Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2010)
42 slides from Juniata Valley Financial's shareholder meeting presentation, May 20, 2010
Slide 1: Better Bank, Better Service, Better Results
Better Bank, Better Service, Better Results
Slide 2: Chairman's Address
Chairman's Address Martin L. Dreibelbis Martin L. Dreibelbis
Slide 3: The Better Bank Past to Present
Francis J. Evanitsky Juniata Valley Bank chartered in1867 Business has expanded into 5 counties 12 Banking Offices Employing over 150 people Serving over 30,000 customers and clients Consistently among top performers locally, regionally and nationally - overall performance. The Better Bank Past to P
Slide 4: Profits and Soundness
Profits and Soundness Juniata Valley Bank Ranking in top 10% in overall performance of all 186 Banks in Pennsylvania in 2009 Source: Financial Management Consulting Group, Kentucky Capital Strength Risk-based capital ratios more than double regulatory minimums and significantly exceed minimums requi
Slide 5: Heritage of Community Banks
Heritage of Community Banks Juniata Valley Bank, est. 1867 1962 - First National Bank of Millerstown, est. 1867 1965 - Farmers National Bank of McAlisterville, est. 1965 - Port Royal National Bank 1967 - Tuscarora State Bank of Blairs Mills 1998 - Lewistown Trust Co., est. 1906 2000 - Construction o
Slide 6: Learning from the Past, Performing in the Present, Planning for the Future
Directors and Officers preceding us built the Business through: Conservative policies Fair practices Keen business sense We strive to achieve continuity Learning from the Past Performing in the Present Planning for the Future
Slide 7: Ron Witherite
Ron Witherite Ron Witherite Valued Member of the Board of Directors of Juniata Valley Financial Corp. since November of 1991 Served as Secretary of the Corporation and the Bank since 1994 Retired January 2010
Slide 8: Nothing Stays the Same
Nothing Stays the Same Nothing Stays the Same Banking is constantly evolving - More rapidly with each passing year Changes in Economy Technology Global access to Information Regulations Customers' needs
Slide 9: Goals
Goals We must meet the challenges of change Find new ways to improve the business in the process And always.... To be a BETTER BANK
Slide 10: Management Succession
Management Succession CEO's Retirement as of July 2, 2010 Appointment of New CEO Marcie A. Barber
Slide 11: Better Service
Marcie A. Barber Better Service Customer service is the provision of service to customers before, during and after a purchase. According to Jamier L. Scott. "Customer service is a series of activities designed to enhance the level of customer satisfaction - that is, the feeling that a product or ser
Slide 12: Strategic Plan
Strategic Plan Strategic Plan
Slide 13: Service Strategy
Service Strategy Online Statements Expedited payments Expanded ATM Network Path Valley Core Processing System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade System Upgrade
Slide 14: Bankway
Bankway Extensive Training and Planning Putting advanced technology into the hands of our front line and back room personnel to effectively and efficiently provide better service. Teamwork Development through the process Bankway is a fully integrated, single database, core banking system that integr
Slide 15: Training Here, There and Everywhere
Training Here, There and Everywhere.... Everywhere.... Everywhere.... Everywhere....
Slide 16: And More Training
And More Training... Training... Training... What I really like from the compliance side is the AUTHENTI-CATION! It is all built into the system - all the information is right there to authenticate a customer!
Slide 17: Wednesday, June
Wednesday, June 16
Slide 18: Team Strategy - Team Training
Team Strategy -Team Training 50 hours credit training PBA Banking School PBA Seminars On-Line Training Bankway Bankway Bankway Bankway Bankway Bankway Bankway Bankway Bankway Bankway
Slide 19: Team Strategy - Teamwork
Team Strategy - Teamwork Diverse Strengths Common Goals Effective Synergies Mutual Respect In a Commodity Business, People make the difference.
Slide 20: Growth Strategy
•Trust and Investment Management •Trust and Business Banking •Investment Management and Retail •Investment Management and Business Banking •Merger or Acquisition when the Opportunity is right Asset Growth and Expansion Line of Business Integration Brand & Marketing to Customers, Community, and Share
Slide 21: Performance Strategy
Well Capitalized Manage the Margin Continued focus on Non-interest Income Core Processing Efficiencies CFO - JoAnn McMinn Financial Performance Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Operating Expense Efficiency Performance Strategy
Slide 22: Better Results
JoAnn McMinn Better Results Better Results Better Results
Slide 23: 2009 was a tough year for financial institutions
2009 was a tough year for financial institutions. Profitability Uncertainty Low interest rates (unprecedented in our lifetime) Unemployment Heightened scrutiny and regulations Banks suffered. Many continue to suffer. Although earnings have were reduced, Juniata Valley Financial Corp. has maintained
Slide 24: Key Factors Affecting 2009 Results
Key Factors Affecting 2009 Results Significant Events, outside our control - adverse impact on earnings. While materially affecting level of earnings, events did not affect the soundness of our operations. FDIC Insurance premiums (Special: $194k; Regular increase: $381k) Stock Market Fair Value decl
Slide 25: Juniata Valley Financial Corp. 2009 vs 2008 Key Ratios
Juniata Valley Financial Corp. 2009 2008 Change ROAA 1.17% 1.34% (17) bp ROAE 10.31% 11.76% (145) bp Yield on Earning Assets 5.88% 6.48% (60) bp Cost of Funding 1.84% 2.33% (49) bp Net Interest Margin (tax equivalent) 4.23% 4.34% (11) bp Non-interest income /AA (excluding securities gains and impair
Slide 26: Juniata Valley Financial Corp. Income Summary 2006-2009
Juniata Valley Financial Corp. 2009 2008 2007 2006 Net interest income $15,989,000 $16,173,000 $15,663,000 $14,552,000 Loan loss provision (627,000) (421,000) (120,000) (54,000) Non-interest income (recurring) 4,057,000 4,056,000 4,218,000 3,649,000 Non-recurring non-interest income 323,000 179,000
Slide 27: Comparison to Local Peers
Comparison to Local Peers Financial Performance
Slide 28: Local Peer Group
Local Peer Group Corporation Assets at 12/31/09 (in millions) Principal Bank Mid Penn Bancorp $606 Mid Penn Bank Kish Bancorp $528 Kish Bank First Community Financial Corporation $356 FNB Mifflintown Mifflinburg Bancorp, Inc $299 Mifflinburg Bank & Trust Orrstown Financial Services $1,196 Orrstown B
Slide 29: For the Year 2009 Peer Ratios
For the Year 2009 Corporation ROA ROE Net Interest Margin Non-Interest Income to Average Assets Non-Interest Expense to Average Assets Mid Penn (0.39)% (4.43)% 3.38% 0.60% 2.81% Kish 0.64% 9.60% 3.35% 0.95% 2.94% First Community 0.65% 9.06% 3.24% 0.71% 2.50% Mifflinburg 1.23 % 11.99% 3.97% 1.04% 2.7
Slide 30: ROA and ROE Peer Comparison
Return on Average Assets Return on Average Equity 2009 Key Performance Ratio Comparisons to Local Peer Group
Slide 31: Net Interest Margin and Non-Interest Income Comparison
Net Interest Margin Non-Interest Income / Average Assets 2009 Key Performance Ratio Comparisons to Local Peer Group Non-Interest Expense/ Average Assets
Slide 32: Asset Quality Ratio Comparisons
Non-Performing Loans / Total Loans Net Charge-Offs to Average Loans 2009 Key Performance Ratio Comparisons to Local Peer Group Loan Loss Reserve / Total Loans
Slide 33: Capital Ratio Comparisons to Local Peer Group
Risk-Based Capital Ratio (8% Minimum) Tier 1 Risk Based Capital Ratio (4% Minimum) 2009 Capital Ratio Comparisons to Local Peer Group Leverage Ratio (4% Minimum)
Slide 34: Historical Regular Dividend Activity
Historical Regular Dividend Activity Historical Regular Dividend Activity Annual Percentage Increase Annual Percentage Increase 2001 5.3% 2002 10.0% 2003 13.6% 2004 14.0% 2005 7.0% 2006 8.2% 2007 6.1% 2008 5.7% 2009 5.4%
Slide 35: Stockholder Total Return Assumptions
Stockholder Total Return - 5 Year Assumptions Investment made on 12/31/2004 Selected Local Peers FMFP - First Community Financial Corp. KISB - Kish Bancorp MPB - Mid Penn Bancorp MIFF - Mifflinburg B&T NUBC - Northumberland Bancorp ORRF - Orrstown Financial Services FNB - FNB of Pennsylvania Definit
Slide 36: Juniata Valley vs. Composite of Selected Peers and National Index
Juniata Valley Vs. Composite of Selected Peers And National Index National Index National Index National Index National Index National Index National Index National Index National Index National Index National Index National Index National Index National Index
Slide 37: Comparison to Other Banks in our Size Range
Comparison to Other Banks in our Size Range Juniata Valley Vs. Composite of Selected Peers And US Banks with Assets between $250 million and $500 million $500 million $500 million $500 million $500 million $500 million $500 million $500 million $500 million $500 million $500 million $500 million $50
Slide 38: Total Return Performance
Total Return Performance - 5 Year Initial Investment 12/31/04 to 12/31/09
Slide 39: 2010 - Moving Ahead
2010 - MOVING AHEAD Facing challenges How are we measuring up to our expectations thus far?
Slide 40: Q1 2010 Results vs. Budget
Q1 2010 Results vs. Budget Q1 2010 Actual Q1 2010 Budget Net Income $1,188,000 $1,201,000 Earnings per Share $0.27 $0.27 Average Assets $436,314,000 $437,402,000 Net Interest Income $3,996,000 $4,062,000 Net Interest Margin 4.27% 4.30% Non-Interest Income/AA 0.93% 0.92% Non-Interest Expense/AA 2.88%
Slide 41: Conclusion
Conclusion Francis Evanitsky
Slide 42: Better Bank, Better Service, Better Results
Better Bank, Better Service, Better Results
Juniata Valley Financial — Shareholder Meeting (May 2010) on 6ix