Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Debt Investor Presentation (October 2020)
42 slides from Pathfinder Bancorp's debt investor presentation, Oct 15, 2020
Slide 1: September 2020 Subordinated Notes Offering Presentation
September 2020 Subordinated Notes Offering Presentation NASDAQ: PBHC
Slide 2: Notice to Recipients
Notice to Recipients This confidential subordinated notes offering presentation (this “Presentation”) has been prepared solely for general informational purposes by Pathfinder Bancorp, Inc. (the “Company,” the “holding company,” “we” or “our”), and is being furnished solely for use by prospective pa
Slide 3: Offering Disclaimer
Offering Disclaimer This Presentation has been prepared by the Company solely for informational purposes based on information regarding our operations, as well as information from public sources. This Presentation is for information purposes only and is being furnished on a confidential basis to a l
Slide 4: Table of Contents
Table of Contents Executive Summary 5 I Asset Highlights 17 III Liabilities Highlights 26 IV Capital Highlights 30 V Income Statement Highlights 32 VI Management Team and Board Information 14 II Appendix 38 VII
Slide 5: Executive Summary
Executive Summary thFinder BANCORE INC.
Slide 6: Terms of the Offered Securities
Terms of the Offered Securities Issuer: Pathfinder Bancorp, Inc. (the “Company”), the 100% holding company of Pathfinder Bank (the "Bank") Ticker: NASDAQ: PBHC Security: Subordinated Debt Principal Amount: $25 million Term: 10-year, no-call 5-year Coupon: Fixed [X]% for 5 years Floating at SOFR + [X
Slide 7: Company 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, converted from MHC to 100% publicly-ow
Slide 8: Key Milestones
Key Milestones 2012 2015 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 Pri
Slide 9: Markets Overview
Source: S&P Global Market Intelligence; Population and MSA data as of April 2020 Centerstate Corporation for Economic Opportunity Syracuse.com Syracuse MSA, New York The Syracuse MSA has a population of 650,000 and a median household income of $63,858. The Syracuse MSA Median Household income is ant
Slide 10: Investment Highlights
Investment Highlights (1) Excludes warrant to purchase 125,000 shares of common stock Deposit data as of June 30, 2020 Experienced Management Team Backed by Leading Institutional Investor Senior management has decades of experience in the community banking industry Appointed President in 2000, Tom S
Slide 11: Pro Forma Capital Structure and Regulatory Capital Ratios
Pro Forma Capital Structure and Regulatory Capital Ratios Source: S&P Global Market Intelligence Note: Invested proceeds from $20.0 million capital raise assumed to have 20% risk-weighting Additional Tier 1 Capital includes $15,370 convertible Preferred Equity and $5,155 Trust Preferred. The Preferr
Slide 12: Preferred Equity Conversion Summary
Preferred Equity Conversion Summary
Slide 13: Debt Service Coverage Ratio
Debt Service Coverage Ratio Source: Company documents, S&P Global Market Intelligence Consolidated pre-tax income excludes $410k in realized securities gains in 2019; PF consolidated net income estimated from Pathfinder Bancorp, Inc. financial projections Interest expense on existing BHC debt includ
Slide 14: Management Team and Board Information
Management Team and Board Information
Slide 15: Experienced Management Team
Experienced Management Team Source: S&P Global Market Intelligence; Company provided biographies
Slide 16: Ownership Information
Ownership Information Source: S&P Global Market Intelligence (1) Excludes warrant to purchase 125,000 shares of common stock Ownership Distribution By Holder Type Ownership Disclosures Strong Ownership Across Senior Management & Board of Directors Creates Direct Alignment With Investors Inclusive of
Slide 17: Asset Highlights
lll. Asset Highlights
Slide 18: Balance Sheet Growth
Balance Sheet Growth Source: S&P Global Market Intelligence (1)See page 42 for non-GAAP reconciliation information Total Loans Total Assets Tangible Equity Total Deposits ($ in millions) ($ in millions) ($ in millions) ($ in millions) $20.8mm equity raise in 2019 (1)
Slide 19: Investment Portfolio Composition and Performance
The securities portfolio, largely consisting of residential and commercial mortgage backed securities and asset backed securities has been managed with a focus on stable returns and supplementing the rest of the balance sheet. Other portfolio information(1): Yield (FTE):2.76% Yield (Book):2.75% Dura
Slide 20: Loan Portfolio Diversification and Growth
Loan Portfolio Diversification and Growth Source: S&P Global Market Intelligence (1)Commercial & Industrial loans balance includes $73.7 million of PPP loans PBHC Regulatory Loan Composition PBHC Regulatory Loan Trends ($ in millions) 06/30/20 Regulatory Loan Composition (in $000s) Paycheck Protecti
Slide 21: Historical Loan Composition & Yields
Historical Loan Composition & Yields Source: S&P Global Market Intelligence (1)Commercial & Industrial loans balance includes $73.7 million of PPP loans (1) ($ in thousands)
Slide 22: Loan Portfolio by Collateral Type
Loan Portfolio by Collateral Type Source: Company provided documents Note:Loan information as of June 30, 2020 Commercial Real Estate All Other Loan Types
Slide 23: COVID-19 Modified Loan Portfolio Detail
COVID-19 Modified Loan Portfolio Detail Source: S&P Global Market Intelligence; Company provided documents Note:Loan modification data as of June 30, 2020 Total Loan Extensions as a % of Total Loans Total: 18.1% Commercial Loan Portfolio Detail as of June 30, 2020: $98.7K of $122.3K of modified loan
Slide 24: Non-Performing Assets Details
Non-Performing Assets Details Source: S&P Global Market Intelligence; Company provided documents (1)Excludes troubled debt restructurings Commentary Asset Quality Detail as of June 30, 2020: Total non-accrual loans of $8.38M Non-accrual loans to total assets of 0.72% Performing restructured loans (“
Slide 25: Asset Quality & Reserve Coverage Ratios
Asset Quality & Reserve Coverage Ratios Source: S&P Global Market Intelligence Non-performing loans (“NPLs”) include performing troubled debt restructured loans Loan Loss Reserves / NPLs (1) NCOs / Avg. Loans Loan Loss Reserves / Total Loans NPLs / Loans 1.44% exc. PPP Loans
Slide 26: Liabilities Highlights
IV. Liabilities Highlights
Slide 27: Deposit Growth
Deposit Growth Source: S&P Global Market Intelligence (1)PPP-related non-maturity deposits balance of $37.6mm as of 8/31/20 Noninterest Bearing Deposits / Total Deposits (%) Total Deposits ($ in millions) (1)
Slide 28: Deposit Composition
Deposit Composition Source: S&P Global Market Intelligence (1)Deposit data as of June 30, 2020 Cost of Deposits Deposit Composition(1) CD Maturity / Repricing Schedule(1) (in $000s):
Slide 29: Regional Deposit Information
Regional Deposit Information Source: S&P Global Market Intelligence Note:Deposit data as of June 30, 2020 Largest bank by deposit market share in Oswego County Controls approximately 48% of the county’s deposits Growing presence in Onondaga County with three locations; the newest added in November 2
Slide 30: Capital Highlights
V. Capital Highlights
Slide 31: Total Risk-Based & Tier 1 Leverage Regulatory Capital Ratios
Total Risk-Based & Tier 1 Leverage Regulatory Capital Ratios Tier 1 Risk Based Ratio CET1 Ratio Total Risk Based Ratio Tier 1 Leverage Ratio Well-Capitalized Tier 1 Lev. Ratio(1) (5%) Well-Capitalized CET1 Ratio(1) (6.5%) Well-Capitalized Tier 1 Risk-Based Ratio(1) (8%) Well-Capitalized Total Risk-B
Slide 32: Income Statement Highlights
Income Statement Highlights
Slide 33: Profitability & Expense Controls
Profitability & Expense Controls Source: S&P Global Market Intelligence Note:“2020 YTD” data as of June 30, 2020 ROAE & ROAA Efficiency Ratio
Slide 34: Core Revenue Detail
Core Revenue Detail Source: S&P Global Market Intelligence Note:“2020 YTD” data annualized as of June 30, 2020; total revenue is net interest income plus noninterest income * Annualized values as of June 30, 2020 ($ in thousands) *
Slide 35: Net Interest Margin vs. Net Noninterest Expense
Net Interest Margin vs. Net Noninterest Expense Source: S&P Global Market Intelligence Note:Pathfinder had approx. $2.0 million in unamortized deferred fees as of June 30, 2020, which will run through income in the future Net NIE / AA = (Noninterest Expense – Noninterest Income) / Avg. Assets Slight
Slide 36: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Source: S&P Global Market Intelligence Note:“2020 YTD” data as of June 30, 2020 *Net Interest Income annualized as of June 30, 2020 ($ in thousands) Key Components of NII and NIM Net Interest Income (NII) and Net Interest Margin (NIM) *
Slide 37: Asset-Liability Profile
Asset-Liability Profile Source: Company’s June 2020 ALM Report
Slide 38: Appendix
Vil. Appendix
Slide 39: Regulatory Bank Financial Highlights
Regulatory Bank Financial Highlights Source: S&P Global Market Intelligence Note:Financial data shown at Bank level (1)See page 42 for non-GAAP reconciliation information (1) (1)
Slide 40: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Source: S&P Global Market Intelligence, company provided documents
Slide 41: Historical Consolidated Income Statement
Historical Consolidated Income Statement Source: S&P Global Market Intelligence, company provided documents
Slide 42: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Pathfinder Bancorp — Debt Investor Presentation (October 2020) on 6ix