Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CU Bancorp | d479892d8k.htm |
 Exhibit 99.1 |
 Forward-Looking Statements
2
This presentation contains certain forward-looking information
about CU Bancorp and California United Bank (collectively the “Company”) that is
intended
to
be
covered
by
the
safe
harbor
for
“forward-looking statements”
provided
by
the
Private
Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact are
forward-looking statements. Such statements involve inherent risks and uncertainties, many of
which
are
difficult
to
predict
and
are
generally beyond
the
control
of
the
Company.
There
are
a
number
of
important factors that could cause actual
results
to
differ
materially
from
those
expressed
in,
implied
or
projected
by,
such
forward-looking statements.
Risks
and
uncertainties include but are
not limited to lower than expected revenues; credit quality
deterioration which could cause an increase in the allowance for loan losses and a reduction in
net earnings; increased competitive pressure among depository
institutions; a change in the interest rate environment which reduces interest margins;
asset/liability repricing risks and liquidity risks; general economic
conditions, either nationally or in the market areas in which the Company does or
anticipates doing business are less favorable than expected;
environmental conditions, including natural disasters, may disrupt our business, impede our
operations, negatively impact the values of collateral security for the
Company’s loans or impair the ability of our borrowers to support their debt
obligations; the economic and regulatory effects of the continuing war
on terrorism and other events of war; legislative or regulatory requirements or
changes adversely affecting the Company’s business; and changes in
the securities markets. If any of these risks or uncertainties materializes or if any of
the assumptions underlying such forward-looking statements proves
to be incorrect, the Company’s results could differ materially from those expressed
in, implied or projected by such forward-looking statements. The
Company assumes no obligation to update such forward-looking statements. For a
more complete discussion of risks and uncertainties, read the
Bank’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed
by the Bank with the FDIC and by CU Bancorp with the SEC. The documents
filed with the FDIC and the SEC may be obtained at California United
Bank’s website at www.cunb.com. These
documents may also be obtained free of charge from CU Bancorp by directing a request to CU Bancorp,
15821 Ventura Boulevard, Suite 100, Encino, California 91436,
Attention: Investor Relations. Telephone 818 257-7700. |
 Investment Highlights
3
•
Emerging business banking franchise reaching an inflection point
in
profitability
•
Attractive low-cost core deposit base
Non-interest bearing deposits comprise 50% of total deposits at
12/31/12 Cost of deposits was 17 bps in Q4 2012
•
Demonstrated ability to grow both organically and through
acquisitions •
Experienced management team with an established track record of
delivering results
•
Recent acquisition of Premier Commercial Bank (PCB) provides
near-term catalyst for earnings growth
•
Growing awareness in local markets and the investment community
Surpassed $1 billion in total assets in July 2012
Transferred listing to Nasdaq Capital Market in October 2012
|
 Corporate Overview
4
California United Bank is a premier community-based
commercial bank servicing the Metropolitan Los Angeles,
Orange County and Ventura County markets
•
Established by local business owners and entrepreneurs in 2005
•
Eight full-service offices in Los Angeles, San Fernando Valley,
Conejo Valley, Santa Clarita Valley, Simi Valley, South Bay, and
Orange County (Anaheim and
Irvine/Newport Beach)
•
Servicing businesses, non-profit organizations, entrepreneurs,
professionals, and high-net worth individuals
•
Total assets of $1.25 billion
•
California United Bank grew total assets at a 43% CAGR and total
deposits at a
51% CAGR since inception in 2005 through December 31, 2012
|
 •
Encino
(2005)
–
Headquarters
•
Los Angeles (2006)
•
Santa Clarita Valley (2007)
•
South
Bay
(2009)
–
Converted
to
a
branch
in 2010
•
Orange
County
(2010)
–
Loan
Production
Office
•
Simi
Valley
(2010)
–
Acquired
from
California Oaks State Bank
•
Thousand
Oaks
(2010)
–
Acquired
from
California Oaks State Bank
•
Anaheim
(2012)
–
Acquired
from
Premier
Commercial Bank
•
Irvine/Newport
Beach
(2012)
–
Acquired
from Premier Commercial Bank
Strategic Geographic Locations
5
California United Bank has a footprint
that spans the most attractive markets in
Southern California: |
 Why We Are Different
6
•
CUNB has been engaged in the successful practice of business banking
since its inception
Strong growth combined with stellar asset quality
•
We have the ability to do larger, more complex financings than similar
sized banks Formula lines of credit
Asset-based lending
•
Executive team has extensive experience building high performing
banks
•
Demonstrated ability to identify, acquire and successfully integrate
banks •
Proven ability to attract top bankers
Multiple experienced banking teams added from competitors since
2010 •
Local advisory boards guide the Bank in its respective business
communities |
 Our Customers
7
•
Majority of customers participate in the manufacturing, distribution and
services industries
•
Typical customer has between $10 million and $60 million in annual
sales (excluding SBA borrowers)
•
Typical loan commitment ranges between $1 million and $5 million
(excluding SBA loans)
•
Majority of new customers come from larger banks
•
Most new business generation results from warm leads provided by
referral sources |
 Dedicated to the Community
8
•
CUNB employees are involved in their local communities
•
Strong cultural value demonstrates that supporting the community
is also good
business
•
CUNB supports over 75 charities throughout Southern California
financially and with volunteer hours
•
Utilize local advisory boards to help guide the Bank in its respective
markets •
“Outstanding”
CRA Rating |
 Experienced Management
9
*Formerly EVP at Premier Commercial Bank, N.A.
Name
Title
Functional
Banking Exp
CUB Tenure
David Rainer
President
Chief Executive Officer
32 years
7 years
Anne Williams
EVP
Chief Operating Officer & Chief Credit
Officer
32 years
7 years
Karen Schoenbaum
EVP
Chief Financial Officer
19 years
3 years
Anita Wolman
EVP
General Counsel
35 years
7 years
Sam Kunianski
EVP
Executive
Manager
–
Commercial
and
Private Banking
28 years
6 years
William Sloan
EVP
Executive
Manager
–
Real
Estate
and
Santa Clarita Regional Manager
28 years
7 years
Stephen Pihl
EVP
Executive
Manager
–
SBA
and
Orange
County Regional Manager
25 years
New addition* |
 A History of Success
10
•
Wells
Fargo/Security
Pacific
–
1980s
•
California
United
Bank
(1992
–
1997)
–
Grew
to
$1
billion
in
assets
–
Sold
to
Bank
of
Hawaii
in
1997
•
Santa Monica Bank
–
Sold to U.S. Bancorp in 2000
•
U.S. Bank (2001 –
2004)
•
California United Bank (Current)
–
Opened in 2005
–
Acquired Cal Oaks State Bank December 31, 2010
–
Merged with Premier Commercial Bancorp July 31, 2012
–
$1.25 billion in total assets at December 31, 2012
The
Management
Team
at
California
United
Bank
has
three
decades
of
banking
experience
in
the
Southern California
Market.
The
same
Executive
Team
that
created
success
at
the
banks
below
are
now
in
charge
at California United Bank. |
 Our Growth Strategy
11
Organic
Acquisitions
De novo regional offices with strong local leadership
Hire “in market”
talent
Offer sophisticated products/solutions
Expertise in C&I and Commercial Real Estate lending
Relationship based business
Distinguish by service
New SBA lending expertise provided by PCB
California Oaks State Bank (12/31/10)
Premier Commercial Bank (7/31/12) |
 Q4 2012 Highlights
12
•
Core earnings
*
of $3.9 million
+146% YoY
•
Strong balance sheet growth
+8% loan growth (linked quarter)
+3% non-interest bearing deposit growth (linked quarter)
•
High quality deposit base
50% non-interest bearing
17 bps cost of deposits
•
NIM and efficiency ratio improve
NIM increases 30 bps to 3.87%
Efficiency ratio improves to 72%
•
Continued pristine credit quality
No charge-offs in Q4
*
Core earnings reconciliation to net income provided in Appendix
|
 Increasing Earnings Power
13
*
Core earnings reconciliation to net income provided in Appendix
|
 Improving Operating Leverage
14
3Q12 operating expenses excludes $2.5 million in merger-related
expenses |
 Impact of PCB Merger
15
*
Core earnings reconciliation to net income provided in Appendix
|
 Consistent Asset Growth
16
*Represents the assets acquired from Premier
Commercial Bancorp on July 31, 2012 |
 Loan Growth
17 |
 Loan Portfolio Composition
(December 31, 2012)
18 |
 Loans by Industry (C&I and Owner-Occupied)
(December 31, 2012)
19 |
 NPAs/Total Assets
20
Peer Group includes public banks or bank holding companies in
California with total assets between $1.0-$1.5 billion (peer data unavailable for Q4 2012) |
 NCOs/Avg. Loans
21
Peer Group includes public banks or bank holding companies in California
with total assets between $1.0-$1.5 billion |
 Strong Deposit Growth
22 |
 Deposit Composition
(December 31, 2012)
23 |
 Transaction Accounts and Cost of Funds
24
Peer Group includes public banks or bank holding companies in California
with total assets between $1.0-$1.5 billion (peer data unavailable for Q4 2012) |
 CU Bancorp Capital Ratios
25
Tier 1 Leverage Capital Ratio (%)
Total Risk Based Capital Ratio (%)
Peer Group includes public banks or bank holding companies in California
with total assets between $1.0-$1.5 billion (peer group data as of September 30, 2012) |
 Merger Overview
26
Creates one of Los Angeles/Orange County’s largest independent
commercial banking franchises focused exclusively in the
market Partnered two of Southern California’s strongest
commercial banks; strengthening the franchise for long-term
earnings growth and value creation The critical mass of a larger
institution will enable the bank to expand available services
and penetrate additional markets The transaction will be
beneficial for stakeholders in both organizations: creating
value for shareholders, employees, customers, and the Southern
California communities
Southern California’s
Preeminent Business Bank |
 Merger of Two Attractive Franchises
27
Low Cost Deposits
C&I Lending Expertise
Attractive Locations
Strong Credit Quality
Experienced Management Team
SBA Expertise
Real Estate Lending Expertise
Attractive Orange County Market
Strong Credit Quality
Experienced Management Team |
 An Abundance of Synergies
28
Combined breadth of products and services will increase business
development capabilities throughout footprint
PCB’s award-winning SBA lending platform will be leveraged
throughout CUB’s markets
Improving PCB’s deposit mix and reducing funding costs
Elimination of redundancies will provide meaningful cost savings
and enhance efficiencies
Greater scale will enable better absorption of increasing regulatory
compliance costs |
 Shifting from Growth to High Performance
29 |
 Contact Information
30
•
For more information, please contact:
–
Karen Schoenbaum, CFO
(818) 257-7700
kschoenbaum@cunb.com |
 Appendix
31
Reconciliation of Core Earnings to Net Income (Loss)
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
Net Income (Loss)
1,628
(932)
525
506
306
601
312
248
Add back: Provision for income tax expense (benefit)
1,166
(453)
502
450
181
454
242
270
Add back: Provision for loan losses
867
521
380
-
781
-
467
194
Subtract: Gain on sale of securities, net
-
-
-
-
-
6
69
144
Subtract: Other-than-temporary impairment losses, net
(65)
(30)
(30)
(30)
(130)
(19)
(70)
(45)
Add back: Merger related expenses
203
2,517
190
148
198
8
24
190
Core Earnings
3,929
1,683
1,627
1,134
1,596
1,076
1,046
803
|