Banc Of California, Inc. · NYSE:BANC
Banc Of California — Merger or Acquisition (April 2014)
20 slides from Banc Of California's merger presentation, Apr 23, 2014
Slide 1: Acquisition of Popular Community Bank's California Branch Network
Acquisition of Popular Community Bank’s California Branch Network April 23, 2014
Slide 2: 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, t
Slide 3: Acquisition of Popular's California Branch Network
* Acquisition of Popular’s California Branch Network In-market transaction with complementary customer deposits to support Banc of California’s (“BANC”) strategy of building California’s bank Deposits align with BANC’s customer base of private business owners, entrepreneurs and homeowners with avera
Slide 4: Transaction Summary
* Transaction Summary Transaction Acquisition of deposits, performing loans and 20 branches in California Total Deposits Approximately $1.1 billion Consideration Approximately $5.4 million(1) Total Loans Approximately $1.1 billion of performing loans (primarily C&I, investor CRE and Multifamily) wit
Slide 5: Creating California's Bank
* Existing Loan Offices Existing Branches Banco Popular Branches Creating California’s Bank Headquartered in Irvine, CA with over 1,300 full-time employees NASDAQ: BANC Pro Forma Franchise 83 locations in California with 38 branches in Los Angeles, Orange and San Diego counties(1) $5.0 billion in As
Slide 6: Evolution of the Franchise
* Evolution of the Franchise BANC has successfully grown its asset base both organically as well as strategically through acquisitions since its recapitalization in November 2010 Pro forma bank has over $5 billion in assets, a 80% CAGR since Q4 2010 Source: SNL Financial. (1) Pro forma Banco Popular
Slide 7: A Top California Bank at an Attractive Entry Point
* A Top California Bank at an Attractive Entry Point Top Public Independent Banks Headquartered in California by Assets ($ in billions) (2) BANC will become the 9th largest public independent California bank Over $3 billion in deposits in the Los Angeles MSA, the second most populous MSA in the coun
Slide 8: Acquired Deposit Mix at Very Attractive Deposit Premium
* Total Deposits: $4.0B Cost of Deposits: 0.69% Acquired Deposit Mix at Very Attractive Deposit Premium Total Deposits: $2.9B Cost of Deposits: 0.77% Total Deposits: $1.1B Cost of Deposits: 0.48% Pro-Forma Popular Community Bank CA Banc of California Provides liquidity to fund loan growth from exist
Slide 9: Acquired Loan Mix Provides Diversification
* Total Loans: $4.3B Yield: 5.0% Total Loans: $3.1B Yield: 5.1% Total Loans: $1.1B Yield: 4.8% Acquired Loan Mix Provides Diversification Acquired commercial portfolio increases balance sheet diversification Residential loans reduced from 40% to 30% Addition of C&I, CRE and Multifamily loans Over 95
Slide 10: High Quality Acquired Loans With Limited Credit Risk
* High Quality Acquired Loans With Limited Credit Risk Acquiring a portfolio of approximately $1.1bn in loans in markets that we know well and through products that we already offer Acquiring a clean portfolio No NPLs, No OREO, No consumer loans, No HELOCs with a combined LTV of more than 80% Credit
Slide 11: Low Risk Transaction
* Low Risk Transaction Equity commitments by Oaktree and Patriot Compliance/BSA indemnification and right to exclude Carve out of NPL, OREO, non-accrual, consumer and HELOC loans with CLTVs over 80% Seller responsible for employee severance and retention payments “Loss Share Provision” for credit lo
Slide 12: Fulfilling Our Plan for 2014
* $1.0+ billion Net Originations(1) Increased Consolidation and Integration of Operations, Systems, Analytics and Governance Robust, integrated analytical capabilities Enhanced enterprise risk and capital planning Build California’s Bank Strengthen California footprint Enhance suite of simple, fair
Slide 13: Continuation of Disciplined Growth
* Continuation of Disciplined Growth Goodwill/Intangibles to Asset Growth Since YE2010 Goodwill/Intangibles $1,726 $254 $53 Total Asset Growth $10,000 $3,000 $4,200 Goodwill/Intangibles to Asset Growth 17% 8% 1% (Dollars in millions) PACW includes the estimated effect of the CapitalSource acquisitio
Slide 14: Building California's Bank
* Continue our initiative to become California’s Bank for private businesses, entrepreneurs, and homeowners Strengthen our footprint in our home markets and enhance our capability to serve California’s fastest growing market segment Focus on diversification and the streamlining of our platform Prove
Slide 15: Questions
* Questions If you have additional questions, please contact us directly at: Banc of California, Inc. 18500 Von Karman Avenue, Suite 1100 Irvine, CA 92612 Richard Herrin Chief Administrative Officer and Corporate Secretary (855) 361-2262 IR@bancofcal.com
Slide 16: Banc of California: Building California's Bank
BANC OF CALIFORNIA Building California’s Bank
Slide 17: Appendix
Appendix
Slide 18: Branch locations and deposits
* Address City County Deposits ($ 000s) 7355 Greenleaf Avenue Whittier Los Angeles $96,000 1201 West Imperial Highway La Habra Orange $92,000 15175 Whittier Boulevard Whittier Los Angeles $89,000 3160 Colima Road Hacienda Heights Los Angeles $79,000 401 E. Whittier Boulevard La Habra Orange $66,000
Slide 19: 2013 Financial Performance
* 2013 Financial Performance Financial Summary Banc of California NA(1) Total Assets $3.6 billion Net Revenue $200 million Expenses ($165 million) Pre-Tax, Pre-Provision Profits $35 million Provisions $8 million Pre-Tax Profits $27 million Average Assets $2.8 billion ROAA (pre-tax) 1.0% Average Equi
Slide 20: Strong Management Team
* Strong Management Team Steven Sugarman President, CEO, and Director Led recap in 2010; responsible for building out the executive team Ron Nicolas Chief Financial Officer Over 30 years of senior financial executive leadership, with 20 years as a CFO Richard Herrin Chief Administrative Officer and
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