EX-99.1 2 ppbi_8knov2007presex991.htm PPBI 8-K NOVEMBER 2007 INVESTOR PRESENTATION SLIDES EXHIBIT ppbi_8knov2007presex991.htm 
Investor Presentation

Third Quarter 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
Southern California Community Bank
Data as of September 30, 2007
NASDAQ National Market
PPBI
Assets
$779 million
Fully diluted shares
6,554,247
Fully diluted Book Value
$9.56
 
PPBI Overview
 
 
  
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
What We Inherited
Nationwide Subprime Lender
•
Assets
$552 million
•
Loans
$434 million
•
Subprime loans
75%
•
NPA’s
7.8%
•
Employees/Offices
334/10
•
Under capitalized
•
Subject to Regulatory Enforcement
 
Phase 1
 
 
  
7
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
 
Phase 1
 
 
  
8
Phase 2
•

            
Loan growth - Multi-family focus
•

            
Deposit products and services
 
 
  
9
($ in millions)
$472
Loan Growth
 
 
  
10
Deposit Growth
($ in millions)
$289
 
 
  
11
Completed 2004
•
Assets
$543 million
•
Loans
$472 million
•
Secondary Offering
$26 million
•
Note retired
•
Stage set for transition
 
Phase 2
 
 
  
12
Phase 3
Transition Business Model
•

            
Diversify Loan Portfolio
•

            
Relationship Banking
•

            
Expansion of Branch Network
 
 
  
13
($ in millions)
$260
Business and CRE Growth
 
 
  
14
Diversify Loan Portfolio
Multifamily
CRE Investor
CRE business
C&I
SBA
Other
 
 
  
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
$ 1,016
2.01%
 
Q3
$ 70,095
$ 970
1.37% 
(dollars in thousands)
Loan Sales
 
 
  
16
Phase 3
Transition Business Model
•

            
Diversify Loan Portfolio
•

            
Relationship Banking
•

            
Expansion of Branch Network
 
 
  
17
Relationship Marketing
 
 
  
18
As of September 30, 2007 dollars in thousands, excludes broker deposits
Deposit Mix
 
 
  
19
Deposit Mix
12/31/04
9/30/07
CD’s
Transaction
Consumer
Business
 
 
  
20
Business Account Growth
1,317
 
 
  
21
Business Deposit Growth
$45,594
(dollars in thousands)
 
 
  
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
Risk Management
Balance Sheet Strength
 
 
  
25
Multifamily
  
Loan to Value
64.11
Debt Coverage Ratio
1.20
Average Balance
$972,234
   
CRE Investor
  
Loan to Value
61.96
Debt Coverage Ratio
1.31
Average Balance
$1,158,222
   
CRE Business
  
Loan to Value
61.59
Average Balance
$997,510
 
Portfolio Characteristics
 
 
  
26
NPA to Total Assets
Asset Quality
 
 
  
27
California Market
It’s the Economy
 
 
  
28
Source: U.S. Census Bureau
Top 10 States by Population
06/30/2006 Population
Projected Population Change 2006-2015
Rank
State
(#)
Rank
(#)
1
California
37,236,000
1
6,932,000
2
Texas
23,786,000
2
2,793,000
3
New York
19,532,000
6
666,000
4
Florida
18,478,000
3
2,218,000
5
Illinois
13,092,000
10
542,000
6
Pennsylvania
12,590,000
31
168,000
7
Ohio
11,627,000
32
160,000
8
Michigan
10,317,000
33
154,000
9
Georgia
9,553,000
5
787,000
10
North Carolina
8,905,000
7
613,000
 
California Market
 
 
  
29
Source: SNL
Top 10 States by Household Income
Median Household Income
Projected Median Household Change
Rank
State
2007 ($)
Projected Growth
5 yr. Growth
*
Orange County
75,660
1
13,218
1
New Jersey
69,831
5
11,438
2
Connecticut
68,430
2
12,855
3
Massachusetts
66,046
1
13,196
4
Maryland
65,627
9
11,117
5
Alaska
63,746
8
11,143
6
New Hampshire
62,216
14
10,577
7
Minnesota
61,307
4
11,851
8
Colorado
60,976
3
11,884
9
California
60,268
16
9,998
10
Delaware
60,094
19
9,507
 
California Market
 
 
  
30
* 58 Counties in California
Source: SNL
Top 10 Counties by Population
Population
Projected Population Change
Rank
County
2007 (#)
Rank
2007 - 2012 (#)
1
Los Angeles
10,110,975
2
342,762
2
Orange
3,081,783
5
137,448
3
San Diego
3,064,142
6
128,081
4
Riverside
2,100,707
1
452,912
5
San Bernardino
2,051,757
3
283,963
6
Santa Clara
1,771,177
11
63,939
7
Alameda
1,500,793
17
36,169
8
Sacramento
1,421,408
4
140,435
9
Contra Costa
1,047,327
12
59,593
10
Fresno
915,824
9
92,040
 
California Market
 
 
  
31
 
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
 
 
  
32
 
P/EPS
P/TBV
CA Banks*
16.4x
211%
PPBI Metrics*
13.1x
110%
 
*   As of 10/26/07
Source: SNL
Attractive Valuation
Valuation relative to California Peers:
 
 
  
33
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