DNB FINANCIAL CORP /PA/ - FORM 8-K - EX-99.1 - EXHBIT 99.1

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8-K - DNB FINANCIAL CORPORATION FORM 8-K - DNB FINANCIAL CORP /PA/	dnb8k.htm

DNB Financial Corporation

Investor Overview Presentation

Summer 2014

Forward-looking statements:
Certain statements contained in this presentation are forward-looking in nature. These include all

statements about DNB's plans, objectives, expectations and other statements that are not historical

facts, and usually use words such as "expect," "anticipate," "believe" and similar expressions. Such

statements represent management's current beliefs, based upon information available at the time

the statements are made, with regard to the matters addressed. All forward-looking statements

are subject to risks and uncertainties that could cause DNB's actual results or financial condition to

differ materially from those expressed in or implied by such statements. Factors of particular

importance to DNB include, but are not limited to: (1) changes in general, national or regional economic

conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in

deposit levels; (5) changes in levels of income and expense in non-interest income and expense related
activities; (6) residential mortgage and secondary market activity; (7) changes in accounting and

regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets

generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues;

and (10) changes in regulation resulting from or relating to financial reform legislation. DNB does not

undertake any obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

Non-GAAP Financial Measures:
This presentation includes non-GAAP financial measures. Information about any such non-GAAP

financial measures, including a reconciliation of those measures to GAAP, can be found in the

presentation and/or in our SEC reports available on our website at http://investors.dnbfirst.com/.

FORWARD-LOOKING STATEMENTS & ADDITIONAL

INFORMATION

I. Corporate Overview/Compelling Investment Opportunity (Pages 4-7)

II. Strong Market Drives Opportunity (Pages 8-19)

III. Consistent Performance, Stable Growth & Financial Trends (Pages 20-31)

IV. Experienced Management and Board Leadership (Pages 32-38)

V. Invest in DNBF (Pages 39-42)

TABLE OF CONTENTS

CORPORATE OVERVIEW

Founded: 1860, The oldest National Bank in the greater
Philadelphia Region

Headquarters: Downingtown, Chester County, Pennsylvania

NASDAQ Ticker: DNBF

Total Assets: $685 million

Deposits: $576 million

Total Equity: $62 million

Branch Offices: 13

Share Price: $21.25 ($22.00 as of August 25, 2014)

Market Cap: $59 million

Shares Outstanding: 2.8 million

Snapshot June 30, 2014

COMPELLING INVESTMENT OPPORTUNITY

Snapshot June 30, 2014

• High quality footprint, serving growing, diversified and affluent markets in
Chester and Delaware Counties, Pennsylvania

• Book value per share has grown from $16.18 in 2Q 2013 to $17.62 in 2Q
2014

• High level of low cost core deposits: Cost of Deposits - .25% YTD or .23% QTD
and Composite Cost of Funds - .40% YTD or .38% QTD

• Increasing momentum in non-Interest income has grown and now generates
$1 million per quarter with about 29% coming from wealth management

• Strong liquidity combined with the ability to shift earning assets from
investments to loans will contribute to higher margins over time

• Superior asset quality - NPL/Gross Loans of 1.18%

COMPELLING INVESTMENT OPPORTUNITY

• Well capitalized, highly liquid, with clean, conservative balance sheet

• Well positioned to grow to $1 billion-plus in assets

• Strong Market Demographics

• Favorable loan and low cost deposit trends

• Proven management team generating results since 2007

• Historic quarterly cash dividend

• Focus on Relationship Banking

KEY INITIATIVES & MILESTONES

Strong Market Drives Opportunity

ESTABLISHED PRESENCE IN ATTRACTIVE

SOUTHEASTERN PENNSYLVANIA MARKET

MARKET OVERVIEW AND DEMOGRAPHICS

Largest Market: Chester County, PA

• Fast Growing: Population (est.) 509,468 in 2013, representing an increase of
10,582 from the 2010 Census (2014 data not available)

•   Most Affluent County in PA: Median Household Income is $86,184,
      significantly above U.S. average of $51,371, and the county ranks 14th
     nationally in disposable income (highest income county in the state)

• Diverse Economy: the largest industry is manufacturing which represents
23.1% of the workforce, retail trade is the major employer making up 13.8%

        of the employment and the North East portion of the county is a booming
        corridor of high tech pharmaceutical companies (Chester County Chamber of
        Commerce)

Growing Banking Presence: Delaware County, PA

• Population (est.) 561,098 in 2013, representing an increase of 2,994 from the
2010 Census (2014 data not available)

• Median Household Income is $64,242, above U.S. average of $51,371

• Fifth most populous county in the state of PA, conducive for expanded
banking services growth

• In excess of 7,200 businesses (over $500,000 in sales)

MARKET OVERVIEW AND DEMOGRAPHICS

• Continue to attract low cost core deposits

• Grow fee revenue as a percentage of total revenues by investing in new
business lines, building full client relationships and maximizing significant
untapped cross-sell potential

• Build relationship banking in retail and commercial while providing a
consistent DNB First customer experience

• Maximize the potential of technology, social media and mobile delivery

• Capture additional business with wealth management, insurance and
Mortgage Banking

• Explore accretive Bank & non-Bank acquisition opportunities in Delaware
and Chester counties, as well as in contiguous markets

STRATEGY TO SERVE OUR MARKETS
AND GROW

HIGH LEVEL OF LOW

COST CORE DEPOSITS

Core Deposits includes: Demand Deposit, NOW , MMDA & Savings
(excludes CD’s)

DETAILED LOAN PORTFOLIO COMPOSITION

Loan Type	$ Balance	Percent
Commercial RE OO	87,740	19.99%
Commercial RE NOO	90,025	20.51%
Residential 1-4	67,265	15.32%
Commercial & Industrial	55,987	12.75%
Residential 5+	33,213	7.57%
SBA/USDA Guaranteed	32,281	7.35%
Construction	24,051	5.48%
Home Equity LOC	25,614	5.83%
Municipal/Govt/Non-Profit	6,539	1.49%
Home Equity	7,184	1.64%
Consumer	7,257	1.65%
Farmland	1,864	0.42%
Total	439,022	100.00%

Snapshot June 30, 2014

LOAN PORTFOLIO

DNB’s Financial Strength, Consistent

Performance, Stable Growth and Financial
Trends

EXECUTIVE SUMMARY

EARNINGS & PER SHARE DATA

$2,054

EARNINGS & PER SHARE DATA

EXECUTIVE SUMMARY

Performance Ratios	2013 Q2	2013 Q3	2013 Q4	2014 Q1	2014 Q2
Return on average assets	0.76%	0.20%	0.70%	0.62%	0.67%
Return on average equity	8.60%	2.28%	7.86%	6.78%	7.35%
Return on average tangible equity	8.65%	2.29%	7.89%	6.81%	7.38%
Net interest margin	3.35%	3.21%	3.31%	3.36%	3.36%
Efficiency ratio	66.98%	70.84%	70.15%	73.63%	71.97%

PERFORMANCE RATIOS

EXECUTIVE SUMMARY

Asset Quality Ratios	2013 Q2	2013 Q3	2013 Q4	2014 Q1	2014 Q2
Net Charge-offs to average loans	0.20%	1.02%	0.01%	0.06%	0.03%
Non-performing loans/Total loans	2.60%	1.40%	1.38%	1.26%	1.18%
Allowance for credit loss/Total loans	1.72%	1.08%	1.11%	1.10%	1.11%
Allowance for credit loss/Non- performing loans	65.94%	77.04%	80.73%	87.59%	94.62%

ASSET QUALITY RATIOS

EXECUTIVE SUMMARY

Capital Ratios	2013 Q2	2013 Q3	2013 Q4	2014 Q1	2014 Q2
Total equity/Total assets	8.60%	8.89%	8.86%	8.83%	9.00%
Tangible equity/Tangible assets	8.58%	8.87%	8.84%	8.78%	8.95%
Tangible common equity/Tangible assets	6.63%	6.87%	6.87%	6.88%	7.06%
Tier 1 leverage ratio	10.42%	10.39%	10.61%	10.72%	10.76%
Tier 1 risk-based capital ratio	15.22%	15.18%	15.35%	15.00%	14.88%
Total risk-based capital ratio	16.47%	16.16%	16.40%	16.04%	15.92%