EX-99.1 2 ppbi_8k-presenthb2010ex99.htm PPBI 8-K 2010 Q2 INVESTOR PRESENTATION SLIDES ppbi_8k-presenthb2010ex99.htm
 
Exhibit 99.1
 
www.ppbi.com
Investor Presentation
Investor Presentation
August 17, 2010
August 17, 2010
Steven R. Gardner
Steven R. Gardner
President & CEO
President & CEO
 
 
 
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This presentation contains forward-looking statements regarding events or future financial performance
of the Company, including statements with respect to our objectives and strategies, and the results of
our operations and our business. These statements are 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. We
caution readers of this presentation not to place undue reliance on these forward-looking statements as
a number of risks could cause future results to differ materially from these statements. These risks
include, but are not limited to, the following: 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 those additional risks identified in risks factors discussed in the reports filed by the Company
with the SEC, which are available on its website at www.sec.gov. The Company does not undertake
any obligation to update any forward-looking statements for any reason, even if new information
becomes available or other events occur in the future.
 
 
 
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 • 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 - Commercial Bank Model
 • Recruited experienced bankers
 • Expand market footprint
 • Offer new products and services
 • Diversify loan and deposit portfolios
 
 
 
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Headquarters:
Costa Mesa, California
Regional Focus:
Southern California
Business Focus:
Small and middle market
businesses
Total Assets:
$797.2 million
Net Loans:
$543.0 million
Total Deposits:
$632.0 million
Branches:
6 locations
At June 30, 2010
 
 
 
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(dollars in thousands, except per share data)
Balance Sheets
  QTD
 6/30/10
  QTD
 3/31/10
  YTD
 12/31/09
  YTD
 12/31/08
Total assets
$ 797,242
$ 767,644
$ 807,323
$ 739,956
Net loans
543,023
537,882
566,584
623,138
Total deposits
 632,043
 612,901
 618,734
 457,128
Total borrowings
76,810
76,810
101,810
220,210
 
Statements of Operations
 
 
 
 
Net interest income
$ 6,842
$ 6,660
$ 23,185
$ 21,118
Provision for loan losses
639
1,056
7,735
 2,241
Net income (loss)
337
 456
 (460)
 708
 Net income (loss) per shared (diluted)
$ 0.03
$ 0.04
$ (0.08)
$ 0.11
 
 
 
 
 
Bank Capital Ratios
 
 
 
 
Tier 1 leverage
10.30
10.01
9.72
8.71
Tier 1 risk based
 13.88
 13.96
 13.30
 10.71
Total risk based
 15.13
 15.21
 14.55
 11.68
 
 
 
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At June 30, 2010
(in millions)
 
 
 
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Book Value at June 30, 2010
 
 
 
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At June 30, 2010
(in millions)
 
 
 
www.ppbi.com
 
 
 
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• Core deposit growth - small/middle market businesses
• Relationship banking via high service levels
• Conservative Credit Structure
• Strong capital position - expansion opportunities
Develop the Bank into one of Southern California’s
top performing commercial banks
 
 
 
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Texas ratio defined as NPAs / tangible equity plus loan loss reserves; Circle
radius represents 100 miles
SoCal Stressed Institutions
Possible failures as of December 31, 2009 within
100 miles of Costa Mesa, California
 
Texas Ratio
# of Institutions
Near term
100% +
5
Longer term
50% to 100%
11
Possible near and longer term failures
Texas Ratio > 100%
Texas Ratio b/t 50-100%
dollars in billions
Total Assets………………………………
7.5
$
 
Total Deposits……………………………..
6.5
 
 
Total Core Deposits………………………
4.7
 
 
Total Loans……………………………….
6.2
 
Total Branches……………………………
92
 
 
 
 
 
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Texas ratio defined as NPAs + 90 days PD / tangible common equity plus
loan loss reserves; Circle radius represents 100 miles
SoCal Stressed Institutions
Possible failures as of March 31, 2010 within
100 miles of Costa Mesa, California (1)
 
Texas Ratio
# of Institutions
Near term
100% +
12
Longer term
50% to 100%
24
Possible near and longer term failures
Texas Ratio > 100%
Texas Ratio b/t 50-100%
(1) Source: SNL Financial
 
 
 
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• Overall Underwriting Philosophy:
 • CRE and C&I - business/property analysis and global cash flow
• Loans:
 • Real estate - multi-family and non-owner occupied CRE
 • Business - owner occupied CRE and C&I
 • No CRE TDR, no construction, no L&D, no condo conversion
 • Personal guarantees, cross collateral and cross guarantees
• Portfolio Management
• Collections
 
 
 
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Average
Loan Size
Average
Rate
Seasoning
(months)
LTV
DCR
Real estate loans:
 
 
 
 
 
 Multi-family
$ 1,036,000
6.17%
59
69%
1.22
 Non O/O CRE
$ 1,204,000
6.82%
50
59%
1.23
Business loans:
 
 
 
 
 
 O/O CRE
$ 749,000
6.56%
91
50%
----
 C & I
$ 419,000
6.55%
30
----
----
 SBA
$ 124,000
5.87%
32
----
----
At June 30, 2010
 
 
 
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6/30/10
3/31/10
12/31/09
12/31/08
Balance
$258.0
$265.0
$278.7
$287.6
Average balance
$1.036
$1.043
$1.053
$1.053
Rate
6.17%
6.18%
6.20%
6.30%
LTV
69%
68%
67%
65%
DCR
1.22
1.22
1.20
1.47
(dollars in millions)
 
 
 
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6/30/10
3/31/10
12/31/09
12/31/08
Balance
$136.1
$140.0
$149.6
$163.4
Average balance
$1.204
$1.217
$1.216
$1.202
Rate
6.82%
6.88%
6.85%
7.04%
LTV
59%
59%
59%
57%
DCR
1.23
1.28
1.42
1.54
(dollars in millions)
 
 
 
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Delinquency to Total Loans
California peer group consists of all insured California institutions in the FFIEC database
 
 
 
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Nonperforming Assets to Total Assets
California peer group consists of all insured California institutions in the FFIEC database
 
 
 
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Pacific Premier
Bank
California Peer
Group (1)
 
6/30/10
3/31/10
Net interest income / Average interest-earning assets
3.69
4.00
Return on assets (annualized)
0.26
(0.19)
Return on equity (annualized)
2.56
(2.19)
Net loans to deposits
85.74
82.38
Nonaccrual loans/Total loans
0.35
3.36
(1) California peer group consists of all insured California institutions in the FFIEC database.
 
 
 
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Pacific
Premier Bank
California
Peer Group (1)
 
6/30/10
3/31/10
 
 
 
Tier 1 leverage capital
10.30
11.30
Tier 1 risk-based capital
13.88
15.12
Total risk-based capital
15.13
16.44
Tangible equity capital
10.07
11.76
Fully diluted book value (2)
$ 6.92
N/A
Price / Tangible book value (2)(3)
0.56X
0.91X
(1) California peer group consists of all insured California institutions in the FFIEC database.
(2) Fully diluted book value and price/tangible book value for PPBI.
(3) P/TBV from SNL.
 
 
 
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• 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?