CU Bancorp - FORM 8-K - EX-99.1

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8-K - 8-K - CU Bancorp	d584650d8k.htm

Investor Presentation

Second Quarter 2013 Results

NASDAQ: CUNB

Exhibit 99.1

Forward-Looking Statements

This presentation contains certain forward-looking information about CU Bancorp and its wholly-owned subsidiary, 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 could reduce 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, accounting 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 Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by the Company

with the SEC. The documents filed with the SEC may be obtained on the Investor Relations page of the Company’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.

Corporate Overview

California United Bank (CUB) is a premier community-based

commercial bank serving 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)

Serving businesses, non-profit organizations, entrepreneurs and

professionals

Total assets of $1.28 billion

California

United

Bank

grew

total

assets

43%

CAGR

and

total

deposits

at a 51% CAGR since inception in 2005 through December 31, 2012

Investment Highlights

Emerging business banking franchise reaching an inflection

point in profitability

Attractive low-cost core deposit base

Non-interest bearing deposits comprise 52% of total deposits at 6/30/13

Cost of deposits was 14 bps in Q2 2013

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 Bancorp (PCB)

enhances earnings power

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

Added to Russell Indexes in June 2013

Strategic Geographic Locations

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*

*New combined location (August 2013)

Encino

CUB Branch

CUB LPO

Former COSB

Branch

Former PCB

Branch

California

United Bank has a

footprint that spans the

most attractive markets in

Southern California:

CUB Market Overview

Large and Diverse Market

County

would

largest

state

U.S.

Orange

County

would

largest

state

U.S.

Los Angeles is largest manufacturing center in U.S.

5-County

area*

accounts

for

47%

California

economy

and

would

largest state in U.S.

Huge Demand for

Small-

and Middle-Market Banking

**Small-

and Middle-Market Businesses defined as businesses with between 1 and 499 employees

Source: Los Angeles Economic Development Commission (as of 2011)

*5-County area consists of Los Angeles, Orange, Ventura, Riverside and San Bernardino Counties

Over

650,000

small-

and

middle-market

businesses**

5-County

area

Robust Market for Community Banks

Number of Small-

and

Middle-Market Businesses*

Net Annual Growth in

Number of Small-

and Middle-

Market Businesses*

*Small-

and Middle-Market Businesses defined as

businesses with between 1 and 499 employees

Source: California EDD (as of 2011)

24,050

103,773

438,141

Ventura County

Orange County

LA County

-10,000

10,000

20,000

30,000

40,000

37,050

-9,095

8,087

15,655

LA County

Orange County

Ventura County

2008

2009

2010

2011

Why We Are Different

CUB 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 many

community 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

Our customer base reflects the diversity

of industries in Southern California

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

CUB employees are involved in their

local communities

Strong cultural value demonstrates

that supporting the community is

also good business

CUB supports over 75 charities

throughout Southern California

financially and with volunteer hours

Local advisory board members help

identify worthy charitable

organizations to support

“Outstanding”

CRA Rating

Experienced Management

*Formerly EVP at Premier Commercial Bank, N.A.

Name

Title

Functional

Banking Exp

CUB Tenure

David Rainer

President

Chief Executive Officer

33 years

8 years

Anne Williams

EVP

Chief Operating Officer and Chief

Credit Officer

33 years

8 years

Karen Schoenbaum

EVP

Chief Financial Officer

20 years

4 years

Anita Wolman

EVP

General Counsel

36 years

8 years

Sam Kunianski

EVP

Executive Manager –

Commercial and

Private Banking

29 years

7 years

William Sloan

EVP

Executive Manager –

Real Estate and

Santa Clarita Regional Manager

29 years

8 years

Stephen Pihl

EVP

Executive Manager –

SBA and Orange

County Regional Manager

26 years

1 year*

A History of Success

The Management Team at California United Bank has three decades of banking

experience

the

Southern

California

Market.

The

same

Executive

Team

that

created success at the banks below are now in charge at California United Bank.

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

$1.28 billion in total assets at June 30, 2013

Our Growth Strategy

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

New SBA lending expertise provided by PCB

California Oaks State Bank (12/31/10)

Premier Commercial Bank (7/31/12)

Leverage relationship-based approach and superior service

to win customers from larger banks

Merger Overview

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 enables the bank to

expand available services and penetrate additional markets

Southern California’s

Preeminent Business Bank

Realizing Synergies from PCB

Combined breadth of products and

services increasing business

development capabilities

throughout footprint

PCB’s award-winning SBA lending

platform is being leveraged

throughout CUB’s markets

Improving PCB’s deposit mix and

reducing funding costs

Elimination of redundancies is

providing meaningful cost savings

and enhancing efficiencies

Greater scale is enabling better

absorption of increasing regulatory

compliance costs

TBV/Share Recovery

PCB acquired

on 7/31/12

$10.85

$10.17

$10.37

$10.60

$10.78

$10.00

$10.50

$11.00

Shareholders of CUB Acquisitions

Well Rewarded

COSB

8/24/10

$6.00

CUNB

8/13/13

$17.92

PCBP

12/8/11

$9.00

CUNB

8/13/13

$17.92

44.5%

CAGR

50.5%

CAGR

California

Oaks

State

Bank

–

Acquisition

announced

August

24,

2010

From announcement through 8/13/2013, COSB shareholders rewarded

with compound annual

growth rate equal to 44.5% after 1,086 days*

Premier

Commercial

Bancorp

–

Acquisition

announced

December

2011

From announcement through 8/13/2013, PCB shareholders rewarded with compound annual

growth rate equal to 50.5% after 615 days

*Applies to shareholders who elected to receive 100% compensation in CUNB stock

First Half 2013 Highlights

Net income increases to $4.5 million from $1.0 million

+334% YoY

Solid loan growth of 3.5%

$49 million in net organic loan growth

Offset by $19 million in loan run-off from acquired portfolios

High quality deposit growth

5% growth in non-interest bearing demand deposits

Ramp-up in SBA lending

1H gain on sale of SBA loans rises to $410K from $0 last year

Continued strong credit quality

NCOs of 0.08% of average loans

Note: YoY defined as 1H 2013 vs. 1H 2012

Increasing Core Earnings

Core earnings reconciliation to net income provided in Appendix

2011

2012

2013

$4,989

$1,076

$1,683

$1,596

$3,929

$1,627

$1,046

$1,134

$803

$3,693

$3,500

$4,500

$5,500

$500

$1,500

$2,500

Improving Operating Leverage

3Q12 operating expenses excludes $2.5 million in merger-related expenses

$10

$11

$12

$13

$14

$15

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

Revenue

Operating Expenses

Impact of PCB Merger

Core earnings reconciliation to net income provided in Appendix

$2,761

$8,682

$2,000

$4,000

$6,000

$8,000

$10,000

1H12

1H13

Core Earnings*

84%

69%

50%

60%

70%

80%

90%

100%

1H12

1H13

Efficiency Ratio

0.29%

0.70%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1H12

1H13

ROAA

2.53%

7.02%

0.00%

2.00%

4.00%

6.00%

8.00%

1H12

1H13

ROAE

Consistent Asset Growth

*Represents the assets acquired from Premier Commercial Bancorp on July 31, 2012

$102

$178

$260

$379

$457

$638

$800

$853

$1,279

$200

$400

$600

$800

$1,000

$1,200

$1,400

2005

2006

2007

2008

2009

2010

2011

2012

2Q13

CUB Organic

Acquisitions

$1,250

$756

COSB

acquisition

$397*

PCB

acquisition

$118

Loan Growth

Q2 2013 Loan Growth = $24MM or 2.8%

CUB Organic

Acquisitions

PCB

acquisition

COSB

acquisition

Loan Portfolio Composition

(June 30, 2013)

C&I

31%

Owner-

Occupied CRE

20%

Non-Owner

Occupied CRE

30%

Construction

1-4 Family

Multi-Family

Other

Loans by Industry

(C&I and Owner-Occupied)

(June 30, 2013)

Note: Based on NASICS codes

Admin Mgmt

Construction

Other

Entertainment

Finance

Healthcare

Manufacturing

15%

Other Services

Professional Svces

Real Estate

25%

Restaurant/Food

Service

Hotel/Lodging

Retail

Transportation

Wholesale

10%

NPAs/Total Assets

Peer Group includes public banks or bank holding companies in California with total assets between $1.0-$2.0 billion

0.00%

1.12%

1.42%

1.19%

1.05%

0.98%

1.07%

1.09%

1.07%

1.06%

2.55%

5.26%

4.44%

3.31%

3.18%

3.27%

2.91%

2.62%

2.01%

1.37%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2008

2009

2010

2011

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

CUB

Peer Group Avg.

NCOs/Avg. Loans

Peer Group includes public banks or bank holding companies in California with total assets between $1.0-$2.0 billion

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2008

2009

2010

2011

2012

1Q13

2Q13

CUB

Peer Group Avg.

0.00%

0.80%

0.49%

-0.04%

0.08%

0.01%

0.27%

1.01%

1.98%

1.51%

0.88%

0.90%

0.24%

0.14%

2013 YTD NCOs = 0.08%

Quality Deposit Growth

$60

$116

$191

$246

$346

$545

$691

$800

$1,098

$113

$278

$200

$400

$600

$800

$1,000

$1,200

2005

2006

2007

2008

2009

2010

2011

2012

2Q13

CUB Organic

Acquisitions

$1,078

PCB

acquisition

$658

COSB

acquisition

Q2 2013 Non-Interest Bearing Growth = $14MM

Deposit Composition

(June 30, 2013)

Non

Int.

Bearing

Demand

52.0%

Interest

Bearing

Transaction

11.6%

MM and

Savings

30.9%

CDs

5.5%

Transaction Accounts and Cost of Funds

Peer Group includes public banks or bank holding companies in California with total assets between $1.0-$2.0 billion

CU Bancorp Capital Ratios

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-$2.0 billion

Shifting from Growth

to High Performance

Continue realizing synergies from the

merger with PCB

Continue attracting high performing bankers

Further penetrate existing footprint

Enhance efficiencies as we continue to scale

Expand non-interest income through

increased SBA loan production and sales

Contact Information

For more information, please contact:

Karen Schoenbaum, CFO

(818) 257-7700

kschoenbaum@cunb.com

Appendix

Reconciliation of Core Earnings to Net Income (Loss)

2Q13

1Q13

4Q12

3Q12

2Q12

1Q12

4Q11

3Q11

2Q11

1Q11

Net Income (Loss)

2,321

2,155

1,628

(932)

525

506

306

601

312

248

Add back: Provision for income tax expense (benefit)

1,515

1,366

1,166

(453)

502

450

181

454

242

270

Add back: Provision for loan losses

1,153

134

867

521

380

781

467

194

Subtract: Gain on sale of securities, net

144

Subtract: Other-than-temporary impairment losses, net

(65)

(30)

(130)

(19)

(70)

(45)

Add back: Merger related expenses

203

2,517

190

148

198

190

Core Earnings

4,989

3,693

3,929

1,683

1,627

1,134

1,596

1,076

1,046

803

CU Bancorp - FORM 8-K - EX-99.1 - August 14, 2013

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