Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (May 2018)
41 slides from Pathfinder Bancorp's shareholder meeting presentation, May 9, 2018
Slide 1: 2018 Annual Meeting of Shareholders
2018 Annual Meeting of Shareholders 10:00 A.M. | May 9th, 2018 The Lake Ontario Conference and Events Center Oswego, New York
Slide 2: Welcoming Remarks
Welcoming Remarks Chris R. Burritt Chairman of the Board
Slide 3: Agenda – 2018 Annual Meeting of Shareholders
Agenda – 2018 Annual Meeting of Shareholders Introduction of Directors, Management and Guests Conduct of the Meeting Notice and proxy Report of Inspector of Elections Meeting Proposals Call for Vote Management Presentation and Q & A to Follow Results of Shareholder Vote Meeting Adjourned
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
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 Calvin L. Corriders Regional President, S
Slide 6: Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm Jamie L. Keiser Bonadio & Company, LLP
Slide 7: Business of 2018 Annual Meeting of Shareholders
Business of 2018 Annual Meeting of Shareholders The Election of Three Directors John P. Funiciello Thomas W. Schneider Lloyd “Buddy” Stemple The ratification of the appointment of Bonadio & Co., LLP as the Bank’s independent registered public accounting firm for the year ending 12/31/18
Slide 8: Executive Management Presentation
Executive Management Presentation This discussion may contain the words or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, ”project” or similar expressions that are intended to identify “forward-looking statements” within the meaning of the Private Sec
Slide 9: Executive Management Presentation
Executive Management Presentation Thomas W. Schneider, President and Chief Executive Officer James A. Dowd, CPA, Executive Vice President, Chief Operating Officer & Chief Financial Officer Ronald Tascarella, Executive Vice President and Chief Credit Officer
Slide 10: Financial Statements Highlights – Income Statement
Financial Statements Highlights ($ in thousands) Income Statement December 2017 December 2016 $ Change % Change Net Income $3,423 $3,298 $125 3.8% Net Interest Income 23,123 20,289 2,834 14.0% Provision for Loan Losses 1,769 953 816 85.6% Core noninterest income* 3,653 3,629 24 0.6% Noninterest Expe
Slide 11: Financial Statement Highlights – Statement of Condition
Financial Statement Highlights ($in thousands) Statement of Condition December 2017 December 2016 $ Change % Change Total Assets $881,257 $749,034 $132,223 17.7% Total Loans 580,831 492,147 88,684 18.0% Total Investments 237,334 196,600 40,734 20.7% Total Deposits 723,603 610,983 (1) 112,620 18.4% S
Slide 12: Year Loan and Deposit Growth
5 -Year Loan and Deposit Growth (in millions) *Deposits include one way borrowings through Promontory Network
Slide 13: Loan Portfolio Diversification
Loan Portfolio Diversification
Slide 14: Stable Asset Quality Metrics
Stable Asset Quality Metrics Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Non-performing Loans to Total Loans 1.57% 1.61% 1.24% 0.98% 0.84% Non-performing Assets to Total Assets 1.18% 1.16% 0.94% 0.72% 0.61% Allowance for Loan Losses to Total Loans 1.48% 1.38% 1.33% 1.27% 1.23% Allowance for Loan Lo
Slide 15: Deposit Portfolio Composition
Deposit Portfolio Composition December 31, 2007 $251.1 Million December 31, 2017 $723.6 Million Includes one way borrowings through Promontory Network
Slide 16: Treasury Curve
2 and\L0 YeartreasuryCurve 3.60% 3.10% 2.60% Te cen es 2.10% 1.60% 1.10% 0.60% 40% 2013 2014 2015 2016 2017 —+-2 Year 0.39% 0.67% 1.06% 1.20% 1.89% #10 Year 3.00% 2.17% 2.27% 2.45% 2.40%
Slide 17: 4.00% 3.50% 3.00% 2.50% 3.34% 340% 34% 2013 2014 2015 2016 017 PPathfinder
4.00% 3.50% 3.00% 2.50% 3.34% 340% 34% 2013 2014 2015 2016 2017 PPathfinder
Slide 18: Rate/Volume Analysis for Year Ended December 31, 2017
Rate/Volume Analysis for Year Ended December 31, 2017 (in thousands) Volume Rate Total Increase Interest Income: Loans $4,073 $(384) $3,689 Investments 698 841 1,539 Interest-earning Deposits 25 67 92 Total Interest Income 4,796 524 5,320 Interest Expense: Deposits 588 875 1,463 Borrowings 369 654 1
Slide 19: 0.55% 0.50% 0.45% 0.40% 0.48% 2013 0.51% 0.48% 0.48% 2014 15 2016 2017 Pathfinder
0.55% 0.50% 0.45% 0.40% 0.48% 2013 0.51% 0.48% 0.48% 2014 2015 2016 2017 Pathfinder 19
Slide 20: Retulman fae
Retulman fae . 6.00% |5.86% 5.69% 5.50% 5.35% 5.00% 4.08% 4.00% 2013 2014 2015 2016 2017 Pathfinder 20
Slide 21: Earnings Per Share (Diluted) Growth
Earnings Per Share (Diluted) Growth
Slide 22: $16.0 $14.0 $12.0 - $10.0 2013 2014 2015 2016 2017 Pathfinder
$16.0 $14.0 $12.0 - $10.0 2013 2014 2015 2016 2017 Pathfinder
Slide 23: Revenue and Operating Expense Trends
Revenue and Operating Expense Trends (in thousands)
Slide 24: Stock Price at end of Period
Stock Price at end of Period *adjusted to reflect the 1.6472 exchange ratio used in the conversion for 2014 and prior years 17.1%
Slide 25: 2018 1st Quarter Summary Financial Performance
2018 1st Quarter Summary Financial Performance ($ In thousands, except per share data) March 2018 March 2017 Incr.(Decr.) Total Interest Income $8,209 $6,870 $1,339 Total Interest Expense 1,816 1,373 443 Net Interest Income 6,393 5,497 896 Provision for Loan Losses 613 389 224 Total Noninterest Expe
Slide 26: 2018 1st Quarter Summary Financial Condition
2018 1st Quarter Summary Financial Condition ($ In Thousands) March 2018 December 2017 Incr.(Decr.) Total Loans $608,049 $580,831 $27,218 Total Investment Securities 223,729 237,334 (14,055) Total Assets 891,137 881,257 9,880 Total Deposits 743,805 723,603 20,202 Shareholders’ Equity 62,075 61,811 2
Slide 27: Executive Management Presentation
Executive Management Presentation Thomas W. Schneider, President & Chief Executive Officer
Slide 28: Local. Community. Trust
Local. Community. Trust PURPOSE VISION STRATEGY
Slide 29: Growth Strategy
Growth Strategy Organic Growth As a strategy to create return on capital vs. Aquisitive Growth
Slide 30: Positioned for Continued Growth
Positioned for Continued Growth Strong Competitive Market Position Plaza Office 291 State Route 104 East, Oswego Downtown Drive-Thru 34 East Bridge Street, Oswego Mexico Office 3361 Main Street, Mexico Fulton Office 5 West First Street South, Fulton Lacona Office 1897 Harwood Drive, Lacona Central S
Slide 31: Branch Growth Strategy 2017 – 2019
Branch Growth Strategy 2017 – 2019 Branch Additions Utica Loan Production Office Route 31 Town of Clay Southwest Corrider – Syracuse Applying for Banking Development District
Slide 32: Positioned for Continued Growth – Market Share
Positioned for Continued Growth Strong Competitive Market Position in Onondaga and Oswego Counties 6-30-17 Rank Institution (ST) Total Deposits ($000) Market Share (%) 1 Manufacturers and Traders Trust Company $3,112,538 25.95% 2 KeyBank National Association 2,312,490 19.28% 3 Bank of America, Natio
Slide 33: Building to $1 Billion
Building to $1 Billion Expectations Regulatory Shareholders (owner) Corporate and Social Responsibility Opportunities Market Presence Valuation
Slide 34: Building to $1 Billion – Capacity
Building to $1 Billion Capacity People Systems Infrastructure Succession – Career Pathing Building Leadership
Slide 35: Building to $1 Billion – Capital, Our People
Building to $1 Billion CAPITAL OUR PEOPLE
Slide 36: Brand/Image/Message
Brand/Image/Message Engagement - Alignment Business Government Academic Economic Inclusion – Diversity Live Your Message Local. Community. Trust. We strive to be the Local Bank our Community Trusts
Slide 37: Strategy
Strategy Strategy Build Capacity Build Deposit Gathering Build People Build Systems Grow Business Deposits Treasury Management Business Deposit Specialist Location Capital Management
Slide 38: Questions and Discussion
Questions and Discussion Pathfinder 38
Slide 39: Executive Management Presentation
Executive Management Presentation Ronald Tascarella, Executive Vice President and Chief Credit Officer
Slide 40: Voting Results
Voting Results Chris R. Burritt - Chairman Inspector of Elections Report – Edward Mervine
Slide 41: Meeting Adjourned – Thank You for Attending
2018 Annual Meeting of Shareholders Meeting Adjourned Thank You for Attending 2018 Annual Meeting of Shareholders