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| 8-K - FORM 8-K - CHARTER FINANCIAL CORP | chfn021420188-k.htm |
This presentation may contain certain forward-looking statements
regarding our prospective performance and strategies within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. We
intend such forward-looking statements to be covered by the Safe
Harbor Provision for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, and are including
this statement for purposes of said safe harbor provision. Forward-
looking statements can be identified by the use of words such as
“estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,”
“seek,” “expect” and words of similar meaning. These forward-
looking statements include, but are not limited to:
• statements of our goals, intentions and expectations;
• statements regarding our business plans, prospects, growth and
operating strategies;
• statements regarding the asset quality of our loan and investment
portfolios; and
• estimates of our risks and future costs and benefits.
These forward-looking statements are based on current beliefs and
expectations of our management and are inherently subject to significant
business, economic and competitive uncertainties and contingencies, many
of which are beyond our control. In addition, these forward-looking
statements are subject to assumptions with respect to future business
strategies and decisions that are subject to change.
The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations expressed in
the forward-looking statements:
• general economic conditions, either nationally or in our market
areas, that are worse than expected;
• competition among depository and other financial institutions
Forward Looking Statements
• changes in the interest rate environment that reduce our margins
or reduce the fair value of financial instruments;
• adverse changes in the securities markets;
• changes in laws or government regulations or policies affecting
financial institutions, including changes in regulatory fees and
capital requirements;
• our ability to enter new markets successfully and capitalize on
growth opportunities;
• our ability to successfully identify, acquire, and integrate future
acquisitions;
• our incurring higher than expected loan charge-offs with respect
to assets acquired in FDIC-assisted acquisitions;
• changes in consumer spending, borrowing and savings habits;
• changes in accounting policies and practices, as may be adopted
by the bank regulatory agencies and the Financial Accounting
Standards Board; and
• changes in our organization, compensation and benefit plans.
Because of these and other uncertainties, our actual future results may
be materially different from the results indicated by these forward-looking
statements. Readers are cautioned not to place undue reliance on the
forward-looking statements contained herein, which speak only as of
the date of this presentation. Except as required by applicable law or
regulation, we do not undertake, and specifically disclaim any obligation to
update any forward-looking statements that may be made from time to
time by or on behalf of the Company. Please see “Risk Factors” beginning
on page 15 of the Company’s 10-K dated December 9, 2016.
2
CHFN Profile
3
Dollars in thousands
Data as of or for the three months ended 12/31/17; Tangible Equity and Tangible Assets are month end balances
Core deposits defined as total deposits less wholesale deposits and jumbo time deposits greater than $250,000
Financial Highlights - December 2017
Company Overview
Branch Map
• Founded in 1954 in West Point, GA
• Successful acquirer, completed two whole
bank and three FDIC acquisitions since 2009
• 349 FTEs servicing 62,236 checking accounts
• 22 Branches located throughout strong
growth markets
CHFN (16)
Resurgens (2)
CBS Financial (4)
Balance Sheet ($mm)
Total Assets $1,644
Gross Loans 1,163
Deposits 1,344
Core Deposits 1,255
Loans / Deposits 87 %
Profitability
ROAA 1.08 %
Efficiency Ratio 60.3
Asset Quality
NPA / Loans + OREO 0.27 %
Reserves / NPLs 575.1
LLR / Loans 0.96
Capital Ratios
Tang. Com. Equity / Tang. Assets Ratio 10.96 %
Leverage Ratio 11.55
CET1 Capital Ratio 14.44
Tier 1 Capital Ratio 14.99
Total Risk Based Capital Ratio 15.90
GEORGIA
ALABAMA
FLORIDA
Roswell
Atlanta
LaGrange
West Point
Auburn
Savannah
Montgomery
Augusta
Mobile
Pensacola
Jacksonville
Dothan
Birmingham
Columbus
Huntsville
Tallahassee
Athens
Macon
Tuscaloosa
Albany
Gainesville
Panama City
75
75
16
65
20
20
95
10
65
Atlanta
Sandy Springs
Roswell
Marietta
Alpharetta
Duluth
Douglasville
Strategic Direction
4
December 2017
CHFN Branch (22)
December 2007
CHFN Branch (10)
2000 2001 2008 2009 2013 2015 2016 2017 1954
(1954 – 2000)
Small Town Mutual Thrift
(2009 – 2012)
Financial Crisis
• Three FDIC assisted acquisitions
(2 in the Atlanta MSA)
• Supplemental capital raises to
40% public
2012 2014
4/8/2013
Completed full
conversion
raising
$143 Million
(2013 – 2015)
Bought back 35.6% of
outstanding stock through
buybacks
12/3/2015
Announced CBS
Financial
Corporation
Acquisition
(closed 4/15/16)
February 2017
Opened
Buckhead
Branch
6/1/2017
Announced
Resurgens Bancorp
Acquisition
(closed 9/1/2017)
(2001 – 2008)
MHC 20%
• Raised $39 Million in
Capital
• Buyback and dividends
totaling $85 Million
24.78%
10.96%
3.06%
10.10%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2013 2014 2015 2016 2017 Q1 2018
Annualized
Tangible Common Equity/Tangible Assets
Return on Average Tangible Common Equity
$10.08
$18.50
$8
$10
$12
$14
$16
$18
$20
$22
4/8/2013 2013 2014 2015 2016 2/12/2018
Market Highlights
Closing Price (02/12/18): 18.50
Shares Outstanding: 15,132,320
Market Capitalization ($mm): $279.9
Price / Tangible Book Value: 160 %
Price / LTM EPS: 19.3 x
Dividend Yield: 1.73 %
Source: SNL Financial, Bloomberg, Company documents
Pricing data as of 02/12/18; financial data as of or for the three months ended 12/31/17
Data as of or for the twelve months ended 9/30 each respective year; Tangible Common Equity/Tangible Assets are month end balances
Performance Profile
5
Effective Capital Deployment
CHFN Stock Price
Price Performance Since Full Conversion (4/8/13) Basic Earnings Per Share
$0.29
$0.35
$0.83
$1.01
$0.31
$0.93
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2014 2015 2016 2017 Q1 2018
Annualized
$1.24
27.90% 25.48%
16.74% 15.79% 15.90%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2014 2015 2016 2017 Q1 2018
17.67%
19.11%
12.68% 12.05% 11.55%
5
10.00%
15.00%
20.00%
25.00%
2014 2015 2016 2017 Q1 2018
21.90%
19.56%
12.14%
10.72% 10.96%
.
10.00%
15.00%
20.00%
25.00%
2014 2015 2016 2017 Q1 2018
Capital Leveraging Strategy
Effectively deploy capital through:
• Organic growth
• Adding loan producers
• M&A
• Cash dividends
• Share Buybacks
6
Source: SNL Financial
Data as of 9/30 each respective year; Tangible Equity and Tangible Assets are month end balances
TCE / TA
Leverage Ratio
Total Risk-Based Capital Ratio
7
Operating Leverage
($000s) Average Deposits Per Branches
Source: SNL Financial; FDIC; Company documents
Data on graph for the twelve months ended 9/30 each respective year
$47,813
$49,257
$58,092
$60,870 $61,091
$45,000
$50,000
$55,000
$60,000
$65,000
2014 2015 2016 2017 Q1 2018
10 Branches
Average Size
$42M
24 Branches
New
or Acquired
12 Branches
Consolidated
or Sold
22 Branches
Average Size
$61M
2008 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45% growth in deposits per Branch
Efficiency Ratio (%)
82% 81%
72%
68%
60%
50%
60%
70%
80%
90%
2014 2015 2016 2017 Q1 2018
Overview of Management Team
8
• Served as the Chief Executive Officer of CHFN since 2001 and as the CEO of
CharterBank since 1996
• Graduate of School of Community Bank Management
• Began working with CharterBank in 1984
• Served as Vice President and Treasurer of CharterBank since 1991 and became CFO
of Charter Financial in 2001
• Graduate of School of Community Bank Management
• Certified Public Accountant and Certified Management Accountant
• Served as President of CharterBank since 2007
• Graduate School of Banking at LSU
• 34 years of banking experience; 18 years with CharterBank
Lee W. Washam
President
Curtis R. Kollar
Senior Vice President
& CFO
Robert L. Johnson
Chairman & CEO
• Earnings growth in strong markets
• Highly productive retail deposit franchise
• Substantial progress leveraging excess capital
• Conservative credit underwriting
• M&A execution experience
• History of rewarding shareholders
Investment Highlights
9
Overview of Our Markets
• Atlanta
- Fourth fastest growing city in the US
- Projected to be the sixth largest US city in the next
30 years
- Wage growth outpaced the US average for the
last two years
- Home to fifteen FORTUNE 500 companies
• Auburn
- Home to a top Public Research University
- 6th best performing city for economic growth in
the U.S.
• Pensacola
- 50 acre port with over 200,000 tonnage of annual
shipments
- Home to the Naval Air Station
• West Point / LaGrange
- Charter’s home market, 23.3% market share
- Epicenter of the I-85 automotive industry
- KIA auto plant produced over half-a-million cars last year
10
Market Highlights http://www.ajc.com/news/local-govt--politics/census-
metro-atlanta-population-approaches-
million/1pxSPBRYI6L26zn4jgVBrN/
https://www.auburnalabama.org/economic-
development/auburn-community-
profile/National%20Recognition.pdf
http://www.fdot.gov/seaport/pdfs/2015%20Florida%20Seaport%20Profiles%20Final.pdf
’18 – ’23 Projected Population Growth
Unemployment Rate
1.7%
4.6%
5.2%
6.1%
6.7% 6.7%
US: 3.8%
0.0%
2.0%
4.0%
6.0%
8.0%
Alabama Southeast Georgia Pensacola, FL Atlanta, GA Auburn, AL
3.9% 4.0%
4.2%
4.6% 4.7%
US: 4.4%
2.0%
3.0%
4.0%
5
6.
Auburn, AL Pensacola, FL Alabama Atlanta, GA Georgia
Source: SNL Financial; LaGrange Chamber of Commerce; Auburn Economic Development, FDOT; KIA; Atlanta Journal Constitution
http://www.automobilemag.com/news/the-15-top-producing-american-car-plants-151801/
www.lagrangechamber.c
om/work/economic-
development
https://www.bls.gov/regions/southeast/summary/blss
ummary_atlanta.pdf
https://www.kmmgusa.com/about-kmmg/our-history/
Population Growth By County
11
Source: SNL Financial
(6%) to 0% (84)
.01% to 3% (90)
3.1% to 6% (68)
6.1% to 10.7% (51)
Total Pop. Growth
CHFN (22)
Source: SNL Financial
Deposit data as of 6/30/17
Demographic data deposit weighted by county
Acquired branches include all transactions announced since 12/31/07
12
Acquisitive Growth in Attractive Markets
‘18 – ‘23 Projected Population Growth (%) ‘18 – ‘23 Projected Median HHI Growth (%)
2023 Projected Median HHI ($)
4.1%
6.3%
5.5%
4.6%
0.0%
2.0%
4.0%
6.0%
8.0%
Legacy Branches Acquired Branches Combined Southeast
9.8% 9.9% 9.8%
6.5%
0.0%
3.0%
6.0%
9.0%
12.0%
Legacy Branches Acquired Branches Combined Southeast
$48,507
$73,669
$64,135
$54,678
$30,000
$45,000
$60, 00
$75,000
$90,000
Legacy Branches Acquired Branches Combined Southeast
5.5%
Median: 3.4%
(4.0%)
0.0%
4.0%
8.0%
12.0%
Top Quartile Southeast Banks by
Population Growth
13
Source: SNL Financial
Includes all major exchange traded banks headquartered in AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV with total assets between $1.0 bn and
$10.0 bn; excludes merger targets
Population Growth vs. Southeast Banks with Assets $1.0 bn - $10.0 bn
0.47% Median: 0.49%
0.00%
0.50%
1.00%
1.50%
2.00%
Low Cost of Deposits
Southeast Banks by Cost of Deposits
14
Source: SNL Financial as of September 30, 2017
Includes all major exchange traded banks headquartered in AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV with total assets between $1.0 bn and
$10.0 bn; excludes merger targets
Cost of Deposits vs. Southeast Banks with Assets $1.0 bn - $10.0 bn
Deposits Market % Deposits in
Rank Institution ($mm) Share Branches Atlanta
1 Fidelity Southern Corp. $3,062 1.84 % 46 78.4 %
2 Brand Group Holdings Inc. 1,840 1.10 7 97.2
3 Atlantic Capital Bancshares Inc. 1,573 0.94 1 73.9
4 Hamilton State Bancshares Inc. 1,335 0.80 24 86.3
5 State Bank Financial Corp. 1,271 0.76 7 30.1
6 United Bank Corp. 981 0.59 14 83.7
7 MetroCity Bankshares Inc. 740 0.44 6 77.5
8 Charter Financial Corp. 712 0.43 11 52.7
9 Piedmont Bancorp Inc. 502 0.30 4 74.6
10 Landmark Bancshares Inc. 443 0.27 3 100.0
11 CCF Holding Co. 380 0.23 6 100.0
12 Georgia Banking Co. 361 0.22 2 100.0
13 Quantum Capital Corp. 361 0.22 3 100.0
14 National Commerce Corp. 311 0.19 2 12.2
15 First IC Corp. 296 0.18 6 99.8
Strong Positioning in the Atlanta Metro
Market
15
• Rank 8th in deposit market share among community banks in Atlanta MSA with less than
$10.0 billion in assets
• 56% or $651 million of CHFN’s loans are in the Atlanta MSA
• Atlanta MSA proportion of CHFN’s deposits is 52% or $696 million
Source: SNL Financial, Company Documents
Peer Comparison data as of 6/30/17
CHFN bullet %’s of loans/deposits in MSA data as of 12/31/17
Atlanta Market Share – Banks Under $10 bn in Assets
West Point,
LaGrange,
GA & Valley,
AL
74%
Auburn, AL
MSA
26%
Atlanta, GA
MSA
53%
West Point,
LaGrange,
GA & Valley,
AL
24%
Auburn, AL
MSA
11%
Pensacola,
FL MSA
12%
Source: SNL Financial
Deposit data as of 6/30 each respective year 16
Expanded Presence in the Atlanta MSA
2007 Deposits by Market 2017 Deposits by Market
Checking Highlights
17
• 62,236 checking accounts
• 52,778 active debit cards
• 2.5% (1) gross fee yield on
checking account balances
• Bank card revenue 41% of
deposit fees
• 66% checking accounts accept
electronic statements
(1) Annualized fees divided by average checking account balances
(2) Data for the twelve months ended 12/31 each respective year
December 31, 2017
47,918
49,402
56,546
62,236
45,000
49,500
54,000
58,500
63,000
2014 2015 2016 2017
Total Checking Accounts (#) (2)
Demand
Deposits
7%
Transaction
Accounts
15%
Money
Market &
Savings
36%
Retail Time
Deposits
35%
Jumbo Time
Deposits
7%
Demand
Deposits
17%
Transaction
Accounts
26%
Money
Market &
Savings
27%
Retail Time
Deposits
26%
Jumbo Time
Deposits
4%
Deposit Highlights
18
2012 Q1 2018
Deposit Composition
Core Deposit Growth
Source: SNL Financial
Data as of or for the twelve months ended 9/30 each respective year
Core deposits defined as total deposits less wholesale deposits and jumbo time deposits greater than $250,000
$755 $718
$695
$684
$1,088
$1,245 $1,255
0.86%
0.61%
0.50% 0.44% 0.43%
0.47% 0.53%
0.20%
0.40%
0.60%
0.80%
1.00%
$400
$650
$900
$1,150
$1,400
2012 2013 2014 2015 2016 2017 Q1 2018
Core Deposits ($mm) Cost of Deposits (%)
Retail Checking Strategy
19
• Checking Strategy – Shared benefits influence card spend and swipe
selection, higher balances, e-statement adoption and account ‘stickiness’.
• Interchange Strategy – Rewarded customer behavior drives card
acceptance, top-of-wallet usage and credit (signature) spend.
Negotiated scale benefits with vendors.
• Overdraft Strategy – Early adopter 2010 FDIC Overdraft Guidance;
Availability based on deposit history; Low per item fee.
• Retention Strategy – Effective onboarding with ‘sticky’ services and
‘New Start Repayment’ Initiative.
Interchange Strategy
20
Drive Card Acceptance, Activation, Spend, Credit Swipe Mix – Low Durbin Impact
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2014 2015 2016 2017
Ca
rd
s
Active Checking Accounts Active Cards
Source: Company documents
Data for the twelve months ended 12/31 each respective year
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2014 5 2016 2017
Check Card Spend ($000)
Int
erc
ha
ng
e
($
00
0)
SIGN PIN Check Card Spend
• Favorable Signature/PIN ratio limits estimated Durbin impact to $250,000
Noninterest Income on Deposits
21
Source: Company documents
Data for the twelve months ended 12/31 each respective year
$9,646
$10,850
$12,269
$13,555
$0
$3,000
$6,000
$9,000
$12,000
$15,000
2014 2015 2016 2017
NII on Deposits ($000s)
22
Financial Information
$0.29
$0.35
$0.83
$1.01
$0.31
$0.93
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2014 2015 2016 2017 Q1 2018 Annualized
$1.24
Basic Earnings Per Share
23
Source: SNL Financial; Company documents
Data for the twelve months ended 9/30 each respective year
CAGR is based on 2014-2017
Performance Metrics
24
Return on Average Assets (%) Efficiency Ratio (%)
Return on Tangible Common Equity (%)
Source: SNL Financial; Company documents
Data as of or for the twelve months ended 9/30 each respective year
For the Return on Tangible Common Equity see Appendix
0.56% 0.56%
0.98% 0.98%
1.08%
0.25%
0.50%
0.75%
1.00%
1.25%
2014 2015 2016 2017 Q1 2018
82% 81%
72%
68%
60%
50%
60%
70%
80%
90%
2014 2015 2016 2017 Q1 2018
2.32% 2.68%
6.46%
8.18%
10.10%
0.00%
3.00%
6.00%
9.00%
12.00%
2014 2015 2016 2017 Q1 2018
$617
$726
$1,006
$1,162 $1,163
$500
$750
$1,000
$1,250
$1,500
2014 2015 2016 2017 Q1 2018
$717 $740
$1,162
$1,339 $1,344
$500
$750
$1,000
$1,250
$1,500
2014 2015 2016 2017 Q1 2018
Assets ($mm)
$1,010 $1,027
$1,438
$1,640 $1,644
$800
$1,050
$1,300
$1,550
$1,800
2 14 2015 2016 2017 Q1 2018
Balance Sheet Growth
25
Deposits ($mm) Gross Loans ($mm)
Source: SNL Financial
Data as of 9/30 each respective year
CAGR is based on 2014-2017
Credit Quality
26
Return on Average Assets (%) Efficiency Ratio (%)
Allowance for Loan Losses / Total Loans
NPAs / Total As ets Reserves / NPLs
Net Charge Offs / Total Average Loans
Source: SNL Financial; Company documents
Data as of or for the twelve months ended 9/30 each respective year
1.14%
0.73%
0.45%
0.19% 0.19%
0.00%
0.40%
0.80%
1.20%
1.60%
2014 2015 2016 2017 Q1 2018
223.1% 229.9%
277.7%
649.1%
575.1%
75.0%
225.0%
375.0%
525.0%
675.0%
2014 2015 2016 2017 Q1 2018
1.53%
1.30%
1.03%
0.96% 0.96%
0.00%
0.50%
1.00%
1.50%
2.00%
2014 2015 2016 2017 Q1 2018
0.06%
(0.00%)
(0.13%)
(0.16%)
(0.01%)
(0.20%)
(0.10%)
0.00%
0.10%
0.20%
2014 2015 2016 2017 Q1 2018
4.17%
3.82%
3.22%
3.67%
3.89%
3.67%
3.87%
1.06% 1.00%
0.35% 0.41% 0.42%
0.14% 0.10%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2012 2013 2014 2015 2016 2017 Q1 2018
Impact of Purchase Accounting on Net Interest Margin
Net Interest Margin
Data for twelve months ended 9/30 each respective year
27
Net Interest Margin
28
Non-Interest Income
Dollars in millions
Noninterest Income adjusted for FDIC purchase accounting accretion
*Other includes BOLI, Brokerage Commissions, Gain/Loss on Sale of Securities, Recovery on Purchase Accounting Loans
Data for the twelve months ended 9/30 each respective year
11.5%
22.2%
$0.0
$6.0
$12.0
$18.0
$24.0
2012 2013 2014 2015 2016 2017 Q1 2018
Deposit Fees 1-4 Loan Gain on Sale Other*
$11.5
21.8%
66.7%61.2%
30.4%
64.9%
27.5%
$14.5
57.2%
32.7%
$14.8
71.0%
18.1%
$21.0
$11.6 10.1%
10.9%
7.6%
11.5%
8.4% 68.3%
12.6%
19.1%
$19.2
66.3%
$5.4
29
Operating Leverage
Dollars in millions
FY 2016 - Noninterest Expense includes $4.2 million of deal costs
FY 2017 - Noninterest Expense includes $1.9 million of deal costs
Data for the twelve months ended 9/30 each respective year
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
2012 2013 2014 2015 2016 2017 Q1 2018
Annualized
Net Operating Revenue G&A Expenses
$0.0
$12.0
$24.0
$36.0
$48.0
2012 2013 2014 2015 2016 2017 Q1 2018
Salaries and Benefits Other Occupancy & Furn. and Equip. Professional Services Marketing
22.4%
17.9%
50.8%48.0%
21.7%
21.6%
54.6%
14.1%
22.7%
$36.2
56.5%
11.9%
23.3%
$36.8
23.2%
56.2%
13.3%
$45.4
$40.3
$36.3
55.1%
7.6%
29.8%
$46.5
4.0%
3.5%
4.6%5.3%
4.0%
4.7%
3.6% 4.0% 3.5%
3.2%
3.8%
5.1%
59.0%
21.5%
14.5%
$11.9
30
Non-Interest Expense
Dollars in millions
FY 2016 - Noninterest Expense includes $4.2 million of deal costs
FY 2017 - Noninterest Expense includes $1.9 million of deal costs
Data for the twelve months ended 9/30 each respective year
31
Why Charter?
Investment Merits
32
• Accelerating EPS growth
• Positioned in high growth markets including Atlanta MSA
• Capacity for additional operating and capital leverage
• Focused on organic growth
• Strategic M&A potential
• Track record of returns to shareholders
• Annualized total return since 2013 stock conversion of 14.6%
Investor Contacts
1233 O. G. Skinner Drive
West Point, Georgia 31833
1-800-763-4444
www.charterbk.com
33
Robert L. Johnson
Chairman and Chief Executive Officer
bjohnson@charterbank.net
(706) 645-3249
Lee W. Washam
President
lwasham@charterbank.net
(706) 645-3630
Curtis R. Kollar
Senior Vice President and
Chief Financial Officer
ckollar@charterbank.net
(706) 645-3237
34
Appendix
Non
Interest
Bearing
17%
Interest
Bearing &
Other Trans
25%
MMDA &
Sav
27%
Time
Deposits <
$250k
24%
Time
Deposits >
250k
7%
Loan Portfolio Amount % of Total
C&D 165,440 14 %
1-4 Family 242,588 21
Home Equity 42,702 4
Owner-Occupied CRE 200,194 17
Other CRE 333,890 29
Multifamily 30,073 3
C&I 96,651 8
Consr & Other 51,910 4
Gross Loans & Leases $1,163,448 100.0 %
Deposit Type Amount % of Total
Non Interest Bearing $232,156 17 %
Interest Bearing & Other Trans 342,527 25
MMDA & Sav 360,195 27
Time Deposits < $250k 320,095 24
Time Deposits > 250k 89,024 7
Total Deposits $1,343,997 100.0 %
C&D
14%
1-4 Family
21%
Home Equity
4%
Owner-
Occupied
CRE
17%
Other CRE
29%
Multifamily
3%
C&I
8%
Consr &
Other
4%
Loan and Deposit Detail
35 Data as of 12/31/17
Source: SNL Financial
Loans Deposits
Reconciliation of Non-GAAP Measures
36
Source: SNL Financial
Data as of or for the twelve months ended 9/30 each respective year
2014 2015 2016 2017 Q1 2018
Tangible Book Value Per Share
Book value per share $12.32 $12.79 $13.52 $14.17 $14.42
Effect to adjust for goodwill and other intangible assets ($0.26) ($0.31) ($2.16) ($2.84) ($2.83)
Tangible book value per share (Non-GAAP) $12.06 $12.48 $11.36 $11.33 $11.59
Tangible Common Equity Ratio
Total eq ity to total assets 22.26% 19.95% 14.12% 13.06% 13.27%
Effect to adjust for goodwill and other intangible assets -0.36% -0.39% -1.98% -2.34% -2.31%
Tangible common equity ratio (Non-GAAP) 21.90% 19.56% 12.14% 10.72% 10.96%
Return on Average Tangible Equity
Return on average equity 2.28% 2.62% 5.90% 6.89% 8.10%
Effect to adjust for goodwill and other intangible assets 0.04% 0.06% 0.56% 1.29% 2.00%
Return on average tangible equity (Non-GAAP) 2.32% 2.68% 6.46% 8.18% 10.10%
Interest Rate Risk Bank Net Portfolio
37
(1) Assumes an instantaneous uniform change in interest rates at all maturities.
(2) NPV is the difference between the present value of an institution's assets and liabilities.
(3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.
(4) NPV ratio represents NPV divided by the present value of assets.
At December 31, 2017
Change in Interest
Ra s (bp) (1) Estimated NPV (2)
Estimated
Increase
(Decrease)
in NPV
Percentage
Change in
NPV
NPV Ratio as a
Percent of
Present Value of
Assets (3)(4)
Increase (Decrease)
in NPV Ratio as a
Percent of Present
Value of Assets (3)(4)
(dollars in thousands)
300 $299,295 $21,298 7.7% 18.3% 1.3%
200 $293,106 $15,109 5.4% 18.0% 1.0%
100 $286,084 $8,087 2.9% 17.5% 0.5%
— $277,997 — — 17.0% —
(100) $259,452 ($18,545) (6.7%) 15.9% (1.1%)
