Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2018)
39 slides from Juniata Valley Financial's shareholder meeting presentation, May 17, 2018
Slide 1: Juniata Valley Financial Corp. Annual Shareholders Meeting
Juniata Valley Financial Corp. Annual Shareholders Meeting May 15, 2018 Exhibit 99.1
Slide 2: Shareholders' Business Meeting
Timothy I. Havice Chairman of the Board of Directors Shareholders’ Business Meeting
Slide 3: Forward-looking information
The presentation may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995 . When words such as “believes”, “expects”, “anticipates” or similar expressions are used in this release, Juniata Valley is making forward - looking statements . Such inform
Slide 4: Building Blocks for the Future
Marcie A. Barber President and Chief Executive Officer Building Blocks for the Future
Slide 5: Financial Performance
JoAnn N. McMinn Executive Vice President and Chief Financial Officer Financial Performance
Slide 6: Non-GAAP supplemental financial information
The presentation that follows contains some supplemental financial information determined by methods other than in accordance with U . S . generally accepted accounting principles (GAAP) . Some tables that follow present reconciliations of certain non - GAAP measures to the most directly comparable
Slide 7: Growth in Average Assets
Growth in Average Assets (In Thousands) $428,744 $435,285 $439,130 $447,323 $454,057 $450,031 $470,660 $489,323 $577,341 $593,923 $400,000 $420,000 $440,000 $460,000 $480,000 $500,000 $520,000 $540,000 $560,000 $580,000 $600,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 8: Long Term Strategic Focus and Attention to Detail
Long Term Strategic Focus and Attention to Detail At Juniata Valley, our Strategic Plan calls for Growth and Profitability. We plan and execute for Long Term results. To assess performance and expectations, we must have an understanding of the short - term and long - term effects of our strate
Slide 9: Merger and Acquisition Activity - Strategic
Merger and Acquisition Activity - Strategic In 2015, Juniata Valley Financial Corp. acquired FNBPA, Inc. One - time merger costs related to that particular acquisition, occurred in 2015 and 2016 at significantly different levels. Also related to the FNBPA merger, were certain gains from the su
Slide 10: Defined Benefit Liability Reduction - Strategic
Defined Benefit Liability Reduction - Strategic In 2017, Juniata Valley Financial Corp. initiated a strategy to reduce the liability associated with it defined benefit pension plan. The first step of the initiative consisted of the purchase of a single - premium group annuity for a group of our
Slide 11: Insurance Gains – Possible but Unexpected
Insurance Gains – Possible but Unexpected Juniata carries life insurance on certain of its current and former executives and directors. The earnings and gains on the policies are intended to offset some of the cost of benefit programs for employees. Life insurance gains are infrequently receiv
Slide 12: Tax Cuts and Jobs Act - Unexpected
Tax Cuts and Jobs Act - Unexpected Near the end of 2017, the Tax Cuts and Jobs Act was enacted, lowering Juniata’s and Liverpool’s future maximum corporate tax rate from 34% to 21%. The reduced rate will provide reductions in tax expense in future periods, beginning on January 1, 2018. For 201
Slide 13: Note concerning performance comparisons
Note concerning performance comparisons * In order to provide meaningful comparisons to prior years and to peer performance, in this presentation, earnings and non - interest income and expense ratios for 2015, 2016 and 2017 reflect the adjusted results indicated above. For further relevant Non - GA
Slide 14: Five Year Earnings Growth
Five Year Earnings Growth (in thousands) 4,001 4,216 3,058 4,537 1,311 (210) 716 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2013 2014 2015 2016 2017 Adjustment for M&A, Defined Benefit Settlement, Insurance Gains and Tax Cuts Act (Non-GAAP) Net income as Reported (GAAP) Charted earnings growth,
Slide 15: Income and Performance Ratios
Income and Performance Ratios 2015, as adjusted * 2016, as adjusted * 2017, as adjusted * Net Income 4,369,000$ * 4,946,000$ * 5,253,000$ * Return on Average Assets 0.89% * 0.84% * 0.88% * Return on Average Equity 8.54% * 8.08% * 8.77% * Net Interest Margin (fully tax equivalent) 3.56% 3.57% 3.52% L
Slide 16: Peer Group Comparisons
Peer Group Comparisons Important to assess our performance against other financial institutions of our relative size who are experiencing similar regulatory and compliance governance.
Slide 17: Peer Groups Defined
Local Peers Geographic Peers of similar size and complexity CBTC - CBT Financial Corporation CCFN – CCFNB Bancorp, Inc. DIMC – Dimeco, Inc. EMCF – Emclaire Financial Corp. ENBP – ENB Financial Corp FMFP – First Community Financial Corporation FRAF – Franklin Financial Services Corporat
Slide 18: Performance Comparison: Return on Average Assets and Equity
Performance Comparison Return on Average Assets 0.89% 0.92% 0.81% 0.70% 0.78% 0.50% 0.86% 0.88% 0.78% 2015 2016 2017 JUVF Local Peers PA Banking Corp Reported at 0.89% Reported at 0.62% Return on Average Equity 8.54% 8.68% 8.03% 7.19% 8.18% 5.50% 8.27% 8.42% 7.67% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00%
Slide 19: Performance Comparison: Net Interest Margin and Loan Loss Provision
Performance Comparison Net Interest Margin (Fully Tax Equivalent) 3.56% 3.57% 3.52% 3.53% 3.50% 3.53% 3.29% 3.28% 3.35% 2015 2016 2017 JUVF Local Peers PA Banking Corp Loan Loss Provision (As a Percentage of Average Assets) 0.10% 0.08% 0.07% 0.14% 0.12% 0.10% 0.13% 0.13% 0.14% 2015 2016 2017 JUVF Lo
Slide 20: Performance Comparison: Non-Interest Income and Expense
Performance Comparison Non - Interest Income (As a Percentage of Average Assets) 0.92% 0.82% 0.81% 0.78% 0.77% 0.73% 0.77% 0.79% 0.72% 2015 2016 2017 JUVF Local Peers PA Banking Corp Non - Interest Expense (As a Percentage of Average Assets) 2.84% 2.83% 2.82% 2.93% 2.85% 2.85% 2.71% 2.68% 2.62% 2015
Slide 21: Credit Quality
Credit Quality Non - Performing Assets as % of Equity 7.81% 9.66% 5.97% 14.71% 14.34% 12.25% 10.70% 9.70% 8.17% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 17.00% 2015 2016 2017 JUVF Local Peers PA Banking Corp JUVF Trend High Focus on Reduction and Prevention of Non - Performing Assets. Definition o
Slide 22: Capital Strength
Capital Strength Risk - Based Capital Ratio 15.03% 15.34% 15.01% 14.94% 14.91% 14.00% 17.60% 16.87% 16.39% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 2015 2016 2017 JUVF Local Peers PA Banking Corp Regulatory Measurement of Capital Adequacy Minimum regulatory requirement for
Slide 23: Healthy Capital Supporting Dividend Level
Healthy Capital Supporting Dividend Level 9.38% 9.29% 9.17% 8.96% 8.58% 8.53% 10.55% 10.20% 10.04% 2015 2016 2017 JUVF Local Peers PA Banking Corp Tangible Equity to Asset Ratio 4.99% 4.82% 4.40% 3.89% 3.62% 3.19% 2.56% 2.55% 2.27% 2015 2016 2017 JUVF Local Peers PA Banking Corp Dividend Yield Sourc
Slide 24: First Quarter 2018 vs. First Quarter 2017
First Quarter 2018 vs. First Quarter 2017 Q1 2017 Q1 2018 Change Net Income $1,459,000 $1,327,000 -9.05% Return on Average Assets 1.00% 0.89% -11.00% Return on Average Equity 9.83% 9.15% -6.92% Net Interest Margin (fully tax equivalent) 3.51% 3.45% -1.71% Loan Loss Provision as % of Average Assets 0
Slide 25: Literal Blocks
Marcie A. Barber President and Chief Executive Officer Literal Blocks
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Slide 27: We Juniata
WE J Juniata
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Slide 29: Figurative Blocks
Marcie A. Barber President and Chief Executive Officer Figurative Blocks
Slide 30: People, Software and Systems
People Software and Systems New Hires Training and Development $38,500 - $56,091 Integration Re - Deployment CRIF Banker’s Toolbox Sageworks Work Flow CECL
Slide 31: Products and Delivery Systems
Products Delivery Systems Expanded mortgage products Fresh Start Enhanced Business DD IDLock Enhanced Mobile Business Mobile Expanded On - Line access Professional Services
Slide 32: Shareholder Blocks
Marcie A. Barber President and Chief Executive Officer Shareholder Blocks
Slide 33: Five Year Earnings Growth
Five Year Earnings Growth (in thousands) 4,001 4,216 3,058 4,537 1,311 (210) 716 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2013 2014 2015 2016 2017 Adjustment for M&A, Defined Benefit Settlement, Insurance Gains and Tax Cuts Act (Non-GAAP) Net income as Reported (GAAP) Charted earnings growth,
Slide 34: Primary Earnings and Cost Management
Primary Earnings Interest Spread Price Liabilities Price Earning Assets Fee Services Trust Wealth Management Deposit Services Exchange Income Manage Costs of: Facilities Personnel Security Compliance Capital Oversight
Slide 35: We Juniata
WE J Juniata
Slide 36: Press Release: Juniata Valley to Acquire Liverpool Community Bank
Press Release Juniata Valley Financial Corp. to Acquire Liverpool Community Bank ‘Company Release - 12/29/2017 4:10 PM ET Miffintown, PA, Dec. 29, 2017 (GLOBE NEWSWIRE) -
Slide 37: Hot off the Press: Completion of Liverpool Merger
Hot off the Press Press Release Juniata Valley Financial Corp. Announces Completion of Liverpool Merger and First Quarter Results Company Release - 5/3/2018 9:51 AM ET MIFFLINTOWN, Pa., May 03, 2018 (GLOBE NEWSWIRE) ~ Liverpool Merger Completed
Slide 38: Questions?
Questions?
Slide 39: Slide 39
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