Bank Of Commerce · PSE:BNCOM
Bank Of Commerce — Investor Presentation (August 2016)
26 slides from Bank Of Commerce's investor presentation, Aug 29, 2016
Slide 1: Investor Presentation August 2016
bank of | holdings commerce INVESTOR PRESENTATION August 2016
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT During the course of this presentation we may make certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our management's and other experts’ current expectations, belief
Slide 3: Stock Profile
STOCK PROFILE NASDAQ Symbol Recent Price (08/19/16) Market Cap (03/19/16) Shares Outstanding (08/19/16) Average Volume (3 month) Price/Book (08/19/16) Institutional Ownership (06/30/16) Insider Ownership (06/30/16) BOCH $6.82 $91.4 million 13.4 million 22,604 101% 32.6% 6.7% bank of | holdings comme
Slide 4: Investment Considerations
INVESTMENT CONSIDERATIONS ° New executive management team that has extensive knowledge of Northern California markets * Conservative Balance Sheet that has recently been reconfigured: * Reduced high cost wholesale funding sources °* Redeemed SBLF preferred stock before annual dividend increased to 9
Slide 5: Company Overview
COMPANY OVERVIEW bank of | holdings commerce = Cy
Slide 6: Bank Holding Company for Redding Bank of Commerce
BANK HOLDING COMPANY for = ]@) REDDING BANK OF COMMERCE * Total Assets $1.1 billion ° Headquartered Redding, CA ° Banking Offices 9 ° ATM Locations 12 a @ ser ° Year Established 1982 ° Employees 200 bank of | holdings commerce =e,
Slide 7: Executive Management
EXECUTIVE MANAGEMENT Randall S. Eslick Samuel D. Jimenez James A. Sundquist Robert H. Muttera President & CEO Executive Vice President Executive Vice President Executive Vice President Chief Operating Officer Chief Financial Officer Chief Credit Officer bank of commerce holdings
Slide 8: Growth Strategies
GROWTH STRATEGIES ° Leverage our investment in: * Our recently hired group of Sacramento commercial bankers * Our SBA lending division * Our five retail banking offices ° Aggressively recruit experienced bankers with portfolios of loyal customers ° Provide exceptional service and technology to attra
Slide 9: Market Data — Redding
MARKET DATA — REDDING * 2015 population SMSA 180 thousand ¢ Annual population growth rate 2010-2015 0.57% * Median family income $44,500 ¢ Unemployment rate 7.50% * BOCH deposits (6/30/16) $475.0 million (17.4% of the mkt) bank of | holdings commerce aER 9
Slide 10: Market Data — Sacramento
MARKET DATA — SACRAMENTO * 2015 population SMSA 2.274 million ¢ Annual population growth rate 2010-2015 1.31% * Median family income $71,500 ¢ Unemployment rate 5.50% * BOCH deposits (6/30/16) $274.9 million (0.6% of the mkt) bank of | holdings commerce =
Slide 11: Cost to Restructure the Company
COST TO RESTRUCTURE THE COMPANY ° Write-off of mortgage company note receivable of $1.392 million (2014) * Former CEO severance cost of $1.023 million (2014) * Retail office acquisition cost of $927 thousand (2015 and 2016) * Swap cancellation loss of $2.325 million (2016) bank of | holdings commerc
Slide 12: Financial Performance
FINANCIAL PERFORMANCE bank of | holdings commerce =
Slide 13: Growing Franchise
GROWING FRANCHISE Average Total Assets 42011 42012 w4 2013 m42014 M2015 M2016 Q1 M2016 Q2 1,100,000 1,064,186 1,050,000 1,034,203 1,000,000 992,731 973,807 2 952,182 953,854 & 950,000 a 907,200 900,000 850,000 800,000 2011 2012 2013 2014 2015 2016 Q1 2016 Q2 bank of commerce
Slide 14: Deposit Growth While Lowering Rates
DEPOSIT GROWTH WHILE LOWERING RATES Average Total Deposits KeedTotal Deposits m+ Cost of Deposits 1,000,000 oa1ise 1° 900,000 824,173 1.00 800,000 ‘ 762,728 770,968 ” 693,796 706,988 700,000 0.80 600,000 % 500,000 oo 8 400,000 0.40 300,000 200,000 0.20 100,000 0 0.00 2011 2012 2013 2014 2015 2016Q1
Slide 15: Reduced Reliance on Wholesale Funding
REDUCED RELIANCE ON WHOLESALE FUNDING —*-FHLB —e-Brokered Time —eSubscription Time 140,000 125,000 120,000 109,000 100,000 80,000 75,000 75,000 75,000 Thousands 2011 2012 2013 2014 2015 2016 Q1 2016 Q2 bank of | holdings commerce ns,
Slide 16: Loan Growth While Maintaining Yields
LOAN GROWTH WHILE MAINTAINING YIELDS Average Total Loans ‘saTotal Portfolio Loans faasil Total LoansHeld for Sale —"~Loan Yields 800,000 7a2 ba 5.80 720,795 7 699,227 700,000 nee 625,166 607,11. 601,062 597,197 600,000 i ’ eae | 500,000 oz 400,000 5.00 8 : é 300,000 4.76 °° 200,000 ae 100,000 “ae >
Slide 17: Earnings
EARNINGS Net Income and Diluted EPS ‘ed Net Income —#+Diluted EPS 10,000 0.72 8,295 0.62 8,000 0.52 6,000 0.42 0.32 Thousands 2 Diluted EPS 0.22 2,000 0.12 0.02 0 -0.08 -960 -2,000 -0.18 2011 2012 2013 2014 2015 2016Q1i 2016 Q2 bank of | holdings ommerce
Slide 18: Earnings
EARNINGS ROAA/ROAE Kea ROAA —-ROAE 0.86 12.00 0.79 0.83 7.00 2.00 ROAE Percent ROAAPercent -3.00 2012 2016 Q1 2016 Q2 commerce
Slide 19: Non Interest Expense
NON INTEREST EXPENSE 30,000 25,000 20,000 15,000 Thousands ‘eed Non Interest Expense —lEfficiency Ratio 120 26,434 108.1 100 79.4 80 60 Percent 2014 2016 Q1 2016 Q2 bank of holdings commerce
Slide 20: Asset Quality Improvement
ASSET QUALITY IMPROVEMENT SeSdNon Performing Assets -@-NPAs/Total Assets 45,000 6.00 41,634 40,000 5.00 35,000 30,000 4.00 25,244 S 25,000 + . 23 22,174 z s 3.00 9 = 20,000 a 2013 2014 2016 Q1 2016 Q2 bank of holdings commerce
Slide 21: ALLL
ALLL 12,000 10,000 8,000 Thousands 3S 8 8 2012 kee Provision 2013 2014 -SALLL/Gross Loans 2016 Q1 2.50 2.00 1.50 Percent 2016 Q2 bank of commerce || holdings
Slide 22: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION Gross Loans = $754 Million AS OF JUNE 30, 2016 Commercial & CRE- Owner Industrial, 20% Occupied, 20% Residential, 13% CRE - Construction, 5% bank of | holdings commerce = (.
Slide 23: Deposit Composition
DEPOSIT COMPOSITION Total Deposits = $938 Million AS OF JUNE 30, 2016 Interest-Bearing Money Market, 22% Demand, 19% Savings, 11% bank of | holdings commerce nC;
Slide 24: Improved Deposit Composition
IMPROVED DEPOSIT COMPOSITION 35% 33% 30% 20% 20% 18% = 17% 15% 12% 10% 0% J Non-Interest —_Interest-Bearing Money Market Savings Certificates of Bearing Demand Demand Deposit bank of | holdings commerce =
Slide 25: Future
FUTURE ° Earn our continued independence by meeting our responsibilities to shareholders: ° Increase earnings per share ° Increase ROAA ° Increase ROAE ° Growth through leveraging our investments in: ° SBA division ° Recently acquired retail locations ° Sacramento commercial banking team bank of | h
Slide 26: aan
www.bankofcommerceholdings.com bank of | holdings commerce aan
Bank of Commerce Holdings — Investor Presentation (August 2016) on 6ix