InBankShares Corporation · OTC:INBC
InBankShares — D.A. Davidson Financial Institutions Conference 2021
24 slides from InBankShares's conference presentation, May 5, 2021
Slide 1: D.A. Davidson Financial Institutions Conference, May 5-6th, 2021
D.A. Davidson Financial Institutions Conference| May 5-6th, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements preceded by, followed by, or that include the words “may,” “could,” “sho
Slide 3: Overview of the Company
Overview of the Company InBankshares, Corp (“INBC”) is the holding company for InBank and is quoted on the OTCQX (INBC) InBank was established in 1918 and purchased by the current investment group in 2018 Emphasis on capturing market share in the Denver/Boulder MSA while maintaining strong market
Slide 4: InBank Timeline
InBank Timeline InBank Total Assets in millions (Bank Subsidiary) Jan. 2020: Welcomed Acquisition Feb. 2019: Online & 330 new-to-bank 695 July 2019: Team of Jan. 2020: InBank customers Mobile Banking associates were listed on the OTCQX June 2018: Teams of Conversion brought onboard associates were f
Slide 5: Denver Metro Region and Community Bank Region
Denver Metro Region People centric vs branch centric The strategy is to be the premier business bank in the metro area for businesses with $5 – 50 million in revenue Full relationship bank – business, business owners, management, and employees Community Bank Region Southern Colorado and Nort
Slide 6: Denver MSA Offers Huge Opportunity for Growth
Denver MSA Offers Huge Opportunity for Growth InBank - Denver MSA Deposits Total Deposit Market in Denver MSA $350,000 $120,000,000 $300,000 $100,000,000 $250,000 $80,000,000 In Thousands In Thousands $200,000 $60,000,000 $150,000 $40,000,000 $100,000 $50,000 $20,000,000 $- $- 2017 2018 2019 2020 Q1
Slide 7: Culture Matters
Culture Matters Our Mission: To Positively Impact the Lives of Our Customers, Communities and Associates Commitment Innovation Responsibility Teamwork Happiness Authenticity 7
Slide 8: Experienced Management Team
Experienced Management Team Edward Francis – Chairman, Chief Executive Dan Patten – EVP, Chief Financial Officer Officer and President Dan has over 20 years of experience in corporate finance, David Brown – EVP, Chief Risk Officer Ed has over 30 years of banking and financial institution strategy, m
Slide 9: Seasoned Board of Directors
Seasoned Board of Directors Experience or Number of Independent Directors (10 Total) Expertise CEO or President of a Leaders capable 9 of overseeing Company execution and challenging management Other Public Board 7 Experience Banking Industry 10 Private Equity & 5 Venture Capital Critical industry E
Slide 10: Board of Directors
Board of Directors Eric Donnelly – Interim Lead Director Kevin Ahern Richard Trice Eric is CEO of Capital Plus Financial which Don Bechter Kevin is Managing Partner of Brush Creek Lisa Narrell-Mead Richard is a former Executive Officer and through its holding company, Crossroads Don is Partner and M
Slide 11: Strategic Priorities
Strategic Priorities Organic Cultural Scale Growth Growth C&I Focus Attracting Fortifying the Talent Foundation SBA Talent M&A Payments Development 11
Slide 12: 2020 Highlights
2020 Highlights 54% year-over-year asset growth Reduction of InBank’s cost of funds from 0.76% to 0.28% from Q1-2020 to Q4-2020 575 PPP loans for $115.8 million during 2020, 330 were new-to-bank customers Non-performing assets to total assets fell to 0.29% from 0.82% at the bank level from Q
Slide 13: 2021 Highlights
2021 Highlights Four new producers hired in the Denver/Boulder area, including a team devoted to the Boulder market Dan Patten joined InBank as EVP, Chief Financial Officer Net income of $661,000, or $0.09 per share, compared to a loss of $94,000, or $(0.01) per share for Q1-2020, an increase
Slide 14: COVID-19 Response
COVID-19 Response Fully participated in the SBA Paycheck Protection Program (PPP) Tested full remote work force options, currently working at 75% capacity, with an office transition plan in place to bring fully work from home back into the office 1-2 days a week All branches have been open by app
Slide 15: PPP Fast Facts
PPP Fast Facts PPP Loan Stats ($ in actual) 2020 2021 Total Number of Loans 575 257 832 Total Dollar Value $115.8 Million $50.7 Million $166.5 Million Estimated Total Employees 10,300 4,400 14,700 Estimated Fee Income $3.6 Million $2.0 Million $5.6 Million New to Bank Customers 330 30 360 Forgiven L
Slide 16: Building Earnings Momentum
Building Earnings Momentum $2,000 $1,500 $1,000 In Thousands $500 $- $(500) $(1,000) 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Pre-provision Pre-tax Net Income Net Income 16
Slide 17: Diverse Loan and Deposit Mix
Diverse Loan and Deposit Mix Loan Portfolio 3/31/21 Deposit Portfolio 3/31/21 Other Loans, 3% Retail Time Deposits, Multifamily Loans, 3% 1 - 4 Family, 11% 14% Construction Loans, 10% Jumbo Time Deposits, Commercial and 2% Industrial, 12% Noninterest-bearing, 38% NOW Accounts, 10% Nonowner Occupied
Slide 18: Loan Growth
Loan Growth Total Loans (HFI) $500,000 $450,000 Annual core loan growth $77 $400,000 million or 29.6% $350,000 $285 million in total growth $300,000 ($184 million excluding PPP In Thousands $250,000 loans) since 2Q-2018 $200,000 CAGR of 47% (33% excluding PPP) since 2Q-2018 $150,000 MRQ loan
Slide 19: Deposit Growth
Deposit Growth InBankshares, Corp Deposits $700,000 $600,000 MRQ growth of $94 million or 20% $500,000 $306 Million in total deposit growth since 2Q-2018 In Thousands $400,000 CAGR of 32% since 2Q-2018 $300,000 Non-interest bearing make up 37% of total deposits, up $200,000 from 31% in 2Q-20
Slide 20: InBank NIM and Cost of Funds
InBank NIM and Cost of Funds 5.00% 4.50% 4.00% MRQ NIM of 3.93% 3.50% Cost of funds of 0.25% improved by 51 bps from Q1- 3.00% 2020 to Q1-2021 2.50% Core loan yield of 5.15% for 2.00% Q1-2021 1.50% Loan to deposit ratio of 58% without PPP loans for Q1- 1.00% 2021 0.50% 0.00% 3Q'18 4Q'18 1Q'1
Slide 21: Asset Quality Improving Since Acquisition
Asset Quality Improving Since Acquisition Non-Performing Assets Past Due Loans 30-89 Days 7,000 2.00% 6,000 1.40% 1.80% 6,000 1.20% 5,000 1.60% 5,000 1.40% 1.00% 4,000 1.20% 4,000 0.80% 1.00% 3,000 3,000 0.60% 0.80% 2,000 2,000 0.60% 0.40% 0.40% 1,000 1,000 0.20% 0.20% 0 0.00% 0 0.00% 3Q'18 4Q'18 1Q
Slide 22: INBC and InBank are Well Capitalized
INBC and InBank are Well Capitalized INBC Tangible Common Equity / Tangible Assets InBank Capital Ratios $70.0 18% 25.00% 16% $60.0 14% 20.00% $50.0 12% 15.00% In Millions $40.0 10% $30.0 8% 10.00% 6% $20.0 4% 5.00% $10.0 2% $- 0% 0.00% 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'
Slide 23: Why Invest in InBankshares?
Why Invest in InBankshares? CO- Proven, Strong granular headquartered dedicated and core deposit commercial high caliber base bank team Building long Focused on Taking market term advisory building share in a based shareholder growing market relationships value 23
Slide 24: Contact Information
Contact Information Edward Francis Chairman, President and CEO Edward.Francis@inbank.com Dan Patten EVP, Chief Financial Officer Dan.Patten@inbank.com Amsbry Ball VP, Investor Relations Amsbry.Ball@inbank.com 24
InBankshares — D.A. Davidson Financial Institutions Conference 2021 on 6ix