Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Shareholder Meeting (May 2012)
56 slides from Juniata Valley Financial's shareholder meeting presentation, May 21, 2012
Slide 1: Annual Shareholders Meeting 2012
Annual Shareholders Meeting 2012
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 informatio
Slide 3: Chairman of the Board of Directors Philip E. Gingerich, Jr.
Chairman of the Board of Directors Philip E. Gingerich, Jr.
Slide 4: Building Shareholder Value In the New Banking World
Building Shareholder Value In the New Banking World Chief Executive Officer Marcie Barber
Slide 5: Juniata Valley Bank Strategy Map - Create Shareholder Value Through Total Return
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Organizational Structure Performance
Slide 6: Create Shareholder Value Through Total Return?
Create Shareholder Value Through Total Return ?
Slide 7: 'Shareholder Value' definition
'Shareholder Value' - The value delivered to shareholders because of management's ability to grow earnings, dividends and share price.
Slide 8: Consistency and Strength In: Financial Performance, Balance Sheet, Asset Quality, Capital
Consistency and Strength In: Financial Performance Balance Sheet Stability Asset Quality Capital Stockholder Value Chief Financial Officer JoAnn McMinn
Slide 9: Strength in Financial Performance
Strength in Financial Performance
Slide 10: Key Financial Ratios
Juniata Valley Financial Corp. 2011 2010 Change Return on Average Assets 1.05% 1.12% (7) basis pts. Return on Average Equity 9.29% 9.70% (41) basis pts Net Interest Margin (fully tax equivalent) 3.96% 4.24% (25) basis pts Loan Loss Provision as % of Average Assets 0.08% 0.17% (9) basis pts Non-Inter
Slide 11: Peer Groups Selected For Performance Comparisons
Peer Groups Selected For Performance Comparisons Most Direct Local Competitors "Selected Local Peers" FMFP - First Community Financial Corp. KISB - Kish Bancorp MPB - Mid Penn Bancorp MIFF - Mifflinburg B&T NUBC - Northumberland Bancorp ORRF - Orrstown Financial Services FNB - FNB of Pennsylvania Gr
Slide 12: Five Year Performance Comparison: Return on Average Assets
Five Year Performance Comparison Return on Average Assets
Slide 13: Five Year Performance Comparison: Return on Average Equity
Five Year Performance Comparison Return on Average Equity
Slide 14: Five Year Performance Comparison: Net Interest Margin
Five Year Performance Comparison Net Interest Margin
Slide 15: Five Year Performance Comparison: Loan Loss Provision
Five Year Performance Comparison Loan Loss Provision as % of Average Assets
Slide 16: Five Year Performance Comparison: Non-Interest Income
Five Year Performance Comparison Non-Interest Income as % Average Assets (excludes security transaction gains/losses and impairment charges)
Slide 17: Five Year Performance Comparison: Non-Interest Expense
Five Year Performance Comparison Non-Interest Expense as % Average Assets
Slide 18: Quarterly Net Income Results
Quarterly Net Income Results
Slide 19: 2012 Q1 Performance Highlights
2012 Q1 Performance Highlights (in thousands) Q1 2012 Q1 2011 $ Change % Change Average Assets $447,140 $436,776 $10,364 2.4% Average Deposits $386,765 $377,859 $8,906 2.4% Average Loans $287,859 $296,257 $(8,398) (2.8)% Average Investments $119,706 $101,253 $18,453 18.2% Net interest income $3,739
Slide 20: Performance Key Ratio Highlights
Performance Key Ratio Highlights Q1 2012 Q1 2011 $ Change % Change Return on Assets (ROA) 0.37% 1.13% (76) basis pts (67.3)% Return on Equity (ROE) 3.36% 9.96% (660) basis pts (66.3)% Earnings per Share $0.10 $0.29 $(0.19) (65.5)% Net Interest Margin 3.84% 4.12% (28) basis pts (6.8)%
Slide 21: Press Release - April 27, 2012
Press Release - April 27, 2012 "While the provision for loan losses was significantly higher than in the past, it is important to note that the increase resulted primarily from specific provisions relating to two loan relationships."
Slide 22: Press Release - April 27, 2012
Press Release - April 27, 2012 "We do not believe that this adjustment to the allowance for loan losses is indicative of the condition of the credit quality of the loan portfolio as a whole."
Slide 23: Press Release - April 27, 2012
Press Release - April 27, 2012 "We believe that the factors which negatively impacted earnings in the first quarter are unlikely to recur and we are optimistic about prospects for the remainder of the year and beyond."
Slide 24: Strength in: Financial Condition, Asset Quality
Strength in: Financial Condition Asset Quality
Slide 25: Balance Sheet Elements (First Quarter 2012 versus 4 Years Prior)
Average Deposits Average Loans Average Assets Balance Sheet Elements (First Quarter 2012 versus 4 Years Prior)
Slide 26: Credit Quality Statistics
Credit Quality Statistics Like most banks, Juniata Valley has been challenged with increased non-performing assets. Definition of Non-Performing Asset Loan that has been placed in non-accrual status. Loan that is accruing but is more than 90 days delinquent in scheduled payments. Performing loan tha
Slide 27: Non-Performing Assets as % of Assets
Five Year Performance Comparison Non-Performing Assets as % of Assets (includes Non-Accrual, OREO and 90 Day Delinquencies still Accruing)
Slide 28: Non-Performing Assets as % of Equity
Five Year Performance Comparison Non-Performing Assets as % of Equity
Slide 29: Net Charge-Offs to Average Loans
Five Year Performance Comparison Net Charge-Offs to Average Loans
Slide 30: Net Charge-Offs to Average Reserves
Five Year Performance Comparison Net Charge-Offs to Average Reserves
Slide 31: Strength in Capital
Strength in Capital (ET Juniata Valley Financial Corp.
Slide 32: Risk Based Capital Ratio
Five Year Performance Comparison Risk Based Capital Ratio (well capitalized minimum = 10%)
Slide 33: Historical Regular Dividend Activity
Historical Regular Dividend Activity Annual Percentage Increase Annual Percentage Increase 2002 10.0% 2003 13.6% 2004 14.0% 2005 7.0% 2006 8.2% 2007 6.1% 2008 5.7% 2009 5.4% 2010 5.1% 2011 4.9%
Slide 34: Dividend Yield - Year Comparison
Dividend Yield - 5 Year Comparison
Slide 35: Stockholder Total Return
Stockholder Total Return - 5 Year Assumptions Investment made on 12/31/2006 Selected Local Peers FMFP - First Community Financial Corp. KISB - Kish Bancorp MPB - Mid Penn Bancorp MIFF - Mifflinburg B&T NUBC - Northumberland Bancorp ORRF - Orrstown Financial Services FNB - FNB of Pennsylvania Definit
Slide 36: Stock - Five Year Total Return Performance
Source: SNL Financial Source: SNL Financial 12/31/2006 - 12/31/2012 Stock - Five Year Total Return Performance
Slide 37: Stock - Five Year Total Return Performance
12/31/2006 - 12/31/2012 Stock - Five Year Total Return Performance Performance Performance Performance Source: SNL Financial
Slide 38: Stock - Five Year Total Return Performance
12/31/2006 - 12/31/2012 Stock - Five Year Total Return Performance Performance Performance Performance Source: SNL Financial
Slide 39: Banking in a New World
Banking in a New World Chief Executive Officer Marcie Barber
Slide 40: Juniata Valley Bank Strategy Map - Financial Performance
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Performance Compensation Acquisition
Slide 41: Financial Performance Challenges
Higher Non- Performing Loans Lower Loans/Mix of Earning Assets. Non-Interest Income Challenges Regulatory controls Economy related Money Money Money Money ^ Non Interest Expenses Financial Performance
Slide 42: Non-Performing Assets as % of Assets
Five Year Performance Comparison Non-Performing Assets as % of Assets (includes Non-Accrual, OREO and 90 Day Delinquencies still Accruing)
Slide 43: Financial Performance Challenges
Higher Non- Performing Loans Lower Loans/Mix of Earning Assets. Non-Interest Income Challenges Regulatory controls Economy related Money Money Money Money ^ Non Interest Expenses Financial Performance
Slide 44: Risk Management
Compliance Risk Credit Risk Operational Risk Physical Security Fraud - Paper Cyber ID Theft Network Security Money and Time Time Money Money Money Money Money Money ^ MONEY Risk Management
Slide 45: Risk Based Capital Ratio
Five Year Performance Comparison Risk Based Capital Ratio (well capitalized minimum = 10%)
Slide 46: A New World? How Do We Create Shareholder Value?
A New World? How Do We Create Shareholder Value in a New Banking World? ^ Lower profitability ^ Slower Growth ^ Increased capital requirements
Slide 47: Juniata Valley Bank Strategy Map
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Organizational Structure Performance
Slide 48: Up to Date Delivery Channels
Mobile Banking Remote Deposit Capture Internet Banking Loans On Line On Line Statements POP Money Funds Transfer Up to Date Delivery Channels
Slide 49: Juniata Valley Bank Strategy Map
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Acquisition & Geographic Expansion Id
Slide 50: Juniata Valley Bank Strategy Map
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Organizational Structure Performance
Slide 51: Identify Brand and Market to Customers, Community & Shareholders
Identify Brand and Market to Customers, Community & Shareholders
Slide 52: Connected....... Committed and...
Mann Edge Terrace Connected....... Committed and...
Slide 53: lember FDIC
lember FDIC q. cme . wwwy jvbonline.com e*@
Slide 54: lember FDIC
lember FDIC coment is) www.jvbonline.com e*@
Slide 55: Juniata Valley Bank Strategy Map
Create Shareholder Value Through Total Return Financial Performance Human Element Asset Growth And Expansion Customer Experience Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Train and Empower Recruit , Retain & Energize The Right People Performance Compensation Acquisition
Slide 56: Opportunity in a New Banking World
Opportunit y in a New Banking World...... Strong Capital Credit Quality Conservative Growth Capable Committed
Juniata Valley Financial — Shareholder Meeting (May 2012) on 6ix