Pathfinder Bancorp, Inc. · NASDAQ:PBHC
Pathfinder Bancorp — Shareholder Meeting (May 2015)
44 slides from Pathfinder Bancorp's shareholder meeting presentation, May 6, 2015
Slide 1: 2015 Annual Meeting of Shareholders
Diversified Growth through Community Leadership 2015 Annual Meeting of Shareholders 10 a.m., May 6, 2015 Alexandria’s at the Lake Ontario Conference and Events Center Oswego, New York
Slide 2: Welcoming Remarks
Diversified Growth through Community Leadership * Welcoming Remarks Chris R. BurrittChairman of the Board
Slide 3: Agenda
* Diversified Growth through Community Leadership Agenda Call to Order–Chris Burritt, Chairman of the Meeting Introduction of President and Corporate Secretary Introduction of Officers, Directors and Director Nominees Introduction of Inspector of Election Presentation of Proposals Report to Sharehol
Slide 4: Board of Directors
* Diversified Growth through Community Leadership Board of Directors Director Since David A. Ayoub 2012 William A. Barclay 2011 John P. Funiciello 2011 Adam C. Gagas 2015 George P. Joyce 2000 Thomas W. Schneider, President & CEO 2001 John F. Sharkey, III 2015 Lloyd “Buddy” Stemple 2005 Chris R. Burr
Slide 5: Executive Officers
* Diversified Growth through Community Leadership Executive Officers Current Position Since Thomas W. Schneider President & CEO 2000 James A. Dowd, CPA Senior Vice President & Chief Financial Officer 2000 Melissa A. Miller Senior Vice President & Chief Operating Officer 2005 Edward A. Mervine, ESQ S
Slide 6: Independent Registered Public Accounting Firm
Diversified Growth through Community Leadership * Independent Registered Public Accounting Firm Jamie L. KeiserBonadio & Company
Slide 7: Business of 2015 Annual Meeting of Shareholders
* Diversified Growth through Community Leadership Business of 2015 Annual Meeting of Shareholders The Election of Three Directors John P. FunicielloThomas W. SchneiderLloyd “Buddy” Stemple An advisory vote on executive compensation (“Say-on-Pay”)An advisory vote on the frequency of future “Say-on-Pa
Slide 8: Executive Management Presentation
Diversified Growth through Community Leadership * Executive Management Presentation Thomas W. SchneiderPresident & Chief Executive Officer
Slide 9: Forward-Looking Statements
* Diversified Growth through Community Leadership 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 state
Slide 10: Historic Performance in 2014
* Diversified Growth through Community Leadership Historic Performance in 2014 Record Net Income of $2.7 million Raised $24.9 Million in New Capital – Second Step Stock Offering Opened New Business Banking Office in Downtown Syracuse FitzGibbons Agency Revenue Increased 19.2% Total Loans at 12/31/14
Slide 11: Historic Performance in 2014: Record Net Income
* Diversified Growth through Community Leadership Top line revenue growth through loan growthSmall business lendingCommercial real estateMaintained Net Interest Margin against compression headwinds Historic Performance in 2014 Record Net Income of $2.7 Million Net Interest Income Growth of $1.5 Mill
Slide 12: Raised $24.9 Million in New Capital – Second Step Offering
* Diversified Growth through Community Leadership Enhanced liquidity for common stockImmediately accretive to book value per shareProvides capital for continued growthEliminated a limited structure (MHC)Increased flexibility for mergers and acquisitions Historic Performance in 2014 Raised $24.9 Mill
Slide 13: Opened New Business Banking Office in Downtown Syracuse
* Diversified Growth through Community Leadership Concerted efforts since 2006Lead with lending activitiesAnticipate increased business deposit gathering capabilityKey personnel and Board Members with extensive Syracuse market experienceAlignment with centers of influenceCommunity interaction drivin
Slide 14: Opened New Business Banking Office in Downtown Syracuse
* Diversified Growth through Community Leadership Historic Performance in 2014 Opened New Business Banking Office in Downtown Syracuse
Slide 15: FitzGibbons Agency Partnership
* Diversified Growth through Community Leadership Partnered with the FitzGibbons Agency, LLC in 2013Goal of increasing non-interest income and providing deeper services to our customersCommercial Line expertiseOperating in an expanded footprint2015 Huntington Agency acquisition Historic Performance
Slide 16: FitzGibbons Agency Revenue Increased 19.2%
* Diversified Growth through Community Leadership Historic Performance in 2014 FitzGibbons Agency Revenue Increased 19.2%
Slide 17: Total Loans of $387.5 Million, 13.4% Growth
* Diversified Growth through Community Leadership Enhanced geographic footprintRe-urbanization trends in the city of SyracuseFavorable commercial real estate and development trendsCenters of influence and referrals Historic Performance in 2014 Total Loans at 12/31/14 of $387.5 Million, 13.4% Growth
Slide 18: Positioned for Growth
* Diversified Growth through Community Leadership Abundant CapitalLoan Portfolio DiversificationRevenue DiversificationStrong Competitive Market Position Positioned for Growth
Slide 19: Abundant Capital
* Diversified Growth through Community Leadership Positioned for Growth Abundant Capital 12/31/14 Well-Capitalized (Regulatory Definition) Total Capital /Risk-weighted Assets 16.60% >10.00% Tier 1 Capital /Total Assets 10.55% >5.00% Goal: Support growth and expansion activities, while maintaining a
Slide 20: Loan Portfolio Diversification
* Diversified Growth through Community Leadership Positioned for Growth Loan Portfolio Diversification Loan Composition December 31, 2004 December 31, 2014 Residential Real Estate Commercial Real Estate Commercial Loans Municipal Loans Consumer Loans
Slide 21: Core Revenue Growth
* Diversified Growth through Community Leadership Positioned for Growth Core Revenue Growth
Slide 22: Strong Competitive Market Position
* Diversified Growth through Community Leadership Positioned for 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, Fulton Lacona Office
Slide 23: #1 Market Share Holder in Oswego County
* Diversified Growth through Community Leadership Positioned for Growth Strong Competitive Market Position – #1 Market Share Holder in Oswego County Source: FDIC Deposit Market Share Report at 6-30-14 2014 Rank Institution (ST) Total Deposits ($000) Market Share (%) 1 Pathfinder Bancorp Inc. (NY) 39
Slide 24: Meaningful Penetration in Onondaga County
* Diversified Growth through Community Leadership Positioned for Growth Strong Competitive Market Position – Meaningful Penetration in Onondaga County Source: FDIC Deposit Market Share Report at 6-30-14 2014 Rank Institution (ST) Total Deposits ($000) Market Share (%) 1 Manufacturers and Traders Tru
Slide 25: Executive Management Presentation
Diversified Growth through Community Leadership * Executive Management Presentation James A. Dowd, CPASenior Vice President & Chief Financial Officer
Slide 26: Loan Growth
* Diversified Growth through Community Leadership Loan Growth CAGR 7.96%
Slide 27: Deposit Growth
* Diversified Growth through Community Leadership Deposit Growth Includes Brokered Deposits CAGR 6.22%
Slide 28: Deposit Composition
* Diversified Growth through Community Leadership Deposit Composition Includes Brokered Deposits December 31, 2004 December 31, 2014 Retail Commercial Municipal
Slide 29: Rate / Volume Analysis
* Diversified Growth through Community Leadership Rate / Volume Analysis Year Ended December 31, 2014 Volume Rate Total Incr/(Decr) Interest Income: Loans $ 1,093 $ (512) $ 581 Investments 283 (36) 247 Interest-earning Deposits (19) 7 (12) Total Interest Income 1,357 (541) 816 Interest Expense: - De
Slide 30: Net Interest Margin
* Diversified Growth through Community Leadership Net Interest Margin
Slide 31: Revenue and Operating Expense Trends
* Diversified Growth through Community Leadership Revenue and Operating Expense Trends
Slide 32: Stable Asset Quality Metrics
* Diversified Growth through Community Leadership Stable Asset Quality Metrics Dec 2010 Dec 2011 Dec2012 Dec 2013 Dec 2014 Non-performing Loans to Total Loans 2.08% 1.55% 1.66% 1.57% 1.61% Non-performing Assets to Total Assets 1.54% 1.19% 1.25% 1.18% 1.16% Allowance for Loan Losses to Total Loans 1.
Slide 33: Net Income and EPS (Diluted) Growth
* Diversified Growth through Community Leadership Net Income and EPS (Diluted) Growth Net Income CAGR 11.2%
Slide 34: Return on Average Assets
* Diversified Growth through Community Leadership Return on Average Assets
Slide 35: Return on Average Common Equity
* Diversified Growth through Community Leadership Return on Average Common Equity
Slide 36: Total Return Performance
* Diversified Growth through Community Leadership Total Return Performance
Slide 37: 2015 1st Qtr Results Summary: Financial Condition
* Diversified Growth through Community Leadership 2015 1st Qtr Results Summary Financial Condition at March 31, 2015 2014 Total Loans $390,613 $348,142 Total Investment Securities 159,893 126,653 Total Assets 606,775 525,846 Total Deposits 483,206 438,352 Shareholders’ Equity 69,970 43,802 Total Cap
Slide 38: 2015 1st Qtr Results Summary: Financial Performance
* Diversified Growth through Community Leadership 2015 1st Qtr Results Summary Financial Performance 2015 2014 Change Total Interest Income $5,086 $4,715 7.9% Total Interest Expense 583 695 (16.1%) Net Interest Income 4,503 4,020 12.0% Provision for Loan Losses 383 245 56.3% Total Noninterest Income
Slide 39: Executive Management Presentation
Diversified Growth through Community Leadership * Executive Management Presentation Thomas W. SchneiderPresident & Chief Executive Officer
Slide 40: Strategic Growth & Profitability Initiatives
* Diversified Growth through Community Leadership Strategic capital managementMarket expansionOrganic and balanced growth in loans and depositsImproving efficienciesDiversifying revenue sourcesEnhancing the customer experience to gain greater depth and breadth within our market Strategic Growth & Pr
Slide 41: Investment Rationale
* Diversified Growth through Community Leadership Abundant capital provides flexibility to pursue growth opportunitiesDominant deposit share in primary market – Oswego CountySignificant opportunity for growth in greater Syracuse Second step offering created additional liquidity for stockStable asset
Slide 42: Questions and Discussion
Diversified Growth through Community Leadership * Questions and Discussion
Slide 43: Voting Results
Diversified Growth through Community Leadership * Voting ResultsChris R. Burritt – ChairmanInspector of Elections Report – Edward Mervine
Slide 44: Meeting Adjourned – Thank You for Attending
Diversified Growth through Community Leadership 2015 Annual Meeting of Shareholders 10 a.m., May 6, 2015 Meeting AdjournedThank You for Attending