Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2015)
50 slides from Juniata Valley Financial's shareholder meeting presentation, May 21, 2015
Slide 1: Juniata Valley Financial Corp. Annual Shareholders Meeting May 19, 2015
Juniata Valley Financial Corp. Annual Shareholders Meeting May 19, 2015
Slide 2: 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 - looking statements . Such inform
Slide 3: Chairman of the Board of Directors Timothy I. Havice
Chairman of the Board of Directors Timothy I. Havice
Slide 4: President and Chief Executive Officer Marcie A. Barber
President and Chief Executive Officer Marcie A. Barber
Slide 5: Juniata Valley Financial Corp. Banking on the Future
Juniata Valley Financial Corp. Banking on the Future
Slide 6: Verb phrases
Verb phrases 11. bank on /upon, to count on; depend on:
Slide 7: The Future
The Future
Slide 8: What Future?
What Future?
Slide 9: The Future of Juniata Valley Financial Corp.
The Future of Juniata Valley Financial Corp.
Slide 10: Number of Financial Institutions In United States
Number of Financial Institutions In United States 12,329 10,945 9,510 8,564 7,871 7,510 7,072 6,279 5,865 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1990 1993 1996 1999 2002 2005 2008 2011 2013 Source: FDIC
Slide 11: Failed Financial Institutions In United States 2000-2015
Failed Financial Institutions In United States 2000 - 2015 2 4 11 3 4 0 0 3 25 140 157 92 50 25 18 5 0 20 40 60 80 100 120 140 160 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: FDIC
Slide 12: Executive Vice President and Chief Financial Officer JoAnn N. McMinn
Executive Vice President and Chief Financial Officer JoAnn N. McMinn
Slide 13: Moving Forward with Results
$3,6 48 $4,0 01 $4,2 16 2012 2013 2014 $448,8 69 $448,7 82 $480,5 29 2012 2013 2014 $0.8 6 $0.9 5 $1.0 1 2012 2013 2014 Net Income In Thousands Year - End Assets In Thousands Earnings Per Share Moving Forward with Results
Slide 14: Key Financial Ratios
For Year 2013 For Year 2014 Change Return on Average Assets 0.89% 0.90% 1.1% Return on Average Equity 8.07% 8.31% 3.0% Net Interest Margin (fully tax equivalent) 3.53% 3.48% (1.4)% Loan Loss Provision as % of Average Assets 0.09% 0.08% 11.1% Non - Interest Income (excludes securities gains) as % of
Slide 15: Balance Sheet Changes
Balance Sheet Changes Assets 12/31/1 3 12/31/1 4 Cash $8,613 $6,767 Investments 132,434 149,998 Loans (net) 275,511 292,521 OREO 281 232 Other 31,943 31,011 Total $448,78 2 $480,52 9 • Loans – Overall increase – 6.2% • Increase in commercial lending portfolio • 43.3% of total loans in 2013 • 45.6% o
Slide 16: Steady Improvement In Non-Performing Loans
- 2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 2013 2014 2015 Q1 6,971 10,690 9,588 6,203 5,646 4,940 Non - Performing Loan Balances, in Thousands Steady Improvement In Non - Performing Loans
Slide 17: Key Financial Ratios Q1 2015
Q1 2014 Q1 2015 Change Return on Average Assets 0.81% 0.78% (3.7)% Return on Average Equity 7.17% 7.36% 2.6% Net Interest Margin (fully tax equivalent) 3.52% 3.50% (0.6)% Loan Loss Provision as % of Average Assets 0.02% 0.01% 50.0% Non - Interest Income (excludes securities gains) as % of Average As
Slide 18: Peer Group Comparison
Peer Group Comparison s Important to assess our performance against other financial institutions of our relative size who are experiencing similar regulatory and compliance governance.
Slide 19: Peer Groups Defined
Peer Groups Defined Local Peers Geographic Peers of similar size and complexity • CBTC - CBT Financial Corporation • CCFN – CCFNB Bancorp, Inc. • DIMC – Dimeco, Inc. • EMCF – Emclaire Financial Corp. • ENBP – ENB Financial Corp • FMFP – First Community Financial Corporation • FRAF – Franklin Financi
Slide 20: Performance Comparison: ROA and ROE
Performance Comparison Return on Average Assets 0.80% 0.89% 0.90% 0.82% 0.77% 0.81% 0.88% 0.79% 0.89% 2012 2013 2014 JUVF Local Peers PA Banking Corp Return on Average Equity 7.33% 8.07% 8.31% 8.72% 8.30% 8.68% 8.54% 7.86% 8.62% 2012 2013 2014 JUVF Local Peers PA Banking Corp Source: SNL Financial
Slide 21: Performance Comparison: Net Interest Margin and Loan Loss Provision
Performance Comparison Net Interest Margin (Fully Tax Equivalent) 3.68% 3.53% 3.48% 3.58% 3.50% 3.55% 3.48% 3.39% 3.39% 2012 2013 2014 JUVF Local Peers PA Banking Corp Loan Loss Provision (As a Percentage of Average Assets) 0.31% 0.09% 0.08% 0.23% 0.14% 0.11% 0.19% 0.16% 0.10% 2012 2013 2014 JUVF Lo
Slide 22: Performance Comparison: Non-Interest Income and Expense
Performance Comparison Non - Interest Income (As a Percentage of Average Assets) 0.94% 0.89% 0.82% 0.83% 0.78% 0.77% 0.66% 0.67% 0.61% 2012 2013 2014 JUVF Local Peers PA Banking Corp Non - Interest Expense (As a Percentage of Average Assets) 2.88% 2.92% 2.88% 2.84% 2.90% 2.88% 2.59% 2.63% 2.56% 2012
Slide 23: Credit Quality
Credit Quality Non - Performing Assets as % of Equity 18.44% 13.90% 11.79% 23.16% 21.69% 17.40% 18.81% 14.83% 13.55% 2012 2013 2014 JUVF Local Peers PA Banking Corp • High Focus on Reduction and Prevention of Non - Performing Assets. • Definition of Non - Performing Asset: • Loan that has been place
Slide 24: Capital Strength
Capital Strength Risk - Based Capital Ratios 18.28% 17.97% 17.12% 15.35% 15.41% 15.44% 17.56% 17.30% 18.42% 2012 2013 2014 JUVF Local Peers PA Banking Corp • Regulatory Measurement of Capital Adequacy • JUVF Capital levels support the level of dividends being maintained. The dividend yield is among
Slide 25: Healthy Capital Supporting Dividend Level
Healthy Capital Supporting Dividend Level 4.82% 4.96% 4.82% 3.63% 3.51% 3.65% 2.83% 2.79% 2.82% 2012 2013 2014 JUVF Local Peers PA Banking Corp Source: SNL Financial 11.21% 11.14% 10.38% 9.51% 9.14% 9.59% 10.77% 10.71% 9.98% 2012 2013 2014 JUVF Local Peers PA Banking Corp Tangible Equity to Asset Ra
Slide 26: President and Chief Executive Officer Marcie A. Barber
President and Chief Executive Officer Marcie A. Barber
Slide 27: Juniata Valley Financial Corp. Banking on the Future
Juniata Valley Financial Corp. Banking on the Future
Slide 28: Redesigning our Branches
Redesigning our Branches McAlisterville Office • Audio/Video efficiencies • Dual roles • Consultative sales Port Royal Office Millerstown, PA Port Royal, PA
Slide 29: Redesigning our Product Line
Redesigning our Product Line • Peace of Mind • Value • Monitor • Detect • Repair
Slide 30: Transitioning our Delivery System
Transitioning our Delivery System Mobile Remote Deposit Deposit Automation
Slide 31: Mobile Banking Remote Deposit App
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Slide 32: Faster, cleaner, better
• Faster, cleaner, better
Slide 33: For Customers
For Customers
Slide 34: Customer Resource Center
Customer Resource Center
Slide 35: Juniata Valley Financial Corp. Banking on the Future
Juniata Valley Financial Corp: Banking on the Future
Slide 36: Failed Financial Institutions In United States 2000-2015
Failed Financial Institutions In United States 2000 - 2015 2 4 11 3 4 0 0 3 25 140 157 92 50 25 18 5 0 20 40 60 80 100 120 140 160 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: FDIC?
Slide 37: Steady Improvement In Non-Performing Loans
- 2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 2013 2014 2015 Q1 6,971 10,690 9,588 6,203 5,646 4,940 Non - Performing Loan Balances, in Thousands Steady Improvement In Non - Performing Loans
Slide 38: Credit Quality
Credit Quality Non - Performing Assets as % of Equity 18.44% 13.90% 11.79% 23.16% 21.69% 17.40% 18.81% 14.83% 13.55% 2012 2013 2014 JUVF Local Peers PA Banking Corp • High Focus on Reduction and Prevention of Non - Performing Assets. • Definition of Non - Performing Asset: • Loan that has been place
Slide 39: Number of Financial Institutions In United States
Number of Financial Institutions In United States 12,329 10,945 9,510 8,564 7,871 7,510 7,072 6,279 5,865 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1990 1993 1996 1999 2002 2005 2008 2011 2013 Source: FDIC
Slide 40: Things were Great
Things were Great 12,329 10,945 9,510 8,564 7,871 7,510 7,072 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1990 1993 1996 1999 2002 2005 2008 Source: FDIC
Slide 41: 2008-2013 Not so Great
2008 – 2013 --- Not so Great 2 4 11 3 4 0 0 3 25 140 157 92 50 25 18 5 0 20 40 60 80 100 120 140 160 180 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: FDIC
Slide 42: Reduction in financial institutions over 2 year period
6,279 – 5,865 = 414 Reduction in financial institutions over this 2 year period. 2011 2013 6,279 5,865
Slide 43: Failed Institutions over that period
Failed Institutions over that period 2012 2013 50 25
Slide 44: Old Reasons
Old Reasons • Succession Management • Liquidity • Regulatory Problems
Slide 45: New Reasons
New Reasons ● COSTS Regulation Security ● Changing Customer Base Technology Non Bank Competition ● Flat Yield Curve ● Slowly recovering economy
Slide 46: Juniata Valley Financial Corp. Banking on the Future
Juniata Valley Financial Corp: Banking on the Future
Slide 47: Performance Comparison: ROA and ROE
Performance Comparison Return on Average Assets 0.80% 0.89% 0.90% 0.82% 0.77% 0.81% 0.88% 0.79% 0.89% 2012 2013 2014 JUVF Local Peers PA Banking Corp Return on Average Equity 7.33% 8.07% 8.31% 8.72% 8.30% 8.68% 8.54% 7.86% 8.62% 2012 2013 2014 JUVF Local Peers PA Banking Corp Source: SNL Financial
Slide 48: Capital Strength
Capital Strength Risk - Based Capital Ratios 18.28% 17.97% 17.12% 15.35% 15.41% 15.44% 17.56% 17.30% 18.42% 2012 2013 2014 JUVF Local Peers PA Banking Corp • Regulatory Measurement of Capital Adequacy • Capital to Support Growth • Earnings to Attract Investors • Positioned to Acquire • Committed to
Slide 49: 2015 Community Impact Award Finalist Mann Edge Terrace II
2015 Community Impact Award Finalist Mann Edge Terrace II
Slide 50: Juniata Valley Financial Corp. Annual Meeting May 19, 2015
Juniata Valley Financial Corp. Annual Meeting May 19, 2015
Juniata Valley Financial — Shareholder Meeting (May 2015) on 6ix