Attached files
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| 8-K - FORM 8-K - Encore Bancshares Inc | d8k.htm |
 Encore
Encore
Bancshares,
Inc.
Bancshares,
Inc.
Gulf South Bank Conference
Gulf South Bank Conference
New Orleans , Louisiana
New Orleans , Louisiana
May
May
5,
5,
2010
2010
Exhibit 99.1 |
 2
Forward-Looking Statements
Forward-Looking Statements
•
This presentation may include forward-looking statements. These
forward-looking statements
include
comments
with
respect
to
assumptions
relating
to
projected
growth, earnings, earnings per share, capital levels and ratios and other financial
performance measures, as well as management’s short-term and
long-term performance, trends, anticipated effects on results of
operations or financial condition from recent and expected developments or
events relating to business and growth strategies and any other statements,
projections or assumptions that are not historical facts.
•
These statements are based upon Encore Bancshares, Inc.’s current expectations
and beliefs. However, these forward-looking statements are based on
assumptions and are subject to known and unknown risks, and uncertainties.
Factors that could cause actual results, performance or achievements, to
differ materially from anticipated or projected results, performance or
achievements expressed or implied by these forward-looking statements are
described under “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2009 and other reports and documents filed by the Company from
time to time with the SEC.
•
You should not place undue reliance on any forward-looking statements. These
statements speak only as of the date the statement is made. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, changed
circumstances or any other reason after the date the statement is made.
|
 3
Company Type:
Financial Holding Company
and Wealth Management
Headquarters:
Houston, Texas
Total Assets:
$1.6 billion
Total Loans:
$1.1 billion
Total Deposits:
$1.2 billion
Total Equity:
$190 million
Tier 1 Risk-Based Capital:
15.56%
Assets Under Management:
$2.8 billion
Private Client Offices:
17
Encore Profile
Encore Profile
As of March 31, 2010. |
 4
•
Sell approximately $242.8 million of deposits
-
$58.9 million to HomeBanc
-
$183.9 million to Ovation
•
Sell approximately $80.0 million of loans to Ovation
•
Sell 6 offices and $3.0 million of fixed assets
•
1Q 10 write down of $4.3 million
•
Net loss approximately $1.0 million after-tax upon closings
Florida Transactions
Florida Transactions
As of March 31, 2010 |
 5
•
Regulatory applications filed
-
OCC
-
Ovation Holding Company at Atlanta Fed Reserve
•
HomeBanc
expected to close before end of 2Q 10
•
Ovation expected to close before end of 3Q 10
Florida Transactions-
Florida Transactions-
Status
Status |
 6
•
Florida expected to recover slowly
•
Houston participating in recovery now
•
Redeploy capital to Houston franchise
•
Improves operating metrics
•
Improves net interest margin
Florida Transactions -
Florida Transactions -
Strategy
Strategy |
 7
•
4th largest city; 6th largest MSA
•
Job growth in January, February and March 2010
•
Unemployment rate of 8.5% vs. 9.7% for U.S.
•
Population growth of 140,784 or 2.45%
•
Second largest U.S. port based on tonnage
•
TX entered recession a year later; exiting at the same time
Houston Market
Houston Market
Source: Greater Houston Partnership |
 Houston Deposit Market Share
Houston Deposit Market Share
# of
Branches
$
Millions
Market
Share %
Market
Share %
1 JP Morgan Chase (NY)
217
38,234
33.40%
35.50%
2 Wells Fargo (CA)
240
14,176
12.38%
12.43%
3 Bank of America (NC)
120
10,842
9.47%
9.14%
4 Zions
(Amegy) (UT)
80
7,878
6.88%
6.04%
5 BBVA (Spain)
86
7,539
6.58%
7.03%
15 Encore
11
951
0.83%
0.79%
June 30, 2009
June 30, 2008
Source: SNL Financial |
 Loan Portfolio (pro forma)*
Loan Portfolio (pro forma)*
* Excludes Florida
Held-for-Sale of $80.0
million Total Loans: $974.3 million
March 31, 2010
Consumer
2.4%
Real estate
construction
4.8%
Home equity
lines
7.1%
FL legacy
7.5%
Commercial
11.6%
Commercial
real estate
15.2%
Residential
1st lien
21.7%
Residential
2nd lien
29.7% |
 10
Florida Legacy Portfolio
Florida Legacy Portfolio
Amount
% of Loans
NPL
Commercial Real Estate
Retail
$ 11.2
1.1%
$
4.7
Office Building
21.9
2.3%
4.6
Industrial & Warehouse
7.9
0.8%
0.7
Other
10.2
1.0%
6.7
Construction and Land
Land
16.4
1.7%
8.6
Multi-Family
2.8
0.3%
0.2
C & I
2.7
0.3%
0.2
Total
$ 73.1
7.5%
$ 25.7 |
 Deposits (pro forma)*
Brokered
deposits
2.7%
CDs under
$100,000
13.6%
Money market
and savings
25.5%
Interest checking
16.3%
Noninterest-
bearing deposits
15.6%
CDs over
$100,000
26.3%
* Excludes Florida Held
for Sale Total Average Deposits: $940.5 million
First quarter 2010 |
 12
Expenses (pro forma)
Expenses (pro forma)
$ in thousands
*
Excludes write down of Held for Sale Assets of $2.5 million
Q1 2010
Actual
Florida
Pro Forma
Compensation
$ 8,551
$ 571
$ 7,980
Occupancy
$ 1,478
$ 261
$ 1,217
FDIC
$ 655
$ 127
$ 528
Other
$ 5,045
$ 330
$ 4,715
Total
$ 15,729
$ 1,289
$ 14,440
Efficiency Ratio
85.09%
79.70% |
 Net Interest Margin*
Net Interest Margin*
* Tax
Equivalent |
 Wealth Management
Wealth Management
$2.1
$2.5
$2.7
$2.8
$2.3
$0
$1
$2
$3
$4
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
Assets Under Management
AUM $ in Billions
REV $ in Millions |
 30+ Day Delinquency
30+ Day Delinquency
$ in millions
Total Delinquency to Total Loans |
 Nonperforming Assets
Nonperforming Assets
$ in millions
$27.8
$21.2
$31.7
$27.4
$27.0
$5.5
$8.0
$7.0
$14.6
$11.1
$6.9
$7.3
$6.6
$8.5
$13.7
$0
$15
$30
$45
$60
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
Commercial Nonaccruals
Investment in real estate
Consumer Nonaccruals |
 Capital Ratios
Capital Ratios
* Excludes Florida held
for sale assets. Actual
Pro Forma *
TCE/Tangible Assets
7.52%
9.01%
Leverage Ratio
10.73%
12.82%
Tier 1 RBC
15.56%
16.92%
Tier 1 Common RBC
11.05%
12.07%
Allowance for Loan Losses
2.56%
March 31, 2010 |
 Encore Approach to Capital
Encore Approach to Capital
•
Maintain and incrementally improve capital ratios
•
Florida transaction effectively raises capital
•
Reduce tangible assets (weak loan demand and
Florida transactions)
•
Repayment of TARP
•
No current plans to repay
•
Shareholder–friendly approach |
 Commercial Banking Initiative
Commercial Banking Initiative
•
Take advantage of market opportunities
•
Attract experienced commercial and private bankers
•
Leverage local decision making and local contacts
•
Expand margin and diversify portfolio |
 Investment Considerations
Investment Considerations
•
Low market valuation relative to peers
•
Strong capital position
•
Significant revenue from wealth management and insurance
•
Growing franchise in Houston
•
Capacity for margin improvement
•
Commercial banking initiative |
 Non-GAAP Financial Measures
Non-GAAP Financial Measures
(1) Tangible common equity, a non-GAAP financial measure,
includes total equity, less preferred equity, goodwill and other intangible assets. Management reviews
tangible common equity along with other measures of capital as
part of its financial analyses and has included this information because of current interest on the part
of market participants in tangible common equity as a measure
of capital. The methodology of determining tangible common
equity may differ among companies. (1) Net interest margin
is reported on a taxable-equivalent basis. The taxable-equivalent adjustment to net interest income recognizes the income tax savings
when comparing taxable and tax-exempt assets. Management
believes that it is a standard practice in the banking industry to present net interest margin on a
fully taxable-equivalent basis. Management believes these
measures provide useful information to investors by allowing them to make peer comparisons.
$ in Thousands
March 31,
Dec 31,
Sept 30,
June 30,
March 31,
2010
2009
2009
2009
2009
Net interest income (GAAP)
11,490
$
11,621
$
11,955
$
11,458
$
11,461
$
Taxable-equivalent adjustment (1)
126
129
126
123
76
Net interest income on a taxable-equivalent basis
11,616
$
11,750
$
12,081
$
11,581
$
11,537
$
Three Months Ended
March 31,
2010
Shareholders' equity (GAAP)
190,210
$
Less: Preferred stock
29,107
Goodwill and other intangible assets, net
40,991
Tangible common equity (1)
120,112
$
Total assets (GAAP)
1,637,916
$
Less: Goodwill and other intangible assets, net
40,991
Tangible assets
1,596,925
$ |