-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KNRgsdz7ONCtMvr50gZJKZtMABJyt9r98d3EIa+xHt48Ao+Baq/BTL1ydxbHDh6J wZ6nZK8XzqL3laH2buAhVw== 0000950172-02-001083.txt : 20020522 0000950172-02-001083.hdr.sgml : 20020522 20020521215014 ACCESSION NUMBER: 0000950172-02-001083 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20020522 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GOLDEN STATE BANCORP INC CENTRAL INDEX KEY: 0001019508 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 954642135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: 1934 Act SEC FILE NUMBER: 000-29654 FILM NUMBER: 02659307 BUSINESS ADDRESS: STREET 1: 135 MAIN ST CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 4159041100 MAIL ADDRESS: STREET 1: 135 MAIN ST CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CITIGROUP INC CENTRAL INDEX KEY: 0000831001 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 521568099 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 399 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10043 BUSINESS PHONE: 2125591000 MAIL ADDRESS: STREET 1: 399 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10043 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS INC DATE OF NAME CHANGE: 19940103 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS GROUP INC DATE OF NAME CHANGE: 19950519 FORMER COMPANY: FORMER CONFORMED NAME: PRIMERICA CORP /NEW/ DATE OF NAME CHANGE: 19920703 425 1 s371213.txt Filed by Citigroup Inc. Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Golden State Bancorp, Inc. Commission File No. 000-29654 [citigroup logo] [GSB GoldenStateBancorp logo] ================================================================================ Acquisition of Golden State Bancorp May 21, 2002 Citigroup to Acquire Golden State Bancorp - ------------------------------------------------------------------------------- o Strong retail banking franchise in the West - $54 billion in assets; $25 billion in deposits - 352 branches; 500 ATMs - #5 in California with 4.5% deposit market share and #6 in Nevada with 4.7% deposit market share - Significant mortgage servicing business - #8 mortgage servicer in the U.S. o Strengthens Citigroup's retail banking position in attractive market - California is largest deposit market in U.S. with $492 billion of deposits - Increases Citibank's California deposit market share to 5.8% from 1.3%; total U.S. market share increases to 4.2% from 3.5% o Builds distribution capability - Increases total branches by 352 to 797 - Leveraging success of Citibanking sales model - Provides additional $25B in deposit funding Transaction Overview - ------------------------------------------------------------------------------ Price: Approximately $5.8 billion - $40.09 per share Consideration Paid: Aggregate - Fixed pool of 75.9MM shares plus $2.4B cash Per Share - .5234 Citigroup shares plus $16.40 cash Consideration Mix: Approximately 60% Citigroup stock, and 40% cash Premium over Closing Price (5/21/02): 10.0% Price/2003E EPS: 10.8x Price/Tangible Book: 2.83x (3/31/02) Transaction Structure: Tax-free exchange on shares received Anticipated Closing: By year-end 2002 Required Approvals: GSB shareholders and customary regulatory approvals
Overview of GSB - ----------------------------------------------------------------------------------------------------------------- GSB | DEPOSIT COMPOSITION GoldenStateBancorp | ($B) logo | [BAR CHART SHOWING THE FOLLOWING] | CALFED o 5th largest depository | 1996 1997 1998 1999 2000 2001 logo institution in CA | ---- ---- ---- ---- ---- ---- o 352 branches | $8.5 $16.2 $24.6 $23.0 $23.3 $25.1 (335 in CA; 17 in NV) | | Time Deposits 65% 64% 53% 52% 54% 50% | MM/Savings Dep 26% 28% 35% 38% 35% 39% 1st o 8th largest mortgage | Demand Deposits 8% 7% 12% 10% 11% 11% Nationwide servicer in U.S. | Mortgage - $89B serviced for | logo others at 12/31/01 | o Among 20 largest mortgage | LOAN COMPOSITION (as of 3/31/02) originators in U.S. | - $26B in 2001 | [PIE CHART SHOWING THE FOLLOWING] | CALFED o $1.2 billion in sales | Commercial Real Estate 17% INVESTMENTS - 32% mutual funds | Other 3% logo - 30% fixed annuities | Auto 5% - 30% variable annuities | Home Equity 2% - 8% insurance/other | Residential Mortgage 74% o 1,055 licensed sales reps | | Total: $38.9 billion AUTO ONE o $1.9 billion outstandings | -------------------- Acceptance (12/01) | Corporation o 2001 loan production $1.2 | logo billion | Source: 12/01, 10-K |
Significantly Builds Market Share in Key Markets - ------------------------------------------------------------------------------- CALIFORNIA ($B) - ------------------------------------------------------------------------------ Rank Company Deposits Market Share - ------------------------------------------------------------------------------ 1 Bank of America $108.5 22.1% 2 Wells Fargo 68.8 13.9 3 Washington Mutual 59.7 12.1 - ------------------------------------------------------------------------------ Citi-Golden State Pro Forma 28.3 5.8 - ------------------------------------------------------------------------------ 4 UnionBanCal 25.3 5.1 - ------------------------------------------------------------------------------ 5 Golden State 21.9 4.5 - ------------------------------------------------------------------------------ 6 Golden West 18.9 3.9 7 BNP Paribas 14.9 3.0 8 Comerica 12.4 2.5 9 Downey 8.9 1.8 10 City National 7.0 1.4 11 Zions 6.7 1.4 - ------------------------------------------------------------------------------ 12 Citigroup 6.4 1.3 - ------------------------------------------------------------------------------ NEVADA ($B) - ------------------------------------------------------------------------------- Rank Company Deposits Market Share - ------------------------------------------------------------------------------- 1 Wells Fargo & Co. $ 5.5 26.0 % 2 Bank of America Corp. 4.9 23.0 - ----------------------------------------------------------------------------- Citigroup + GSB 2.4 11.4 - ----------------------------------------------------------------------------- 3 Zions Bancorp. 2.0 9.6 4 U.S. Bancorp 1.5 6.8 - ----------------------------------------------------------------------------- 5 Citigroup 1.4 6.7 - ----------------------------------------------------------------------------- 6 Golden State Bancorp 1.0 4.7 - ----------------------------------------------------------------------------- 7 Colonial BancGroup Inc. 0.7 3.4 8 Bankwest Nevada Corp. 0.5 2.4 9 BNP Paribas Group 0.5 2.1 10 Marshall & Ilsley Corp. 0.4 1.8 California Nevada U.S. - --------------------------------------------------------------------------- Total Deposit CAGR 1997-2001 5.7% 8.3% 5.4% Average Household Income $69,681 $63,955 $61,904 - --------------------------------------------------------------------------- Opportunity to further expand in fast-growing Hispanic banking market, leveraging recent Banamex acquisition - --------------------------------------------------------------------------- Source: SNL Report data as of 6/30/01 Capitalize Best-in-Class Retail Platform - ------------------------------------------------------------------------------- Citibanking North America Product Sales Growth Core Income 1998-2001 CAGR ($MM) --------------- Home Equity Apps 83% [CHART ILLUSTRATING THE FOLLOWING] Personal Loan Apps 32% Proprietary Inv. Products 24% 3-Yr CAGR Investment Products 12% 71% Deposit Accounts 11% Checking Accounts 11% 1998 1999 2000 2001 --------------------------- $124 $373 $501 $616 # Branches 376 371 367 445 Opportunity to Enhance Productivity - ------------------------------------------------------------------------------ First Quarter 2002 [BAR CHART ILLUSTRATION] [BAR CHART ILLUSTRATION] Revenue Per Branch Net Income per Branch ($MM) ($MM) GSB Citibank NA GSB Citibank NA 1Q02 1.20 1.73 1Q02 0.31 0.41 Branch Model Comparison - ------------------------------------------------------------------------------ 1Q02 Average Investment Licensed Sales Force Revenue Per Branch ($M) [BAR CHART ILLUSTRATION] Cal Fed CBNA Total 1,055 + 1,879 = 2,934 Cal Fed Citibank 1Q02 $49.00 $126 Demographics Cal Fed Citibank ------- -------- ----------------------------- Total New* Age 50 41 47 Income($M) 57 60 71 *New customers within the last 12 months Leverage Successful Retail Integration Track Record - ------------------------------------------------------------------------------- EAB Acquisition [BAR CHART ILLUSTRATION] [BAR CHART ILLUSTRATION] ($MM) ($MM) Revenue Per Branch Net Income per Branch EAB Citibank NA* EAB Citibank NA* 1Q01 1.23 1.68 1Q01 0.25 0.41 1Q02 1.47 1.78 1Q02 0.34 0.44 o Revenue synergies - Cross-sell non-traditional products - Core productivity improvements o Expense synergies - Staff reductions - Redundant branch closings - Reduction in corporate overhead * Excludes EAB Fulfills Strategic Objectives - ------------------------------------------------------------------------------- o Expands Citigroup distribution in key markets - Acquiring high-quality, well-managed franchise - Builds market share in California, largest deposit market in U.S., and Nevada, one of the fastest growing deposit markets in U.S. o Opportunity to leverage best-in-class retail franchise - Convert existing thrift model to full-service banking model o Significant synergy opportunities - Enhanced product set - Efficiency gains o Financially attractive transaction - Builds Citigroup's deposit base to over $400 billion o Statements made today may include forward-looking information subject to risks, uncertainties and other factors that could materially affect actual results. o For further information please see Citigroup's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (www.sec.gov). -----END PRIVACY-ENHANCED MESSAGE-----