Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (September 2020)
38 slides from Pathfinder Bancorp's shareholder meeting presentation, Sep 24, 2020
Slide 1: 2020 Annual Meeting of Shareholders
2020 Annual Meeting of Shareholders 10:00 A.M. | September 24th, 2020 Virtual Meeting Hosted by Computershare
Slide 2: Welcoming Remarks
Welcoming Remarks Chris R. Burritt Chairman of the Board
Slide 3: Agenda – 2020 Annual Meeting of Shareholders
Agenda – 2020 Annual Meeting of Shareholders Introduction of Directors, Management and Guests Conduct of the Meeting Notice and proxy Report of Inspector of Elections Meeting proposals Call for vote Management Presentation and Written Questions & Verbal Answers to Follow Results of Shareholder Vote
Slide 4: Board of Directors
Board of Directors Director Since David A. Ayoub 2012 William A. Barclay 2011 Chris R. Burritt, Chairman 1986 John P. Funiciello 2011 Adam C. Gagas 2014 George P. Joyce 2000 Melanie Littlejohn 2016 Thomas W. Schneider, President & CEO 2001 John F. Sharkey, III 2014 Lloyd “Buddy” Stemple 2005
Slide 5: Executive Officers
Executive Officers Current Position Since Thomas W. Schneider President & CEO 2000 James A. Dowd, CPA Executive Vice President & Chief Operating Officer 2016 Ronald Tascarella Executive Vice President & Chief Banking Officer 2006 Calvin L. Corriders Regional President, Syracuse Market, Human Resourc
Slide 6: Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm Tamara L. Gamble, CPA Partner Bonadio & Company, LLP
Slide 7: Forward Looking Statements
Forward Looking Statements This presentation may contain the words or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, ”project” or similar expressions that are intended to identify “forward-looking statements” within the meaning of the Private Securiti
Slide 8: Business of 2020 Annual Meeting of Shareholders
Business of 2020 Annual Meeting of Shareholders The Election of Three Directors William A. Barclay, for a three-year term Chris R. Burritt, for a three-year term George P. Joyce, for a one-year term The ratification of the appointment of Bonadio & Co., LLP as the Company’s independent registered pub
Slide 9: Executive Management Presentation
Executive Management Presentation Thomas W. Schneider, President and Chief Executive Officer
Slide 10: Report to Shareholders
Report to Shareholders Agenda: Strategic Plan Progress COVID 19 – Impact: Compliance with safety protocols, CARES Act and Executive Orders, BCP tested and passed Strategic Plan and Results (Participation in PPP) Regional Economy Loan portfolio Allowance for Loan Losses Five and one half year results
Slide 11: Company Overview
Company Overview Source: S&P Global Market Intelligence; Company provided documents; Note: “2020 YTD” data as of June 30, 2020 (1) (2) (2) (3) Includes $15.4 million of convertible preferred equity Total RBC Ratio shown for Pathfinder Bank $19.6 million of net proceeds received from $20.8 million gr
Slide 12: Regional Deposit Information
Regional Deposit Information Source: S&P Global Market Intelligence Note:Deposit data as of June 30, 2019 Oswego, NY 2019 2019 2019 2019 Deposits Market Rank Institution (ST) Branches ($000s) Share (%) 1 Pathfinder Bancorp Inc. (NY) 7 638,896 46.23% 2 Fulton SB (NY) 4 201,893 14.61% 3 Community Bank
Slide 13: Strategic Plan – Year Horizon One Year Results
Strategic Plan – 3 Year Horizon One Year Results Shifting Focus as discussed at 2019 Shareholders’ Meeting: Lower Cost of Funds Rebalance deposit mix: Non-maturity deposits Business Accounts Digital Banking/Treasury Management Control Operating Expense Reduce pressure of margin compression Enhance e
Slide 14: Strategic Plan – Deposit Mix/Cost
Strategic Plan – 3 Year Horizon One Year Results June 2020 June 2019 # Change % Change Non Maturity Deposits Retail Checking 14,166 14,260 (94) (1.0%) Business Checking 2,805 2,486 319 12.8% Cost of Deposits 1.20% 1.47% - (.27)% Cost of Funds 1.37% 1.66% - (.29)% Deposit Mix/Cost Color key Green – f
Slide 15: Strategic Plan – Enhanced Fee Income
Strategic Plan – 3 Year Horizon One Year Results June 2020 June 2019 $ Change % Change Non-Interest Income Deposit Fees $659 $630 $29 4.6% Loan Fees 128 87 41 47.1% Investment Services Revenue 149 145 4 2.7% Insurance Services Revenue 522 461 61 13.2% Enhanced Fee Income Year over Year ($ in thousan
Slide 16: Strategic Plan – Manage Operating Expenses
Strategic Plan – 3 Year Horizon One Year Results June 2020 $ June 2019 $ $ Change % Change Total Operating Expense $12,003 $13,250 $(1,247) -(9.4)% Personnel 6,219 7,104 (885) (12.5)% Building & Occupancy 1,461 1,287 174 13.5% Information Technology and Electronic Delivery 1,152 1,162 (10) (0.9)% Ot
Slide 17: COVID-19 Response and Impact
COVID-19 Response and Impact Effective response to all safety and security rules and guidelines Live test of Full Business Continuity Planning No disruption of services Full compliance with all CARES ACT, Federal and State Executive Orders, as promulgated Remote Safety and Soundness Examination (FDI
Slide 18: COVID-19 Response and Impact: PPP Participation
COVID-19 Response and Impact Participation in CARES ACT Paycheck Protection Program (PPP) through the Small Business Administration As of June 30, 2020 ($ in thousands) As of June 30, 2020 $ Amount Total # Total PPP loans made Principal value of PPP loans made $75,298.6 697 Average PPP loan amount $
Slide 19: COVID-19 Response and Impact: Alignment with Deposit Mix Strategy
COVID-19 Response and Impact Alignment with Deposit Mix Strategy As of June 30, 2020 ($ in thousands) Strategy to move new PPP customers into lasting deposit and loan relationships. Total SBA fees earned: $2.8 million Total New Checking Accounts # $ Existing Customers 327 $35,862 New Customers 107 $
Slide 20: COVID-19 Response and Impact: Deferred Loans
COVID-19 Response and Impact Deferred Loans: 90 days As of June 30, 2020 (in dollars) Number of Loans Total Loan Principal Monthly Payment Average Principal Residential 192 $22,172,260 $146,863 $115,480 Commercial Real Estate 166 96,481,831 936,322 337,871 Commercial & Industrial 120 25,836,005 248,
Slide 21: COVID-19 Response and Impact: Extended Deferred Loans
COVID-19 Response and Impact Extended Deferred Loans Approximate as of August 31, 2020 (in dollars) Number of Loans Total Loan Principal Monthly Payment Average Principal Residential 32 $ 3,174,904 $ 19,831 $ 99,216 Commercial Real Estate 21 14,255,614 171,107 445,326 Commercial & Industrial 11 3,22
Slide 22: COVID-19 Loan Portfolio Analysis and Action
COVID-19 Loan Portfolio Analysis and Action Credit Portfolio Stress Tests: Top Down - Third Party CCAR Stress Scenario Capital Stress Test COVID-19 Stress Scenario Bottom Up: Internal Review and Stress Tests ALL Capacity Test Third Party Loan Review Stress Tests
Slide 23: COVID-19 Loan Portfolio Analysis: Loan Loss Provision
COVID-19 Loan Portfolio Analysis and Action Loan Loss Provision Allowance for Loan and Lease Losses ($ in thousands) 12-31-19 06-30-20 Allowance/Total Loans 1.11% 1.31% Allowance/Total Loans, Exclusive of PPP 1.11% 1.44% Non Performing Loans/Total Loans (excluding PPP) 0.67% 1.15% Total Provision fo
Slide 24: Financial Results
Financial Results through June 30, 2020
Slide 25: Financial Results: Deposit Portfolio
Financial Results through June 30, 2020 Deposit Portfolio December 31, 2015 $490.3 Million Deposit Portfolio June 30, 2020 $970.6 Million Includes brokered deposits
Slide 26: Financial Results
Financial Results 5 years and for the six months ended June 30, 2020 ($ millions)
Slide 27: Financial Results
Financial Results 5 years and for the six months ended June 30, 2020 ($ in millions)
Slide 28: Net Interest Margin
Net Interest Margin 5 years and for the six months ended June 30, 2020
Slide 29: Net Income
Net Income 5 years and annualized for the six months ended June 30, 2020 ($ in thousands)
Slide 30: Return on Average Assets
Return on Average Assets 5 years and annualized for the six months ended June 30, 2020
Slide 31: Return on Average Equity
Return on Average Equity 5 years and annualized for the six months ended June 30, 2020
Slide 32: Stock Performance and Value Metrics: Earnings Per Share Trends
Stock Performance and Value Metrics Earnings Per Share Trends (Fully Diluted) 5 years and annualized for the six months ended June 30, 2020
Slide 33: Tangible Common Equity to Tangible Assets
Stock Performance and Value Metrics Tangible Common Equity to Tangible Assets 5 years and for the six months ended June 30, 2020
Slide 34: Tangible Common Equity to Tangible Assets (Non-GAAP)
Stock Performance and Value Metrics Tangible Common Equity to Tangible Assets (1) (Non-GAAP) 5 years and for the six months ended June 30, 2020 Fully converted basis Assumes full conversion of 1,155,000 shares of convertible preferred stock are converted into common stock pursuant to the Private Pla
Slide 35: Total Tangible Book Value Per Common Share
Stock Performance and Value Metrics Total Tangible Book Value Per Common Share 5 years and for the six months ended June 30, 2020
Slide 36: Questions and Discussion
Questions and Discussion -PPathFinder ‘BANCORE INC. 36
Slide 37: Voting Results
Voting Results Chris R. Burritt, Chairman Inspector of Elections Report, William O’Brien
Slide 38: Meeting Adjourned – Thank You for Attending
2018 Annual Meeting of Shareholders Meeting Adjourned Thank You for Attending 2020 Annual Meeting of Shareholders
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