Pab Bankshares — Investor Presentation (June 2007)
28 slides from Pab Bankshares's investor presentation, Jun 19, 2007
Slide 1: June Investor Presentation
Burke Welsh President and Chief Executive Officer (770) 288-2230, ext. 2500 burkew@parkavebank.com Jay Torbert Chief Financial Officer (229) 241-2775, ext. jayt@parkavebank.com PAB Bankshares, Inc. North Valdosta Road Valdosta, GA 31602 (229) 241-2775 (229) 241-2774 fax June Investor Presentation Fi
Slide 2: Index
Index Forward-Looking Statement Notice Company Overview & Strategy 4 Organizational Culture & History Franchise Demographics Financial Highlight s Loan Portfolio 17 Deposit Portfolio Asset Quality & Capital Stock Performance & Ownership Summary
Slide 3: Forward-Looking Statement Notice
Forward-Looking Statement Notice This presentation contains “forward-looking statements” , as defined by federal securities laws. Statements regarding the future of the Company, including our outlook on earnings, dividends, stock performance, asset quality, asset or deposit growth, branching and mar
Slide 4: Company Overview
Valdosta Jacksonville Tallahassee Savannah * From 12-31-97 to 3-31-07 (annualized) Branch Loan production office Company Overview PABK at a glance: $1.2 billion in total assets 10-year CAGR = 9.3%* $183 million market cap Subsidiary Park Avenue Bank founded in 1956 branches + 3 loan offices in GA &
Slide 5: Strategic Objectives
Strategic Objectives Grow organically to $2 billion in total assets within 5 years. Average 12.5% growth per year. Expect 2007 growth to be more cautious – in the 7% - 10% range. Open 2-3 new offices (branches &/or LPOs) within footprint per year. Must balance overhead with growth. We expect new off
Slide 6: A Tradition of Community Banking
A Tradition of Community Banking Started in 1956 by James L. Dewar, Sr. with the desire “to be known as a bank that cares about people.” Finding good people and taking care of them is a top priority. We believe that engaged employees attract satisfied (and profitable) customers. In our South Georgia
Slide 7: Continuing A Tradition of Community Banking
Continuing A Tradition of Community Banking In 2000, we began a strategic plan to deploy our capital and funding into higher growth markets. In these higher growth, metropolitan markets, we cannot “bank the masses”. Our focus is primarily on a commercial-oriented, private banking model, with retail
Slide 8: Organizational History – South Georgia Franchise
Organizational History – South Georgia Franchise In 1956, the Bank was founded as a private bank in a small office on the corner of Park Avenue and Ashley Street in Valdosta, and we became a state-chartered bank in 1971. From 1982 to 1999, we acquired 3 banks and 2 thrifts in South Georgia and left
Slide 9: Organizational History – North Georgia Franchise
Organizational History – North Georgia Franchise In 2000, we began a de novo branching strategy to expand into higher-growth markets. We entered the Henry County market in South Metro Atlanta in the 4 th Quarter of 2000. From 2000 to present, we have opened 7 commercial loan production offices (“LPO
Slide 10: Organizational History – Florida Franchise
Organizational History – Florida Franchise At the end of 2000, we acquired an Ocala bank with $44 million in deposits and 2 branches to serve as a funding vehicle for our growth. We subsequently closed one of the branches. This acquisition gives us the right to branch statewide in Florida. We now ha
Slide 11: Franchise Demographic Data
Source: SNL Financial. Deposit Data as of June 30, 2006. Franchise Demographic Data
Slide 12: South Georgia Franchise
Valdosta Jacksonville Shading reflects the quantile distribution of the projected # households by county in 5 years. Source: SNL Financial Branch South Georgia Franchise
Slide 13: North Georgia Franchise
Percentages reflect estimated population growth 2006 2011. Shading reflects the quantile distribution of the projected # households by county in 5 years. Source: SNL Financial 45% 27% 20% 20% 9% 37% 26% 43% 17% 26% 30% 15% Branch Loan production office North Georgia Franchise
Slide 14: Florida Franchise
Percentages reflect estimated population growth 2006-2011. Shading reflects the quantile distribution of the projected # households by county in years. Source: SNL Financial Jacksonville Valdosta St. Augustine 10% 34% 21% 29% 30% 7% 12% 48% 16% 23% Branch Loan production office Florida Franchise
Slide 15: 1st Quarter 2007 Financial Highlights
1 st Quarter 2007 Financial Highlights Solid quarter, but not comparable to record 2006 results. Slowing loan demand Increased overhead from investments in new offices and personnel Competitive pricing pressures on loans & deposits in markets Inverted yield curve Diluted EPS $0.32 vs. $0.34 1Q06 ROA
Slide 16: Financial Highlights
Financial Highlights Record Net Income of $13.7 million, a 10% increase ROAE = 14.99% ROAA = 1.29% Net Interest Margin = 4.43% Efficiency Ratio = 55.9% No Provision for Loan Losses Dividends increased over 13% $0.54 per share 37% of earnings
Slide 17: Loans By Region
10-Year CAGR = 9.3%* ‘96-‘00 growth included $212mm in acquisitions S. GA loans decreased 49% during ‘02-‘03 clean-up * From 12-31-97 to 3-31-07 (annualized) Loans By Region
Slide 18: Loan Portfolio Stratification
65% of the loan portfolio either matures or reprices within the next 12 months. Loan Portfolio Stratification Since 3/31/2006: Commercial (C&I) increased $22mm (47%) Residential R/E increased $29mm (24%) Construction & Development increased $33mm (11%) Commercial R/E increased $23mm (10%)
Slide 19: Construction & Development Loans
Construction & Development Loans 65% of the residential construction is in spec 1-4 residential properties 70% of the commercial construction is in nonowner-occupied properties C&D loans represent 285% of the Bank’s Total Risk-Based Capital
Slide 20: Commercial Real Estate Loans
Commercial Real Estate Loans Owner-occupied CRE: 34% Office, 24% Retail, 42% Mixed-Use/Other Nonowner-occupied CRE: 34% Office, 35% Retail, 31% Mixed-Use/Other CRE loans represent 224% of the Bank’s Total Risk-Based Capital
Slide 21: Deposits By Region
10-Year CAGR = 9.5%* ‘96-‘00 growth included $264mm in acquisitions Let 26% of S. GA deposits “roll off” during ‘02-‘03 loan clean-up * From 12-31-97 to 3-31-07 (annualized) Deposits By Region
Slide 22: Deposit Portfolio Stratification
Deposit Portfolio Stratification At 3/31/07: 70% of all time deposits will mature within the next 12 months. 6% of deposits are from public funds.
Slide 23: Asset Quality
Asset Quality 3-Year Average Net Charge-offs = 0.04% of Average Loans 5-Year Average Net Charge-offs = 0.28% of Average Loans Allowance for Loan Losses/ Nonperforming Loans = 2.60x
Slide 24: Capital
Capital “Well Capitalized” $10.26 Book Value per share 8.7% Avg. Equity to Avg. Assets
Slide 25: Stock Performance
Moved listing to NASDAQ Nov. Included in Russell Index June 2003-2004 Stock Performance (as of May 31, 2007) 5-Year Return on Investment (w/ dividends reinvested) = 138.0% 1-Year Return on Investment (w/ dividends reinvested) = 5.5%
Slide 26: Stock Valuation Comparisons
Stock Valuation Comparisons
Slide 27: Stock Ownership
Stock Ownership 23.7% Insider Ownership (including vested options) Largest Shareholder (Dewar) controls 15.0% Executive Management controls 1.2% 13.5% Institutional Ownership Top 5 Institutional Owners manage 9.5% Top 5 Mutual Fund Investments Hilliard Lyons Senbanc Fund (SENBX) Heartland Value Fund
Slide 28: Summary
Summary We are managing PABK as a long-term investment Growth potential plus an attractive dividend Currently trading at a discount to other GA & FL $1-3B public banks Recent above-average financial performance Sound asset quality Experienced, committed management team Conservative loan underwriting