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| 8-K - FORM 8-K - CU Bancorp | d453763d8k.htm |
 United in Our Dedication to Relationships
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 2
Forward-Looking Statements
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. United in Our Dedication
to Relationships |
 Investment Highlights
3
•
Emerging business banking franchise reaching an inflection point
in
profitability
•
Attractive low-cost core deposit base
Non-interest bearing deposits comprise 48% of total deposits
Cost of deposits was 18 bps in Q3 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 (excluding
merger-related expenses) •
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
United in Our Dedication to Relationships
|
 Corporate Overview
4
•
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 $1.3 billion
•
California United Bank grew total assets at a 41.0% CAGR and total
deposits at a 50.5% CAGR since inception in 2005 through December
31, 2011 United in Our Dedication to Relationships
California United Bank is a premier community-based
commercial bank servicing the Metropolitan Los Angeles,
Orange County and Ventura County markets
|
 •
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
CUNB Branch
CUNB LPO
Former COSB
Branch
Former PCB
Branch
Strategic Geographic Locations
5
United in Our Dedication to Relationships
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 United in Our Dedication to Relationships
California United Bank sets itself apart
from other banks in the following ways: |
 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
Our customer base reflects the diversity
of industries in Southern California
United in Our Dedication to Relationships
|
 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
United in Our Dedication to Relationships
Dedicated to the Community |
 9
*Formerly EVP at Premier Commercial Bank, N.A.
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*
Name
Title
Functional
Banking Exp
CUB Tenure
Experienced Management
United in Our Dedication to Relationships
|
 10
The
Management
Team
at
California
United
Bank
has
. The
same
Executive
Team
that
created
success
at
the
banks
below
are now
in
charge
at California United Bank.
–
Grew to $1 billion in assets
–
Sold to Bank of Hawaii in 1997
–
Sold to U.S. Bancorp in 2000
–
Opened in 2005
–
Acquired Cal Oaks State Bank December 31, 2010
–
Merged with Premier Commercial Bancorp July 31, 2012
–
$1.3 billion in total assets at September 30, 2012
A History of Success
•
Wells
Fargo/Security
Pacific
–
1980s
•
California
United
Bank
(1992
–
1997)
•
Santa
Monica
Bank
•
U.S.
Bank
(2001
–
2004)
•
California
United
Bank
(Current)
United in Our Dedication to Relationships
three
decades
of
banking
experience
in
the
Southern
California
Market |
 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)
United in Our Dedication to Relationships
|
 Q3 2012 Highlights
12
•
Pre-tax earnings before merger-related expenses of $1.13 million,
an increase of 6.5% over prior year
•
Net interest income of $9.8 million, an increase of 42% over prior
year •
Net interest margin increased to 3.57% from 3.37% in prior quarter
Accretion of purchase accounting discount enhanced loan yields by 29 bps
•
Net organic loan growth of $51 million, or 10% from the end of the prior
quarter
•
Net
organic
deposit
growth
of
$24
million,
or
3%
from
the
end
of
the
prior
quarter
•
Net charge-offs of $44,000
•
Integration
of
Premier
Commercial
Bank
completed
in
less
than
30
days
after close
United in Our Dedication to Relationships
|
 *Represents the assets acquired from Premier
Commercial Bancorp on July 31, 2012
Consistent Asset Growth
United in Our Dedication to Relationships
$102
$178
$260
$379
$457
$638
$800
$871
$118
$397*
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2005
2006
2007
2008
2009
2010
2011
9/30/2012
CUB Organic
Acquisitions
$1,268
PCB
acquisition
COSB
acquisition
13
$756 |
 Loan Growth
14
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2005
2006
2007
2008
2009
2010
2011
9/30/2012
$795
$421
CUB Organic
Acquisitions
$35
$96
$162
$232
$263
$334
$489
$540
$87
$255
PCB
acquisition
COSB
acquisition
United in Our Dedication to Relationships
|
 Loan Portfolio Composition
(September 30, 2012)
15
Multi-Family
Other
C&I
Owner-Occupied
CRE
Non-Owner
Occupied CRE
Construction
3%
2%
6%
8%
29%
22%
30%
1-4
Family
United in Our Dedication to Relationships
|
 Loans by Industry (C&I and Owner-Occupied)
(September 30, 2012)
16
Transportation
Restaurant/Lodging
Retail
Admin Mgmt
Construction
Education
Entertainment
Finance
Healthcare
Information
Other Services
Professional Svces
Real Estate
Wholesale
Manufacturing
14%
22%
6%
5%
3%
3%
13%
7%
1%
2%
7%
7%
1%
3%
7%
United in Our Dedication to Relationships |
 NPAs/Total Assets
17
Peer
Group
includes
public
banks
in
California
with
total
assets
between
$1.0-$1.5
billion
United in Our Dedication to Relationships
1.42%
1.24%
1.12%
1.10%
1.19%
1.05%
0.98%
1.07%
4.44%
4.90%
4.12%
3.54%
3.31%
3.18%
3.27%
3.11%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
CUNB
Peer Group Avg. |
 18
Peer
Group
includes
public
banks
in
California
with
total
assets
between
$1.0-$1.5
billion
United in Our Dedication to Relationships
1.57%
-
0.02%
0.22%
-
0.61%
0.23%
-
0.01%
0.49%
0.01%
1.29%
0.83%
1.13%
0.83%
0.73%
0.76%
1.41%
0.75%
-
1.00%
-
0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
CUNB
Peer Group Avg.
NCOs/Avg. Loans |
 19
CUB Organic
Acquisitions
$1,200
$1,000
$800
$600
$400
$200
$0
2005
2006
2007
2008
2009
2010
2011
9/30/2012
$658
$1,097
$278
$819
$691
$113
$545
$346
$246
$191
$116
$60
$60
COSB
acquisition
PCB
acquisition
United in Our Dedication to Relationships
Strong Deposit Growth |
 CDs
7.8%
Non-Int. Bearing
Demand
47.9%
MM and Savings
34.6%
Interest Bearing
Transaction
9.6%
United in Our Dedication to Relationships
Deposit Composition
(September 30, 2012)
20 |
 Transaction Accounts and Cost of Funds
21
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2006Y
2007Y
2008Y
2009Y
2010Y
2011Y
Q2 2012
Q3 2012
Peer Median (Transaction Accounts)
CUNB (Transaction Accounts)
CUNB (Cost of Funds)
Peer Median (Cost of Funds)
2.87
2.44
2.33
2.80
51.4
2.00
46.2
32.2
35.7
29.5
29.1
1.59
26.8
28.4
0.70
1.31
31.1
36.9
38.4
40.3
0.87
0.45
0.64
0.19
0.47
0.12
57.6
0.47
0.24
53.5
64.5
67.5
United in Our Dedication to Relationships
Peer Group includes public banks in California with total assets between
$1.0-$1.5 billion |
 United in Our Dedication to Relationships
CU Bancorp Capital Ratios
22
Tier 1 Leverage Capital Ratio (%)
Total Risk Based Capital Ratio (%)
10.01%
11.30%
5.00%
0%
2%
4%
6%
8%
10%
12%
CUNB
Peer Group
Avg.
FDIC Well
Capitalized
12.24%
16.04%
10.00%
0%
5%
10%
15%
20%
CUNB
Peer Group
Avg.
FDIC Well
Capitalized
United in Our Dedication to Relationships
Peer Group includes public banks in California with total assets between
$1.0-$1.5 billion |
 Merger Overview
23
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
United in Our Dedication to Relationships
|
 Merger of Two Attractive Franchises
24
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
United in Our Dedication to Relationships
|
 United in Our Dedication to Relationships
An Abundance of Synergies
25
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
26
•
Capture synergies from PCB merger
•
Expand non-interest income through increased SBA
loan production and sales
•
Continue attracting high performing bankers
•
Further penetrate existing footprint
•
Enhance efficiencies as we continue to scale
United in Our Dedication to Relationships
|
 Contact Information
27
•
For more information, please contact:
–
Karen Schoenbaum, CFO
(818) 257-7700
kschoenbaum@cunb.com
United in Our Dedication to Relationships
|