Baycom Corp · NASDAQ:BCML
Baycom — IPO Roadshow (April 2018)
26 slides from Baycom's IPO roadshow presentation, Apr 27, 2018
Slide 1: Initial Public Offering April 2018
1 Initial Public Offering April 2018 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333 - 224236 Dated April 27, 2018
Slide 2: Offering Disclosure
2 Offering Disclosure This presentation has been prepared by BayCom Corp (“BCML” or the “ Company”) solely for informational purposes based on its own information, as well as information from public sources . This presentation has been prepared to assist interested parties in making their own evalua
Slide 3: Offering Summary
3 Offering Summary (1) Currently trades on OTCQB (2) Based on the midpoint of the price filing range, excluding underwriters purchase option Issuer BayCom Corp Ticker Symbol / Exchange 1 BCML / NASDAQ Global Select Market (pending) Shares Offered Structure 100% Primary Shares Filing Range [$21.00 -
Slide 4: Experienced Leadership Team
4 Experienced Leadership Team Name / Title Experience Background George J. Guarini President & Chief Executive Officer 30 years Founding CEO 14 years with BCML • President and Chief Executive Officer since the Bank began operations in 2004 • Held key executive and senior level management positions w
Slide 5: BayCom Corp – Who We Are
5 BayCom Corp – Who We Are Overview Financial Highlights (1) As of March 31, 2018; Two branches in the Bay Area have been consolidated in 2018 (2) Non - GAAP reconciliation in Appendix on page 26 (3) Regulatory capital ratios are for United Business Bank only (4) For interagency guidance purposes, C
Slide 6: Investment Highlights
6 Investment Highlights An opportunity to invest in a growing Western Region community bank franchise at an attractive entry point □ Seasoned and talented management team who founded and led the Company since 2004 □ Disciplined acquisition strategy and proven track record of integrating banks ▪ The
Slide 7: Franchise Footprint
7 Franchise Footprint Full Service Branch Location Loan Production Office Seattle, WA Los Angeles, CA Northern California Albuquerque, NM
Slide 8: Key Highlights of Current Markets
8 ▪ We serve the Sacramento - Roseville - Arden - Arcade MSA through one branch office • With a population of approximately 2.3 million, the state capital, median household income of $63,727, and a projected population growth of 5.1% through 2022, the region is a reliable and growing market ▪ The St
Slide 9: Corporate History
9 Corporate History Opened Bay Commercial Bank Acquired Global Trust Bank Acquired Community Bank of San Joaquin Raised $16.8 million of common stock from institutional and individual investors Acquired Valley Community Bank Acquired United Business Bank, FSB Acquired Plaza Bank Formed Bank Holding
Slide 10: Disciplined Acquisition Strategy
10 Disciplined Acquisition Strategy Headquarters of Potential Acquisition Opportunities Total Banks Median Asset Size Banks $100M-$500M 121 $229,034 Banks $500M-$1B 50 $751,945 Banks $1B-$1.5B 16 $1,208,314 □ Strategic consolidation of community banks ▪ Provides scale and operating efficiencies ▪ Ad
Slide 11: Recent Developments
11 Recent Developments Highlights of Financial Condition Highlights of Financial Performance (1) Non - GAAP reconciliation in Appendix on page 26 (2) Regulatory capital ratios are for United Business Bank only (3) Annualized (4) Nonperforming assets consists of non - accruing loans and accruing loan
Slide 12: Creating Value For Shareholders
12 Creating Value For Shareholders Note: Annual data as of or for the year ended December 31 of each respective year and 2018Q1 data as of or for the three months ended March 31, 2018 (1) Non - GAAP reconciliation in Appendix on page 26 $11.05 $11.76 $12.96 $14.12 $13.81 $14.34 $0.54 $1.08 $1.36 $1.
Slide 13: Demonstrated Track Record of Growth
13 $342 $504 $623 $675 $1,246 $1,242 2013 2014 2015 2016 2017 2018Q1 Demonstrated Track Record of Growth Total Assets ($mm) Total Net Loans ($mm) Total Deposits ($mm) Net Income ($000) $251 $323 $460 $504 $890 $886 2013 2014 2015 2016 2017 2018Q1 $286 $438 $543 $591 $1,104 $1,099 2013 2014 2015 2016
Slide 14: Loan Portfolio
14 □ $895 million total loans ▪ 55.3% originated vs. 44.7% acquired □ Approximately 67% of the loan portfolio is from the San Francisco Bay Area □ Average yield on total loans of 5.44% for 2017 ▪ 70.7% floating rate vs. 29.3% fixed 1 □ SBA Preferred Lender ▪ During 2017, $22.3 million of SBA loans (
Slide 15: Commercial Real Estate Detail
15 Commercial Real Estate Detail Retail 11% Multifamily Residential 18% Hotel/Motel 14% Office 15% Gas Station 10% Convalescent facility , 5% Industrial 9% Restaurants 3% Agricultural Real Estate 3% Other 13% CRE Loan Portfolio Breakout □ $672 million total loans □ Diversified by property type □ 75.
Slide 16: Strong Credit Quality
16 Strong Credit Quality Net Charge - Offs Nonperforming Assets / Total Assets 1 Allowance for Loan Losses / Total Loans ² Net Charge - Offs / Average Loans 0.83% 0.59% 0.05% 0.28% 0.01% 0.02% 2013 2014 2015 2016 2017 2018Q1 1.09% 0.77% 0.83% 0.74% 0.47% 0.52% 2013 2014 2015 2016 2017 2018Q1 0.11% 0
Slide 17: Attractive Deposit Portfolio
17 Noninterest - bearing demand 30% Money market 32% Interest - bearing demand and savings 17% Certificates 21% Attractive Deposit Portfolio Deposit Composition □ At December 31, 2017: $1.1 billion total deposits □ Noninterest - bearing demand represents 30% of total deposits □ Approximately 43.7% o
Slide 18: Attractive Net Interest Spread
18 Attractive Net Interest Spread Yield on Interest - Earning Assets Cost of Average Interest - Bearing Liabilities Net Interest Spread Net Interest Margin 4.76% 4.55% 4.47% 4.74% 4.59% 4.66% 2013 2014 2015 2016 2017 2018Q1 0.95% 0.89% 0.72% 0.73% 0.65% 0.59% 2013 2014 2015 2016 2017 2018Q1 3.81% 3.
Slide 19: Financial Performance
19 Financial Performance Return on Average Assets Return on Average Equity Efficiency Ratio 1 63.85% 62.11% 64.66% 60.78% 67.34% 57.45% 2013 2014 2015 2016 2017 2018Q1 0.83% 1.13% 1.24% 0.91% 0.51% 1.31% 2013 2014 2015 2016 2017 2018Q1 5.24% 10.02% 10.36% 7.87% 5.28% 13.41% 2013 2014 2015 2016 2017
Slide 20: Strong Pro Forma Consolidated Capital Position
20 Strong Pro Forma Consolidated Capital Position Pro Forma Consolidated Capital Ratios (1) Assumes gross proceeds of $50 million at $22.00 per share, 6% underwriting spread, $1.0 million additional expenses; excludes IPO Awards to be granted in connection with this offering (2) Assumes exercise of
Slide 21: Investment Highlights
21 Investment Highlights An opportunity to invest in a growing Western Region community bank franchise at an attractive entry point □ Seasoned and talented management team who founded and led the Company since 2004 □ Disciplined acquisition strategy and proven track record of integrating banks ▪ The
Slide 22: Appendix
22 Appendix
Slide 23: Board of Directors
23 Board of Directors Name Years as Director Background Lloyd W. Kendall, Jr. 14 years with BCML Founding Director • Chairman of the Board • Lawyer practicing in the Bay Area since 1978 and specializing in real estate and tax law George J. Guarini 14 years with BCML Founding Director • President and
Slide 24: Investment Portfolio Composition
24 Municipal Securities 40% MBS 24% Collateralized Mortgage Obligations 4% U.S. Government Agency Securities 32% Investment Portfolio Composition Average Yield of 2.07% 1 Total Investment Securities: $40.5 million 3% of Total Assets (1) For the year ended December 31, 2017 Amortized Fair Weighted Co
Slide 25: Interest Rate Risk Analysis
25 Interest Rate Risk Analysis Net Interest Income (NII) at Risk Note: As of December 31, 2017 Refer to registration statement filed with the SEC for further discussion on interest rate Economic Value of Equity (EVE) Scenario $ Change % Change ($ in thousands) -100bps Shock (8,011)$ -8.5% +100bps Sh
Slide 26: Non-GAAP Reconciliation
26 Non - GAAP Reconciliation Tangible Common Equity and Tangible Assets (Dollars in thousands, except per share data) 2013 2014 2015 2016 2017 2018 Tangible Common Equity: Total Shareholders' Equity 52,322$ 58,174$ 72,381$ 78,063$ 118,635$ 122,567$ Adjustments Goodwill - - - - (10,365) (10,365) Core