2007 Industry Environment
Subprime mortgages trigger capital/credit market problems
Lowest Net Interest Margin for the industry since 1989
Annual earnings declined 27.4% compared to 2006
Lowest annual net income for industry since 2002
Approximately 60% of institutions reported lower earnings
Net charge-offs increased to a 5-year high
Performance Ratios
Recent Milestones
2007 - - Record year for loan closings
Rollout of national SBA program
Opened Middlesex, NJ branch, December 2007
Continued expansion into Pennsylvania
Full implementation of back office capture
Intense focus on core deposit growth
Now offering suite of investment products
Quarterly Performance Ratios
Experienced Management Team
Name Title Years Banking Experience
Jim Hughes, CPA President and CEO 26
Alan Bedner, CPA Executive VP, CFO 14
Mike Downes Executive VP, CLO 22
John Kauchak Executive VP, CDO 27
Marc Sovelove Senior VP/Retail Lending 23
Keith Fenstermaker Senior VP/Credit Administration 31
Janice Bolomey Senior VP/Branch Administration 22
Strategic Objectives
Improve our customer service and sales culture
Focus on low-cost core deposits
Provide alternative investments through Emerald Financial
Rollout of national SBA program
Restructure lending areas/systems
Continued emphasis on mortgage line of business
Continue to invest in our corporate infrastructure - branch growth
Continual cost control measures
Continue to expand new products
Effective capital management
Financial Presentation
•Peer data includes 20 Public Commercial Banks in New Jersey between $250
million and $3.5 billion. Data as of or for the period ending December 31, 2007.
Pricing Data as of March 31, 2008.
million and $3.5 billion. Data as of or for the period ending December 31, 2007.
Pricing Data as of March 31, 2008.
Income Statement
In thousands
Income Statement
In thousands
In millions
In millions
Total Assets
Total Loans
8.4%
6.8%
16.2%
2.2%
Assets & Loans
Loans by Type
12/31/06
12/31/07
Loan Type | % | Rate | Loan Type | % | Rate | ||
SBA | 15.6% | 10.24 | SBA | 15.9% | 10.74 | ||
Commercial | 61.5% | 7.43 | Commercial | 61.9% | 7.53 | ||
Res Mortgage | 12.5% | 5.51 | Res Mortgage | 12.5% | 5.84 | ||
Consumer | 10.4% | 6.73 | Consumer | 9.7% | 6.79 |
Asset Quality
Net Interest Margin
2003 | 2004 | 2005 | 2006 | 2007 | 1Q 2008 | |||||||
Prime Rate | 4.00% | 5.25% | 7.25% | 8.25% | 7.25% | 5.25% |
Total Deposits
In millions
6.1%
6.8%
Shareholders’ Equity
Book Value
In millions
Capital Ratios
Key Investment Appeals
Stock Performance Chart
Ratios
•Peer data includes 20 Public Commercial Banks in New Jersey between $250 million and $3.5 billion.
Data as of or for the period ending December 31, 2007. Pricing Data as of March 31, 2008.
Key Investment Appeals
• Growing market share in attractive markets
• Focus on deposit and loan growth
• Leader in SBA lending
• Expansion strategy
• Insider ownership
• Attractive valuation