Sound Financial Bancorp, Inc. · NASDAQ:SFBC
Sound Financial Bancorp — IPO Roadshow (July 2012)
21 slides from Sound Financial Bancorp's IPO roadshow presentation, Jul 23, 2012
Slide 1: Sound Financial Bancorp, Inc. 2nd Step Conversion
Sound Financial Bancorp, Inc. SFBC 2nd Step Conversion July 2012 Laurie Stewart – President & Chief Executive Officer Matthew Deines – Executive Vice President & Chief Financial Officer Matthew Moran – Executive Vice President & Chief Credit Officer
Slide 2: Forward-looking statements and offering notice
This presentation may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking stateme
Slide 3: Forward-looking statement risk factors
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: • changes in economic conditions, either nationally or in our market area; • fluctuations in interest rates; • the risk
Slide 4: Experienced Management Team
4 Experienced Management Team Source: Prospectus, SNL Financial. Position: President & Chief Executive Officer Biography: Laura Lee Stewart joined Sound Financial in 1989. Prior to this, she was Senior Vice President/Retail Banking at Great Western Bank. Laurie was selected as an inaugural member of
Slide 5: Transaction Overview
(1) Sound Financial’s common stock is currently traded on the OTC Bulletin Board under the trading symbol “SNFL.” We expect Sound Financial Bancorp’s shares of common stock will trade on the Nasdaq Capital Market under the trading symbol “SFBC.” 5 Transaction Overview Offering Information: Sound Fin
Slide 6: Pro Forma Offering Range
6 Pro Forma Offering Range Minimum Midpoint Maximum Supermax of Range of Range of Range of Range Shares Sold in Offering 1,147,500 1,350,000 1,552,500 1,785,375 Exchange Ratio 0.70771 0.83260 0.95749 1.10111 Sale Price Per Share $10.00 $10.00 $10.00 $10.00 Gross Proceeds $11,475,000 $13,500,000 $15,
Slide 7: A History of Growth
* 1% (29,480 shares) were issued to the foundation established in connection with the conversion and reorganization. 7 A History of Growth 1991 To reflect its expanded membership, AGEFCU became Credit Union of the Pacific . 2003 In May 2003, the credit union converted to a mutual savings bank known
Slide 8: Our Franchise Footprint
Primary market area is in the Puget Sound region in western Washington, including the Seattle-Tacoma-Bellevue metropolitan area, and Clallam County, Washington. Diverse population of management, professional and sales personnel, office employees, manufacturing and transportation workers, service ind
Slide 9: Business strategy and objectives
Our principal objective is to remain an independent, community-oriented financial institution serving customers in our primary market area Our strategic plan targets individuals, small and medium size businesses, and professionals in our market area for loan and deposit growth In pursuit of these go
Slide 10: Reasons for Conversion and Offering
Our primary reasons for converting and raising additional capital through the offering include: to support organic growth by increasing our lending in the communities we serve; to improve our capital position during a period of significant economic uncertainty (although, as of March 31, 2012 Sound C
Slide 11: Use of Proceeds
Sound Financial Bancorp, Inc. may use proceeds it retains from the offering: to fund a loan to the employee stock ownership plan to purchase shares of common stock in the offering; to pay cash dividends to shareholders; to repurchase shares of our common stock for, among other things, the funding of
Slide 12: Profitability Trends – Recent Solid Performance
12 Profitability Trends – Recent Solid Performance EPS vs. NIM Efficiency Ratio vs. NIM Sound Financial has been profitable for the two fiscal years, largely influenced by NIM expansion over this time period. The efficiency ratio is at its lowest level since prior to 2009, which has been another fac
Slide 13: Nonperforming Asset Build-up
SNFL has experienced a significant increase in delinquencies and nonperforming assets since 2010, primarily in loans secured by one-to four-family properties and commercial and multifamily loans, in particular due to a $1.2 million commercial real estate loan and two one- to four-family loans of $98
Slide 14: Asset Quality Trends vs. Appraisal Peers
14 Asset Quality Trends vs. Appraisal Peers Nonperforming Assets(1) / Assets (%) Nonperforming Loans(2) / Loans (%) SNFL has not been immune to the economic downturn in recent years and as a result, nonperforming assets, provision for loan losses and net loan charge-offs have increased significantly
Slide 15: Capital Adequacy vs. Appraisal Peers
15 Capital Adequacy vs. Appraisal Peers Equity / Assets (%) Core Capital Ratio (%) SNFL has been running leaner than MHC peers and after completion of the 2nd step conversion, SNFL’s capital position will be more in line with peers. Source: Prospectus & SNL Financial; data as of 3/31/2012. Note: Pee
Slide 16: Loans: Historical Loan Trends
16 Loans Historical Loan Trends Sound Financial has experienced a compound annual loan growth rate of 7.65% since the end of 2007. Loan composition has shifted from consumer oriented loans into increased commercial and multifamily loans. Source: Prospectus Loan Composition 2007-YTD CAGR: 7.65% One -
Slide 17: Deposits: Historical Deposit Trends
17 Deposits Historical Deposit Trends Deposit composition and core deposit levels have remained steady since 2009, illustrating that there is a very stable customer base. Our strategic focus is continuing to emphasize lower cost core deposits to manage the funding costs of our loan growth. Source: P
Slide 18: Why Invest in Sound Financial Bancorp?
Experienced management team Successful execution of defined operating strategy and goals: Growth in core deposit base Earnings improvement through continued expense control Loan portfolio growth and diversification Franchise expansion with new branch banking centers Intends to pay quarterly dividend
Slide 19: Thank You
THANK YOU Sound Financial Bancorp, Inc.
Slide 20: Appendix
Appendix
Slide 21: Appraisal Peer Comparison
21 Appraisal Peer Comparison (1) Source: Prospectus & SNL Financial; financial data as of 3/31/2011, pricing data as of 7/11/2012. Note: Pricing for SNFL shown on fully converted basis. Pro Forma at midpoint of offering range Note: Texas ratio equal to (NPAs + Loans 90 Days PD) / (Tangible Common Eq