Northrim Bancorp Inc · NASDAQ:NRIM
Northrim Bancorp — Investor Presentation (May 2014)
28 slides from Northrim Bancorp's investor presentation, May 13, 2014
Slide 1: Northrim Bancorp, Inc.
NORTHRIM BANCORP, INC. NASDAQ: NRIM MAY 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” as that term is defined for purposes of Section 21D of the Securities and Exchange Act. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and unce
Slide 3: Northrim: Solid Value
NORTHRIM: SOLID VALUE Price @ April 22, 2014 $24.89 Market Cap @ April 22, 2014 $163M Net Interest Margin Q1 2014 4.28% Tangible Book Value Q1 2014 $21.11 Price/Tangible Book 1.18x EPS (ttm) $1.86 P/E Ratio 13.4x Dividend Yield 2.73%
Slide 4: Northrim: Strong Performance
NORTHRIM: STRONG PERFORMANCE Net Income (000) $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- Q1 2014 net income $2.7 million 2013 income $12.3 million Q1-12 Q2 Q3 Q4 Q1-13 Q2 Q3 Q4 Q1-14
Slide 5: Northrim History
NORTHRIM HISTORY Opened for business; Invested in Invested in Invested in Acquired Invested in Acquired original startup of Elliott Cove Northrim Alaska Elliott Cove Alaska offering Residential Capital Benefits First Bank Insurance Pacific $8.2 million Mortgage Management Group & Trust Company Bank
Slide 6: Strategies for Success
STRATEGIES FOR SUCCESS Northrim’s original strategies, and our execution, continue to serve us well today Strong balance sheet Solid net interest margin Focus on asset quality Diversified income sources Strategic Investments Leadership to build Alaska’s economy
Slide 7: Strong Balance Sheet: Total Capital Ratio
STRONG BALANCE SHEET: TOTAL CAPITAL RATIO 20.00% 17.01% 18.00% 15.24% 15.33% 16.46% 16.60% 16.61% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q1 2014 NRIM Well Capitalized
Slide 8: A History of Increasing Shareholder Value
NORTHRIM BANCORP, INC.: A HISTORY OF INCREASING SHAREHOLDER VALUE 3/31/2014 160,000,000 $145.9 million Total Shareholders’ Equity 140,000,000 120,000,000 Capital Raises: 1990: $ 9.3 million 100,000,000 1992: $ 1.6 million 1993: $ 6.0 million 80,000,000 1999: $20.3 million 60,000,000 CAGR 13.62% 40,0
Slide 9: Composition of Northrim Bancorp, Inc. Capital as of March 2014
COMPOSITION OF NORTHRIM BANCORP, INC. CAPITAL AS OF MARCH 31, 2014 $175 $150 $158 $125 $146 $100 (000) $75 $50 $25 $37 ($8) $- $(25) ($41) $(50) Total Capital Raised Cumulative Cumulative Repurchases, Total Equity Earnings Dividends Paid Equity Compensation, Costs of Capital Raises, and Other
Slide 10: Core Deposits
CORE DEPOSITS As of 03/31/14 YTD Average Cost of Deposits: 0.18% CDs under $100,000, 4% CDs over $100,000, 5% Money Market, 20% Demand, 36% Interest-bearing demand, 14% Alaska CD, Savings, 10% 11%
Slide 11: Loan Portfolio
LOAN PORTFOLIO YTD Average Yield on Loans: 5.70% As of 03/31/14 Non-owner Occupied CRE 38% Owner Occupied CRE 11% Consumer 4% Construction 8% Commercial 39%
Slide 12: Loan Volume
LOAN VOLUME Portfolio Loans $770,016 $763,065 $780,000 $760,000 $754,355 $740,000 $721,609 $718,157 $720,000 (000) $700,000 $680,000 $660,000 $644,258 $640,000 $620,000 $600,000 $580,000 Q1-12 Q1-13 Q2 Q3 Q4 Q1-14
Slide 13: Focus on Asset Quality: Nonperforming Assets
FOCUS ON ASSET QUALITY: NONPERFORMING ASSETS $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 (000) 1.25% 1.16% 0.94% 0.78% 0.77% 0.70% 0.56% 0.35% 0.37% Q1-12 Q2 Q3 Q4 Q1-13 Q2 Q3 Q4 Q1-14 NPA NPA/Assets
Slide 14: High Non Interest Income
HIGH NON INTEREST INCOME Net Interest Income 80% Other Income 20% Quarter ended 03/31/14
Slide 15: Diversified Other Operating Income
DIVERSIFIED OTHER OPERATING INCOME YTD 03/31/14 18% 32% 16% 4% -5% 17% 18% Purchased Receivable Income Benefit Plan Income Deposit Service Charges Electronic Banking Income Residential Mortgage Gain on Sale of Securities Other Income
Slide 16: Affiliates and Diversification
AFFILIATES AND DIVERSIFICATION CORPORATE STRUCTURE Northrim BanCorp, Inc. Northrim Bank Northim Capital Trust 1 (“NCTI”) Northrim Statutory Trust 2 (“NST2”) Northrim Investment Services Company (“NISC”) Northrim Capital Investments Co. (“SNCIC”) 100% Northrim Funding Services A Division of Northrim
Slide 17: Overview of Alaska Pacific Bancshares, Inc.
OVERVIEW OF ALASKA PACIFIC BANCSHARES, INC. ACQUIRED BY NORTHRIM BANCORP, INC. APRIL 1, 2014 Overview Headquarters: Juneau, Alaska Branches: 5 Date Established: 1935 Balance Sheet (March 31, 2014) Assets $167,839,000 Total Deposits $ 149,466,000 Portfolio loans $141,307,000 Preferred Equity/TARP $ 0
Slide 18: Transaction Overview
TRANSACTION OVERVIEW Transaction Detail(1) Aggregate Value • $ 14.6 million Per Diluted Share Value • $ 17.57 Price / ATBVPS • 93% Market Premium • 3%(2) Core Deposit Premium • 0.5% (1) Calculated based on Northrim’s 15-day weighted average close price of $25.66 as of March 25, 2014. Aggregate value
Slide 19: Pro Forma Financial Impact
PRO FORMA FINANCIAL IMPACT Year 1 EPS Accretion (1) •9% Year 2 EPS Accretion •9% IRR • > 15% Tangible Book Value Dilution Payback • There is no Tangible Book Value Dilution Capital Ratios (3/31/2014) Northrim Alaska Pacific Pro Forma BanCorp, Inc. Bancshares, Inc. Leverage Ratio 13.42% 8.75% 12.33%
Slide 20: Market Data
MARKET DATA (DEPOSIT DATA AS OF JUNE 30, 2013 FROM FDIC DEPOSIT MARKET SHARE REPORT) Total Assets ($ millions) Institution: Alaska Banks June 30, 2013 Wells Fargo Bank, NA AK data not available First National Bank Alaska 2,940,495 Proforma(1) 1,334,575 Northrim Bank 1,158,281 KeyBank, NA AK data not
Slide 21: Northrim's Alaska Footprint, Post Acquisition
NORTHRIM’S ALASKA FOOTPRINT, POST ACQUISITION 100% Trans-Alaska Pipeline System Town Northrim Locations Future Northrim Locations Alaska Native Regional Corporation Regions Alaska Railroad
Slide 22: Southeast Alaska
SOUTHEAST ALASKA Photo courtesy of Joe Beedle: Juneau, Alaska Marine Highway
Slide 23: Southeast Alaska
SOUTHEAST ALASKA Southeast Alaska- Photo courtesy of Joe Beedle: John O’Connell Bridge and Mount Based Banking Edgecumbe, Sitka Alaska Company Founded in 1935 Population in Southeast Alaska reached a new record of 74,423 in 2012 and between 2010 and 2012 was the fastest-growing region of the state w
Slide 24: Southeast Alaska
SOUTHEAST ALASKA Financially Attractive Opportunities for Additional Growth Penetration into a diverse market New product offerings and higher lending limits to existing Alaska Pacific customers Affiliates opportunities Opportunity for significant operational efficiencies and cost synergies Accretiv
Slide 25: Alaska's Resource-Based Economy
ALASKA’S RESOURCE-BASED ECONOMY All Other 34% Federal 35% Petroleum Source: Alaska Institute of Social 31% and Economic Research, 2010
Slide 26: Leadership to Build Alaska's Economy
LEADERSHIP TO BUILD ALASKA’S ECONOMY Join the conversation at ALASKANOMICS.COM Northrim’s Economic Overview Is Now Available
Slide 27: Northrim Bank Mission, Vision and Values
Northrim Bank MISSION TO BE ALASKA’S MOST TRUSTED FINANCIAL INSTITUTION We are committed to adding value for our customers, communities, and shareholders. VISION TO BE ALASKA’S PREMIER BANK AND EMPLOYER OF CHOICE We will be a leader in financial expertise, products and services, focused on continuou
Slide 28: Questions?
QUESTIONS? pi Macs ACHIEVE MORE. « — Northrim Bank