EX-99.1 2 e19849ex99_1.htm FINANCIAL STATEMENT


 
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Forward Looking Statements

This presentation may include forward-looking statements. The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks: (1) changes in the performance of the financial markets, (2) changes in the demand for and market acceptance of the Company’s products and services, (3) changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive projects and pricing, (4) the effect of the Company’s policies, (5) the continued availability of adequate funding sources, (6) and various legal, regulatory and litigation risks.


 
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PPBI Overview

Southern California Community Bank
as of 9/30/04

 

• NASDAQ National Market   PPBI  
• Assets   $488 million  
• Fully diluted shares   6,652,867  
• Fully diluted BV per share   $6.89  
• Annualized ROAA   1.85  
• Annualized ROAE   17.92  

 
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PPBI Overview
• Community bank business model - Thrift Charter
• Income Property lending focus
• New management repositioned the Company
• Exceptional growth prospects being realized

 
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Comparison 9/30/03 - 9/30/04


Exceptional growth realized

• Net loans increased 111% - $192M to $405M
• Total Assets increased 90% - $257M to $488M
• Pre-tax income growth of 594% - $735k to $5.1M
• Net Income growth of 215% - $1.3M to $4.1M

 
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Experienced Management Team

Name (Age) Position Years
Experience
Steven Gardner (43)   President & Chief Executive Officer   21 
John Shindler (49)   Chief Financial Officer   27 
Eddie Wilcox (37)   Chief Lending Officer   16 
Bruce Larson (47)   Chief Credit Officer   21 
Kathi Duncan (47)   Director of Operations and Compliance   24 
Jim Sanchez (41)   Director of Information Technology   20 
Robert Johnson (60)   Director of Internal Audit   32 

 
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Growth and Operating Strategies

Lending:

• Maturing to full banking relationship
• Increase Commercial Real Estate Loans
• Continue to grow market share of MFR loans
• Commercial Business Lending

Deposit:

• Core deposit growth through relationship banking
• Opening of additional branches
• Business banking relationships

 
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Southern California Marketplace

• Income Property Loan Markets
• Multi-family: $17.5B, Commercial Real Estate: $34.8B - 12 months ending 8/31/04
• Unemployment
• Los Angeles: 6.2%, Orange: 3.2%, San Diego: 3.8%, San Bernardino: 6.0%
• Vacancy Rates
• Los Angeles: 2.9%, Orange: 3.9%, San Diego: 3.5%, San Bernardino: 3.7%
• Median Home Prices
• Los Angeles: $459.7, Orange: $633.3, San Diego: $573.1, San Bernardino: $306.2
• Median Income
• Los Angeles: $53.5, Orange: $74.2, San Diego: $63.4, San Bernardino: $54.3

 
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Lending Strategy

• Relationship focused
• Leverage MFR success to grow CRE
• MFR market share expansion
• Business Lending introduced in Q4 2004
• Asset quality directs our lending activities

 
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Loan Portfolio Composition
(dollars in thousands)



 
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Income Property
(dollars in thousands)


 
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Loan Portfolio Characteristics

As of September 30, 2004

 
Multifamily      
  Average Loan to Value   63.5%  
  Average Debt Coverage Ratio   1.33:1  
  Average Balance   $    687,000  
Commercial Real Estate  
  Average Loan to Value   60.9%  
  Average Debt Coverage Ratio   1.49:1  
  Average Balance   $    922,000  

 
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Improving Asset Quality Trends:
NPAs to Total Assets

 
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Branch Banking Strategy

Grow core deposit base

• Reorganized in Q4 2004
• Relationship banking focus
• Opening of additional branches
• Enhanced product offerings
• Business banking relationship

 
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Deposit Portfolio Composition
(dollars in thousands)

      


 
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Deposit Transaction Accounts
(dollars in thousands)


 
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Financial Performance


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Balance Sheet
(in thousands)

  As of
 
    9/30/2004   12/31/2003   12/31/2002   12/31/2001  
   
 
 
 
 
Assets:          
  Cash and Investments   69,656   44,715   61,833   42,365  
  Loans, net   405,853   247,600   158,231   187,176  
  Participation Contract   1,105   5,977   4,869   4,428  
  Other Assets   11,531   11,076   13,345   9,698  
   
 
 
 
 
    Total Assets   $ 488,145   $ 309,368   $ 238,278   $ 243,667  
   
 
 
 
 
Liabilities:                  
  Deposits   278,535   221,447   191,170   232,160  
  FHLB Advances and other borrowings   151,900   48,600   20,000   —  
  Notes Payable   —   —   11,440   —  
  Subordinated Debt   10,310   —   1,500   1,500  
  Other Liabilities   4,622   1,989   2,545   2,359  
   
 
 
 
 
    Total Liabilities   445,367   272,036   226,655   236,019  
   
 
 
 
 
Stockholders’ Equity                  
  Common Stock   53   53   13   13  
  Additional Paid-in Capital   67,564   67,546   43,328   42,628  
  Accumulated Deficit   (24,596 ) (30,021 ) (32,086 ) (34,964 )
  Accumulated Other Comprehensive Income   (243 ) (246 ) 368   (29 )
   
 
 
 
 
    Total Stockholders’ Equity   42,778   37,332   11,623   7,648  
   
 
 
 
 
  Total Liabilities and Stockholders’ Equity   $ 488,145   $ 309,368   $ 238,278   $ 243,667  
   
 
 
 
 
  Fully Diluted Book Value per share   $       6.89   $       5.98   $       4.98   $       5.73  

 
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Income Statement
(dollars in thousands)


    9 Months
Ended
  12 Months Ended
 
    9/30/2004
  12/31/2003
  12/31/2002
  12/31/2001
 
                   
Interest Income          
  Loans   $13,820   $ 12,366   $ 12,345   $ 21,973  
  Other Int. Earning Assets   3,072   4,882   6,527   2,469  
   
 
 
 
 
    Total Interest Income   16,892   17,248   18,872   24,442  
   
 
 
 
 
Interest Expense                  
  Deposits   3,948   4,954   6,314   14,989  
  FHLB Advances   1,116   541   535   992  
  Notes and Debentures   218   2,162   2,061   210  
   
 
 
 
 
    Total Interest Expense   5,282   7,657   8,910   16,191  
   
 
 
 
 
Net Int. Inc. Before Provision   11,610   9,591   9,962   8,251  
   
 
 
 
 
Provision for Loan Losses   460   655   1,133   3,313  
Non Interest Income   3,244   2,315   1,869   3,992  
Non Interest Expense   8,544   9,783   10,165   14,340  
   
 
 
 
 
Income Before Taxes   5,850   1,468   533   (5,410 )
  Inc. Tax Provision/(Benefit)   425   (597 ) (2,345 ) 642  
   
 
 
 
 
    Net Income   $  5,425   $   2,065   $   2,878   $(6,052 )
   
 
 
 
 
Diluted Earnings/(Loss) p er Share   $    0.82   $     0.61   $     1.16   $   (4.54 )

 
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PPBI Overview

Southern California Community Bank

• Exceptional growth being realized
• Income Property lending focus
• Investing for the future

 
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