Attached files
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| 8-K - FORM 8-K - Encore Bancshares Inc | d8k.htm |
 1
EBTX Investor Presentation
February 8, 2011
KBW Texas Field Trip
Exhibit 99.1 |
 2
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
Encore Profile
Businesses:
Community Bank,
Wealth Management and Insurance
Headquarters:
Houston, Texas
Total Assets:
$1.5 billion
Total Loans:
$0.9 billion
Total Deposits:
$1.1 billion
Assets Under Management:
$2.9 billion
Total Equity:
$168 million
Tier 1 Risk-Based Capital:
15.06%
Private Client Offices:
11*
Current as of December 31, 2010
*Additional private client office expected to be opened Q2 2011
|
 4
Current Position
•
Florida exit completed
•
Improving asset quality
•
Building Houston franchise
•
Growing fee based businesses
•
Solid capital
•
Improving net interest margin |
 5
Florida Exit Completed
•
Ovation transaction -
December 31, 2010
•$180.8 million of deposits
•$61.5 million of loans
•4 branches
•
On October 29, sold $25.3 million in loans,
including $19.8 million in non-performing loans |
 6
Non-performing Assets -
Florida
5.1
4.1
7.4
5.1
4.5
13.2
41.8
34.2
31.9
26.1
$0
$15
$30
$45
$60
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
FL Loans
FL REO
Total
$31.2
Total
$36.0
Total
$49.2
Total
$39.3
Total
$17.7
$ in millions |
 7
Non-performing Assets -
Texas
8.9
2.4
7.9
8.5
8.7
14.5
6.4
7.2
6.5
2.7
4.8
5.8
6.2
7.0
9.5
$0
$15
$30
$45
$60
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Commercial Nonaccruals
Consumer Nonaccruals
REO
Total
$19.4
Total
$15.8
Total
$28.6
Total
$23.2
Total
$20.0
$ in millions |
 8
Building Houston Franchise
•
Take advantage of market disruptions
•
Utilize strong team of experienced commercial and
private bankers
•
Leverage local decision making and local contacts
•
Continue to grow DDA deposits and commercial loan
portfolio |
 9
Houston Market
•
4
th
largest city; 6
th
largest MSA
•
Unemployment rate of 8.3% vs. 9.4% for U.S.*
•
Population growth ranked 2
nd
in the nation between
2000 and 2009
•
Second largest U.S. port based on tonnage
•
Texas entered recession a year later; exiting at the
same time
*Houston MSA rate is not seasonally adjusted
Source: Greater Houston Partnership; U.S. Dept. of Labor
|
 10
Houston Deposit Market Share
# of Branches
$ in Millions
Market Share %
1
JP Morgan Chase (NY)
216
41,181
$
30.01%
2
Wells Fargo (CA)
237
14,798
10.78%
3
Bank of America (NC)
119
9,755
7.11%
4
Zions (Amegy) (UT)
83
8,577
6.25%
5
BBVA (Spain)
79
7,831
5.71%
6
Comerica *
67
4,658
3.39%
7
Prosperity
56
3,039
2.21%
8
Capital One (VA)
51
2,365
1.72%
9
Woodforest
106
2,351
1.71%
10
Frost
28
2,304
1.68%
11
Regions (AL)
27
1,519
1.11%
12
Bank of Texas (OK)
15
1,379
1.00%
13
Encore
11
1,033
0.75%
June 30, 2010
*Combined with Sterling Bank
Source: FDIC Bank Data & Statistics |
 11
Houston Market
Includes additional private client office expected to be opened Q2 2011.
|
 12
Houston Loans
$335
$320
$308
$308
$345
$882
$892
$886
$868
$873
$0
$400
$800
$1,200
$1,600
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Commercial Loans
Total Loans
$ in millions |
 13
Loan Portfolio *
Residential 1st lien
22.3%
Commercial
15.7%
Residential 2nd
lien
29.2%
Commercial real
estate
16.8%
FL Retain
2.1%
Consumer
2.7%
Construction
4.9%
Home equity lines
6.3%
*As of December 31, 2010
Excludes held-for-sale of $12.8 million. |
 14
Residential Loan Portfolio
$0
$100
$200
$300
$400
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1st SBO
1st Mortgage
PMT
HELOC/Others
$222
$366
$211
$358
$216
$357
$207
$344
$206
$330
$ in millions |
 15
Residential Loan Delinquency
0%
4%
8%
12%
16%
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1st Mortgage
1st Mortgage SBO
PMT
HELOC/Others |
 16
Houston Deposits
$ in millions
$183
$220
$206
$155
$156
$955
$959
$1,016
$1,044
$1,050
$0
$400
$800
$1,200
$1,600
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Noninterest-bearing Deposits
Total Deposits |
 17
Deposit Mix
Money market
and savings
26.5%
Noninterest-
bearing deposits
20.9%
Interest checking
16.6%
CDs under
$250,000
25.7%
CDs over
$250,000
8.3%
Brokered
deposits
2.0%
As of December 31, 2010 |
 18
Margin Improvement *
3.14%
2.89%
2.83%
2.92%
3.04%
3.11%
0.00%
1.00%
2.00%
3.00%
4.00%
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
4Q 10
Proforma
* Tax Equivalent |
 19
Wealth Management
$2.7
$2.6
$2.7
$2.9
$2.8
$0
$1
$2
$3
$4
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Assets Under Management
$ in Billions |
 20
Wealth Management
$4.6
$4.6
$4.7
$5.2
$4.7
$0
$2
$4
$6
$8
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Revenues
$ in Millions |
 21
Insurance
•
Property and casualty insurance agency
•
Revenues of $5.9 million
•
Return on invested capital of 20%
•
Over 8,000 customers |
 22
Solid Capital
12/31/2010
TCE/ Tangible Assets
6.86%
Leverage Ratio
9.06%
Tier 1 RBC
15.06%
Tier 1 Common RBC
10.28%
Allowance for Loan Losses/ Total Loans *
2.02%
* Excluding held for sale |
 23
Investment Considerations
•
Solid capital position
•
Improving asset quality
•
Capacity for margin improvement
•
Attractive market valuation relative to peers
•
High margin fee-based businesses
•
Desirable Houston franchise |
 24
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.
$ in Thousands
Dec 31, 2010
Shareholders' equity (GAAP)
167,961
$
Less: Preferred stock
29,500
Goodwill and other intangible assets, net
40,515
Tangible common equity (1)
97,946
$
Total assets (GAAP)
1,467,817
$
Less: Goodwill and other intangible assets, net
40,515
Tangible assets
1,427,302
$ |