank Strategic Direction: Deposits
2008 Bank Strategic Direction Deposits At Year-End in Millions of Dollars 679 670 671 647 0 100 200 300 400 500 600 700 800 900 1,000 2004 2005 2006 2007
Slide 32: Deposit Volume by Segment
Deposit Volume by Segment At Year-End in Millions of Dollars 296 172 244 61 36 53 184 77 0 50 100 150 200 250 300 350 400 2000 2001 2002 2003 2004 2005 2006 2007 Interest Bearing Transaction Accounts CDs Non-Interest Transaction Accounts IRAs/Other
Slide 33: 2008 Bank Strategic Direction: FHLB Borrowings
2008 Bank Strategic Direction FHLB Borrowings At Year-End in Millions of Dollars 163 155 180 125 0 20 40 60 80 100 120 140 160 180 200 2004 2005 2006 2007
Slide 34: 2008 Bank Strategic Direction: Loan to Deposit Ratio
2008 Bank Strategic Direction Loan to Deposit Ratio Percentage at Year-End 68.2% 72.6% 78.2% 81.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2004 2005 2006 2007
Slide 35: 2008 Bank Strategic Direction: Loan to Asset Ratio
2008 Bank Strategic Direction Loan to Asset Ratio Percentage at Year-End 48.1% 53.0% 60.2% 55.2% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2004 2005 2006 2007
Slide 36: 2008 Bank Strategic Direction Overview
2008 Bank Strategic Direction Overview • Asset growth driven by loan growth. • Funding of loan growth primarily via deposit growth and securities run-off.
Slide 37: Adams County National Bank
a — ADAMS COUNTY NATIONAL BANK —E~ “=
Slide 38: Trust Department Assets
Trust Department Assets At Year-End in Millions of Dollars 112 93 74 76 65 59 69 56 0 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 2006 2007
Slide 39: Trust Department Fee Income
Trust Department Fee Income In Thousands of Dollars 512 439 498 540 906 770 584 666 0 100 200 300 400 500 600 700 800 900 1,000 2000 2001 2002 2003 2004 2005 2006 2007
Slide 40: Russell Insurance Group, A Subsidiary of ACNB Corporation
} RUSSELL INSURANCE GROUP A Subsidiary of ACNB Corporation —E~ “=
Slide 41: Russell Insurance Group Net Income
Russell Insurance Group Net Income $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2005 2006 2007 Russell Insurance Group has proved to be a valuable addition to ACNB. It has provided an important source of revenue and net income. An independent analysi
Slide 42: Russell Insurance Group EBITDA
Russell Insurance Group EBITDA In Thousands of Dollars EBITDA, an operating profit measure commonly used to compare insurance agencies, has substantially exceeded the proforma projections made when ACNB contemplated purchasing Russell Insurance Group. Quoting from an independent analysis, “Russell’s
Slide 43: ACNB Corporation
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