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Investor Presentaiton

Transaction Assumptions COST SAVINGS $4.9 million after-tax cost savings in first full year; 35% of SGB's estimated non-interest expense Assumes 75% realization of cost savings by the end of FY 2020; 100% in FY 2021 TRANSACTION EXPENSES LOAN FAIR VALUE ADJUSTMENT FIXED ASSET MARK OTHER FMV ADJUSTMENTS CORE DEPOSIT (2) INTANGIBLE ☐ $7.25 million in after-tax transaction expenses $3.8 million pre-tax credit mark on total loans, equal to 0.95% of SGB's total loans, consisting of: 0.42% PCD credit mark on total loans (1) • • 0.53% non-PCD credit mark on total loans; accreted back through income over 4.5 years Day 2 CECL reserve of 1.0x non-PCD credit mark (additional 'double-count' of 0.53% on total loans); assumed at time zero $4.1 million rate-related positive write-up $2.2 million positive write-up on SGB's fixed assets Mark results from gain on SGB's branch real estate FBMS to repay SGB's FHLB at close; includes prepayment penalty $0.2 million positive write-up to SGB's deposits $7.3 million core deposit intangible amortized straight-line over 10 years ■ 2.0% of SGB's transaction accounts (2) EFFECTIVE TAX RATE ■ 25% effective tax rate on merger adjustments (1) Based upon SGB's September 30, 2019 total loans of $395 million (includes loans held for sale) (2) Core deposits defined as total deposits less all CDs; Based upon SGB's September 30, 2019 transaction accounts of $367 million Source: S&P Global Market Intelligence ST TheFirst 9 BANCSHARES, INC.
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