Juniata Valley Financial Corp. · OTC:JUVF
Juniata Valley Financial — Investor Presentation (May 2009)
48 slides from Juniata Valley Financial's investor presentation, May 21, 2009
Slide 1: Juniata Valley Financial Corp.
Juniata Valley Financial Corp.
Slide 2: Stability and Strength Through Superior Performance
Juniata Valley Financial Corp. Stability and Strength Through Superior Performance President and CEO – Francis J. Evanitsky
Slide 3: Our Message is Simple and Clear
Our Message is Simple and Clear No neon lights. No loss-leader promotions. Competent and caring professionals. Broad array of products and services suited to the needs of our customers. Carefully designed to be offered with pride. We listen, then act. This has been our way for 141 years.
Slide 4: Results
Results Strong , stable financial condition. Performance consistently exceeding peers. Capital Strength - Risk-based capital more than twice regulatory requirements for “well-capitalized” category. Liquidity more than double policy minimums. No need for “help” from our government. Profitability amon
Slide 5: 2008 Improvements over 2007
2008 Improvements over 2007 Increase in net income: 5.3% Increase in fully diluted earnings per share: 7.4% Increase in return on average equity: 3.1% Increase in return on average assets: 4.7% Increase in fully tax-equivalent net interest margin: 4.1% Reduction in noninterest expense: 1.6%
Slide 6: Strong Capacity to Pay Dividends
Strong Capacity to Pay Dividends While many financial services companies have decreased or eliminated dividends to shareholders because of capital and liquidity concerns, we increased our regular dividend again in 2008. On April 21, our Board of Directors has declared a regular quarterly dividend in
Slide 7: Annual Percentage Increase
Annual Percentage Increase Historical Regular Dividend Activity 2001 5.3% 2002 10.0% 2003 13.6% 2004 14.0% 2005 7.0% 2006 8.2% 2007 6.1% 2008 5.7%
Slide 8: Juniata Valley Stock Trades
Juniata Valley Stock Trades In spite of performance, stock has been trading at lower levels than in the past. General disfavor of financial institutions has affected the perceived value of our stock, but not to the same degree as our peers. Have withstood negative industry trends better than many ot
Slide 9: Comparison to Local Peers
Comparison to Local Peers Stock Value Shareholder Return
Slide 10: Stockholder Total Return – Year
Stockholder Total Return – 5 Year Assumptions Investment made on 12/31/2003 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 11: Juniata Valley vs. Composite of Selected Peers and National Index
Juniata Valley Vs. Composite of Selected Peers and National Index
Slide 12: Total Return Performance – Year Initial Investment 12/31/03 to 12/31/08
Total Return Performance – 5 Year Initial Investment 12/31/03 to 12/31/08
Slide 13: Total Return in Shortened Investment Period
Total Return in Shortened Investment Period
Slide 14: Independent Performance Analysis
Independent Performance Analysis Pennsylvania Bank Performance Report 2008 Analysis by FMC (Financial Management Consulting Group) from Kentucky. Ranks 143 banks in Pennsylvania on all major performance components. Juniata Valley Bank ranks 6 th in the state for overall performance in 2008.
Slide 15: Our Record / Our People
Our Record Speaks for itself. Our People Dedicated to our success. Team of experienced senior officers. Backed up by devoted middle managers. Supported by competent staff. Oversight by seasoned board of directors.
Slide 16: This N' That in Juniata County
Tus N’ THAT IN JuNtata ‘County a a ‘apn spec eco) ats Sonam a ease
Slide 17: Firmly planted in Central Pennsylvania
Firmly planted in Central Pennsylvania
Slide 18: Rural Central Pennsylvania
Rural Central Pennsylvania Serving the Juniata Valley
Slide 19: Financial Performance
Financial Performance Presented by JoAnn McMinn, Chief Financial Officer
Slide 20: Juniata Valley Financial Corp.
2008 2007 2006 Juniata Valley Financial Corp. Net interest income $16,173,000 $15,663,000 $14,552,000 Loan loss provision (421,000) (120,000) (54,000) Non-interest income 4,558,000 4,218,000 3,649,000 Security transactions (521,000) (19,000) 181,000 Non-interest expense (12,008,000) (12,209,000) (11
Slide 21: 2008 2007 Change
2008 2007 Change Juniata Valley Financial Corp. ROAA 1.34% 1.28% 4.7% ROAE 11.76% 11.41% 3.1% Yield on Earning Assets 6.48% 6.88% (5.8)% Cost of Funding 2.33% 2.85% (18.2)% Net Interest Margin (tax equivalent) 4.34% 4.17% 4.1% Non-interest income /AA 1.06% 0.99% 7.1% Non-interest expense/AA 2.80% 2.
Slide 22: Key Factors Affecting 2008 Results
Key Factors Affecting 2008 Results Interest rate environment – an increase in the net interest margin during swiftly changing rate environment Loan growth - Increased $17 million, or 5.7% from year-end 2007 at year-end 2008 Allowance for Loan Loss adequacy Changes in depositor preferences - Shift fr
Slide 23: Comparison to Local Peers: Financial Performance
Comparison to Local Peers Financial Performance
Slide 24: Corporation Assets at 12/31/08 Principal Bank
Corporation Assets at 12/31/08 (in millions) Principal Bank Local Peer Group Mid Penn Bancorp $572 Mid Penn Bank Kish Bancorp $473 Kish Bank First Community Financial Corporation $326 FNB Mifflintown Mifflinburg Bancorp, Inc $275 Mifflinburg Bank & Trust Orrstown Financial Services $1,052 Orrstown B
Slide 25: For the Year 2008
For the Year 2008 Corporation ROA ROE Net Interest Margin Non- Interest Income to Average Assets Non- Interest Expense to Average Assets Mid Penn 0.67% 8.83% 3.50% 0.68% 2.74% Kish 0.84% 12.75% 3.37% 0.81% 2.73% First Community 0.73% 10.52% 3.20% 0.72% 2.50% Mifflinburg 1.15 % 10.84% 3.62% 0.60% 2.3
Slide 26: 2008 Key Performance Ratio Comparisons to Local Peer Group
2008 Key Performance Ratio Comparisons to Local Peer Group Return on Average Assets Return on Average Equity
Slide 27: 2008 Key Performance Ratio Comparisons to Local Peer Group
2008 Key Performance Ratio Comparisons to Local Peer Group Net Interest Margin Non-Interest Income / Average Assets Non-Interest Expense/ Average Assets
Slide 28: 2008 Key Performance Ratio Comparisons to Local Peer Group
2008 Key Performance Ratio Comparisons to Local Peer Group Non-Performing Loans / Total Loans Net Charge-Offs to Average Loans Loan Loss Reserve / Total Loans
Slide 29: 2008 Capital Ratio Comparisons to Local Peer Group
2008 Capital Ratio Comparisons to Local Peer Group Risk-Based Capital Ratio (8% Minimum) Tier 1 Risk Based Capital Ratio (4% Minimum) Leverage Ratio (4% Minimum)
Slide 30: 2009 – Moving Ahead
2009– Moving Ahead Facing challenges
Slide 31: Q1 2009 Change from Q1 2008
Q1 2009 Change from Q1 2008 Q1 2009 vs. Q1 2008 Results Net Income $1,410,000 0.6% Increase Earnings per Share $0.32 0.00% Increase Total Assets (since year end) $429,542,000 0.3% Increase Net Interest Income $4,017,000 3.5% Increase Net Interest Margin 4.35% 2.4% Increase – 10 bp Non-Interest Incom
Slide 32: Juniata Valley Financial Corp. Strategic Plan
Juniata Valley Financial Corp. Strategic Plan Presented by Marcie Barber, Chief Operating Officer
Slide 33: Juniata Valley Bank Strategy Map – Prioritized
Juniata Valley Bank Strategy Map – Prioritized
Slide 34: Create Shareholder Value Through Total Return
Create Shareholder Value Through Total Return Dividends Financial Performance Appreciation Market Dynamics Industry Perception Image and Reputation
Slide 35: Financial Performance
Financial Performance Manage the Margin – Buy Low – Sell High Trust - Deposit fee income – Alternative Investments Protect and Share Responsibly Controllable - And not….. Financial Performance Balance Sheet Mix & Margin Grow Non-interest Income Capital Management Operating Expense Efficiency
Slide 36: Developed Workforce
Developed Workforce Developed Workforce Training & Development Recruit & Retain The Right People Organizational Structure Pay for Performance Loan Training Compliance Training Changing Roles Community Office Incentive program
Slide 37: Credit – Compliance - Security
Credit – Compliance - Security
Slide 38: Asset Growth and Expansion
Asset Growth and Expansion Asset Growth and Expansion Line of Business Integration Brand & Marketing to Customers, Community, and Shareholders Acquisition and Geographic Expansion Targeted Segments . Build the Team – Integrate Lines of Business Stable and strong Compatible markets and culture Bloom
Slide 39: Integration of Business Lines
Integration of Business Lines
Slide 40: Customer Satisfaction
Customer Satisfaction Customer Satisfaction Easy to Do Business With Product Design & Pricing Service Quality Up to Date Channel Delivery Convenience Progressive Internet and Bill pay services Remote Capture One size does not fit all
Slide 41: An Enduring Strategy
An Enduring Strategy Year Plan Grow the Earnings Grow the People Grow the Bank – Profitably through new markets and business integration Grow the Base – Serve customers –Enhance Image Maximize Shareholder Value
Slide 42: Juniata Valley Financial Corp. In Summary
Juniata Valley Financial Corp. In Summary Presented by Fran Evanitsky, CEO
Slide 43: Outlook for 2009
Outlook for 2009 Out of our control. FDIC deposit insurance assessments. Potential for further declines in fair values of equities investments leading to other-than- temporary impairment charges. Development of financial problems among borrowers that may lead to loan defaults. Juniata Valley Financi
Slide 44: Outlook for 2009
Outlook for 2009 In our control. Maintaining traditional sound business practices. Supplying the members of our community with the financial services they need. Adhering to our basic philosophies. Juniata Valley Financial Corp.
Slide 45: Our long-standing philosophies have the greatest impact
Our long-standing philosophies have the greatest impact during economic conditions like those we now face: Juniata Valley Financial Corp. Higher value in strong net interest margin than in high growth rates. Solid, repeatable non-interest revenues result from service-focused strategies. Continued co
Slide 46: Long-Term Returns on Capital and Shareholder Value
An inheritance of 5 shares of Lewistown Trust Co. stock in 1922, with a basis of $500, has grown to 5,148 shares, valued at $85,000 today. Another inheritance of 6,388 shares of Juniata Valley stock was valued at $243,000 in 1993. 1,500 of those shares were sold in 1994 for $58,500. Through stock di
Slide 47: We're Strong, We're Healthy, We're Here for You
We’re Strong, We’re Healthy, We’re Here for You Firmly planted in Central Pennsylvania – 141 Years
Slide 48: Slide 48
Juniata Valley Financial — Investor Presentation (May 2009) on 6ix