Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (May 2017)
45 slides from Pathfinder Bancorp's shareholder meeting presentation, May 5, 2017
Slide 1: 2017 Annual Meeting of Shareholders
2017 Annual Meeting of Shareholders 10:00 A.M. | May 5th, 2017The American FoundryOswego, New York
Slide 2: Welcoming Remarks
Welcoming Remarks Chris R. BurrittChairman of the Board
Slide 3: Agenda – 2017 Annual Meeting of Shareholders
Agenda – 2017 Annual Meeting of Shareholders Introduction of Directors, Management and GuestsConduct of the Meeting Notice and proxyReport of Inspector of ElectionsMeeting ProposalsVotingManagement Presentation and Q & A to FollowResults of Shareholder VoteMeeting Adjourned 3
Slide 4: Board of Directors
Board of Directors Director Since David A. Ayoub 2012 William A. Barclay 2011 Chris R. Burritt, Chairman 1986 John P. Funiciello 2011 Adam C. Gagas 2014 George P. Joyce 2000 Melanie Littlejohn 2016 Thomas W. Schneider, President & CEO 2001 John F. Sharkey, III 2014 Lloyd “Buddy” Stemple 2005 4
Slide 5: Executive Officers
Executive Officers Current Position Since Thomas W. Schneider President & CEO 2000 James A. Dowd, CPA Executive Vice President, Chief Operating Officer & Chief Financial Officer 2016/2000 Ronald Tascarella Executive Vice President & Chief Credit Officer 2006 Edward A. Mervine, ESQ Senior Vice Presid
Slide 6: Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm Jamie L. KeiserBonadio & Company, LLP
Slide 7: Business of 2017 Annual Meeting of Shareholders
Business of 2017 Annual Meeting of Shareholders The Election of Three Directors William A. Barclay Chris R. Burritt George P. Joyce The ratification of the appointment of Bonadio & Co., LLP as independent registered public accounting firm for the year ending 12/31/17 7
Slide 8: Forward Looking Statement
Forward Looking Statement 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 Litiga
Slide 9: Executive Management Presentation
Executive Management Presentation James A. Dowd, CPA, Executive Vice President, Chief Operating Officer & Chief Financial OfficerThomas W. Schneider, President and Chief Executive OfficerRonald Tascarella, Executive Vice President and Chief Credit Officer
Slide 10: Financial Statements Highlights
Financial Statements Highlights($ in thousands) Income Statement December 2016 December2015 $ Change % Change Net Income $3,298 $2,932 $366 12.5% Net Interest Income 20,289 18,767 1,522 8.1% Provision for Loan Losses 953 1,349 (396) (29.4%) Noninterest Expense 19,110 17,587 1,523 8.6% 10
Slide 11: Financial Statement Highlights
Financial Statement Highlights($in thousands) Statement of Condition December 2016 December 2015 $ Change % Change Total Assets $749,034 $623,254 $125,780 20.2% Total Loans 492,147 430,438 61,709 14.3% Total Investments 196,600 143,239 53,361 37.3% Total Deposits 610,983 490,315 (1) 120,668 24.6% Sh
Slide 12: Year Loan and Deposit Growth
5 -Year Loan and Deposit Growth (in millions) 12
Slide 13: Loan Portfolio Diversification
Loan Portfolio Diversification 13
Slide 14: Stable Asset Quality Metrics
Stable Asset Quality Metrics Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Non-performing Loans to Total Loans 1.66% 1.57% 1.61% 1.24% 0.98% Non-performing Assets to Total Assets 1.25% 1.18% 1.16% 0.94% 0.72% Allowance for Loan Losses to Total Loans 1.35% 1.48% 1.38% 1.33% 1.27% Allowance for Loan Lo
Slide 15: Deposit Portfolio Composition
Deposit Portfolio Composition December 31, 2006 $245.6 Million December 31, 2016$611.0 Million Includes brokered deposits 15
Slide 16: Net Interest Margin
Net Interest Margin 4.00% > 1% 3.50% 3.41% 3.40% 9 3.34% 3.31% 3.14% 3.00% T T T T a 1 2012 2013 2014 2015 2016 ‘Pathfinder 46
Slide 17: Rate/Volume Analysis for Year Ended December 31, 2016
Rate/Volume Analysis for Year Ended December 31, 2016 (in thousands) Volume Rate Total Increase Interest Income: Loans $2,306 $(53) $2,253 Investments 549 (176) 373 Interest-earning Deposits 0 43 43 Total Interest Income 2,855 (186) 2,669 Interest Expense: Deposits 295 184 479 Borrowings 454 214 668
Slide 18: Return on Average Assets
<3 ag he Return on Average Asset 0.70% 0.65% 0.60% 0.57% 0.55% 0.51% 0.50% 0.48% 0.48% 0.48% 0.45% i 0.40% 2012 2013 2014 2015 2016 ‘Pathfinder 48
Slide 19: 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 6.68% 5.86% 5.50% 5.35% 4.08% =a 2012
7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 6.68% 5.86% 5.50% 5.35% 4.08% =a 2012 2013 2014 2015 2016 ‘Pathfinder 19
Slide 20: Earnings per Share (Diluted) Growth
Earnings per Share (Diluted) Growth 20
Slide 21: Book Value Per Share Growth
Book Value Per Share Growth 21
Slide 22: Revenue and Operating Expense Trends
Revenue and Operating Expense Trends(in thousands) 22
Slide 23: Total Return Performance
Total Return Performance 300 260 o 2 o $ 220 3 180 = 140 100 -®=Pathfinder Bancorp, Inc.| 100 | 417.04 | 154.89 | 18671 | 249.08 | 264.75 NASDAQ Composite 400 | 117.45 | 16457 | 18884 | 20198 | 219.89 “SNL Thrift 400 | 12163 | 15609 | 167.88 | 188.78 | 231.23 ‘Pathfinder 23
Slide 24: 2017 1st Quarter Performance Summary
2017 1st Quarter PerformanceSummary Financial Performance ($ In thousands) March 2017 March 2016 Incr.(Decr.) Total Interest Income $6,870 $5,712 $1,158 Total Interest Expense 1,373 872 501 Net Interest Income 5,497 4,840 657 Provision for Loan Losses 389 210 179 Total Noninterest Expense 4,999 4,70
Slide 25: 2017 1st Quarter Condition Summary
2017 1st Quarter ConditionSummary Financial Condition ($ In Thousands) March 2017 December 2016 Incr.(Decr.) Total Loans $521,094 $492,147 $28,947 Total Investment Securities 205,557 196,600 8,957 Total Assets 802,345 749,034 53,311 Total Deposits 669,532 610,983 58,549 Shareholders’ Equity 59,379 5
Slide 26: Executive Management Presentation
Executive Management Presentation Thomas W. Schneider, President & Chief Executive Officer
Slide 27: Purpose, Vision, Strategy
PURPOSE VISION STRATEGY ‘Pathfinder 7
Slide 28: The Three "M's": Model, Market, Management
The Three “M’s” The Opportunity – The Risks – The Plan 28 MODEL MARKET MANAGEMENT(GOVERNANCE)
Slide 29: Strong Competitive Market Position
Market Strong Competitive Market Position Plaza Office291 State Route 104 East, Oswego Downtown Drive-Thru34 East Bridge Street, Oswego Mexico Office3361 Main Street, Mexico Fulton Office5 West First Street South, Fulton Lacona Office1897 Harwood Drive, Lacona Central Square Office3025 East Avenue,
Slide 30: Market Share
Market Share Strong Competitive Market Position in Onondaga and Oswego Counties 6-30-16 Rank Institution (ST) Total Deposits ($000) Market Share (%) 1 M & T Trust Company $2,974,149 26.09% 2 Bank of America NA 1,814,957 15.92% 3 Key Bank NA 1,388,330 12.18% 4 JP Morgan Chase NA 951,699 8.35% 5 First
Slide 31: 3-Year Asset Growth
3-Year Asset Growth (in thousands) 31
Slide 32: 3-Year Loan Growth
3-Year Loan Growth (in thousands) 32
Slide 33: 3-Year Deposit Growth
3-Year Deposit Growth (in thousands) 33
Slide 34: 3-Year Deposit Growth
3-Year Deposit Growth (in thousands) 34
Slide 35: 3-Year Deposit Growth
3-Year Deposit Growth (in thousands) 35
Slide 36: Positioned for Sustainable Growth CNY Region
36 Positioned for Sustainable Growth CNY Region
Slide 37: Service/Process, Growth in Loans and Risk Management
Service/Process Growth in Loans and Risk Management Deposits CAPITAL ‘Pathfinder 37
Slide 38: Total Return Performance
Total Return Performance 300 260 o 2 o $ 220 3 180 = 140 100 -®=Pathfinder Bancorp, Inc.| 100 | 417.04 | 154.89 | 18671 | 249.08 | 264.75 NASDAQ Composite 400 | 117.45 | 16457 | 18884 | 20198 | 219.89 “SNL Thrift 400 | 12163 | 15609 | 167.88 | 188.78 | 231.23 ‘Pathfinder 38
Slide 39: Purpose, Vision, Model, Management, Value Proposition, Market
PURPOSEVISION 39 MODEL MANAGEMENT VALUE PROPOSITION MARKET
Slide 40: Building Trust, Building Value
BUILDING TRUST BUILDING VALUECustomersCommunityEmployeesShareholdersLOCAL. COMMUNITY. TRUST. 40
Slide 41: Questions and Discussion
Questions and Discussion ‘Pathfinder 44 _
Slide 42: Executive Management Presentation
Executive Management Presentation Ronald Tascarella, Executive Vice President and Chief Credit Officer
Slide 43: BP PathFinder
BP PathFinder
Slide 44: Voting Results
Voting ResultsChris R. Burritt - ChairmanInspector of Elections Report – Edward Mervine 44
Slide 45: Meeting Adjourned
2017 Annual Meeting of Shareholders Meeting AdjournedThank You for Attending 45