Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (May 2022)
41 slides from Pathfinder Bancorp's shareholder meeting presentation, May 13, 2022
Slide 1: 2022 Annual Meeting of Shareholders Presentation
2022 Annual Meeting of Shareholders Presentation NASDAQ: PBHC May 13, 2022 Chris R. Burritt James A. “Jim” Dowd Walter F. Rusnak Chairman of the Board President & CEO Senior VP & CFO 1
Slide 2: Welcoming Remarks
Welcoming Remarks Chris R. Burritt Chairman of the Board 2
Slide 3: 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 4: Agenda – 2022 Annual Meeting of Shareholders
Agenda – 2022 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 5: Board of Directors
Board of Directors Director Since David A. Ayoub 2012 William A. Barclay 2011 Chris R, Burritt, 1986 George P. Joyce, Pathfinder Bank 2000 John P. Funiciello 2011 ‘Adam C. Gagas 2014 Melanie Littlejohn 2016 John F. Sharkey, Ill 2014 Lloyd “Buddy” Stemple 2005
Slide 6: Executive Officers
Executive Officers Current Position Since James A. Dowd, CPA President & Chief Executive Officer 2022 Ronald Tascarella Executive Vice President & Chief Banking Officer 2006 Calvin L. Corriders Regional President, Syracuse Market, Human Resource Director 2017 William O’Brien Senior Vice President, C
Slide 7: Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm Tamara L. Gamble, CPA Partner Bonadio & Company, LLP 7
Slide 8: Business of 2022 Annual Meeting of Shareholders
Business of 2022 Annual Meeting of Shareholders The election of two directors, each for a one-year term: David A. Ayoub John F. Sharkey, III The election of four directors, each for a three-year term: Eric Allyn Meghan Crawford-Hamlin Adam C. Gagas Melanie Littlejohn The ratification of the appointm
Slide 9: Executive Management Presentation
Executive Management Presentation James A. Dowd, President and Chief Executive Officer Walter F. Rusnak, Senior Vice President, Chief Financial Officer & Controller 9
Slide 10: Table of Contents
10 Introduction to Pathfinder Bancorp, Inc. Market Performance Corporate Financial Highlights Strategy – Where We Are Going Lower Cost of Funds Control Operating Expenses Increase Recurring Non-Interest Income Table of Contents
Slide 11: Introduction to Pathfinder Bancorp, Inc.
11 Company Overview Key Milestones Corporate Highlights Introduction to Pathfinder Bancorp, Inc.
Slide 12: Corporate Overview and Branch Map
12 Branch Map Corporate Overview Originally opened as Oswego City Savings Bank in 1859; became Pathfinder Bank in 2000 Headquartered in Oswego, NY Operates 11 locations in the Central New York area 10 full-service locations in the Syracuse MSA and 1 loan production office in Utica, NY In 2014, conve
Slide 13: Operating in a Stable, Growing Market
13 Company Overview: Operating in a Stable, Growing, Market Syracuse MSA, New York The Syracuse MSA has a population of 480,012 and a median household income of $67,947. The Syracuse MSA Median Household income is anticipated to grow 8.9% between 2022 and 2027. Encompasses over 3,000 square miles co
Slide 14: Expanding Digital Presence
14 Company Overview: Expanding Digital Presence Serving Customers Via Multiple Channels Much Progress Made, but Key Focus on Expanding Pathfinder’s Digital Presence - Especially in Business Banking and Cash Management Services Link accounts to other financial institutions: Mobile deposits: Track spe
Slide 15: Key Milestones
15 Key Milestones 2015 Issued $10 million subordinated loan agreement maturing in 2025 and callable after October 2020 2011 Opened first branch in Onondaga County (Syracuse market) 2018 Total assets increased from $561 million at December 31, 2014 to $933 million at December 31, 2018 2019 Private Pl
Slide 16: Corporate Highlights
16 Corporate Highlights Experienced Management Team Backed by a Leading Institutional Investor Senior management has decades of experience in the community banking industry Appointed President and CEO in 2022, James Dowd has over 27 years of banking experience; and previously served as Chief Operati
Slide 17: High Insider Ownership Shows Confidence
17 Corporate Highlights: High Insider Ownership Shows Confidence Source: Pathfinder Proxy Statement Note: Data as of the record date of March 24, 2022 and includes all options that vest within 60 days of the record date Strong Ownership Across Senior Management & Board of Directors Creates Direct Al
Slide 18: Expanding Market Share
18 Expanding Market Share Note: Deposit data as of June 30, 2021 Largest bank by deposit market share in Oswego County Controls approximately 45% of the county’s deposits Growing presence in Onondaga County with three locations; the newest added in November 2018 Fourth Onondaga County Branch (City o
Slide 19: A Well Diversified Loan Portfolio
19 A Well Diversified Loan Portfolio… Well-diversified loan portfolio primarily comprising of commercial and residential mortgage loans and commercial loans Over past five (5) years, this mix has shifted significantly towards more commercial and commercial mortgage loans
Slide 20: A Well Diversified Deposit Base
20 … And a Well Diversified Deposit Base Well-diversified deposit mix, recently improving trends in increasing the levels of strategically-important demand deposits
Slide 21: Consistent Loan and Deposit Growth
21 Consistent Loan and Deposit Growth Note: “2022 data as of 1st Quarter March 31, 2022 (1) Includes convertible preferred equity in 2019 and 2020 ‘15-’20 CAGR = 14.5% ‘15-’20 CAGR = 15.2% ‘15-’20 CAGR = 7.0% ‘15-’20 CAGR = 13.9%
Slide 22: Well Capitalized Based on Regulatory Capital Ratios
22 Well Capitalized Based on Regulatory Capital Ratios Note: Dotted line marks what is considered well capitalized 2022 YTD is as of 1st Quarter March 31, 2022
Slide 23: Market Performance
23 Market Performance Share Price Performance Performance vs. Peers Market-Based Expectations
Slide 24: PBHC Share Price Performance
24 PBHC Share Price Performance: Performance Now Above Peers Historically, Also Above the S&P 500 YTD, and for the Trailing 12 and 36 Months Source: S&P Global Market Intelligence as of 5/9/2022 Pathfinder and KBW Regional Banking Index (KBW-RBI) underperforming S&P 500 over past five (5) years, but
Slide 25: Tangible Book Value Per Share and Market Price
25 Tangible Book Value Per Common Share and Market Price Per Share (as of May 11, 2022)
Slide 26: Tangible Book Value and EPS – Fully Diluted
26 Tangible Book Value Per Common Share and Earnings Per Share (EPS) – Fully Diluted
Slide 27: Corporate Financial Highlights
27 Corporate Financial Highlights Walter F. Rusnak, SVP, Chief Financial Officer
Slide 28: Improving Profitability: Increasing ROAA and ROAE
28 Improving Profitability: Increasing ROAA and ROAE Note: “2022 YTD” data as of March 31,2022 Trend in returns on average equity are positive since the second half of 2019 through December 31, 2021.
Slide 29: Revenue and Operating Expense Trends
29 Revenue and Operating Expense Trends (000’s)
Slide 30: Improved Efficiency Ratios and Reduced Non-Interest Expense
30 Improved Efficiency Ratios In Recent Periods and Reduced Non-Interest Expense Relative to Total Assets Note: “2022 YTD” data as of March 31,2022 The efficiency ratio (lower is better) and noninterest expenses as a percentage of average assets improved through December 2021 and are being carefully
Slide 31: Future Risks of Net Interest Margin Compression
31 Future Risks of Net Interest Margin Compression Partially Mitigated by Balance Sheet Positioning Over the Past 24 Months (1) This is a forward looking projection relying on internal analyses performed by Company management. The analyses are based on the interest-earning assets and liabilities on
Slide 32: Nonperforming Loans Nearly Returned to Pre-Covid Ratios
32 Nonperforming Loans (NPLs) Have Nearly Returned to Pre-Covid Ratios 1.52% ALLL/Total Loans at March 31, 2022 Provides Significant Buffering Against Future Credit Issues Note: 2022 data as of 1st Qtr. March 31,2022. Loan charge-offs annualized in 2022 for comparability
Slide 33: Strategy – Key Performance Metrics Update
33 Strategy – Key Performance Metrics Update
Slide 34: Strategic Plan Shifting Focus
34 Strategic Plan Shifting Focus: Concepts Introduced at the May 2019 Shareholders’ Meeting: Lower Cost of Funds Rebalance deposit mix: Non-maturity deposits Business Accounts Digital Banking/Treasury Management Control Operating Expenses Reduce net income pressure resulting from potential margin co
Slide 35: Strategic Plan – Lower Cost of Funds
35 Strategic Plan – Lower Cost of Funds (3 Year Horizon) Deposit Mix and Cost Comparison (dollars in thousands) These improvements were significantly influenced by changes in retail customer’s activities and by business deposits associated with Paycheck Protection Program (PPP) loan originations. Th
Slide 36: Strategic Plan – Control Operating Expenses
36 Strategic Plan – Control Operating Expenses (3 Year Horizon) Operating Expense Comparison Year over Year (dollars in thousands)
Slide 37: Strategic Plan – Increase Recurring Noninterest Income
37 Strategic Plan – Increase Recurring Noninterest Income (3 Year Horizon) Noninterest Income Year over Year (dollars in thousands)
Slide 38: Questions and Discussion
Questions and Discussion Pathfinder 'BANCORE INC,
Slide 39: Voting Results
Voting Results Chris R. Burritt, Chairman Inspector of Elections Report, William O’Brien, Corporate Secretary 39
Slide 40: Meeting Adjourned – Thank You for Attending
2022 Annual Meeting of Shareholders Meeting Adjourned Thank You for Attending 40
Slide 41: Appendix: Reconciliation of Non-GAAP Financial Measures
41 Appendix: Reconciliation of Non-GAAP Financial Measures Used In This Presentation