Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2020)
28 slides from Juniata Valley Financial's shareholder meeting presentation, May 19, 2020
Slide 1: Here to Help: Juniata Valley Financial Corp. 2020 Annual Meeting
HERE TO HELP JUNIATA VALLEY FINANCIAL CORP. 2020 ANNUAL MEETING MAY 19, 2020
Slide 2: Shareholders' Business Meeting
Shareholders’ Business Meeting Chairman, Timothy Havice
Slide 3: Agenda
Agenda • Call to Order • Rules of Conduct • Introduction of Members of the Board of Directors • Determine Presence of Quorum, Approval of Minutes, Appointment of Tellers • Nominations • Voting Tabulation • President Marcie Barber’s Address –“Here to Help” • CFO JoAnn McMinn – Financial Presentation
Slide 4: Board of Directors
Board of Directors • Chairman, Timothy I. Havice • Vice Chairman, Philip E. Gingerich, Jr. • Bradley J. Wagner • Marcie A. Barber • Martin L. Dreibelbis • Gary E. Kelsey • Michael A. Buffington • Dr. Richard M. Scanlon
Slide 5: Agenda
Agenda Call to Order ✓ Rules of Conduct ✓ Introduction of Members of the Board of Directors • Determine Presence of Quorum, Approval of Minutes, Appointment of Tellers • Nominations • Voting Tabulation • President Marcie Barber’s Address –“Here to Help” • CFO JoAnn McMinn – Financial Presentation •
Slide 6: Forward Looking Statements
Forward Looking Statements This 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 presentation, Juniata is making forward-looking s
Slide 7: President's Address – Here to Help
PRESIDENT’S ADDRESS– HERE TO HELP President and CEO, Marcie A. Barber
Slide 8: 2019 Financial Performance
2019 FINANCIAL PERFORMANCE EVP and CFO, JoAnn McMinn
Slide 9: Presentation Information
Presentation 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 d
Slide 10: 2019 Highlights
2019 Highlights • Strategic and Operational Accomplishments • Completed final phase of defined benefit plan termination • Maintained non-performing assets at 0.3% of total assets - lowest ten- year level. • Funded loan loss reserve with net recoveries of previous charge-offs. • 7.2% Asset Growth • 1
Slide 11: Core Earnings Year-Over-Year Comparison
Core(1) Earnings Year-Over-Year Comparison Non-GAAP presentation of Core(1) net income and performance ratios for comparative periods 2019 2018 % Change Net income, as reported (GAAP) 5,835,000 $ 5,904,000 $ (1.2)% Merger and acquisition costs, including owned portion of Liverpool's costs - 884,000
Slide 12: Year-over-Year Comparative Core Metrics
Year-over-Year Comparative Core(1) Metrics Income and Performance Ratios Net Income 6,800,000 $ * 6,024,000 $ * 12.9% Return on Average Assets 1.05% * 0.98% * 7.1% Return on Average Equity 9.61% * 9.61% * 0.0% Net Interest Margin (fully tax equivalent) 3.57% 3.60% -0.8% Loan Loss Provision as % of A
Slide 13: 2019 Strategic and Operational Accomplishments
2019 Strategic and Operational Accomplishments
Slide 14: Total Assets at Year End
‘TOTAL ASSETS AT YEAR END (le Thovtons) — = =) _— V Juniata 232014
Slide 15: Defined Benefit Plan Termination
Defined Benefit Plan Termination Completion of three-year strategy to reduce the liability and volatility associated with a legacy Defined Benefit Plan
Slide 16: Credit Quality
Credit Quality 0.74% 1.03% 0.57% 0.45% 0.33% 0.11% 0.06% 0.06% 0.06% (0.12%) 2015 2016 2017 2018 2019 -0.20% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Non-Performing Assets as % of Total Assets Net Charge-Offs (Recoveries) as % of Total Loans • Non-Performing Assets as percent of Total Assets improv
Slide 17: First Quarter 2020 Results
First Quarter 2020 Results Q1 2020 Key Influencers • Economic downturn due to coronavirus reflected in: • Provision for Loan Losses • unrealized losses in equity securities • Margin compression due to: • significant reduction in fed fund target and prime rate • prolonged flattened yield curve. First
Slide 18: Looking Ahead for 2020
Looking Ahead for 2020 Refer to Forward-Looking Statement Disclaimer
Slide 19: The Double Whammy: Flat and Low
The Double Whammy Flat and Low COVID 19 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 1 mo 2 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr US Treasury Yield Curve 5/13/2019 12/31/2019 5/13/2020
Slide 20: Restructured Balance Sheet
Restructured Balance Sheet With a goal to decrease sensitivity to interest rate movements, in April, we executed a three-pronged strategy to lower the cost of funds and improve balance sheet efficiency. • We prepaid what had become high-cost borrowings with the recent reductions in rates and used ga
Slide 21: The Double Whammy: Flat and Low
The Double Whammy Flat and Low 0.00% 1.00% 2.00% 3.00% 1 mo 2 mo 3 mo 6 mo 1 yr2 yr3 yr5 yr7 yr 10 yr 20 yr 30 yr US Treasury Yield Curve 5/13/2019 12/31/2019 5/13/2020 COVID 19
Slide 22: Paycheck Protection Program
Paycheck Protection Program
Slide 23: Paycheck Protection Program Loans (PPP)
Paycheck Protection Program Loans (PPP) • Loan rate 1.00% • Fee income from SBA anticipated at $1 million to supplement low interest rate • Anticipate most will qualify for forgiveness • Quickly and Efficiently • Serving the small business community • Smallest loan - $300 • Largest loan - $2,305,500
Slide 24: Additional Opportunities
Additional Opportunities.. • Enhanced Digital Marketing • Expanded Meeting Platforms • Customer Preferences •Operating Efficiencies
Slide 25: Stock Price Stability
Stock Price Stability COVID-19 pandemic has had negative effect on bank stocks in general. Over most recent three months, the KBW Nasdaq Bank Index fell by 37.35% In comparison, JUVF price fell by only 13.84% JUVF Stock Price Change Over Recent 3-Month Period vs. KBW Nasdaq Bank Index
Slide 26: Questions / Comments
Questions / Comments Note that this presentation has been recorded and will be available for one year on our Investor Website Additionally, this presentation has been filed with the SEC on a Form 8-K
Slide 27: Vote Tabulation Report
Vote Tabulation Report Lisa Snyder
Slide 28: Meeting Adjournment
Meeting Adjournment JUNIATA VALLEY FINANCIAL CORP. 2020 ANNUAL MEETING MAY 19, 2020
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