Bank Of Commerce · PSE:BNCOM
Bank Of Commerce — IPO Roadshow (March 2010)
21 slides from Bank Of Commerce's IPO roadshow presentation, Mar 15, 2010
Slide 1: Stock Offering Investor Presentation
Stock Offering Investor Presentation Patrick J. Moty, President and CEO Samuel D. Jimenez, SVP & Chief Financial Officer
Slide 2: Cautionary and Forward Looking Statements
We have filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents we have filed with the SEC for more complete information about us an
Slide 3: Offering Summary
Issuer Bank of Commerce Holdings NASDAQ Global Market - BOCH Type of Security Common Stock Transaction Size 6,000,000 shares Over-Allotment Option 900,000 shares Share Price $5.25 (as of 03/12/10) Pre-Offering Market Capitalization $45.7 million Pre-Offering Shares Outstanding 8,711,495 Use of Proce
Slide 4: Offering Rationale
Offering Rationale Complements our already strong balance sheet to further position ourselves to remain opportunistic within our markets Extraordinary opportunity to capitalize on market disruption within Northern California Opportunistic FDIC-assisted transactions Selective traditional whole bank a
Slide 5: Experienced Management
Experienced Management Our management team has over 150 years of combined industry experience and strong ties to the Redding and Northern California markets
Slide 6: Company Profile
Company Profile Headquarters Redding, California Four branches in two distinct markets Total Assets(1) $813.4 million Shareholders' Equity(1) $68.8 million Average Volume (52 week)(2) 1,848 shares per day Insider Ownership(1) 27% Institutional Ownership(1) 2% (1) As of December 31, 2009 (2) As of Ma
Slide 7: Our Current Markets
Our Current Markets Sacramento - Arden - Arcade - Roseville, CA MSA Redding, CA MSA We are ranked third in deposit market share within the Redding, California MSA Our brand recognition allows us to capitalize on new clients dislocated from troubled institutions Our management has long standing ties
Slide 8: Increasing Distressed Opportunities
Increasing Distressed Opportunities California Institutions with Texas Ratios Greater than 50%(1) California banks and thrifts with assets less than $1 billion. Texas ratio defined as NPAs + 90 days PD / tang common equity plus loan loss reserves Does not include our non controlling interest in subs
Slide 9: Strategic Direction
Strategic Direction Execute FDIC-assisted transactions that complement and expand our franchise Acquire healthy franchises in San Francisco's East Bay and in our current footprint The realization of increased regulatory costs and burdens will force many banks to sell Fatigued boards and management t
Slide 10: Diversified Loan Portfolio
Diversified Loan Portfolio Total Loan Portfolio(1) RE - Construction RE - CRE RE - ITIN RE - Mortgage RE - Other Commercial & financial Other Loan Portfolio Restructuring Over the past few years we have significantly reduced our exposure to construction credits Total Loans: $601.4 million Average Yi
Slide 11: Detailed Loan Breakouts
Detailed Loan Breakouts(1) Real Estate Construction Investor Commercial Real Estate Owner Occupied Commercial Real Estate Source: SNL Financial LC and company reports (1) As of December 31, 2009
Slide 12: We've Been Opportunistic: ITIN Portfolio Loan Swap
We've Been Opportunistic Swapped 5 nonperforming credits totaling $14.0 million and cash of approximately $67.0 million for a pool of performing ITIN loans with a fair value of approximately $80.7 million ITIN (Individual tax identification number) loans are fully documented residential real estate
Slide 13: We've Been Opportunistic: Potential 2nd Loan Swap
We've Been Opportunistic We are currently evaluating another loan swap transaction Swap one nonperforming commercial & financial loan of approximately $7.4 million and $15.7 million cash for approximately $23.1 million of home equity term loans Weighted average loan size of $40,000 with a weighted a
Slide 14: We've Been Opportunistic: Mortgage Banking Acquisition
We've Been Opportunistic We acquired 51.0% of the Simonich Corporation, a state of the art residential mortgage broker headquartered in San Ramon (now rebranded Bank of Commerce MortgageTM) Prior to acquisition, we brokered loans through Simonich for over five years Simonich not only survived the mo
Slide 15: Credit Quality
Credit Quality(1) Nonperforming Assets (2) NPAs / total assets (line) Total Nonperforming assets (millions) (bar) As of December 31, 2009 Nonperforming assets consist of nonaccrual loans, loans 90 days past due and still accruing, and real estate acquired in foreclosure Excludes 90 days past due Non
Slide 16: Funding Strategy
Funding Strategy(1) Total Deposit Breakout Total Deposit Growth 15% CAGR Funding Summary Overall Cost of Deposits: 1.83% Cost of Average Int. Bearing Liab.: 1.87% We have subscribed to two internet based subscription programs that allows us to post our deposit rates nationally Generally these rates
Slide 17: Pro Forma Capital Ratios
Pro Forma Capital Ratios California Peers (Median Values) (3) BOCH as of 12/31/2009 BOCH as adjusted (1) Pro Forma Capital Ratios (1) Assumes that 5,714,286 shares of our common stock are sold in this offering at $5.25 per share (based on the closing price of our common stock on the NASDAQ Global Ma
Slide 18: Financial Metrics
Financial Metrics Source: SNL Financial LC and company reports
Slide 19: Historical Performance
Historical Performance Return on Average Equity (%) Net Interest Margin (%) Efficiency Ratio (%) Return on Average Assets (%) Bank of Commerce Holdings California Peers (1) Source: SNL Financial LC and company reports (1) California Peers consist of: AMRB, BMRC, CVCY, CVLL, CZNB, EXSR, FMCB, FNRN, G
Slide 20: February 2010 Financial Highlights (Bank Level)
February 2010 Financial Highlights (Bank Level) For the two month period ended February 28, 2010, we had net income of $1.2 million at the Bank level Net income included approximately $568,000 in one time gains on sales of investments Loan loss provisions for the period totaled $1.2 million Nonperfo
Slide 21: Patrick J. Moty, Samuel D. Jimenez
Patrick J. Moty Samuel D. Jimenez President & CEO SVP & Chief Financial Officer (530) 722-3953 (530) 722-3952 patm@reddingbankofcommerce.com samj@reddingbankofcommerce.com
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