COMMUNITY BANK LANDSCAPE North Carolina 1St Quarter 2019
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COMMUNITY BANK LANDSCAPE North Carolina 1st Quarter 2019 RESEARCH | INVESTMENT BANKING | EQUITY SALES & TRADING | FIXED INCOME | CORPORATE & PRIVATE CLIENT SERVICES TABLE OF CONTENTS SECTION DESCRIPTION I. NORTH CAROLINA BANK REGULATORY DATA II. FIG PARTNERS UPDATE 2 I. NORTH CAROLINA BANK REGULATORY DATA OVERVIEW – NORTH CAROLINA BANK REGULATORY DATA Piedmont Mountains Coastal Plain METHODOLOGY ▪ 3 regions separated by geographic KEY STATE OBSERVATIONS relevance ▪ Median loan growth of 4.69% ▪ Data as of most recent available ▪ Median NIM of 3.77% quarter as of March 31, 2019 ▪ Regulatory call report data shown for all banks NOTES FOR ALL REGIONS: Note: Texas Ratio = (NPAs + Loans 90+ PD)/ (TCE+LLR) NPAs = Nonaccrual Loans + (Loans 90+ PD ) + Restructured Loans + OREO Nonaccrual loans, Loans 90+ PD and OREO are adjusted to exclude the FDIC guaranteed portion of these assets Does not include Bank of America, NA Source: S&P Global Market Intelligence, Most Recent Available Quarter 4 NORTH CAROLINA BANKS – MOUNTAINS REGION Company Information Balance Sheet Highlights Capital Adequacy Asset Quality Financial Performance Total Total MRQ Total MRQ Lns / Leverage RBC NPA/ NPA ex Restr/ Texas LLR/ NCOs/ MRQ MRQ MRQ MRQ Assets Lns Growth Deposits Growth Dep. Ratio Ratio Assets Assets Ratio Loans Loans Net Inc. ROAA N.I.M. Efficiency Name City ($M) ($M) (%) ($M) (%) (%) (%) (%) (%) (%) (%) (%) (%) ($000) (%) (%) (%) Black Mountain SB SSB Black Mountain $40 $29 3.3 % $34 (6.4) % 85.6 % 12.74 % 31.62 % 0.00 % 0.00 % 0.0 % 0.14 % 0.00 % $41 0.41 % 3.00 % 82.9 % Entegra Bank Franklin 1,668 1,089 2.0 1,251 8.2 87.1 9.67 14.35 0.80 0.43 7.8 1.11 0.02 4,046 0.98 3.17 68.3 HomeTrust Bank Asheville 3,455 2,674 4.7 2,332 10.2 114.7 10.25 12.22 1.09 0.40 10.0 0.91 0.38 3,373 0.39 3.34 69.7 Jackson SB SSB Sylva 32 26 (1.5) 26 (1.3) 101.7 20.97 40.77 1.20 1.03 5.7 0.22 0.00 81 1.00 3.69 69.2 Lifestore Bank (MHC) West Jefferson 293 185 3.2 225 7.7 82.2 10.99 18.61 1.13 1.13 9.6 1.31 0.00 713 0.98 3.46 72.8 Morganton SB S.S.B. Morganton 91 61 24.0 54 7.2 113.2 27.63 33.73 1.40 1.40 5.1 1.92 0.00 214 0.95 3.97 80.6 Nantahala B&TC Franklin 154 108 7.7 131 0.8 82.8 5.72 8.57 11.99 11.97 254.6 1.14 (0.07) 74 0.20 3.71 93.5 Average 819 596 6.2 579 3.8 95.3 14.00 22.84 2.52 2.34 41.83 0.96 0.05 1,220 0.70 3.48 76.7 Median 154 108 3.3 131 7.2 87.1 10.99 18.61 1.13 1.03 7.85 1.11 0.00 214 0.95 3.46 72.8 Source: S&P Global Market Intelligence, Most Recent Available Quarter 5 NORTH CAROLINA BANKS – PIEDMONT REGION Company Information Balance Sheet Highlights Capital Adequacy Asset Quality Financial Performance Total Total MRQ Total MRQ Lns / Leverage RBC NPA/ NPA ex Restr/ Texas LLR/ NCOs/ MRQ MRQ MRQ MRQ Assets Lns Growth Deposits Growth Dep. Ratio Ratio Assets Assets Ratio Loans Loans Net Inc. ROAA N.I.M. Efficiency Name City ($M) ($M) (%) ($M) (%) (%) (%) (%) (%) (%) (%) (%) (%) ($000) (%) (%) (%) Alliance B&TC Gastonia $139 $101 11.6 % $126 (14.4) % 79.6 % 8.73 % 12.50 % 2.09 % 1.29 % 21.0 % 1.43 % (0.03) % $291 0.84 % 4.80 % 70.1 % Aquesta Bank Cornelius 475 379 12.4 363 53.3 104.5 10.80 14.35 0.28 0.26 2.6 0.97 (0.02) 1,118 0.95 3.51 66.4 Bank of Oak Ridge Oak Ridge 468 378 6.4 398 15.8 94.9 9.82 12.97 0.56 0.56 5.2 0.87 0.02 1,155 0.99 3.79 70.7 Belmont Savings Bank SSB Belmont 92 68 0.5 73 (0.2) 94.1 20.57 40.67 0.58 0.29 2.8 0.39 0.00 58 0.25 3.10 88.6 blueharbor bank Mooresville 226 188 19.1 189 25.3 99.5 13.36 15.92 0.85 0.85 6.2 1.00 0.00 596 1.08 3.89 62.9 Branch Banking & Trust Co. Winston-Salem 219,793 144,404 (0.4) 168,312 (0.5) 85.8 9.49 13.24 0.51 0.26 5.7 0.89 0.20 851,000 1.55 3.35 56.9 Carolina Trust Bank Lincolnton 621 474 82.3 527 122.5 89.9 10.64 13.25 0.71 0.71 6.4 0.86 (0.01) 689 0.45 4.23 84.5 Farmers & Merchants Bank Salisbury 632 441 (5.6) 556 15.8 79.4 11.49 17.32 1.87 1.17 15.2 1.72 0.02 2,633 1.72 4.55 58.3 Fidelity Bank Fuquay-Varina 2,001 1,154 5.1 1,777 13.8 64.9 10.25 15.65 0.70 0.14 6.7 1.47 (0.04) 6,569 1.36 3.82 60.3 First Bank Southern Pines 6,051 4,308 5.0 4,804 11.9 89.7 10.63 14.14 0.62 0.43 6.2 0.49 0.04 23,160 1.56 4.05 54.5 First FSB of Lincolnton Lincolnton 396 335 0.4 308 15.3 109.0 15.92 26.83 1.01 0.51 6.3 0.61 (0.06) 1,125 1.17 3.70 60.7 First S&L Association Mebane 55 34 5.7 42 19.6 80.5 23.70 53.36 0.37 0.37 1.6 0.56 0.00 49 0.37 2.89 86.6 First-Citizens B&TC Raleigh 35,829 25,518 (0.8) 31,260 7.2 81.6 9.56 13.32 0.72 0.45 7.6 0.90 0.10 105,017 1.18 3.85 66.0 Mechanics & Farmers Bank Durham 268 176 2.6 242 15.7 72.5 7.73 12.05 1.79 0.46 21.5 1.16 0.01 205 0.30 3.48 92.3 North State Bank Raleigh 941 760 2.3 856 21.5 88.8 8.54 11.46 0.21 0.18 2.3 0.59 (0.01) 2,976 1.28 4.22 71.9 Peoples Bank Newton 1,110 824 9.6 915 16.4 90.1 12.52 15.54 0.25 0.25 1.9 0.80 0.03 3,940 1.44 4.60 69.4 Piedmont FSB Winston-Salem 896 516 (3.6) 662 (3.1) 78.0 25.82 69.52 0.04 0.04 0.2 0.19 0.00 539 0.24 2.40 85.9 Roxboro Savings Bank SSB Roxboro 230 115 6.0 174 12.0 65.9 20.93 45.68 1.57 0.73 7.8 0.99 0.00 644 1.14 3.20 59.0 Surrey Bank & Trust Mount Airy 312 236 6.6 262 3.0 90.2 14.54 20.43 0.98 0.44 6.1 1.83 (0.11) 967 1.26 4.56 60.8 Taylorsville Savings Bank SSB Taylorsville 105 85 (1.8) 93 16.3 91.3 10.93 18.12 2.59 0.74 23.6 1.58 0.00 190 0.73 4.24 76.9 Uwharrie Bank Albemarle 653 372 (3.5) 589 14.1 63.1 8.64 13.65 0.74 0.27 10.5 0.60 0.03 1,004 0.63 3.57 83.5 Wake Forest FS&LA (MHC) Wake Forest 104 68 20.0 79 (2.1) 85.7 22.45 38.63 0.00 0.00 0.0 2.11 0.00 378 1.45 3.58 46.6 Average 12,336 8,224 8.2 9,664 17.2 85.4 13.50 23.12 0.87 0.47 7.62 1.00 0.01 45,650 1.00 3.79 69.7 Median 472 375 5.1 381 14.7 87.3 10.87 15.60 0.70 0.43 6.18 0.90 0.00 986 1.11 3.81 67.9 Source: S&P Global Market Intelligence, Most Recent Available Quarter 6 NORTH CAROLINA BANKS – COASTAL PLAIN REGION Company Information Balance Sheet Highlights Capital Adequacy Asset Quality Financial Performance Total Total MRQ Total MRQ Lns / Leverage RBC NPA/ NPA ex Restr/ Texas LLR/ NCOs/ MRQ MRQ MRQ MRQ Assets Lns Growth Deposits Growth Dep. Ratio Ratio Assets Assets Ratio Loans Loans Net Inc. ROAA N.I.M. Efficiency Name City ($M) ($M) (%) ($M) (%) (%) (%) (%) (%) (%) (%) (%) (%) ($000) (%) (%) (%) Coastal Bank & Trust Jacksonville $117 $72 1.6 % $99 31.0 % 72.5 % 15.82 % 24.47 % 0.05 % 0.05 % 0.3 % 1.47 % 0.00 % $181 0.65 % 3.95 % 80.0 % First Capital Bank Laurinburg 100 72 31.7 78 53.9 93.0 21.58 28.31 1.40 0.78 6.7 1.42 0.21 (172) (0.75) 4.56 107.9 First Carolina Bank Rocky Mount 521 296 27.6 460 (0.7) 64.3 12.00 17.58 0.00 0.00 0.0 0.57 (0.01) 1,054 0.85 2.92 56.4 First Federal Bank Dunn 186 126 10.7 165 3.0 76.6 11.33 20.91 1.28 1.07 10.8 1.46 0.00 122 0.27 3.67 90.7 Hertford Savings Bank SSB Hertford 13 9 10.2 11 5.5 85.9 16.52 31.08 2.03 2.03 11.9 0.73 0.00 14 0.42 3.54 87.8 KS Bank Inc.