Attached files
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| 8-K - FORM 8-K - SI Financial Group, Inc. | d924364d8k.htm |
 Annual
Shareholders’ Meeting
May 13, 2015 |
 Forward Looking
Statements This presentation contains forward-looking statements, which can be
identified by the use of words such as “believes,” “expects,”
“anticipates,”
“estimates”
or similar expressions. 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 which are based on our current beliefs and expectations,
are subject to significant risks and uncertainties. Actual results may differ
materially from those contemplated by the forward-looking statements due to, among others,
the following factors:
general economic conditions, either nationally or in our market areas, that are different than
expected; changes in the interest rate environment that reduce our margins
or reduce the fair value of financial instruments;
increased competitive pressures among financial services companies;
changes in consumer spending, borrowing and savings habits;
legislative or regulatory changes that adversely affect our business;
adverse changes in the securities and credit markets; and
changes in accounting policies and practices, as may be adopted by bank regulatory agencies or
the Financial Accounting Standards Board.
Any forward-looking statements made by us speak only as of the date hereof. Any of the
forward-looking statements that we make in this presentation may later prove
incorrect because of inaccurate assumptions, the factors illustrated above or other factors that we
cannot foresee.
Because of these and other uncertainties, our actual future results may be materially
different from the results indicated by these forward-looking statements. We
do not undertake, and specifically disclaim any obligation, to revise any forward-looking statements
contained in this presentation.
2 |
 (1)
Closing price
(2)
See Appendix –
Non-GAAP Financial Measures
(3)
Quarterly dividend increased to $0.04 in January 2015
Market Summary
Issuer:
March 31, 2014
March 31, 2015
Listing/Ticker Symbol:
Nasdaq Global Market/”SIFI”
Market Price Per Share:
(1)
$11.27
$12.15
Shares Outstanding:
12,822,157
12,776,315
Market Capitalization:
$144.5 million
$155.2 million
Tangible Book Value Per
Share:
(2)
$10.52
$11.00
Price to Tangible Book Value:
107.13%
110.45%
Dividend Yield:
(3)
1.06%
1.32%
3 |
 Company
Overview |
 Headquartered
in Willimantic, CT Established in 1842
Total assets in 1995: $252 million
Total assets as of December 31, 2014: $1.35 billion
5 |
 Business
Strategy Community oriented focus by offering a full range of financial products and
services
Optimize future growth opportunities by executing a proven business model and
by opportunistically seeking branch or whole bank acquisitions in areas in or
adjacent to existing market area
Prudently diversify the asset mix and geographic concentration by selectively
increasing the percentage of commercial business loans, multi-family and
commercial real estate loans locally and in the New England region and by
expanding the existing portfolio of time share and homeowner association loans
Continue
conservative
underwriting
practices
and
maintain
a
high
quality
loan
portfolio
Increase core deposits by emphasizing exceptional customer service, cross-selling
our full range of financial products and increasing our commercial deposits
Supplement noninterest income through expanded mortgage banking and wealth
management operations
6 |
 Financial
Highlights |
 Assets as of
December 31, 2014 - $1.35 billion
8
Cash & cash equivalents
3%
Securities -
AFS
13%
Loans receivable, net
77%
FHLB stock
1%
Bank-owned life ins.
2%
Other assets
4% |
 Securities
Portfolio Comparison 9
38%
16%
39%
2%
4%
1%
December 31, 2014
US Govt & Agency
Govt-spons. Enter.
MBS -
Agency
Oblig State/Political
Tax-exempt
Other
($173 million)
32%
15%
45%
3%
2%
3%
December 31, 2013
US Govt & Agency
Govt-spons. Enter.
MBS -
Agency
Oblig State/Political
Tax-exempt
Other
($170 million) |
 Loan
Portfolio Comparison 10
($1.04 billion)
($1.05 billion)
41%
28%
1%
11%
13%
6%
December 31, 2014
Residential RE
Commercial RE
Construction
SBA/USDA Purchased
Com'l Bus. -
Other
Consumer
43%
27%
1%
13%
11%
5%
December 31, 2013
Residential RE
Commercial RE
Construction
SBA/USDA Purchased
Com'l Bus. -
Other
Consumer |
 Asset Quality
– Improving Trend
Savings Institute has maintained high asset quality with solid reserve coverage
Aggressive with early recognition of nonperforming loans
2010
2011
2012
2013
2014
3/31/15
Nonperforming loans
$ 4,925
$ 10,591
$ 7,654
$ 6,993
$ 5,002
$4,760
Other real estate owned
1,285
976
1,293
2,429
1,271
1,324
Nonperforming assets
6,210
11,567
8,947
9,422
6,273
6,084
NPLs/Loans
0.81%
1.70%
1.11%
0.66%
0.48%
0.45%
NPAs/Assets
0.67%
1.21%
0.94%
0.70%
0.46%
0.45%
Reserves/Loans
0.79%
0.80%
0.93%
0.66%
0.74%
0.77%
Reserves/NPLs
97.44%
46.93%
83.45%
98.90%
155.88%
169.81%
Dollars in thousands.
11 |
 Deposits
Total deposits exclude mortgagors’
and investors’
escrow accounts.
Dollars in
thousands.
Average Rate on
Interest-Bearing
Deposits
1.55%
1.18%
0.97%
0.75%
0.62%
0.63%
12
$66,845
$85,958
$89,836
$139,428
$146,062
$137,639
$304,306
$343,331
$338,076
$494,765
$487,165
$508,387
$289,563
$272,637
$277,236
$350,556
$377,486
$383,621
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2010
2011
2012
2013
2014
3/31/2015
Demand
NOW/Savings/MMDA
Time |
 Operating
Results 2012
2013
2014
03/31/15
(3 Mos.)
Net Interest
Margin
2.88%
2.93%
3.11%
3.07%
Net Income (Loss)
$1,118
($855)
$4,411
$921
EPS (Diluted)
$0.11
($0.08)
$0.36
$0.07
Non-Interest
Income
$8,717
$8,305
$10,166
$2,337
Dollars in thousands, except per share amounts.
13 |
 Expenses/Efficiencies
2012
2013
2014
03/31/15
(3 Mos.)
Non-Interest
Expenses
$43.7 million
(1)
$37.7 million
(3)
$41.5 million
$10.1 million
Efficiency Ratio
88.19%
(2)
96.10%
84.05%
85.55%
FTEs
248
(2)
294
280
280
Assets/FTEs
$3.8 million
$4.6 million
$4.8 million
$4.9 million
(1)
2012 represents total for both SI Financial Group, Inc. and Newport Federal Savings Bank as
independent banks. (2)
SI Financial Group, Inc. only.
(3)
Only four months as a combined institution.
14 |
 Financial
Strength – December 31, 2014
* Represents regulatory capital ratios for Savings Institute.
Ratio *
Minimum
Required
Well
Capitalized
Risk-Based Capital
15.87%
8.00%
10.00%
Tier 1 Risk-Based
Capital
14.86%
4.00%
6.00%
Tier 1 Capital
9.37%
4.00%
5.00%
15 |
 Stock
Repurchase Program Company announced the Board of Directors approved the
repurchase of up to 5%, or 630,000 shares, in March 2015
Repurchased 500,000 shares in the aggregate as of May 8, 2015
Average price of repurchased shares –
$11.99 per share
16 |
 2015
Initiatives Add Commercial Lenders
Right Size Branch Network
Charter Change
EMV Chip Card
17 |
 Appendix
– Non-GAAP Financial Measures |
 Non-GAAP
Financial Measures Tangible Book Value Per Share:
12
Book value per share
$12.03
$12.45
Effect of intangible assets per share
(1.51)
(1.45)
Tangible book value per share
$10.52
$11.00
Tangible Common Equity:
Equity
$154,298
$159,028
Less: Intangible assets
(19,402)
(18,547)
Tangible equity
$134,896
$140,481
Dollars in thousands, except per share amounts.
19
3/31/14
3/31/15 |