Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (April 2014)
36 slides from Pathfinder Bancorp's shareholder meeting presentation, Apr 23, 2014
Slide 1: 2014 Annual Meeting of Shareholders
2014 Annual Meeting of Shareholders April 23, 2014 10 a.m. Alexandria’s at the Lake Ontario Conference and Events Center Oswego, New York 1
Slide 2: Pathfinder Bancorp Annual Meeting of Shareholders
Pathfinder Bancorp, Inc. Annual Meeting of Shareholders Chris R. Burritt Chairman of the Board 2
Slide 3: Introductions
President, CEO – Thomas W. Schneider Corporate Secretary – Edward A. Mervine, Esq. Introductions Directors: Executive Officers: David A. Ayoub James A. Dowd, CPA William A. Barclay Melissa A. Miller John P. Funiciello Daniel R. Phillips George P. Joyce Ronald Tascarella L. William Nelson, Jr. Lloyd
Slide 4: Business of the Meeting
Business of the Meeting 1) The election of six directors of the Board of Directors of the Company. − William A. Barclay − Chris R. Burritt − Adam C. Gagas − George P. Joyce − Thomas W. Schneider − John F. Sharkey, III 4
Slide 5: Business of the Meeting: Ratification of Auditors
Business of the Meeting 2) Ratification of the appointment of Bonadio & Co., LLP as auditors for the Company for the fiscal year ended December 31, 2014. 5
Slide 6: Report to Shareholders
Report to Shareholders Thomas W. Schneider President & CEO James A. Dowd, CPA SVP & Chief Financial Officer 6
Slide 7: Forward-looking statements
This discussion may contain the words or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, ”project” or similar expression are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. S
Slide 8: Agenda
Agenda Corporate Strategy Plan of Conversion Results 8
Slide 9: Strategic Plan: Core Strategic Objectives
STRATEGIC PLAN 5 Core Strategic Objectives Employee Development Product & Service Delivery Market Expansion Enhance Operation Efficiency/Cost Control Capital Management 9
Slide 10: Strategic Initiatives
Strategic Initiatives Focus on expanding opportunities in Central New York Focus on growing the Pathfinder Bank brand while Focusing on under-served small business markets maximizing franchise (Onondaga County branch opening) value Acquisition of disenfranchised customers and employees as a result o
Slide 11: Capital Management: Plan of Conversion
Capital Management Plan of Conversion (“Second Step Conversion”) Reasons: Regulatory Dodd Frank Act Basel III Capital Rules 11
Slide 12: Capital Management: Business, Growth, Valuations
Capital Management Business: Growth Valuations - Timing Benefits to Shareholders Opportunities 12
Slide 13: Asset Growth Over 10 Years
Asset Growth Over 10 Years ($ in millions) SBLF Capital CPP Capital Infusion Infusion $550.0 $500.0 $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Asset Growth $277.9 $302.0 $296.9 $301.4 $320.7 $352.8 $371.7 $408.5 $443.0 $477.8 $503.8 Tier 1 Levera
Slide 14: Strategic Plan: Core Strategic Objectives
STRATEGIC PLAN 5 Core Strategic Objectives Employee Development Product & Service Delivery Market Expansion Enhance Operation Efficiency/Cost Control Capital Management 14
Slide 15: Pathfinder Bank Brand Competitive Advantage
PATHFINDER BANK BRAND COMPETITIVE ADVANTAGE LOCAL. COMMUNITY. TRUST. 15
Slide 16: Branch Office Locations
16 athFinder BANCORP. INC. PPathFinger MAIN OFFICE 214 West First Street, Oswego PLAZA OFFICE LACONA OFFICE State Route 104 East, Oswego 1897 Harwood Drive, Lacona DOWNTOWN DRIVE-THRU CENTRAL SQUARE OFFICE 34 East Bridge Street, Oswego 3025 East Avenue, Central Square MEXICO OFFICE CICERO OFFICE Nor
Slide 17: Deposit Market Rank by County - 2013
Deposit Market Rank by County - 2013 #1 market share holder in Oswego County Meaningful penetration into Onondaga County in a short timeframe OSWEGO COUNTY ONONDAGA COUNTY Total Deposits Market Share Total Deposits Market Share Rank Institution (ST) ($000) (%) Rank Institution (ST) ($000) (%) 1 M &
Slide 18: Oswego and Onondaga Market Combined
Oswego and Onondaga Market Combined 2013 2011 Total Deposits Market Share Total Deposits Market Share Rank Institution (ST) (000's) % Rank Institution (ST) (000's) % 1 M & T Bank Corp. (NY) $2,539,826 25.72% 1 M & T Bank Corp. (NY) $2,198,443 23.21% 2 KeyCorp (OH) 1,914,749 19.39% 2 KeyCorp (OH) 1,6
Slide 19: Benefits of Conversion
Benefits: Enhanced Liquidity for Common Stock Immediately Accretive to Book Value per Share Provides Capital for Continued Growth Eliminate a Limited Structure (MHC) Increases Flexibility for Mergers and Acquisitions 19
Slide 20: 2013 Financial Results
2013 Financial Results James A. Dowd SVP & Chief Financial Officer 20
Slide 21: Balance Sheet Results
Balance Sheet Results Growth - Organic - Balanced - Diversified 21
Slide 22: Loan Growth
Loan Growth ($ in Millions) $400.0 $350.0 $300.0 $250.0 2009 2010 2011 2012 2013 3/31/2014 Loan Growth $262.5 $285.3 $304.8 $333.7 $341.6 $348.1 22
Slide 23: Loan Portfolio Composition
Loan Portfolio Composition Loan Composition Loan Composition December 31, 2003 December 31, 2013 Residential Real 8.78% 7.4% Residential Real Estate 1.5% 1.35% Estate 6.50% Commercial Real 13.8% Commercial Real Estate Estate Commercial 49.3% Commercial 16.27% Loans Loans 28.0% 67.10% Municipal Loans
Slide 24: Deposit Growth
Deposit Growth ($ in Millions) $500.0 $450.0 $400.0 $350.0 $300.0 $250.0 $200.0 2009 2010 2011 2012 2013 3/31/2014 Deposit Growth $296.8 $326.5 $366.1 $391.8 $410.1 $438.3 Includes brokered deposits 24
Slide 25: Deposit Portfolio Composition
Deposit Portfolio Composition Deposit Composition Deposit Composition December 31, 2003 December 31, 2013 4.0% Retail 5.6% Retail 13.2% Commercial 13.3% Commercial 73.5% 90.4% Municipal Municipal Includes Brokered Deposits 25
Slide 26: Net Interest Margin
Net Interest Margin 4.00% 3.90% 3.80% 3.76% 3.73% 3.70% 3.60% 3.56% 3.50% 3.48% 3.50% 3.43% 3.43% 3.40% 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Mar-14 26
Slide 27: Revenue and Operating Expense Trends
Revenue and Operating Expense Trends $20,000 $18,000 $16,000 Total Revenue Total Expense $14,000 $12,000 $10,000 2009 2010 2011 2012 2013 Total Revenue $14,501 $16,185 $16,714 $17,484 $18,200 Total Expense $11,126 $11,789 $13,148 $13,518 $14,751 27
Slide 28: Rate/Volume Analysis Year Ended December 31, 2013
Rate/Volume Analysis Year Ended December 31, 2013 Volume Rate Total Incr/(Decr) Interest Income: Loans $1,281 $(1,008) $ 273 Investments 127 (254) (127) Interest Earning Deposits (2) - (2) Total Interest Income 1,406 (1,262) 144 Interest Expense: Deposits 62 (480) (418) Borrowings 99 (325) (226) Tot
Slide 29: Return on Average Assets
Return on Average Assets 0.64% 0.60% 0.57% 0.55% 0.50% 0.48% 0.45% 0.40% 0.38% 0.30% 0.20% 0.10% 0.00% 2009 2010 2011 2012 2013 1st Qtr 2014 29
Slide 30: Return on Average Equity
Return on Average Equity 9.00% 8.07% 8.00% 7.04% 7.00% 6.75% 6.68% 6.00% 5.86% 5.00% 4.52% 4.00% 2009 2010 2011 2012 2013 1st Qtr 2014 30
Slide 31: Return on Average Common Equity
Return on Average Common Equity 9.0% 8.6% 8.2% 8.3% 8.0% 7.1% 7.0% 6.5% 6.0% 5.1% 5.0% 4.0% 2009 2010 2011 2012 2013 1st Qtr 2014 31
Slide 32: Total Return Performance
Total Return Performance 350 Pathfinder Bancorp, Inc. (MHC) 300 NASDAQ Composite 250 SNL Thrift 200 Index Value 150 100 50 0 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 Period Ending Index 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 Pathfinder Bancorp, Inc. (MHC) 100.00 92.19 142
Slide 33: Questions?
athFinder BANCORP INC. Questions? LOCAL. COMMUNITY. TRUST.
Slide 34: Voting Results
Pathfinder BANCORP INC. Voting Results 34 LOCAL. COMMUNITY. TRUST.
Slide 35: Thank you.
athFinder BANCORP INC. Thank you. LOCAL. COMMUNITY. TRUST.
Slide 36: athFinder
athFinder BANCORP INC. LOCAL. COMMUNITY. TRUST
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