Citizens & Northern Corp · NASDAQ:CZNC
Citizens & Northern — Shareholder Meeting (April 2019)
25 slides from Citizens & Northern's shareholder meeting presentation, Apr 18, 2019
Slide 1: 2019 Annual Shareholders' Meeting
2019 Annual Shareholders’ Meeting Thursday, April 18, 2019
Slide 2: Agenda
MOMENTUM: The Pursuit of Excellence A GENDA • Procedural Agenda • Election of Class II Directors • Other Items on the Ballot • Chairman’s Comments • CEO Comments • Financial Review • Shareholder Value • Q&A
Slide 3: Procedural Agenda
MOMENTUM: The Pursuit of Excellence P ROCEDURAL A GENDA • Appointments • Chairman: Leo F. Lambert • Secretary: Kimberly N. Battin • Determination of Quorum • Minutes of 2018 Annual Meeting • Judges of Election
Slide 4: Election of Class II Directors
MOMENTUM: The Pursuit of Excellence E LECTION OF C LASS II D IRECTORS Susan E. Hartley Leo F. Lambert Leonard Simpson
Slide 5: Continuing Directors
MOMENTUM: The Pursuit of Excellence C ONTINUING D IRECTORS Dennis F. Beardslee J. Bradley Scovill Aaron K. Singer Bobbi J. Kilmer Terry L. Lehman Frank G. Pellegrino Through 2020 Class III: Through 2021 Class I:
Slide 6: Other Items on the Ballot
MOMENTUM: The Pursuit of Excellence O THER I TEMS ON THE B ALLOT • Say on Pay • Appointment of Independent Auditor • Baker Tilly Virchow Krause, LLP
Slide 7: Chairman's Comments
MOMENTUM: The Pursuit of Excellence C HAIRMAN ’ S C OMMENTS Leo F. Lambert Chairman of the Board
Slide 8: Chairman's Comments
MOMENTUM: The Pursuit of Excellence C HAIRMAN ’ S C OMMENTS • Chuck Ferry – Stevens & Lee Law Firm • Ivan Cilik , CPA – Baker Tilly Virchow Krause, LLP
Slide 9: Chairman's Comments: The Board
MOMENTUM: The Pursuit of Excellence C HAIRMAN ’ S C OMMENTS • The Board • Retirement: James E. Towner • Resignation: Jan E. Fisher • Appointment: Clark S. Frame
Slide 10: CEO Comments
MOMENTUM: The Pursuit of Excellence CEO C OMMENTS Brad Scovill President & Chief Executive Officer
Slide 11: Mission, Vision & Values
MOMENTUM: The Pursuit of Excellence M ISSION , V ISION & V ALUES Mission : • Creating Value Through Lifelong Relationships Vision : • Every Customer Says, “C&N is the ONLY bank I need.” Values : • Teamwork • Respect • Responsibility & Accountability • Excellence • Integrity • Client - Focus • Have F
Slide 12: Delivery Model Strategy
MOMENTUM: The Pursuit of Excellence D ELIVERY M ODEL S TRATEGY • C&N Team • Technology • Physical Presence
Slide 13: Expansion & Growth
MOMENTUM: The Pursuit of Excellence E XPANSION & G ROWTH • Southeast Region • York
Slide 14: Expansion & Growth: Towanda Relocation
MOMENTUM: The Pursuit of Excellence E XPANSION & G ROWTH • Towanda Relocation Preliminary rendering of building design
Slide 15: 2018 Financial Review: End of Period Balances
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW END OF PERIOD BALANCES ($ in thousands) 2018 2017 2016 2015 2014 Available - for - sale debt securities $363,273 $355,937 $394,106 $417,904 $508,153 Gross loans 827,563 815,713 751,835 704,880 630,545 Allowance for loan losses 9,309 8,856 8
Slide 16: 2018 Financial Review: Average Balances
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW AVERAGE BALANCES (in thousands) 2018 2017 2016 2015 2014 Total assets $1,276,140 $1,247,759 $1,229,866 $1,243,209 $1,239,897 Earning assets 1,205,429 1,169,569 1,147,549 1,159,298 1,155,401 Gross loans 822,346 780,640 723,076 657,727 627,75
Slide 17: 2018 Financial Review: Income Statement
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW INCOME STATEMENT (in thousands) For the Year Ended December 31 2018 2017 2016 2015 2014 Net interest income $45,703 $41,948 $40,405 $39,917 $40,887 Provision for loan losses 584 801 1,221 845 476 Net interest income after provision for loan
Slide 18: 2018 Financial Review: Per Common Share
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW PER COMMON SHARE: 2018 2017 2016 2015 2014 Basic earnings per share $1.79 $1.10 $1.30 $1.35 $1.38 Diluted earnings per share $1.79 $1.10 $1.30 $1.35 $1.38 Cash dividends declared per share $1.08 $1.04 $1.04 $1.04 $1.04 Book value per common
Slide 19: 2018 Financial Review: Key Ratios
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW KEY RATIOS 2018 2017 2016 2015 2014 Return on average assets 1.72% 1.08% 1.28% 1.32% 1.38% Return on average equity 11.72% 7.11% 8.37% 8.72% 9.21% Net interest margin¹ 3.90% 3.82% 3.76% 3.69% 3.80% Efficiency² 60.19% 60.74% 59.22% 56.66% 57
Slide 20: 2018 Financial Review: Peer Group Comparison
MOMENTUM: The Pursuit of Excellence 2018 F INANCIAL R EVIEW ¹ Noninterest Income includes noninterest income and nonrecurring revenue ² Noninterest expense includes noninterest expense and nonrecurring expense Note: Peer Group based on the Company’s Proxy Statement dated March 9, 2018 Source: S&P Gl
Slide 21: Shareholder Value
MOMENTUM: The Pursuit of Excellence S HAREHOLDER V ALUE
Slide 22: Shareholder Value
MOMENTUM: The Pursuit of Excellence S HAREHOLDER V ALUE Earnings per Share - Diluted Year - End Stock Price Year - End Price/Earnings Ratio Annual Dividends per Share Annual Dividend Yield¹ 2010 $1.45 $14.86 10.2 $0.39 2.62% 2011 $1.92 $18.47 9.6 $0.58 3.14% 2012 $1.85 $18.90 10.2 $0.84 4.44% 2013 $
Slide 23: Shareholder Value: Quarterly Cash Dividend
MOMENTUM: The Pursuit of Excellence S HAREHOLDER V ALUE Announcement: CZNC Quarterly Cash Dividend • Amount: $0.27 per share • Record Date: 4/29/2019 • Payable Date: 5/10/2019
Slide 24: Q&A
MOMENTUM: The Pursuit of Excellence Q&A
Slide 25: Citizens & Northern Corporation
CITIZENS & NORTHERN CORPORATION
Citizens & Northern — Shareholder Meeting (April 2019) on 6ix