First NBC Bank Holding Company
First NBC Bank — Investor Presentation (September 2015)
25 slides from First NBC Bank's investor presentation, Sep 14, 2015
Slide 1: September 14, 2015 Exhibit 99.1
September 14, 2015 NASDAQ: FNBC Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that are not historical facts, including statements accompanied by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “preliminary,” or similar words, constitute “forward-looking statements” within the meaning of
Slide 3: Company Profile
Company Profile 3*As of June 30, 2015 Headquarters: New Orleans, LA Founded: 2006 Offices: 35 full service branches Full Time Employees*: 539 Total Assets*: $4.1 billion Shareholders’ Equity*: $469.9 million Market Capitalization*: $684.8 million Avg. Daily Trading Volume*: 68,558 shares
Slide 4: Performance Highlights
Performance Highlights • Strong loan growth - 5.7% compared to December 31, 2014 and 13.8% compared to June 30, 2014 • Driven by increases in construction, commercial real estate and commercial loans • Crestview acquisition added $21.5 million, or 1.0%, to the loan portfolio as of June 30, 2015 • St
Slide 5: Quarter Highlights
5 Quarter Highlights • Improvement in EPS over the linked- quarter and prior year quarter • Continued loan growth and loan demand • Strong credit quality ($ in thousands; except per share data) 2Q15 1Q15 Linked - Quarter Change 2Q14 2Q15 vs. 2Q14 Change Net Income $17,192 $16,068 7.0% $12,699 35.4%
Slide 6: Financial Trends: Balance Sheet
6 Financial Trends Balance Sheet 2Q15 1Q15 4Q14 3Q14 2Q14 2Q15 vs. 2Q14 Change ($ in millions) Total Assets $ 4,127 $ 4,069 $ 3,751 $ 3,634 $ 3,568 15.6% Gross Loans 2,933 2,904 2,774 2,699 2,577 13.8% Total Deposits 3,397 3,366 3,121 2,971 2,958 14.9% Total Equity 470 450 436 424 409 14.8% Total Eq
Slide 7: Financial Trends: Asset Quality
7 Financial Trends Asset Quality 2Q15 1Q15 4Q14 3Q14 2Q14 Nonperforming Loans to Total Loans 1.25% 0.84% 0.82% 0.90% 0.85% Nonperforming Assets to Total Assets 1.00% 0.73% 0.76% 0.82% 0.76% Allowance for Loan Losses to Total Loans 1.72% 1.56% 1.53% 1.49% 1.45% Allowance for Loan Losses to Nonperform
Slide 8: Income Statement Trends
8 Income Statement Trends 2Q15 1Q15 4Q14 3Q14 2Q14 ($in thousands, except per share data) Interest income $ 38,508 $ 39,106 $ 38,956 $ 38,668 $ 37,193 Interest expense 12,402 11,484 10,865 10,908 10,643 Net interest income 26,106 27,622 28,091 27,760 26,550 Provision for loan losses 5,600 3,000 3,00
Slide 9: Non-Interest Income Trends
9 Non-Interest Income Trends 2Q15 vs. 2Q14 2Q15 vs. 1Q15 2Q15 1Q15 4Q14 3Q14 2Q14 $ Change % Change $ Change % Change ($ in thousands) Service charges on deposit accounts $ 585 $ 559 $ 542 $ 548 $ 498 $ 87 17 % $ 26 5 % Investment securities gain (loss), net — (50) — 79 56 (56) 100 % 50 100 % Gain (
Slide 10: Non-Interest Expense Trends
10 Non-Interest Expense Trends 2Q15 vs. 2Q14 2Q15 vs. 1Q15 2Q15 1Q15 4Q14 3Q14 2Q14 $ Change % Change $ Change % Change ($ in thousands) Salaries and employee benefits $ 7,689 $ 6,907 $ 7,072 $ 6,456 $ 5,942 $ 1,747 29 % $ 782 11 % Occupancy and equipment expenses 3,009 2,928 2,843 2,737 2,684 325 1
Slide 11: Increasing Profitability
11 Increasing Profitability Net Income Net Income by Quarter 18,000 17,000 16,000 15,000 14,000 13,000 12,000 $ (T ho us an ds ) 2Q14 3Q14 4Q14 1Q15 2Q15 Basic EPS Basic EPS 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 $ (D ol la rs ) 2Q14 3Q14 4Q14 1Q15 2Q15
Slide 12: Profitability
12 Profitability Return on Average Common Equity Return on Average Common Equity 17.00% 16.00% 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 2010 2011 2012 2013 2014 2015 YTD 11.42% 14.28% 15.77% 14.88% 15.17% 16.46% Return on Average Assets Return on Average Assets 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0
Slide 13: Profitability: Net Interest Margin and Efficiency Ratio
13 Profitability Net Interest Margin Net Interest Margin 4.00% 3.00% 2.00% 1.00% 0.00% 2010 2011 2012 2013 2014 2015 YTD 3.09% 3.44% 3.36% 3.11% 3.34% 3.01% GAAP Non-GAAP* Efficiency Ratio 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 2010 2011 2012 2013 2014 2015 YTD 62.57% 61.86% 62.56% 68.50%
Slide 14: Loan Composition
14 Loan Composition Loan Composition at 6/30/15 Loan Composition at 6/30/14 6/30/2015 12/31/2014 6/30/2014 Loan Growth 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 $( Th ou sa nd s) Commercial real estate Commercial Loan Composition by Industry • Yield on loans: 4.87% YTD • 33.5% of rea
Slide 15: Total Loans Percentage Change
Total Loans Percentage Change 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 $ (T ho us an ds ) 2010 2011 2012 2013 2014 2015 YTD 15 Annual Loan Growth • Experienced double-digit loan growth over each of the last five years • Expects to achieve similar growth results in 2015 •
Slide 16: Deposit Composition
16 Deposit Composition Deposit Composition at 6/30/15 Deposit Composition at 6/30/14 6/30/15 12/31/14 6/30/14 Deposit Growth 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 $ (T ho us an ds ) NOW deposits MMA deposits Certificates of deposit • Rate on Interest-Bearing Deposits: 1.45% Y
Slide 17: Deposit Composition
17 Deposit Composition Certificates of deposit Money market deposits NOW accounts Noninterest- bearing demand Savings deposits Deposit Composition 4,000,000 3,000,000 2,000,000 1,000,000 0 $ (T ho us an ds ) 2011 2012 2013 2014 2015 YTD Interest rate on deposits Interest Rate on Deposits 2.50% 2.00%
Slide 18: Net Interest Margin
18 Net Interest Margin Loan Yield NIM Cost of Funds 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2Q14 3Q14 4Q14 1Q15 2Q15 5.28% 5.18% 5.08% 5.01% 4.72% 3.35% 3.37% 3.33% 3.16% 2.86% 1.55% 1.54% 1.50% 1.44% 1.44% • Cost of deposits decreased 11 bps compared to 2Q14
Slide 19: Tax Credit Overview
19 Tax Credit Overview • Tax credits are an integral part of First NBC’s commercial banking business • Management has a deep understanding of this business which is core to First NBC’s corporate strategy • Well-established federal and state programs • Promotes private investment in low income areas,
Slide 20: Federal New Markets Tax Credit Program
20 Federal New Markets Tax Credit Program Round Award # of Applications # of Recipients Total Awarded (in millions) First NBC Award (in millions) Award Date 5 2007 258 61 $3,909 $ - Oct-07 6 2008 239 102 4,960 - Oct-08 7 2009 249 99 5,000 - Oct-09 8 2010 250 99 3,500 28 Feb-11 9 2011 314 70 3,623 40
Slide 21: Tax Credit Investments & Loans
21 Tax Credit Investments & Loans (1) Bank Owned is First NBC Bank Federal NMTC allocations from 2011-2013 of $118.0 million. (2) The Company made an equity investment of $5.7 million in various Federal NMTC projects. This investment generated Federal NMTC. (3) Amount represents equity investments i
Slide 22: Investment in Tax Credit Projects
22 • $167.7 million of Federal New Market and Low Income Housing tax credits have been awarded ($66.2 million realized through December 31, 2014, $101.5 million in remaining benefits to be realized) • As of June 30, 2015, the Company had $16.9 million invested in Federal Rehabilitation Tax Credit pr
Slide 23: Correction of Immaterial Errors
23 Correction of Immaterial Errors • The Company identified errors in the accounting for its investments in certain tax credit entities during its quarterly financial statement close process • Errors were not material to prior period consolidated financial statements or anticipated annual results fo
Slide 24: Impact of Correction of Errors
24 Impact of Correction of Errors For the Three Months Ended June 30, 2015 For the Three Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 (In thousands) Pre-Tax Net of tax Pre-Tax Net of tax Low-Income Housing (1) $ (253) $ (164) $ (353) $ (229
Slide 25: Acquisition Activity
25 Acquisition Activity • On December 30, 2014, First NBC entered into an Agreement and Plan of Reorganization with State Investors Bancorp, Inc. (SIBC), a full-service commercial bank headquartered in Metairie, Louisiana. The Company expects to close the transaction in the fourth quarter of 2015. •
First NBC Bank Holding — Investor Presentation (September 2015) on 6ix