Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (July 2013)
27 slides from Banc Of California's investor presentation, Jul 30, 2013
Slide 1: Forward-looking Statements
Forward-looking Statements When used in this presentation and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the
Slide 2: Overview
Overview Company Update Organization / Market Footprint Financials Key Banking Initiatives Consolidate Charters Rationalize Branch Footprint CS Financial Acquisition Key Holding Company Initiatives The Palisades Group Acquisition Platform Initiative
Slide 3: Company Overview
Company Overview Banc of California, Inc. Pacific Trust The Private Bank PTB Property Bank of California Holdings Residential Lending Division Market Overview data from bloomberg.com as of { ] Pending Transactions Market Overview Company Name: Exchange: Equity Ticker: Debt Ticker: Preferred Ticker:
Slide 4: Leadership Team
Leadership Team Banc of California, Inc. Board of Directors Pacific Trust Bank / The Private Bank of California
Slide 5: Strategic Growth
Strategic Growth ® Banc of California has been successful in growing its asset base both organically as well as through opportunistic acquisitions since its recap in November 2010 Closed acquisitions of Gateway Bancorp and Beach Business Bank in 2012 Closed acquisition of The Private Bank of Califor
Slide 6: Retail Bank Branch Footprint
Retail Bank Branch Footprint @ Branch Locations Address ee 600 S. Lake Avenue 1880 Century Park E 2635 Wilshire Boulevard 13031 Newport Avenue 500 Newport Center 1920 Main Street 7877 Ivanhoe Avenue. 7083 Hollywood Boulevard. 650 Town Center Drive... 180 E Ocean Boulevard 10100 Santa Monica Boulevar
Slide 7: Loan Production Offices
Loan Production Offices Loan Production Offices Albany La Jolla 1 Reno Alhambra. La Jolla 2 Riverside Aliso Viejo. . Los Angeles / Korea Town Salinas Brentwood Lake Stevens San Francisco Chico Lakewood San Jose Concord Long Beach San Mateo Costa Mesa 1 Medford Santa Rosa Costa Mesa 2 Murrieta Seal B
Slide 8: Financial Overview
Financial Overview Balance Sheet Q1 2013 Q1 2013* Income Statement Q1 2013 Cash & Deposits $127 $128 Total Interest Income $19,168 Securities 109 376 Total Interest Expense 3,809 Loans, Net 1,611 1,976 ‘He: ‘are manne a e268 LHFS/Other 204 229 Provision for Loan and Lease Losses 2,168 Total mas $2,0
Slide 9: Deposit Franchise
Deposit Franchise Improved deposit mix and cost of funds 2010 July 1, 2013* Total Deposits: $683 million Total Deposits: $2,671 million CDs 23% CDs 54% Transaction 46% Transaction 77% Total Deposits ne $683 $2,671 (millions) Cost of geen. —_ Deposits erage Account Size $19,048 $53,830 % Transaction
Slide 10: Lending Franchise
Lending Franchise Strengthened and diversified lending platform Loan Portfolio Transition Asset Origination Capabilities 2010 July 1, 2013* Total Loans & Leases: $688 Total Loans & Leases: $2,261 Other ” - 3% Matfer Multifamily 2 ~Coneamer C&ISBA 4% 8% Residential 89% Residential 60% $ Millions Paci
Slide 11: Credit Metrics
Credit Metrics The Private Bank of Ratios as of 6/30/13 — Preliminary Pro Forma Pacific Trust Bank* California** Total Classified Loans / Total Loans 3% 3% Total Non-Accrual plus OREO / Total Loans plus 2% 1% OREO Total Classified Loans / Capital plus Reserves N% 22% Texas Ratio*™* 12% 18% All ratio
Slide 12: Key Banking Metrics
Key Banking Metrics Pacific Trust Bank The Private Bank of California* Q2 2013** Q1 2013 Q2 2013** Q1 2013 OAA Average Assets $1,903,015 $1,434,538 $1,050, eee $1,006,696, Net Income $7,129 $3,915 $2, $1,246 ROAA 1.50% 1.11% 0. ae . 0.50% ROAE Average Equit $179,882 $163,917 $105,256 $100,458 Net In
Slide 13: Capital Position
Capital Position Regulatory Capital Ratios Pacific Trust Bank Beach Business Bank PBOC Banc of California Q4 Qi Q2 Q4 Qi Q2 Pro Q4 Qi Ratio 2012 2013 2013* 2012 2013 2013* Forma** 2012 2013 Tier 1 Leverage 11% 10.5% 10.0% 12.0% 11.5% 12.2% 8.6% 10.2% 9.9% Tier 1 Risk-Based Capital 16.3% 16.4% 18.4%
Slide 14: Pro Forma Capital Growth
Pro Forma Capital Growth $350 5 G $325 pa==—) 24 $300 : F | $46 | | $275 D pope) eter 1b ---- $250 . eet i_#v_ GY; ated $225 y) B UG $322 Z $200 Wlssstths $175 A $40 $150 + $125 - PRES $100 — - 1013 Preferred Common Branch FMV in DTA VA @) Accretable Potential Equity Stock Stock Sale excess of Yield
Slide 15: Overview
Overview Company Update Organization / Market Footprint Financials Key Banking Initiatives Consolidate Charters Rationalize Branch Footprint CS Financial Acquisition Key Holding Company Initiatives The Palisades Group Acquisition Platform Initiative
Slide 16: Rationalize Branch Footprint
Rationalize Branch Footprint Focus on attractive sub-markets throughout Southern California e Exiting Branches Being Retained Pro Forma Branch Footprint Address Location Deposits Year Opened cversixa santa sar’ } 600 S. Lake Avenue Pasadena 27,000 2013 [= we Century Park E Century City 112,000 2012
Slide 17: Branch Sale Summary
Branch Sale Summary Transaction PacTrust Bank to sell 8 branches to AmericanWest Bank ¥ $477 million of deposits v¥ Assets transferred include cash and associated real estate / fixed assets (2) Locations Sold Riverside (2), Chula Vista (2), Lakewood, Temecula, El Cajon, and Clairemont/San Diego Depo
Slide 18: Improved Deposit Franchise
Improved Deposit Franchise Target businesses, owners, employees, and families Target high balance transactional and business accounts + = = PBOC Branches Sold Pro Forma Banc of California Primary Markets Century City, Beverly Hills, Riverside, South San Diego, Los Angeles, Orange, Chula Vista San Di
Slide 19: Strong Deposit Growth
Strong Deposit Growth December 31, 2012 July 1, 2013* Balance Rate Mix Balance Rate Mix MMDA $160,483 0.44% 12% MMDA $305,252 0.1% N% Savings $298,389 0.36% 22% Savings $267,175 0.19% 10% Checking $204,368 0.05% 15% Checking $496,953 0.05% 18% One Accounts 0.00% 0% One Accounts $828,498 119% 30% D -
Slide 20: Branch Sale Improves Profitability
Branch Sale Improves Profitability Growing deposit franchise with increased cost efficiency Expenses Bank Balance Sheet $5.0+ million annual reduction in direct non-interest expense Approximately 50 employees, or 15% of commercial bank workforce, to be transferred $2.5 million annual reduction in in
Slide 21: CS Financial Complements Private Banking
CS Financial Complements Private Banking The Private Bank of California Recent Acquisition CS Financial Pending Acquisition Target Market HNW Families HNW Families Channels Fiduciaries Fiduciaries Geography West LA West LA Regulatory Good Standing Good Standing Reputational Strong Strong Offering Pr
Slide 22: Residential Lending Leadership Team
Residential Lending Leadership Team Executive Management Residential Lending Jeff Seabold Administration Compliance Marketing Credit Warehouse Lending Zoila Price Corporate Support Production & Operations Mortgage Banking Portfolio Lending lerry Konzen Operations Chief Production Sai Lyons Officer R
Slide 23: Mortgage Banking Originations
Mortgage Banking Originations $600 $500 : $400 YoY Growth = 60% $300 $200 $0 - 2011 Q2 - 2011 Q4- 201 Q1-2012 = Q2-2012 Q3-2012 Q4-2012 Q1-2013 Q2- 2013 $ Millions Q2 2013 figures are preliminary only
Slide 24: Strategic Initiatives
Strategic Initiatives Target Regulatory Applications / Notifications Close Date 1. Sale of Branches to AWB 4Q 2013 2. Consolidation of Pacific Trust Bank and The Private Bank of California 40 2013 (OCC National Bank Charter) 3. Acquisition of CS Financial Inc. 4Q 2013
Slide 25: Overview
Overview Company Update Organization / Market Footprint Financials Key Banking Initiatives Consolidate Charters Rationalize Branch Footprint CS Financial Acquisition Key Holding Company Initiatives The Palisades Group Acquisition Platform Initiative
Slide 26: The Palisades Group Overview
The Palisades Group Overview The Palisades Group, LLC (“TPG”) is a Registered Investment Adviser specializing in the acquisition, disposition and management of residential mortgages. TPG management team has extensive experience in all aspects of the residential sector including loan underwriting and
Slide 27: Pro Forma Company
Pro Forma Company Banc of California, Inc. PTB Property Banc of California, NA Holdings The Palisades Group CS Financial Shared Infrastructure Platform Initiative (i.e., Technology, MIS, Legal, Marketing, Finance) to cost up to $5 million, target completion in 1H14 Market Overview Company Name: Banc
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