ex99-1.htm

Investor Overview Presentation

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://investor.dnbfirst.com/.

FORWARD-LOOKING STATEMENTS & ADDITIONAL

INFORMATION

I. Corporate Overview

II. Strong Market Drives Opportunity

III. Consistent Performance, Stable Growth & Financial Trends

IV. The Differentiators: Operationally Unique

V. Experienced Management and Board Leadership

VI. Invest in DNBF

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: $634 million

Deposits: $527 million

Total Equity: $54 million

Branch Offices: 13

Share Price: $13.75 (7/26/12)

Market Cap: $37,239,605 (7/26/12)

Shares Outstanding: 2,708,335 (7/26/12)

Snapshot June 30, 2012

COMPELLING INVESTMENT OPPORTUNITY

Snapshot June 30, 2012

• High quality footprint in affluent Chester and Delaware Counties, Pennsylvania

• Attractive valuation

o Price to LTM’s Earnings: 7.5X

o Price to TBV: 92%

• Book value per share has grown from $13.80 in 2Q 2011 to $15.05 in 2Q 2012

• Strong ROA of .91% and ROE of 10.5% in 2Q 2012

• High level of low cost core deposits

• Non-Interest income has grown and now generates $1 million per quarter with about 25%
coming from wealth management

• Strong culture of expense control and quality underwriting

• High levels of liquidity

• Nimble, opportunistic balance sheet management philosophy

• Successful balance sheet restructure in early 2010 - ahead of the curve

• Purchased Boothwyn, PA branch in June 2012

• Named to KBW honor roll in 2 successive years

• Increased dividend in First quarter 2012

KEY INITIATIVES & MILESTONES

o Significantly reduced funding costs

o Repositioned assets for growth

o Margin expansion

Strong Market Drives Opportunity

ESTABLISHED PRESENCE IN ATTRACTIVE
SOUTHEASTERN PENNSYLVANIA MARKET

BANKING MARKET OVERVIEW

County	# of Branches	Total Deposits in Market ($000)	Total Population 2011 (Actual)	Population Change 2010- 2011 (%)	Projected Population Change 2011- 2016 (%)	Median HH Income 2011 ($)	Projected HH Income Change 2011- 2016 (%)
Chester	191	10,477,194	502,856	0.80%	5.33%	81,161	13.27%
Delaware	185	11,556,594	560,408	0.26%	0.82%	60,442	24.60%

County	# of Branches	2011 Total Deposits in Market ($000)	Notes
Chester	10	519,023
Delaware	3	18,935	Media-limited service LPO Boothwyn-purchased June 2012 (not included)

Ø Tremendous growth opportunities in our market.

Market Overview and Demographics

Largest Market: Chester County, PA

• Fast Growing: Population 502,856 in 2011, representing an increase of 69,355 from the 2000 Census

• Best Educated in PA: Of the population 25 years or older, 93% are high school graduates, 50% have
a bachelor’s degree or higher, and 19% have a graduate or professional degree. (2010 ACS)

• Most affluent county in PA: Median Household Income is $81,161, significantly above U.S. average
of $54,442 (highest income county in the state)

• Unemployment rate at 6.5%, below the PA state average of 8.0% and the national average of 8.3%
(U.S. Bureau of Labor Statistics)

• Diverse Economy: Top three industries by size; 37% services, 17% manufacturing and 16% retail.
(Chester County Economic Development Council)

• In excess of 7,100 businesses (over $500,00 in sales)

• Median age of 37 is ideal for expansion of banking services to the X and Y generations

Growing Banking Presence: Delaware County, PA

• Population 560,408 in 2011, representing an increase of greater than 8,115 from the 2000 Census

• Of the population 25 years or older, 90.50% are high school graduates, 20.2% have a bachelor’s
degree or higher, and 14.5% have a graduate or professional degree (U.S Census Bureau)

• Median Household Income is $60,442, above U.S. average of $54,442

• Unemployment rate at 8.3%, above the PA state average of 8.0% and equal to the national average
of 8.3% (U.S. Bureau of Labor Statistics)

• 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)

• Median age of 37 is ideal for expansion of banking services to the X and Y generations

Market Overview and Demographics

• Continue to attract core deposits

• Build relationship banking in retail and commercial

• Capture additional business with wealth management, insurance and
ancillary services

• Capture lending opportunities with underserved small- and mid-sized
business market

• Explore accretive acquisition opportunities in Delaware and Chester counties,
as well as in contiguous markets

STRATEGY TO SERVE OUR MARKETS AND

GROW

BALANCED DEPOSIT MIX:

FIVE QUARTERS OF CORE DEPOSIT GROWTH

Data supplied by Bank Trends

	Jun-11	Sep-11	Dec-11	Mar-12	Jun-12
Non Interest DDA	12.50%	12.26%	13.79%	15.88%	16.66%
MMDA/Savings/NOW	62.98%	64.83%	65.09%	64.04%	63.63%
CDs (less brokered)	24.52%	22.86%	21.13%	20.07%	19.71%

HIGH LEVEL OF LOW

COST CORE DEPOSITS

DETAILED LOAN PORTFOLIO COMPOSITION

Loan Type	$ Balance	Percent
Commercial RE OO	86,333	21.20%
Commercial RE NOO	83,628	20.54%
Residential 1-4	59,096	14.51%
Commercial & Industrial	45,820	11.25%
Residential 5+	35,083	8.62%
SBA/USDA Guaranteed	29,285	7.19%
Construction	19,757	4.85%
Home Equity LOC	16,184	3.97%
Municipal/Govt/Non-Profit	11,394	2.80%
Home Equity	10,081	2.48%
Consumer	9,237	2.27%
Farmland	1,206	0.30%
Leases	101	0.02%
Total	407,205	100.00%

Snapshot June 30, 2012

LOAN PORTFOLIO GROWTH

Stable growth that will accelerate as the economy recovers

DNB’s Financial Strength, Consistent

Performance, Stable Growth and Financial Trends

EXECUTIVE SUMMARY

EARNINGS & PER SHARE DATA

EXECUTIVE SUMMARY

Performance Ratios	2011 Q2	2011 Q3	2011 Q4	2012 Q1	2012 Q2
Return on average assets	0.84%	0.82%	0.85%	0.73%	0.91%
Return on average equity	10.78%	10.15%	10.08%	8.47%	10.51%
Return on average tangible equity	10.83%	10.19%	10.11%	8.49%	10.54%
Net interest margin	3.65%	3.70%	3.74%	3.75%	3.78%
Efficiency ratio	63.25%	63.22%	66.68%	66.95%	62.98%

PERFORMANCE RATIOS

EXECUTIVE SUMMARY

Asset Quality Ratios	2011 Q2	2011 Q3	2011 Q4	2012 Q1	2012 Q2
Net Charge-offs to average loans	0.28%	0.48%	0.40%	0.44%	0.40%
Non-performing loans/Total loans	1.65%	1.95%	1.89%	1.79%	2.21%
Allowance for credit loss/Total loans	1.54%	1.55%	1.53%	1.50%	1.53%
Allowance for credit loss/Non-performing loans	93.52%	79.32%	80.66%	83.80%	69.02%

ASSET QUALITY RATIOS

EXECUTIVE SUMMARY

Capital Ratios	2011 Q2	2011 Q3	2011 Q4	2012 Q1	2012 Q2
Total equity/Total assets	7.73%	8.30%	8.41%	8.39%	8.47%
Tangible equity/Tangible assets	7.70%	8.27%	8.38%	8.37%	8.43%
Tangible common equity/Tangible assets	5.87%	6.14%	6.25%	6.29%	6.38%
Tier 1 leverage ratio	9.42%	9.65%	10.14%	10.32%	10.24%
Tier 1 risk-based capital ratio	13.51%	14.03%	14.32%	13.92%	13.78%
Total risk-based capital ratio	14.77%	15.29%	15.57%	15.17%	15.03%

CAPITAL RATIOS

The Differentiators: Operationally Unique

ENTERPRISE RISK MANAGEMENT

• Led by William Hieb, President & Chief Risk and Credit Officer

• Integration across financial, operational, strategic and compliance

• Committee-driven decision-making process

• Management

• Board of Directors

• Internal Control Redundancies

• Accountability

ENTERPRISE RISK MANAGEMENT

• Corporate goal of building and maintaining a fortress balance sheet

• Strong Asset Quality

• Strong levels of liquidity with contingency planning

• Superior ALCO process

PROACTIVE INVESTMENT

PORTFOLIO MANAGEMENT

• Three tiered/segmented investment portfolio

o Liquidity

o Intermediate

o Income

• Manage liquidity and cash flows better

• Maneuverability - Asset mix shifts

• Opportunistic

• Facilitates strong earnings

• Consistent with ERM

Experienced Management and Board Leadership

EXPERIENCED MANAGEMENT TEAM

William S. Latoff - Chairman & Chief Executive Officer
40 years experience in finance, public accounting, real estate and automotive industries. Director since 1998,
Chairman of the Board since 2003 and CEO since 2004. Chairman of the Executive and Board Loan
Committees. Currently serves as Director and past Chairman of the Chester Country Industrial Development
Authority, Vice Chair of the Chester County Library Trust Board, Member of the Nominating Committee for the
Federal Reserve Bank of Philadelphia, Member of the American Bankers Association's Public Affairs
Committee, Member of the Pennsylvania Business Council Roundtable and The Chester County Chamber of
Business and Industry. Previously served on the Board of Directors of Keystone Financial and on the Board of
Elmwood Federal Savings Bank, Chairman Emeritus of the Chester County Historical Society, former Board
Member of the Chester County Economic Development Council, Past Chairman of the Pennsylvania Bankers
Public Affairs Committee and a former member of the Government Relations Policy Committee. Prior
experience: Significant Real Estate Development experience, Bliss & Company, Ltd., Certified Public
Accountants, Chairman and President of Brandywine Automotive Group, Inc.

William J. Hieb - President and Chief Risk & Credit Officer
33 years of experience in commercial banking with a concentration in middle market lending, construction and
CRE as well as specialized lending and capital markets. Director of the Corporation since 2005 and a Director
of the Bank since 2004. Chairman of the Trust Committee and a member of the Board Loan Committee. Board
Member of the Chester County Economic Development Council since 2008, the Chester County Chamber of
Business and Industry Foundation since 2007, the Downingtown Area School District Education Foundation
since 2009 and the Chester County Historical Society since 2010. Served as Treasurer, Board Member and a
member of the Executive Committee of the Housing Partnership of Chester County from 2005 to 2012. Board
Member of BLOCS (Building Leadership Organized for Catholic Schools). Board Member of PA Banker's
Association since 2010. Prior experience: First Union National Bank and predecessor banks from 1978 to
2002. Served as a Senior Vice President of First Union National Bank and Managing Director of the First Union
Securities in Philadelphia. Holds Series 7, 24 and 63 Securities Licenses

Gerald F. Sopp - Executive Vice President, Chief Financial Officer & Corporate Secretary
34 years of experience in financial services, manufacturing and retail. Joined DNB in 2007 and is directly
responsible for financial reporting and accounting, asset/liability management, strategic planning, human
resources and facilities. Prior experience: Vice President and Controller of Wilmington Trust Corporation,
Wilmington, Delaware from 2000 to 2006, Vice President and Controller of The Clarks Companies, N.A.,
Newton Upper Falls, Massachusetts from 1993 to 2000, Assistant Controller of Silo, Inc., Philadelphia,
Pennsylvania from 1991 to 1992, and Vice President of Corporate Accounting and Reporting for Chase
Manhattan Bank (USA), Wilmington, Delaware from 1983 to 1991. Presently serves on the Board of Directors of
Habitat for Humanity of Chester County and served as Treasurer and Board Member of the Financial
Executives International, Delaware Chapter.

EXPERIENCED MANAGEMENT TEAM

Albert J. Melfi, Jr. - Executive Vice President & Chief Lending Officer
38 years experience in the commercial banking industry with a concentration in middle market and CRE lending.
Joined DNB in 2006 and is directly responsible for all commercial and personal lending. Prior experience:
Regional Vice President of Commerce Bank, PA, N.A. , Vice President of Continental/MidAtlantic, N.A. and Vice
President of First Pennsylvania Bank. Currently serves as a Board Member and past Chairman of the Chester
County Chamber of Business and Industry, Board Member and Vice Chairman of the Delaware County Industrial
Development Authority, Chairman of the Delaware County Industrial Development Corporation's Loan Review
Committee, Board Member of the Community Action Agency of Delaware County, Board Member of the Chester
County Bar Association Foundation Board, Board Member of Delaware County Hero Bowl, Board Member of
Chester County Workforce & Development, Active member of SEEDCO's Loan Committee and Pennsylvania
Banker's Association. Past Affiliations include: Chairman of the Delaware County Chamber of Commerce,
Chairman of the American Heart Association, Member of Neumann College President’s Advisory Committee and
President of Delco Lodge Sons of Italy. Mr. Melfi has served on the Boards of the following organizations: Society
for the Performing Arts of Media Theater, Barrier Awareness, Delaware County Community College Education
Foundation, Archbishop Prendergast High School , Penn Delco School District’s Superintendent’ Advisory Board,
Community Transit of Delaware County, United Way of Delaware County, American Red Cross, Delaware County
Education Foundation, Southwest Delco Municipal Authority, Delaware County Historical Society, Neumann
College Business Advisory Board, March of Dimes, Brandywine Convention and Visitors Bureau. Mr. Melfi has
also served as a volunteer EMT and fireman for the Yeadon and Norwood Fire Companies and with Big Brothers
of America.

Bruce E. Moroney - Executive Vice President & Chief Accounting Officer

34 years of experience in banking with a concentration in accounting, finance and treasury management. Joined DNB
in 1992 and is directly responsible for SEC and regulatory reporting and budgeting. Prior experience: Executive
Vice President and Chief Financial Officer of Brandywine Savings Bank from 1978 to 1992. Board member and
former President of Downingtown Good Neighbor Day, Inc., Trustee for Kerr Park Foundation, former advisory
board member of Bishop Shanahan High School and Family Services of Chester County's Retired Senior
Volunteer Program.

EXPERIENCED MANAGEMENT TEAM

Christopher M. Breslin- Director of Retail Services

20 years in commercial banking industry with a focus on the retail delivery system. Joined DNB in 2011 and is directly
responsible for DNB's retail branches. Prior experience: Market President of Tower Bank's 1N Bank Division, Director
of Retail Banking and Executive Vice President of FirstTrust Bank, Chief Retail Banking Officer and Senior Vice
President of First Financial Bank, Financial Specialist Leader of First Union Nation Bank, Regional Vice President of
CoreStates Bank, Market Manager of Meridian Bank and Second Vice President of Personal Financial Services of
Chase Manhattan. Currently serves as a Board Member & Investment Committee member of CCRES, Member of the
Philadelphia, Main Line and Lehigh County Chambers of Commerce and member of the Anat Bird Super Community
Retail Bank Forums. Past Board Member and Treasurer of the Housing Partnership of Chester County, past Board
Member of the United Way of Chester County and La Cumunidad Hispana.

Richard C. Weber - Managing Director of Wealth Management

39 years in commercial banking industry with a focus on corporate banking, regional management, marketing and
wealth management. Joined DNB in 2010 and is directly responsible for DNB's Wealth Management Group. Prior
experience: Senior Vice President and Managing Director of Fifth Third Bank's Investment Advisors Division, Senior
Vice President and Managing Director of Comerica Bank's Investment Management and Trust Division, Executive Vice
President and Managing Director of National City Bank's Private Client Group, Senior Vice President and Director of
Private Banking Consulting for Cannon Financial Institute and Executive Vice President of Meridian Bank's Personal
Trust Division & Private Banking Group. Mr. Weber currently assists Church Farm School with their fund raising efforts
and has served on the Boards of the Allentown Chamber of Commerce, Easter Seal Society of Berks County,
Pennsylvania Stage Company in Allentown and Great Lakes Theater Company. Mr. Weber has served as Chairman
of the United Way Campaign for the State of Delaware, Vice Chairman of the Board of St. Joseph's Hospital in
Reading, Pennsylvania, Chairman of the Montgomery County Workforce Investment Board, Chairman of the Rotary
Council of Berks County and President of the Town Hall of Cleveland. He has also served as a Member of the
Investment Committee for the United Way of Southeast Michigan and as a Trustee for the United Way of Berks
County, Pennsylvania and Wilmington, Delaware as well as for Think TV (public television).

EXPERIENCED MANAGEMENT TEAM

Frank S. Monterosso - Senior Vice President of Operations

22 years of experience in operations management with a concentration in electronic commerce, payment solutions and
banking. Joined DNB in 2008 and is directly responsible for IT and deposit operations. Prior experience: Senior
Director of Financial Operations of First Data Corporation, Vice President of Operations of Progress Bank, Assistant
Vice President of Operations of First Pennsylvania Bank and Manager of Deposit Operations for Chase Manhattan
Bank.

Catherine H. Hall - Senior Vice President, Marketing Director

31 years of experience in financial services with a concentration in marketing. Joined DNB in 2009 and is directly
responsible for marketing, product development and website management. Prior Experience: Vice President and
Marketing Manager of First National Bank of Chester County, Vice President and Marketing Director of Republic First
Bank, Vice President and Manager of Commercial & Business Banking Marketing (Mid-Atlantic Region) of Citizens
Bank and Assistant Vice President of Marketing of Mellon Bank.