Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation at NYSE (May 2014)
35 slides from Banc Of California's conference presentation, May 29, 2014
Slide 1: Investor Presentation at NYSE
CALIFORNIA’S BANK Investor Presentation at NYSE BANC OF CALIFORNIA
Slide 2: Forward-looking Statements
Forward-looking Statements ‘When used in this presentation and in documents fied with or furnished tothe Secures and Exchange Commission (the “SEC"), oF other publi shareholder communiatons, on oa statements mage wth the approval of an authored executive office, the Words or phrases “beleve “wil” “s
Slide 3: Our Mission
NN Our Mission Banc of California is committed to building the top full-service bank serving California’s diverse private businesses, entrepreneurs, and homeowners, and ii. investing in and growing complementary businesses that enhance shareholder value and serve as a source of strength to the bank.
Slide 4: Management Team
Management Team Hugh Boyle Jetrey Seabold Ron Nicole Chief Risk Ofcer Chet Lending Oficer Chit Financial andchiet crest, mma Officer oineer t Founder of C3 Financial extensive Over 30 year of xperence inmortgage jor ancl experince inthe banking and eal estate executive financial services finance Tea
Slide 5: Building California's Bank
Building California’s Bank 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 BANC Assets (mm) $6,000 NYSE. $5,000 $4,000 $3,000 $
Slide 6: Franchise Overview
Franchise Overview Headquartered in Irvine, CA with over 1,300 full-time employees NYSE: BANC Pro Forma Franchise 83 locations in California with 38 branches in Los Angeles, Orange and San Diego counties? $5.0 billion in Assets $4.3 billion in Loans $4.0 billion in Deposits $3+ billion in Los Angele
Slide 7: A Top California Bank
A Top California Bank BANC will become the 9" largest public independent California bank Over $3 billion in deposits in the Los Angeles MSA, the second most populous MSA in the country #8 deposit market share among independent CA banks #8 loan market share among independent CA banks More diversified
Slide 8: Organization Structure
Organization Structure nc of California, Inc. eee = — on oo Joba crosenot fon Neos search Acard Metin pers)
Slide 9: Business Unit Overview
Business Unit Overview Financial Sey ogc tions Geng inatttl cot ction ang ‘Bank & Rehab Lending Private Bank \
Slide 10: Business Units
Business Units ‘Community Bank Banc Home Loans Gaylin Ander ay Private Bank Portfolio Lending Richard Smith Jerry Konzen & Judy Kesaris Commercial Bank Nick Zappia Construction & Rehab Lending Jim Fraser Warehouse Lending Zoila Price Financial Institutions Bank Francisco A. Turner CRE & Multi-Family
Slide 11: Community Bank
Community Bank Leader Gaylin Anderson, EVP Business Line Retail Branch Banking Branches Target Client Type BOC 16 Entrepreneur PCB 20 Private Business Owner ‘Total Branches 36 Home Owner Product Offering Staff at One Account 800 4 Preferred Account RM so Name Your CD Total BOC FTES Credit & Debit Ca
Slide 12: Private Bank
Leader Richard Smith, EVP Locations a Staff 28 800 0° RM. 16 Total FTE a4 2014 Growth Targets $200-250 million Deposits $225-275 million Originations Internal BU Partnerships Portfolio Residential Lending CRE and Multi-Family Lending Financial Institutions Bank Private Bank Business Line Private Ban
Slide 13: Commercial Bank
Commercial Bank Leader Nick Zappia, EVP Business Line Business Banking Locations a Target Client Type oui 6 Private Businesses BDO 2 Product Offering RM 5 rking Capital Lines of Credit Total FTE B Formula Based AR/Inventory Lines of Credit Conventional Owner Occupied CRE Commercial Equipment Loans 2
Slide 14: Financial Institutions Bank
Financial Institutions Bank Leader Francisco A. Turner, SVP Business Line Banking & Lending Locations a Staff 7 Target Client Type ae) 6 Fhe aves Ato TAS ei A ‘oker Dealers ns Fiduciaries Total FTE 15 Asset Managers, Hedge Funds Private Equity Firms 2014 Growth Targets $75-100 million Deposits Produ
Slide 15: Pro Forma Deposit Composition
Pro Forma Deposit Composition Provides liquidity to fund loan growth from existing BANC platform Focus on expanding product offerings to account holders and rate reductions Savings Increased DDA pro forma for Popular 26% Community Bank transaction Total Deposits: $4.08" Cost of Deposits: 0.69% ance
Slide 16: 2014 Net Deposit Growth Targets
2014 Net Deposit Growth Targets Organic deposit growth to approach $1 billion in 2014 F CALIFORNIA Community Bank Deposits: $500-600 million rivate Bank Deposits: $200-250 million Commercial Bank Deposits: $70-100 million Financial Institutions Bank Deposits: $75-100 million
Slide 17: Full-Service Lending Platform
Full-Service Lending Platform Private Business C&I Lending, Lines of Credit, ABL Facilities, Owner Occupied CRE, SBA Lending, Equipment Finance, Specialties, Acquisition Financing, ESOP Financing Entrepreneurs and Family Offices Lines of Credit, Investor CRE, Multi-Family, Rediscounting, Acquisition
Slide 18: Banc Home Loans
Leader Ted Ray, SVP Locations Staff 8D0 Total FTE 658 2014 Origination Targets $2.75-3 billion Internal BU Partnerships Construction & Rehab Lending Warehouse Lending. Residential Portfolio Lending Banking Division Banc Home Loans Business Line Residential Mortgage Lending Target Client Type Consume
Slide 19: Residential Portfolio Lending
Residential Portfolio Lending Judy Kesaris, SVP Locations 1 Business Line Residential Mortgage Loan Products staff 32 rs) 2 Target Client Type | Retail Branch Network ‘Total FTE 35 Relationship Managers Product Offering Portfolio Mortgages ~ Standard Doc Portfolio Mortgages ~ Alternate Doc Portfolio
Slide 20: Construction & Rehab Lending
Construction & Rehab Lending Leader Jim Fraser, SVP eon a Business Line Construction & Rehab Lending staff 2 rs) 20) Target Client Type ____ Builders/Developers pote oO Home Owners TPO Lenders 2014 Origination Targets $50-75 million Agency $65-85 million Portfolio Product Offering Agency Constructio
Slide 21: Warehouse Lending
Warehouse Lending Leader zoila Price, VP Business Line Locations FT Warehouse Lines of Credit staff 7 rs) ® Target Client Type RM a) independent Mortgage Banker Total FTE 7 Product Offering Residential Repurchase Lines of Credit Commercial Real Estate Repurchase Lines of Credit Commercial Equipment
Slide 22: Commercial Real Estate & Multi-Family Lending
Commercial Real Estate & Multi- Leader . . Tom Senske, SVP Family Lending Locations 1 Business Line investors CRE Lending Bau a2 Multi-Family Lending 800 2 &___ Target Client Type aR a Owner/Investor Developers 2014 origination Targets prodiekoneting $400-500 million investor CRE Loans Multi-Family/
Slide 23: SBA Lending
leader Heather Endresen, SVP Locations a Staff 7 800 3 RM. o Total FTE 10 2014 Origination Targets $50-75 million Internal BU Partnerships Banking Division SBA Lending Business Line Private Business & Commercial Real Estate Lending Target Client Type Private Business Owner Product Offering SBA 7(a)
Slide 24: Small Commercial & Equipment Finance
Leader David Normandin, SVP Locations a Staff 9 800 1 RM. 0 Total FTE 10 2014 Origination Targets $50-75 million Internal BU Partners! Warehouse Lending Banking Division Small Commercial & Equipment Finance Business Line Equipment Lease & Financing Small Commercial Lendi Target Client Type Private B
Slide 25: Loan Portfolio
Loan Portfolio Diversified balance sheet 17% Residential 30% In-footprint properties / businesses ‘Consume Other 5% betas Strong credit quality Attractive yield Total Deposits: $4.3B) Yield: 5.0% Note: Banc of Cafomia data as of 12/31/2013, Banco Popular North America dat {a} ro Ferma Popular Commun
Slide 26: 2014 Gross Loan Origination Volume Targets by Business Unit
2014 Gross Loan Origination Volume Targets by Business Unit Capability to originate $5 billion of loan volume in 2014 LIFORNIA pitcntne | Private Bank f Banc Home Loans | Loan Originations: $225-275 million (HFI) Loan Originations: $2.75-3.0 billion (HFS) Commercial Bank Portfolio Lending Loan Origi
Slide 27: Private Bank | Portfolio Lending
Private Bank ] Portfolio Lending J | [construction & Rehab lending } CRE & Mi iy Lending } —_ Multiple businesses. sei | QneBanc. Working together
Slide 28: The Palisades Group
leader Stephen Kirch, President Jack MacDowell, CIO Locations 2 Management 2 Portfolio Mgmt. 14 Total FTE 16 2014 Targets $5 billion Assets Under Advisement Palisades Group Seasoned Loans Non-performing Mortgage Loans Sub-performing Mortgage Loans Re-performing Mortgage Loans Newly Originated Loans
Slide 29: Shared Services Leaders
Leaders Chief Financial Officer, Ron Nicolas Chief Risk Officer, Hugh Boyle Chief Information Officer, Matt March General Counsel, John Grosvenor Chief Administrative Officer, Richard Her FTE Finance 45 Credit and Risk 90 Information Technology 50 Legal 7 Administration 108 Total 300 Shared Services
Slide 30: Target Net Interest Margins
Target Net Interest Margins Based on current market rates and conditions Lending Banking Residential 3.75-4.25 Private 0.25-0.5 CRE 4,50-5.00 Community 0.50- 1.0 Multi-family 3.75-4.25 FI Bank 025-05 ca 4,00-4.50 Commercial 025-05 SBA 5.50- 6.00 Equipment Finance 7.50-8.50 Target Overall Yield 4.50%
Slide 31: Banc of California Operating Segment Targets
Banc of California Operating Segment Targets Banc of California NA The Palisades Group LLC ts
Slide 32: Our Plan for 2014
Our Plan for 2014 a . 2014 Plan Net Loan Production Increased Consolidation and Integration of Operations, Systems, Analytics and evi Governance cas cre Robust, integrated analytical capabilities a w Enhanced enterprise risk and capital planning Build California’s Bank ares sttoe Strengthen Southern
Slide 33: Strong Capital Position
Strong Capital Position As of March 31, 2014 Actual Pro Format!) [Banc of California, N.A. Tier 1 leverage ratio 1.9% Tier 1 risk based capital ratio 13.5% 17.4% Total risk based capital ratio. 14.5% 18.5% Tier 1 leverage ratio 7.6% 10.1% Tier 1 risk based capital ratio 10.9% 14.8% Total risk based
Slide 34: Our Mission
NN Our Mission Banc of California is committed to building the top full-service bank serving California’s diverse private businesses, entrepreneurs, and homeowners, and ii. investing in and growing complementary businesses that enhance shareholder value and serve as a source of strength to the bank.
Slide 35: We Believe
WE BELIEVE We believe in financing entrepreneurs and businesses, expanding homeownership, and investing in communities We believe our clients deserve fair and simple banking and lending products. We believe in exceptional service. We believe our clients deserve access to decision-makers and manageme
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