Citizens & Northern Corp · NASDAQ:CZNC
Citizens & Northern — Sandler O'Neill + Partners East Coast Financial Services Conference 2015
17 slides from Citizens & Northern's conference presentation, Nov 9, 2015
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill + Partners, L.P. East Coast Financial Services Conference November 10 - 11, 2015
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements which, to the extent that they are not recitations of historical fact may constitute fo rwa rd - looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward - looking st
Slide 3: Franchise Overview
Franchise Overview • Citizens & Northern Corporation is a bank holding company with assets of approximately $1.2 billion, headquartered in Wellsboro, PA. Banking services are provided by its subsidiary, Citizens & Northern Bank, from 26 banking offices in Bradford, Cameron, Lycoming, McKean, Potter,
Slide 4: Summary Statistics – September 30, 2015
Summary Statistics – September 30, 2015 Total Assets: $1.2 Billion Net Loans: $672.4 Million Total Deposits: $961.1 Million Tangible Common Equity: $178.1 Million Tang. Common Equity / Tang. Assets: 14.59% Tier 1 Leverage Ratio: 13.95% Total Risk Based Capital: 24.54% NPAs 1 / Assets 1.28% LTM Retur
Slide 5: Current Footprint
Current Footprint mal . ¢ WARREN “ 1 CRAWFORD want 3 ° ane i 3 vw, aK WN) ug SE ewcer : ca ‘CLARION | serreR. LUZERNE x © [aw AN Monroe, : w FP mee | a one came —/ Wa Caroon’ x 1 5 | eae Ce ytey Snes SP cn " iGH) ‘ues an Sa = t HUNTING oe 7 vsinron comes SOMERSET | BEDFORD : coreene {FAYETTE ASST FR
Slide 6: Strong Deposit Market Share in Legacy Markets
Strong Deposit Market Share in Legacy Markets Source: SNL Financial 6 Projected HHI Growth % of CZNC Market Market Share Number of (2016 - 2021) County Deposits Rank (%) Branches (%) Bradford, PA 37.15% 1 32.71% 7 15.00% Tioga, PA 24.78% 2 34.68% 5 13.73% Lycoming, PA 17.29% 7 7.00% 7 13.92% Sulliva
Slide 7: Management Team
Management Team • Successful leadership transitions – Independent Director, Leo Lambert, appointed Chairman of the Board in October 2014 – Brad Scovill appointed President and CEO effective in March 2015 • All executive officers have 15+ years of banking experience Years of Banking Years with Citize
Slide 8: Current Strategic Focus
• Strategic Investments – Recent hires and development of people – Striving to be “best in class” with technology - based products • Evaluating New Market Opportunities – Targeting markets and individuals/teams for expansion • Proactive M&A Strategy – Focus on preparedness • Capital Deployment – Cur
Slide 9: Consistently High Earnings Performance
Consistently High Earnings Performance Source: Company documents, SNL Financial 9 Earnings Per Share Efficiency Ratio ROAA ROAE $1.45 $1.92 $1.85 $1.50 $1.38 $1.36 $0.75 $0.90 $1.05 $1.20 $1.35 $1.50 $1.65 $1.80 $1.95 2010 2011 2012 2013 2014 LTM Q3 2015 52.86% 49.51% 48.81% 54.70% 57.76% 57.80% 30.
Slide 10: Loan Portfolio Diversification
Loan Portfolio Diversification Source: Company documents, SNL Financial 10 (Dollars in Thousands) September 30, 2015 Loan Type Amount % of Total Total Residential Mortgage $380,915 56.03% Commercial Loans secured by Real Estate 135,760 19.97% Commercial and Industrial 72,011 10.59% Political Subdivi
Slide 11: Investment Portfolio – Available-for-Sale
(Dollars in Thousands) September 30, 2015 Security Type Amount % of Total Obligations of U.S. Government Agencies $15,621 3.38% Obligations of states and political subdivisions: Tax-exempt 112,396 24.34% Taxable 35,124 7.61% Mortgage-backed securities 72,697 15.75% US Gov't collateralized mortgage o
Slide 12: Deposit Composition
Deposit Composition Source: Company documents, SNL Financial 12 (Dollars in Thousands) September 30, 2015 Deposit Type Amount % of Total Noninterest-bearing demand $203,844 21.21% Interest checking 202,988 21.12% Savings and money market 324,097 33.72% Time deposits of less than $100,000 160,728 16.
Slide 13: Wealth Management Division
• Largest Locally - based Wealth Management Department with Integrated Broker/Dealer and Insurance Sales • Team is comprised of over 30 professionals • $790 million in Trust assets under management at 9/30/15 • Trust and brokerage revenues totaled $4.1 million in nine - month period ended 9/30/15, o
Slide 14: Very Strong Capital Position
Very Strong Capital Position • High capital positions us for growth – organically and by entry into new markets via acquisition or other means Source: Company documents, SNL Financial 14 Sept. 30, 2015 Actual Data Basel lll Requirements plus Capital Conservation Buffer Total RBC Ratio10.5 Tier 1 Rat
Slide 15: Attractive Value Proposition
Attractive Value Proposition 1) Peer group utilized is the SNL US Bank $1B - $5B index which includes all (140) major exchange banks (NYSE, NYSE MKT, NASDAQ) in SNL’s coverage universe with $1B - $5B in assets as of most recent financial data 2) Defined as non - accrual loans + p erforming restructu
Slide 16: Investment Considerations
• Leading market share among community banks in North Central Pennsylvania • Experienced Board and senior leadership team • Consistently high earnings performance, with diverse revenue sources • Very strong capital position • Significant loan growth in 2015 • Disciplined credit culture and risk mana
Slide 17: Contact Information
17 Contact Information President and CEO: Brad Scovill BradleyS@cnbankpa.com ; 570 - 723 - 2102 Treasurer and CFO: Mark Hughes MarkH@cnbankpa.com ; 570 - 724 - 8533 Online: www.cnbankpa.com www.cntrustpa.com www.cnfinancialservices.com