Bank — 10th Annual D.A. Davidson Financial Services Conference 2008
34 slides from Bank's conference presentation, May 2, 2008
Slide 1: 10th Annual D.A. Davidson Financial Services Conference May 2008
10th Annual D.A. Davidson Financial Services Conference May 2008
Slide 2: Forward Looking Statements
2 Forward Looking Statements (Provisions of the Private Securities Litigation Reform Act of 1995) » Statements throughout today’s presentation that are not historical facts may be considered forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of im
Slide 3: The Bank Holdings Company
3 The Bank Holdings Company $627 Million Financial Services Company Nevada Security Bank Silverado Bank (a division of Nevada Security Bank) Granite Exchange Rocky Mountain 1031 Exchange
Slide 4: Capitalization
4 Capitalization Nasdaq TBHS Common Shares Outstanding - March 21, 2008 5.831 million Market Capitalization $48 million
Slide 5: 2007 Highlights
5 2007 Highlights » 2007 earnings of $1.7 million after $3MM provision » Total asset size of $627 million » “Smart” growth, not “No” growth » Successful assimilation of acquisition » Fifth year of enhanced net interest margins » Allowance at 1.54% of outstanding loans
Slide 6: The Bank As The Bank Holdings
As VS The BANK HOLDINGS
Slide 7: The Company Development Timeline
7 The Company Development Timeline Acquisition of NNB Holdings and Northern Nevada Bank November 2006 Silverado Bank, a division of NSB, opens its doors in Roseville, CA. March 2005 The Bank Holdings (TBHS) is made effective August 2003 The Bank Holdings completes a secondary offering and is listed
Slide 8: Our Mission
8 Our Mission » Retain experienced, proven banking staff who: » Have strong ties to the communities we serve » Are committed to our disciplined credit/sales culture » Target select individuals, professionals, and businesses looking for professional and attentive service » Capture market share from l
Slide 9: Experienced Management Team
9 Experienced Management Team Hal Giomi – Chairman, CEO Joe Bourdeau – President – TBHS David Funk – President – NSB Jack Buchold – EVP, CFO John Donovan – EVP, CCO E. Tim Ching – Regional President, Silverado Bank
Slide 10: Geographical Distribution
10 Geographical Distribution
Slide 11: Headquarters – Reno, NV
11 Headquarters – Reno, NV
Slide 12: Market Niches (Banking)
12 Market Niches (Banking) » Commercial Real Estate » Construction & Land Development » Business Lending » SBA Lending » Electronic Banking » Relationship Banking » Deposit Acquisition
Slide 13: Market Niches 1031 Division
13 Market Niches 1031 Division » Commercial Real Estate » Residential Real Estate » Relationship Banking » Deposit Acquisition » Diversified Geographic Markets
Slide 14: Financial Growth/Performance
Financial Growth/Performance
Slide 15: Balance Sheet Growth
15 Balance Sheet Growth 12/31/02 12/31/03 12/31/04 ($ in millions) Between year end ‘04 and ‘05, the Bank has achieved compounded growth rates of: •Assets: ** •Loans: ** •Deposits: ** Balance Sheet Growth ($ In Millions) Balance Sheet Growth
Slide 16: Deposit Mix
16 Deposit Mix At December 31, 2007 Non Interest Bearing Demand (14%) Interest Bearing Demand (2%) Savings (9%) Money Market (22%) IRA's ( 1%) Time Deposits < $100,000 (39%) Time Deposits > $100,000 (13%)
Slide 17: Loan Mix
17 Loan Mix At December 31, 2007 Commercial and Industrial (18%) Commercial Real Estate (49%) Construction and Land Development (31%) Consumer Loans (2%)
Slide 18: Loan/Deposit Ratio
18 Loan/Deposit Ratio Loan/Deposit Ratios Loan/Deposit Ratios
Slide 19: Loan Loss Reserve
19 Loan Loss Reserve Loan Loss Reserves Loan Loss Reserves
Slide 20: Net Income Growth
20 Net Income Growth -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 ($ in Thousands) FY 2007 FY 2003 FY 2004 FY 2005 FY 2006 ($565) $281 $1,412 $2,083 $1,729
Slide 21: Earnings per Share (Fully Diluted)
21 Earnings per Share (Fully Diluted) -$0.50 -$0.40 -$0.30 -$0.20 -$0.10 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Per Year 2003 2004 2005 2006 2007 ($0.40) $0.09 $0.41 $0.49 $0.29
Slide 22: Summary Ratios
22 Summary Ratios 5.1 -0.24% 1.54% 3.79% 3.91% 7.70% 90.4% 2.3% -3.8% 2007 6.8 N/A 1.08% 3.49% 2.61% 6.10% 95.8% 52.6% 55.8% 2005 5.6 5.4 Assets/Employee (mill) N/A -0.02% Net Loss/Avg. Total Loans 0.99% 1.17% All/Total Loans 3.12% 3.74% Net Int. Inc./A.E. Assets 1.67% 3.53% Int. Exp./A.E. Assets 4.
Slide 23: Promising, Diverse Markets
Promising, Diverse Markets
Slide 24: Target Markets, Banking
24 Target Markets, Banking » Slower, but continued economic development in all markets we serve » Attract deposits through broad product mix, competitive pricing, varied locations » Attract loans from: individuals, » Business owners and professionals » Small real estate developers » Small/medium - s
Slide 25: Target Markets, 1031 Division
25 Target Markets, 1031 Division » Slower, but continued economic development in all markets we serve » Nevada, California & Western states » Pacific Northwest, Hawaii, Arizona, Montana and Colorado » National expansion as opportunities become available » Cross over marketing with other deposit serv
Slide 26: Northern Nevada Market
26 Northern Nevada Market » Nevada has a small base, but is a fast growing state » Nevada’s growth in personal income, per capita income and real average earnings outpace the national average » Northern Nevada has had relatively high success in business expansion and attraction due to favorable tax
Slide 27: Northern California Market
27 Northern California Market » California remains most populous state in nation, 5th largest economy in the world » Roseville is in Placer County, among the fastest growing counties in California, Rancho Cordova is in Sacramento County » Substantial growth in the metropolitan area: » Population gro
Slide 28: Bozeman, Montana Market
28 Bozeman, Montana Market » Gallatin County (Bozeman) is home to approximately 90 high-tech companies » The Gallatin Valley has a highly educated and skilled work force, home of MSU » Bozeman was ranked 3rd Best Small City in the nation by 2000 Bizjournals.com Demographics Daily and was an All-Amer
Slide 29: Game Plan...
As T™BANK HOLDINGS Game Plan...
Slide 30: Expansion and Growth Plan
30 Expansion and Growth Plan » Improve Quality Earnings » Manage asset/liability mix » Increase fee income » Push expense management » 1.2 to 1.6% ROAA Target » 12 to 16% ROAE Target » Expand the Franchise » Expand Service & Product Offerings » Drive organic growth » National expansion of other fina
Slide 31: The Plan Has Been Growth
31 The Plan Has Been Growth. . . » The plan from inception has been strategic, aggressive growth, and we have succeeded thus far » Our plan is to continue smart, strategic growth, with management expertise, discipline and experience » We are moving through a transition period from pure growth, to a
Slide 32: Why invest in us?
32 Why invest in us? » Diversified geographic franchise » Moderate balance sheet growth » “Outstanding” CRA rating » Geographically diversified loan portfolio » Solid track record since public offering in 2004 » Experienced and proven Board, management and staff
Slide 33: First Quarter Update
33 First Quarter Update » Unchanged geographic franchise » Restructured balance sheet growth » Still an “Outstanding” CRA rating » Recently completed regulatory exam » Enhanced net income & net interest margin over same quarter of the previous year » Allowance at 1.57% of outstanding loans
Slide 34: The Bank As The Bank Holdings
As VS The BANK HOLDINGS
Bank Holdings — 10th Annual D.A. Davidson Financial Services Conference 2008 on 6ix