Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (May 2016)
45 slides from Pathfinder Bancorp's shareholder meeting presentation, May 4, 2016
Slide 1: Solidly Positioned to Continue Our Operating Momentum: 2016 Annual Meeting of Shareholders
Solidly Positioned to Continue Our Operating Momentum 2016 Annual Meeting of Shareholders 10 a.m., May 4, 2016 Alexandria’s at the Lake Ontario Conference and Events Center Oswego, New York
Slide 2: Welcoming Remarks
* Solidly Positioned to Continue Our Operating Momentum Welcoming Remarks Chris R. BurrittChairman of the Board
Slide 3: Agenda – 2016 Annual Meeting of Shareholders
* Solidly Positioned to Continue Our Operating Momentum Agenda – 2016 Annual Meeting of Shareholders Introduction of Directors, Management and Guests Present Meeting Notice and Proxy Review Rules of Conduct Report of Inspector of Elections Establish That a Quorum Exists Review Annual Meeting Proposa
Slide 4: Pathfinder Board of Directors
* Solidly Positioned to Continue Our Operating Momentum Pathfinder Board of Directors Director Since David A. Ayoub 2012 William A. Barclay 2011 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 20
Slide 5: Pathfinder Executive Officers
* Solidly Positioned to Continue Our Operating Momentum Pathfinder Executive Officers Current Position Since Thomas W. Schneider President & CEO 2000 James A. Dowd, CPA Executive Vice President & Chief Financial Officer 2000 Ronald Tascarella Executive Vice President & Chief Credit Officer 2006 Meli
Slide 6: Independent Registered Public Accounting Firm
* Solidly Positioned to Continue Our Operating Momentum Independent Registered Public Accounting Firm Jamie L. KeiserBonadio & Company, LLP
Slide 7: 2016 Annual Meeting Rules of Conduct
* Solidly Positioned to Continue Our Operating Momentum Please comply with distributed rules of conductPlease refrain from using electronic devicesOnly proposals and nominations submitted in accordance with the Company’s Bylaws will be considered Only shareholders of record or their proxy may addres
Slide 8: Business of 2016 Annual Meeting of Shareholders
* Solidly Positioned to Continue Our Operating Momentum Business of 2016 Annual Meeting of Shareholders The Election of Four Directors David A. AyoubAdam C. GagasJohn F. Sharkey, IIIMelanie Littlejohn Approval of the 2016 Pathfinder Bancorp, Inc. Equity Incentive PlanRatification of the appointment
Slide 9: Executive Management Presentation
* Solidly Positioned to Continue Our Operating Momentum Executive Management Presentation Thomas W. SchneiderPresident & Chief Executive Officer
Slide 10: Executive Management Presentation: Forward-Looking Statements
* Solidly Positioned to Continue Our Operating Momentum 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 expression are intended to identify “forward-looking
Slide 11: Positioned to Continue Our Momentum
* Solidly Positioned to Continue Our Operating Momentum Positioned to Continue Our Momentum Sustainable, Consistent Growth Commitment to Business Model Receptive Market
Slide 12: Continued Strong Performance in 2015
* Solidly Positioned to Continue Our Operating Momentum Continued Strong Performance in 2015 Record Net Income of $2.8 million Total Revenue Growth of 10%, to $22.9 Million Significant Growth of Syracuse Business Banking Presence FitzGibbons Agency Revenue Increased 25% Total Loans at year end $430.
Slide 13: Continued Strong Performance in 2015: Net Income and Revenue
* Solidly Positioned to Continue Our Operating Momentum Top line revenue increase driven by loan growthSmall business lendingResidential real estateLimited Margin Compression Despite Continued Headwinds Continued Strong Performance in 2015 Record Net Income of $2.8 Million Net Interest Income Growth
Slide 14: Yield Curve Changes
* Solidly Positioned to Continue Our Operating Momentum Yield Curve Changes
Slide 15: Subordinated Debt Offering of $10 Million
* Solidly Positioned to Continue Our Operating Momentum Enhanced liquidityAllowed for redemption of SBLF preferred stock Provided additional Tier 2 capital for continued growth Continued Strong Performance in 2015 Subordinated Debt Offering of $10 Million
Slide 16: FitzGibbons Agency Growth Continued in 2015
* Solidly Positioned to Continue Our Operating Momentum Affiliated with the FitzGibbons Agency, LLC in 2013 to Diversify RevenueAcquired Huntington Agency in 2015 – Expanded Presence in Onondaga County Revenue has Increased by $231,896, or by 49% since 2013 Continued Strong Performance in 2015 FitzG
Slide 17: FitzGibbons Agency Revenue Increased 25.4%
* Solidly Positioned to Continue Our Operating Momentum Continued Strong Performance in 2015 FitzGibbons Agency Revenue Increased 25.4%
Slide 18: Total Loans at 2015 Year End $430.4 Million, 11.1% Growth
* Solidly Positioned to Continue Our Operating Momentum Favorable commercial real estate and development trendsContinued strong commercial loan demand8% increase in residential real estate portfolioElevated Awareness of Pathfinder in Onondaga County Continued Strong Performance in 2015 Total Loans a
Slide 19: Positioned for Continued Growth
* Solidly Positioned to Continue Our Operating Momentum Abundant CapitalLoan Portfolio DiversificationRevenue DiversificationStrong Competitive Market PositionIncreased brand awareness – SyracuseFocus on retail and business core deposit generation Positioned for Continued Growth
Slide 20: Positioned for Growth: Abundant Capital
* Solidly Positioned to Continue Our Operating Momentum Positioned for Growth Abundant Capital 12/31/15 Well-Capitalized (Regulatory Definition) Total Capital /Risk-weighted Assets 16.22% >10.00% Tier 1 Capital /Total Assets 10.0% >5.00% Goal: Support growth and expansion activities, while maintaini
Slide 21: Loan Portfolio Diversification
* Solidly Positioned to Continue Our Operating Momentum Positioned for Continued Growth Loan Portfolio Diversification Loan Composition December 31, 2005 December 31, 2015 Residential Real Estate Commercial Real Estate Commercial Loans Municipal Loans Consumer Loans
Slide 22: Core Revenue Growth
* Solidly Positioned to Continue Our Operating Momentum Positioned for Continued Growth Core Revenue Growth (In Thousands) 5-Year CAGR 6.8%
Slide 23: Strong Competitive Market Position: Branch Offices
* Solidly Positioned to Continue Our Operating Momentum Positioned for Continued Growth Strong Competitive Market Position Plaza OfficeState Route 104 East, Oswego Downtown Drive-Thru34 East Bridge Street, Oswego Mexico OfficeNorman & Main Streets, Mexico Fulton Office5 West First Street South, Fult
Slide 24: Strong Competitive Market Position in Onondaga and Oswego Counties
* Solidly Positioned to Continue Our Operating Momentum Positioned for Continued Growth Strong Competitive Market Position – in Onondaga and Oswego Counties Source: FDIC Deposit Market Share Report at 6-30-15 2015 Rank Institution (ST) Total Deposits ($000) Market Share (%) 1 Manufacturers and Trade
Slide 25: Executive Management Presentation: James A. Dowd
* Solidly Positioned to Continue Our Operating Momentum Executive Management Presentation James A. Dowd, CPAExecutive Vice President & Chief Financial Officer
Slide 26: 5-Year Loan Growth
* Solidly Positioned to Continue Our Operating Momentum 5-Year Loan Growth (In Millions) 5-Year CAGR 8.6%
Slide 27: 5-Year Deposit Growth
* Solidly Positioned to Continue Our Operating Momentum 5-Year Deposit Growth Includes Brokered Deposits(In Millions) CAGR 8.5%
Slide 28: Deposit Composition
* Solidly Positioned to Continue Our Operating Momentum Deposit Composition December 31, 2005$236.7 Million December 31, 2015$490.3 Million Retail Commercial Municipal Includes Brokered Deposits
Slide 29: Rate / Volume Analysis for Year Ended December 31, 2015
* Solidly Positioned to Continue Our Operating Momentum Rate / Volume Analysis for Year Ended December 31, 2015 Volume Rate Total Incr / (Decr) Interest Income: Loans $ 1,951 $ (429) $ 1,522 Investments 205 (9) 196 Interest-earning Deposits 10 (4) 7 Total Interest Income 2,166 (442) 1,725 Interest E
Slide 30: Net Interest Margin
* Solidly Positioned to Continue Our Operating Momentum Net Interest Margin
Slide 31: Revenue and Operating Expense Trends
* Solidly Positioned to Continue Our Operating Momentum Revenue and Operating Expense Trends (In Thousands)
Slide 32: Stable Asset Quality Metrics
* Solidly Positioned to Continue Our Operating Momentum Stable Asset Quality Metrics Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Non-performing Loans to Total Loans 1.55% 1.66% 1.57% 1.61% 1.24% Non-performing Assets to Total Assets 1.19% 1.25% 1.18% 1.16% .94% Allowance for Loan Losses to Total Lo
Slide 33: Net Income and EPS (Diluted) Growth
* Solidly Positioned to Continue Our Operating Momentum Net Income and EPS (Diluted) Growth (In Thousands) Net Income CAGR 10.2%
Slide 34: Return on Average Assets
* Solidly Positioned to Continue Our Operating Momentum Return on Average Assets
Slide 35: Return on Average Common Equity
* Solidly Positioned to Continue Our Operating Momentum Return on Average Common Equity
Slide 36: Total Return Performance
* Solidly Positioned to Continue Our Operating Momentum Total Return Performance Index Value
Slide 37: 2016 1st Quarter Performance Summary
* Solidly Positioned to Continue Our Operating Momentum 2016 1st Quarter Performance Summary Financial Performance *as compared to 1st Quarter 2015 results (In Thousands) (In thousands) 2016 *Change Total Interest Income $5,712 12.3% Total Interest Expense 872 49.6% Net Interest Income 4,840 7.5% Pr
Slide 38: 2016 1st Quarter Condition Summary
* Solidly Positioned to Continue Our Operating Momentum 2016 1st Quarter Condition Summary Financial Condition (In Thousands) March 2016 December 2015 Incr.(Decr.) Total Loans $434,179 $430,438 $3,741 Total Investment Securities 169,752 143,239 26,513 Total Assets 665,326 623,254 42,072 Total Deposi
Slide 39: Pathfinder Stock Ownership Summary
* Solidly Positioned to Continue Our Operating Momentum Significant ownership stake by management and directorsESOP provides additional performance incentive to employeesInstitutional holdings expected to growLarge majority of shares still held by customers and retail investors Pathfinder Stock Owne
Slide 40: Executive Management Presentation: Thomas W. Schneider
* Solidly Positioned to Continue Our Operating Momentum Executive Management Presentation Thomas W. SchneiderPresident & Chief Executive Officer
Slide 41: Strategic Growth & Profitability Initiatives
* Solidly Positioned to Continue Our Operating Momentum Strategic capital managementMarket expansionOrganic and balanced growth in loans and depositsInvestment in staffingContinued revenue diversificationPositioned as true local alternative to M&A market disruption Strategic Growth & Profitability I
Slide 42: Investment Rationale
* Solidly Positioned to Continue Our Operating Momentum Abundant capital provides flexibility to pursue growth opportunitiesDominant deposit share in primary market – Oswego CountySignificant opportunity for growth in metropolitan Syracuse Stable asset quality metrics reflective of approach to under
Slide 43: Questions and Discussion
* Solidly Positioned to Continue Our Operating Momentum Questions and Discussion
Slide 44: Voting Results
* Solidly Positioned to Continue Our Operating Momentum Voting ResultsChris R. Burritt – ChairmanInspector of Elections Report – Edward Mervine
Slide 45: Meeting Adjourned – Thank You for Attending
Solidly Positioned to Continue Our Operating Momentum 2015 Annual Meeting of Shareholders 10 a.m., May 4, 2016 Meeting AdjournedThank You for Attending