PB Financial Corporation · OTC:PBNC
PB Financial — Merger or Acquisition (September 2023)
11 slides from PB Financial's merger presentation, September 2023
Slide 1: A Combination of Like-Minded North Carolina Banks
A COMBINATION OF LIKE-MINDED NORTH CAROLINA BANKS TRANSACTION OVERVIEW SEPTEMBER 2023
Slide 2: Disclaimer
DISCLAIMER Cautionary Note Regarding Forward-Looking Statements This presentation includes “forward-looking statements” with respect to PB Financial Corporation (“PBNC”), Providence Bank, a wholly owned subsidiary of PBNC, Coastal Bank & Trust (“CABT”), and a proposed transaction pursuant to which C
Slide 3: Transaction Overview
TRANSACTION OVERVIEW ▪ PBNC, parent of Providence Bank (Rocky Mount, NC), will acquire 100% of CABT’s Transaction: outstanding common stock ▪ Pro forma ownership: 85% PBNC / 15% CABT ▪ 75% stock / 25% cash Consideration Mix: ▪ Shareholder election ▪ $10.00 per share in cash per share of CABT common
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ▪ Logical in-state market expansion combines adjacent franchise footprints around Jacksonville, Morehead City, Holly Ridge and Richlands markets and an LPO in New Bern ▪ Pro forma company will be led by an experienced management team and a like-minded Market board with unparall
Slide 5: Transaction Impact
TRANSACTION IMPACT Pro Forma Financial Impact Pro Forma Capital Ratio Impact (2) Accretive Accretive ~12.6% 2024 EPS 2025 EPS ~11.8% ~11.0% ~2.2 years > 26.0% TBV Payback Internal Rate Period(1) of Return ~ 7.5% Consolidated Pro Pro Forma Pro Forma Pro Forma Forma Bank Leverage Bank Tier 1 RBC Bank
Slide 6: Overview of Coastal Bank & Trust
OVERVIEW OF COASTAL BANK & TRUST Fact Sheet Franchise Footprint General Corporate Information Company Coastal Bank & Trust Ticker CABT President & CEO Richard G. Jefferson Headquarters Jacksonville, NC Date of Establishment April 13, 2009 # of Branches (including main office) 4 Jacksonville, Morehea
Slide 7: Key Metrics of Standalone Institutions
KEY METRICS OF STANDALONE INSTITUTIONS • PB Financial Corporation founded in Rocky • Coastal Bank & Trust founded in Mount, NC in 2006 Jacksonville, NC in 2009 • 6 Branches • 4 branches & an LPO in New Bern, NC • Bank-level Leverage Ratio above 12% • Leverage Ratio above 11% • 2023YTD ROAA of 1.71%
Slide 8: Overview of Bank Financial Profiles
OVERVIEW OF BANK FINANCIAL PROFILES Providence Bank Coastal Bank & Trust Balance Sheet Highlights 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2023YTD Balance Sheet Highlights 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2023YTD Total Assets ($000) $322,242 $452,347 $479,353 $587,241 $702,032 $849,755 $879,638 Total
Slide 9: Strong Pro Forma Business Mix
STRONG PRO FORMA BUSINESS MIX Pro Forma Consr & Other Consr & Other C&D HELOC C&D 3.2% 3.0% 18.7% 6.8% 17.6% C&I 1-4 Family 1-4 8.4% 1-4 23.0% C&I Family HELOC Family 8.0% HELOC 3.2% Loan Composition 10.2% 7.3% Multifamily 2.3% Owner - 9.4% $713.1M $161.6M Occ CRE Multifamily $875.0M 30.8% 8.2% Tota
Slide 10: Pro Forma Franchise Footprint
PRO FORMA FRANCHISE FOOTPRINT CABT Locations (4) CABT LPO Location (1) PBNC Locations (6) Source: S&P Capital IQ Pro 10
Slide 11: Additional Information
ADDITIONAL INFORMATION In connection with the proposed Transaction, PBNC and CABT will prepare a proxy statement/offering circular for a meeting of shareholders of CABT that will be called to, among other things, approve the definitive merger agreement with respect to the proposed Transaction. BEFOR
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