Bank of Florida — IPO Roadshow (November 2009)
47 slides from Bank of Florida's IPO roadshow presentation, Nov 6, 2009
Slide 1: Investor Meetings November 2009
Filed Pursuant to Rule 433 Issuer Free Writing Prospectus dated November 6, 2009 Relating to Preliminary Prospectus dated November 5, 2009 Registration Statement No. 333-161252 Investor Meetings November 2009 NASDAQ: BOFL **** The issuer has filed a registration statement (including a prospectus) wi
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made herein (or incorporated herein by reference) are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking st
Slide 3: Offering Summary
Offering Summary • Issuer: Bank of Florida Corporation (NASDAQ: “BOFL”) • Offering Size: $75+ Million • Shares Offered: TBD • Over-Allotment Option: 15% / TBD shares • Post-Offering Shares: TBD • Current Price per Share: $1.35 (11/5/09 close) • Lead Manager: Raymond James • Co-Managers: Sandler O’Ne
Slide 4: Investment Highlights
Investment Highlights • Deep and seasoned management team with experience in adverse market conditions • Aggressive identification of non-performing assets – Two independent loan reviews performed within the last 15 months – SCAP stress test performed in September 2009 • Over 55% of Florida’s $393 b
Slide 5: Use of Proceeds
Use of Proceeds • Proceeds from this offering are intended to be used for the following: – Further enhancing capital ratios in anticipation of potential impairments to comply with the individual bank level board resolutions. It is estimated that $71 million will be required as of December 31, 2009 –
Slide 6: Corporate Profile
Corporate Profile • Founded in Naples, Florida in August 1999 • Strong senior management team with an average of approximately 30 years of banking experience th • 5 largest publicly-traded bank holding company headquartered in Florida based on (1) total assets • 13 financial centers in 7 premier Flo
Slide 7: Management Team
Management Team MICHAEL McMULLAN TRACY KEEGAN JOHN JAMES Chief Executive Officer Chief Financial Officer Chief Administrative Officer • CEO since inception • 26 years financial industry experience • Founding Director • 35 years banking experience (17 • Prior experience: The Bankers Bank • Head of Sp
Slide 8: Banking Franchise
Banking Franchise BANK of FLORIDA corr. oo
Slide 9: Banking Franchise
Banking Franchise • Primary Target Markets – Treasury Management – Commercial and Industrial – Health Care – Wealth Management – BOFL CEO Network • Talent Enhancement Initiative – Targeted Lift-Outs – Focused Talent Upgrades – Operational Efficiencies • Core Deposit Growth Initiatives – Client Relat
Slide 10: A Diverse Deposit Mix
A Diverse Deposit Mix Core Deposits* Total Deposits $1.2 Billion Are 65% of Total Deposits Retail CDs < Wholesale $100k CDARs 16% < 1% Retail CDARs Non-Interest 6% Deposit Balance Bearing Composition ($ Millions) 8% Brokered Deposits MM, NOW, Savings $ 417.0 13% Retail CDs > $100K 269.0 Retail CDs <
Slide 11: Loan Portfolio
Loan Portfolio Loan Portfolio Commercial & is 75% Industrial Commercial- 9% Oriented Residential Loan Loan Balance Commercial Mortgage Type ($ Millions) Real Estate 17% 54% CRE $ 674.1 Residential Mortgage 216.0 Land 153.7 Consumer C&I 114.2 1% Construction 84.5 Consumer 11.1 Adj. for Fees (0.3) Lan
Slide 12: Residential Loan by Type
The Majority Residential Loan by Type of the Residential Residential Development Loan Portfolio Residential 12% is Owner Construction 17% Home Equity Occupied 14% Residential Loan Balance Loan Category ($ Millions) Mortgage $ 172.9 Construction 51.7 HELOC 43.1 Development 37.6 Total $ 305.3 Resident
Slide 13: CRE Loans by Type
CRE Loans by Type CRE Loans are Secured by Restaurant Hotel a Diverse Other 1% 9% Multi-Family Group of 5% 16% Properties Retail 21% Avg. Loan Size: Income Producing: $1.6 million Office Owner-Occupied: 31% $0.9 million Industrial & Warehouse 17% • $674 million Total CRE Loan Portfolio • 33% of Tota
Slide 14: Construction Loans by Type
Construction Loans by Type Construction Loans Secured Single Family by a Diverse Speculative 20% Group of Projects Condo 22% Project Loan Balance Office Type ($ Millions) 21% Condo $ 17.8 Office 17.2 Single Family Spec. 17.0 Retail Single Family Owner 9.8 3% 8.0 Misc. Construction Misc. Condo Conver
Slide 15: Credit Quality
Credit Quality BANK oF FLORIDA corr.
Slide 16: Proactively Addressing Credit Environment
Proactively Addressing Credit Environment • Structure – Independent underwriting and multi-stage approval process – Centralized special assets group with experienced leadership, personnel and BOD oversight – Highly skilled OREO disposition team – Director of Banking and Risk Management oversight on
Slide 17: Credit Quality Statistics
Credit Quality Statistics (1) • There have been 26 loans worked out prior to foreclosure – 11 of these loans had no loss to principal • There are currently 54 loans, $74 million or 50% of NPLs in the foreclosure process (1) • There have been 20 properties sold through foreclosure/OREO – Average prin
Slide 18: Credit Quality Migration
Credit Quality Migration 9/30/09 6/30/09 3/31/09 12/31/08 9/30/08 Net Charge-offs $12.7 $9.5 $11.8 $0.8 $5.2 NCOs / Avg. Loans 4.52% 3.29% 3.92% 0.26% 1.72% Loan Loss Reserves $38.0 $24.8 $24.5 $29.5 $14.3 LLR / Gross Loans 3.03% 1.95% 1.90% 2.32% 1.14% LLR / NPLs 25% 18% 21% 41% 49% Non-Performing
Slide 19: NPAs by Loan Category
NPAs by Loan Category Third Quarter 2009 Second Quarter 2009 NPLs OREO Total NPAs NPLs OREO Total NPAs Residential Mortgage $25.8 $1.5 $27.3 $31.8 $0.7 $32.5 HELOC 0.8 0.2 1.0 0.9 - 0.9 Land and Construction 31.1 0.9 32.0 29.5 1.8 31.3 – Residential Land and Construction 23.7 2.6 26.3 36.3 2.8 39.1
Slide 20: Net Charge-Offs by Loan Category
Net Charge-Offs by Loan Category Third Quarter 2009 Second Quarter 2009 NCOs NCOs / Avg. Loans NCOs NCOs / Avg. Loans Residential Mortgage $1,321 0.47% $743 0.26% HELOC 354 0.13% 149 0.05% Land and Construction 2,323 0.83% 3,261 1.13% – Residential Land and Construction 1,977 0.70% 4,206 1.46% – Com
Slide 21: High Risk CRE Reduction Plan
High Risk CRE Reduction Plan Southeast Southwest Tampa Bay BOFL As % of Capital As % of Capital As % of Capital As % of Capital Loan Category 12/31/06 9/30/09 12/31/06 9/30/09 12/31/06 9/30/09 12/31/06 9/30/09 Land 228.0% 110.7% 173.4% 152.0% 190.7% 188.7% 133.8% 135.3% (1) Commercial Construction 1
Slide 22: Financials
Financials BANK of FLORIDA corr. 22
Slide 23: Potential Loan Loss Estimates
Potential Loan Loss Estimates Balance as of Management Loan Loss Projections SCAP June 30, 2009 Base Moderate High Adverse Scenario Loan Type ($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%) First Lien Mortgages $ 159,400 12.6% $ 8,386 5.3% $ 9,497 6.0% $ 10,750 6.7% $ 10,441 6.6% Closed-End J
Slide 24: Pro Forma Capital Ratios
Pro Forma Capital Ratios Management Loan Loss Projections SCAP Estimated Capital Ratios Base Moderate High Adverse Estimated Potential Credit Losses $ 48,630 $ 66,833 $ 86,955 $ 117,006 Well-Capitalized Regulatory Minimum Minimum 12/31/2009 Tier 1 Leverage Ratio 5.0% 8.0% 9.19% 8.47% 7.67% 6.45% Tie
Slide 25: Core Earnings
Core Earnings 9/30/09 6/30/09 3/31/09 12/31/08 9/30/08 (1) Net Interest Income $10.8 $10.6 $10.6 $10.4 $11.2 (2) Fee Income 1.2 1.1 1.1 1.1 1.2 Gross Income $12.0 $11.7 $11.7 $11.5 12.4 (3) Operating Expense 10.0 10.7 10.5 10.1 10.8 Core Earnings (Pre-Tax / Credit) $2.0 $1.0 $1.2 $1.4 $1.6 Net Inter
Slide 26: Securities Portfolio
Securities Portfolio 9/30/09 12/31/08 12/31/07 12/31/06 12/31/05 12/31/04 Agency Mortgage-Backed $101,659 $114,045 $25,630 $27,697 $4,695 $3,919 Securities U.S. Treasury and 623 615 9,064 13,926 13,851 21,975 Government Agency Other 2,668 3,316 3,314 101 76 51 Total Securities $104,950 $117,976 $38,
Slide 27: Liquidity
Liquidity Capacity 9/30/09 6/30/09 3/31/09 12/31/08 Loan / Deposits - 102% 109% 111% 109% Investment Securities - $105 $105 $113 $118 Securities / Assets 7% 7% 7% 8% Wholesale Funding: (1) Brokered Deposits $264 $179 $220 $227 $254 FHLB Advances 27 118 118 118 152 Repurchase Agreements 27 22 21 20 2
Slide 28: Stress Test Results
Stress Test Results BANK of FLORIDA corr. 28
Slide 29: SCAP Stress Test Methodology
SCAP Stress Test Methodology • Promontory Financial Group, LLC (Promontory) was hired to conduct a stress test analysis of BOFL’s balance sheet using methodology based on the Federal Regulators’ Supervisory Capital Assessment Program (SCAP) and conditions in the State of Florida • The SCAP employs a
Slide 30: 2-Year Charge-Off Assumptions
2-Year Charge-Off Assumptions High Stress Charge-Off Percentages 2-Year PF (%) First Lien Mortgages 6.55% Closed-End Junior Lien Mortgages 20.00% Home Equity Lines of Credit ("HELOCs") 7.20% Commercial & Industrial Loans 5.30% Construction & Land Development Loans 11.25% Multi-Family Loans 5.12% Com
Slide 31: Stress Test Analysis
Stress Test Analysis Impact of Credit Losses on Capital (%) $ ALLL Beginning Balance 1.95% $ 24,779 Less: Stress Losses 10.30% 130,661 Add: Provision for Loan Losses 10.35% 131,258 ALLL Ending Balance 2.00% $ 25,376 Regulatory Capital Calculation Current Pro Forma GAAP Capital $ 180,803 $ 180,803 Im
Slide 32: Question & Answer
Question & Answer BANK of FLORIDA corr. 32
Slide 33: Appendix
BANK of FLORIDA corr. 33
Slide 34: Bank of Florida Trust Company
Bank of Florida Trust Company • Founded in August 2000 (1) • Market value of assets under advice of $734 million • Highly regarded and experienced management team (1) • LTM fees generated by Trust Company of $2.5 million • Trust Company CEO Scott Kellett was named the 2009 “top financial planner” by
Slide 35: Florida Outlook
Florida Outlook th • Florida is the 4 most populous state in the nation and is the largest in the Southeast, with more than 19 million residents (www.eflorida.com) th • Florida is one of the top pro-business states in the nation, ranking 9 (Pollina Corporate Real Estate Inc., June 2009) • Miami – Ft
Slide 36: Over Half of Florida Deposits in Our Markets
Over Half of Florida Deposits in Our Markets Bank of Florida County State Counties Served Deposits Mktshare Broward $37 billion 9.4% Collier $12 billion 3.0% Hillsborough $21 billion 5.4% Lee $12 billion 3.1% Miami-Dade $77 billion 19.6% Palm Beach $39 billion 9.9% Pinellas $20 billion 5.1% Total Ma
Slide 37: Favorable Market Demographics
Favorable Market Demographics Projected Projected Median Household Household Total Population Population Household Income Income Population Change Change Income Change Change 2009 2000-2009 2009-2014 2009 2000-2009 2009-2014 County (Actual) (%) (%) ($) (%) (%) Collier 331,285 31.79 10.67 63,299 30.7
Slide 38: Loan Portfolio by Geography
Loan Portfolio by Geography Loan Portfolio is Geographically Diverse Across our Markets Southwest Southeast 34% Loan Balance 36% Market ($ Millions) Southeast Broward $ 231.4 Miami-Dade 149.7 Palm Beach 75.5 $ 456.6 Southwest Collier $ 247.1 Lee 180.5 $ 427.6 Tampa Bay Other Hillsborough $ 130.0 Pin
Slide 39: Residential Loans by Geography
Residential Loans by Geography Residential Loans Includes Residential Development & Construction, Residential Mortgage, and HELOC Geographically Disbursed Across our Markets Loan Balance Southwest Market ($ Millions) Southeast 48% 32% Southeast Miami-Dade $ 53.7 Broward 36.9 Palm Beach 6.3 $ 96.9 So
Slide 40: CRE Loans by Geography
CRE Loans by Geography CRE Loans are Geographically Diverse Across our Markets Southeast 38% Southwest Loan Balance Market ($ Millions) 32% Southeast Broward $ 139.8 Miami-Dade 62.0 Palm Beach 51.7 $ 253.5 Southwest Collier $ 109.9 Lee 108.1 $ 218.0 Tampa Bay Hillsborough $ 54.1 Pinellas 36.6 Tampa
Slide 41: Construction Loans by Geography
Construction Loans by Geography Construction Loans are Geographically Diverse Across our Markets Southwest 25% Loan Balance Market ($ Millions) Southeast Southeast 50% Miami-Dade $ 20.5 Broward 19.2 Palm Beach 2.3 $ 42.0 Other Southwest 2% Collier $ 15.6 Lee 5.1 $ 20.7 Tampa Bay Hillsborough $ 15.5
Slide 42: Residential NPLs by Type
Residential NPLs by Type Third Quarter 2009 Second Quarter 2009 $ % $ % Residential Mortgage Investor $17.6 30.5% $18.2 31.5% Owner 8.2 14.2% 8.4 14.5% Residential Construction Condo 11.3 19.6% 12.1 20.9% Condo Conversion 4.4 7.6% 4.4 7.6% Single Family – Speculative 8.8 15.3% 6.7 11.6% Single Famil
Slide 43: CRE NPLs by Type
CRE NPLs by Type Third Quarter 2009 Second Quarter 2009 $ % $ % Office $22.1 33.1% $18.0 48.3% Retail 16.8 25.2% 7.2 19.3% Hotel 13.4 20.1% 9.6 25.7% Industrial/Warehouse 5.9 8.8% - 0.0% Multi-Family 2.8 4.2% - 0.0% Restaurant 0.5 0.7% - 0.0% Other 5.2 7.9% 2.5 6.7% Total $66.7 100.0% $37.3 100.0% $
Slide 44: Construction NPLs by Type
Construction NPLs by Type Third Quarter 2009 Second Quarter 2009 $ % $ % Office - 0.0% - 0.0% Single Family – Owner Occupied - 0.0% - 0.0% Single Family – Speculative $8.8 32.4% $6.7 26.2% Condos 11.2 41.2% 12.1 47.2% Condo Conversion 4.4 16.2% 4.4 17.2% Hotels - 0.0% - 0.0% Multi-Family - 0.0% - 0.
Slide 45: NPAs by Market
NPAs by Market Third Quarter 2009 Second Quarter 2009 NPLs OREO Total NPAs NPLs OREO Total NPAs Collier $56.3 $0.4 $56.7 $39.9 $0.8 $40.7 Lee 23.8 5.7 29.5 29.7 3.4 33.1 Broward 11.3 - 11.3 14.1 - 14.1 Miami-Dade 17.0 0.6 17.6 15.5 0.2 15.7 Palm Beach 8.8 - 8.8 7.7 - 7.7 Hillsborough 15.2 - 15.2 15.
Slide 46: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Versus 9/30/09 9/30/09 6/30/09 3/31/09 12/31/08 6/30/09 12/31/08 Core Earnings (Pre-Tax / Credit) $2.0 $1.0 $1.2 $1.4 $1.0 $0.6 (1) Carrying Cost of Nonaccrual Loans (1.3) (1.1) (1.0) (0.6) (0.2) (0.7) Provision for Loan Loss (25.7) (9.8) (6.7) (16.0) (15.9) (9.7) Pre-
Slide 47: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables Tangible Common Equity / Tangible Assets 9/30/2009 Total Shareholder's Equity $ 103.9 Less: Preferred Stock 4.3 Less: Intangible Assets 2.6 Tangible Common Equity(1) $ 97.0 Add: Net Additional Capital Added to Banks 71.0 Pro Forma Tangible Common Equity $ 168.0 Total A