Vantagesouth Bancshares Inc.

Vantagesouth Bancshares — Q1 2014 Earnings Presentation

15 slides from Vantagesouth Bancshares's earnings presentation, Apr 23, 2014

  1. Slide 1: VantageSouth Bancshares 2014 Q1 Earnings Conference Call

    VantageSouth Bancshares, Inc. NYSE: VSB 2014 Q1 Earnings Conference Call April 23, 2014

  2. Slide 2: Important information: Forward Looking Statements

    Important information 2 Forward Looking Statements Information in this presentation contains forward-looking statements with the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, inc

  3. Slide 3: VantageSouth quarterly operating trends

    VantageSouth quarterly operating trends 3 Core Pre-Tax, Pre-Provision Earnings* ($000) Operating Efficiency Ratio* (%) Loan Production ($mm) Tangible Book Value per Share $1,248 $5,981 $6,238 $6,840 $7,130 $0 $2,000 $4,000 $6,000 $8,000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 *Excludes gain on acqui

  4. Slide 4: Earnings profile

    Earnings profile 4  Core pre-tax, pre-provision earnings of $7.1mm • Continues positive trend since ECB merger completion  Record SBA quarter with $2.3mm of fee income, up from $1.9mm in Q4  Cost reductions continue to positively impact NIE and efficiency ratio • Operating efficiency ratio declin

  5. Slide 5: Net interest income

    Net interest income 5 GAAP Yield, Cost and Net Interest Margin (%) 0.76 0.51 0.59 0.69 0.69 4.91 5.12 4.90 4.91 4.80 4.24 4.67 4.39 4.31 4.19 0.00 1.50 3.00 4.50 6.00 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Cost of Interest-Bearing Liabilities Yield on Earning Assets NIM  Net interest income decrea

  6. Slide 6: Diverse drivers of noninterest income growth

    Diverse drivers of noninterest income growth 6 Noninterest Income Composition* ($000) *Excludes gain on acquisition and realized securities gains and losses $345 $1,052 $1,190 $794 $693 $515 $1,525 $1,512 $1,407 $1,315 $391 $1,096 $310 $468 $318 $1,119 $1,058 $1,525 $1,884 $2,341 $0 $1,250 $2,500 $3

  7. Slide 7: Noninterest expense

    $2,884 $4,687 $4,569 $4,376 $4,006 $644 $1,075 $1,105 $1,096 $1,030 $1,547 $2,408 $2,497 $2,600 $2,636 $5,991 $11,009 $10,034 $9,452 $9,014 $0 $4,000 $8,000 $12,000 $16,000 $20,000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Non-Interest Expense Composition* ($000) Noninterest expense 7  Operating noni

  8. Slide 8: Balance Sheet

    Balance Sheet 8  Total assets decreased $13mm during Q1 to $2.1bn driven by: • Loan balances declined by $4.5mm, including:  $16.9mm in SBA loan sales  $24mm decline in agricultural lending as a result of seasonality and increased competition • Deposits declined $17.4mm during Q1 after $53mm incr

  9. Slide 9: Asset quality data

    Asset quality data 9  Provision for loan losses totaled $1.3mm  Effective reserve, including ALLL and loan marks, is 2.54% of total loans  Effective reserve on non-PCI loans (excluding interest rate mark) was 1.15% of loans in 1Q14, which represents an approximately 1-for-1 reserve to nonperformi

  10. Slide 10: Capital

    Capital 10 11.2% 8.3% 8.3% 8.5% 8.5% 13.3% 10.3% 9.8% 9.9% 10.1% 14.7% 11.2% 13.0% 13.0% 13.2% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Tier 1 leverage ratio Tier 1 risk-based capital ratio Total risk-based capital ratio VantageSouth Bancshares Capital Ratios  Raise

  11. Slide 11: Creating a statewide community banking franchise

    Stanly Cabarrus Vance Richmond Anson Barnwell Greenwood Columbus Lenoir Wayne Cleveland Rutherford Sampson Richland Halifax Alleghany Mitchell Avery McDowell McCormick Transylvania Martin Jackson Cherokee Graham Swain Haywood Hertford Northampton Dorchester Bamberg Jaser Charleston Colleton Allendal

  12. Slide 12: Strong strategic rationale for pending Yadkin merger

    Strong strategic rationale for pending Yadkin merger 12  Largest community bank in North Carolina with $4 billion in assets and a statewide presence, based in one of the strongest U.S. growth markets  Significant presence in Raleigh and Charlotte  Complementary business lines drive diversified re

  13. Slide 13: Comparable group trading analysis

    1.63x 1.71x 1.81x 1.82x 1.86x 2.09x 2.17x 2.32x 2.39x 2.54x 2.74x 3.68x 4.00x UCBI UBSH YDKN VSB SFNC WSBC CHCO UBSI RNST PNFP SCBT OZRK HOMB Comparable group trading analysis 13 12.7x 12.8x 12.9x 12.9x 12.9x 13.5x 13.7x 14.5x 15.0x 15.6x 16.9x 19.3x SFNC UBSH WSBC YDKN CHCO RNST SCBT UCBI UBSI PNFP

  14. Slide 14: Additional information about the merger and where to find it

    Additional information about the merger and where to find it 14 In connection with the proposed merger, Yadkin has filed with the SEC a Registration Statement on Form S-4 that includes a preliminary joint proxy statement of Yadkin and the Company and a preliminary prospectus of Yadkin, as well as ot

  15. Slide 15: VantageSouth Bancshares, Inc. contact

    VantageSouth Bancshares, Inc. NYSE MKT: VSB Contact: Terry Earley (919) 659-9015 terry.earley@vsb.com April 23, 2014

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