INVESTOR PRESENTATION Exhibit 99.2 |
Forward Looking Statement Disclosure Certain statements contained herein are “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward- looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward- looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ from those contemplated by such forward-looking statements include, but are not limited to, the following: failure to obtain shareholder or regulatory approval for the merger of EN Bancorp with ESSA Bancorp or to satisfy other conditions to the merger on the proposed terms and within the proposed timeframe; delays in closing the Merger; reaction to the Merger by EN Bancorp’s customers and employees; the diversion of management’s time on issues relating to the Merger; the inability to realize expected cost savings and synergies from the Merger of EN Bancorp with ESSA Bancorp in the amounts or in the timeframe anticipated; changes in the estimate of non-recurring charges; costs or difficulties relating to integration matters might be greater than expected; material adverse changes in ESSA Bancorp’s or EN Bancorp’s operations or earnings; the inability to retain EN Bancorp’s customers and employees; or a decline in the economy, mainly in Pennsylvania, as well as the risk factors set forth in ESSA Bancorp’s Annual Report on Form 10-K for the year ended September 30, 2014. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date made. We do not undertake and specifically decline any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 2 |
Transaction Rationale Business and Operational Considerations • Provides an entrance into a nearby market in the Philadelphia metropolitan area with a larger business and population base and good growth trends • Eagle Bank has successfully improved credit quality since 2011 such that NPAs/Assets have diminished to less than 2% New credit administration and employment of seasoned commercial lenders will ensure future credit quality • Strong platform into commercial real estate and commercial lending: Personnel, processes and systems New commercial lending team gaining traction The acquired commercial lending platform will have an enhanced ability to manage larger commercial accounts SBA Preferred Lender Physicians National Bank division has been re-launched to service the health care professional market 3 |
Transaction Rationale Financial Considerations • Immediately accretive to earnings (excluding transaction expenses) Projected earnings per share accretion is 19% when cost saves are fully realized Cost savings are expected to be achieved within one year following the closing of the transaction • Results in limited tangible book value dilution per share of approximately 3.8% • Pro forma tangible capital-to-tangible assets ratio is 8.9% • Relatively short tangible book value dilution earn-back period of approximately three years on estimated incremental earnings: Enhances both return on assets and return on equity Earnings enhanced by cost savings estimated to approximate $2.4 million on a pre-tax fully phased-in basis or 36% of annual operating expenses 4 |
Eagle National Bank Loan and Deposit Composition Source: Call reports filed with the FDIC as of June 30, 2015. • Commercial mortgage and non-mortgage loans comprise 69.0% of total loans • Checking accounts are 29.1% of total deposits 5 |
Entry Into Attractive Southeastern Pennsylvania Markets • Entrance into attractive southeastern Pennsylvania markets with a branch presence in Chester, Delaware and Montgomery Counties Presence in suburban Philadelphia provides access to a vibrant business lending market Philadelphia is the sixth largest metropolitan area in the U.S. with an attractive consumer banking environment Provides access to larger growing markets whose residents possess high income levels Population Per Capita Income Source: SNL Financial, LC. 6 Actual Est. Projected 2010 2015 2020 2010-2015 2015-2020 (%) (%) Population (000) Pennsylvania 12,702 12,795 12,896 0.1% 0.2% ESSA Bancorp's Current Markets Lackawanna, PA 214 213 213 -0.1% 0.0% Lehigh, PA 349 357 362 0.4% 0.3% Luzerne, PA 321 319 318 -0.1% -0.1% Monroe, PA 170 165 162 -0.5% -0.4% Northampton, PA 298 301 304 0.2% 0.2% Eagle National Bancorp Markets Chester, PA 499 514 527 0.6% 0.5% Delaware, PA 559 564 570 0.2% 0.2% Montgomery, PA 800 818 833 0.4% 0.4% Year Growth Rate Est. Projected 2015 2020 2015-2020 (%) Per Capita Income ($) Pennsylvania $29,729 $32,477 1.8% ESSA Bancorp's Current Markets Lackawanna, PA 26,420 29,100 2.0% Lehigh, PA 27,503 28,519 0.7% Luzerne, PA 26,189 29,155 2.2% Monroe, PA 26,193 28,028 1.4% Northampton, PA 29,414 30,817 0.9% Eagle National Bancorp Markets Chester, PA 42,012 43,454 0.7% Delaware, PA 33,502 34,999 0.9% Montgomery, PA 42,744 46,360 1.6% Growth Rate Year |
Pro Forma Branch Map Eagle Branches ESSA Branches 7 |