california banks and thrifts: inside this issuecarpentercompany.com/uploads/files/52826737_monthly...

CaliforniaBanksandThrifts:MonthlyStockPerformanceReport

Insidethisissue

Overview for June ................................... 2

LTM P/E Ra os ........................................ 3

Price/Book Ra os ................................... 4

Industry Ra o Comparison ..................... 5

Assets Under $125M .............................. 6

Assets Between $125M and $250M .... 7‐8

Assets Between $250M and $500M ....... 9

Assets Between $500M and $1B .......... 10

Assets Between $1B and $5B ................ 11

Assets Between $5B and $10 B ............. 12

Assets Over $10B .................................. 12

California Thri s ................................... 13

Appendix—Economic and Banking Update

ReportforAugust2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTOVERVIEW OF MARKET PERFORMANCE BY PEER GROUP

California Banks: Overview of Market Performance

by Asset Group for August 2014

This report groups banks according to asset size as of June 30, 2014. The number of publicly-traded California banks with less than $125 million in assets was unchanged in August. Of the 17 banks in this group, five rose in stock price, nine declined in price, and three were unchanged, including one bank that did not trade. Three stocks reported price gains in excess of 10%, notably: CABB (47%), USMT (33%), and CKTM (12%). At the end of August, the average Price to Tangible Book Value (P/TBV) equaled 0.75x, which was marginally lower than the 0.76x average at the end of July. The average price to LTM (last 12 months through June 2014) earnings ratio equaled 15.3x in August, compared with 13.3x in July.

Within the class of banks with $125 to $250 million in assets, ACAL was dropped from coverage due to the lack of any trading activity over the past year. Of the 39 banks remaining in this group, 13 reported stock price gains in August, 19 declined in price, and 7 were unchanged in price. One bank did not trade in the month. There were no significant gains in stock prices recorded. The average P/E ratio for this group equaled 13.5x in July and fell to 12.9x in August. The average P/TBV was unchanged over the month at 1.07x.

The number of banks with $250 to $500 million in assets increased by one in August, as coverage commenced for TFCH, which initiated trading in May. Of the 23 banks in this category, 15 reported gains in stock prices, and 8 recorded price declines. Significant price gains were reported by TFCH (11%) and IDPK (10%). The average P/E ratio at the end of August equaled 17.7x, essentially unchanged from July. The average Price to Tangible Book Value equaled 1.21x at the end of August, compared to the 1.22x average in July.

The number of banks with assets between $500 million and $1 billion was unchanged in August. Of the 21 banks in the group, 8 recorded stock price gains, and 13 declined in stock price. Significant price gains were experienced by SWBC (15%) and PFCF (12%). The average Price to LTM Earnings ratio as of August month-end equaled 16.0x, up from 14.9x in July. The average Price to Tangible Book Value ratio was little changed in August, averaging 1.20x from 1.19x in July.

The number of banks with $1-$5 billion in assets was unchanged in August. For the 21 banks in this class, 16 reported stock price gains and 5 declined in price. EXSR experienced a significant 10% price gain last month. The average P/E ratio equaled 16.6x at the end of August, up from the 16.2x average for July. The Price/Tangible Book Value ratio averaged 1.53x at the end of August, compared with the 1.50x average ratio in July.

All six banks in the $10 and $100 billion asset class increased in stock price during August. There were no significant price gains. The P/E ratio for this group averaged 20.1x in August, up from the 19.7x ratio of July. The Price/Tangible Book Value ratio climbed slightly to 2.13x in August from the 2.09x average at the end of July.

Of the six publicly-traded California thrifts, four thrifts reported stock price gains, one thrift declined in price, and one was unchanged. All thrifts traded during the month. There were no significant price gains in the month. The average Price to LTM Earnings ratio equaled 17.9x at the end of August, off from 18.6x in July. The Price/Tangible Book Value average climbed to 1.80x in August compared with 1.77x in July.

2

Two of the three banks in the $5-$10 billion asset class increased in stock price for the month of August. There were no significant price gains. The average ratio for Price/Tangible Book Value equaled 1.58x at the end of August, little changed from 1.57x in the prior month. The average price to LTM earnings ratio in August equaled 14.2x, up slightly from the 14.1x rate at the end of July.

Under$125M

$125M‐$250M

$250M‐$500M

$500M‐$1B

$1B‐$5B

$5B‐$10B

$10B‐$100B

CaliforniaThrifts

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTAVERAGE LTM P/E RATIOS BY ASSET GROUP

3 Informa on is gathered from sources believed to be reliable, however, the accuracy of the data cannot be guaranteed.

8/29/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 15.30 13.29 16.56 15.13% -7.59%$125M - $250M 12.89 13.48 16.13 -4.40% -20.11%$250M - $500M 17.65 17.72 17.88 -0.39% -1.29%$500M - $1Bn 16.02 14.94 14.74 7.27% 8.73%$1Bn - $5Bn 16.62 16.18 16.89 2.70% -1.63%$5Bn - $10Bn 14.19 14.07 18.47 0.88% -23.16%Over $10Bn 20.07 19.71 19.42 1.81% 3.30%CA Thrifts 17.89 18.57 16.45 -3.66% 8.72%

*LTM= Last Twelve Months. LTM P/E calculated based on last twelve months earnings through 6/30/2014.

Average LTM* P/E Ratio

0

5

10

15

20

25

Under$125M

$125M -$250M

$250M -$500M

$500M -$1Bn

$1Bn -$5Bn

$5Bn -$10Bn

Over$10Bn

CAThrifts

12/31/2013 Previous Month 8/29/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTPRICE/BOOK RATIOS BY ASSET GROUP


8/29/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 0.75 0.76 0.75 -0.88% 0.49%$125M - $250M 1.07 1.07 1.08 -0.29% -1.55%$250M - $500M 1.21 1.22 1.18 -0.84% 2.43%$500M - $1Bn 1.20 1.19 1.19 1.08% 1.18%$1Bn - $5Bn 1.53 1.50 1.68 2.46% -8.70%$5Bn - $10Bn 1.58 1.57 2.14 0.60% -26.31%Over $10Bn 2.13 2.09 2.34 1.96% -8.97%CA Thrifts 1.80 1.77 1.83 2.01% -1.32%

Average Price/T. Book Ratio

0.0

0.5

1.0

1.5

2.0

2.5

Under$125M

$125M -$250M

$250M -$500M

$500M -$1Bn

$1Bn -$5Bn

$5Bn -$10Bn

Over$10Bn

CAThrifts

12/31/2013 Previous Month 8/29/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTINDUSTRY‐WIDE RATIO COMPARISON


California Banks SNL Banks California Banks SNL Banks California Banks SNL BanksTotal Assets:

Less than $250M 0.98 NA 0.99 NA 0.75 3.27Less than $500M 1.05 1.27 1.05 1.20 1.05 1.23$250M - $500M 1.21 1.19 1.22 1.20 1.18 1.15$500M - $1Bn 1.20 1.18 1.19 1.24 1.19 1.27$1Bn - $5Bn 1.53 1.68 1.50 1.63 1.68 2.05$5Bn - $10Bn 1.58 2.08 1.57 2.07 2.14 2.36Over $10Bn 2.13 1.68 2.09 1.68 2.34 1.73Thrifts 1.80 1.59 1.77 1.67 1.83 1.73

Carpenter California Banks - SNL Bank Index: Price/Tangible Book Ratio (x)

8/29/2014 Previous Month 12/31/2013

0.00

0.50

1.00

1.50

2.00

2.50

Less than$250M

Less than$500M

$250M -$500M

$500M -$1Bn

$1Bn - $5Bn $5Bn -$10Bn

Over $10Bn Thrifts

Current Month Comparison

California Banks SNL Banks

California Banks SNL Banks California Banks SNL Banks California Banks SNL BanksTotal Assets:

Less than $250M 13.62 NA 13.45 NA 16.24 24.47Less than $500M 15.03 14.26 14.87 12.51 16.78 14.12$250M - $500M 16.82 14.26 16.89 12.51 17.88 13.92$500M - $1Bn 16.02 16.96 14.94 16.41 14.74 14.65$1Bn - $5Bn 16.62 17.81 16.18 17.89 16.89 18.54$5Bn - $10Bn 14.19 19.00 14.07 19.42 18.47 20.22Over $10Bn 20.07 16.33 19.71 14.21 19.42 15.15Thrifts 17.89 26.25 18.57 25.33 16.45 19.91

Previous Month 12/31/20138/29/2014

Carpenter California Banks - SNL Bank Index: Price/LTM EPS Ratio (x)

0.005.00

10.0015.0020.0025.0030.00

Less than$250M

Less than$500M

$250M -$500M

$500M -$1Bn

$1Bn - $5Bn $5Bn -$10Bn

Over $10Bn Thrifts

Current Month Comparison

California Banks SNL Banks

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS Under $125 MILLION TOTALMARKETCAPITALIZATION:$134MILLION


Symbol Name Monthly Mkt Cap LTM Price/Date Price ($) Volume ($) P/E T. Book ($) (%) ($) (%)

CABB CALIFORNIA BUSINESS BANK 29-Aug 1.25 27,450 4,456,965 N/M 0.32 0.40 47.1% 1.03 468.2%CKTM COMMERCE BANK OF TEMECULA VA 22-Aug 4.50 8,667 6,760,683 N/M 0.77 0.50 12.5% 0.25 5.9%CMUV COMMUNITY VALLEY BANK 25-Aug 5.30 36,614 8,645,906 7.16 0.83 0.00 0.0% 0.15 2.9%CTBP COAST BANCORP 27-Aug 1.82 1,305 10,277,323 2.33 N/M -0.18 -9.0% -0.10 -5.2%DEBC DELTA NATIONAL BANCORP 15-May 7.00 49 2,662,121 N/M 0.33 0.00 0.0% 0.00 0.0%FHLB FRIENDLY HILLS BANK 29-Aug 7.95 97,583 12,847,200 33.13 0.98 0.65 8.9% 2.93 58.4%GSBB GOLDEN STATE BANK 14-Aug 0.50 670 922,300 N/M 0.24 -0.35 -41.2% 0.32 170.3%MOLB MOTHER LODE BANK 28-Aug 1.25 10,284 5,547,481 N/M 1.10 -0.25 -16.7% 0.00 0.0%PAMB PAN AMERICAN BANK 16-May 0.12 0 4,094,412 N/M N/M 0.00 0.0% -0.03 -20.0%PBKX PARTNERS BANK OF CALIFORNIA 22-Aug 2.95 1,500 5,606,233 N/M N/M 0.25 9.3% -4.05 -57.9%PPFC PAN PACIFIC BANK 21-Aug 2.60 76,000 12,886,102 4.28 0.73 -0.07 -2.6% 0.15 6.1%SAGN SAIGON NATIONAL BANK 22-Aug 0.11 3,807 7,289,746 N/M N/M -0.08 -41.7% -0.06 -34.4%SFRK SECURITY FIRST BANK 27-Aug 5.30 2,818 9,010,000 25.67 0.73 -0.20 -3.6% 1.13 27.1%SUTB SUTTER COMMUNITY BANK 28-Aug 5.00 9,299 4,758,390 30.50 0.53 -0.15 -2.9% -0.75 -13.0%SVBA SIERRA VISTA BANK 28-Aug 4.80 574 19,259,851 4.03 1.20 -0.25 -5.0% 2.27 89.7%TRVB TRI-VALLEY BANK 29-Aug 0.29 55,924 7,198,679 N/M 0.91 -0.01 -3.3% -0.10 -25.6%USMT US METRO BANK 19-Aug 2.00 19,604 11,960,000 N/M 1.07 0.50 33.3% 0.75 60.0%

Average 15.30 0.75Median 7.16 0.77

High 33.13 1.20Low 2.33 0.24

8/29/2014Monthly ChangeLast Trade YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$689MILLION


Theremaining19publicly‐tradedcompaniesinthisassetclassarelistedonpage8.


ARBV AMERICAN RIVIERA BANK 29-Aug 9.99 39,035 25,814,480 18.85 1.11 0.00 0.0% -0.51 -4.9%AUNB AMERICAS UNITED BANK 26-Aug 7.85 22,630 22,593,478 5.29 0.98 -0.25 -3.1% 2.10 36.5%BNNP BANK OF NAPA NA 28-Aug 8.26 16,115 18,906,182 12.71 0.94 -0.30 -3.5% -0.44 -5.1%CALW CALWEST BANCORP 26-Aug 1.40 27,599 3,530,083 23.33 N/M -0.12 -7.9% -0.30 -17.6%CBBC COMMUNITY BUSINESS BANK 18-Aug 8.95 2,000 19,348,987 11.01 1.06 -0.05 -0.6% 0.05 0.6%CBJC CAPITAL BANK 26-Aug 18.99 2,390 29,512,302 11.31 1.76 0.88 4.9% -0.51 -2.6%CBYAA COMMUNITY BANK OF THE BAY 29-Aug 4.15 91,872 17,147,485 9.02 1.27 -0.10 -2.4% -0.25 -5.7%CCBC CHINO COMMERCIAL BANCORP 29-Aug 15.14 13,224 13,877,445 12.52 1.50 0.14 0.9% -0.76 -4.8%CFBN COMMUNITY 1ST BANK 29-Aug 3.60 36,416 19,617,271 18.00 1.14 -0.40 -10.0% -0.40 -10.0%CNYB COUNTY COMMERCE BANK 25-Aug 18.46 8,283 26,459,623 14.47 1.37 0.46 2.6% 2.36 14.7%CRSB CORNERSTONE COMMUNITY BANK 27-Aug 9.05 5,650 10,964,844 13.71 0.84 -0.55 -5.7% 0.55 6.5%CYSM COMMUNITY BANK OF SANTA MARIA 13-Aug 6.90 6,088 16,447,916 18.22 0.93 -0.10 -1.4% 0.00 0.0%FBBN BANK OF SOUTHERN CALIFORNIA NA 26-Aug 6.94 43 22,648,926 18.26 1.23 0.00 0.0% -0.06 -0.9%FBCP FOUNDERS BANCORP 29-Aug 11.45 21,545 13,268,638 12.18 1.13 0.60 5.5% 1.15 11.2%FMBP FIRST MOUNTAIN BANK 20-Aug 6.00 23,243 9,389,556 9.64 N/M -0.45 -7.0% -1.30 -17.8%FOLB FOLSOM LAKE BANK 28-Aug 8.55 8,151 13,621,099 12.39 1.09 0.11 1.3% 1.45 20.4%FSNF FRESNO FIRST BANK 29-Aug 9.45 15,143 18,550,492 11.64 1.18 0.20 2.2% -0.55 -5.5%FTFS F&T FINANCIAL SERVICES, INC. 26-Aug 70.00 210 20,524,140 N/M 0.67 1.95 2.9% 1.50 2.2%GVYB GOLDEN VALLEY BANCORP 28-Aug 11.25 403 22,144,748 16.39 1.35 0.25 2.3% 1.85 19.7%LGHT LIGHTHOUSE BANK 27-Aug 11.61 10,155 24,847,223 11.06 1.14 0.01 0.1% 0.71 6.5%

Monthly ChangeLast Trade YTD Change8/29/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$689MILLION




LIBC LIBERTY BANCORP INC 29-Aug 12.00 73 10,639,344 6.86 0.87 0.00 0.0% 0.00 0.0%MNBO MNB HOLDINGS CORP 28-Aug 37.00 1,212 16,937,601 N/M N/M 0.00 0.0% 11.00 42.3%NCNB NORTHERN CALIFORNIA NATIONAL B 15-Aug 9.50 2,500 12,918,727 15.18 0.92 -0.50 -5.0% 0.75 8.6%NRLB NORTHERN CALIFORNIA BANCORP IN 22-Aug 1.05 643 1,875,186 N/M N/M -0.01 -0.9% -0.15 -12.5%NWBN NEW RESOURCE BANK 29-Aug 4.71 103,705 26,905,201 19.25 0.99 0.11 2.4% 0.76 19.2%OCBB ORANGE COUNTY BUSINESS BANK NA 29-Aug 6.25 32,482 29,528,600 N/M 0.85 0.00 0.0% -1.00 -13.8%OJCB OCB BANCORP 27-Aug 5.50 29,888 12,016,494 22.81 0.98 -0.40 -6.8% -0.50 -8.3%PBNK PINNACLE BANK 22-Aug 7.25 7,203 23,859,808 3.63 1.13 0.10 1.4% 1.97 37.3%PFBN PACIFIC ALLIANCE BANK 24-Jun 4.90 0 9,102,661 10.65 0.60 0.00 0.0% 0.00 0.0%PFCI PACIFIC COMMERCE BANK 27-Aug 5.00 16,000 22,306,275 4.00 1.08 -0.10 -2.0% 0.75 17.6%PMRA PROMERICA BANK 29-Aug 5.90 29,850 16,348,900 3.88 0.76 -0.20 -3.3% 0.85 16.8%PVBK PACIFIC VALLEY BANK 29-Aug 6.75 3,418 24,279,419 4.89 1.01 -0.25 -3.6% -3.35 -33.2%RVVY RIVER VALLEY COMMUNITY BANK 26-Aug 14.00 9,842 24,318,602 24.63 1.35 -0.75 -5.1% -3.00 -17.6%SBKK SUNCREST BANK 27-Aug 6.95 1,250 13,315,519 4.36 0.90 -0.30 -4.1% 1.05 17.8%SCVE SANTA CLARA VALLEY BANK NA 25-Aug 5.89 57,886 11,380,464 N/M 1.15 0.02 0.3% 0.29 5.2%SMAL SUMMIT BANCSHARES INC 27-Aug 15.75 278 20,477,804 15.00 1.03 -1.00 -6.0% 4.45 39.4%UIFC UNITI FINANCIAL CORP 26-Aug 1.85 5,278 22,904,400 17.24 1.10 -0.30 -14.0% 0.48 35.0%VBBK VIBRA BANK 18-Aug 20.50 691 15,146,733 N/M 1.25 0.00 0.0% 2.50 13.9%VCBC VALLEY COMMUNITY BANK 28-Aug 3.05 9,328 5,730,602 N/M 0.61 0.05 1.7% 0.80 35.6%

Average 12.89 1.07Median 12.46 1.08

High 24.63 1.76Low 3.63 0.60

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $250 MILLION AND $500 MILLION MARKETCAPITALIZATION:$1.0BILLION



ABNK ALTAPACIFIC BANK 29-Aug 10.70 56,131 58,600,497 27.37 1.24 0.25 2.4% 3.30 44.6%AVBH AVIDBANK HOLDING 28-Aug 11.55 17,925 50,084,173 23.57 1.00 0.03 0.3% -0.15 -1.3%BSCA BANK OF SANTA CLARITA 29-Aug 9.06 54,514 20,163,112 19.70 0.89 -0.12 -1.3% 0.11 1.2%CABC CALIFORNIA BANK OF COMMERCE 22-Aug 11.50 21,909 49,579,352 10.73 1.08 0.05 0.4% 0.60 5.5%CWBK COMMERCEWEST BANK 29-Aug 14.34 137,822 60,933,657 15.42 1.24 0.09 0.6% 0.44 3.2%FCSB FOCUS BUSINESS BANK 20-Aug 9.35 18,218 27,561,201 23.97 0.99 0.29 3.2% 0.45 5.1%FISB 1ST CAPITAL BANK 27-Aug 11.80 157,992 43,876,695 22.69 1.11 0.08 0.7% 0.47 4.1%GSCB GREATER SACRAMENTO BANCORP 26-Aug 17.00 3,976 44,494,780 16.50 1.18 0.45 2.7% 1.80 11.8%IDPK INDEPENDENCE BANK 29-Aug 12.00 59,466 57,585,540 19.67 N/M 1.10 10.1% 4.00 50.0%MSBC MISSION BANCORP 29-Aug 27.62 5,004 39,122,128 14.24 1.09 -0.30 -1.1% 3.57 14.8%MVLY MISSION VALLEY BANCORP 29-Aug 6.15 20,674 16,182,083 18.09 0.98 -0.25 -3.9% -0.35 -5.4%NCAL NCAL BANCORP 27-Aug 0.43 8,975 1,034,255 N/M N/M -0.57 -57.0% -0.12 -21.8%OPBK OPEN BANK 29-Aug 7.90 29,735 96,976,324 23.94 1.55 -0.40 -4.8% 0.40 5.3%PDOB PRESIDIO BANK 28-Aug 12.05 10,975 50,597,950 19.13 1.29 0.30 2.6% 2.10 21.1%RWCB REDWOOD CAPITAL BANCORP 26-Aug 9.75 4,318 18,148,757 8.94 1.09 0.45 4.8% 0.94 10.7%SCCB SEACOAST COMMERCE BANK 29-Aug 10.10 29,245 56,855,304 19.06 2.26 -0.20 -1.9% 2.10 26.3%SCZC SANTA CRUZ COUNTY BANK 27-Aug 20.40 40,278 43,582,315 11.72 1.22 0.57 2.9% 2.65 14.9%SDPB SAN DIEGO PRIVATE BANK 28-Aug 13.10 7,117 53,574,219 14.89 1.10 0.20 1.6% 1.41 12.1%SSBI SUMMIT STATE BANK 29-Aug 13.02 139,691 62,233,491 13.43 1.32 0.44 3.5% 2.52 24.0%TFCH TFC HOLDING COMPANY 28-Aug 9.30 167,250 61,793,459 10.08 0.98 0.92 11.0% -0.70 -7.0%UABK UNITED AMERICAN BANK 27-Aug 0.36 26,414 16,212,563 N/M N/M -0.24 -40.0% 0.14 63.7%VCBP VALLEY COMMERCE BANCORP 28-Aug 14.95 16,332 43,616,954 11.24 1.03 0.15 1.0% 1.44 10.7%VLLX VALLEY REPUBLIC BANK 14-Aug 16.25 1,300 56,652,083 26.21 1.47 -0.75 -4.4% -0.03 -0.2%

Average 17.65 1.21Median 18.09 1.11

High 27.37 2.26Low 8.94 0.89

8/29/2014Last Trade Monthly Change YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $500 MILLION AND $1 BILLION MARKETCAPITALIZATION:$1.8BILLION


Symbol Name Monthly Mkt Cap LTM LTM Price/Date Price ($) Volume ($) EPS($) P/E T. Book ($) (%) ($) (%)

AMRB AMERICAN RIVER BANKSHARES 29-Aug 9.30 267,480 75,233,420 20.67 20.67 1.06 0.17 1.9% -0.15 -1.6%BCML BAY COMMERCIAL BANK 28-Aug 11.35 152,930 53,656,637 14.55 14.55 1.02 0.45 4.1% 1.65 17.0%BOCH BANK OF COMMERCE HLDG 29-Aug 6.12 221,327 81,357,915 13.30 13.30 1.01 -0.22 -3.4% 0.41 7.2%CFNB CALIFORNIA FIRST NATIONAL BANCORP 29-Aug 14.55 50,218 152,191,894 21.72 21.72 0.84 -0.03 -0.2% -0.55 -3.6%CRPB CALIFORNIA REPUBLIC BANK 29-Aug 27.99 60,655 148,791,453 18.37 18.37 2.18 -0.31 -1.1% 4.29 18.1%CWBB COMMONWEALTH BUSINESS BANK 29-Aug 22.30 59,815 86,348,008 8.61 8.61 1.23 -0.05 -0.2% 0.90 4.2%CWBC COMMUNITY WEST BANCSHARES 29-Aug 6.60 122,729 54,116,918 6.88 6.88 0.96 -0.15 -2.2% 0.04 0.6%FCTY 1ST CENTURY BANCSHARES 29-Aug 7.44 74,764 75,486,820 32.35 32.35 1.28 -0.09 -1.2% 0.29 4.1%FENB 1ST ENTERPRISE BANK 29-Aug 24.60 33,342 94,396,079 20.85 20.85 1.69 -0.05 -0.2% 5.30 27.5%FNBG FNB BANCORP 29-Aug 28.15 11,579 113,951,200 14.08 14.08 1.28 -0.11 -0.4% 0.15 0.5%FNRN FIRST NORTHERN COMMUNITY BANCOR 29-Aug 7.50 141,666 73,503,420 14.82 14.82 0.97 -0.23 -3.0% 0.30 4.2%MNHN MANHATTAN BANCORP 29-Aug 3.65 17,058 45,983,678 24.33 24.33 0.94 -0.05 -1.4% -0.51 -12.3%NOVB NORTH VALLEY BANCORP 29-Aug 21.00 564,052 143,565,723 40.38 40.38 1.45 -0.04 -0.2% 2.09 11.1%OVLY OAK VALLEY BANCORP 29-Aug 10.22 31,072 82,535,238 11.23 11.23 1.16 0.25 2.5% 1.85 22.1%PFCF PACIFIC CITY FINANCIAL CORP 18-Aug 14.00 3,412 117,222,014 5.88 5.88 1.66 1.50 12.0% 10.00 250.0%PLBC PLUMAS BANCORP 29-Aug 7.86 115,165 37,689,793 9.70 9.70 1.12 0.23 3.0% 1.64 26.4%PLZB PLAZA BANK 29-Aug 2.90 10,659 49,946,297 9.35 9.35 0.96 -0.12 -4.0% -0.08 -2.7%PVLY PREMIER VALLEY BANK 28-Aug 6.00 80,426 74,592,000 10.71 10.71 1.37 0.03 0.5% 0.18 3.1%SCAF SECURITY CALIFORNIA BANCORP 29-Aug 10.45 36,200 59,261,072 17.53 17.53 1.00 0.10 1.0% 0.84 8.7%SWBC SUNWEST BANK 28-Aug 39,000.00 15 86,385,000 9.84 9.84 0.90 5097.88 15.0% 6000.00 18.2%UBFO UNITED SECURITY BANCSHARES 29-Aug 5.79 222,280 87,413,263 11.31 11.31 1.16 -0.06 -1.0% 0.87 17.7%

Average 16.02 1.20Median 14.08 1.12

High 40.38 2.18Low 5.88 0.84


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $1 BILLION AND $5 BILLION MARKETCAPITALIZATION:$7.8BILLION



AMBZ AMERICAN BUSINESS BANK 29-Aug 30.70 26,154 152,039,171 13.00 1.39 0.70 2.3% 0.42 1.4%BANC BANC OF CALIFORNIA 29-Aug 12.02 3,721,389 333,671,426 N/M 1.05 0.15 1.3% -1.39 -10.4%BBNK BRIDGE CAPITAL HOLDINGS 29-Aug 22.37 283,268 355,079,569 19.80 2.05 1.04 4.9% 1.83 8.9%BMRC BANK OF MARIN BANCORP 29-Aug 48.89 323,679 289,721,162 17.78 1.60 4.07 9.1% 5.50 12.7%BSRR SIERRA BANCORP 29-Aug 17.37 404,453 242,663,520 16.39 1.34 1.57 9.9% 1.28 8.0%CUNB CU BANCORP 29-Aug 18.71 499,522 210,186,924 19.90 1.61 0.15 0.8% 1.23 7.0%CVCY CENTRAL VALLEY COMMUNITY BAN 29-Aug 11.52 283,815 125,889,696 12.39 1.27 -0.98 -7.8% 0.27 2.4%EXSR EXCHANGE BANK 26-Aug 87.00 8,797 149,147,928 8.90 0.96 8.25 10.5% 18.00 26.1%FMCB FARMERS & MERCHANTS BANCORP ( 29-Aug 444.94 817 346,110,817 14.05 1.56 1.05 0.2% 27.94 6.7%HAFC HANMI FINANCIAL CORP 29-Aug 20.55 2,127,640 654,752,304 15.57 1.54 -0.57 -2.7% -1.34 -6.1%HEOP HERITAGE OAKS BANCORP 29-Aug 7.11 790,445 234,860,620 37.42 1.49 -0.03 -0.4% -0.39 -5.2%HTBK HERITAGE COMMERCE CORP 29-Aug 8.32 585,379 219,402,643 20.80 1.37 0.32 4.0% 0.08 1.0%MCHB MECHANICS BANK 22-Aug 17,200.00 22 333,336,000 17.70 1.09 1100.00 6.8% 4200.00 32.3%OPB OPUS BANK 29-Aug 31.69 952,023 890,503,799 6.59 N/M 1.99 6.7% 1.69 5.6%PFBC PREFERRED BANK 29-Aug 24.02 414,459 323,148,650 14.74 1.45 1.83 8.2% 3.97 19.8%PMBC PACIFIC MERCANTILE BANCORP 29-Aug 7.00 295,798 134,873,795 N/M 1.27 -0.04 -0.6% 0.78 12.5%PPBI PACIFIC PREMIER BANCORP 29-Aug 14.85 645,385 253,469,319 17.47 1.55 0.55 3.8% -0.89 -5.7%RCBC RIVER CITY BANK 12-Aug 112.00 1,891 136,487,456 13.90 N/M 3.00 2.8% 12.00 12.0%TCBK TRICO BANCSHARES 29-Aug 22.35 1,494,081 360,581,803 14.70 1.47 -0.02 -0.1% -6.02 -21.2%WABC WESTAMERICA BANCORP 29-Aug 48.37 2,773,825 1,258,075,355 20.24 3.15 0.55 1.2% -8.09 -14.3%WIBC WILSHIRE BANCORP INC 29-Aug 9.76 6,126,021 764,230,058 14.35 1.95 0.34 3.6% -1.17 -10.7%

Average 16.62 1.53Median 15.57 1.47

High 37.42 3.15Low 6.59 0.96

Monthly Change8/29/2014

Last Trade YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $5 BILLION AND $10 BILLION MARKETCAPITALIZATION:$3.6BILLION


CALIFORNIA BANKS WITH TOTAL ASSETS OVER $10 BILLION MARKETCAPITALIZATION:$28.0BILLION


BBCN BBCN BANCORP 29-Aug 14.60 9,871,606 1,160,608,487 13.39 1.56 -0.42 -2.8% -1.99 -12.0%CVBF CVB FINANCIAL CORP 29-Aug 15.54 6,531,231 1,644,171,363 15.86 2.15 0.25 1.6% -1.53 -9.0%FMBL FARMERS & MERCHANTS BAN 29-Aug 6,125.00 303 801,934,000 13.32 1.02 230.00 3.9% 899.00 17.2%

Average 14.19 1.58Median 13.39 1.56

High 15.86 2.15Low 13.32 1.02



CATY CATHAY GENERAL BANCORP 29-Aug 26.04 5,851,046 2,074,655,703 16.17 1.70 0.45 1.8% -0.69 -2.6%CYN CITY NATIONAL CORP 29-Aug 75.88 4,016,781 4,174,489,561 18.69 2.17 0.63 0.8% -3.34 -4.2%EWBC EAST WEST BANCORP INC 29-Aug 34.84 8,343,150 4,995,648,093 15.84 2.28 0.78 2.3% -0.13 -0.4%FRC FIRST REPUBLIC BANK 29-Aug 48.90 22,092,976 6,751,549,308 16.41 1.94 2.18 4.7% -3.45 -6.6%PACW PACWEST BANCORP 29-Aug 41.94 8,552,947 4,321,159,941 33.82 2.55 0.27 0.6% -0.28 -0.7%SIVB SVB FINANCIAL GROUP 29-Aug 111.32 6,979,571 5,647,495,146 19.46 2.11 2.30 2.1% 6.46 6.2%

Average 20.07 2.13Median 17.55 2.14

High 33.82 2.55Low 15.84 1.70


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA THRIFTS MARKETCAPITALIZATION:$1.5BILLION



BOFI BOFI HOLDINGS INC 29-Aug 76.99 4,722,738 1,115,927,167 20.00 3.27 2.40 3.2% -1.44 -1.8%BYFC BROADWAY FINANCIAL CORP 29-Aug 1.36 129,852 26,510,343 13.56 N/M -0.68 -33.5% 0.43 45.9%FUBP FIRST ULB CORP. 12-Aug 15.00 153 24,981,870 N/M N/M 0.00 0.0% 0.00 0.0%MLGF MALAGA FINANCIAL CORP 27-Aug 20.18 11,188 121,172,808 10.79 1.22 0.03 0.1% 0.98 5.1%PROV PROVIDENT FINANCIAL HOLDINGS INC 29-Aug 14.64 449,631 136,331,618 22.52 N/M 0.39 2.7% -0.36 -2.4%SMPL SIMPLICITY BANCORP, INC 29-Aug 16.25 147,753 120,209,798 22.57 0.91 0.05 0.3% 0.09 0.6%

Average 17.89 1.80Median 20.00 1.22

High 22.57 3.27Low 10.79 0.91


-1-

Banking and Economic Update

August 2014

offset the increase in non‐interest expense to produce the step‐up in quarterly earnings. Pre‐tax, pre‐provision income expanded at a 4.5% annualized pace in the second quarter, recovering from the 4.0% decline in the first quarter. The number of commercial banks in the U.S. continued to decline, down by 52 institutions over the quarter to a low of 5,757. The number of problem banks were also lower, dropping to 354 from 411 in the first quarter and from the recent cyclical high of 884. The volume of problem assets equaled $110 billion, a 73% decline from this series near‐term peak in 2009.

Orders for durable goods surged in July to a record volume of $300.1 billion. The 23% monthly jump in orders compared to the 3% rise in June. Orders for 324 Boeing airplanes accounted for nearly two‐thirds of the rise in orders for non‐defense capital goods. Apart from the transportation industry, however, July orders were off. Bookings for capital goods, excluding aircraft, declined 0.5% over the previous month. Orders were lower for electrical equipment, machinery, and computers and electronics. Unfilled orders were 5.4% higher in July.

The stock market in August compiled its best monthly performance since last February. The Dow Jones Industrial Average rose 3.2% in the month to produce a 3.1% year‐to‐date (YTD) gain. The Dow crested over the 17,000 threshold on August 21st and continued above that level for the remaining trading days of August. The S&P 500 index traded above 2,000 in August and closed the month at 2,003.4. For all of August, the S&P 500 was up 3.8% to compile a YTD gain of 8.4%. The banking industry performed relatively well in August. The KBW Bank index increased 1.9% in August for a 3.2% YTD gain. The S&P 500 bank index rose 1.8% in August for a 6.5% YTD gain. The 136 publicly‐traded California banks and thrifts tracked in the Carpenter & Company monthly stock report indicated that 69 stocks rose in price, 56 declined in price, and 11 were unchanged. Only 41% of the stocks covered declined in price for the month.

U.S. commercial banks generated $37.3 billion in net income during the second quarter, up from $34.4 billion in the prior quarter. Increases in both net interest income and non‐interest income, combined with a reduction in provision expense, more than

Equity Markets

2nd Quarter Banking Data

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013 2014

22.4%

-7.0%-4.3%

-8.1%

3.3%

-4.7%

6.1%

-16.4%

13.5%

1.6%4.6%

-6.6%

13.8%

-6.5%

-12.2%

13.2%

-4.0%

4.5%

Change in Pre-tax, Pre-provision IncomeU.S. Banks

14921426

84 114 80 50

252

702

884

354

0

100

200

300

400

500

600

700

800

900

0

200

400

600

800

1,000

1,200

1,400

1,600

90 92 94 96 98 00 02 04 06 08 10 12 13 14

FDICProblemInstitutions

Number Assets($billions)

NumberofInstitutions $BlnsofAssets

# Institutions shown

Recent Economic Trends

300.1

190

210

230

250

270

290

310

11 12 13 14

ManufacturersDurableGoodsOrders($billions)

-2-


August 2014

New orders pushed up the reading from ISM, the Institute for Supply Management. The August manufacturing sector index equaled 59.0, the highest level since March 2011. The August order component was up sharply from July to reach its highest level since the recovery began. Also pushing up the August ISM index was increased production activity. The pace of consumer price inflation eased in July. The 0.1% rise in the CPI was the smallest increase since last October. The CPI was up 2.0% year‐over‐year (YoY), a performance that was essentially unchanged over the past four months. The rise in core inflation, that is, consumer prices excluding food and energy, also rose 0.1% in July. Inflation in the service sector was contained. Consumer energy prices fell, while food prices rebounded. Starts of both single‐family homes and apartments climbed in July, bringing total starts to 1.093 million units, the highest level since last November. Starts of multiple‐units were up 54% YoY, while the YoY gain for single‐family home construction equaled 6.7%.

The rate of growth of the gross domestic product was revised up to 4.2% for the second quarter from the previous estimate of 4.0%. Increased business spending on equipment and structures and a higher volume of exports were the primary reasons for the upward revision. The rate of inflation was revised to 2.1% from the previous estimate of 2.0%. Corporate profits in the second quarter increased steeply, with after‐tax profits rising at an annualized rate of 24% following two consecutive quarters of decline. A sizable upswing in earnings in the non‐financial corporate sector contributed to the step‐up in earnings. At $1.84 trillion, after‐tax corporate profits registered an all‐time record. Despite the moderate gain in July personal income, consumer spending was trimmed by $12 billion, pulled down by less spending on durable and other goods. July personal income rose $28.6 billion compared to the average monthly gain of $75 billion in the first half. The monthly gains in wages had eased since the first quarter, and the July rise was the smallest of the year. Farm losses reduced proprietor income. The personal savings rate climbed to 5.7% of disposable personal income from 5.4% in the previous two months.

Recent Economic Trends (continued) 2nd Quarter GDP

‐3%

‐2%

‐1%

0%

1%

2%

3%

4%

5%

09 10 11 12 13 14

YoYChangeinConsumerPriceIndex

All CPI Less Food & Energy

59.3

51.3

59.0

48

50

52

54

56

58

60

11 J 12 J 13 J 14

ISM Report on Manufacturing ActivityUnder 50 signals contraction

‐30%

20%

70%

120%

170%

220%

11 12 13 14

YoY Change in Housing Starts

SFR Multi

‐20%

‐10%

0%

10%

20%

30%

40%

50%

2012 2013 2014

43.2%

‐3.8%‐11.5%

24.2%

Growth in Corporate Profits

4.5%

5.2%

4.8%

5.7%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

13 A J O 14 A J

PersonalSavingRate

-3-


August 2014

CARPENTER & COMPANY 5ParkPlazaSuite950Irvine,CA92614‐8527Website:www.carpentercompany.comPhone:949‐261‐8888Fax:949‐261‐0880E‐mail:[email protected]

CARPENTER & COMPANY

Carpenter&Companywasfoundedin1974andhasprovidedstrategicconsultingandinvestmentbankingservicestoover1,100insureddepositoryinstitutions.WithintheCarpentergroupofcompaniesisaFINRAregulatedbrokerdealer,anSECregisteredinvestmentadvisorandtheCarpenterCommunityBancFunds,abankholdingcompanythatinvestsincommunitybankstohelpthemprosperandbuildlong‐termvalue.

It may be an investor flight to quality during geo‐political instability or the relatively better U.S. economic performance compared with the rest of the world, yet the rates on 10‐year U.S. treasuries drifted lower in August. The rate on ten‐year treasury notes fell to a YTD low of 2.34% in late August, 67 basis points below the YTD high. The rate differential between 3‐ month treasury bills and 20‐year treasury bonds (known as the yield curve) narrowed to a YTD low on August 28th. Early January produced the steepest yield curve of 2014. The flattest curve based upon the intermediate term differential between three months and five years occurred in early February. The late August three months and five years intermediate curve was 21 basis points above the low for the year. Mortgage rates remained largely unchanged over recent months, trending within a 5 basis point range over the past ten weeks. At 4.10%, the fixed rate for conventional 30‐year mortgages was 48 basis points lower than the near‐term high reached in September 2013.

Sanctions between the EU and Russian and other geo‐political developments were contributing factors for a weakening in economic activity within the Eurozone. Rates of unemployment remained high, and prices were generally lower on the producer and consumer levels. As such, the European Central Bank remained accommodative and considered additional policy stimulus. Rates on ten‐year German government bonds fell to 0.9%, while the rate on ten‐year Spanish debt at 2.27% was 15 basis points lower than the ten‐year U.S. treasury rate. Trading in the euro remained under downward pressure versus the dollar. In late August, the euro was at its lowest level to the dollar since summer 2013.

Financial Developments

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

3Month 3Year 5Year 7Year 10Year 20Year

2014YieldCurveExtremesthruAugust

2014-02-03

2014-01-08

2014-08-28

%

3.01%

2.44%2.34%

2.3%

2.4%

2.5%

2.6%

2.7%

2.8%

2.9%

3.0%

3.1%

14

F M A M J J A

2014 YTD -- Rate on 10 Year Treasuries

3.34

4.58

4.10 4.10

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

13 A J O 14 A J

Rateon30yearConventionalMortgages2013‐2014YTD%

1.26

1.28

1.30

1.32

1.34

1.36

1.38

1.40

13

A J O 14

A J

Dollar to Euro 2013-2014 YTD Daily Trends$‐€

california banks and thrifts: inside this issuecarpentercompany.com/uploads/files/52826737_monthly...

Documents