Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ALLIANCE FINANCIAL CORP /NY/ | d354360d8k.htm |
 Exhibit 99.1 |
 Forward Looking
Statements This
presentation
contains
certain
“forward-looking
statements”
(within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995)
with
respect
to
the
financial
conditions,
results
of
operations
and
business
of
Alliance.
The
words
“may,”
“could,”
“should,”
“would,”
“believe,”
“anticipate,”
“estimate,”
“expect,”
“intend,”
“plan”
and similar expressions are intended to identify forward-looking
statements. These forward-looking statements involve certain risks
and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such
forward-looking statements include, among others, the following:
changes in the interest rate environment that reduce margins;
changes in the regulatory environment;
the highly competitive industry and market area in which we operate;
general economic conditions, either nationally or regionally, resulting in, among
other things, a deterioration in credit quality; changes in business
conditions and inflation; changes in credit market conditions;
changes in technology used in the banking business;
the
soundness
of
other
financial
services
institutions
which
may
adversely
affect
our
credit
risk;
certain of our intangible assets may become impaired in the future;
our controls and procedures may fail or be circumvented;
new line of business or new products and services which may subject us to
additional risks; changes in key management personnel which may adversely
impact our operations; the effect on our operations of recent legislative
and regulatory initiatives that were or may be enacted in response to the ongoing
financial crisis;
other factors detailed from time to time in our Securities and Exchange Commission
filings Although we believe that the expectations reflected in such
forward-looking statements are reasonable, actual results may differ materially from the
results discussed in these forward-looking statements. You are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. We do not undertake any obligation to
republish revised forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence
of unanticipated events. |
 Events of
2011 Alliance Bank produced Fifth Consecutive Year of
Record Performance
•
We continued to differentiate ourselves:
•
Provided excellent customer service to our clients
•
$107 million in Residential Mortgage Closings
•
Supported local companies with our “willingness to lend”
attitude
•
$75.9 million in Commercial loan originations in 2011
•
$856.6
million
in
overall
loan
originations
over
the
last
three
years |
 2011
Highlights •
2011 FDIC deposit market share numbers for the Syracuse MSA
(Metropolitan
Statistical
Area),
which
include
Onondaga,
Madison
and
Oswego Counties: Alliance Bank has maintained its #4 position, topping
Bank
of
America
and
JP
Morgan
Chase.
In
the
top
four
we
join
M&T
(#1),
KeyBank (#2) and HSBC (#3). In the Cortland Micro market, where we
remain #1, we maintained our market share of 40%.
•
Alliance Financial Corporation was once again recognized by investment
bank and financial services specialist Keefe, Bruyette & Woods (KBW) on
its Bank Honor Roll. Alliance was one of only 40 banking institutions
recognized
nationwide
for
this
distinction;
banks
must
have
over
$500
million in assets to be eligible.
•
Alliance Financial Corporation repeated as one of the Top 200 Performing
Community Banks in the Country
–
2012 ranking #113 (U.S. Banker Magazine, May 2012)
–
2011 ranking #123 (U.S. Banker Magazine, June 2011)
–
2010 ranking #189 (U.S. Banker Magazine, August 2010)
|
 Performance of
Major Lines of Business Commercial Banking
•
$31 million of new commitments to new and existing customers in the Fourth Quarter of 2011
•
Our investment in people is generating returns
•
Credit Quality metrics compare very favorably to northeast peers
•
Our Cash Management products provide a competitive advantage
Retail Banking
•
Branches operating efficiently and providing a high level of customer service
•
Product Sales based on our customers’
needs not our assigned goals
•
Indirect Auto continues to be strategically important
•
In the last two months, closed in excess of $30 million in loans
•
Credit Quality in our Retail Loan Portfolio continues to be excellent
Investment Management
•
Assets under Management: $828 million at year-end 2011, $873 million as of 4/30/12
•
In spite of volatile markets, a significant profit contributor
•
Efforts continue to grow this business organically and via acquisition
|
 Deposit
Leadership |
 Cortland
County A
L
N
C
ALNC= 40.93% of Deposit Market Share
FDIC Deposit Market Share Report (June 30, 2011) |
 Madison
County A
L
N
C
ALNC=
28.66%
of
Deposit
Market
Share
FDIC Deposit Market Share Report (June 30, 2011) |
 Syracuse
MSA A
L
N
C
ALNC= 7.87% of Deposit Market Share
FDIC Deposit Market Share Report (June 30, 2011) |
 Oswego
County ALNC= 12.89% of Deposit Market Share
A
L
N
C
FDIC Deposit Market Share Report (June 30, 2011) |
 Residential
Mortgages •
Sustained leadership share in Cortland and Madison Counties
•
Largest market share of any local bank headquartered in
Onondaga County
•
From January 2012 through April 2012, closed 320 residential
mortgages totaling approximately $45 million
•
72% were re-finances
–
Of which 62% were existing ALNC mortgages
•
28% new purchases |
 A
L
N
C
2011 Onondaga County Residential Mortgage Filings
As of December 31, 2011 Onondaga County Clerk’s Office data
reported by Independent Title Agency |
 J. Daniel
Mohr Chief Financial Officer
Alliance Financial Corporation |
 Assets
•
Navigating low interest rate environment through prudent balance
sheet management |
 Loans and
Leases •
Well-balanced portfolio diversification
•
$255 million of originations in 2011
•
Sold $60 million of fixed rate mortgages to manage interest rate
risk
2007
2008
2009
2010
2011
Q1 2012
Change
Average yield :
6.7% 6.1% 5.5%
5.2%
4.9% 4.6% -2.1% |
 Deposits
2007
2008
2009
2010
2011
Q1 2012
Change
Average cost :
3.0% 2.3% 1.3%
1.0%
0.7% 0.5% -2.5% |
 Non-Performing Assets/Total Assets |
 Allowance for
Credit Losses $ in Thousands
•
Substantial reserves against possible credit losses |
 Strong
Capital Ratios December 31, 2011 |
 Net
Income Diluted EPS
$ in Thousands
•
Record net income five consecutive
years |
 •
Disciplined community banking philosophy delivers relatively stable return on equity
Return on Average Equity |
 Net Interest
Income Net Interest Margin
$ in Thousands
•
Exceptionally low interest rates pressure net interest margin
3.02%
3.35%
3.55%
3.55%
3.43%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2007
2008
2009
2010
2011
Net Interest Income
Net Interest Margin |
 Non-Interest Income
Non-Interest Income/Total Income*
$ in Thousands
*excludes non-recurring items
•
Non-interest rate sensitive income a significant component of revenue
|
 Provision for
Credit Losses $ in Thousands
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2007
2008
2009
2010
2011 |
 Non-Interest Expenses
$ in Thousands
0
8,000
16,000
24,000
32,000
40,000
48,000
2007
2008
2009
2010
2011 |
 First Quarter
2012 Highlights 1
st
Q 2012
1
st
Q 2011
Change
Net income
$ 2,639
$ 3,306
-20.2%
Diluted EPS
$0.55
$0.70
-21.4%
Net interest income
9,841
10,983
-10.4%
Provision for credit losses
—
200
-100.0%
Non-interest income
4,476
4,586
-2.4%
Non-interest expense
10,888
10,979
-0.8%
Net interest margin
3.22%
3.44%
-22bp
Dollars in thousands, except per share amounts |
 Stock Price
Performance As of May 10, 2012 |
 Jack H.
Webb Chairman, President and CEO
Alliance Financial Corporation |
 2012
Initiatives •
Further leverage our well respected Brand
•
Continue to provide excellent customer service
•
Sustained focus on growth within Central New York
•
Grow organically as well as via appropriate acquisitions
•
Blend traditional and evolving delivery services
•
We must appeal to the growing population that opts for
technology rather than branches
•
All of our activities and initiatives must take place while
complying with heightened regulatory oversight |
 It is good to
be Alliance Financial Corporation •
We are executing our strategies from a position of strength
•
We are well capitalized
•
Credit quality metrics compare very favorably to our peer group and
national averages
•
Our People are well respected and passionate
•
Our Brand is well known and highly respected
•
Significant regulatory and compliance pressures will provide opportunities
•
Banks of many sizes will not be able to contend with evolving
requirements
•
Small banks will seek strategic partners
•
Large banks continue to lack focus on Central New York
•
Alliance is positioned for opportunity in 2012 and beyond
Alliance Bank |
 Questions? |
 |