EXHIBIT (c)(2)
EXHIBIT I - A
HEMET BANCORP
SUMMARY OF PROJECTED FINANCIALS
BASE
(THOUSANDS) 2001 2002 2003 2004 2005 2006
-------- -------- -------- -------- -------- --------
PROJECTIONS
ASSET GROWTH 3.53% 5.00% 5.00% 5.00% 5.00% 5.00%
TARGET TOTAL ASSETS $305,980 $321,279 $337,343 $354,210 $371,921 $390,517
AVERAGE ASSETS $297,398 $313,630 $329,311 $345,777 $363,065 $381,219
ROAA 0.99% 1.10% 1.10% 1.11% 1.12% 1.12%
-------- -------- -------- -------- -------- --------
NET INCOME $ 2,951 $ 3,450 $ 3,622 $ 3,838 $ 4,066 $ 4,270
PREFERRED DIVIDENDS -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
INCOME TO COMMON $ 2,951 $ 3,450 $ 3,622 $ 3,838 $ 4,066 $ 4,270
COMMON DIVIDENDS 2,051 2,242 2,355 2,495 2,643 2,775
-------- -------- -------- -------- -------- --------
RETAINED EARNINGS $ 900 $ 1,207 $ 1,268 $ 1,343 $ 1,423 $ 1,494
======== ======== ======== ======== ======== ========
TOTAL COMMON EQUITY $ 20,899 $ 22,106 $ 23,374 $ 24,718 $ 26,141 $ 27,635
INTANGIBLES -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
TANGIBLE CAPITAL $ 20,899 $ 22,106 $ 23,374 $ 24,718 $ 26,141 $ 27,635
======== ======== ======== ======== ======== ========
RATIOS
COMMON INCOME GROWTH -4.84% 16.91% 5.00% 5.95% 5.95% 5.00%
COMMON DIVIDEND PAYOUT RATIO 69.50% 65.00% 65.00% 65.00% 65.00% 65.00%
T. EQUITY / T. ASSETS 6.83% 6.88% 6.93% 6.98% 7.03% 7.08%
EXHIBIT I - B
HEMET BANCORP
SUMMARY OF PROJECTED FINANCIALS
OPTIMUM DIVIDEND PAYING CAPACITY
BASE
(THOUSANDS) 2001 2002 2003 2004 2005 2006
--------- --------- --------- --------- --------- ---------
PROJECTIONS
ASSET GROWTH 3.53% 5.13% 4.94% 4.94% 4.94% 4.95%
TARGET TOTAL ASSETS $ 305,980 $ 321,684 $ 337,582 $ 354,269 $ 371,784 $ 390,181
AVERAGE ASSETS $ 297,398 $ 313,832 $ 329,633 $ 345,926 $ 363,027 $ 380,983
ROAA 0.99% 1.10% 1.10% 1.11% 1.12% 1.12%
--------- --------- --------- --------- --------- ---------
NET INCOME $ 2,951 $ 3,457 $ 3,633 $ 3,843 $ 4,065 $ 4,262
PREFERRED DIVIDENDS -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
INCOME TO COMMON 2,951 3,457 3,633 3,843 4,065 4,262
OPTIMUM DIVIDENDS(3) 2,051 1,838 2,520 2,675 2,839 2,974
--------- --------- --------- --------- --------- ---------
RETAINED EARNINGS $ 900 $ 1,619 $ 1,113 $ 1,168 $ 1,226 $ 1,288
========= ========= ========= ========= ========= =========
TOTAL COMMON EQUITY $ 20,899 $ 22,518 $ 23,631 $ 24,799 $ 26,025 $ 27,313
INTANGIBLES -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
TANGIBLE CAPITAL $ 20,899 $ 22,518 $ 23,631 $ 24,799 $ 26,025 $ 27,313
========= ========= ========= ========= ========= =========
OPTIMUM DIVIDENDS
EXCESS EQUITY / (DEFICIENCY) $ (559) $ 0 $ 0 $ 0 $ 0 $ 0
CUMULATIVE CHANGE IN DIVIDENDS(4) NA (405) (239) (59) 137 336
EARNINGS ADJUSTMENT AT 5.0% NA 7 10 5 (1) (8)
RATIOS
COMMON INCOME GROWTH -4.84% 17.13% 5.10% 5.78% 5.78% 4.84%
COMMON DIVIDEND PAYOUT RATIO 69.50% 53.16% 69.37% 69.60% 69.84% 69.78%
T. EQUITY / T. ASSETS 6.83% 7.00% 7.00% 7.00% 7.00% 7.00%
PRESENT TERMINAL
DISCOUNTED CASH FLOW(2) VALUE 2002 2003 2004 2005 2006 VALUE(1)
----------- ------ ------ ------ ------ ------ --------
PROJECTED MAX DIVIDENDS $1,838 $2,520 $2,675 $2,839 $2,974 $ 55,406
DISCOUNT FACTORS @ 12.00% 0.9449 0.8437 0.7533 0.6726 0.6005 0.6005
NET PRESENT VALUE $ 42,844 $1,736 $2,126 $2,015 $1,909 $1,786 $ 33,272
$42,844,412
-----------
818,718
-----------
$52.33
===========
(1) Capitalization of projected income = (Earnings year 5 x (1+long term
growth)/(discount rate - long term growth). Long-Term Growth estimated at
4.0%
(2) Net present value factors are calculated using the mid-year convention
method.
(3) Assumption that dividends paid periodically throughout the year (4) This is
the cumulative difference between management's projected dividends and
optimum dividends
EXHIBIT II
HEMET BANCORP
FINANCIAL AND MARKET SUMMARY OF BANKS ACQUIRED
IN CALIFORNIA
WITH ASSETS LESS THAN $500 MILLION
ANNOUNCED SINCE MARCH 31, 2001
DEAL
ACQUISITION VALUE
BUYER SELLER DATE $(M'S)
- ----------------------------------- -------------------------------------------------- ------------ ------
Boston Private Financial MA Borel Bank & Trust Co. San Mateo CA 06/27/01 113.00
Business Bancorp CA MCB Financial Corp. San Rafael CA 08/15/01 28.90
CVB Financial Corp. CA Western Security Bancorp Burbank CA 01/18/02 6.70
First Banks Inc. MO BYL Bancorp Orange CA 06/22/01 49.00
First Banks Inc. MO Charter Pacific Bank Agoura Hills CA 05/23/01 18.40
First Community Bancorp CA First Charter Bank NA Beverly Hills CA 05/22/01 13.50
First Community Bancorp CA Pacific Western National Bank Pico Rivera CA 08/22/01 36.60
First Community Bancorp CA W.H.E.C. Inc. Carlsbad CA 11/13/01 21.10
FirstFed Financial Corp. CA City Holding Co.'s CA subs CA 08/16/01 23.00
Mid-State Bancshares CA Americorp Ventura CA 04/09/01 64.10
National Mercantile Bancorp CA South Bay Bank, NA Torrance CA 07/18/01 29.10
UnionBanCal Corp. CA First Western Bank Simi Valley CA 12/19/01 44.60
Westamerica Bancorp. CA Kerman State Bank Kerman CA 02/25/02 15.80
Western Sierra Bancorp CA Central California Bank Sonora CA 11/15/01 9.20
MAX 113.00
MIN 6.70
AVG. 33.79
MEDIAN 25.95
HEMET BANCORP HEMET CA 44.21
PRICING RATIOS
---------------------------------------------
BOOK TANGIBLE DEPOSITS ASSETS EARNINGS
BUYER SELLER (X) BOOK(X) (%) (%) (X)
- -------------------------------- ------------------------------------------------ ------ ------- ------- ------ ----------
Boston Private Financial MA Borel Bank & Trust Co. San Mateo CA 3.69 3.69 35.00 31.50 17.28
Business Bancorp CA MCB Financial Corp. San Rafael CA 2.09 2.09 13.96 12.77 9.19
CVB Financial Corp. CA Western Security Bancorp Burbank CA 0.81 0.82 5.40 4.64 NM
First Banks Inc. MO BYL Bancorp Orange CA 1.59 1.65 19.87 17.58 32.46
First Banks Inc. MO Charter Pacific Bank Agoura Hills CA 1.42 1.42 20.53 17.93 NM
First Community Bancorp CA First Charter Bank NA Beverly Hills CA 1.41 1.48 11.34 9.98 NM
First Community Bancorp CA Pacific Western National Bank Pico Rivera CA 2.02 2.03 18.74 17.05 17.14
First Community Bancorp CA W.H.E.C. Inc. Carlsbad CA 2.18 2.21 17.18 15.82 14.04
FirstFed Financial Corp. CA City Holding Co.'s CA subs CA 1.37 1.37 12.86 11.67 NM
Mid-State Bancshares CA Americorp Ventura CA 2.36 2.36 26.92 24.05 16.62
National Mercantile Bancorp CA South Bay Bank, NA Torrance CA 1.87 1.87 19.31 15.42 11.15
UnionBanCal Corp. CA First Western Bank Simi Valley CA 2.52 2.52 23.62 21.42 17.52
Westamerica Bancorp. CA Kerman State Bank Kerman CA 1.37 1.37 17.67 15.46 16.27
Western Sierra Bancorp CA Central California Bank Sonora CA 1.90 1.90 16.32 14.93 30.28
MAX 3.69 3.69 35.00 31.50 32.46
MIN 0.81 0.82 5.40 4.64 9.19
AVG. 1.90 1.91 18.48 16.44 18.19
MEDIAN 1.89 1.89 18.21 15.64 16.88
HEMET BANCORP HEMET CA 2.11 2.11 16.07 14.38 15.10
GROWTH
-----------------------------------------
ASSET DEPOSIT INCOME REVENUE
BUYER SELLER (%) (%) (%) (%)
- -------------------------------- ------------------------------------------------ ------ ------ ------ --------
Boston Private Financial MA Borel Bank & Trust Co. San Mateo CA -13.49 -17.36 0.17 40.08
Business Bancorp CA MCB Financial Corp. San Rafael CA 16.27 19.58 2.44 26.31
CVB Financial Corp. CA Western Security Bancorp Burbank CA 0.50 4.37 NM -14.52
First Banks Inc. MO BYL Bancorp Orange CA -10.71 -12.24 153.46 -41.95
First Banks Inc. MO Charter Pacific Bank Agoura Hills CA 21.95 27.03 -49.27 13.74
First Community Bancorp CA First Charter Bank NA Beverly Hills CA 6.09 28.38 -87.59 91.19
First Community Bancorp CA Pacific Western National Bank Pico Rivera CA 51.43 55.13 0.71 69.78
First Community Bancorp CA W.H.E.C. Inc. Carlsbad CA 13.38 12.96 13.09 20.14
FirstFed Financial Corp. CA City Holding Co.'s CA subs CA 9.27 8.36 NM NM
Mid-State Bancshares CA Americorp Ventura CA 8.35 13.47 10.30 30.85
National Mercantile Bancorp CA South Bay Bank, NA Torrance CA -17.37 -26.64 4.40 84.21
UnionBanCal Corp. CA First Western Bank Simi Valley CA 10.63 14.98 5.82 10.80
Westamerica Bancorp. CA Kerman State Bank Kerman CA -13.27 -15.92 4.41 -2.88
Western Sierra Bancorp CA Central California Bank Sonora CA 46.29 50.22 175.45 118.73
MAX 51.43 55.13 175.45 118.73
MIN -17.37 -26.64 -87.59 -41.95
AVG. 9.24 11.59 19.45 34.34
MEDIAN 8.81 13.21 4.40 26.31
HEMET BANCORP HEMET CA 3.42 2.23 -4.84 -0.04
EXHIBIT III
HEMET BANCORP
FINANCIAL AND MARKET SUMMARY OF BANKS ACQUIRED
IN CALIFORNIA
WITH ASSETS LESS THAN $500 MILLION
ANNOUNCED SINCE MARCH 31, 2001
$100K+
TOTAL EQUITY/ T. EQUITY NPA'S/ LLR'S/ DEPOSITS/
BUYER SELLER ASETS ASSETS T. ASSETS ASSETS NPL'S DEPOSITS
- --------------------------- -------------------------------------------- ------- ------- ---------- ------ ------ ---------
Boston Private Financial MA Borel Bank & Trust Co. San Mateo CA 358,758 8.32 8.32 0.00 0.00 19.84
Business Bancorp CA MCB Financial Corp. San Rafael CA 226,280 6.12 6.12 0.00 0.00 12.97
CVB Financial Corp. CA Western Security Bancorp Burbank CA 145,249 9.45 9.38 1.82 66.63 12.53
First Banks Inc. MO BYL Bancorp Orange CA 278,731 10.64 10.26 0.63 315.09 15.73
First Banks Inc. MO Charter Pacific Bank Agoura Hills CA 107,632 12.06 12.06 0.69 154.42 14.55
First Community Bancorp CA First Charter Bank NA Beverly Hills CA 135,254 7.07 6.77 1.26 272.48 11.48
First Community Bancorp CA Pacific Western National
Bank Pico Rivera CA 214,699 8.44 8.42 0.43 187.42 22.61
First Community Bancorp CA W.H.E.C. Inc. Carlsbad CA 133,416 7.18 7.11 1.44 43.44 13.68
FirstFed Financial Corp. CA City Holding Co.'s CA subs CA 197,022 8.54 8.54 0.56 177.89 24.51
Mid-State Bancshares CA Americorp Ventura CA 266,495 9.57 9.57 0.41 459.64 14.63
National Mercantile
Bancorp CA South Bay Bank, NA Torrance CA 188,749 10.60 10.60 0.24 393.54 23.60
UnionBanCal Corp. CA First Western Bank Simi Valley CA 208,216 8.51 8.51 1.54 40.71 6.99
Westamerica Bancorp. CA Kerman State Bank Kerman CA 102,184 11.26 11.26 7.83 23.93 46.68
Western Sierra Bancorp CA Central California Bank Sonora CA 61,475 7.84 7.84 0.00 NA 20.18
MAX 358,758 12.06 12.06 7.83 459.64 46.68
MIN 61,475 6.12 6.12 0.00 0.00 6.99
AVG. 187,440 8.97 8.91 1.20 164.25 18.57
MEDIAN 192,886 8.53 8.53 0.60 154.42 15.18
HEMET BANCORP HEMET CA 305,980 6.83 6.83 0.63 153.51 8.62
NII/ NON-INT. NON-INT./
EFF. AVG. INC./AVG. EXP./AVG.
BUYER SELLER ROAA ROAE RATIO ASSETS ASSETS ASSETS
- --------------------------- -------------------------------------------- ------ ------- ------- ------ --------- --------
Boston Private Financial MA Borel Bank & Trust Co. San Mateo CA 1.81 22.11 47.14 3.25 0.89 1.95
Business Bancorp CA MCB Financial Corp. San Rafael CA 1.39 20.75 57.34 5.36 0.43 3.32
CVB Financial Corp. CA Western Security Bancorp Burbank CA -0.80 -8.19 89.69 5.07 1.73 6.10
First Banks Inc. MO BYL Bancorp Orange CA 0.89 8.53 83.35 (1.03) 4.88 3.21
First Banks Inc. MO Charter Pacific Bank Agoura Hills CA 0.03 0.23 89.21 5.02 0.70 5.10
First Community Bancorp CA First Charter Bank NA Beverly Hills C NM NM 91.22 2.50 1.30 3.47
First Community Bancorp CA Pacific Western National
Bank Pico Rivera CA 0.91 9.99 66.21 6.57 0.69 4.81
First Community Bancorp CA W.H.E.C. Inc. Carlsbad CA 1.12 15.52 67.43 5.31 1.22 4.40
FirstFed Financial Corp. CA City Holding Co.'s CA subs CA 1.06 12.49 231.48 4.03 0.32 10.07
Mid-State Bancshares CA Americorp Ventura CA 1.44 15.17 64.82 4.58 1.08 3.67
National Mercantile
Bancorp CA South Bay Bank, NA Torrance CA 1.51 14.78 47.78 4.94 0.40 2.55
UnionBanCal Corp. CA First Western Bank Simi Valley CA 1.26 14.66 71.93 5.85 1.82 5.52
Westamerica Bancorp. CA Kerman State Bank Kerman CA 0.76 7.33 65.27 4.53 0.91 3.55
Western Sierra Bancorp CA Central California Bank Sonora CA 0.89 10.60 82.10 5.03 0.73 4.73
MAX 1.81 22.11 231.48 6.57 4.88 10.07
MIN (0.80) (8.19) 47.14 (1.03) 0.32 1.95
AVG. 0.94 11.07 82.50 4.36 1.22 4.46
MEDIAN 1.06 12.49 69.68 4.98 0.90 4.04
HEMET BANCORP HEMET CA 0.98 12.75 59.23 3.74 0.47 2.49