Attached files
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| 8-K - RELIANT BANCORP, INC. 8-K - Reliant Bancorp, Inc. | a51910756.htm |
Exhibit 99.1
December 2018 Q4 2018 Investor Presentation
Safe Harbor Statements Forward Looking StatementsThis presentation includes forward-looking statements
within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual
results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any
such statements. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the
future are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking. All forward-looking statements are subject to risks, uncertainties and other
factors that may cause the actual results, performance or achievements of Reliant Bancorp to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among
others: (i) the possibility that our asset quality would decline or that we experience greater loan losses than anticipated; (ii) increased levels of other real estate, primarily as a result of foreclosures; (iii) the impact of liquidity needs
on our results of operations and financial condition; (iv) competition from financial institutions and other financial service providers; (v) the risk that the cost savings and any revenue synergies from our merger with Community First, Inc.
(“Community First”) may not be realized or take longer than anticipated to be realized; (vi) the effect of the announcement or completion of the Community First merger on employee and customer relationships and operating results (including,
without limitation, difficulties in maintaining relationships with employees and customers); (vii) the risk that integration of Community First’s operations with those of Reliant Bancorp will be materially delayed or will be more costly or
difficult than expected; (viii) the amount of costs, fees, expenses, and charges related to the Community First merger; (ix) reputational risk and the reaction of the parties’ customers, suppliers, employees or other business partners to the
Community First merger; (x) general competitive, economic, political and market conditions, including economic conditions in the local markets where we operate; (xi) the impact of negative developments in the financial industry and U.S. and
global capital and credit markets; (xii) our ability to retain the services of key personnel; (xiii) our ability to adapt to technological changes; (xiv) risks associated with litigation, including the applicability of insurance coverage; (xv)
the vulnerability of Reliant Bank’s digital network and online banking portals, and the systems of parties with whom Reliant Bancorp and Reliant Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human
error, natural disasters, power loss and other security breaches; (xvi) changes in state and federal legislation, regulations or policies applicable to banks, including regulatory or legislative developments; (xvii) adverse results (including
costs, fines, reputational harm and/or other negative effects) from current or future litigation, regulatory examinations or other legal and/or regulatory actions; (xviii) general competitive, economic, political and market conditions.
Non-GAAP Financial MeasuresThis presentation contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (GAAP) and, therefore, are considered non-GAAP financial measures. Members
of Reliant’s management use these non-GAAP financial measures in their analysis of the Company’s performance, financial condition, and efficiency of operations. Management of Reliant believes that these non-GAAP financial measures provide a
greater understanding of ongoing operations, enhance comparability of results with prior periods, and demonstrate the effects of significant gains and charges in the current period. Management also believes that investors find these non-GAAP
financial measures useful as they assist investors in understanding underlying operating performance and the analysis of ongoing operating trends. However, the non-GAAP financial measures discussed herein should not be considered in isolation
or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the non-GAAP financial measures discussed herein are calculated may differ from that of other
companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar to, or with names similar to, the non-GAAP financial measures we have discussed herein when
comparing such non-GAAP financial measures.This presentation contains certain non-GAAP financial measures, including, without limitation, tangible assets, tangible book value, tangible common equity, tangible common equity to assets, efficiency
ratio, adjusted income return on average assets, and return on tangible common equity. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are provided in the appendix to this presentation.
Reliant Bank Franchise Overview Source: S&P Global Market Intelligence Financial data as of or for
the three months ended 9/30/18; ownership data as of most recent available; pricing data as of 11/12/18Refer to appendix for “Reconciliation of non-GAAP financial measures”Community bank defined as institutions with total assets less than $10
billion Q3 ‘18 Financial Summary Commercially oriented bank headquartered in Brentwood, Tennessee Focused on fast growing Middle Tennessee markets coupled with recent expansion into Chattanooga, Tennessee11th largest bank by deposits in the
Nashville MSA and 3rd largest community bank(2) by deposits headquartered in the Nashville MSAConcentrated on building in-market banking relationships; 80% of top 50 loan relationships have related deposits at the bankExperienced management
team with extensive local market knowledge12.3% insider ownership amongst management and the board of directors Key Franchise Highlights Branch
Network HAMILTON Chattanooga Columbia MAURY Full Service Branch (16)Mortgage LPO (1)Chattanooga (Q4)
Our History Source: S&P Global Market Intelligence and Company
Filings 2006 2014 2015 2017 1/9/2006Reliant Bank established 4/1/2015CUBN and Reliant close merger. $791 million in assets 4/28/2014CUBN and Reliant announce merger 7/7/2015Stock begins trading on Nasdaq 3/6/2017Opened Green
Hills branch in Davidson County Total Assets($mm) Reliant Bank Commerce Union
Bank 2012 2013 2014 2015 2017 2016 2011 2010 2009 2008 2007 2006 $385 $385 $450 $363 $379 $382 $317 $205 $111 $232 $253 $296 $209 $187 $148 $133 $98 $35 $876 $912 $1,125 2/21/2017Expansion into
Chattanooga 8/14/2006Commerce Union Bank established 6/30/2017Surpassed$1 billion in assets 8/23/2017Announced Merger with Community First & $25 million Private Placement Q3 ‘18 $1,684 2018 1/1/2018Completed Merger with
Community First 12/31/2017Officially rebranded as Reliant Bancorp, Inc.
Experienced Management Team Source: S&P Global Market Intelligence DeVan D. Ard, Jr.Chairman,
President & CEO Former Area Executive in Middle Tennessee at AmSouth BankFounder of Reliant Bank in 2006 37 years of banking experience / 13 years at RBNC / 19 years in Middle TN James Daniel Dellinger CFO Former Chief Financial Officer
at Premier Bank of BrentwoodFormer Chief Financial Officer at Erwin National Bank26 years of banking experience / 12 years at RBNC / 21 years in Middle TN Louis E. HollowayExecutive VP, COO Executive Vice President – Chief Operating Officer
since January 2018Former Chief Executive Officer of Community First, Inc.42 years of banking experience / <1 year at RBNC / 32 years in Middle TN Alan MimsExecutive VP, CCO Eddie GammonExecutive VP, Director of Operations Kim
YorkExecutive VP, CSO John R. WilsonExecutive VP, CLO Executive Vice President – Chief Credit Officer since December 2017Former Senior Examiner and Case Manager for the Federal Reserve Bank of Atlanta29 years of banking experience / 1 year at
RBNC / 1 year in Middle TN Executive Vice President – Director of Operations since March 2016Former Senior Vice President of Operations at IBERIABANKFormer Senior Vice President – Director of Deposit Operations at Avenue Bank33 years of
banking experience / 2 years at RBNC / 3 years in Middle TN Executive Vice President – Chief Loan Officer Former Spring Hill Market President for Cumberland Bank29 years of banking experience / 12 years at RBNC / 29 years in Middle
TN Executive Vice President – Chief Strategy Office since March 2017Former Senior Vice President and Chief Marketing Officer at Ascend Federal Credit Union23 years of banking experience / 2 years at RBNC / 23 years in Middle TN
Nashville Deposit Market Share Dollars in millionsSource: S&P Global Market IntelligenceDeposit
market share data as of 6/30/18Community bank defined as an institution with less than $10 billion in total assetsPercent of total deposits in the Nashville MSA Top 25 Deposit Market Share
Nashville MSA Demographics Source: S&P Global Market Intelligence, Bureau of Labor Statistics,
Nashville Area Chamber of Commerce, U.S. Census Bureau- 2016RBNC deposit data weighted by county Nashville Market Highlights 2024 Median Household Income (HHI) ($) ‘19 – ‘24 Projected HHI Growth (%) ‘19 – ‘24 Projected Population Growth
(%) ScaleThe Nashville MSA is expected to surpass the current size of Austin, Charlotte, Portland, and Denver regions by 2035, with a population of 2.6 millionThe Nashville MSA is the 8th largest Southeast metropolitan area with a population
exceeding 1.9 million as of July 2018The Nashville region gained 69 net new people per day on average in 2016Population grew approximately 11.9% from 2012 through 2018 at 1.90% annually Unemployment rate of 3.0% is below the national average of
3.7% as of September 2018Median HHI growth of 16.5% from 2000-2012Strong Business EnvironmentPersonal state income tax: 0.0%Ranked 3rd in “The Best Big Cities for Jobs 2017” 7th on Forbes’ list of fastest-growing cities of 2018Ranked 1st on
Forbes’ list for metro area job growth in professional and business services (2017)Historic success in landing major brand-name corporate relocations including Nissan North America, Dell Computer, Caterpillar Financial, Ford Motor Credit, and
AllianceBernstein (2018)Home to 14 Fortune 1000 companies, including 5 Fortune 500 headquartersRecent announcements by Amazon and E&Y to bring 5,600 jobs to NashvillePassionate Sports Fan Base Nashville PredatorsTennessee Titans
(1) (1) (1)
Projected Population Growth by County Projected Population Growth by 2030 Source: Boyd Center for
Business and Economic Research, University of Tennessee, Knoxville - September 2017Deposit market share data as of 6/30/18; pro forma for announced transactions TN County Ranking 1 2 5 9 10 14 25 54 Market Share
Rank 7 NA 8 2 4 26 NA 1
Growing and Diversified Lending Platform Source: S&P Global Market Intelligence, Company
documentsData as of or for the three months ended 9/30/18Note: Loan portfolio composition utilizes call report categories based on collateral type(1) Based upon non-owner occupied CRE portfolio as of 9/30/18 Loan Portfolio Composition Loans
Held for Investment ($mm) Commercial Real Estate Portfolio (1) C&D Portfolio
Asset Quality Source: S&P Global Market IntelligenceData as of or for the three months ended each
respective quarterData has been annualized Nonperforming Assets Net Charge Offs (recoveries) / Average Loans (%) (1)
Deposit Portfolio Dollars in millionsSource: S&P Global Market Intelligence; Company DocumentsData
as of or for the three months ended each respective quarter Deposit Composition – 9/30/18 Demand Deposits ($mm) Total Deposits ($mm) & Cost of Deposits (%)
Reported ROAA (%) Historical Profitability Trends Source: S&P Global Market Intelligence, Company
Documents Data as of or for the three months ended each respective quarterRefer to appendix for “Reconciliation of non-GAAP financial measures” Adjusted ROAA (1) (%) Reported ROTCE (%) Adjusted ROTCE (1) (%)
Net Interest Margin (1) (%) Historical Profitability Trends Source: S&P Global Market
Intelligence, Company Documents Data as of or for the three months ended each respective quarterNet interest margin is defined as net interest income calculated on a tax-equivalent basis divided by average earning assets Per segment reporting;
excludes impact of mortgage joint venture Retail Banking Non-Interest Income (2) / Average Assets (%) Retail Banking Efficiency Ratio (2) (%) Retail Banking Non-Interest Expense (2) / Average Assets (%)
Capital & Liquidity Position TCE / TA (1) (%) Gross Loans / Deposit Ratio (%) Leverage Ratio
(%) Total Risk Based Capital Ratio (%) Source: S&P Global Market IntelligenceData as of or for the three months ended each respective quarterRefer to appendix for “Reconciliation of non-GAAP financial measures”
Reported Quarterly EPS ($) Focused on Delivering Shareholder Value Adjusted Quarterly EPS (1)
($) Tangible Book Value per Share (1) ($) Dividends per Share ($) Source: S&P Global Market IntelligenceData as of or for the three months ended each respective quarterRefer to appendix for “Reconciliation of non-GAAP financial measures”
Our Strategy for 2018 Maintain focus on organic growthCore deposit growth / deposit mixFull service
offices in Murfreesboro (Q3) and Chattanooga (Q4)Add lending talent in key growth marketsCommitment to superior asset qualityImprove operating efficiency following Community First integrationExpand digital channelStrategic M&A
opportunities
Appendix
Reconciliation of Non-GAAP Financial Measures * Net of taxes as reported in company documents
Reconciliation of Non-GAAP Financial Measures (cont.)
Reconciliation of Non-GAAP Financial Measures (cont.) Excludes impact of mortgage joint venture
Reconciliation of Non-GAAP Financial Measures (cont.) Excludes impact of mortgage joint venture