Attached files
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| 8-K - FORM 8-K - SP Bancorp, Inc. | f8k_051611.htm |
2011 1st Quarter Results
May 16, 2011
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Jeff Weaver
President and Chief Executive Officer
Safe Harbor Statement
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When used in filings by SP Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission
(the “SEC”). In the Company’s press releases or other public or shareholder communications, and in oral
statements made with the approval of an authorized executive officer, the words or phrases “will likely
result,” “are expected to,” “will continue,” “ is anticipated,” “estimate,” “project,” “intends” or similar
expressions are intended to identify “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties,
including among other things, changes in economic conditions, legislative changes, changes in policies by
regulatory agencies, fluctuations in interest rates, the risks of leading and investing activities, including
changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for loan losses, the Company’s ability to access cost-effective funding,
fluctuations in real estate values and both residential and commercial real estate market conditions,
demand for loans and deposits in the Company’s market area, competition, changes in management’s
business strategies and other factors that could cause actual results to differ materially from historical
earnings and those presently anticipated or projected. The Company wishes to advise readers that the
factors listed above could materially affect the Company’s financial performance and could cause the
Company’s actual results for future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.
(the “SEC”). In the Company’s press releases or other public or shareholder communications, and in oral
statements made with the approval of an authorized executive officer, the words or phrases “will likely
result,” “are expected to,” “will continue,” “ is anticipated,” “estimate,” “project,” “intends” or similar
expressions are intended to identify “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties,
including among other things, changes in economic conditions, legislative changes, changes in policies by
regulatory agencies, fluctuations in interest rates, the risks of leading and investing activities, including
changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for loan losses, the Company’s ability to access cost-effective funding,
fluctuations in real estate values and both residential and commercial real estate market conditions,
demand for loans and deposits in the Company’s market area, competition, changes in management’s
business strategies and other factors that could cause actual results to differ materially from historical
earnings and those presently anticipated or projected. The Company wishes to advise readers that the
factors listed above could materially affect the Company’s financial performance and could cause the
Company’s actual results for future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.
The Company does not undertake -and specifically declines and obligation-to publicly release the result of
any revisions which may be made to any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
any revisions which may be made to any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
SPBC At A Glance
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• Publicly traded Thrift Holding Company
• SharePlus Federal Bank
• www.shareplus.com
• $259.3 million in total assets
• Headquartered in Plano, Texas
• 4 Locations in North Texas
• 2 in Louisville, Ky and 1 in Irvine, Ca
• 1.725 million shares outstanding
• 12% Insider/ESOP Ownership
• Price to Book Ratio of 60.2% at 03/31/11
• Founded in 1958 as Frito Employees Federal Credit Union
• As a credit union, SharePlus served the employees of Frito-
Lay, PepsiCo, YUM! Brands, as well as employees of dozens
of other companies.
Lay, PepsiCo, YUM! Brands, as well as employees of dozens
of other companies.
• Converted to Mutual Savings Bank in October 2004
• Completed conversion and IPO in October 2010
• Traded on NASDAQ for the first time on November 1st
History
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Texas based community bank providing competitive product
and rate offerings with outstanding personalized service in
three core businesses:
and rate offerings with outstanding personalized service in
three core businesses:
• Mortgage Lending - Service leadership distinguishes the
bank and provides fee income and quality earning assets
bank and provides fee income and quality earning assets
• Commercial Lending - Focused on relationships with
local small to medium sized businesses.
local small to medium sized businesses.
• Consumer banking - Focused on service and value
propositions that drive low cost funding for the bank
propositions that drive low cost funding for the bank
Simple and Focused Strategy
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First Quarter Highlights
• Net income of $217,000, up from a loss of $323,000 for Q1 2010
• Total assets of $259.3 million, an 8.6% increase from December 31, 2010
• Total deposits were up $20.6 million
• Total loans grew $2.6 million
• Non interest expenses increased due to higher costs related to becoming a public
company, investments in new and existing lines of business and expenses from
one commercial loan foreclosure
company, investments in new and existing lines of business and expenses from
one commercial loan foreclosure
• Non-performing assets increased during the quarter, but overall levels remain low
• We expect non-performing loans to decrease significantly over time
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Three Core Lines of Business
Commercial Banking
Mortgage Lending
Consumer Banking
• $35.6 million in loans as
of March 31, 2011
of March 31, 2011
• Primarily commercial,
real estate, retail, office,
medical and C&I loans
real estate, retail, office,
medical and C&I loans
• Focused on relationships
with in-market medium
sized businesses
with in-market medium
sized businesses
• $139.8 million in loans
as of March 31, 2011
as of March 31, 2011
• Majority of mortgage
loans are variable rate
loans
loans are variable rate
loans
• $9.9 million in home
equity loans
equity loans
• $208.8 million in
deposits as of March 31
deposits as of March 31
• 18,000 accounts with
favorable mix of
checking, savings and
CD’s
favorable mix of
checking, savings and
CD’s
• Focused on service and
value propositions that
drive low cost funding
value propositions that
drive low cost funding
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• New line of business announced in April 2011
• Adds a diversified revenue source
• Short term portfolio provides a hedge against rising interest rates
• Experienced staff with deep ties to mortgage industry and community
• Chris Christensen, senior vice president
• 40 years of bank management and mortgage experience
Mortgage Warehouse Lending
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Suzy Salls
Senior Vice President and Chief Financial Officer
Net Income
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EPS of $0.13
Net Interest Income
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Net Interest Margin
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Non Interest Expense
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Non Interest Expense
(Dollars in thousands)
• Increase of $590 over March 31, 2010 primarily related to the following:
• Compensation & benefits
$317
$317
• Two new commercial loan officers
• Two new employees for W/H lending
• 2010 reversal of bonus accrual
• Higher levels of mortgage commissions
• Professional and outside expenses
$56
$56
• Legal, accounting, consulting
related to being a public company
• Operations from OREO
$112
$112
• Commercial real state foreclosure
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Total assets 259,330 238,817
Loans, net 193,662 191,065
Deposits 208,795 188,244
Stockholders’ equity 32,390 32,104
Balance Sheet Highlights - Qtr.
(Unaudited - in ‘000’s)
As of
December 31, 2010
As of
March 31, 2011
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Total assets 259,330 227,184
Loans, net 193,662 165,732
Deposits 208,795 192,191
Stockholders’ equity 32,390 17,007
Balance Sheet Highlights - Year
(Unaudited -in ‘000’s)
As of
March 31, 2010
As of
March 31, 2011
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Financial Performance Ratios
March 31, 2011
Net interest margin 3.96%
NPAs/Total Assets 3.87%
Net charge-offs/Avg. loans 0.25%
ALLL/Total loans 0.90%
Tier 1 Core Capital 10.96%
Total Risk-based Capital 17.04%
Texas Ratio 12.40% *
*Non accrual loans plus OREO/risk based capital
Asset Quality
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Asset Quality
• Non Performing Assets increased from 2.28% of total assets to 3.87%
year over year primarily due to an increase in troubled debt
restructured.
year over year primarily due to an increase in troubled debt
restructured.
• The Allowance for Loan Losses dropped from 1.09% of total loans to
.90% after a partial write off of one commercial credit that was
foreclosed during the quarter. This credit had a large specific allowance
that was taken in the first quarter of 2010.
.90% after a partial write off of one commercial credit that was
foreclosed during the quarter. This credit had a large specific allowance
that was taken in the first quarter of 2010.
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• SharePlus is leveraging infrastructure costs through a strategy to profitably grow
assets 9% to 12% annually
assets 9% to 12% annually
• Well-positioned to accomplish growth objectives:
• Experienced management team and Board of Directors
• Diverse and growing business segments
• Strong capital position
• Located in the growing and stable DFW market
• Manageable credit issues
• Solid, scalable infrastructure
www.shareplus.com
Summary
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