![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9911.jpg)
Howe Barnes/Hoefer Arnett Conference
August 13, 2007
Steven R. Gardner
President & CEO
WWW.PPBI.NET
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9912.jpg)
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
c ompetitive 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.
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9913.jpg)
3
PPBI Overview
Southern California Community Bank
Data as of June 30, 2007
•Assets$720 million
•Fully diluted shares6,573,888
•Fully diluted BV$9.41
•Annualized ROAA0.59%
•Annualized ROAE7.09%
•NASDAQ National Market PPBI
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9914.jpg)
4
PPBI Overview
•Company History
•Transitioning business model
•Balance sheet strength
•Favorable relative valuation
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9915.jpg)
5
Today’s Agenda
Three Phase
Strategic Business Plan
•Phase 1 - Recapitalize
•Phase 2 - Growth
•Phase 3 - Commercial Banking Model
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9916.jpg)
6
Phase 1
What We Inherited
Nationwide Subprime Lender
•Assets$552 million
•Loans $434 million
• Subprime loans 75%
•NPA’s7.8%•Employees/Offices334/10
•Under capitalized
•Subject to Regulatory Enforcement
• Employees/Offices 334/10
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9917.jpg)
7
Phase 1
Completed June 2002
•Assets$246 million
•Loans$135 million
•Employees/Offices63/4
•Substantial reduction in risk
•Recapitalized - Private Placement
•Note and warrant issued
•Regulatory concerns resolved
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9918.jpg)
8
Phase 2
•Loan growth - Multi-family focus
•Deposit growth - new products
•Foundation set for transition
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex9919.jpg)
9
($ in millions)
$472
Loan Growth
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99110.jpg)
10
Deposit Growth
($ in millions)
$289
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99111.jpg)
11
Phase 2
Completed 2004
•Assets$543 million
•Loans$472 million
•Secondary Offering $26 million
•Note retired
•Stage set for transition
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99112.jpg)
12
Phase 3
Transition Business Model
•Diversify Loan Portfolio
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99113.jpg)
13
($ in millions)
$252
* Includes: All Commercial, C&I, & Land loans.
Business and CRE Growth
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99114.jpg)
14
Diversify Loan Portfolio
Multifamily
CRE Investor
CRE business
SBAC&I
Other
C&I
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99115.jpg)
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 | $ 1,015 | 2.01% |
(dollars in thousands)
Loan Sales
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99116.jpg)
16
Phase 3
Transition Business Model
•Diversify Loan Portfolio
•Business Banking
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99117.jpg)
17
Relationship Marketing
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99118.jpg)
18
As of June 30, 2007
dollars in thousands
Deposit Mix
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99119.jpg)
19
dollars in thousands
Deposit Mix
12/31/04
6/30/07
CD’s
Consumer
Business
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99120.jpg)
20
Business Deposit Growth
$50,409
(dollars in thousands)
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99121.jpg)
21
Relationship Growth
12/31/ 2004 | 6/30/2007 | |
No. Relationships | 63 | 285 |
Loans | $45,143,000 | $317,934,000 |
Deposits | $1,194,000 | $31,550,000 |
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99122.jpg)
22
Phase 3
Transition Business Model
•Diversify Loan Portfolio
•Relationship Banking
•Expansion of Branch Network
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99123.jpg)
23
Los
Angeles
Orange
San Bernardino
San Diego
Riverside
Imperial
Kern
San Luis
Obispo
Santa
Barbara
Ventura
Existing Branch
Southern California Market
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99124.jpg)
24
California Market
It’s the Economy
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99125.jpg)
25
Source: U.S. Census Bureau
Top 10 States by Population | ||||
06/30/2006 Population | Projected Population Change 2006-2011 | |||
Rank | State | (#) | Rank | (#) |
1 | California | 36,457,549 | 1 | 2,916,604 |
2 | Texas | 23,507,783 | 2 | 2,576,453 |
3 | New York | 19,306,183 | 11 | 415,083 |
4 | Florida | 18,089,888 | 3 | 2,337,241 |
5 | Illinois | 12,831,970 | 8 | 645,448 |
6 | Pennsylvania | 12,440,621 | 26 | 240,104 |
7 | Ohio | 11,478,006 | 20 | 249,073 |
8 | Michigan | 10,095,643 | 19 | 281,668 |
9 | Georgia | 9,363,941 | 4 | 1,287,542 |
10 | North Carolina | 8,856,505 | 6 | 722,691 |
California Market
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99126.jpg)
26
Source: U.S. Census Bureau
Top 10 States by Household Income | ||||||
Median Household Income | Projected Median Household Change | |||||
Rank | State | 07/31/2006 ($) | Projected Growth | 5 yr. Growth | ||
* | Orange County | 73,129 | 2 | 13,083 | ||
1 | Connecticut | 75,541 | 2 | 13,242 | ||
2 | New Jersey | 75,311 | 5 | 12,848 | ||
3 | Maryland | 74,879 | 4 | 13,089 | ||
4 | Massachusetts | 71,655 | 1 | 15,950 | ||
5 | New Hampshire | 67,354 | 3 | 13,174 | ||
6 | Alaska | 67,084 | 14 | 11,022 | ||
7 | Hawaii | 66,472 | 31 | 9,166 | ||
8 | Virginia | 65,174 | 6 | 12,031 | ||
9 | Rhode Island | 64,657 | 9 | 11,612 | ||
13 | California | 61,476 | 18 | 10,420 |
California Market
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99127.jpg)
27
* 58 Counties in California
Source: State of California
Top 10 Counties by Population | ||||
Population | Projected Population Change | |||
Rank | County | 12/31/2006 (#) | Rank | 2006 - 2011 (#) |
1 | Los Angeles | 10,245,572 | 1 | 632,312 |
2 | Orange | 3,072,336 | 4 | 227,348 |
3 | San Diego | 3,066,820 | 5 | 166,236 |
4 | San Bernardino | 1,991,829 | 3 | 301,703 |
5 | Riverside | 1,953,330 | 2 | 377,576 |
6 | Santa Clara | 1,773,258 | 9 | 105,511 |
7 | Alameda | 1,501,303 | 11 | 99,131 |
8 | Sacramento | 1,385,607 | 6 | 150,806 |
9 | Contra Costa | 1,029,377 | 12 | 77,326 |
10 | Fresno | 899,514 | 8 | 115,092 |
California Market
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99128.jpg)
28
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
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99129.jpg)
29
Risk Management
Balance Sheet Strength
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99130.jpg)
30
Multifamily | ||
Loan to Value | 62.76 | |
Debt Coverage Ratio | 1.25 | |
Average Balance | $857,458 | |
CRE Investor | ||
Loan to Value | 61.89 | |
Debt Coverage Ratio | 1.33 | |
Average Balance | $1,202,960 | |
CRE Business | ||
Loan to Value | 59.17 | |
Average Balance | $808,948 |
Portfolio Characteristics
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99131.jpg)
31
Delinquent Loans to Total Assets * | Nationwide | California | PPBI ** |
Multi-Family | 0.01% | 0.03% | 0.00% |
Commercial RE | 0.09% | 0.15% | 0.02% |
Single Family | 0. 48% | 0.61% | 0.06% |
Source: FDIC as of 3/31/07
* Includes past due 30-89 day, 90+ days and accruing, and non-accruals.
** PPBI as of 6/30/07
Asset Quality
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99132.jpg)
32
NPA to Total Assets
Asset Quality
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99133.jpg)
33
Avg. LTM x PE Ratio | Price to Tangible BV | |
CA Banks* | 15.43x | 212% |
PPBI Metrics* | 9.41x | 113% |
* As of 6/30/2007, Asset Size $500 Million to $1 Billion
Source: Carpenter & Company
Attractive Valuation
Valuation relative to California Peers:
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99134.jpg)
34
PPBI Summary
•Transition to Commercial Bank
•Low Risk Balance Sheet
•On-going Expansion
•Excellent time to invest
![](https://capedge.com/proxy/8-K/0001028918-07-000045/ppbi_8khbha-ex99135.jpg)
Trust, Service, Commitment…That’s my Bank.
WWW.PPBI.NET