22 slides from Bcb Bancorp, Inc. (nj)'s IPO roadshow presentation, Sep 7, 2017
Slide 1: Common Equity Offering Investor Presentation
Common Equity Offering Investor Presentation September 2017
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement NO OFFER OR SOLICITATION This communication does not constitute an offer to sell, a solicitation of an offer to sell, the solicitation or an offer to buy any securities or a solicitation of any vote or approval . There will be no sale of securities in any jurisdiction in whic
Slide 3: Safe Harbor Statement
3 Safe Harbor Statement PARTICIPANTS IN THE TRANSACTION BCB, IAB and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of IAB in connection with the proposed transaction . Certain information regarding t
Slide 4: Offering Overview
4 Offering Overview Issuer: BCB Bancorp, Inc. Exchange / Listing: NASDAQ: BCBP Offering Format: Follow - On (Shelf Takedown) Security: Common Stock Base Deal Value: $40 million (100% primary) Overallotment: 15% (100% primary) Use of Proceeds: General Corporate Purposes Lock - Up Agreement: 90 day Bo
Slide 5: Investment Highlights
5 Investment Highlights • A growing $1.8bn commercial bank headquartered in Bayonne, NJ • 6 th largest independent commercial bank headquartered in NJ • Consistent historic double digit organic growth in loans and deposits • Strategic geographic positioning • Management has deep knowledge of Hudson
Slide 6: Overview of BCB Bancorp, Inc.
Assets: $1,816 mm Gross Loans: $1,596 mm Deposits: $1,496 mm Tangible Common Equity: $120 mm Market Cap: $161 mm Branches: 27 New York Hudson Monmouth Richmond Nassau Morris Bergen NJ NY CT Essex Union Middlesex PA 80 78 95 495 287 287 87 95 280 678 6 Overview of BCB Bancorp, Inc. Branch Footprint S
Slide 7: Experienced Management Team
7 Experienced Management Team Insiders account for 16.8% of BCBP ownership Name Title Years in Industry Years with Company Experience Thomas M. Coughlin President, CEO 30 17 Mr. Coughlin has served as the President and CEO of BCB Community Bank since May 28, 2014. He previously served as CFO and COO
Slide 8: Vibrant Market Demographics
8 Vibrant Market Demographics Source: SNL Financial and Company Documents; Deposit data as of June 30, 2016 Note: Market share data excludes Monmouth and Union counties BCBP Presence 2016 Market Statistics Deposit Market Share: Bayonne, Hoboken, Jersey City Rank Institution (ST) Branches Deposits ($
Slide 9: Company milestones 2014-2017
2014 Thomas Coughlin appointed CEO and President (8/4/14) Thomas Keating appointed CFO and SVP (3/17/14) Joseph T. Javitz joins BCB as CLO and SVP Sandra L. Sievewright joins BCB as CCO and CRO Increased quarterly dividend by $0.02 or 16.7% to $0.14 (4/23/14) Opened 2 new branches 2015 $0.3mm Series
Slide 10: Acquisition History
10 Acquisition History Source: SNL Financial Note: Represents data at announcement date; Historical maps only include active branches (1) Includes $7.5 million of IA Bancorp preferred stock Pamrapo Bancorp, Inc. IA Bancorp, Inc . (Pending) Allegiance Community Bank Headquarters: Bayonne, NJ Announce
Slide 11: Ethnically Diverse Communities and Niche Focus Strategy
11 Ethnically Diverse Communities and Niche Focus Strategy • Current footprint provides exposure to a variety of ethnic niche markets with growth potential • Hispanic and Asian communities comprise 43.7% and 15.3% of the Hudson County population, respectively • BCB staff is deeply rooted in the loca
Slide 12: IA Bancorp Transaction
12 IA Bancorp Transaction Transaction Rationale • Indus American Bank was founded primarily to meet the banking needs of the Southeast Asian - American community • Indus American Bank specializes in core business banking products for small - to medium - sized companies, with an emphasis on real esta
Slide 13: BCBP Financial Highlights
13 BCBP Financial Highlights (Dollars in Millions) At or for the year ended, Year to Date 12/31/13 12/31/14 12/31/15 12/31/16 06/30/17 Balance Sheet Total Assets 1,208 1,302 1,618 1,708 1,816 Total Net Loans 1,022 1,211 1,422 1,489 1,578 Securities 115 10 10 95 106 Deposits 969 1,029 1,274 1,392 1,4
Slide 14: Lending – Focus on Commercial Growth
$779 $964 $1,202 $1,257 $1,329 2013Y 2014Y 2015Y 2016Y 2017 YTD Commercial Real Estate Commercial Construction 14 Lending – Focus on Commercial Growth Total Loan Portfolio (6/30/2017) Originated Commercial Loans ($mm) Construction 4.6% Residential R.E. 13.7% Commercial R.E. 74.2% Commercial & Indust
Slide 15: Strong Asset Quality
15 Strong Asset Quality Nonaccruals / Loans (%) NPAs / Loans + OREO (%) NCOs / Avg. Loans (%) Reserves / Nonaccrual Loans (%) 1.98% 1.60% 1.63% 1.23% 0.97% 2013Y 2014Y 2015Y 2016Y YTD 4.52% 3.40% 2.99% 2.75% 2.47% 2013Y 2014Y 2015Y 2016Y YTD 0.07% 0.10% 0.03% 0.06% 0.03% 2013Y 2014Y 2015Y 2016Y YTD
Slide 16: Low Cost Deposit & Funding Profile
16 Low Cost Deposit & Funding Profile Deposits ($mm) Deposit Portfolio (6/30/2017) Noninterest Bearing Deposits ($mm) $969 $1,029 $1,274 $1,392 $1,496 2013Y 2014Y 2015Y 2016Y YTD $108 $127 $131 $159 $169 2013Y 2014Y 2015Y 2016Y YTD Source : Company Filings Demand Deposits 11.3% NOW & Other Trans. Ac
Slide 17: Balanced and Low Risk Securities Portfolio
17 Balanced and Low Risk Securities Portfolio Securities Portfolio ($mm) Residential MBS $95.0 89.7% Municipal Obligations $2.5 2.4% Preferred Stock $8.4 7.9% Source : Company Filings Note: Financial data as of 6/30/2017 • $106 million, or 6% of assets • Primarily used for liquidity purposes • Avera
Slide 18: Pro Forma Financial Snapshot
18 Pro Forma Financial Snapshot (1) Financial ratios per Company Management 6/30/2017 6/30/2017 Standalone (1) 6/30/2017 Pro Forma for IA Bancorp Pro Forma for IA Bancorp + $40.0 Million Common Stock Offering TCE / TA 6.58% 6.10% 7.81% Tier 1 Ratio 9.72% 9.13% 11.42% Leverage Ratio 7.72% 7.35% 9.07%
Slide 19: Attractive Valuation
19 Attractive Valuation Source: Company Filings; Financial data as of June 30, 2017; Market data as of 9/1/2017 (1) Peer median includes FLIC, PGC, BDGE, CNOB, and LBAI Price / Tangible Book Value (x) 1.34x 1.89x BCBP Peer Median (1)
Slide 20: Summary Considerations
20 Summary Considerations • A growing $1.8bn commercial bank headquartered in Bayonne, NJ • 6 th largest independent commercial bank headquartered in NJ • Consistent historic double digit organic growth in loans and deposits • Strategic geographic positioning • Management has deep knowledge of Hudso
Slide 21: fice
fice ‘YOUR COMMUNITY BANK
Slide 22: Non-GAAP Reconciliation
22 Non - GAAP Reconciliation $ in millions unless stated otherwise 2012 2013 2014 2015 2016 Q2 2017 Pro Forma $40M Common Offering Total Common Shareholder's Equity (GAAP) $83.0 $87.5 $88.9 $116.4 $115.6 $119.5 $119.5 Less: Goodwill and Intangibles (GAAP) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Plus: Net Offeri