April Investor Presentation

Transcription

1 April 2014 Investor Presentation

2 Confidentiality This presentation is made available to you by Noah Bank on a confidential basis. It may not be reproduced, in whole or in part, nor may any its contents be disclosed or provided to any other person, without the prior written consent of Noah Bank. As a condition to this presentation being furnished to you, you agree that you will keep the information included in this presentation confidential and not disclose such information to any third party without Noah Bank s prior written consent, except for (i) information which was or becomes generally available to the public other than as a result of a disclosure by you or (ii)information that was previously available to you on a non-confidential basis. Safe Harbor Regarding Forward Looking Statements This presentation contains forward-looking information about Noah Bank that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as believe, expect, may, will, should, project, could, plan, goal, potential, pro forma, seek, intend, or anticipate or the negative thereof or comparable terminology, and include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of announced transactions, and statements about the future performance, operations, products and services of Noah Bank and its subsidiaries. Noah Bank cautions readers not to place undue reliance on these statements. Noah Bank s business and operations are subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: difficult conditions in the capital markets and the economy generally, regulatory requirements or other actions mandated by Noah Bank s regulators, recent and ongoing changes to the state and federal regulatory schemes under which Noah Bank and other financial services companies operate (including the Dodd-Frank Act and regulations adopted or to be adopted to implement that Act), delayed improvement in the credit quality of loans, the effect of credit risk exposure, the ability to strategically manage our capital position and to raise capital, allowance for loan losses may prove inadequate, variations in interest rates, the geographic concentration of Noah Bank s operations, declines in the value of Noah Bank s assets and the effect of any resulting impairment charges, competition for personnel and from other financial institutions, interruptions or breaches of Noah Bank s security systems, the development and maintenance of Noah Bank s information technology, potential dilution of Noah Bank s shareholders, the ability of Noah Bank and its subsidiaries to pay dividends, severe weather and natural disasters, and the nature and frequency of litigation and other similar proceedings to which Noah Bank may be a party. These risks and others are described in greater detail in Noah Bank s Private Placement Memorandum. Noah Bank makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forwardlooking statement is made.

3 NOAH BANK WAS LAUNCHED AS Royal Asian Bank, A DIVISION OF Royal Bank America HISTORY Royal Asian Bank was originally launched in 2004 as a division of Royal Bank America, a wholly-owned subsidiary of Royal Bancshares of Pennsylvania, Inc. (NASDAQ: RBPAA). Royal Asian Bank became a separately chartered bank and was incorporated in the Commonwealth of Pennsylvania on October 4, 2005, chartered by the Commonwealth of Pennsylvania Department of Banking, and commenced operation as a Pennsylvania state-chartered bank on July 17, On December 30, 2010, Edward E. Shin, CEO of Noah Bank, together with a group of Korean-American investors, completed the acquisition of Royal Asian Bank from Royal Bancshares of Pennsylvania. The bank was re-named Noah Bank on June 1, 2011.

4 NOAH BANK HAS SHOWN CONSISTENT GROWTH AND EXPANSION, AFFIRMING OUR STRATEGIES HIGHLIGHTS Noah Bank is committed to serving the small business market and is ranked as the 6 th most active SBA 7(a) 1 lender in the United States. Noah Bank has expanded to include 5 full service branches and 2loan production offices, all in the Northeast US region. We recently opened our 2 nd loan production office in the Washington, D.C. Metro area, and are in the process of opening a 3 rd in the Los Angeles area. 2 Noah Bank has shown consistent growth across all metrics, most notably in Net Income and Deposits. Noah Bank s pre-tax income grew 125% in In 2013, Noah Bank won a Gold Medal Award from the SBA NY District Office, and a District Director s Award from the NJ District Office as the #1 Small Loan Advantage Lender in the state. Most Active SBA 7(a) Lenders 1. Wells Fargo Bank 2. Live Oak Banking Company 3. US Bank 4. Huntington National Bank 5. JPMorgan Chase 6. Noah Bank 7. Ridgestone Bank 8. Newtek Small Business Finance 9. Celtic Bank Corporation As of the end of the SBA s 2 nd Fiscal Quarter, March 31, As of 3/25/ /20/2013

5 NOAH BANK HAS BRANCHES/LOAN PRODUCTION OFFICES IN 4 STATES SERVING A PRIMARY TARGET MARKET OF 6 STATES AND WASHINGTON, D.C. Noah Bank has 5 Branches in: Fort Lee, NJ Palisades Park, NJ New York, NY Flushing, NY and Elkins Park, PA and 2 Loan Production Offices in: Edison, NJ and Annandale, VA.

6 NOAH BANK BALANCES PORTFOLIO LENDING WITH THE GENERATION AND SALE OF SBA 7(a) LOANS Noah Bank is a Community Bank Focused on Small- Business Lending. Our Loan offering of choice is the SBA 7(a) 75% of SBA 7(a) Loans above $150k are guaranteed by the US government. Allows opportunity to sell guaranteed portion in Secondary SBA Market. The sale of the guaranteed portion provides up-front and deferred fee income, and liquidity to provide more loans. Approximately 25% of gains on sales are deferred under ASC 860. Servicing income of 1% of the loan amount provides future annuity. We place non-sba loans and the unguaranteed portions of SBA loans on our balance sheet to provide on-going interest income. The US Government continues to support various SBA Loan products through fee waivers and program extensions in an effort to bolster US economic recovery. Deposit Accounts from borrowers are required for all loans from Noah Bank and is non-negotiable. No consumer lending.

7 NOAH BANK TARGETS ONE OF THE FASTEST GROWING AND SUCCESSFUL DEMOGRAPHICS IN THE US Noah Bank targets the Asian community, the largest growing immigrant population in the US 1, with a focus on small business owners from South Korea and India (South Asia). The $109 billion in business income generated by immigrant-owned firms across the US in 2010 was a 60 percent increase from 2000, $9.1 billion of which came from Indian immigrants and $7.1 billionfrom Korean immigrants. 2 Minority-Owned firms outpace the growth rate of Non-Minority firms but are less likely to receive bank loans and equity investments. 3 Noah Bank strives to target these strong but underserved businesses. 1. US Census Bureau A Partnership for A New American Economy 8/ SBA Office of Advocacy 5/2012

8 NOAH BANK HAS SHOWN CONSISTENT GROWTH IN LOANS OUTSTANDING $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ * Audited

9 NOAH BANK HAS A BALANCED MIX OF COMMERCIAL AND SBA LOANS SBA Loans Non-SBA Commercial Loans Consumer Loans *Data as of 3/31/2014

10 NOAH BANK HAS CONSISTENTLY GROWN DEPOSITS $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ * Audited

11 NOAH BANK HAS AN ATTRACTIVE DEPOSIT MIX Demand (Checking) NOW (Checking with Interest) Money Market Savings Certificates of Deposit Brokered CDs *Data as of 3/31/2014

12 NOAH BANK MAINTAINS A STRONG LEVEL OF ALLOWANCE OF LOAN LOSSES $6,000, % $5,000, % $4,000, % $3,000,000 $2,000, % 1.00% Allowances for Loan Loss Percentage of Loans $1,000, % $ % * Audited

13 NOAH BANK HAS REPORTED STRONG PRE-TAX EARNINGS GROWTH $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ * Audited

14 NOAH BANK S STOCK IS PRIVATELY HELD AND IS NOT PUBLICY LISTED Noah Bank s Capital has shown consistent growth due to stock purchases by new investors and retained earnings. $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ * Audited

15 NOAH BANK BOASTS AN EXPERIENCED MANAGEMENT TEAM Chairman of the Board -Young Man Kim Y.M. Kim is the former Chairman and CEO of SK Global America Inc. and Vice Chairman of SK USA and SK America. Before joining SK, Mr. Kim was with the Bank of Korea and the Korea Exchange Bank for over a decade. Mr. Kim also served as the Chairman of the Korean Chamber of Commerce and Industry in the USA (KOCHAM). Young Man Kim is a graduate of Seoul National University. Chief Executive Officer Edward E. Shin Edward Shin has been the President and Chief Executive Officer of Noah Bank since the Bank s original formation. Prior to that, he served as a Director and President of Pan Asia Bank N.A., before Pan Asia s parent holding company sold Pan Asia Bank N.A. to Woori America Bank, one of Noah Bank s primary competitors. Mr. Shin has been in the banking business for more than a decade. Mr. Shin is a graduate of UCLA. President Michael R. Reinhard Mike Reinhard has more than 30 years of banking experience, most recently as a Group Executive Vice President and CFO for National Penn Bancshares, Inc. and National Penn Bank. Mr. Reinhard was originally Noah Bank s CFO and was named President in September Mr. Reinhard has an MBA from St. Joseph s University. Chief Financial Officer Frank Gleeson Frank Gleeson has served in the financial services industry for over thirty years, having served as CFO for several financial institutions including BankAsiana, Mariners Bank, Ocean City Home Bank and Anchor Savings. Mr. Gleeson also served as a Bank Examiner with the New Jersey Department of Banking, has been an Adjunct Professor of Finance for the Richard Stockton College of New Jersey, and has an MBA from Monmouth University.

16 NOAH BANK BOASTS AN EXPERIENCED MANAGEMENT TEAM Chief Administrative Officer Yeon Sun Lim YeonSun Lim is a graduate of the InhaGraduate School in Incheon, South Korea, and manages the bank s branches, HR, IT, facilities, as well as the SBA Small Loan Advantage Program. President of Indo-American Unit Sanjay Patel Sanjay Patel has been a prominent loan source for the Indian business community for more than 17 years, having closed more than $600 Million of Small business loans. Prior to joining Noah Bank, he was SVP/Head of the SBA loan department with Unity Bank. Before joining Unity Bank, he was a Partner in Creative Capital Group, an Edison based business loan consulting group. Mr. Patel has an MBA from Florida A&M University. President of Washington, D.C. Area Unit JunWoo Kim JunWooKim has over 15 years of banking experience, having spent many years as a credit analyst and loan officer at Korea Exchange Bank and ChohungBank of New York, as Credit Department Administration Unit Manager at Millennium Bank and as a relationship manager at Woori America Bank, one of our primary competitors. Mr. Kim is a graduate of the New York Institute of Technology. Chief Accounting Officer & Controller Janice McCracken Janice McCracken brings over 20 years of banking experience to Noah Bank, and was EVP and CFO at National Penn Bank. Ms. McCracken has an MBA in Accounting from DeSales University and has consulted for Habitat for Humanity.

17 NOAH BANK PROVIDES A COMPELLING VALUE PROPOSITION Noah Bank has shown great success in just a few short years and we plan to continue driving forward with our core strategies. Our early investors and customers continue to be rewarded by our growth and profitability. Noah Bank will keep establishing ourselves as a leader in a niche market targeting a growing demographic. Our geographical expansion will provide opportunities to replicate our success with new customers and communities, while evolving our business to address a changing economy. Noah Bank s success with SBA 7(a) Loans has created a strong foundation that provides long-term revenue, builds a trustworthy reputation and establishes sturdy financial groundwork on which to build and expand our presence. As the government continues to promote and support small businesses around the US as part of the overall economic recovery, Noah Bank will continue to seize the opportunities presented by the SBA and their backing of loan products.

18 Appendix Financials

19 BALANCE SHEET Quarter Ended March 31 December Assets (Dollars in thousands, except per share data) Cash and Due from Banks ,994 1,350 2,060 Interest Bearing Deposits in Other Banks 26,472 68,614 15,769 41,389 43,206 Federal Funds Sold and Securities Purchased 1,660-1, Securities available for Sale 2,309 13,882 2,504 19,080 28,178 LHFS, Loans Held For Sale 12,777 1,541 14,180 13,334 8,601 Loans, Net of Unearned Income 256, , , ,772 81,543 ALLL, Allowance for Loan & Lease Losses (5,812) (3,906) (5,314) (3,247) (378) Loans Receivable, Net of Allowance and Unearned Income 251, , , ,525 81,165 Banks Premises and Equipment, Net 2,984 2,374 2,693 2,293 2,171 Other Assets 12,177 9,699 11,184 8,741 3,808 Total Assets 297, , , , ,190 Liabilities Deposits: Non-Interest Bearing 40,933 33,405 38,965 35,262 18,837 Interest Bearing 221, , , , ,559 Total Deposits 262, , , , ,396 All Other Liabilities 5,673 1,620 4,097 1,388 4,438 Total Liabilities 267, , , , ,835 Shareholders' Equity Common Stock 25,303 18,069 22,655 17,320 12,525 Surplus - 1, (2) Retained Earnings 4,297 3,817 1,877 2,392 (445) Accumulated Other Comprehensive Income Total Shareholders' Equity 29,643 22,194 26,407 20,191 12,355 Total Liabilities & Shareholders' Equity 297, , , , ,190 * Audited, 1Q2013 and 2014 Unaudited

20 INCOME STATEMENT Three months ended March 31 December Interest Income (Dollars in thousands, except per share data) Loans, including fees 3,419 2,396 11,206 8,098 4,701 Investment Securities Dividends and other Total Interest Income 3,675 2,786 11,581 8,696 5,036 Interest Expense Deposits ,988 2,329 1,064 Borrowings Total Interest Expense ,009 2,329 1, Net Interest Income 3,139 2,194 9,572 6,367 3,971 Provisions for Loan Losses ,658 3, Net Interest Income after Loan Losses 2,569 1,408 6,914 2,599 3,136 Non-interest Income Service Charges on Deposit Accounts ,911 1, Gain on Sale of Securities Other Non-interest Income 6,619 4,090 13,049 10,105 2,660 Total Non-interest Income 6,763 4,283 15,219 11,293 3,138 Non-interest Expense Salaries and Employee Benefits 2,045 1,145 8,820 6,161 3,047 Net Occupancy ,455 1,699 1,107 Other 2,709 1,734 5,005 3,433 1,994 Total Non-interest Expense 5,299 3,389 16,281 11,293 6,148 Income Before Taxes 4,033 2,301 5,852 2, Taxes and Adjustments 1, ,361 (1,211) 9 Net Income As Reported 2,420 1,425 3,491 3, * Audited, 1Q2013 and 2014 Unaudited

21 Thank you for your consideration.