Texas United Bancshares — Investor Presentation (May 2006)
23 slides from Texas United Bancshares's investor presentation, May 11, 2006
Slide 1: May 2006 Investor Presentation
May 2006 Investor Presentation Exhibit 99.1 May 2006 Investor Presentation Investor Presentation Multiple Brands…One Team Multiple Brands…One Team Multiple Brands…One Team
Slide 2: Forward-Looking Statements
Statements and financial discussion and analysis contained in this presentation that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information about
Slide 3: Texas United Profile
Texas United Profile Texas United Profile Texas United Profile • Formed in 1998 from merger of 2 Texas banks • Closed Gateway (Dallas) acquisition December 1, 2005; • Closed Express Bank (Round Rock) acquisition February 14, 2006; • Northwest Bank (Roanoke) acquisition closed 4/1/06 • On a pro forma
Slide 4: Key Strengths
• A community bank building a strong presence in Texas growth markets • Experienced management team with extensive community banking contacts throughout Texas • Multiple charter structure allows acquired banks to maintain community bank identity • Experienced acquirer with improving operating levera
Slide 5: Multiple Brands…One Team
Major markets: • Austin • Dallas • Houston • San Antonio • Bryan/College Station State Bank GNB Financial Gateway National Bank Northwest Bank Multiple Brands…One Team Multiple Brands…One Team Multiple Brands…One Team
Slide 6: Locations
• 24 Locations (1) • Serves Austin, San Antonio and Houston MSA’s • 7 Locations • Acquired April, 2004 • Serves the Dallas-Fort Worth MSA • 7 Locations • Acquired May, 2005 • Serves the Dallas-Fort Worth MSA • 5 Locations • Acquired April 1, 2006 • Serves the Dallas-Fort Worth MSA Multiple Brands…On
Slide 7: Aggregated Totals by Bank
$142.5 $216.9 $264.2 Gateway National Bank $177.9 $196.8 $252.4 GNB Financial, Inc. $1,203.6 $107.2 $776.0 Loans $1,340.4 $121.1 $805.6 Deposits $1,756.2 $132.9 $1,106.7 Assets Aggregated Totals Northwest Bank State Bank ($ in millions ) Multiple Brands…One Team Multiple Brands…One Team Multiple Bra
Slide 8: A Texas Growth Story
Population CAGRs are deposit weighted by MSA Source: SNL Financial LC Projected CAGR Population Growth 2005 – 2010 A Texas Growth Story A Texas Growth Story A Texas Growth Story 2.75% 2.63% 2.63% 2.56% 2.28% 2.27% 2.14% 2.05% 2.03% 1.99% 1.57% 1.23% 1.22% 0.85% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.
Slide 9: Loan Portfolio
Loan Portfolio $1.203 billion at March 31, 2006 (Includes Northwest) Loan Portfolio Loan Portfolio $1.203 billion at March 31, 2006 (Includes Northwest) $1.203 billion at March 31, 2006 (Includes Northwest) Consumer 8% 1-4 Residential 18% CRE 29% C&I 22% Construction 23%
Slide 10: Loan Growth
44% 56% 47% 53% 41% 59% 40% 60% 49% 51% 61% 39% 72% 28% $0 $250 $500 $750 $1,000 $1,250 1999 2000 2001 2002 2003 2004 2005 Commercial Non-Commercial Loan Growth Loan Growth Loan Growth
Slide 11: Strong Credit Culture
0.31% 0.23% 0.09% 0.18% 0.24% 0.34% 0.46% 0.61% 0.34% 0.29% 0.20% 0.22% 0.16% 0.35% 0.93% 0.96% 1.01% 0.85% 0.64% 0.66% 1.00% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1999 2000 2001 2002 2003 2004 2005 NPA/Assets NCO/Avg Loans ALL/Loans Strong Credit Culture Strong Credit Culture Strong Credit Cult
Slide 12: Deposit Mix
Deposit Mix (Includes Northwest which closed 4/1/06) $1.34 billion at March 31, 2006 Deposit Mix (Includes Northwest which closed 4/1/06) Deposit Mix (Includes Northwest which closed 4/1/06) $1.34 billion at March 31, 2006 $1.34 billion at March 31, 2006 MMDA & Savings 46% NOW 6% DDA 17% CDs & IRAs
Slide 13: Core Deposit Growth
55% 45% 56% 44% 59% 41% 59% 41% 65% 35% 67% 33% 70% 30% $0 $250 $500 $750 $1,000 $1,250 1999 2000 2001 2002 2003 2004 2005 Core Deposits Non-Core Deposits *Core deposits = DDA + NOW + Savings + Money Market. Core Deposit Growth* Core Deposit Growth* Core Deposit Growth*
Slide 14: Revenue Mix
Revenue Mix $77.8 million for 2005 Revenue Mix Revenue Mix $77.8 million for 2005 $77.8 million for 2005 Gain on Sale 12% Spread Income 69% Deposit Service Fees 12% Mortgage Servicing 1% Other 6%
Slide 15: Revenue Growth
$13.8 $16.4 $21.2 $53.0 $11.0 $14.6 $24.8 $24.2 $32.7 $19.0 $5.5 $7.9 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 2000 2001 2002 2003 2004 2005 Spread Income Fee Income 28.4% 32.6% 34.2% 37.6% 36.8% 31.9% Revenue Growth Revenue Growth Revenue Growth
Slide 16: Net Interest Margin
4.91% 4.92% 4.44% 4.44% 4.86% 4.56% 4.66% 4.56% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 1999 2000 2001 2002 2003 2004 2005 1Q06 Net Interest Margin Net Interest Margin Net Interest Margin
Slide 17: Improving Operating Efficiencies
$11.2 73% $15.5 79% $19.8 79% $25.9 80% $30.0 77% $41.1 79% $57.6 69.9% 74% $17.1 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 1999 2000 2001 2002 2003 2004 2005 1Q06 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Total Non-Interest Expense Efficiency Ratio Improving Operating Efficiencies Improving
Slide 18: Earnings Growth
$3.0 $3.2 $4.3 $5.2 $6.1 $10.7 2000 2001 2002 2003 2004 2005 ($ in millions) Diluted EPS Net Income $0.79 $0.83 $1.07 $1.26 $1.11 $1.31 2000 2001 2002 2003 2004 2005 Earnings Growth Earnings Growth Earnings Growth
Slide 19: ROAA, ROAE and ROATE
ROAE ROAA 1.14% 0.90% 0.77% 0.86% 0.86% 0.73% 0.87% 1999 2000 2001 2002 2003 2004 2005 15.6% 14.2% 13.5% 14.1% 10.0% 9.8% 12.1% 1999 2000 2001 2002 2003 2004 2005 ROAA, ROAE and ROATE ROAA, ROAE and ROATE ROAA, ROAE and ROATE 2005 ROATE: 21.2%
Slide 20: 2006 Strategic Priorities
• Consolidate back-office operations • Continue to focus on improving efficiencies and profitability • Consolidate all banks in the Dallas/Fort Worth Metroplex into one bank charter • Focus on growing existing branch network 2006 Strategic Priorities 2006 Strategic Priorities 2006 Strategic Prioriti
Slide 21: Key Investment Appeals
• A community bank with a strong presence in high growth Texas markets • Improving operating leverage, efficiency and profitability • Ability to continue to grow both organically and through acquisitions • Strong asset quality history Key Investment Appeals Key Investment Appeals Key Investment Appe
Slide 22: Current Valuation
309% 145% 15.3x 16.8x $234 Million $ 22.00 TXUI 322.5% 240.5% 16.8x 22.0 Texas Banks Avg. Price / Tangible BV Price / Book Value Price / ’06E EPS Price / LTM EPS Market Capitalization Share Price (5/5/06) Current Valuation Current Valuation Current Valuation
Slide 23: Slide 23
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