Citizens & Northern Corp · NASDAQ:CZNC
Citizens & Northern — Shareholder Meeting (April 2017)
32 slides from Citizens & Northern's shareholder meeting presentation, Apr 20, 2017
Slide 1: Alignment: The Bridge to Advancement – 2017 Annual Shareholders' Meeting
Alignment: The Bridge to Advancement Alignment: The Bridge to Advancement 2017 Annual Shareholders’ Meeting Thursday, April 20, 2017
Slide 2: Agenda
Alignment: The Bridge to Advancement AGENDA • Procedural Agenda • Election of Four Class II Directors • Other Items on the Ballot • Chairman’s Comments • CEO Comments • Financial Review • Shareholder Value • Q&A
Slide 3: Procedural Agenda
Alignment: The Bridge to Advancement PROCEDURAL AGENDA • Appointments – Chairman: Leo F. Lambert – Secretary: Katelyn Ackley • Determination of Quorum • Minutes of 2016 Annual Meeting • Judges of Election
Slide 4: Election of Directors
Alignment: The Bridge to Advancement ELECTION OF DIRECTORS Dennis Beardslee Jan Fisher J. Bradley Scovill Aaron Singer
Slide 5: Other Items on the Ballot
Alignment: The Bridge to Advancement OTHER ITEMS ON THE BALLOT • Say on Pay • Frequency of Say on Pay • Appointment of Independent Auditor – Baker Tilly Virchow Krause, LLP
Slide 6: Chairman's Comments
Alignment: The Bridge to Advancement CHAIRMAN’S COMMENTS Leo F. Lambert Chairman of the Board
Slide 7: CEO Comments
Alignment: The Bridge to Advancement CEO COMMENTS Brad Scovill President & Chief Executive Officer
Slide 8: Changing World
Alignment: The Bridge to Advancement CHANGING WORLD • Economic conditions • Interest rates • Regulatory environment • Politics • Talent • Technology
Slide 9: Mission
Alignment: The Bridge to Advancement MISSION Creating value through lifelong relationships with: as their resource for customized financial solutions, expertise and partnership. • Shareholders • Customers • Employees • Community
Slide 10: Vision
Alignment: The Bridge to Advancement VISION Every customer says “C&N is the ONLY bank I need.”
Slide 11: Values
Alignment: The Bridge to Advancement VALUES Teamwork = Together we are stronger. Excellence = Do your best. Every day. Every time. Responsibility & Accountability = Work like you own it. Respect = Value one another. Integrity = Do the right thing when no one is looking. Client - focus = Consider you
Slide 12: Strategic Focus
Alignment: The Bridge to Advancement • Sales & relationship management • Talent development • Technology enhancement • Risk management • Proactive expansion & acquisition • Board governance STRATEGIC FOCUS
Slide 13: Alignment – Customer Focused
Alignment: The Bridge to Advancement ALIGNMENT – CUSTOMER FOCUSED • People • Technology • Products • Process • Integrate delivery c hannels
Slide 14: People
Alignment: The Bridge to Advancement PEOPLE • Regional market structure • Training & development • Engagement & l eadership • Culture
Slide 15: Technology
Alignment: The Bridge to Advancement TECHNOLOGY • Customer information • Document imaging • Circuits & telephones • Many others
Slide 16: Products
Alignment: The Bridge to Advancement PRODUCTS • Deposits, Loans, Wealth • Online • Mobile • Tablet
Slide 17: Process
Alignment: The Bridge to Advancement PROCESS • Sustainable sales & relationship management • Simplify • Long - term costs • Customer - focused in all functions
Slide 18: Delivery Channels
Alignment: The Bridge to Advancement DELIVERY CHANNELS • 27 current total offices • Transition to open concept • Integrate video teller & call center • Online & mobile • Tablet
Slide 19: Alignment
Alignment: The Bridge to Advancement ALIGNMENT • People • Technology • Products • Process • Integrate delivery channels
Slide 20: Financial Review: End of Period Balances
Alignment: The Bridge to Advancement FINANCIAL REVIEW END OF PERIOD BALANCES ($ in thousands) 2016 2015 2014 Available - for - sale securities $395,077 $420,290 $516,807 Gross loans 751,835 704,880 630,545 Allowance for loan losses 8,473 7,889 7,336 Total assets 1,242,292 1,223,417 1,241,963 Deposit
Slide 21: Financial Review: Average Balances
Alignment: The Bridge to Advancement FINANCIAL REVIEW AVERAGE BALANCES (in thousands) 2016 2015 2014 Total assets $1,229,866 $1,243,209 $1,239,897 Earning assets 1,147,549 1,159,298 1,155,401 Gross loans 723,076 657,727 627,753 Deposits 970,447 968,201 965,418 Stockholders' equity 188,373 188,905 18
Slide 22: Financial Review: Income Statement
Alignment: The Bridge to Advancement FINANCIAL REVIEW INCOME STATEMENT (in thousands) For the Year Ended December 31 2016 2015 2014 Net interest income $40,405 $39,917 $40,887 Provision for loan losses 1,221 845 476 Net interest income after provision for loan losses 39,184 39,072 40,411 Noninterest
Slide 23: Financial Review: Per Common Share
Alignment: The Bridge to Advancement FINANCIAL REVIEW PER COMMON SHARE: 2016 2015 2014 Basic earnings per share $1.30 $1.35 $1.38 Diluted earnings per share $1.30 $1.35 $1.38 Cash dividends declared per share $1.04 $1.04 $1.04 Book value per common share at period - end $15.36 $15.39 $15.34 Tangible
Slide 24: Financial Review: Key Ratios
Alignment: The Bridge to Advancement FINANCIAL REVIEW KEY RATIOS 2016 2015 2014 Return on average assets 1.28% 1.32% 1.38% Return on average equity 8.37% 8.72% 9.21% Net interest margin¹ 3.76% 3.69% 3.80% Efficiency² 59.22% 56.66% 57.59% Average equity to average assets 15.32% 15.19% 14.96% Cash div
Slide 25: Financial Review: Peer Group Comparison
Alignment: The Bridge to Advancement FINANCIAL REVIEW 2016 2015 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 3.52 3.33 67 60 Non - interest income 1.26 0.9
Slide 26: Shareholder Value
Alignment: The Bridge to Advancement SHAREHOLDER VALUE • Valuation • Attractive Dividend • Share repurchase • Strong Currency
Slide 27: Shareholder Value: Performance Graph
Alignment: The Bridge to Advancement SHAREHOLDER VALUE *See Appendix A for additional information related to this performance graph
Slide 28: Shareholder Value: Components of Shareholder Return
Alignment: The Bridge to Advancement 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
Slide 29: Shareholder Value: Quarterly Cash Dividend
Alignment: The Bridge to Advancement SHAREHOLDER VALUE Announcement: CZNC Quarterly Cash Dividend • Amount: $0.26 per share • Record Date: 5/1/2017 • Payable Date: 5/12/2017
Slide 30: Q&A
Alignment: The Bridge to Advancement Q&A
Slide 31: Thank You
Alignment: The Bridge to Advancement Alignment: The Bridge to Advancement THANK YOU
Slide 32: Appendix A
Alignment: The Bridge to Advancement APPENDIX A *Peer index includes all publicly traded SEC filer Commercial Banks & Thrifts within NJ, NY, OH and PA with assets between $7 50M and $3.5B as of 9/30/2016 This chart compares the Corporation’s cumulative return to stockholders against the cumulative r
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