Waccamaw Bankshares — Kiawah 2007
32 slides from Waccamaw Bankshares's conference presentation, May 18, 2007
Slide 1: Kiawah 2007
Kiawah 2007 Vining Sparks Howe, Barnes, Hoefer & Arnett, Inc. May 18, 2007 James G. Graham President and Chief Executive Officer David A. Godwin Senior Vice President and Chief Financial Officer Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements. These statements are not historical facts, but rather are based on our current expectations, estimates and projections about our industry, our beliefs and assumptions. Words including “may,” “will,” “could,” “would,
Slide 3: Waccamaw Bankshares, Inc. 1997 Celebrating 10 Years
Waccamaw Bankshares, Inc. 1997 Celebrating 10 Years
Slide 4: Company Overview
Company Overview
Slide 5: About Waccamaw Bank
About Waccamaw Bank Headquartered in Whiteville, North Carolina State-chartered community bank formed in 1997 Primary market area is Southeastern North Carolina and Northeastern South Carolina including the Wilmington, North Carolina MSA and the Myrtle Beach-North Myrtle Beach-Conway, South Carolina
Slide 6: Business Plan
Business Plan Focused on high level of customer service to individuals and small businesses Strong presence in high growth markets of North and South Carolina’s coastal region Committed to franchise growth and strengthening EPS Seasoned and proven management Favorable core deposit funding with susta
Slide 7: Market Overview
Market Overview Source: Microsoft MapPoint
Slide 8: Area Growth
Area Growth Fastest-Growing Metropolitan Statistical Areas: April 1, 2000 to July 1, 2006 #17. Myrtle Beach-Conway-North Myrtle Beach, SC #27. Wilmington, NC Fastest-Growing Metropolitan Statistical Area: 2005 to 2006 #4. Myrtle Beach-Conway-North Myrtle Beach, SC Fastest-Growing U.S. Counties 2005
Slide 9: High Growth Markets
High Growth Markets $0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 Total Deposits for Six County Market Area as of June 30, 2006 was $12,005,858,000 Columbus County Brunswick County New Hanover County Bladen County Lancaster County Horry County June 30,
Slide 10: Management Team
Business Experience Title Executive Management Team Senior Vice President and Chief Lending Officer, Waccamaw Bankshares, Inc., Whiteville, NC, 2007-Present and Waccamaw Bank, Whiteville, NC 2007-Present; prior to that, Executive Vice President and State President of First Community Bank, Winston-Sa
Slide 11: Financial Data
Financial Data
Slide 12: Financial Highlights
Financial Highlights LTM 3/31/07 Assets $431,057,000 Loans $323,367,000 Deposits $357,482,000 Net Income $994,478 EPS $.21 % Increase From 3/31/06 28% 19.3% 26.1% 17.6% 14.3%
Slide 13: Loan and Deposit Composition
Loan and Deposit Composition 14% 1% 35% 4% 5% 26% 14% 1% 1 to 4 family Multi-family Construction Consumer Home Equity Commercial RE C&I Other Loan Composition March 31, 2007 $328.4 million of gross loans $357.8 million of total deposits 10% 2% 10% 26% 17% 35% DDA Savings NOW CD's <$100,000 MMDA CD's
Slide 14: Profitability
Profitability 52.3 50.3 53.4 51.8 54.7 0.0 15.0 30.0 45.0 60.0 (%) 3.7 3.6 3.7 3.7 4.2 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 (%) 1.02 1.00 1.11 1.13 1.02 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 (%) Net Interest Margin (%) Efficiency Ratio (%) ROAA (%) 14.07 14.98 13.4
Slide 15: Strong Balance Sheet Growth
Strong Balance Sheet Growth 0.0 100.0 200.0 300.0 400.0 500.0 Total Assets Source: SNL Financial $ in millions
Slide 16: Strong Balance Sheet Growth
Strong Balance Sheet Growth 0.0 100.0 200.0 300.0 400.0 500.0 Total Loans Source: SNL Financial $ in millions
Slide 17: Strong Balance Sheet Growth
Strong Balance Sheet Growth 0.0 100.0 200.0 300.0 400.0 500.0 Total Deposits Source: SNL Financial $ in millions
Slide 18: Net Interest Margin
Net Interest Margin Net Interest Margin 0.00 2.00 4.00 6.00 8.00 Interest Income 6.33 5.66 5.3 6.04 7.2 Interest Margin 2.62 2.04 1.61 2.35 2.98 Net Interest Margin 3.71 3.61 3.69 3.69 4.22 Provision for Loan Loss 0.52 0.41 0.39 0.46 0.41
Slide 19: Comparison of Total Assets
$40,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Waccamaw Bankshares, Inc. Comparison of Total Assets Zia 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 20: Net Income
Net Income 2006 Net Income of $3,652,000 20.32% increase over the $3,035,373 earned in 2005
Slide 21: Nonperforming Assets
Nonperforming Assets $ in thousands Nonaccrual loans $ 1,181 $ 1,711 $ 1,723 $ 701 $ 1,800 Loans past due 90 days or more and still accruing interest 628 486 173 Total nonperforming loans 1,521 1,961 2,351 1,187 1,973 Other real estate and repossessed personal property 140 82 Total nonperforming ass
Slide 22: Bank of Heath Springs Acquisition
Bank of Heath Springs Acquisition $8.0 million cash acquisition of $20 million bank in Lancaster county Access to existing growth market and all of South Carolina Southeast of Charlotte, NC Cost effective acquisition Closed April 28, 2006 Accretive Acquisition Opened de novo branch in Horry County i
Slide 23: Performance versus Carolina Peers
399,581 1.02 14.1 54.7 289.5 21.4 Rank (out of 30) 9 6 6 2 5 Performance versus Carolina Peers Source: SNL Financial Peer Group includes banks traded on major exchanges only Total Core Core Efficiency Price/ Price/ Company City State Assets ROAA ROAE Ratio Tangible Book LTM EPS SCBT Financial Corpor
Slide 24: Performance versus Carolina Peers
399,581 1.02 14.1 54.7 289.5 21.4 Rank (out of 10) 1 1 2 1 4 Performance versus Carolina Peers Source: SNL Financial Peer Group includes banks traded on major exchanges only Date Total Core Core Efficiency Price/ Price/ Company City State Established Assets ROAA ROAE Ratio Tangible Book LTM EPS Capi
Slide 25: Historical Efficiency Ratio versus Carolina Peers
Historical Efficiency Ratio versus Carolina Peers 54.7 51.8 53.4 50.3 52.3 68.0 66.9 70.5 151.7 59.4 59.3 65.4 65.1 63.0 67.6 67.9 65.4 65.1 0.0 15.0 30.0 45.0 60.0 75.0 90.0 105.0 120.0 135.0 150.0 165.0 (%) Waccamaw Peer Median
Slide 26: Split Adjusted Stock Prices since Founding
Waccamaw Bankshares: Split Adjusted Stock Prices since Founding (2) Waccamaw Bankshares, Inc. Split-Adjusted Stock Prices Since February 1997, Waccamaw Bankshares has significantly outperformed the major stock indexes (1) - WBNK: 452.8% - Dow Jones: 95.9% - S&P 500: 91.2% - NASDAQ Bank Index: 144.8%
Slide 27: rouly
rouly SERVICES svanauun un muswusarwww.equityresearch.com naw Bankshares, Lie. (WBNK- NASDAO Capital WACCAMAW’ BANK
Slide 28: 2007 1st Quarter Results
Waccamaw Bankshares, Inc – 2007 1 st Quarter Results % Increase Weighted O/S Shares After Tax Earnings 1 st Qtr 2007 $994,478 After Tax Earnings 1 st Qtr 2006 $845,611 17.60% Earnings (basic) per Share 2007 $0.21 4,906,151 Earnings (basic) per Share 2006 $0.18 16.67% 4,576,226 Total Assets 1 st Qtr
Slide 29: First Quarter of 2007 Press Release
First Quarter of 2007 Press Release Waccamaw Bankshares, Inc. Announces Earnings of $994,478 for the First Quarter of 2007 April 18, 2007 Whiteville, NC- 2007- Waccamaw Bankshares (NASDAQ: WBNK), the parent company of Waccamaw Bank, announced unaudited net income for the first quarter of of $994,478
Slide 30: Investment Highlights
Investment Highlights Solid participation in dynamic region Significant growth opportunities in coastal Carolinas Strong identity in the rapidly growing coastal market Experienced and disciplined management team Proven and consistent history of balancing growth and improved earnings performance Stro
Slide 31: Outlook for 2007
Outlook for 2007 Build upon history of consistent performance Expansion in Wilmington and Myrtle Beach MSA’s Improve upon core funding More efficiently utilize new office capacity Increase market share through strategic marketing Capitalize on customers in transition as a result of recent merger of
Slide 32: Waccamaw Bank
TW) Waccamaw ‘BANK