On Thursday, August 14, 2014, NASDAQ OMX hosted a webinar on Investor Relations Best Practices for Regional and Small-Cap Community Banks. The webinar featured the following panelists:
• Tony Rossi, CFA – Senior Vice President, Financial Profiles, Inc.
• Julianna Balicka – Analyst, Keefe, Bruyette & Woods
• Joe Stieven – Chief Investment Officer, Stieven Capital Advisors, L.P.
The panelists provided their views on a number of different areas of investor relations. Some of the notable insights included:
Getting sell-side research coverage The most effective strategy for attracting sell-side research coverage is to first focus on developing interest in your stock among institutional investors. When analysts see that their institutional clients are involved in a stock, they will recognize that they can add value by providing research coverage.
Tips for earnings releases Analysts and investors like to see five quarters of data provided for the income statement, the balance sheet and credit quality metrics. Make sure to include linked quarter comparisons in the earnings release, as these are the trends that analysts and investors track most closely. And it’s a nice touch to send analysts and investors a PDF copy of the earnings release after it crosses the wire, as it makes it a lot easier to read the financial tables.
Tips for investor presentation View your investor presentation as an opportunity to get information in front of investors that they can’t get from data providers like SNL or Bloomberg. Focus on telling your investment story and what differentiates you from other banks, rather than just showing a litany of charts. Don’t concentrate too much on the past; investors want to know about the future.
Incentive compensation plans The most shareholder-friendly incentive compensation plans are those that are tied to EPS growth, rather than net income growth, as the EPS metric is more closely aligned with the interests of shareholders.
Using social media None of the panelists had seen any banks using social media for IR purposes, and all of them indicated they thought the investment community was perfectly satisfied with the traditional forms of communication.
To access a replay of the webinar, click here.