Citizens & Northern Corp · NASDAQ:CZNC
Citizens & Northern — Shareholder Meeting (April 2018)
30 slides from Citizens & Northern's shareholder meeting presentation, Apr 19, 2018
Slide 1: Today, Tomorrow and the Future 2018 Annual Shareholders' Meeting
Today, Tomorrow and the Future 2018 Annual Shareholders’ Meeting Thursday, April 19, 2018 Exhibit 99.1
Slide 2: Welcome
Welcome • Procedural Agenda • Election of Four Class I Directors • Other Proposals on the Ballot • Chairman’s Comments • CEO Comments • Financial Review • Shareholder Value • Q&A 2
Slide 3: Procedural Agenda
Procedural Agenda • Appointments • Determination of Quorum • Minutes of 2017 Annual Meeting • Judges of Election 3
Slide 4: Election of Directors
Election of Directors Bobbi J. Kilmer Terry L. Lehman Frank G. Pellegrino James E. Towner 4
Slide 5: Other Proposals on the Ballot
Other Proposals on the Ballot • Second Amendment to the Citizens & Northern Corporation Independent Directors Stock Incentive Plan • Say on Pay • Appointment of Independent Auditor • Baker Tilly Virchow Krause, LLP 5
Slide 6: Chairman's Comments
Chairman’s Comments Leo F. Lambert Chairman of the Board 6
Slide 7: Chairman's Comments
Chairman’s Comments • Chuck Ferry – Stevens & Lee Law Firm • Ivan Cilik , CPA – Baker Tilly Virchow Krause, LLP 7
Slide 8: Chairman's Comments
Chairman’s Comments • The Board • Retirements • R. Bruce Haner • Edward H. Owlett, III • Appointments • Bobbi J. Kilmer 8
Slide 9: CEO Comments
CEO Comments Brad Scovill President & Chief Executive Officer 9
Slide 10: Mission, Vision & Values
Mission, Vision & Values Mission : Creating Value Through Lifelong Relationships Vision : Every Customer Says , “ C&N is the ONLY bank I need.” Values : Teamwork Respect Responsibility & Accountability Excellence Integrity Client - Focus Have Fun 10
Slide 11: External Influences
External Influences • Economic Indicators • GDP • Employment • Energy • Equity Markets • Inflation • Housing • Monetary Policy & Interest Rates • Policy - Making & Banking Regulation • Tax Reform • Advancing Technology 11
Slide 12: National Delivery Channel Trends
National Delivery Channel Trends The shift in consumer banking preferences over the last decade: 12
Slide 13: C&N's Delivery Channel Trends
C&N’s Delivery Channel Trends 13
Slide 14: Supporting our Vision, Mission & Values
Supporting our Vision, Mission & Values • Strategic Investments in • Technology • Delivery Channels • C&N Team 14
Slide 15: Producing Results
Producing Results • Loan and Deposit Growth • Trust Assets Under Management Growth • Revenue Growth • Non - Interest Expenses • Capital 15
Slide 16: Financial Review: End of Period Balances
Financial Review END OF PERIOD BALANCES ($ in thousands) 2017 2016 2015 Available - for - sale securities $356,908 $395,077 $420,290 Gross loans 815,713 751,835 704,880 Allowance for loan losses 8,856 8,473 7,889 Total assets 1,276,959 1,242,292 1,223,417 Deposits 1,008,449 983,843 935,615 Borrowing
Slide 17: Financial Review: Average Balances
Financial Review AVERAGE BALANCES (in thousands) 2017 2016 2015 Total assets $1,247,759 $1,229,866 $1,243,209 Earning assets 1,169,569 1,147,549 1,159,298 Gross loans 780,640 723,076 657,727 Deposits 990,917 970,447 968,201 Stockholders' equity 188,958 188,373 188,905 17
Slide 18: Financial Review: Income Statement
Financial Review INCOME STATEMENT (in thousands) For the Year Ended December 31 2017 2016 2015 Net interest income $41,948 $40,405 $39,917 Provision for loan losses 801 1,221 845 Net interest income after provision for loan losses 41,147 39,184 39,072 Noninterest income excluding securities gains 16
Slide 19: Financial Review: Per Common Share
Financial Review PER COMMON SHARE: 2017 2016 2015 Basic earnings per share $1.10 $1.30 $1.35 Diluted earnings per share $1.10 $1.30 $1.35 Cash dividends declared per share $1.04 $1.04 $1.04 Book value per common share at period - end $15.43 $15.36 $15.39 Tangible book value per common share at perio
Slide 20: Financial Review: Key Ratios
Financial Review KEY RATIOS 2017 2016 2015 Return on average assets 1.08% 1.28% 1.32% Return on average equity 7.11% 8.37% 8.72% Net interest margin¹ 3.82% 3.76% 3.69% Efficiency² 60.74% 59.22% 56.66% Average equity to average assets 15.14% 15.32% 15.19% Cash dividends as a % of diluted earnings per
Slide 21: Financial Review: Peer Group Comparison
Financial Review 2017 2016 C&N Peer Group Average C&N Percentile within Peer Group C&N Percentile within Peer Group Earnings and Profitability Percent of Average Assets: Net interest income - fully taxable equivalent 3.58 3.41 66 67 Non - interest income 1.28 0.86 80 79 Overhead expense 2.95 2.83 60
Slide 22: 1st Quarter 2018
1 st Quarter 2018 Dollars in thousands AS OF OR FOR THE THREE MONTHS ENDED MARCH 31, % INCREASE (DECREASE) EARNINGS PERFORMANCE: 2018 2017 Net Income (in thousands) $4,375 $3,434 27.40% Return on Average Assets (Annualized) 1.39% 1.11% 25.23% Return on Average Equity (Annualized) 9.41% 7.38% 27.51%
Slide 23: Shareholder Value
Shareholder Value • Valuation • Attractive Dividend • Share repurchase • Strong Currency 23
Slide 24: Shareholder Value: Total Return Performance
Shareholder Value *See Appendix A for additional information related to this performance graph 50 100 150 200 250 300 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Total Return Performance CZNC Peer Group Index Russell 2000 Citizens & Northern Corporation 24
Slide 25: Shareholder Value: Earnings, Price and Dividend Yield
Shareholder Value Earnings per Share - Diluted Year - end Stock Price Year - end Price/Earnings Ratio Annual Dividends per Share Annual Dividend Yield¹ 2010 $1.45 $14.86 10.2 $0.39 2.62% 2011 $1.92 $18.47 9.6 $0.58 3.14% 2012 $1.85 $18.90 10.2 $0.84 4.44% 2013 $1.50 $20.63 13.8 $1.00 4.85% 2014 $1.3
Slide 26: Shareholder Value: Per Share Data
Shareholder Value AS OF OR FOR THE THREE MONTHS ENDED MARCH 31, % INCREASE (DECREASE) PER COMMON SHARE 2018 2017 Net Income – Basic $0.36 $0.28 28.57% Net Income – Diluted $0.36 $0.28 28.57% Dividends $0.27 $0.26 3.85% Common Book Value $15.20 $15.41 - 1.36% Tangible Common Book Value (a) $14.22 $14
Slide 27: Dividend Announcement
Dividend Announcement CZNC Quarterly Cash Dividend • Amount: $0.27 per share • Record Date: 4/30/2018 • Payable Date: 5/11/2018 27
Slide 28: Optimism for the Future
Optimism for the Future • Building Momentum • Future Growth & Expansion • Team Engagement and Culture • Maturing Investments in Products, Technology and Data Management • Capacity for Acquisition/Market Expansion • External Factors Remain Positive • Commitment to Community 28
Slide 29: Today, Tomorrow and the Future Q&A
Today, Tomorrow and the Future Q&A 29
Slide 30: Thank You
Thank You Creating Value Through Lifelong Relationships
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