Gateway Financial Holdings Inc

Gateway Financial — Ryan Beck & Co. presentation, May 12-13, 2003

27 slides from Gateway Financial's conference presentation, May 9, 2003

  1. Slide 1: Presentation to Ryan Beck & Co. May 12 & 13, 2003

    Presentation to Ryan Beck & Co. May 12 & 13, 2003 Financial Holdings, Inc.

  2. Slide 2: Forward-Looking Statements

    This presentation may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business o

  3. Slide 3: Securities Outstanding

    Common stock trades on Nasdaq Small-Cap Market under the symbol "GBTS". Warrants trade on Nasdaq Small-Cap Market under the symbol "GBTS". Immediately following the stock dividend, the warrants entitle the holder of each warrant to purchase 1.155 shares of common stock at $9.61 per share until June

  4. Slide 4: Corporate Highlights

    Corporate Highlights December 1998 January 2000 June 2001 January 2001 October 2001 January 2002 September & November 2002 April 2003 May 2003 Gateway Bank & Trust begins operations after successful de novo IPO. Acquired Dowd & Twiddy Insurance Agency. Completed underwritten offering that raises nea

  5. Slide 5: 2002 and 2003 Significant Milestones

    Exceeded $250 million in total assets, ending the first quarter at over $254 million; Recorded our ninth consecutive quarter of profitable operations in the first quarter of 2003; Effected a stock split in the form of a 10% stock dividend to shareholders; Declared a 5% stock dividend, payable June 1

  6. Slide 6: Corporate Structure

    Gateway Bank & Trust Co. Gateway Financial Holdings, Inc. NASDAQ Small Cap Market: "GBTS" and "GBTSW" Incorporated October, 2001 Gateway Insurance Services, Inc. Gateway Investment Services, Inc. Corporate Structure Financial Holdings, Inc.

  7. Slide 7: Market Area

    Market Area Gateway Bank & Trust Co. Office Locations: Elizabeth City, NC Edenton, NC Kitty Hawk, NC Plymouth, NC Roper, NC Chesapeake, VA (2) Virginia Beach, VA Gateway Insurance Services, Inc. Office Locations: Elizabeth City, NC Edenton, NC Herford, NC Kitty Hawk,NC Plymouth, NC Gateway Investmen

  8. Slide 8: Financial Highlights

    Financial Highlights Financial Holdings, Inc.

  9. Slide 9: Equity

    Dollars in Thousands Equity Equity 1999 9426 2000 13441 2001 22998 2002 23967 3/31/2003 24080 Financial Holdings, Inc. 1999 2000 2001 2002 1Q2003

  10. Slide 10: Loans

    Dollars in Thousands Loans Loans 1999 29111 2000 74893 2001 105805 2002 159797 3/31/2003 170386 Financial Holdings, Inc. 1999 2000 2001 2002 1Q2003

  11. Slide 11: Loan Portfolio Composition

    Commercial Construction RE Commercial RE 1-4 Family Mortgages Consumer Home Equity Lines of Credit 45.8 17.5 20.1 4.7 6.8 5 At March 31, 2003 Loan Portfolio Composition Financial Holdings, Inc.

  12. Slide 12: Loan Portfolio Pricing Sensitivity

    Loan Portfolio Pricing Sensitivity At March 31, 2003 Financial Holdings, Inc.

  13. Slide 13: Deposits

    Dollars in Thousands Deposits Deposits 1999 32181 2000 90292 2001 115717 2002 174663 3/31/2003 195633 Financial Holdings, Inc. 1999 2000 2001 2002 1Q2003

  14. Slide 14: Deposit Composition

    Demand Savings MMA & NOW CDs 11.5 1.3 23.2 63.9 At March 31, 2003 Deposit Composition Financial Holdings, Inc.

  15. Slide 15: Profitability

    1999 2000 2001 2002 1Q2003 ROAA (3.51) (1.33) 0.41 0.32 0.31 ROAE (10.20) (9.76) 3.00 2.58 3.06 Efficiency Ratio 146.38 114.51 83.79 88.09 83.86 Non-Interest Income to Total Revenue 7.91 32.99 37.31 33.97 34.10 For the Years Ended December 31, Profitability Financial Holdings, Inc.

  16. Slide 16: Profitability

    Total Interest Income $ 1,859 $ 6,181 $ 9,126 $ 10,311 Total Interest Expense 753 3,457 5,059 4,819 Net Interest Income 1,106 2,724 4,067 5,492 Non Interest Income 95 1,341 2,420 2,826 Non Interest Expense 1,758 4,655 5,500 7,211 Net Income (Loss) (1,012) (1,072) 547 627 Diluted Earnings (Loss) per

  17. Slide 17: Profitability

    Total Interest Income $ 3,035 Total Interest Expense 1,269 Net Interest Income 1,766 Non Interest Income 794 Non Interest Expense 2,247 Net Income (Loss) 182 Diluted Earnings (Loss) per Share (1) $ 0.06 (1) Restated for 11-for-10 stock split that occurred in 2002. For the Quarter Ended March 31, Dol

  18. Slide 18: Earnings per Share

    1999 2000 2001 2002 East -0.88 -0.75 0.23 0.21 Earnings per Share Profitability 1999 2000 2001 2002 Financial Holdings, Inc.

  19. Slide 19: Asset Quality

    GBTS Medians Medians at March 31, NC Southeast 2003 Banks (1) Banks (1) Non-Performing Loans to Total Loans 0.79% 0.61% 0.45% Non-Performing Assets to Total Assets 0.54% 0.54% 0.41% (1) Excludes merger targets. Sources: SNL Datasource YTD at May 6, 2003 and Equity Research Services. Asset Quality Fi

  20. Slide 20: Capital Requirements

    GBTS at March 31, Minimum Well-Capitalized 2003 Requirement Requirement Total Risk-Based Capital Ratio 11.84% 8.0% 10.0% Tier1 Risk-Based Capital Ratio 10.84% 4.0% 6.0% Leverage Ratio 9.02% 4.0% 5.0% Capital Requirements Financial Holdings, Inc.

  21. Slide 21: Earnings per Share 1Q2002 1Q2003

    Earnings per Share 1Q2002 1Q2003 Financial Holdings, Inc.

  22. Slide 22: Net Income

    Net Income Dollars in Thousands 1Q2002 1Q2003 Financial Holdings, Inc.

  23. Slide 23: Net Interest Margin

    Net Interest Margin 1Q2002 1Q2003 (%) Financial Holdings, Inc.

  24. Slide 24: Non-Interest Income/Total Revenue

    1Q2002 1Q2003 (%) Non-Interest Income/Total Revenue Financial Holdings, Inc.

  25. Slide 25: 1Q2003 v. 1Q2002 - Financial Highlights

    1Q2003 v. 1Q2002 - Financial Highlights Financial Holdings, Inc. Net interest income is up 53%. Net interest margin of 3.29%, up from 3.06%. Non-interest income (excluding non-recurring items) grew 31% to $696,000 from $533,000. Income from mortgage banking operations nearly tripled. Non-performing

  26. Slide 26: Business Strategy

    Business Strategy Financial Holdings, Inc.

  27. Slide 27: Business Strategy

    Continue to build our franchise through acquisitions and/or de novo branching with a concentration on northeastern North Carolina and the tidewater area of Virginia; Develop and sustain growth-oriented sources of non-interest income through our Gateway Insurance Services, Inc. and Gateway Investment

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