Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2017)
42 slides from Juniata Valley Financial's shareholder meeting presentation, May 18, 2017
Slide 1: Annual Shareholders Meeting May 16, 2017
Annual Shareholders Meeting May 16, 2017 Juniata Valley Financial Corp.
Slide 2: Forward-looking statements
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 3: Shareholders' Business Meeting
“ ” Shareholders’ Business Meeting Timothy I. Havice Chairman of the Board of Directors
Slide 4: The New Shape of Banking
Marcie A. Barber President and Chief Executive Officer The New Shape of Banking
Slide 5: Celebrating 150 years
CELEBRATING 150 SUV3A
Slide 6: 150th Anniversary Celebration Events
Join us each month for a very special 150th Anniversary Celebration Event! JANUARY/FEBRUARY JUNE OCTOBER Facebook Contest Branch prizes for 150th drive thru October 6. ‘customer ofthe month Customer Appreciation D MARCH a Single prize for 150th new JULY NOVEMBER TdLOCK account opened Branch prizes f
Slide 7: Then and Now
Then and Now 1867 Resources $64,102 Capital $25,000 Liabilities $40,102 Shareholders 44 Locations 1 2017 Assets $592,106M Capital $59,445M Liabilities $532,661M Shareholders 1,825 Locations 17
Slide 8: Bank history timeline
1067 | The Junleta Valoy Bank s founded. 1000 | Notional charter i obtained. 1962 | Consolidated with the Firet Notonal Bank of Milerstown, Perry County. joos | Merged with Farmers National Bank of MeAllstorvie and the Port Royal National Bank, Junlata County. 1967 | Joined forces with the Tuscarora
Slide 9: Embracing the New Shape of Banking
“ ” With hard work and determination, this 150 year - old community bank has grown, adapted and evolved into something new… JUVF is embracing the New Shape of Banking
Slide 10: Financial Performance
JoAnn N. McMinn Executive Vice President and Chief Financial Officer Financial Performance
Slide 11: Non-GAAP financial information notice
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 12: Steady Balance Sheet Growth
Steady Balance Sheet Growth Annual Average Asset Balances (In Thousands)
Slide 13: 2016 – A Year of Re-Shaping
2016 – A Year of Re - Shaping Following Juniata Valley Financial Corp’s Acquisition of FNBPA Bancorp, Inc. in November 2015 Established JVB’s presence in Pennsylvania’s Northern Tier Through personal community involvement – meeting local residents and entrepreneurs Maintaining local personne
Slide 14: The Cost of Acquiring
The Cost of Acquiring There are many significant costs that accompany a merger transaction: Investment Banking Firm Fairness Opinion Legal Due Diligence Fair Value Analysis Accounting/Audit System Conversion/Deconversion Long - term contract termination penalties Contractual Paym
Slide 15: 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 and 2016 will reflect the adjusted results indicated above. Non-GAAP presentation of net i
Slide 16: Five Year Earnings Growth
Five Year Earnings Growth (in thousands) 3,648 4,001 4,216 3,058 5,156 1,311 154 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2012 2013 2014 2015 2016 Adjustment for M&A costs and gains (Non-GAAP) Net income as Reported (GAAP) Steady earnings growth, with 2016 reflecting the increased earnings po
Slide 17: Income and Performance Ratios
Income and Performance Ratios 2014 2015, as adjusted * 2016, as adjusted * Net Income 4,216,000$ 4,369,000$ * 5,310,000$ * Return on Average Assets 0.90% 0.89% * 0.92% * Return on Average Equity 8.31% 8.54% * 8.68% * Net Interest Margin (fully tax equivalent) 3.48% 3.56% 3.57% Loan Loss Provision as
Slide 18: 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 19: 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 20: Performance Comparison: ROA and ROE
Performance Comparison Return on Average Assets 0.90% 0.89% 0.92% 0.81% 0.70% 0.78% 0.88% 0.84% 0.88% 2014 2015 2016 JUVF Local Peers PA Banking Corp Reported at 0.89% Reported at 0.62% Return on Average Equity 8.31% 8.54% 8.68% 8.69% 7.19% 8.18% 7.63% 8.45% 7.86% JUVF Local Peers PA Banking Corp Re
Slide 21: Performance Comparison: Net Interest Margin
Performance Comparison Net Interest Margin (Fully Tax Equivalent) 3.48% 3.56% 3.51% 3.55% 3.52% 3.49% 3.32% 3.31% 3.29% 2014 2015 2016 JUVF Local Peers PA Banking Corp Loan Loss Provision (As a Percentage of Average Assets) 0.08% 0.10% 0.08% 0.11% 0.14% 0.12% 0.13% 0.09% 0.11% 2014 2015 2016 JUVF Lo
Slide 22: Performance Comparison: Non-Interest Income and Expense
Performance Comparison Non - Interest Income (As a Percentage of Average Assets) 0.92% 0.92% 0.92% 0.77% 0.78% 0.76% 0.59% 0.55% 0.57% 2014 2015 2016 JUVF Local Peers PA Banking Corp Non - Interest Expense (As a Percentage of Average Assets) 2.88% 2.94% 2.92% 2.88% 2.93% 2.85% 2.54% 2.50% 2.54% 2014
Slide 23: Credit Quality
Credit Quality Non - Performing Assets as % of Equity 11.79% 7.81% 9.66% 17.88% 14.02% 13.80% 12.10% 11.39% 10.26% 2014 2015 2016 JUVF Local Peers PA Banking Corp JUVF Trend High Focus on Reduction and Prevention of Non - Performing Assets. Definition of Non - Performing Asset: Loan that has b
Slide 24: Capital Strength
Capital Strength Risk - Based Capital Ratios 17.12% 15.03% 15.34% 15.60% 14.95% 14.96% 18.91% 18.05% 17.92% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00% 2014 2015 2016 JUVF Local Peers PA Banking Corp Regulatory Measurement of Capital Adequacy Minimum regulatory r
Slide 25: Healthy Capital Supporting Dividend Level
Healthy Capital Supporting Dividend Level 9.98% 9.38% 9.29% 9.00% 8.96% 8.58% 10.92% 10.76% 10.45% 2014 2015 2016 JUVF Local Peers PA Banking Corp Tangible Equity to Asset Ratio 4.82% 4.99% 4.82% 3.76% 3.99% 3.73% 2.71% 2.76% 2.72% 2014 2015 2016 JUVF Local Peers PA Banking Corp Dividend Yield Sourc
Slide 26: First Quarter 2017 vs. First Quarter 2016
First Quarter 2017 vs. First Quarter 2016 Q1 2016 Q1 2017 Change Net Income $1,292,000 $1,459,000 12.93% Return on Average Assets 0.88% 1.00% 13.64% Return on Average Equity 8.50% 9.83% 15.65% Net Interest Margin (fully tax equivalent) 3.58% 3.51% -1.96% Loan Loss Provision as % of Average Assets 0.
Slide 27: A New Shape For Customers
A New Shape For Customers
Slide 28: Customer Center
Customer Center Customer Centric On Boarding Problem Solving Cross - Sell On - Line Chat Remote Service
Slide 29: 150th celebration customer contests
Ey ceratomn contacts PERSONAL BUSINESS LENDING INVESTMENT& RETIREMENT SUPPORT Join our year-long CELEBRATING celebration of JVB serving your banking needs for 150 years! Each month JVB will be having a new contest with great prizes or special events for you to enjoy! 150 SUVA our ile of event or fol
Slide 30: New Customer Channels: Facebook and LinkedIn
New Customer FACEBOOK Facebook Page Live - October Followers - 760 Likes – 763 Community Involvement Charity Fun Connect with Heart LinkedIn Site Live – September 81 Followers Research Decision Makers Promote Professionalism Educate Prospect Connect with Head
Slide 31: Facebook page
MIE SEEES OE Juniata Valley Bank @ = eh aS oS _ Sonaa ee ae 42h Invite your friends fo ike this Page
Slide 32: LinkedIn company page
Juniata Valley Bank Banking» 51.200 employees + Mifintown, PA > (| orien 75% change in the Support function in the last 12 months. (Get the full picture About us Recent update Bank ight at.VB, The Juniata Valley Bank opened for business forthe fs time ‘om August 5, 1867 Since that time, The Juniata
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Slide 34: A New Shape for Our Team
A New Shape for Our Team
Slide 35: People
People Find the best ones Place in the right job Train them Keep them
Slide 36: A New Shape For Shareholders
A New Shape For Shareholders
Slide 37: Stock valuation methods
Stock valuation methods The most theoretically sound stock valuation method, called income valuation or the discounted cash flow (DCF) method, involves discounting of the profits (dividends, earnings, or cash flows) the stock will bring to the stockholder in the foreseeable future, and a final value
Slide 38: Stock Valuation Method
Stock Valuation Method Discounted Cash Flow Sum of Perpetuities Method
Slide 39: Five Year Earnings Growth
Five Year Earnings Growth (in thousands) 3,648 4,001 4,216 3,058 5,156 1,311 154 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2012 2013 2014 2015 2016 Adjustment for M&A costs and gains (Non-GAAP) Net income as Reported (GAAP) Steady earnings growth, with 2016 reflecting the increased earnings po
Slide 40: That reminds me of.....
That reminds me of.....
Slide 41: Income and Performance Ratios
Income and Performance Ratios 2014 2015, as adjusted * 2016, as adjusted * Net Income 4,216,000$ 4,369,000$ * 5,310,000$ * Return on Average Assets 0.90% 0.89% * 0.92% * Return on Average Equity 8.31% 8.54% * 8.68% * Net Interest Margin (fully tax equivalent) 3.48% 3.56% 3.57% Loan Loss Provision as
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