Acnb Corporation · NASDAQ:ACNB
Acnb — Shareholder Meeting (May 2012)
49 slides from Acnb's shareholder meeting presentation, May 3, 2012
Slide 1: Annual Meeting of Shareholders May 1, 2012
Annual Meeting of Shareholders May 1, 2012
Slide 2: Special Cautionary Notice Regarding Forward-Looking Statements
Special Cautionary Notice Regarding 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 involv
Slide 3: Bank Failures
Bank Failures Source: FDIC Banking Profile
Slide 4: Unprofitable Insured Institutions
Unprofitable Insured Institutions Source: FDIC Banking Profile
Slide 5: Year-End Comparisons December 31, 2011
Year-End Comparisons December 31, 2011 Sources: ACNB 10-K, FDIC Banking Profile ACNB FDIC Insured Corporation Institutions ROA 0.85% 0.88% ROE 8.80% 7.86% Yield on Loans 5.17% 5.84% Yield on Securities 3.56% 2.87% Cost of Interest Bearing Deposits 0.67% 1.03% Net Interest Margin 3.74% 3.60% Total Ov
Slide 6: FDIC State Profile - Pennsylvania Economic Indicators
FDIC State Profile - Pennsylvania Economic Indicators 2010 2011 Unemployment Rate 8.4% 8.0% Home Price Index -1.8% -1.8% Non-Business Bankruptcy Filings 2.98% 2.54% per 1,000 people
Slide 7: Community Bank Dividend Trends
Community Bank Dividend Trends Annualized, per Share Sources: Annual Reports to Shareholders 2008 2012 ACNB, Gettysburg $0.76 $0.76 Codorus Valley/Peoples Bank, York $0.56 $0.36 Orrstown, Shippensburg $0.87 --- F & M Trust, Chambersburg $1.08 $0.68 First National Bank of Mercersburg $1.27 --- Mid Pe
Slide 8: David W. Cathell, EVP, Treasurer & Chief Financial Officer
David W. Cathell EVP, Treasurer & Chief Financial Officer
Slide 9: 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: well capitalized, adequately capitalized, undercapi
Slide 10: Regulation of Bank
Regulation of Bank The Pennsylvania Department of Banking, which has primary supervisory authority over banks chartered in Pennsylvania, regularly examines banks in such areas as reserves, loans, investments, management practices, and other aspects of operations. The FDIC is the primary federal regu
Slide 11: Report of Independent Auditors on Financial Statements
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, 2011 and 2010, and the results of their operations and their cash flows for each of the years in the three-year period ended
Slide 12: Report of Independent Auditors on Internal Controls
ParenteBeard LLC 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, 2011, based on criteria established in Internal Control – Integrated Framework iss
Slide 13: ACNB Corporation Balance Sheet Trends
ACNB Corporation Balance Sheet Trends At Year-End in Millions of Dollars
Slide 14: Net Interest Income
Net Interest Income At Year-End in Millions of Dollars
Slide 15: Stockholders' Equity
Stockholders’ Equity At Year-End in Millions of Dollars
Slide 16: Book Value Per Share
Book Value Per Share At Year-End in Dollars
Slide 17: James P. Helt, EVP/Banking Services
James P. Helt EVP/Banking Services
Slide 18: Total Loans
Total Loans At Year-End in Millions of Dollars
Slide 19: Loan Volume by Segment
Loan Volume by Segment At Year-End in Millions of Dollars
Slide 20: Allowance for Loan Losses
Allowance for Loan Losses At Year-End as Percentage of Total Loans Industry Peer Group includes: All Commercial Banks with asset size of $300 million to $1 billion/FDIC Uniform Bank Performance Report
Slide 21: Non-Performing Loans
Non-Performing Loans At Year-End as Percentage of Total Loans Industry Peer Group includes: All Commercial Banks with asset size of $300 million to $1 billion/FDIC Uniform Bank Performance Report
Slide 22: Other Real Estate Owned
Other Real Estate Owned At Period-End in Thousands of Dollars
Slide 23: Net Loan Losses to Total Loans
Net Loan Losses to Total Loans Industry Peer Group includes: All Commercial Banks with asset size of $300 million to $1 billion/FDIC Uniform Bank Performance Report At Year-End as Percentage of Total Loans
Slide 24: Total Deposits
Total Deposits At Year-End in Millions of Dollars
Slide 25: Deposit Volume by Segment
Deposit Volume by Segment At Year-End in Millions of Dollars
Slide 26: Spring Grove Office
Spring Grove Office
Slide 27: Lynda L. Glass, EVP, Secretary & Chief Governance Officer
Lynda L. Glass EVP, Secretary & Chief Governance Officer
Slide 28: Enterprise Risk Management (ERM)
Enterprise Risk Management (ERM) “A process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide
Slide 29: Framework for ERM
Framework for ERM A process, ongoing and flowing through an entity. Effected by people at every level of an organization. Applied in strategy setting. Applied across the enterprise. Designed to identify potential events affecting the entity and to manage risk within its risk appetite. Able to provid
Slide 30: Fundamental Reasons for ERM
Fundamental Reasons for ERM To reduce unacceptable performance variability. To align and integrate varying views of risk management. To build the confidence of the investment community and stakeholders. To enhance corporate governance. To successfully respond to a changing business environment. To a
Slide 31: Infrastructure for ERM Program
Infrastructure for ERM Program Active Board and Senior Management Oversight Adequate Policies, Procedures and Limits Adequate Risk Measurement, Monitoring and Management Information Systems Comprehensive Internal Controls
Slide 32: Bank Risk Management
Bank Risk Management Taking and managing risks are fundamental to the business of banking. Generally, risk is the potential that events---planned or unanticipated---may have an adverse impact on bank capital and earnings. A bank director’s major responsibility regarding risk is to provide a manageme
Slide 33: Categories of Risk Identification
Categories of Risk Identification Credit Risk Interest Rate and Market Risk Liquidity Risk Transaction and Operational Risk Legal and Compliance Risk Strategic Risk Reputation Risk
Slide 34: Credit Risk
Credit Risk Risk to earnings and capital arising from an obligor’s failure to meet the terms of any contract with the Bank, or otherwise fail to perform as agreed. Any time Bank funds are extended, committed, invested, or otherwise exposed through contractual agreements with performance dependent up
Slide 35: Interest Rate and Market Risk
Interest Rate and Market Risk Risk to the Bank’s condition resulting from adverse movements in market rates or prices, such as interest rates, foreign exchange rates, and equity prices. Focuses on economic scenarios relative to current values versus the sensitivity of those values to changes in inte
Slide 36: Liquidity Risk
Liquidity Risk Risk to earnings or capital that arises from the Bank’s inability (or perceived inability) to meet its obligations when they come due without incurring unacceptable losses. Focuses on the inability to manage unplanned changes in or obtain funding sources, as well as to liquidate asset
Slide 37: Transaction and Operational Risk
Transaction and Operational Risk Risk that emanates from the potential that inadequate information systems, operational problems, breaches in internal controls, fraud, or unforeseen catastrophes will disrupt operations or otherwise result in unexpected losses. Function of the adequacy of internal co
Slide 38: Legal and Compliance Risk
Legal and Compliance Risk Risk that emanates from the potential for operational disruption or other negative effects from unenforceable contracts, lawsuits, adverse judgments, or noncompliance with laws and regulations. Under the umbrella of legal risk, compliance risk specifically arises from viola
Slide 39: Strategic Risk
Strategic Risk Risk that results from adverse business decisions or the improper implementation of those decisions. Function of the compatibility of strategic goals, business strategies to achieve those goals, resources deployed, and quality of implementation.
Slide 40: Reputation Risk
Reputation Risk Risk related to the potential for negative publicity, whether true or not, from the Bank’s business practices such as to cause a decline in the customer base, costly litigation, or revenue reductions. Risk exposure driven primarily by the Bank’s actions to manage other risk factors s
Slide 41: Key ERM Principles
Key ERM Principles Is an evolving and ongoing management process. Involves risk identification, assessment, measurement, control and monitoring. Is not intended to eliminate risk, but to mitigate risk. Provides a business model for evaluating opportunities and challenges and for achieving strategic
Slide 42: www.acnb.com Investor Relations
www.acnb.com Investor Relations
Slide 43: Karen B. Arthur, FVP & Senior Trust Officer
Karen B. Arthur FVP & Senior Trust Officer
Slide 44: Trust Department Assets
Trust Department Assets At Year-End in Millions of Dollars
Slide 45: Trust Department Fee Income
Trust Department Fee Income At Year-End in Thousands of Dollars
Slide 46: Frank C. Russell, Jr., President & CEO
Frank C. Russell, Jr. President & CEO
Slide 47: Russell Insurance Group EPS
Russell Insurance Group EPS Earnings Per Share at Year-End
Slide 48: Russell Insurance Group Net Income
Russell Insurance Group Net Income GAAP Basis at Period-End
Slide 49: [LOGO]
[LOGO]