![]() Serving our communities for over 130 years Moving You Ahead James O. Miller – Chairman, President and Chief Executive Officer Dennis G. Shaffer, Executive Vice President Richard J. Dutton – Senior Vice President, Chief Operating Officer NASDAQ: FCZA Exhibit 99 First Citizens Banc Corp |
![]() FCZA.COM 2 Cautionary Statement Regarding Forward-Looking Information Comments made in this presentation include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Although management believes that the expectations reflected in the forward-looking statements are reasonable, actual results or future events could differ, possibly materially, from those anticipated in these forward-looking statements. The forward-looking statements speak only as of the date of this presentation, and First Citizens Banc Corp assumes no duty to update any forward-looking statements to reflect events or circumstances after the date of this presentation, except to the extent required by law. Please refer to our Annual Report on Form 10-K and documents subsequently filed with the Securities and Exchange Commission concerning the factors that could cause actual results to differ materially from forward-looking statements. Moving You Ahead |
![]() Contact Information Contact Information First Citizens Banc Corp’s common shares are traded on the NASDAQ Capital Market under the symbol “FCZA.” The Company’s depository shares, each representing 1/40 th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “FCZAP.” Additional information can be found at www.fcza.com James O. Miller Chairman, President and CEO jomiller@fcza.com Telephone: 888.645.4121 FCZA.COM 3 Moving You Ahead |
![]() Corporate Overview Corporate Overview 9 th largest publicly traded commercial bank in Ohio Community banking focused operations in 10 Ohio counties Operate in stable and growing Ohio markets Full-service banking origination with diversified revenue streams Commercial banking Retail banking Wealth management Mortgage banking Franchise poised for continued growth FCZA.COM 4 Moving You Ahead |
![]() Financial Highlights Financial Highlights FCZA.COM 5 Market data as of June 30, 2014 and June 30, 2013. Financial Highlights ($s in thousands, except per share data) June 30, 2014 June 30, 2013 % Change Balance Sheet Assets $1,186,503 $1,143,248 3.78% Gross Loans 867,978 810,862 7.04 Deposits 979,136 938,205 4.36 Performance Analysis YTD Net Income $4,951 $3,570 38.68% YTD ROAA 0.78% 0.61% 27.87 YTD ROAE 8.84 6.89 28.30 Tier 1 Leverage Ratio 9.77 9.38 4.16 Market Data Market Capitalization $69,448 $55,574 Price / Tangible Book Value 112.62% 97.12% Dividend Yield 2.22 2.22 Stakeholder / Insider Ownership 19.31 Moving You Ahead |
![]() Investment Highlights Investment Highlights FCZA.COM 6 Experienced management team with strong track record Leading Ohio community bank franchise focused on targeted rural markets and selected urban markets Demonstrated growth and proven acquirer Improved credit quality and solid reserve coverage Solid capital for continued growth Completed refinance of TARP obligations in first quarter of 2014 Improving operating leverage Rightsizing branch network with projected annual cost savings of $450 thousand Revised retirement plans, net impact of $195 thousand of cost savings in 2014 Focused business strategies resulting in earnings growth Moving You Ahead |
![]() Experienced Management Team Experienced Management Team 7 FCZA.COM 7 Chairman, President & CEO 40 years of banking experience Joined in 1987 James O. Miller SVP & Chief Operating Officer 11 years of banking experience Joined in 2007 Richard J. Dutton EVP, Chief Lending Officer & President of Citizens Bank 28 years of banking experience Joined in 2009 Dennis G. Shaffer SVP & General Counsel 11 years of banking experience Joined in 2003 James E. McGookey SVP and Controller 25 years of banking experience Joined in 1989 Todd A. Michel SVP & Chief Risk Officer 18 years of banking experience Joined in 2013 John A. Betts SVP & Chief Credit Officer 29 years of banking experience Joined in 2011 Paul J. Stark Moving You Ahead |
![]() First Citizens Banc Corp Locations First Citizens Banc Corp Locations Sandusky / Akron, Ohio North Central Ohio FCZA.COM 8 $532 million in loans $625 million in deposits 10 branch locations #1 deposit market share in Sandusky, Ohio with ~ 38% market share $101 million in loans $158 million in deposits 7 branch locations ~42% deposit market share (1) West Central Ohio $236 million in loans $196 million in deposits 7 branch locations ~23% deposit market share (2) Source: SNL Financial. Deposit data as of June 30, 2013. (1) Deposit market share consists of the following Ohio cities: Shelby, Willard, New Washington, Shiloh, Plymouth and Greenwich. (2) Deposit market share consists of the following Ohio cities: Quincy, Urbana, Plain City, West Liberty and Russells Point. Moving You Ahead |
![]() Target Market Highlights Target Market Highlights FCZA.COM 9 (1) Bloomberg Economic Evaluation States index. (2) U.S. Labor Department. Unemployment data as of May 2014. Ohio has boasted the sixth-healthiest U.S. state economy since the 18-month recession ended in June 2009 (1) Ohio’s unemployment rate of 5.5% is well below U.S. national rate of 6.3.% (2) 674,000 Ohioans are employed in manufacturing, most since December 2008 (2) West Central Ohio North Central Ohio Sandusky / Akron Moving You Ahead |
![]() Proven Acquirer and Attractive Organic Growth Profile Proven Acquirer and Attractive Organic Growth Profile 10 FCZA.COM 10 Acquired five banks from 1998 – 2007 serving to increase assets approximately $815 million Expanded commercial loan growth in Columbus, Akron & Cleveland markets Since year-end 2010, loan portfolios in these markets have increased from $147 million to $329 million Low cost, locally generated deposit base Recently hired an experienced residential mortgage team in Columbus / Dublin, Ohio markets Capitalize on loan opportunities in greater Cleveland, Akron, Columbus and other potential urban markets Total Assets Total Gross Loans Total Deposits $s in millions $s in millions $s in millions Moving You Ahead |
![]() Deposit Mix Deposit Mix FCZA.COM 11 2014 Q2 Cost of Deposits: 0.40% Total Deposits: $979 million Non-Interest Bearing Demand 26% Interest Bearing Demand 20% Savings 32% Certificates of Deposit 21% Brokered Deposits 1% Moving You Ahead |
![]() Loan Mix Loan Mix FCZA.COM 12 2014 Q2 Loan Yield: 4.59% Gross Loans: $868 million CRE Non-Owner Occupied 25% CRE Owner Occupied 18% Single Family 24% C&I 11% Multi-family 8% Farmland & Agriculture 7% C&D & Land 6% Consumer & Other 1% Moving You Ahead |
![]() 3.10% 3.45% 3.30% 2.22% 1.93% 2010 2011 2012 2013 2014 Q2 Improving Asset Quality Improving Asset Quality FCZA.COM 13 NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Reserves / NPLs NCOs / Average Loans 2.84% 2.70% 2.42% 1.92% 1.77% 2010 2011 2012 2013 2014Q2 70.82% 58.02% 53.05% 64.17% 67.95% 2010 2011 2012 2013 2014Q2 1.46% 1.35% 1.01% 0.53% 0.31% 2010 2011 2012 2013 2014Q2 Moving You Ahead |
![]() Asset Quality Improvement Asset Quality Improvement FCZA.COM 14 NPAs & 90+ Day Delinquent (12/31/2010) NPAs & 90+ Day Delinquent (6/30/14) $23.0M $35M $s in millions Gross Loans: $767 million Gross Loans: $868 million $s in millions Nonaccrual Loans - Current, $8.5 Nonaccrual Loans - Past Due, $13.7 Restructured Loans, $8.6 OREO, $1.8 90+ Days Nonaccrual Loans - Current, $11.0 Nonaccrual Loans - Past Due, $6.6 Restructured Loans, $5.0 OREO, $0.3 Delinquent, $2.2 Moving You Ahead |
![]() Peer Leading Net Interest Margin Peer Leading Net Interest Margin FCZA.COM 15 4.03% 3.98% 3.95% 3.77% 3.76% 3.70% 3.72% 3.51% 3.46% 2010Y 2011Y 2012Y 2013Y 2014Q2 (1) Peer median consists of publicly traded Ohio banks with assets between $500 million and $2 billion. SNL Financial. FCZA Peer Median (1) Moving You Ahead |
![]() Managing Duration FCZA.COM 16 3.31 3.31 1.72 1.79 Q2 2014 Q2 2013 Assets Liabilities Duration of Assets and Liabilities Managing Duration Risk Asset duration of less than two years Sell fixed rate mortgages Encourage variable rate commercial lending or swap into variable, if appropriate Limit fixed rate terms to five years Liability duration greater than three years Focus on low-cost “sticky” demand deposits Don’t overprice or overextend time deposits Moving You Ahead |
![]() Non-Interest Metrics and Initiatives Non-Interest Metrics and Initiatives FCZA.COM 17 Growing fee income platform Wealth management ~$465 million in AUM Earned $1.6 million YTD, a 28% increase from the prior year Income tax refund processing program Evaluated / refined our process over four tax seasons Specialized payment processing earned $2.3 million during 2014 Improving efficiency and operating leverage Investment in people Revised retirement plan in Q2 2014 reducing net expenses $195 thousand in 2014 Rightsizing branch network Projected annual cost savings of $450 thousand 0.85% 0.89% 0.98% 1.00% 1.08% 2010 2011 2012 2013 2014Q2 2.20% 2.24% 2.31% 2.63% 2.14% 2010 2011 2012 2013 2014Q2 Non-Interest Income / Average Assets Net Operating Expense / Average Assets Moving You Ahead |
![]() Profitability and Returns Analysis Profitability and Returns Analysis FCZA.COM Net Income Available to Common Shareholders ROAA Net Income Available to Common Shareholders 18 ROATCE $(2,444) $2,782 $4,386 $5,020 $2,990 $3,890 2010 2011 2012 2013 2013Q2 YTD 2014Q2 YTD -0.11% 0.35% 0.49% 0.53% 0.57% 0.74% 2010 2011 2012 2013 2013Q2 YTD 2014Q2 YTD -3.42% 7.00% 9.06% 9.93% 10.77% 12.46% 2010 2011 2012 2013 2013Q2 YTD 2014Q2 YTD $s in thousands $(0.32) $0.36 $0.57 $0.65 $0.39 $0.50 2010 2011 2012 2013 2013Q2 YTD 2014Q2 YTD Moving You Ahead |
![]() 15.07% 15.10% 14.84% 14.32% 14.92% 14.22% 14.36% 14.53% 14.13% 2010 2011 2012 2013 2014Q2 9.30% 9.30% 9.34% 9.62% 9.77% 9.32% 9.13% 8.91% 9.76% 2010 2011 2012 2013 2014Q2 Capital Levels Capital Levels FCZA.COM Tier 1 Leverage Ratio (%) Tier 1 Ratio (%) Total Risk-Based Capital Ratio (%) 19 Tangible Common Equity / Tangible Assets (1) Assumes conversion of $23.1 million of Series B Preferred stock into common equity. (2) Peer median consists of publicly traded Ohio banks with assets between $500 million and $2 billion. SNL Financial. (3) Capital ratio excludes $23.2 million of Series A preferred stock, which was redeemed with the proceeds from Series B preferred stock in January 2014. 13.78% 13.80% 13.25% 13.06% 13.67% 13.28% 13.54% 13.58% 13.04% 2010 2011 2012 2013 2014Q2 4.36% 4.93% 5.03% 5.08% 5.55% 7.10% 7.54% 8.33% 8.46% 8.39% 8.42% 2010 2011 2012 2013 2014Q2 (3) (3) (3) FCZA PF Peer Median (1) (2) FCZA Moving You Ahead |
![]() Increasing Shareholder Value Increasing Shareholder Value FCZA.COM 20 Stock Price $3.98 $4.03 $5.25 $6.52 $9.01 2010 2011 2012 2013 6/30/2014 Dividend yield of 2.2% Dividend payout ratio in Q2 2014 was approximately 17.2% Price / Tangible Book Value of 113% as compared to peer average of 124% (1) Price / LTM EPS of 13.7x as compared to peer average of 15.2x (1) Source: SNL Financial. Market data as of June 30, 2014. (1) Peer group consists of U.S. banks between $750 million and $1.25 billion in MRQ assets. (2) Stock price as of December 31 of the corresponding year. (2) (2) (2) (2) Moving You Ahead |
![]() Strategic Focus and Growth Strategy Strategic Focus and Growth Strategy Organic growth Capitalize on commercial and consumer lending opportunities Grow core deposit base in rural and targeted urban markets Identify and evaluate loan production opportunities in select metro markets Acquisition opportunities Rural Urban Improving asset quality Efficiency and operating leverage FCZA.COM 21 Moving You Ahead |
![]() FCZA.COM 22 Why Invest in FCZA? Why Invest in FCZA? Attractively Valued Versus Peers Strong and Seasoned Management Team Leading Ohio Community Banking Franchise Platform to Support Future Growth Proven and Disciplined Acquirer Moving You Ahead |
![]() Appendix Appendix 23 FCZA.COM Moving You Ahead |
![]() ![]() ![]() Operating Results Operating Results FCZA.COM 24 ($s in thousands, except per share data) For the Years Ended December 31, Six Months Ended 2009 2010 2011 2012 2013 6/30/2014 Net Interest Income $40,273 $41,461 $41,361 $40,578 $39,974 $20,432 Provision for Loan Losses 13,323 17,940 9,800 6,400 1,100 1,500 Noninterest Income 9,633 9,154 9,971 11,200 12,662 8,004 Noninterest Expense 35,165 35,774 36,727 38,074 43,384 20,408 Net Income 1,655 (1,268) 3,958 5,579 6,179 4,951 Net Income Available to Common Shareholders 700 (2,444) 2,782 4,386 5,020 3,890 Basic EPS per Common Share $0.09 ($0.32) $0.36 $0.57 $0.65 $0.50 Diluted EPS per Common Share 0.09 (0.32) 0.36 0.57 0.64 0.43 Return on Average Assets (ROAA) 0.15% (0.11%) 0.35% 0.49% 0.53% 0.78% Return on Average Equity (ROAE) 1.68 (1.27) 3.96 5.36 5.97 8.84 Moving You Ahead |