Consumers Bancorp, Inc. · OTC:CBKM
Consumers Bancorp — Shareholder Meeting (October 2019)
50 slides from Consumers Bancorp's shareholder meeting presentation, Oct 17, 2019
Slide 1: 2019 Fiscal Year In Review
2019 Fiscal Year In Review 2019 Annual Shareholders Meeting • October 17, 2019
Slide 2: Laurie McClellan, Chairman of the Board of Directors
Laurie McClellan Chairman of the Board of Directors
Slide 3: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements include statements relating to the proposed acquisition of Peoples Bancorp and its integration with Consumers, the
Slide 4: Forward-Looking Information (continued)
Forward-Looking Information (continued) synergies and other financial and strategic benefits in connection with the proposed transaction within anticipated time frames or at all; the response of customers, suppliers and business partners to the announcement of the proposed transaction; risks related
Slide 5: Forward-Looking Information (continued)
Forward-Looking Information (continued) While the list of factors presented here is, and the list of factors in the registration statement on Form S-4, are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted facto
Slide 6: Renee Wood, Executive Vice President, Chief Financial Officer
Renee Wood Executive Vice President Chief Financial Officer
Slide 7: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS TOTAL ASSETS EXCEED $550 MILLION SIGNIFICANT INCREASE IN LOANS (15.9%) AND DEPOSITS (9.8%) PAST DUE AND NON-PERFORMING LOANS BELOW PEER EARNINGS PER SHARE OF $2.04 (55.7% INCREASE) 7
Slide 8: Net Income
NET INCOME FY 2019 $5,566 FY 2018 $3,581 FY 2017 $2,994 FY 2016 $2,147 $500 $1,500 $2,500 $3,500 $4,500 $5,500 Thousands
Slide 9: Earnings / Share
EARNINGS / SHARE $2.04 $1.31 $1.10 $0.79 2016 2017 2018 2019 Basic EPS
Slide 10: Return on Equity
RETURN ON EQUITY 13.03% 12.47% 10.43% 9.28% 9.59% 8.81% 7.50% 5.54% LTM 6/30/16 LTM 6/30/17 LTM 6/30/18 LTM 6/30/19 Consumers Peers* *Peers are public and private commercial banks located in Ohio with assets between $300 million and $750 million. Source: S&P Global Market Intelligence
Slide 11: Dividends / Share
DIVIDENDS / SHARE FY 2019 $0.52 FY 2018 $0.50 FY 2017 $0.48 FY 2016 $0.48 $0.40 $0.42 $0.44 $0.46 $0.48 $0.50 $0.52 $0.54
Slide 12: Deposit Service Charges & Interchange Income
DEPOSIT SERVICE CHARGES & INTERCHANGE INCOME $1,600 $1,454 $1,333 $1,400 $1,269 $1,245 $1,264 $1,161 $1,200 $1,200 $948 $1,000 $800 $600 $400 $200 2016 2017 2018 2019 Deposit Service Charges Debit Card Interchange Income
Slide 13: Other Non-Interest Income
OTHER NON-INTEREST INCOME $600 $561 $531 $500 $458 $458 $383 $377 $367 $400 $300 $258 $202 $209 $186 $200 $100 $33 $0 2016 2017 2018 2019 Gain on Sale of Mortgage Loans Other Gain on Sale of Securities
Slide 14: Net Interest Margin
NET INTEREST MARGIN 3.72% 3.55% 3.70% 3.55% 3.64% 3.54% 3.64% 3.63% LTM 6/30/16 LTM 6/30/17 LTM 6/30/18 LTM 6/30/19 Consumers Peers* *Peers are public and private commercial banks located in Ohio with assets between $300 million and $750 million. Source: S&P Global Market Intelligence
Slide 15: Total Deposits
TOTAL DEPOSITS 2019 $472.17 2018 $429.96 2017 $374.47 2016 $346.60 2015 $333.00 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Millions Compound Annual Growth Rate: 9.1%
Slide 16: Cost of Funds Trend
COST OF FUNDS TREND 0.90% 0.82% 0.80% 0.70% 0.54% 0.56% 0.60% 0.50% 0.48% 0.50% 0.40% 0.40% 0.34% 0.24% 0.30% 0.20% 0.10% 0.00% LTM Jun-16 LTM Jun-17 LTM Jun-18 LTM Jun-19 Consumers Peers* *Peers are public and private commercial banks located in Ohio with assets between $300 million and $750 millio
Slide 17: Deposit Portfolio Mix
DEPOSIT PORTFOLIO MIX 34.36% 23.76% Time SAV—MMDA DDA NOW 17.25% 24.62% As of June 30, 2019
Slide 18: Scott Dodds, Executive Vice President, Senior Loan Officer
Scott Dodds Executive Vice President Senior Loan Officer
Slide 19: Total Loans
TOTAL LOANS 2019 $369.18 2018 $318.51 2017 $272.87 2016 $256.30 2015 $228.50 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 Millions Compound annual growth rate: 12.7%
Slide 20: Nonperforming Assets / Total Assets
NONPERFORMING ASSETS/TOTAL ASSETS 1.60% 1.41% 1.40% 1.20% 1.00% 0.80% 0.54% 0.60% 0.49% 0.45% 0.43% 0.40% 0.28% 0.22% 0.14% 0.20% 0.00% LTM Jun-16 LTM Jun-17 LTM Jun-18 LTM Jun-19 Consumers Peers* *Peers are public and private commercial banks located in Ohio with assets between $300 million and $75
Slide 21: Net Charge-Offs / Average Loans
NET CHARGE-OFFS / AVERAGE LOANS 0.40% 0.40% 0.30% 0.21% 0.20% 0.15% 0.15% 0.13% 0.12% 0.10% 0.00% -0.01% LTM Jun-16 LTM Jun-17 LTM Jun-18 LTM Jun-19 -0.10% -0.20% -0.24% -0.30% Consumers Peers* *Peers are public and private commercial banks located in Ohio with assets between $300 million and $750 m
Slide 22: Loan Portfolio Mix
LOAN PORTFOLIO MIX Consumer Multi-family 1.4% 6.0% 39.4% 20.5% Commercial Commercial Real Estate Farm 1-4 Family Residential 12.4% 20.4% As of June 30, 2019
Slide 23: Commercial Loan Production
COMMERCIAL LOAN PRODUCTION 2019 $96.49 2018 $69.60 2017 $49.72 2016 $63.80 2015 $40.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 Million Compound annual growth rate: 24.63%
Slide 24: Commercial Real Estate Portfolio
COMMERCIAL REAL ESTATE PORTFOLIO 2019 $146.03 2018 $126.08 2017 $108.91 2016 $109.23 2015 $94.44 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00 $150.00 $160.00 Million Compound annual growth rate: 24.63%
Slide 25: Our 2019 Projects: Geographic Reach
OUR 2019 PROJECTS: GEOGRAPHIC REACH Alliance Jackson Township Barberton Louisville Brimfield Malvern Canfield Massillon Canton Medina Clinton North Canton East Canton North Olmsted East Liverpool Salem Green
Slide 26: Our 2019 Projects: Industry Diversification
OUR 2019 PROJECTS: INDUSTRY DIVERSIFICATION Medical Car Wash Dental Equestrian Residential Development Aviation Mixed Use Historical Renovation Industrial Expansion Agricultural Social Services Entertainment Entertainment Retail Development Religious Fellowship
Slide 27: 2019 Lending Projects
2019 Lending Projects
Slide 28: Slide 28
Slide 29: Slide 29
Slide 30: Slide 30
Slide 31: Complete Commercial Development & Construction
mplete Commercial Development & Construction RCIAL SPACE FOR LEASE 0,000 SF AVAILABLE NOW ILL 330° 659-2040 a = ages ST MIKE BENSON + 330-338-1112 »|
Slide 32: Slide 32
Slide 33: Slide 33
Slide 34: Slide 34
Slide 35: Slide 35
Slide 36: Project Financed, Consumers National Bank
Project Financed, Consumers National Sar ember www.ConsumersBank.com ¢ 330-823-8178
Slide 37: Residential Mortgage Production
RESIDENTIAL MORTGAGE PRODUCTION 2019 $45.96 2018 $32.05 2017 $29.29 2016 $17.90 2015 $15.90 2014 $11.60 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 Million Compound annual growth rate: 31.67%
Slide 38: Consumer Loan Production
CONSUMER LOAN PRODUCTION 2019 $13.76 2018 $10.38 2017 $10.00 2016 $9.50 2015 $4.01 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Million Compound annual growth rate: 36.10%
Slide 39: Ralph Lober, President, Chief Executive Officer
Ralph Lober President Chief Executive Officer
Slide 40: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS Record breaking earnings of $5.56 million 55.7% Increase in Earnings per Share Over $156 million in new money loan production; a 43% increase 16% increase in outstanding loan balances 9.8 % increase in deposit balances Total delinquency & nonaccrual loans of .21% ($786,000)
Slide 41: 2020 First Quarter
2020 FIRST QUARTER $1.50 Million Earning / $.55 per share 11.42 % Return on Equity 1.07% Return on Assets $15.3 million in deposit balances $14.6 million increase in loan balances Nonperforming Loans .12% ($445,000) 41
Slide 42: Expansion
EXPANSION
Slide 43: Two Great Institutions
_ Two GREAT INSTITUTIONS CONSUMERS National Bank + The Peoples 2 National Bank ~ of Mt. Pleasant
Slide 44: Combined Banking Locations
COMBINED BANKING LOCATIONS
Slide 45: Market Area
Ashland MARKET AREA Cuyahoga Medina Portage 0 Holmes Tuscarawas Harrison Belmont a Mahoning Lawrence Beaver tanevck Brooke Ohio
Slide 46: Technology
TECHNOLOGY
Slide 47: Relationships
RELATIONSHIPS
Slide 48: Community Banking Model
COMMUNITY BANKING MODEL Local Local Dividends Shareholders Local Local Employment & Management Economic & Directors Growth Local Lending Local Deposits & Investment
Slide 49: Building the Future
BUILDING THE FUTURE
Slide 50: Building the Future
BUILDING THE FUTURE ~SSee EVERY “ACCOMPLISHMENT STARTS WITH THE DECISION TO TRY. BIG THINKING HLEUENSS GREAT AWILTER DI ETERSON os QUOTESEVERLASTING COM
Consumers Bancorp — Shareholder Meeting (October 2019) on 6ix