Banc Of California, Inc. · NYSE:BANC
Banc Of California — First Pactrust Bancorp — Investor Presentation (April 2011)
30 slides from Banc Of California's investor presentation, Apr 27, 2011
Slide 1: April 2011
Exhibit 99.1 April 2011
Slide 2: Important Disclosures
Important Disclosures Forward-Looking Statements These materials contain various forward-looking statements that are based on assumptions and describe our future plans and strategies and our expectations. These forward- looking statements are generally identified by words such as “believe,” “expect,
Slide 3: Overview
Overview Community Roots Chartered by the U.S. Office of Thrift Supervision Ranking for Largest Community Bank Franchises in San Diego by Assets * Insured by the FDIC Founded in 1941 with 70 years of continuous MOST operations (public since 2002) NAME (CHARTER TYPE) 12/31/2007 12/31/2008 12/31/2009
Slide 4: CAMEL Summary - 3/31/11
CAMEL Summary -3/31/11 Key Metrics $13.94 Tangible Common Equity per share CAPITAL $135.7 million Tangible Common Equity 16.3% Tangible Common Equity (Bank) 16.0% Tier 1 Risk-Based (Bank) 17.3% Total Risk-Based (Bank) $157.3 million market cap $835.0 million of assets Positioned for growth ASSETS $6
Slide 5: Growth Strategy
Growth Strategy 1. Organic Growth 2. Traditional M&A 3. FDIC-Based M&A Increase market penetration within the Selectively explore traditional Pursue strategic transactions with FDIC Bank’s primary footprint and expand into acquisitions assistance neighboring regions — Focus on smaller banks (i.e., $
Slide 6: Keys to Success
Keys to Success Scalable Management Business Team Mission Statement: To be the premier community bank in Southern California serving the needs of growing families, high net Strong worth individuals, Access to Balance professionals, small to mid sized businesses and their Capital Sheet owners Market
Slide 7: Management Team
Management Team Officer Position Experience Greg Mitchell President & CEO Transformed a thrift with six branches and $700 First Pac Trust Bancorp million in assets to what became California National Bank. 68 branches and $7.7 billion in Recent Additions to assets Management Team include Investment b
Slide 8: Access to Capital
Access to Capital Bancorp maintains 16.3% tangible equity to total assets Pacific Trust Bank’s equity capitalization exceed “well- capitalized”levels by $40 million —Could support more than $450+ million in added CRE assets without exceeding concentration limits Example Opportunity —Eligible to appl
Slide 9: Market Opportunity
Market Opportunity Southern California Banks with Assets < $1.0 Billion* Service Area Number Assets ($mm) Assets/Bank ($mm) Los Angeles Service Areas 88 $24,555,905 $279,044 San Diego/Orange County Service Areas 58 $14,865,761 $256,306 Grand Total 146 $39,421,666 $270,011 Belief Rationale 1. Banks w
Slide 10: Strong Balance Sheet
Strong Balance Sheet Assets Liabilities $102 million of cash and securities including fed funds, $634 million in deposits agencies and RMBS/Re-REMICs — No brokered deposits — Marked to market accounting based on independent — Green accounts tie deposit accounts to borrowers valuations provided by Re
Slide 11: Scalable Business
Scalable Business Belief Rationale 1. Community banks with strong and scalable balance Numerous failures of both community and regional sheets, solid capital levels with access to capital markets, banks in Southern California have left a massive void in and proven management teams in achieving organ
Slide 12: Market Beginning to Recognize Execution
Market Beginning to Recognize Execution Relative Performance Price $16.17 As of 04/26/11 Yield / Div. 2.60% / $0.42 Market Cap $157.3M Avg Volume (3M) 29,657 Tangible Book Value $136.1M Volatility 28% Shares Outstanding 9,729,066 Beta 0.50 Analyst Date Initiated Rating Price Target Baird 10/15/2010
Slide 13: Market Valuation of Peers
Market Valuation of Peers Dividend Paying Banks, < $2.5b in Assets, Raised > $30m since 1/2009 Price / Company Name Ticker City State Stock Price ($) TBV ($) TBV Bank of Commerce Holdings BOCH Redding CA 4.40 4.75 88.5 CNB Financial Corporation CCNE Clearfield PA 13.68 8.31 164.6 FPTB stock price wo
Slide 14: Delivering Strong Earnings During Growth Phase
Delivering Strong Earnings During Growth Phase $2.0 million in core earnings in the first quarter of 2011 — Historically strong core earnings have enabled First PacTrust Bancorp to charge-off or reserve for credit losses while providing cumulative net earnings for the period 2008-2011 $0.42 (annuali
Slide 15: Business Plan
Business Plan 2011 Goals 5 Year Objectives Grow core earnings by prudently 4% + NIM deploying capital into CRE and C&I lending Low 50s efficiency ratio Open 3-5 de novo branches in 1.2% ROAA Southern California Reach critical mass (~$1 billion Complete $200 $- 500 million of assets) in each of Los A
Slide 16: Why Invest in First PacTrust Bancorp?
Why Invest in First PacTrust Bancorp? First PacTrust is a profitable bank with a strong dividend First PacTrust is well-positioned to be a lead bank consolidator in Southern California — With a scalable balance sheet, access to fresh capital, First PacTrust Bancorp is uniquely positioned to benefit
Slide 17: Appendix
Appendix
Slide 18: Franchise Map and Branches
Franchise Map and Branches Temecula Branch Riverside Branch Rancho Bernardo Branch El Cajon Branch Balboa Branch Chula Vista Main Branch Mini Branches Chula Vista Admin Center Chula Vista Riverside 17
Slide 19: Pacific Trust Bank Loan Composition
Pacific Trust Bank Loan Composition Pacific Trust Bank’s loan portfolio consists predominantly of 1-4 family loans making up 83% of the Bank’s gross loans. Loan Breakdown as of 3/31/11 1-4 Unit Residential Balance 1st TD $341,421,568 1st TD “Green”Accts $221,168,034 2nd TD $657,548 Total $562,589,60
Slide 20: Pacific Trust Bank Location of SFR Loans
Pacific Trust Bank Location of SFR Loans A large concentration of Bank SFR loans are secured by collateral located in highly desirable beach communities , whereas the majority of foreclosure activity in San Diego County has taken place in southern or eastern parts of the County away from the coast.
Slide 21: Bank's Primary Market Area Recovering
Bank’s Primary Market Area Recovering FirstPacTrust’s primarymarketareaof SanDiegohasexhibitedstrongrecoveryratesin homeprices. SanDiegoCountyHomePrices(1) 180% 160% San Diego Market 140% 2009: 106% Leading Southern 2003: 101% California recovery 120% Home price increase 2010: 100% 9%since 2009 as 1
Slide 22: Non-Performing Asset Overview - Pacific Trust Bank
Non-Performing Asset Overview- PACIFIC TRUST BANK* PacificTrustBankhas$11.9 millionof loanlossreserveswhichprovidestrongcoverageagainst $26 million in Core NPLs The $2.5 million in REOs consist of 6 properties. * (1) Numbers are Bank level gross of SVA (2) An additional $8.3M in NPA held at FPTB inc
Slide 23: Delinquent Mortgages - Pacific Trust Bank
Delinquent Mortgages- PACIFIC TRUST BANK* Pacific Trust Bank’s 60-89 Day DQs declined for the third consecutive quarter while 90+ Day DQs increased due to delayed restructurings of a number of loans * *Non-performing loans increased by $7.7 million, to $27.6 million, or 3.31% of total assets during
Slide 24: Classified Loans - Pacific Trust Bank
Classified Loans- PACIFIC TRUST BANK Pacific Trust Bank’s classified loans decreased in 3Q10 and 4Q10 from its peak in 2Q10. Total classified loans totaled $72.3MM at March 31, 2011 compared to $80.2M in 4Q10. Reduction reflects to transfer of 2 loans totaling $4.4 million to Bancorp. Loans rated Su
Slide 25: Summary of Classified Loans - Pacific Trust Bank
Summary of Classified Loans-PACIFIC TRUST BANK Most of the Bank’s Classified Loans are performing and earning interest income. Reason for SM # of % of SM Reason for Sub Classification Loans Balance Loans Classification # of Loans Balance % of Sub 60 Days DQ 9 $5,813,499 18% Non-Performing 35 $25,965
Slide 26: TDR - Pacific Trust Bank
TDR- PACIFIC TRUST BANK Performing TDR are well seasoned with solid yields Weighted Payments # of Loans Book Value Avg Loan Size Avg Int Rate 1 Payment 2 $1,447,574 $723,787 3.03% 25 TDRs valued at $14.3 million are performing and earning 2 Payments 0 $0 N/A N/A interest income 3 Payments 0 $0 N/A N
Slide 27: HELOC - Pacific Trust Bank
HELOC- PACIFIC TRUST BANK Most of our “HELOCS” are FIRST TRUST DEED “GREEN” ACCOUNTS CallReportdatashows$214 millionof “HELOCS”whichareprimarily 1st TD mortgages to high net worth borrowers. 1st TD HELOCs have: — Average FICO score at origination of 743 — Weighted average original LTV ratio of 56% —
Slide 28: OREOs - Bancorp and Bank
OREOs- BANCORP AND BANK As of 3/31/2011 Pacific Trust Bank holds 6 OREO assets (all single- family homes) with a net value of $2.5 million Bancorp holds 2 OREO assets including 1 land loan and 1 SFR with an aggregate value of $4.0 million All OREO is carried at levels no more than 91% of the most re
Slide 29: Non-GAAP Financial Information
Non-GAAP Financial Information This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures include tangible common equity, tangible common equity
Slide 30: Non-GAAP Financial Information (Continued)
Non-GAAP Financial Information (Continued) The following table presents a reconciliation of core earnings to net income (dollars in thousands): 3/31/11 Net income $ 693 Add: Change of Control expense (net of tax) 541 Add: Non-core problem loan expenses (net of tax) 745 Core earnings 1,979 29
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