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8-K - TOWER BANCORP, INC. - TOWER BANCORP INC | d8k.htm |
Tower Bancorp, Inc. Investor Presentation Third Quarter 2009 Exhibit 99.1 |
1 FORWARD-LOOKING STATEMENTS / SAFE HARBOR This presentation contains forward-looking statements that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, and can be identified by the use of forward-looking terminology such as believe, expect, may, will, should, project, plan, seek, target, intend or anticipate or the negative thereof or comparable terminology. Forward-looking statements include discussions of strategy, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives, expectations or consequences of various transactions, and statements about the future performance, operations, products and services of Tower and our subsidiaries. These forward- looking statements are subject to various assumptions, risks, uncertainties and other factors . These risks are detailed in documents filed by Tower Bancorp, Inc. with the Securities and Exchange Commission, including Towers Quarterly Report on Form 10-Q, Annual Report on Form 10-K and other required filings. Because of these uncertainties, risks and the possibility of changes in these assumptions, actual results could differ materially from those expressed in any forward-looking statements. Investors are cautioned not to place undue reliance on these statements. Tower Bancorp, Inc. assumes no duty or obligation to update any forward-looking statements made in this presentation. |
2 COMPANY PROFILE A Pennsylvania-chartered bank holding company organized in 1983, with roots dating back to 1864 High-growth community bank headquartered in Harrisburg, Pennsylvania Completed a merger of equals transaction on March 31, 2009, with Graystone Financial Corp. The roles of Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
Chief Credit Officer, and General Counsel were assumed by executives of
Graystone The resultant Board of Directors presently consists of 17 members, of which 7 were
members of the historical Tower Board with the remaining 10 directors being
appointed from Graystone Currently operates 26 offices in nine counties of central Pennsylvania and Maryland
Strong corporate culture with clear strategic vision |
3 GRAYSTONE KEY ACCOMPLISHMENTS |
4 CORPORATE IDENTITY Mission Statement Tower Bancorp will positively impact lives by helping people achieve their dreams. Value Statement Tower Bancorp is committed to attracting and retaining employees who are passionate about providing uncompromising service to our customers with a sense of warmth, integrity, friendliness, and company spirit. We value and
respect each other because we truly believe that our success only comes from
working together for our teams success. Making a Positive Impact Vision Statement Tower Bancorp will be a high performing regional financial services company that creates financial success for consumer, business, and not for profit customers in the markets we choose to serve. |
5 COMPANY PROFILE Nasdaq GM: TOBC As of September 30, 2009: Total Assets: $ 1.4 billion Gross Loans: $ 1.0 billion Deposits: $ 1.1 billion Shareholders Equity: $ 164.6 million Book Value Per Share: $ 23.14 Tangible Book Value Per Share: $ 20.89 Tangible Common Equity Ratio: 10.90% Total Regulatory Capital Ratio: 15.93% Market Capitalization: $ 167.3 million (as of October 29, 2009 as reported by SNL Financial) On September 2, 2009 the company successfully completed an underwritten public offering
of common stock. The total net proceeds of the offering were approximately
$51.7 million. |
6 LEADERSHIP TEAM ANDREW SAMUEL JEFF RENNINGER MARK MERRILL CARL LUNDBLAD President, CEO 24 years banking experience (24 years in- market) Prior experience: Fulton Bank, and Waypoint Bank Chief Operating Officer 31 years banking experience (22 years in- market) Prior experience: PNC Bank, Meridian Bank, and Waypoint Bank Chief Financial Officer 11 years financial experience Prior experience: Pricewaterhouse- Coopers, and Waypoint Bank General Counsel 12 years bank regulatory, securities and general corporate law experience (12 years in- market) Prior experience: Rhoads & Sinon JANE TOMPKINS JANAK AMIN JEFF SHANK JOE BERTOTTO Chief Credit Officer 33 years experience in the financial services industry with over 12 years in credit policy formation Prior experience: 5 Cs Consulting, Legacy Bank, Waypoint Bank, and PNC Bank President, Graystone Bank Division 20 years banking experience (18 years in- market) Prior experience: Fulton Bank, and Waypoint Bank President, Tower Bank Division 32 years banking experience (all in- market) at Tower Bank (previously The First National Bank of Greencastle) Chief Culture Officer 28 years experience Prior experience: PNC Bank and Waypoint Bank Deep and experienced management team with extensive local market knowledge |
7 Potentially attractive growth and expansion opportunities FOOTPRINT AND GROWTH POTENTIAL Note: Tower believes that a growth opportunity exists for the counties appropriately marked
above based on Towers close proximity to those counties, managements familiarity with the demographics and businesses and business leaders in those counties and
Towers reputation in those counties. |
8 CURRENT FRANCHISE MARKET DEMOGRAPHICS Source: SNL Financial County Total Population 2009 (Actual) Population Change 2000-2009 (%) Projected Population Change 2009-2014 (%) Median HH Income 2009 ($) HH Income Change 2000-2009 (%) Projected HH Income Change 2009-2014 (%) Pennsylvania Franklin 145,306 12.37 5.92 51,788 27.94 4.29 Lancaster 507,066 7.74 3.46 59,484 30.77 5.61 Dauphin 258,263 2.57 1.06 55,105 32.28 5.01 Fulton 15,068 5.66 2.08 41,947 20.23 2.42 Cumberland 232,724 8.92 4.06 61,622 31.77 6.42 York 431,670 13.08 6.36 59,123 30.63 3.89 Centre 146,233 7.72 1.98 47,641 31.85 7.25 Lebanon 130,496 8.45 3.78 52,153 27.77 4.17 Weighted Average Pennsylvania Franchise 8.37 3.83 54,126 28.97 4.70 State of Pennsylvania 12,598,860 2.59 0.80 53,225 32.70 4.87 National 309,731,508 10.06 4.63 54,719 29.78 4.06 Maryland Washington 148,968 12.92 5.80 49,559 21.98 7.89 Weighted Average Maryland Franchise 12.92 5.80 49,559 21.98 7.89 State of Maryland 5,733,229 8.25 3.14 67,267 26.91 4.19 National 309,731,508 10.06 4.63 54,719 29.78 4.06 Favorable and attractive market demographics |
9 CURRENT FRANCHISE MARKET DEMOGRAPHICS Source: SNL Financial / US Department of Labor as of September 30, 2009 *Weighted Average Based on County Deposit Base as of September 30, 2009 PA Unemployment: 8.7% |
10 DEPOSIT MARKET SHARE Tower Ranks: 9 th overall in the markets served Excluding companies with greater than $20 billion in assets, 4 th in total deposit market share Source: SNL Financial as of June 30, 2009 Significant opportunities exist to gain share within our current deposit markets 2009 Rank 2008 Rank Institution (ST) 2009 Number of Branches 2009 Total Deposits in Market ($000) 2009 Total Market Share (%) 2008 Total Deposits in Market ($000) 2008 Total Market Share (%) Deposit Growth (%) 1 3 Fulton Financial Corp. (PA) 76 4,002,652 16.3% 3,501,815 15.0% 14.3% 2 4 M&T Bank Corp. (NY) 96 3,676,118 15.0% 3,472,399 14.8% 5.9% 3 1 Susquehanna Bancshares Inc. (PA) 93 3,616,968 14.7% 3,805,840 16.3% -5.0% 4 2 PNC Financial Services Group (PA) 85 3,495,852 14.3% 3,723,647 15.9% -6.1% 5 5 Wells Fargo & Co. (CA) 41 2,993,980 12.2% 2,692,499 11.5% 11.2% 6 6 Banco Santander S.A. 57 2,072,503 8.4% 2,088,904 8.9% -0.8% 7 7 Metro Bancorp Inc. (PA) 26 1,485,460 6.1% 1,340,695 5.7% 10.8% 8 8 Royal Bank of Scotland Group 32 1,425,824 5.8% 1,330,309 5.7% 7.2% 9 9 Tower Bancorp Inc. (PA) 25 1,063,247 4.3% 867,379 3.7% 22.6% 10 10 Franklin Financial Services (PA) 26 698,401 2.8% 592,708 2.5% 17.8% Total 557 24,531,005 23,416,195 7.8% |
11 BUSINESS FOCUS Tower Bancorp will strive to be in the top 20% of our Peer Group as defined by the Board of Directors in the following: |
12 BUSINESS STRATEGIES We will cross sell a minimum of 5 services to every customer
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13 Total Assets ($000) (1) (2) $1,378,936 $1,272,867 $1,212,871 $641,318 $446,412 $245,095 $65,091 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 9/30/2009 6/30/2009 3/31/2009 2008 2007 2006 2005 Quarter Ended Year Ended Acquisitive Asset Growth ASSET GROWTH (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 |
14 Total Net Loans ($000) (1) (2) $1,004,757 $1,014,072 $1,000,089 $569,575 $390,274 $172,519 $25,638 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 9/30/2009 6/30/2009 3/31/2009 2008 2007 2006 2005 Quarter Ended Year Ended Acquisitive Loan Growth LOAN GROWTH (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 Note: All loans are with in-market customer relationships
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15 LOAN PORTFOLIO - CONCENTRATION BY TYPE Note: Classifications based on management designation of loans primary use of
proceeds Gross Loan Concentration by Portfolio As of September 30, 2009 Residential Mortgages 19.0% Owner Occupied 12.0% Apartments/Single Family 11.0% C&I - Other 10.0% Consumer 9.0% Individual Commercial 5.0% Land Development 5.0% Tourism/Lodging 4.0% Income Producing Office 4.0% Income Producing Retail 4.0% Residential Construction 4.0% Manufacturing 3.0% Agriculture 2.0% Contractors 2.0% Professional Services 2.0% Income Producing - Other 2.0% Health Care Related 1.0% Construction Commercial 1.0% Total Loans: $1.0 Billion As of September 30, 2009 |
16 CREDIT QUALITY (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 NPAs / Assets and NPLs / Loans (%) (1) (2) 0.00% 0.00% 0.24% 0.21% 0.43% 0.53% 0.55% 0.00% 0.00% 0.28% 0.26% 0.46% 0.62% 0.66% 0.00% 0.50% 1.00% 1.50% 2.00% 2005 2006 2007 2008 3/31/2009 6/30/2009 9/30/2009 Year Ended Quarter Ended NPAs/Assets NPLs/Loans |
17 CREDIT QUALITY (1) All financial information for periods prior to March 31, 2009 represents historical
financials for Graystone Financial Corp., as the accounting acquirer in the
reverse merger (2) 2005 financial data reflects the period from September 2,
2005 (inception date) to December 31, 2005 (3) Allowance for credit losses is
inclusive of credit quality adjustments on loans purchased related to the merger of equals Loss
Reserves / Gross Loans (%) (1) (2) (3) 1.56% 1.25% 1.06% 1.06% 1.66% 1.58% 1.61% 1.56% 1.25% 1.06% 1.06% 0.77% 0.77% 0.84% 0.00% 0.40% 0.80% 1.20% 1.60% 2.00% 2005 2006 2007 2008 3/31/2009 6/30/2009 9/30/2009 Year Ended Quarter Ended Credit Loss Reserves/Gross Loans Loan Loss Reserves/Gross Loans |
18 CREDIT QUALITY (1) All financial information for periods prior to March 31, 2009 represents historical
financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to
December 31, 2005 (3) Allowance for credit losses is inclusive of credit
quality adjustments on loans purchased related to the merger of equals Loss
Reserves / Nonperforming Loans (%) (1) (2) (3) 0.0% 0.0% NM 409.3% 362.0% 256.2% 245.3% 0.0% 0.0% NM 409.3% 168.9% 125.0% 127.4% 0.0% 75.0% 150.0% 225.0% 300.0% 375.0% 450.0% 2005 2006 2007 2008 3/31/2009 6/30/2009 9/30/2009 Year Ended Quarter Ended Credit Loss Reserves/NPLs Loan Loss Reserves/NPLs |
19 CREDIT QUALITY (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 (3) Quarter End NCO/Average Loans have been annualized (Annualized) NCOs / Average Loans (%) (1) (2) (3) 0.00% 0.00% 0.00% 0.14% 0.44% 0.23% 0.20% 0.00% 0.50% 1.00% 1.50% 2.00% 2005 2006 2007 2008 3/31/2009 6/30/2009 9/30/2009 Year Ended Quarter Ended |
20 Total Deposits ($000) (1) (2) $1,126,284 $1,063,034 $1,008,252 $525,470 $359,051 $195,712 $37,542 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 9/30/2009 6/30/2009 3/31/2009 2008 2007 2006 2005 Quarter Ended Year Ended Acquisitive Deposit Growth DEPOSIT GROWTH (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 |
21 DEPOSIT PORTFOLIO |
22 Capital Structure (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger Regulatory Requirement Levels: Well Capitalized (2) Tangible Common Equity is total equity less intangible assets and goodwill. Tangible assets are calculated as total assets less goodwill and other intangible assets. |
23 NET INCOME (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 * Merger Quarter |
24 NET INTEREST INCOME (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 |
25 NET INTEREST MARGIN (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 |
26 NONINTEREST INCOME AND EXPENSE (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 *System Conversion |
27 EFFICIENCY RATIO (1) All financial information for periods prior to March 31, 2009 represents historical financials for Graystone Financial Corp., as the accounting acquirer in the reverse merger (2) 2005 financial data reflects the period from September 2, 2005 (inception date) to December 31, 2005 (3) Efficiency ratio is calculated as total non-interest expense (less merger-related expenses and FDIC special assessments) divided by the total of net interest income and non-interest income. |
28 INVESTMENT MERITS Deep and broad management team with extensive in-market experience Successful and proven growth strategy Diversified credit portfolio with a conservative focus on credit quality Strong credit quality ratios Attractive near-team growth opportunities for deployment of capital Significant franchise value Attractive dividend yield |
29 29 QUESTIONS Thank you! |