Filed Pursuant to Rule 433
Issuer Free Writing Prospectus dated June 7, 2010
Relating to Preliminary Prospectus dated June 7, 2010
Registration Statement No. 333-163210
 
 
June 2010
Presented By:
The Savannah Bancorp, Inc.
The Savannah Bancorp, Inc.
Common Stock Offering
 
 
 
2
  IMPORTANT INFORMATION REGARDING THIS PRESENTATION
 
  All information contained in this presentation is obtained from sources believed to be accurate and reliable.
  However, such information is presented “as is” without warranty of any kind, and the Company makes no
  representation or warranty, express or implied, as to the accuracy, timeliness, or completeness of any such
  information or with regard to the results to be obtained from its use. While the Company has attempted to make
  the information current at the time of its release, it may well be or become outdated, stale or otherwise subject to
  a variety of legal qualifications by the time you actually read it. No representation is made that the Company will
  or is likely to achieve results comparable to those shown.
 
 
 
3
  FORWARD-LOOKING STATEMENTS
 
   This presentation contains statements that constitute “forward-looking statements” within the meaning of the
   Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation
   Reform Act of 1995 which are intended to be covered by the safe harbors created thereby.   These forward-
   looking statements include, among others, the Company’s statements regarding (1) management’s expertise and
   ability, (2) estimated proceeds of the offering, (3) expectations that capital raised in the offering will position the
   Company to take advantage of market opportunities, (4) projected demographic information, (5) the economic
   outlook in the Company’s metropolitan statistical areas, (6) the assumptions underlying the Company’s
   expectations, (7) pro forma capital position and ratios following the execution of the Company’s capital plan, (8)
   the assumptions used in the Company’s capital analysis, (9) market valuation, (10) expectations regarding growth
   of the Company, and (11) the Company’s potential earnings.   Prospective investors are cautioned that any such
   forward-looking statements speak only as of the date hereof and are not guarantees of future performance and
   involve risks and uncertainties, and that actual results may differ materially from those contemplated by such
   forward-looking statements.   A number of factors could cause actual results to differ materially from those
   contemplated by the forward-looking statements in this presentation, including, without limitation, (i) changes in
   national or local economic and business conditions, (ii) greater than expected loan losses, (iii) changes in interest rates
        and/or market prices of securities and other assets, (iv) the timing and impact of potential future acquisitions, the
        success or failure of integrating operations, and the ability to capitalize on growth opportunities upon entering new
        markets; (v) legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and
        their application by our regulators, and (vi) the risk factors discussed under the heading “Risk Factors” in the
        prospectus. Many of these factors are beyond the Company’s ability to control or predict.   The Company does not
    assume any obligation to update any forward-looking statements as a result of new information, future
   developments or otherwise.
 
 
 
4
USE OF NON-GAAP FINANCIAL MEASURES
This presentation contains certain non-GAAP financial measures determined by methods other than in
accordance with U.S. generally accepted accounting principles. Such non-GAAP financial measures may
include pre-tax, pre-provision return on average assets and pro forma tangible common equity to tangible
assets ratio. The most comparable GAAP measures to these measures are net income and the ratio of total
equity to total assets, respectively. The Company believes that these non-GAAP financial measures provide
meaningful additional information about the Company to assist investors in evaluating the Company’s
operating results, financial strength and capitalization. These non-GAAP financial measures should not be
considered as a substitute for operating results determined in accordance with GAAP and may not be
comparable to other similarly titled measures of other companies. The computations of the non-GAAP
financial measures used in this presentation are set forth in Appendix A to this presentation.
The Company has filed a registration statement (including a prospectus) with the SEC for the offering to
which this communication relates. Before you invest, you should read the prospectus in that registration
statement and other documents the Company has filed with the SEC for more complete information about
the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC Web
site at www.sec.gov Alternatively, the issuer, the underwriter or any dealer participating in the offering will
arrange to send you the prospectus if you request it from FIG Partners, LLC, Capital Markets Department,
Attention Greg Gersack, 1175 Peachtree S tree t NE, 100 Colony Square, Suite 2250 Atlanta, GA 30361 or at
404-601-7241.   This prospectus is available at
 
 
 
5
Offering Term Summary
Issuer:                                                                 The Savannah Bancorp, Inc.
Ticker / Exchange:       SAVB / NASDAQ Global Market
Type of Security:       Common Stock
Pre-Offering Shares Outstanding:                  5,937,689 as of 4/30/2010
Transaction Size:       $10.4 million (excluding over-allotment option)
                                                                            $11.96 million (total)
Over-Allotment Option:     15%
Expected Pricing:       June 9, 2010
Sole Book Running Manager:                           FIG Partners LLC
 
 
 
6
Offering Rationale:
Position The Company To Take Advantage Of Market Opportunities
The capital raised in the offering will:
q   Strengthen the working capital and the capital position of the Company and the banks
q   Support potential internal growth of the Company
q   Solidify the Company’s position in the community which will help bring additional
  business to the banks
q   Support potential future acquisition opportunities of whole banks and bank branches
q   Support possible future participation in FDIC-assisted transactions
q   Provide up to $1.8 million for an earn-out payment to Minis & Co., Inc.
q   Allow the Company to further leverage its management experience
q   Support general corporate purposes
 
 
 
7
Company Summary
q   The Savannah Bancorp, Inc. is the holding company for the $768 Million asset The
  Savannah Bank, N.A. and the $259 Million asset Bryan Bank & Trust (as of March 31,
  2010). The Company is headquartered in Savannah, Georgia, and opened for business in
  1990.
q   The Savannah Bancorp, Inc. now operates 10 full service branches, in Georgia and South
  Carolina. Georgia branches include - 5 in Savannah, 2 in Richmond Hill, and 1 in Garden
  City. South Carolina branches include - 1 on Hilton Head Island and 1 in Bluffton.   In
  addition, the Company operates 1 Loan Production Office on St. Simons Island, GA.
q   Significant Insider ownership - the Board and Management beneficially own
  approximately 19 percent of the Company
q   A premier banking franchise in Savannah, Georgia
  q   The largest and oldest local community bank and headquartered in the heart of the
  historic district
q   As of March 31, 2010
  q   Total assets: $1,046,645
  q   Total loans: $848,905
  q   Total deposits: $901,792
  q   Total equity: $77,905
 
 
 
8
Savannah Bancorp Branches
Source: FIG Partners, Savannah Bancorp, SNL Financial LLC, 2009 FDIC Summary of Deposits.
q   Ranked 3rd in the Savannah MSA,
  with 13.66% market share
q   Ranked 18th in Hilton Head/ Beaufort
  MSA, with 1.92% market share
 
 
 
9
Opportunities
q   Opportunities for Organic Growth
  q   Loan and deposit customers are seeking established banks to do business with.
  q   Large regional and super regional banks are losing customers.
  q   This offering will allow the Company to continue to selectively and actively take on additional
                  business.
  q   The Company believes financial institutions in its markets continue to be defensive allowing it
                  the opportunity to be on the offense.
q   Opportunities for Non-Organic Growth
  q   Georgia continues to be plagued with troubled banks and the Company believes there will be
   opportunities for it to consider participating in the FDIC bidding process for strategically
   located institutions that will help to expand its footprint.
  q   The Company believes there will be opportunities over the coming years to partner with
                 “fatigued” organizations who wish to merge with a growing organization such as itself. The
                 Company believes there will be opportunities outside of the FDIC programs to acquire either
                 whole bank or bank branches within its footprint that will add to its long-term strategic plan.
 
 
 
10
Management Team
John C. Helmken II, President & Chief Executive Officer
John C. Helmken II is the President and Chief Executive Officer of The Savannah Bancorp, Inc. He has served as President of the
Company since April 2004 and became Chief Executive Officer on December 1, 2006. Prior to this he served as CEO of The
Savannah Bank since 2003 and President of The Savannah Bank from 2002 to 2008. He served as Executive Vice President from
2000 to 2001 and Senior Vice President from 1997 to 2000.   In addition he served as Vice President from June 1994 through 1996.
John has served on several corporate boards including Bryan Bank & Trust, Minis & Co., Inc., The Savannah Bank, and The
Savannah Bancorp, Inc.   He graduated Cum Laude in 1985 with a BBA in Finance from the University of Georgia.
Holden T. Hayes, President
Holden Hayes has served as President of The Savannah Bank since November 2008.   Prior to this he served as Executive Vice
President from April 2007 to November 2008.   Holden was previously a Senior Vice President and department head of the private
wealth management department at SunTrust Bank from June 2002 to April 2007.   In addition, he served as Vice President from
August 1998 to June 2002 at SunTrust Bank.   He graduated with a MBA from Georgia Southern University in 2003 and a BBA in
Finance from the University of Georgia in 1994.
Michael Wayne Harden Jr., Chief Financial Officer
Michael Harden, Jr. has served as Chief Financial Officer of the Company since 2008. He was previously Vice President beginning
in 2005. Prior to working at The Savannah Bancorp, Inc., Michael was a senior accountant from July 2002 to 2005 at the Savannah
Electric and Power Company.   Michael served as a manager of the financial institutions practice at Elliott Davis, LLC from 1997 to
July 2002.   He served as the special projects coordinator and instructor at Lee University from August 1994 to August 1995.
Michael graduated with a MBA from the University of Georgia in June 1997 and Cum Laude with a BA in Business from Lee
University.   In addition, Michael is a Certified Public Accountant and member of the AICPA.
 
 
 
11
R. Stephen Stramm, Chief Credit Officer
Stephen Stramm is the Executive Vice President and Chief Credit Officer of the Company and The Savannah Bank where he focuses on
the substandard loans and real estate owned for the Company.   He has served as Executive Vice President since 1990.   Prior to joining
the Company, Stephen served as Senior Vice President at First Union Bank from 1982 to 1990. In addition, he served as a commercial
loan officer at the Ford Motor Credit Company from 1977 to 1982.   Stephen graduated with a BS from the University of Rhode Island
in 1971.
Jerry O’Dell Keith, Senior Vice President
Jerry O’Dell Keith is the Senior Vice President at The Savannah Bancorp, Inc. and has served in this capacity since March 2008.   In
addition, Dell is the President of Bryan Bank & Trust.   Dell has served in this role since August 2004.   Prior to becoming President,
Dell was Executive Vice President of Bryan Bank & Trust from March 2003 to August 2004.   He served as a Senior Vice President and
division head at SunTrust Bank from February 1998 to March 2003.   He began his career at NationsBank and served in several
capacities from Assistant Cashier to Assistant Vice President and Branch Manager.   Dell attended the University of Georgia’s Banking
School from 1985-1987 and later the Louisiana State University Banking School of the South from 1987-1990.
Jimmy Burnsed, CEO of Bryan Bank & Trust
E. James Burnsed is the Chief Executive Officer of Bryan Bank & Trust.   He has served as CEO since the bank opened December 27,
1989.   After a merger with First Union National Bank, Jimmy served as Regional Consumer Banking Manager from 1984 to 1987 with
responsibility for consumer banking functions in Savannah, Vidalia, Valdosta, Waycross, Macon and Sylvania.   From 1978 to 1983,
Jimmy was a Senior Vice President of Human Resources for SBT Corporation which had 750 employees and assets of $700 million.   In
addition, he managed Human Resources for Savannah Bank & Trust (Lead Bank) which had 450 employees and assets of $450 million.
Jimmyattended Armstrong State College and the Graduate Bank Administration Institute at the University of Wisconsin.
Management Team
 
 
 
12
Savannah:
  q   Military bases
  q   6 bases in Savannah and surrounding area, with approximately 24,300 soldiers and 4,285
  civilian workers. Payroll approaches $1 billion annually.
  q   Ports and transportation
  q   Port of Savannah is the largest single container port in North America. Georgia ports are
  outperforming national peers.
  q   Tourism
  q   Over 6.85 million tourists annually.
  q   Manufacturing and services
  q   Approximately $1 billion annual payroll
Beaufort:
  q   Tourism
  q   Over 2 million visitors annually.
  q   Military
Demographics:
  q   Top community bank relative to its market
  q   Population grew at 22.43% from 2000-2009 more than the 21.33% for the state of Georgia
  q   Median household income of $62,061 is greater than the $56,761 and $48,210 for the states of Georgia
  and South Carolina, respectively.
Our Market Area
 
 
 
13
Deposit Market Share
Source: FIG Partners, SNL Financial
 
 
 
14
Financial Highlights
 
 
 
15
First Quarter Update
q   The Savannah Bancorp reported 1Q10 net loss of $488 thousand.
q   Net interest margin expanded to 3.64% for the 1Q10, an increase of 17bps from the 3.47%
  in 4Q09.
q   Net interest income for the 1Q10 was $8.43 million, an increase of 1.37% over the
  preceding quarter.
q   Credit quality remains stable - Nonperforming assets (NPAs) increased to $44.1 million for
  the 1Q10, an increase of $1.65 million from the preceding quarter. NPAs as a percentage of
  assets were 4.21% for the 1Q10, an increase of 17bps from 4.04% in 4Q09. Net charge-
  offs were 1.63% of average loans, compared to 0.83% in the fourth quarter. Provision for
  loan losses exceeded the net charge-offs by $1.93 million and the allowance for loan losses
  increased to $19.6 million, or 2.26% of loans for the 1Q10.
q   Noninterest income increased by $271 thousand, or 13% for the 1Q10 compared to the
  same quarter of 2009. Noninterest expense decreased by $48 thousand in 1Q10 when
    compared to the same quarter a year ago.
q   Noninterest bearing demand deposits, savings and money market deposits increased in the
  1Q10 while time deposits and interest bearing demand deposits decreased compared to the
  4Q09. Total deposits increased from $884.6 million in 4Q09 to over $900 million in 1Q10.
q   The efficiency ratio improved to 60.01%   in the 1Q10, compared to the 1Q09 where the
  efficiency ratio was 66.93%.
 
 
 
16
The Savannah Bancorp, Inc. Has Demonstrated An Ability To Generate
Growth Over The Past 5 Years
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
17
Source: FIG Partners, SNL Financial LLC, Regulatory Filings.
 
 
 
18
The Savannah Bancorp, Inc. - Loan Portfolio Details
 
 
 
19
The Savannah Bancorp, Inc. - Loan Portfolio Details
 
 
 
20
The Savannah Bancorp, Inc. - Loan Portfolio Details
Note: Dollars in thousands
Source: Company filings
 
 
 
21
The Savannah Bancorp, Inc. - Credit Quality Details
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
22
The Savannah Bancorp, Inc. - Credit Quality
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
23
The Savannah Bancorp, Inc. - Deposit Portfolio Mix
Source: FIG Partners, SNL Financial LLC, Regulatory Filings.
q    Decreasing dependency on CD’s, retail
and brokered deposits
q    Savings and money market accounts
continue to increase
q    Deposit rates continue to decrease
 
 
 
24
The Savannah Bancorp, Inc. - Solid Core Profitability
* See pages 32-33 for non-GAAP reconciliation tables
Source: FIG Partners, SNL Financial LLC, Company Fillings
 
 
 
25
The Savannah Bancorp, Inc. - Expanding Net Interest Margin
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
26
The Savannah Bancorp, Inc. - Strong Capital Ratios
Source: FIG Partners, SNL Financial LLC, Company Filings.
*Proforma assumes $11.96 million of additional capital raised.
** See pages 32-33 for non-GAAP reconciliation tables.
 
 
 
27
Investment Highlights
An opportunity to invest in the largest community bank
  headquartered in Savannah at an attractive valuation.
q   Premier community bank headquartered in Savannah
q   Solid core market
  q   Diversified economy makes this market ripe for further business expansion - Ports,
  Military, Tourism, Healthcare
q   Attractive valuation
q   Experienced and opportunistic management team
  q   Insiders and local investors plan to participate in this offering
q   FDIC assisted deal opportunities may exist
q   Opportunities for traditional M&A, either whole bank or branch
  transactions
 
 
 
28
Appendix A
 
 
 
29
Summary Demographic Information - By MSA/County
Summary Demographic Information - By Zip Code
* Includes LPO - St. Simons
Source: FIG Partners, SNL Financial LLC, ESRI, US Census Data.
 
 
 
30
Historical Financial Summary
Source: SNL Financial, Company Filings
 
 
 
31
Military Presence
q       Approximately 24,300 soldiers with payroll near $1
        billion annually.
  q   Hunter Army Airfield
  q   Ft. Stewart
  q   King’s Bay Naval Base
  q   165th Airlift Wing of the Georgia Air National Guard
  q   Coastal Guard Savannah Air Station
  q   Marine Corps Recruit Depot
  q   Beaufort Marine Corps Air Station (MCAS)
Ports
q       Georgia Ports Authority (GPA) operates deepwater
        ports in Savannah and Brunswick employing 981
        people directly and impacts the economy significantly.
  q   GPA reported that April 2010 marked the 5 th consecutive month of
  double digit container growth with export containers posting a
  30.4% increase in April 2010 vs. April 2009.
  q   Port of Brunswick experienced a 75.9% increase in movement of
  auto and machinery units in April 2010 vs. April 2009.
  q   Port of Savannah - largest single-terminal container facility in
  North America
The Savannah Economy
q   Tourism
  q   More than 6.85 million tourist visit Savannah
  annually
  q   19,700 people directly employed in tourism
  industry
q   Manufacturing
  q   $1 Billion annual payroll
  q   270 companies employ more than 14,500 people
q   Services
  q   Two major hospitals employ over 7,900 people
  q   Education employs approximately 6,700 people
  q   Local colleges and universities house more than
  18,000 students
Source: Savannah Area Chamber of Commerce
 
 
 
32
Non-GAAP Reconciliation Tables
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
33
Non-GAAP Reconciliation Tables
Source: FIG Partners, SNL Financial LLC, Company Filings.
 
 
 
34
 
The Savannah Bancorp, Inc. (MM) (NASDAQ:SAVB)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more The Savannah Bancorp, Inc. (MM) Charts.
The Savannah Bancorp, Inc. (MM) (NASDAQ:SAVB)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more The Savannah Bancorp, Inc. (MM) Charts.