Banc Of California, Inc. · NYSE:BANC
Banc Of California — First Pactrust Bancorp — Investor Presentation (February 2011)
31 slides from Banc Of California's investor presentation, Feb 9, 2011
Slide 1: First PacTrust Bancorp Inc. February 2011
FIRST PACTRUST BANCORP, INC? First PacTrust Bancorp Inc. February 2011
Slide 2: Important Disclosures
Important Disclosures A <- Sac FIRST PACTRUST BANCORP, ING: 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
Slide 3: Overview: Community Roots
we Overview FIRST PACTRUST BANCORP, INC: 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 MosT . Founded in 1941 with 70 years of continuous operations NAME (CHARTER TYPE) 12/31/2007 12/31/
Slide 4: CAMEL Summary - 12/31/10 Key Metrics
a FIRST PACTRUST BANCORP, INC: CAPITAL ASSETS MANAGEMENT LIQUIDITY CAMEL Summary -12/31/10 Key Metrics $13.98 Tangible Common Equity per share $136.0 million Tangible Common Equity 15.8% Tangible Common Equity 414.986Tler 1 Risk-Based 16.1796 Total Risk-Based $140 million market cap $861.6 million o
Slide 5: Growth Strategy
Growth Strategy > ae FIRST PACTRUST 1. Organic Growth 2. Traditional M&A 3. FDIC-Based M&A » — Increase market penetration within Selectively explore traditional . Pursue strategic transactions the Bank's primary footprint and acquisitions with FDIC assistance expand into nei oring regions P ce ie =
Slide 6: Keys to Success
Keys to Success Management Team Scalable 2 ion Statement: Access to Capital To be considered the premier communi in Southern California Business individuals, professionals, small to mid sized businesses and their owners Strong Balance Market Sheet Opportunity
Slide 7: Management Team
> ae FIRST PACTRUST Officer Po: jon Exper Management Team nce Greg Mitchell Richard Herrin Matt Bonaccorso Hans Ganz President & CEO First Pac Trust Bancorp Chief Administrative Officer Chief Credit Officer President & CEO, Pacific Trust Bank Transformed a thrift with six branches and $700 ‘million
Slide 8: Access to Capital
Access to Capital > ae FIRST PACTRUST Bancorp maintains 15.8% tangible equity to total assets * Pacific Trust Bank's equity capitalization exceed “well- capitalized” levels by $40 million © Could support $450+ million in additional assets igible to apply for up to $43 million of additional Tier 1 ca
Slide 9: Market Opportunity
Market Opportunity Me FIRST PACTRUST i n ero Service Area Number | Assets ($mm) | Assets/Bank ($mm) Om Los Angeles Service Areas 88 $24,555,905 $273,044 San Diego/Orange County Service Areas 58 $14,865,761 $256,306 Belief Rationale | Banks with less than $500 million to $1 billion in assets in South
Slide 10: Strong Balance Sheet
Strong Balance Sheet (a) oO OO ao Assets Liabilities © $124 million of cash and securities including fed funds, agencies © $646 millionin deposits and RMBS/Re-REMICS = No brokered deposits * Marked to market accounting based on independent * Green accounts tie depositaccounts to borrowers ‘valuation
Slide 11: Belief: Scalable Business
> ae FIRST PACTRUST Belief Scalable Business (a) |Community banks with strang and scalable balance sheets, solid capital levels with access ta capital markets, and proven management teams in achieving organic and acquisitive growth will thrive in the current economic and regulatory environment and s
Slide 12: Market Beginning to Recognize Execution
we Market Beginning to Recognize Execution sen FIRST PACTRUST Relative Performance First Pactust Bancorp, ne. rrr wow sara Price $14,435 4s of 02/08/11 “8 Yield / Div. 2.77% f $0.40 os me Market Cap $140.0M AvgVolume (3M) 40,473 as Tangible Book Value $136.1M Volatility 34% 08 Shares Outstanding «9,
Slide 13: Market Valuation of Peers
Market Valuation of Peers > ae FIRST PACTRUST idend Paying Banks, < $2.5h in Assets, Raised > $30m since 1/2009 Bank of Commerce Holdings BOCH Redding cA 410 4.75 86.3 0.04 275 CNB Financial Corporation CCNE Clearfield PA 1400 808 173.4 0.20 17.8 First of Longlsland Corporation © FLIC —GlenHead =NY
Slide 14: Delivering Strong Earnings During Growth Phase
wé Delivering Strong Earnings During Growth Phase FIRST PACTRUST "= $13 million core earnings in 2010 ® Strong core earnings have enabled First PacTrust Bancorp to charge-off or reserve for credit losses while maintaining positive net earnings through 2008-2010 = $0.40 (annualized)/ share cash divid
Slide 15: Business Plan
Bie Business Plan FIRST PACTRUST BANCORP, INC: = Grow core earnings by = 496 +NIM prudently deploying capital into CRE and C&l lending = Low 50s efficiency ratio = Open 3-5 de novo branches in = 1.2% ROAA Southern California = Reach critical mass (“$1 = Complete $200 - $500 million billion assets) i
Slide 16: Why Invest in First PacTrust Bancorp?
Why Invest in First PacTrust Bancorp? a FIRST PACTRUST © 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
Slide 17: Appendix
APPENDIX
Slide 18: Branch Locations
om Temecula Branch Riverside Branch Rancho Bernardo Branch EI Cajon Branch, Chula Vista Main Branch, Chula Vista Admin Certer
Slide 19: Pacific Trust Bank Loan Composition
Pacific Trust Bank Loan Composition SS Se FIRST PACTRUST BANCORP, INC: Pacific Trust Bank’s loan portfolio consists predominantly of 1-4 family loans making up 82% of the Bank's gross foans. Loan Breakdown as of 12/31/10 Consumer 1-4 Unit Residential 3% -4UnitResi 11D $364,344,117 ‘Non-Residential s
Slide 20: Pacific Trust Bank Location of SFR Loans
> Pacific Trust Bank Location of SFR Loans FIRST PACTRUST Many of Pacific Trust Bank's SFR loans are secured by properties in highly desirable areas such as beach communities with strong median home values. Below are the 10 areas where the Bank's SFR Joans are most concentrated. WA Average TV Balanc
Slide 21: Bank's Primary Market Area Recovering
Bank’s Primary Market Area Recovering > ae FIRST PACTRUST First PacTrust’s primary market area of San Diego has exhibited strong recovery rates in home prices. San Diego Market senbeascsum noma pasdl® [aaa] © Leading Southern rr California recavery = 3° highest home price 140% 2008: 11% increase 14%
Slide 22: Non-Performing Asset Overview
ae FIRST PACTRUST Non-Performing Asset Overview Pacific Trust Bank has $14.6 million of loan loss reserves which provide strong coverage against $21 million on Core NPLs The $6.6 million in REOs consist of 6 properties. $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 (2) Gr
Slide 23: Non-Performing Loans (NPLs) as of 12/31/2010
wé Non-Performing Loans (NPLs) as of 12/31/2010 FIRST PACTRUST BANCORP, INC: Non-Performing Loans (NPLs) # of Average Loan Loan Type Loans Book Value Size 1-4 Family Subtotal 21 $11,869,878 $565 /252, | > jacille Trust Bank: has 24 loans thatare Y sBes , currently non-performing for a total balance
Slide 24: Delinquent Mortgages
Bie Delinquent Mortgages. FIRST PACTRUST BANCORP, INC: Pacific Trust Bank's delinquent mortgages have declined over the past two quarters from their peak in 2Q 2010. $45,000,000 $40,000,000 $8,849,494 $35,000,000 $30,000,000 $6,110,489) $9,946,984} $25,000,000 ™60-89 Day DQ = 90+ Day DO Speen [5ss.2
Slide 25: Classified Loans
ae FIRST PACTRUST Classified Loans Pacific Trust Bank's classified loans decreased in 3Q10 and 4Q10 from its peak in 2Q10. $10,000,000 $100,000,000 $90,000,000 [$52.006.335 $80,000,000 [$21,179.47 $70,000,000 [$20,223,432] $60,000,000 [$37.961.750 [$38,721,020] $50,000,000 568,161,966 [$55,618,012]
Slide 26: SFR Charge-Offs
Bie SFR Charge-Offs FIRST PACTRUST BANCORP, INC: Charge-offs to Pacific Trust Bank’s SFR portfolio have decreased for the second consecutive quarter. $2,500,000 A82-169.584 \ $2,000,000 $1,500,000 siioatase $1,192,933 $1,000,000 $934,440 $464,387 $500,000 $63,500 $411,342 $542,091 50 $239,375 Maas $
Slide 27: Troubled Debt Restructurings (TDRs) as of 12/31/2010
Bie Troubled Debt Restructurings (TDRs) as of 12/31/2010 Solid yields with low default rates FIRST PACTRUST : BANCORP, INC: #of Book Value | AvgLoan Size | Weighted Loans Avg Int Rate © = 27 TORs valued at $21.6 4 Payment $10,316,136 $2,063.27 6.20% . 5 million are performing 2 Payments a $0 NA NA a
Slide 28: HELOC
we HELOC Sen Most of our “HELOCS” are FIRST TRUST DEED “GREEN” ACCOUNTS FIRST PACTRUST BANCORP, ING? 28 Gall Report data shows $214 million of ‘HELOCS” which are primarily 1* TD mortgages to high net worth jorrowers. . 1° TD HELOCs have: + Average FICO score at origination of 742 + Weighted average
Slide 29: OREOs as of 12/31/2010
Bie OREOs as of 12/31/2010 FIRST PACTRUST BANCORP, INC: Pacific Trust Bank holds 6 OREO assets with a net value of $6.6 million = 5 REO assets are for SFR (all have been appraised in 2010) = 4SFR are located in San Diego County and 1 is located Rancho Santa Fe = 2SFRare currently in escrow to be sol
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information a FIRST PACTRUST 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 comman equity, tangi
Slide 31: Non-GAAP Financial Information (Cont.)
Bie Non-GAAP Financial Information (Cont.) FIRST PACTRUST BANCORP, INC: The following table presents a reconciliation of core earnings to net income (dollars in thousands) 12810 Pre-tax earnings $ 3,881 Add Provisions 8.957 Add: Private placement associated expenses 3,109 Less: Gain on sale of secur
First Pactrust Bancorp — Investor Presentation (February 2011) on 6ix