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 (Pages 4-9)

II. Strong Market Drives Opportunity (Pages 10-21)

III. Consistent Performance, Stable Growth & Financial Trends (Pages 22-38)

IV. The Differentiators: Operationally Unique (Pages 39-42)

V. Experienced Management and Board Leadership (Pages 43-47)

VI. Invest in DNBF (Pages 48-49)

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: $668 million

Deposits: $562 million

Total Equity: $57 million

Branch Offices: 13

Share Price: $17.94 (7/31/13)

Market Cap: $49 million (7/31/13)

Shares Outstanding: 2.7 million (7/31/13)

Snapshot June 30, 2013

COMPELLING INVESTMENT OPPORTUNITY

Snapshot June 30, 2013

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

• Attractive valuation with room to grow

o Price to LTM’s Earnings: 9.57X - Peers @ 12.2X

o Price to TBV: 111% - Peers @ 124%

• Book value per share has grown from $15.05 in 2Q 2012 to $16.18 in 2Q 2013

• High level of low cost core deposits - Cost of Deposits - .33%

• Increasing momentum in non-Interest income which 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 will contribute to higher margins over time, given recent market

volatility

• Nimble, opportunistic balance sheet management philosophy

COMPELLING INVESTMENT OPPORTUNITY

• Serving growing, diversified and affluent markets in Chester and Delaware Counties,
Pennsylvania

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

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

• Low-cost core deposits funds lending and protect margins

• Non-Interest income has grown, with significant contributions from a carefully constructed
investment portfolio and enhanced wealth management services

• Proven established management team generating results since 2007

• Historic quarterly cash dividend

• Value opportunity with stock trading below peers

• Focus on Relationship Banking

HISTORICAL STOCK PRICE AND PRICE TO

EARNINGS RATIOS COMPARED TO PEERS

$1.82

HISTORICAL STOCK PRICE AND PRICE
TO TANG. BOOK RATIOS COMPARED TO PEERS

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

• Purchased Boothwyn, PA branch in June 2012

• One of the 19 banks nationwide to be named to KBW Honor Roll for 3 successive years

• Increased dividend in first quarter 2013

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 ($000)	Total Population 2012 (Actual)	Population Change 2011- 2012 (%)	Projected Population Change 2012- 2017 (%)	Median HH Income 2012 ($)	Projected HH Income Change 2012- 2017 (%)
Chester	191	10,777,700	506,575	0.74%	5.33%	86,265	13.27%
Delaware	173	11,532,500	561,098	0.12%	0.82%	83,677	24.60%

County	# of Branches	2012 Total Deposits in Market ($000)	Notes
Chester	10	478,900
Delaware	3	48,800	Media-limited service LPO Boothwyn-purchased June 2012

Ø Tremendous growth opportunities in our market.

MARKET OVERVIEW AND DEMOGRAPHICS

Largest Market: Chester County, PA

•Fast Growing: Population 506,575 in 2012, representing an increase of 73,074 from the 2000
Census

•Best Educated in PA: Of the population 25 years or older, 93% are high school graduates,
48% have a bachelor’s degree or higher and 19% have a graduate or professional degree
(U.S. Census Bureau)

•Most Affluent County in PA: Median Household Income is $86,265, significantly above U.S.
average of $51,413 (highest income county in the state)

•Unemployment rate at 6.5%, below the PA state average of 7.8% and the national average of
7.8% (U.S. Bureau of Labor Statistics)

•Diverse Economy: Top three industries by size; 34% services, 15% manufacturing and 11%
retail (Chester County Economic Development Council)

•In excess of 7,100 businesses (over $500,000 in sales)

•Median age of 38 is ideal for expansion of banking services to the X and Y generations

Growing Banking Presence: Delaware County, PA

•Population 561,098 in 2012, representing an increase of 8,805 from the 2000 Census

•Of the population 25 years or older, 92% are high school graduates, 35% have a bachelor’s
degree or higher, and 15% have a graduate or professional degree (U.S. Census Bureau)

•Median Household Income is $63,677, above U.S. average of $51,413

•Unemployment rate at 8.1%, above the PA state average of 7.8% and above the national
average of 7.8% (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 39 is ideal for expansion of banking services to the X and Y generations

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 ancillary services

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

• 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

DNB VS COMPETITORS

DEPOSIT MARKET SHARE

By deposits, DNBF is the #1
community bank in Chester
County, PA

Chester County, PA
2012 Rank	2011 Rank	Institution (ST)	Type	2012 Number of Branches	2012 Total Deposits in Market ($M)	2012 Total Market Share (%)	2011 Total Deposits in Market ($M)	2011 Total Market Share (%)
1	1	Wells Fargo & Co. (CA)	Bank	17	1,495.5	13.88	1,418.7	13.30
2	3	Toronto-Dominion Bank	Bank	10	1,042.4	9.67	907.0	8.50
3	2	PNC Financial Services Group (PA)	Bank	11	987.3	9.16	993.1	9.31
4	5	RBS- Citizens Bank	Bank	18	953.0	8.84	846.5	7.94
5	6	National Penn Bancshares (PA)	Bank	18	774.9	7.19	793.7	7.44
6	4	Susquehanna Bancshares (PA)	Bank	14	759.5	7.05	880.2	8.25
7	7	DNB Financial Corp. (PA)	Bank	11	511.9	4.75	519.0	4.87
8	8	Malvern Federal Bncp (MHC) (PA)	Bank	8	503.8	4.67	516.5	4.84
9	9	First Niagara Finl Group (NY)	Bank	11	427.9	3.97	417.9	3.92
10					353.9	3.28	318.0	2.98
					10,777.7		10,664.0

BALANCED DEPOSIT MIX:

FIVE QUARTERS OF CORE DEPOSIT GROWTH

	Jun-12	Sep-12	Dec-12	Mar-13	Jun-13

Non Interest DDA	16.78%	16.39%	16.04%	16.06%	16.23%
MMDA/Savings/NOW	63.38%	62.96%	64.68%	65.48%	67.11%
CDs (less brokered)	19.85%	20.65%	19.29%	18.46%	16.66%

HIGH LEVEL OF LOW

COST CORE DEPOSITS

DETAILED LOAN PORTFOLIO COMPOSITION

Loan Type	$ Balance	Percent
Commercial RE OO	84,798	21.76%
Commercial RE NOO	78,172	20.05%
Residential 1-4	59,747	15.33%
Commercial & Industrial	50,428	12.94%
Residential 5+	25,489	6.54%
SBA/USDA Guaranteed	29,911	7.67%
Construction	17,023	4.37%
Home Equity LOC	18,931	4.86%
Municipal/Govt/Non-Profit	7,757	1.99%
Home Equity	8,155	2.09%
Consumer	8,232	2.11%
Farmland	1,143	0.29%
Leases	4	0.0%
Total	389,790	100.00%

Snapshot June 30, 2013

BALANCED LOAN PORTFOLIO

	Jun-12	Sep-12	Dec-12	Mar-13	Jun-13
Construction	4.85%	4.58%	3.85%	3.89%	4.37%
Residential RE	29.58%	29.60%	29.02%	28.62%	28.82%
Commercial RE	48.93%	47.92%	48.76%	50.03%	49.48%
C&I	11.25%	12.50%	13.04%	12.94%	12.94%
Consumer	2.27%	2.25%	2.20%	2.12%	2.11%
Miscellaneous	3.12%	3.15%	3.13%	2.40%	2.28%

Residential RE loans include 1-4, 5+, Home Equity and Home Equity LOC
Commercial RE loans include OO, NOO and SBA/USDA Guaranteed

LOAN PORTFOLIO

DNB’s Financial Strength, Consistent

Performance, Stable Growth and Financial Trends

EXECUTIVE SUMMARY

EARNINGS & PER SHARE DATA

EXECUTIVE SUMMARY

Performance Ratios	2012 Q2	2012 Q3	2012 Q4	2013 Q1	2013 Q2
Return on average assets	0.91%	0.89%	0.83%	0.74%	0.76%
Return on average equity	10.51%	10.23%	9.26%	8.32%	8.60%
Return on average tangible equity	10.54%	10.29%	9.31%	8.36%	8.65%
Net interest margin	3.78%	3.80%	3.55%	3.32%	3.35%
Efficiency ratio	62.98%	62.41%	66.64%	69.43%	66.98%

PERFORMANCE RATIOS

EXECUTIVE SUMMARY

Asset Quality Ratios	2012 Q2	2012 Q3	2012 Q4	2013 Q1	2013 Q2
Net Charge-offs to average loans	0.40%	0.03%	-0.10%	-0.11%	0.82%
Non-performing loans/Total loans	2.21%	2.45%	2.63%	4.05%	2.60%
Allowance for credit loss/Total loans	1.53%	1.63%	1.72%	1.77%	1.72%
Allowance for credit loss/Non-performing loans	69.02%	66.53%	65.54%	43.76%	65.94%

ASSET QUALITY RATIOS

EXECUTIVE SUMMARY

Capital Ratios	2012 Q2	2012 Q3	2012 Q4	2013 Q1	2012 Q2
Total equity/Total assets	8.47%	8.89%	8.87%	8.98%	8.60%
Tangible equity/Tangible assets	8.43%	8.85%	8.83%	8.94%	8.58%
Tangible common equity/Tangible assets	6.38%	6.78%	6.80%	6.92%	6.63%
Tier 1 leverage ratio	10.22%	10.31%	10.50%	10.48%	10.42%
Tier 1 risk-based capital ratio	14.27%	14.42%	14.63%	14.74%	15.22%
Total risk-based capital ratio	15.52%	15.67%	15.88%	15.99%	16.47%

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
41 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
34 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
35 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
39 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

35 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, Help the Children Advisory Board Member, former Advisory Board Member
of Bishop Shanahan High School and Family Services of Chester County's Retired Senior Volunteer Program.

EXPERIENCED MANAGEMENT TEAM

James F. Gagliano- Director of Retail Services and Cash Management

Mr. Gagliano has 20 years of retail banking and financial services experience. James joined DNB First in 2013 and is directly
    responsible for DNB First's retail branches & cash management. Prior experience: District Managing Executive of The Huntington Bank,
    Akron/Canton, Ohio region from January 2013 to June 2013; District Executive and Senior Vice President of Sovereign/Santander Bank,
    Reading / Lancaster, Pennsylvania from 2010 to 2012; District Manager, Financial Sales Leader, Senior Producing Leader - Vice
    President and Senior Financial Specialist of Wachovia/Wells Fargo (Lancaster - Reading, PA, Deal, NJ & Miami Beach, Florida from
    1999 to 2010); Financial Advisor of Morgan Stanley (Miami Beach, Florida from 1997 to 1999). Mr. Gagliano has served on the board of
    the IM Able Foundation and numerous committees including; Berks County Habitat for Humanity (Fundraising Committee), Leadership
    Berks (Marketing Committee) and The Wachovia Foundation (charitable allocations committee - Central Pennsylvania).

Richard C. Weber - Managing Director of Wealth Management

40 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

23 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

32 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.

Invest in DNB Financial

LAST 12 MONTHS-DNBF STOCK PERFORMANCE

Security or Index	Return-Last 12 Months
DNBF*	35.91%
NASDAQ Bank Index*	32.71%
KBW Bank Index*	40.55%

Closing price on June 29, 2012: $13.50

Closing price on June 28, 2013: $17.71

*Source: Bloomberg

INVESTOR RELATIONS CONTACT

Gerald F. Sopp

484.359.3138

gsopp@dnbfirst.com

http://investors.dnbfirst.com/

For more information, Investors may contact:

THANK YOU