Summit State Bank · NASDAQ:SSBI
Summit State Bank — Conference Presentation (2009)
24 slides from Summit State Bank's conference presentation, 2009
Slide 1: Experience Sonoma County's Top Rated Bank
MEMBER SUMMIT state BANK \ 4 Experience Sonoma County’s Top Rated Bank Bauer's Highest Rating, 5-Star Superior WWW.SUMMITSTATEBANK.COM 707-568-6000
Slide 2: Private Securities Litigation Reform Act of 1995
Private Securities Litigation Reform Act of 1995 Statements made during this presentation and in response to questions may constitute Forward Looking Statements within the meaning of the Private Securities Litigation Reform Act of 1995 and any such statements are subject to risks and uncertainties t
Slide 3: Thomas Duryea
Thomas Duryea President and Chief Executive Officer
Slide 4: Management Team
Management Team • Thomas Duryea, President and Chief Executive Officer – Over 17 years in banking, 10 years in the community • Dennis Kelley, Chief Financial Officer – Over 30 years in banking, 23 years in the community • Linda Bertauche, Chief Operating Officer – Over 30 years in banking, 24 years
Slide 5: Company Overview
Company Overview NASDAQ Symbol: SSBI Total assets: $356 million Total equity: $56 million Number of offices: 5 Full Service Branches Number of full time equivalent employees: 55 Headquarters: Santa Rosa, Sonoma County, CA Founded: 1984
Slide 6: Existing Footprint
Existing Footprint • Headquartered in Sonoma County, the Bank provides diverse financial products and services throughout Sonoma, Napa, San Francisco, and Marin Counties • Five branches in Healdsburg, Rohnert Park, Petaluma and Santa Rosa Headquarters Branch
Slide 7: Market Affluence
Market Affluence Income in Primary BMRC Markets. Based on 2008 Claritas Data.
Slide 8: Percent of Employment by Industry
Percent of Employment by Industry Construction Government Wholesale Trade 7% 16% 4% Agriculture Retail Trade 3% 12% Manufacturing 11% Transportation Services and Utilities 40% 2% Financial Activities 5% California Employment Development Department, 2007
Slide 9: Highlights
Highlights • Record earnings in first half of 2009 • Highest funding month in bank’s history in Q4 09 • Efficiency ratio improving from 69% at Q1 08 to 55% for 1st half of 2009 • Overall performance has improved from bottom quartile of peer banks at Q1 08 to top quartile at Q1 09 • Sonoma County’s T
Slide 10: Summit Strengths Overview
Summit Strengths Overview • Portfolio quality • NIM expansion • Improving efficiency • Core deposit growth • Sustained dividend • 5-Star Bauer Financial rating
Slide 11: Business Model
Business Model • Selling on Quality, Never on Price • Transition from Transaction to Relationship-Based Banking • Liability Side – Drive Core Deposit to Drive Long Term Franchise Value – Compensating balances – Switch Kits – Vendor accounts – Business Development Officers – Sales focused organizatio
Slide 12: Summit Way Service Standards
Summit Way Service Standards
Slide 13: Partnering with our Customers
Partnering with our Customers “Expect More From Your Bank” • Business Partnerships – Buying their products, using their services, promoting their business whenever possible • Nonprofit Partnership Program – Annual contribution of 25 to 75 basis points, based on average annual account balances – Do o
Slide 14: Advertising Program
Advertising Program • Message – “Experience Sonoma County’s Top Rated Bank” – “Safe, Sound and Smart” • Advertising – Billboards, Newspapers, Radio, Television, Online, Statement Stuffers, Community Sponsorships
Slide 15: Bank Performance
Bank Performance Past 15 months via peer ranking (percentile) Earnings: 3/31/2008 3/31/2009 6/30/2009 Interest Yield 61st 89th 91st Interest Expense 18th 55th 58th Net Interest Income 23rd 84th 87th Net Interest Margin 22nd 79th 83rd Net Operating Income 22nd 78th 78th Efficiency 25th 87th 87th Core
Slide 16: Uniquely Positioned for the Future
Uniquely Positioned for the Future • Well-capitalized • Strong loan performance • Responsive and knowledgeable staff • Well Positioned to take advantage of the current bank fallout – This is our time!
Slide 17: Dennis Kelley
Dennis Kelley Senior Vice President and Chief Financial Officer
Slide 18: Financial Strengths
Financial Strengths • Record earnings in first half of 2009 • No foreclosed real estate since 2007 • Only $91,000 past due 30 to 89 days at June 30, 2009 • Total risk based capital of 19%
Slide 19: TARP Capital
TARP Capital • $8.5 million accepted in December 2008 • Reasons were the questionable state of the economy • Acquisition or expansion opportunities • Strong capital ratios made even stronger • Repayment? Is the economy out of the woods?
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio Commercial Real Estate - Owner Occupied Commercial Real 15% Estate - Non- Owner Occupied 35% Commercial Loans 24% 1-4 Single Family Residence 15% Consumer SBA 1% Home Equity 1% Construction 2% 7% Data from June 30, 2009
Slide 21: Loan Portfolio
Loan Portfolio High Quality • Key Loan Portfolio Ratios – Q2 2009 Net charge-offs as a percentage of average loans: 0.39% Peer Median: 0.70% Non-performing loans as a percentage of gross loans: 1.27% Peer Median: 2.79% Source: UBPR, June 30, 2009
Slide 22: Loan Portfolio
Loan Portfolio High Quality Sound Underwriting Practices June YE YE 2009 2008 2007 Non-Performing Loans $3,886 $1,046 $495 Non-Performing Loans as a 1.28 0.34 0.17 Percentage of Total Loans Net Charge-Offs Year-to-Date $601 $290 $864 Source: UBPR (Dollars in thousands)
Slide 23: Financial Results
Financial Results 2nd Qtr 2009 2nd Qtr 2008 Profitability Ratios Return on assets (ROA) 0.80% 0.70% Return on tangible equity 5.50% 5.39% Net interest margin 4.53% 3.84% Efficiency ratio 56.50% 64.33% Asset Quality Ratios Nonperforming loans to loans 1.28% 0.10% Capital Ratios Tier 1 leverage 14.7%
Slide 24: Summit State Bank
MEMBER SUMMIT state BANK \ 4 Experience Sonoma County’s Top Rated Bank Bauer's Highest Rating, 5-Star Superior WWW.SUMMITSTATEBANK.COM 707-568-6000