North Bay Bancorp Logo
NASDAQ: NBAN
Keefe, Bruyette & Woods
Community Bank Investor Conference
August 2, 2006
Presenters:
Terry L. Robinson, President & CEO
Michael W. Wengel , EVP, Chief Financial Officer
Safe Harbor Statement
o This presentation contains forward-looking statements that are:
- Subject to contingencies & uncertainties,
- Not a guarantee of future performance,
- Based on assumptions that may change,
- Not to be relied on unduly.
o Many factors are beyond our ability to control or predict, including factors
such as:
- Interest rate volatility.
- Economic conditions.
- Asset performance.
- Ability to control costs.
- Successful acquisition assimilation.
o We assume no obligation to update this data.
o Please see risk factors in NBAN's SEC filings.
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A BRIEF HISTORY
o The Vintage Bank opened for business in Napa in January, 1985 with capital of
$3.1 million
o A $2 million secondary offering was issued in 1994 to support organic growth
o North Bay Bancorp was formed in 1999
o Solano Bank opened in July 2000 with 3 offices, partially capitalized with a
$5 million secondary offering
o Three Boards were merged & reduced in 2004; Charters merged in 2005; combined
Board reduced to 11 in 2006
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WHY INVEST IN NBAN?
o Board & Management
o Markets & Core Deposit Base
o Asset Quality
o Historical Consistency & Low Risk Profile
o EPS Growth Potential
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DIRECTORS
David B. Gaw
Chairman, Attorney
Richard S. Long
Vice Chairman, CEO Regulus Group, LLC
Thomas N. Gavin
Financial Planning
Fred J. Hearn, Jr.
CEO, Hearn Pacific Corporation
Thomas F. Malloy
Insurance
Conrad W. Hewitt
Former California Superintendent, DFI
Former Managing Partner, Ernst & Young
Thomas Shelton
President & CEO, Joseph Phelps Vineyards
Stephen C. Spencer
Commercial Real Estate
Denise C. Suihkonen
Certified Public Accountant
James E. Tidgewell
Certified Public Accountant
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EXECUTIVE MANAGEMENT
Terry L. Robinson
President & CEO since 1988
Glen C. Terry
President, The Vintage Bank
Joined in 1999
John Nerland
Senior Executive Vice President,
Chief Credit Officer
Joined in 2002
Virginia Robbins
Executive Vice President
Chief Operating Officer
Joined in 2006
Michael W. Wengel
Executive Vice President
Chief Financial Officer
Joined in 2006
Stephanie Rode
Senior Vice President
Risk Management
Joined in 2003
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AREAS WE SERVE
[Map Omitted]
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NAPA COUNTY DEPOSIT MARKET SHARE
[Pie Graphic Omitted]
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SOLANO COUNTY DEPOSIT MARKET SHARE
[Pie Graphic Omitted]
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TOTAL DEPOSITS
June 30, 2005 June 30, 2006
$510 Million $482 Million
[Pie Graphic Omitted] [Pie Graphic Omitted]
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ASSET QUALITY
[The Vintage Bank Logo Omitted]
[Solano Bank Logo Omitted]
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NON-PERFORMING ASSETS/TOTAL ASSETS
[Graph Omitted]
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WHY STELLER ASSET QUALITY?
o Credit Culture
o Consistent Underwriting
o Relationship Banking
o Lend within our Markets
o Lend within Industries we Understand
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LOAN PORTFOLIO
June 30, 2005 June 30, 2006
$434 Million $450 Million
[Pie Chart Omitted] [Pie Chart Omitted]
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A HISTORICAL PERSPECTIVE
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ASSETS
[Graph Omitted]
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NET INCOME
[Graph Omitted]
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RETURN ON AVERAGE ASSETS
[Graph Omitted]
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RETURN ON AVERAGE EQUITY
[Graph Omitted]
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ANNUAL OPERATING EFFICIENCY
[Graph Omitted]
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EARNINGS PER SHARE
[Graph Omitted]
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MARKET CAPITALIZATION
[Graph Omitted]
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FIVE YEAR STOCK PERFORMANCE
[Graph Omitted]
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RISK PROFILE
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BALANCE SHEET
o Investment Portfolio
. Agencies, municipals and mortgage-backed PAC's & vanilla pass
throughs
. No derivatives, structured notes, preferred stock, etc.
o Loan Portfolio - Clean
o No Significant Intangible Assets
o Stable Demand Deposit Base
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EARNINGS
o Interest Rate Risk Near Zero
. Slightly asset sensitive in short run
. Slightly liability sensitive in longer run
o No dependency on Cyclical Revenues
o Low Cost Deposit Base Best Defense
Against a Flat Yield Curve
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WHAT'S NEXT?
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2006 - 2007 PLANS
o Strengthen "Middle" Management in Key Areas
o Capture Automation Opportunities & Improve Processes in General
o Capture FTE Improvement Opportunities flowing from Management Upgrades
and Automation of Processes
o Expand "Niche" Market Opportunities
(Example: Professional Practice Finance Product)
o Enter Contra Costa County
. Contiguous market - large population & deposit base
. Minimal community bank competition in targeted geographic
sections
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SUMMARY & CONCLUSION
o NBAN is an Exceptional Franchise
. Stable
. Premier Markets
. Low Risk
o Positive Outlook
. Solid Organic Growth
. Increasing Earnings Trend
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ON -SITE VISITS ARE ENCOURAGED
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