ENB Financial Corp 2014 Annual Shareholders Meeting May 6, 2014
» 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 Agenda
» Aaron L. Groff, Jr. • President, CEO and Board Chairman – ENB Financial Corp and Ephrata National Bank » Paul W. Wenger • Vice President and Corporate Secretary – ENB Financial Corp • Senior Vice President and Cashier – Ephrata National Bank » Scott E. Lied • Treasurer – ENB Financial Corp • Senior Vice President and Chief Financial Officer – Ephrata National Bank Presenters
Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp Meeting Certification
» Elect three (3) Class C directors to serve a three - year term Matters of Proxy Election of Directors – Class C Susan Y. Nicholas Mark C. Wagner Paul W. Wenger
Current Directors Continuing Directors – Class A Aaron L. Groff, Jr. Brian K. Reed Paul M. Zimmerman, Jr. Continuing Directors – Class B Willis R. Lefever Donald Z. Musser Judith A. Weaver
Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp Voting Process
Voting Process Proxy Holders » Janice S. Eaby » John H. Shuey Judges of Election » Richard H. Binner » Roger S. Kline » William M. Rohrbach
Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp President’s Remarks
» To remain an independent community bank of undisputed integrity, serving the communities of Northern 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 dedicated professional team. Mission Statement
Investing in Tomorrow
Growing Branches – Leola
Growing Branches - Myerstown
Growing Technology
Growing Loans
Branding
Investing in Tomorrow
Presented by: Scott E. Lied Treasurer - ENB Financial Corp Financial Condition
» 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 used in this presentation would be considered as a forward looking statement. Management is not obligated to update these forward looking statements. Disclosures
Net Income 4,300 6,345 7,148 7,642 7,710 0 2,000 4,000 6,000 8,000 2009 2010 2011 2012 2013 Dollars in Thousands
Core Earnings Items Dollars In Thousands 2013 $ 2012 $ Increase/(Decrease) $ Net Interest Income 21,524 21,854 (330) Other Income * 6,180 6,337 (157) Operating Expense 21,935 21,169 766 *Net of Security Gains
Security Gains 175 972 1,500 940 3,217 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2009 2010 2011 2012 2013 Dollars in Thousands
Provision (Credit) for Loan Losses 2,920 1,800 1,575 (975) (225) -1,500 -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2009 2010 2011 2012 2013 Dollars in Thousands
Performance Ratios 2013 % 2012 % Return on Average Assets 0.96 0.98 Return on Average Equity 8.92 8.87 Average Equity Ratio 10.78 11.11 Net Interest Margin 3.17 3.35 Efficiency Ratio 73.36 69.53
Per Share Data 2013 2012 Earnings Per Share $2.70 $2.68 Dividends Per Share $1.04 $1.00 Dividend Payout Ratio 38.52% 37.31%
Peer Analysis – Performance* Measurement ENBP** % PA Bank Peer % Return of Average Assets (LTM) 0.96 0.75 Return on Average Equity (LTM) 9.03 7.36 Price to Earnings (LTM) 11.08 16.77 Price to Tangible Book 1.02 1.23 Dividend Yield (LTM) 3.49 2.61 *As of December 31, 2013 **Data from McAdams Wright Ragen’s Q4 2013 Community Bank Report
Peer Analysis – Performance* Measurement ENBP** % PA Bank Peer % Loans/Deposits 65.62 78.35 Non - Interest Deposits/Total Deposits 26.39 13.76 Equity to Assets 10.31 10.23 Non - Performing Assets/Total Assets 0.17 1.47 Allowance for Loan Losses/Net Loans 1.67 1.50 *As of December 31, 2013 **Data from McAdams Wright Ragen’s Q4 2013 Community Bank Report
Loan Growth • Total Loans up $23.9 million (5.8%) • Total Ag Loans up $27.9 million (27.7%) • Real Estate Ag Loans up $29.0 million (34%)
Breakdown of Ag Loans by County County 12/31/13 $* % of Total Lancaster 66,804 51.0 Lebanon 31,042 23.7 Berks 25,731 19.6 Other Counties 7,502 5.7 Total 131,079 100.0 *Dollars in Thousands. Based on Ag sector NAICS codes
First Quarter Results Q1 2014 » Earnings: $ 1.85 million, 8.5% decrease » 0.92% ROA » Net Interest Margin: 3.23% vs. 3.22% Q4 13 » Security Gains: $663,000 vs. $918,000 (Q1 2013) » Credit Provision: $ 200,000 vs. $50,000 (Q1 2013)
2014 Financial Challenges » Highly Competitive Lending Environment » Increasing Asset Yield » Further Margin Improvement » Increased Regulatory Burden
2014 Financial Opportunities » Market Opportunities » Agriculture Lending Strength » Expanded Mortgage Program » Increasing Margin
Questions & Answers
Presented by: Paul W. Wenger Corporate Secretary - ENB Financial Corp Voting Results
We Care • C ourteous • A ccurate • R esponsive • E mpowered Presented by: Aaron L. Groff, Jr. President & CEO - ENB Financial Corp
Adjournment Thank you!
