State National Bancshares — Investor Conferences March 9 - 16, 2006
23 slides from State National Bancshares's conference presentation, Mar 9, 2006
Slide 1: State National Bancshares, Inc. Investor Conferences
STATE NATIONAL BANCSHARES, INC. NASDAQ: SNBI Investor Conferences March 9 - 16, 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on assumptions which are inherently sub
Slide 3: Forward-Looking Statements
Forward-Looking Statements significant reliance on loans secured by real estate may increase our vulnerability to downturns in the real estate market and other variables impacting the value of real estate; if we fail to retain our key employees, growth and profitability could be adversely affected;
Slide 4: Company Overview
Company Overview ‘As of December 31, 2005 Headquarters: Fort Worth, Texas (Tarrant County) ° = Total Assets: $1.7 billion = Total Loans: $1.1 billion = Total Deposits: $1.4 billion = Branches: 42 rT] Total Equity: $212 million
Slide 5: Investment Highlights
Investment Highlights Strong earnings growth with asset sensitive balance sheet Solid core deposits" providing net interest margin expansion - data as of and for the year ended December 31, 2005 0.96% cost of deposits 89% core deposits A proven acquirer and integrator Strong underwriting and credit
Slide 6: Branch Franchise
Branch Franchise Dec tt Deposit Branch in Market Market Count (Sh) [Tarrant County Market® 11 $424.4) West Texas Market 14 403.) JRio Grande Market a 523 [Total 2 o Desnes Taran enshoes County
Slide 7: Markets
Markets ‘The Company primarily serves three distinct geographic markets with 42 branches. Tarrant County Market (Fort Worth) Large urban area with a population of approximately 1.6 million Third most populous county in Texas; population projected to grow 11.1% over the next five years Home of major
Slide 8: Beneficial Ownership
Beneficial Ownership Percentage Beneficially Beneficial Owners Sonal Franklin eau Advisors, Ae7au Castle Creek Capital, LLC 15.65% All directors and executive officers as a group (13 12.09% persons) (1 The tes shares se bene cuned by 28 chet Franko Matt Aon, LLC CFA. FAA he, arventto meson stay seem
Slide 9: Strategies for Continued Growth
Strategies for Continued Growth Expand through acquis Tarrant County Market ions and select de novo branches with a focus on the Leverage existing infrastructure to create additional operational efficiencies Continue growth of low cost core deposits Sustain emphasis on community focused relationship
Slide 10: Room for Growth
Room for Growth Tarrant County — Deposit Market Share Analysis Weighted Total Deposits — Market Branch InMarket_ Share Rank Institution Tieker__Count_"_ ($000) i 1 oP Morgan Chase & Co. (NY) JPM 303,922,862 2440 2 Bank of America Corp. (NC) BAC 46 2.853,395 18.51 3 Wells Fargo & Co. (CA) WFC 54 2,01
Slide 11: Strong Loan Growth
Strong Loan Growth Total Loans a $1,200,000 se $1,100.00 on ee $1,000,000 ae sone 0000 se00 goo 5736509 sro e00 erie ‘$00,000 Dokate in Thousands "
Slide 12: Balanced Loan Portfolio
Balanced Loan Portfolio As of December 31, 2005 Agriculture and Real estate - other ‘construction ‘Commercial Consumer 7.9% 135% Real estate - 1.4 38% 245% femiy 11% Real estate - (in thousands) other Real Eatate- constructon 38.6% Real Edate- 1-4 family Real Ecate- other Commercial Coneumet Agroutu
Slide 13: Solid Asset Quality
Solid Asset Quality NPAs /Loans and OREO 0n% NCOs / Average Loans 150% 090% 015% 040%, 009% ones ots oak ono + 00% 2003 2004 2005 2003 2008 2005 Reserves /NPLs Reserves / Loans 175.0% 10.005 1988) — 157 56% 125% 1208 43% 118% ite 125.0% + 105% 2003 2004 2006 2003 2004 2005 8
Slide 14: Financial Summary and Discussion
Financial Summary and Discussion
Slide 15: Repositioning Balance Sheet and Growing Core Deposits
Repositioning Balance Sheet and Growing Core Deposits $1,400,000 $1,300,000 $1,200,000 Thousands $1,100,000 oiiarsi $1,000,000 ‘$900,000 ‘$800,000 + 88.5% 88.6% $1,126,394 $998,794 2003 2004 2005 mmm Total Deposits —+— Average Core Deposits Average Total Deposits 89.0% 88.0% 87.0% 26.0% 85.0% 24.0%
Slide 16: Solid Core Deposits
Solid Core Deposits « Average balances for the year ended December 31, 2005 Time deposits of $100,000 or aa Nonirterest sans: lonirterest- Time deposits of bearing demand less than 35.4% Interest bearing demand, savings ‘and money market 39.4% YearEnded Percentot Average 31-Dec05 _ Total (i) Rate (4
Slide 17: Increasing Profitability
Increasing Profitability Poised for earnings acceleration with rising interest rates: Net interest margin expansion Increased to 5.34% for the year ended December 31, 2005 from 4.87% for the year ended December 31, 2004 Variable rate loans account for 63.5% of the loan portfolio as of December 31, 2
Slide 18: Strong Performance Ratios
Strong Performance Ratios Net Interest Margin 5.40% sue 5.20% 5.00% 4 4.80% a 4.60% 4.40% + 208 708 2006 Efficiency Ratio’ 75.00% a 70.00% Son 64.73% 65.00% 60.00% + 2 2008 7205 8 © The efficiency ratio is determined by dviing total noninterest expense less intangible amortization by an amount equal
Slide 19: Strong Performance Ratios
Strong Performance Ratios Return on Average Assets 133% 129% Aone 11% Toe + GAAP ROA| Cash ROA 0.85% 2008 200 2005 Return on Average Equity tag 11.05% 9.84% 9.73% 8.20% & + GAAP ROE] Cash ROE 7.94% 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Included in the following earnings analyses are non-GAAP financial measures, which exclude the after-tax impact of intangible asset amortization expense. We have included a reconcilement of the non-GAAP financial measures within this presentation. We provide these non-GAA
Slide 21: CASH Earnings Per Share
CASH Earnings Per Share Below is a reconciliation of GAAP earnings per share to non-GAAP cash earnings per share. Years Ended Dec 31, 2005 2004 (Unaudited) “(Unaudited GAAP EPS fully diluted $1.54 $1.37 Intangible amortization ‘expense per share tax effected 0.21 0.19 Cash EPS fully diluted $1.75 $1
Slide 22: Healthy Earnings Trend
Healthy Earnings Trend $2000 $18 000. $16 100 $14 000; $12,000. $10,000. $8,000 $6000 $400 $2900 $0. $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00
Slide 23: Searchable text section of graphics shown above
Searchable text section of graphics shown above [L OGO] NASDAQ: SNBI Investor Conferences March 9 - 16, 2006 Fo rward-Looking Statements • This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guar
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