Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2019)
42 slides from Juniata Valley Financial's shareholder meeting presentation, May 22, 2019
Slide 1: Juniata Valley Financial
Juniata Valley Financial coe eihibit 99.2
Slide 2: 2019 Annual Meeting
2019 Annual Meeting To | Juniata Valley Henxglal OUR
Slide 3: Shareholders' Business Meeting
Shareholders’ Business Meeting Timothy Havice Chairman
Slide 4: Forward Looking Statements
Forward Looking Statements The presentation may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995 . When words such as “believes”, “expects”, “anticipates” or similar expressions are used in this release, Juniata Valley is making forward - looki
Slide 5: CONNECTED
CONNECTED Marcie A. Barber President and Chief Executive Officer
Slide 6: Connection happens when people share meaningful information and ideas
“ Connection happens when people share meaningful information and ideas…” CONNECTION
Slide 7: Connecting with Community
Connecting with Community
Slide 8: At the fair and on the field
At the fair and on the field….
Slide 9: Festival 2019
Festival 2019
Slide 10: Slide 10
Slide 11: Slide 11
Slide 12: Slide 12
Slide 13: Potter County Facade Grant
iD ; " , es a Potter County Facade Grant
Slide 14: United Way – Danced to the Goal
United Way – Danced to the Goal
Slide 15: To Community More than donations
To Community More than 200 donations
Slide 16: Introducing JAVA with JVB
Introducing “JAVA with JVB" | |i Join our panel of banking experts every month for lay a relaxed, casual session in-person, on Facebook, : or on the phone! Stop in and receive a r FINANCIA ONS AND FREE Coffee Mug! STRAIGHTFORWARD ANSWERS when you attend “JAVA with JVB" PRS Ree fe
Slide 17: Communication: Quarterly Connection, Connecting with Associates
Communication Quarterly connection Connecting with Associates *469
Slide 18: Intranet Workspace redesign, Collaboration, WebConferencing
Intranet Workspace redesign Collaboration WebConferencing
Slide 19: Financial Performance
FINANCIAL PERFORMANCE JoAnn McMinn EVP and Chief Financial Officer
Slide 20: Supplemental non-GAAP financial information
The presentation that follows contains some supplemental financial information determined by methods other than in accordance with U . S . generally accepted accounting principles (GAAP) . Some tables that follow present reconciliations of certain non - GAAP measures to the most directly comparable
Slide 21: Asset Growth: Total Assets at Year End
$640,000 $620,000 $600,000 $580,000 $560,000 $540,000 $520,000 $500,000 $480,000 $460,000 $440,000 $420,000 $442,109 2009 $435,753 2010 $447,433 2011 TOTAL ASSETS AT YEAR END (In Thousands) $480,529 $u4g,969 $440,782 2012 2013 2014 Asset Growth $583,928 2015 $580,354 2016 $591985 2017 $525,286 2018
Slide 22: Long Term Strategic Focus
At Juniata Valley, our Strategic Plan calls for Growth and Profitability. We plan and execute for Long Term results. To assess performance and expectations, we must have an understanding of the short - term and long - term effects of our strategic decisions, as well as changes that occur outsi
Slide 23: Merger and Acquisition Activity
Merger and Acquisition Activity Strategic In 2015, Juniata Valley Financial Corp. acquired FNBPA, Inc. One - time merger costs related to that acquisition occurred in 2015 and 2016 at significantly different levels. Also related to the FNBPA merger, were certain gains from the subsequent sale
Slide 24: Defined Benefit Liability Reduction
Defined Benefit Liability Reduction Strategic In 2017, Juniata Valley Financial Corp. initiated a three - year strategy to reduce the liability associated with its defined benefit pension plan. The first step of the initiative took place in 2017 and consisted of the purchase of a single - premiu
Slide 25: Insurance Gains
Insurance Gains Possible but Unexpected Juniata carries life insurance on certain current and former executives and directors. The earnings and gains on the policies are intended to offset some of the cost of benefit programs for employees. Life insurance gains are infrequently received and at
Slide 26: Tax Cuts and Jobs Act
Tax Cuts and Jobs Act Unexpected In 2017, the Tax Cuts and Jobs Act was enacted, lowering Juniata’s and Liverpool’s future maximum corporate tax rate from 34% to 21%. For 2017, the tax rate reduction resulted in a write - down of Juniata’s and Liverpool’s net deferred tax assets, that were previ
Slide 27: Non-GAAP presentation of net income and performance ratios
Note concerning performance comparisons *In order to provide meaningful comparisons to prior years and to peer performance, in this presentation, earnings and non - interest income and expense ratios for 2016, 2017 and 2018 reflect the adjusted results indicated above. For further relevant Non - GAA
Slide 28: Five Year Earnings Growth
Charted earnings growth, including effect of Non - GAAP adjustments in each of the most recent four years 4,216 3,058 5,156 4,537 5,904 1,311 - 210 716 120 -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2014 2015 2016 2017 2018 Five Year Earnings Growth (in thousands) Adjustment for M&A, Defined
Slide 29: Income and Performance Ratios
Income and Performance Ratios 2016, as adjusted * 2017, as adjusted * 2018, as adjusted * Net Income 4,946,000$ * 5,253,000$ * 6,024,000$ * Return on Average Assets 0.84% * 0.88% * 0.98% * Return on Average Equity 8.08% * 8.77% * 9.61% * Net Interest Margin (fully tax equivalent) 3.57% 3.52% 3.60% L
Slide 30: Corporate Focus
Corporate Focus Financial Performance Credit Quality Capital Strength
Slide 31: Peer Group Comparisons
Peer Group Comparisons Important to assess our performance against other financial institutions of our relative size who are experiencing similar regulatory and compliance governance
Slide 32: Peer Groups Defined
Peer Groups Defined Local Peers Geographic peers of similar size or complexity Broad Group of Similar Sized Banking Organizations CCFN – CCFNB Bancorp, Inc. DIMC – Dimeco, Inc. EMCF – Emclaire Financial Corp. ENBP – ENB Financial Corp FKYS – First Keystone Corporation FMFP – First Community Financia
Slide 33: Performance Comparison: ROA and ROE
Performance Comparison Return on Average Assets Return on Average Equity 0.86% 0.81% 1.01% 0.80% 0.54% 0.83% 0.82% 0.63% 0.94% 2016 2017 2018 JUVF Local Peers PA Banking Group Reported at 0.96% Reported at 0.76% Source: SNL Financial, an offering of S&P Global Market Intelligence, with JUVF adjusted
Slide 34: Performance Comparison: Net Interest Margin, Loan Loss Provision
Performance Comparison Net Interest Margin (Fully Tax Equivalent) Loan Loss Provision (As a Percentage of Average Assets) 3.57% 3.52% 3.60% 3.46% 3.49% 3.55% 3.32% 3.39% 3.43% 2016 2017 2018 JUVF Local Peers PA Banking Group Source: SNL Financial, an offering of S&P Global Market Intelligence 0.08%
Slide 35: Performance Comparison: Non-Interest Income and Expense
Performance Comparison Non - Interest Income (As a Percentage of Average Assets, excludes security gains) Non - Interest Expense (As a Percentage of Average Assets) 0.82% 0.81% 0.85% 0.72% 0.71% 0.74% 0.85% 0.79% 0.78% 2016 2017 2018 JUVF Local Peers PA Banking Group Source: SNL Financial, an offeri
Slide 36: Credit Quality
Credit Quality Non - Performing Assets as % of Equity 9.66% 5.97% 4.33% 14.81% 12.35% 9.03% 11.11% 9.20% 8.47% 2016 2017 2018 JUVF Local Peers PA Banking Group Source: SNL Financial, an offering of S&P Global Market Intelligence Focus on Credit Quality and Reduction of Non - Performing Assets □ Defi
Slide 37: Capital Strength
Capital Strength Risk - Based Capital Ratio 15.34% 15.01% 15.86% 15.04% 14.20% 14.76% 16.32% 15.40% 15.64% 2016 2017 2018 JUVF Local Peers PA Banking Group Source: SNL Financial, an offering of S&P Global Market Intelligence Regulatory Measurement of Capital Adequacy □ Minimum regulatory requirement
Slide 38: Healthy Capital Supporting Dividend Level
Healthy Capital Supporting Dividend Level Tangible Common Equity to Asset Ratio Dividend Yield 9.29% 9.17% 9.39% 8.70% 8.68% 8.96% 9.64% 9.43% 9.49% 2016 2017 2018 JUVF Local Peers PA Banking Group Source: SNL Financial, an offering of S&P Global Market Intelligence 4.82% 4.40% 4.14% 3.65% 3.26% 3.9
Slide 39: First Quarter 2019 vs. First Quarter 2018
First Quarter 2019 vs. First Quarter 2018 Q1 2018 Q1 2019 Change Net Income $1,327,000 $1,413,000 6.48% Return on Average Assets 0.89% 0.90% 1.12% Return on Average Equity 9.15% 8.38% -8.42% Net Interest Margin (fully tax equivalent) 3.45% 3.65% 5.80% Loan Loss Provision as % of Average Assets 0.11%
Slide 40: CONNECTED
CONNECTED Marcie A. Barber President and Chief Executive Officer
Slide 41: Connecting with Shareholders
Connecting with Shareholders Sustainable Earnings Strong Capital Strong Liquidity Sound Credit Quality
Slide 42: Juniata Valley Financial
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