Bank Of The James Financial Group, Inc. · NASDAQ:BOTJ
Bank Of The James Financial — Investor Presentation (February 2014)
20 slides from Bank Of The James Financial's investor presentation, Feb 18, 2014
Slide 1: Bank of The James Financial Group, Inc.
Bank of The James FINANCIAL GROUP, INC.
Slide 2: Forward Looking Statements
Bank of The James FINANCIAL GROUP, INC. Forward Looking Statements This document may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” a
Slide 3: Who We Are
Bank of The James FINANCIAL GROUP, INC. Who We Are - Commercial banking franchise headquartered in Central Virginia also known as “Region 2000” - Founded in 1998 by group of experienced bankers, former bankers, and community leaders to fill a gap left by the acquisition by large banks of all local i
Slide 4: Our Market
Bank of The James FINANCIAL GROUP, INC. Our Market - Region 2000 MSA = 250,000+ . With addition of Roanoke and Charlottesville markets, total MSA increases to 756,000+ - Stable economic environment, real estate values - Major industries include 5 universities/colleges (Liberty University, Sweet Bria
Slide 5: Region 2000
Bank of The James FINANCIAL GROUP, INC. Region 2000 Blue – existing full service branches Red – existing loan production offices Green – planned future expansion (Appomattox, VA)
Slide 6: Strategy and Vision
Bank of The James FINANCIAL GROUP, INC. Strategy and Vision -We position ourselves to be the financial institution of choice in the markets we serve, providing a return to our shareholders by: -Community – relationship and friendship driven -Growth – Region 2000 and beyond -Capacity – personnel/tech
Slide 7: Experienced, Young Team
Bank of The James FINANCIAL GROUP, INC. Experienced, Young Team - Robert R. Chapman III – President and CEO, age 51 - J. Todd Scruggs – EVP and Chief Financial Officer, age 46 - Michael A. Syrek – EVP and Senior Loan Officer, age 42 - Harry P. Umberger – EVP and Senior Credit Officer, age 48 - Angel
Slide 8: Balance Sheet Growth
Bank of The James FINANCIAL GROUP, INC. - 100,000 200,000 300,000 400,000 500,000 Assets Gross Loans Deposits Balance Sheet Growth Focus on organic loan and deposit growth within the Bank’s market 2000 – 2013 CAGR Total Assets – 18% Gross Loans – 20% Deposits – 19% Source: SNL Financial
Slide 9: Record Earnings in 2013
Bank of The James FINANCIAL GROUP, INC. Record Earnings in 2013 Net income growth of 43% in 2013 over previous record net income in 2012! (1,000) (500)—500 1,000 1,500 2,000 2,500 3,000 3,500 Net Income Available to Common Source: SNL Financial
Slide 10: Record EPS in 2013
Bank of The James FINANCIAL GROUP, INC. EPS growth of 42% in 2013. BOTJ has been trading at under 10x EPS, compared to 15x for the overall industry. -$0.20 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 Diluted EPS Record EPS in 2013 Source: SNL Financial
Slide 11: Continual TBVS Growth
Bank of The James FINANCIAL GROUP, INC. Continual TBVS Growth The Company has grown Tangible Book Value Per Share at over 8% CAGR since 2000 providing strong value growth for the shareholder base.
Slide 12: Strong regulatory capital
Bank of The James FINANCIAL GROUP, INC. Strong regulatory capital - Bank level regulatory capital ratios at 2013 are strong: - Tier 1 Leverage Ratio 9.11% - Tier 1 Risk-based Ratio 11.93% - Total Risk-based Ratio 13.18% - Company tangible common equity ratio of 6.85% due to debt structure at holding
Slide 13: Net Interest Income Growth
Bank of The James FINANCIAL GROUP, INC. Net Interest Income Growth Net Interest Income has driven Net Income growth but Noninterest Income Contributed to Almost 16% of total revenue in 2013.—2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Total Noninterest Income Net Interest Income Sourc
Slide 14: Strong Margin
Bank of The James FINANCIAL GROUP, INC. Strong Margin The Company has maintained at or above a 4% margin in all but 2 years.—1.00 2.00 3.00 4.00 5.00 Margin Source: SNL Financial
Slide 15: Strong, Stable Core Deposits
Bank of The James FINANCIAL GROUP, INC. Strong, Stable Core Deposits Strong level of demand and transaction deposits and low level of time deposits resulting in low cost of funds and good interest rate risk profile. Demand17%Transaction14%Savings34%Money Market10%Time Deposits25%
Slide 16: Very well diversified loan portfolio
Bank of The James FINANCIAL GROUP, INC. Very well diversified loan portfolio The Company has been expanding with Loan Production Offices to continue the growth of the loan portfolio. Residential Mortgages26%Multi-family Mortgages6%Owner Occ. CRE16%Non Owner Occ. CRE11%Construction & Land10%Home Equi
Slide 17: Nonperforming Assets Improve
Bank of The James FINANCIAL GROUP, INC. Nonperforming Assets Improve Nonperforming assets spiked in 2010 driving up provision and credit costs. The Company has worked through problem assets and NPAs/Assets below 2008 level.—0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 NPA/Assets Source: SNL Financia
Slide 18: Focus on Shareholder Value
Bank of The James FINANCIAL GROUP, INC. Focus on Shareholder Value - All decisions the Company makes are focused on building value with a particular focus on EPS and TBVS as that drives shareholder value -$0.20 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 Diluted EPS EPS growth of 42% in 2013. TBVS 8% CAGR s
Slide 19: Investor Summary
Bank of The James FINANCIAL GROUP, INC. Investor Summary - Strong growth in EPS and TBVS - Record earnings in 2013 following prior record in 2012 - Asset quality is significantly improved - Experienced but young management team - Strong margin and low cost of funds - Revenue stream with growing net
Slide 20: Bank of The James FINANCIAL GROUP, INC.
Bank of The James FINANCIAL GROUP, INC.
Bank of the James Financial Group — Investor Presentation (February 2014) on 6ix