EX-99.1 2 ppbi_8k-2009q3invpresex991.htm PPBI 8-K Q3 INVESTOR PRESENTATION SLIDES ppbi_8k-2009q3invpresex991.htm
 


www.ppbi.com
Investor Presentation
Investor Presentation
December 10, 2009
December 10, 2009
Steven R. Gardner
Steven R. Gardner
President & CEO
President & CEO
 
 

 
www.ppbi.com
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: changes in the performance
of the financial markets; changes in the demand for and market acceptance of the
Company's products and services; changes in general economic conditions including
interest rates, presence of competitors with greater financial resources, and the impact
of competitive projects and pricing; the effect of the Company's policies; the
continued availability of adequate funding sources; and various legal, regulatory and
litigation risks; as well as additional risks factors discussed in the reports filed by the
Company with the SEC, which are available on its website at www.sec.gov.  Except as
required by law, the Company undertakes no obligation to update any information.
 
 

 
www.ppbi.com
  In 1983, Pacific Premier Bank (the “Bank”)
 was founded and later expanded into
 subprime lending
  By 1999, growing losses prompted the Bank
 to refocus its strategy
  In 2000, the current management team
 took over and developed a three phase
 strategic plan to transform the Bank from
 a nationwide subprime lender into a
 traditional Community Bank
 Phase 1 - Recapitalize Pacific Premier
  Issued $12 million note and warrants
  Lowered the risk profile of the Bank
 Phase 2 - Return to Profitability
  Grew the balance sheet
  Raised $27 million via secondary offering
  Retired $12 million note
  Sustained profitability
 Phase 3 - Transition into Commercial Bank
  Recruit experienced bankers
  Expand market footprint
  Offer new products and services
  Diversify loan and deposit portfolios
 
 

 
www.ppbi.com
1 Branch in San
Bernardino
County
5 Branches in
Orange County
Headquarters:
Costa Mesa, California
Total Assets:
$847.9 million
Net Loans:
$576.5 million
Total Deposits:
$606.4 million
Regional Focus:
Southern California
Business Focus:
Small and middle market
businesses
Branches:
6 locations
As of September 30, 2009
PPBI Branch
 
 

 
www.ppbi.com
 
At or For the Nine
Months Ended
At or For the Year Ended December 31,
dollars in thousands, except per share data
September 30, 2009
 2008
 2007
 2006
Balance Sheet
 
Total assets
$ 847,865
$ 739,956
$ 763,420
$ 730,874
Total loans
584,614
 629,019
 627,461
 608,642
Total deposits
 606,382
 457,128
 386,735
 339,449
Total borrowings
176,810
220,210
308,275
326,801
Fully diluted book value per share*
$6.77
$9.60
$9.69
$9.16
 
 
 
 
 
Statement of Operations
 
 
 
 
Net interest income
17,019
21,118
18,266
17,125
Provision for loan losses
5,535
 2,241
 1,651
 531
Net income (loss)
 (183)
 708
 3,619
 7,428
 
 
 
 
 
Bank Capital Ratios**
 
 
 
 
Tier 1 Leverage
9.54%
8.71%
8.81%
8.38%
Tier 1 Risk Based
12.98%
10.71%
10.68%
10.94%
Total Risk Based
14.23%
11.68%
11.44%
11.55%
 
 
 
 
 
 *Proforma, post capital raise at 9/30/09
** Proforma, post capital raise at 9/30/09 assuming $13.5 million in additional capital to the Bank
 
 

 
www.ppbi.com
 Core deposit growth through small and middle market
 business focus
 Relationship banking via high service levels
 Offensive capital raise - expansion opportunities
Develop the Bank into one of Southern California’s
top performing commercial banks.
 
 

 
www.ppbi.com
Texas ratio defined as NPAs / tangible equity plus loan loss reserves; Circle
radius represents 100 miles
SoCal Stressed Institutions
Possible failures as of September 30, 2009 within
100 miles of Costa Mesa, California
Texas Ratio
# of Institutions
Near term
100% +
9
Longer term
50% to 100%
19
Possible near and longer term failures
Texas Ratio > 100%
Texas Ratio b/t 50-100%
 
 

 
www.ppbi.com
At September 30, 2009
(dollars in millions)
 
 

 
www.ppbi.com
As of September 30, 2009
 
 

 
www.ppbi.com
 Overall Underwriting Philosophy:
  CRE, C&I - business/property and global cash flow
 CRE Loans:
  Multifamily
  Commercial
  No construction, no L&D, no condo conversion, no int. reserves, no
 repositioning, no covenant lite, no low doc
  Personal guarantees, cross collateral, cross guarantees
 Portfolio Management
 Collections
 
 

 
www.ppbi.com
 
Average
Loan Size
Seasoning
(months)
LTV
DCR
Multifamily RE
$ 1,052,000
49
67%
1.20
CRE Investor
$ 1,208,000
42
58%
1.42
CRE Owner
$ 964,000
45
54%
----
C & I
$ 356,000
25
----
----
SBA
$ 107,000
27
----
----
At September 30, 2009
 
 

 
www.ppbi.com
 
12/31/07
12/31/08
09/30/09
Balance
$341.3
$287.6
$284.1
Avg. Bal
$1.087
$1.053
$1.052
DCR
1.17
1.47
1.20
LTV
65
65
67
Rate
6.77%
6.30%
6.20%
 
 
 
 
County
Bal
LTV
DCR
 
Los Angeles
$197.8
66%
 1.26
 
Orange
$21.0
63%
 1.30
 
Riv./San Bern.
$25.5
76%
0.87
 
San Diego
$23.6
68%
 1.26
 
Other *
$16.2
64%
 1.17
 
Total
$284.1
67%
 1.20
 
At September 30, 2009
 
 

 
www.ppbi.com
 
12/31/07
12/31/08
09/30/09
Balance
$142.1
$163.4
$153.4
Avg. Bal
$1.184
$1.202
$1.208
DCR
1.34
1.54
1.42
LTV
62
57
58
Rate
7.25%
7.04%
6.88%
Type
Bal
LTV
DCR
Office
$45.0
60%
1.43
Retail
$46.6
55%
1.41
Industrial
$25.8
63%
1.33
Other
$35.7
57%
1.52
Total
$153.4
58%
1.42
At September 30, 2009
 
 

 
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Peers consist of California commercial banks between $500 million and $1 billion, as of the end of the period covered.
Source: FDIC
 
 

 
www.ppbi.com
Peers consist of California commercial banks between $500 million and $1 billion, as of the end of the period covered.
Source: FDIC
 
 

 
www.ppbi.com
Book Value at September 30, 2009
In October, private label MBS totaled $9.0 million.
 
 

 
www.ppbi.com
 Bank transition gaining momentum
 Outperform peers due to: Credit Culture
 Target rich environment for acquisitions
 Undervalued stock relative to peers
 
 

 
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Questions?
Questions?