EX-99.1 2 ppbi_8khbha-ex991.htm PPBI_8K_HBHA_SLIDES ppbi_8khbha-ex991.htm 
Howe Barnes/Hoefer Arnett Conference
August 13, 2007
Steven R. Gardner
President & CEO
WWW.PPBI.NET
 
 
  
2
Forward-Looking Comments
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, and (6) various legal, regulatory and litigation risks.
 
 
  
3
PPBI Overview
Southern California Community Bank 
Data as of June 30, 2007
•

            
Assets

            

            

            

            
$720 million 
•

            
Fully diluted shares

            

            
6,573,888
•

            
Fully diluted BV

            

            
$9.41
•

            
Annualized ROAA

            

            
0.59%
•

            
Annualized ROAE

            

            
7.09%
•

            
NASDAQ National Market     PPBI
 
 
  
4
PPBI Overview
•

            
Company History
•

            
Transitioning business model
•

            
Balance sheet strength
•

            
Favorable relative valuation
 
 
  
5
Today’s Agenda
Three Phase 
Strategic Business Plan
•

            
Phase 1 - Recapitalize
•

            
Phase 2 - Growth
•

            
Phase 3 - Commercial Banking Model
 
 
  
6
Phase 1
What We Inherited
Nationwide Subprime Lender
•

            
Assets

            
    

            
$552 million
•
Loans
        $434 million
•   Subprime loans                          75%
•

            
NPA’s

            

            
•

            
Employees/Offices

            
   334/10

            
    7.8%
•

            
Under capitalized
•

            
Subject to Regulatory Enforcement
•  Employees/Offices   334/10
 
 
  
7
Phase 1
Completed June 2002
•

            
Assets

            

            

            
$246 million
•

            
Loans

            

            

            

            
$135 million
•

            
Employees/Offices

            

            
 63/4
•

            
Substantial reduction in risk
•

            
Recapitalized - Private Placement
•

            
Note and warrant issued
•

            
Regulatory concerns resolved
 
 
  
8
Phase 2
•

            
Loan growth - Multi-family focus
•

            
Deposit growth - new products
•

            
Foundation set for transition
 
 
  
9
($ in millions)
$472
Loan Growth
 
 
  
10
Deposit Growth
($ in millions)
$289
 
 
  
11
Phase 2
Completed 2004
•

            
Assets

            

            

            
$543 million
•

            
Loans

            

            

            
$472 million
•

            
Secondary Offering     $26 million
•

            
Note retired
•

            
Stage set for transition
 
 
  
12
Phase 3
Transition Business Model
•

            
Diversify Loan Portfolio
 
 
  
13
($ in millions)
$252
* Includes: All Commercial, C&I, & Land loans.
Business and CRE Growth
 
 
  
14
Diversify Loan Portfolio
Multifamily
CRE Investor
CRE business
SBA
C&I

            

          
Other
 C&I
 
 
  
15
Year
Qtr
Loan Sales
Gain $
Gain %
2005
Q1
$ 8,119
$ 69
0.86%
 
Q2
$ 2,257
$ 25
1.12%
 
Q3
$ 21,630
$ 269
1.25%
 
Q4
$ 28,067
$ 227
0.81%
2006
Q1
$ 38,987
$ 393
1.01%
 
Q2
$ 39,955
$ 472
1.18%
 
Q3
$ 65,371
$ 1,462
2.24%
 
Q4
$ 61,438
$ 1,325
2.16%
2007
Q1
$ 63,999
$ 1,034
1.62%
 
Q2
$ 50,535
$ 1,015
2.01% 
(dollars in thousands)
Loan Sales
 
 
  
16
Phase 3
Transition Business Model
•

            
Diversify Loan Portfolio
•

            
Business Banking
 
 
  
17
Relationship Marketing
 
 
  
18
As of June 30, 2007
dollars in thousands
Deposit Mix
 
 
  
19
dollars in thousands
Deposit Mix
12/31/04
6/30/07
CD’s
Consumer
Business
 
 
  
20
Business Deposit Growth
$50,409
(dollars in thousands)
 
 
  
21
Relationship Growth
 
12/31/ 2004
6/30/2007
No. Relationships
63
285
Loans
$45,143,000
$317,934,000
Deposits
$1,194,000
$31,550,000
 
 
  
22
Phase 3
Transition Business Model
•

            
Diversify Loan Portfolio
•

            
Relationship Banking
•

            
Expansion of Branch Network
 
 
  
23
Los
Angeles
Orange
San Bernardino
San Diego
Riverside
Imperial
Kern
San Luis
Obispo
Santa
Barbara
Ventura
Existing Branch
Southern California Market
 
 
  
24
California Market
It’s the Economy
 
 
  
25
Source: U.S. Census Bureau
Top 10 States by Population
06/30/2006 Population
Projected Population Change 2006-2011
Rank
State
(#)
Rank
(#)
1
California
36,457,549
1
2,916,604
2
Texas
23,507,783
2
2,576,453
3
New York
19,306,183
11
415,083
4
Florida
18,089,888
3
2,337,241
5
Illinois
12,831,970
8
645,448
6
Pennsylvania
12,440,621
26
240,104
7
Ohio
11,478,006
20
249,073
8
Michigan
10,095,643
19
281,668
9
Georgia
9,363,941
4
1,287,542
10
North Carolina
8,856,505
6
722,691
 
California Market
 
 
  
26
Source: U.S. Census Bureau
Top 10 States by Household Income
Median Household Income
Projected Median Household Change
Rank
State
07/31/2006 ($)
Projected Growth
5 yr. Growth
*
Orange County
73,129
2
13,083
1
Connecticut
75,541
2
13,242
2
New Jersey
75,311
5
12,848
3
Maryland
74,879
4
13,089
4
Massachusetts
71,655
1
15,950
5
New Hampshire
67,354
3
13,174
6
Alaska
67,084
14
11,022
7
Hawaii
66,472
31
9,166
8
Virginia
65,174
6
12,031
9
Rhode Island
64,657
9
11,612
13
California
61,476
18
10,420
 
California Market
 
 
  
27
* 58 Counties in California
Source: State of California
Top 10 Counties by Population
Population
Projected Population Change
Rank
County
12/31/2006 (#)
Rank
2006 - 2011 (#)
1
Los Angeles
10,245,572
1
632,312
2
Orange
3,072,336
4
227,348
3
San Diego
3,066,820
5
166,236
4
San Bernardino
1,991,829
3
301,703
5
Riverside
1,953,330
2
377,576
6
Santa Clara
1,773,258
9
105,511
7
Alameda
1,501,303
11
99,131
8
Sacramento
1,385,607
6
150,806
9
Contra Costa
1,029,377
12
77,326
10
Fresno
899,514
8
115,092
 
California Market
 
 
  
28
 
Orange Cty.
So. Cal.
National
Business Growth
15.9%
15.7%
7.4%
Payroll Growth
42.3%
45.1%
28.1%
Employment Growth
17.0%
18.3%
7.5%
Unemployment Rate
3.8%
4.6%
5.0%
No. of Businesses
82,000
493,000
N/A
 
Source: U.S. Census Bureau, 2002 data compared to 1997
Economic Strength
 
 
  
29
Risk Management
Balance Sheet Strength
 
 
  
30
Multifamily
  
Loan to Value
62.76
Debt Coverage Ratio
1.25
Average Balance
$857,458
CRE Investor
  
Loan to Value
61.89
Debt Coverage Ratio
1.33
Average Balance
$1,202,960
CRE Business
  
Loan to Value
59.17
Average Balance
$808,948
 
Portfolio Characteristics
 
 
  
31
Delinquent Loans
to Total Assets *
Nationwide
California
PPBI **
Multi-Family
0.01%
0.03%
0.00%
Commercial RE
0.09%
0.15%
0.02%
Single Family
0. 48%
0.61%
0.06% 
Source:  FDIC as of 3/31/07
*    Includes past due 30-89 day, 90+ days and accruing, and non-accruals.
**  PPBI as of 6/30/07
Asset Quality
 
 
  
32
NPA to Total Assets
Asset Quality
 
 
  
33
 
Avg. LTM x PE
Ratio
Price to
Tangible BV
CA Banks*
15.43x
212%
PPBI Metrics*
9.41x
113%
 
*   As of 6/30/2007, Asset Size $500 Million to $1 Billion
Source: Carpenter & Company
Attractive Valuation
Valuation relative to California Peers:
 
 
  
34
PPBI Summary
•

            
Transition to Commercial Bank
•

            
Low Risk Balance Sheet
•

            
On-going Expansion
 
•

            
Excellent time to invest
 
 
  
Trust, Service, Commitment…That’s my Bank. 
WWW.PPBI.NET