california banks and thrifts: inside this issuecarpentercompany.com/uploads/files/6924296_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

ReportforNovember2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTOVERVIEW OF MARKET PERFORMANCE BY PEER GROUP

California Banks: Overview of Market Performance by

Asset Group for November 2014

This report divides publicly-traded California banks into groups based upon asset size as of September 30, 2014. The number of publicly-traded California banks with less than $125 million in total assets declined by one as CTBP grew to join the next larger class. Of the 16 banks in this class in November, six rose in stock price, five declined in price, and five were unchanged. Four banks did not trade last month. Only PAMB recorded a significant price gain, increasing 317%. The average Price to Tangible Book Value (P/TBV) equaled 0.73x at the end of November, down from 0.74x in the prior month. The average price to LTM (last 12 months through September 2014) earnings ratio equaled 16.8x in November from 16.5x in October. Only six of the 16 banks had meaningful P/E ratios.

The class of banks between $125 and $250 million in assets declined by one in November. CTBP grew into the group. CNYB grew into the next larger class, and SCVE was acquired. Of the 37 banks in this group, 19 reported stock price gains, 10 declined in price, and 8 were unchanged. Three banks did not trade in the month. Significant gains in stock prices were experienced by NRLB (31%), LGHT (27%), PVBK (23%), and VCBC (14%). The average P/E ratio equaled 14.4x in November from 14.7x in October. The average P/TBV equaled 1.12x in November, compared to 1.07x in October.

The number of banks with assets between $250 and $500 million was unchanged in November. CNYB grew into the class, and FSNF was acquired. Of the 24 banks in this category, 14 experienced stock price gains, 9 sustained price declines, and one was unchanged. All banks traded in the month. There were no significant price gains in the month. The average P/E ratio in November was unchanged over the month at 17.1x. The average Price to Tangible Book Value ratio equaled 1.19x in November, up from 1.18x in October.

The number of banks with assets between $500 million and $1 billion was unchanged in November. Of the 20 banks in the group, 8 recorded stock price gains, 9 declined in stock price, and 3 were unchanged. Two banks did not trade in the month. There were no significant price gains recorded last month. The average Price to LTM Earnings ratio at the end of November was unchanged at 14.2x. The average Price to Tangible Book Value ratio was 1.16x at the end of November, down from 1.18x in October.

The number of banks with assets between $1 and $5 billion in assets was unchanged in November. For the 21 banks in this class, 5 reported stock price gains, and 16 declined in stock price. There were no significant price gains in the month. The average P/E ratio dropped to 17.7x by the end of November, compared with 18.1x in October. The Price/Tangible Book Value ratio averaged 1.59x in October and fell to 1.55x by the end of November.

Of the six publicly-traded banks ranging between $10 and $100 billion in assets, three increased in price and three declined in stock price in November. There were no significant price gains. The P/E ratio for this group equaled 20.2x in November, compared with 20.1x in October. The Price/Tangible Book Value ratio averaged 2.14x in November and 2.13x in October.

Five of the six publicly-traded California thrifts increased in stock price in November, while one thrift was unchanged. All of the thrifts traded during the month. There were no significant monthly price increases for the group. The average Price to LTM Earnings ratio, which equaled 17.6x at the end of October, ended November at 17.9x. The Price/Tangible Book Value ratio averaged 1.66x in November, down from 1.72x in October.

2

Only one of the three banks in the $5-$10 billion asset class increased in stock price in November. The average ratio for Price/Tangible Book Value equaled 1.51x at the end of November, compared to 1.54x for the prior month. The average price to LTM earnings ratio in November equaled 13.8x, down from 14.0x in October.

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.

11/28/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 16.85 16.48 16.56 2.22% 1.77%$125M - $250M 14.37 14.70 16.13 -2.27% -10.92%$250M - $500M 17.14 17.12 17.88 0.12% -4.15%$500M - $1Bn 14.18 14.17 14.74 0.04% -3.80%$1Bn - $5Bn 17.68 18.07 16.89 -2.17% 4.65%$5Bn - $10Bn 13.79 14.03 18.47 -1.67% -25.32%Over $10Bn 20.21 20.06 19.42 0.75% 4.04%CA Thrifts 17.94 17.61 16.45 1.88% 9.02%

*LTM= Last Twelve Months. LTM P/E calculated based on last twelve months earnings through 9/30/2014.

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 11/28/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTPRICE/BOOK RATIOS BY ASSET GROUP


11/28/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 0.73 0.74 0.75 -1.47% -1.64%$125M - $250M 1.12 1.07 1.08 4.77% 3.72%$250M - $500M 1.19 1.18 1.18 1.11% 1.25%$500M - $1Bn 1.16 1.18 1.19 -1.70% -2.03%$1Bn - $5Bn 1.55 1.59 1.68 -2.25% -7.56%$5Bn - $10Bn 1.51 1.54 2.14 -2.10% -29.56%Over $10Bn 2.14 2.13 2.34 0.12% -8.58%CA Thrifts 1.66 1.72 1.83 -3.52% -9.17%

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 11/28/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTINDUSTRY‐WIDE RATIO COMPARISON


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

Less than $250M 1.01 3.18 0.98 2.93 0.75 3.27Less than $500M 1.07 1.21 1.04 1.23 1.05 1.23$250M - $500M 1.19 1.18 1.18 1.19 1.18 1.15$500M - $1Bn 1.16 1.18 1.18 1.17 1.19 1.27$1Bn - $5Bn 1.55 1.67 1.59 1.71 1.68 2.05$5Bn - $10Bn 1.51 2.13 1.54 2.17 2.14 2.36Over $10Bn 2.14 1.71 2.13 1.69 2.34 1.73Thrifts 1.66 1.57 1.72 1.57 1.83 1.73

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

11/28/2014 Previous Month 12/31/2013

0.00

1.00

2.00

3.00

4.00

Less than$250M

Less than$500M

$250M -$500M

$500M -$1Bn

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

Over $10Bn Thrifts

Current Month Comparison

California Banks SNL BanksCalifornia Banks SNL Banks California Banks SNL Banks California Banks SNL Banks

Total Assets:Less than $250M 14.75 NA 15.05 NA 16.24 24.47Less than $500M 15.61 14.94 15.77 14.11 16.78 14.12$250M - $500M 16.74 14.94 16.76 14.11 17.88 13.92$500M - $1Bn 14.18 15.81 14.17 15.92 14.74 14.65$1Bn - $5Bn 17.68 18.39 18.07 19.12 16.89 18.54$5Bn - $10Bn 13.79 18.89 14.03 19.12 18.47 20.22Over $10Bn 20.21 18.32 20.06 17.85 19.42 15.15Thrifts 17.94 26.98 17.61 26.95 16.45 19.91

Previous Month 12/31/201311/28/2014

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:$252MILLION


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

CABB CALIFORNIA BUSINESS BANK 28-Nov 1.25 5,756 109,906,965 N/M N/M -0.25 -16.7% 1.03 468.2%CKTM COMMERCE BANK OF TEMECULA VA 20-Oct 4.25 0 6,385,090 36.28 0.71 0.00 0.0% 0.00 0.0%CMUV COMMUNITY VALLEY BANK 25-Nov 5.29 45,644 8,637,528 N/M 0.79 0.04 0.8% 0.14 2.7%DEBC DELTA NATIONAL BANCORP 16-Oct 8.10 0 3,080,454 N/M 0.36 0.00 0.0% 1.10 15.7%FHLB FRIENDLY HILLS BANK 28-Nov 7.85 21,405 12,685,600 7.07 0.88 0.70 9.8% 2.83 56.4%FTFS F&T FINANCIAL SERVICES 19-Nov 71.75 483 21,031,791 N/M 0.61 1.25 1.8% 3.25 4.7%GSBB GOLDEN STATE BANK 12-Nov 0.60 905 1,106,760 N/M 0.30 -0.20 -25.0% 0.42 224.3%MOLB MOTHER LODE BANK 21-Nov 1.14 2,675 5,059,303 N/M 1.00 0.03 2.7% -0.11 -8.8%PAMB PAN AMERICAN BANK 21-Nov 0.50 2,500 16,673,055 N/M N/M 0.38 316.7% 0.35 233.3%PPFC PAN PACIFIC BANK 18-Nov 2.65 2,050 13,209,882 4.32 0.75 -0.05 -1.9% 0.20 8.2%SAGN SAIGON NATIONAL BANK 26-Nov 0.08 25,847 5,554,093 N/M N/M -0.03 -23.8% -0.08 -50.0%SFRK SECURITY FIRST BANK 18-Nov 5.10 2 9,103,628 10.40 0.70 0.00 0.0% 0.93 22.3%SUTB SUTTER COMMUNITY BANK 28-Nov 5.56 10,400 5,291,330 39.19 0.59 0.21 3.9% -0.19 -3.3%SVBA SIERRA VISTA BANK 21-Nov 4.42 12,275 17,756,585 3.84 1.09 -0.28 -6.0% 1.89 74.7%TRVB TRI-VALLEY BANK 30-Oct 0.27 0 6,702,218 N/M 0.86 0.00 0.0% -0.12 -30.8%USMT US METRO BANK 24-Nov 1.60 4,917 9,568,000 N/M 0.90 0.00 0.0% 0.35 28.0%

Average 16.85 0.73Median 8.73 0.75

High 39.19 1.09Low 3.84 0.30

11/28/2014Monthly ChangeLast Trade YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$650MILLION


Theremaining18publicly‐tradedcompaniesinthisassetclassarelistedonpage8.


ARBV AMERICAN RIVIERA BANK 24-Nov 9.60 8,768 24,806,707 20.00 1.06 -0.10 -1.0% -0.90 -8.6%AUNB AMERICAS UNITED BANK 26-Nov 6.85 452,208 19,715,328 5.29 0.98 0.00 0.0% 1.10 19.1%BNNP BANK OF NAPA NA 26-Nov 8.40 15,450 19,226,626 14.00 0.94 0.20 2.4% -0.30 -3.4%CALW CALWEST BANCORP 25-Nov 0.90 10,710 2,269,339 5.63 N/M -0.27 -23.1% -0.80 -47.1%CBBC COMMUNITY BUSINESS BANK 28-Nov 9.00 17,661 19,457,082 10.59 1.05 -0.10 -1.1% 0.10 1.1%CBJC CAPITAL BANK 25-Nov 18.25 3,423 28,362,270 9.65 1.62 0.35 2.0% -1.25 -6.4%CBYAA COMMUNITY BANK OF THE BAY 24-Nov 4.10 48,924 16,979,617 10.51 1.16 -0.15 -3.5% -0.30 -6.8%CCBC CHINO COMMERCIAL BANCORP 28-Nov 14.00 5,512 12,832,512 10.83 1.35 -1.00 -6.7% -1.90 -11.9%CFBN COMMUNITY 1ST BANK 26-Nov 3.42 19,607 18,636,408 16.29 1.06 0.22 6.9% -0.58 -14.5%CRSB CORNERSTONE COMMUNITY BANK 28-Nov 8.30 32,000 10,221,101 13.83 0.77 -0.18 -2.1% -0.20 -2.4%CTBP COAST BANCORP 24-Nov 1.50 11,739 8,470,322 1.72 2.58 -0.20 -11.8% -0.42 -21.9%CYSM COMMUNITY BANK OF SANTA MARIA 26-Nov 8.00 18,701 19,070,048 21.40 1.06 -0.25 -3.0% 1.10 15.9%FBBN BANK OF SOUTHERN CALIFORNIA NA 21-Nov 7.10 2,000 23,171,091 17.11 1.23 0.16 2.3% 0.10 1.4%FBCP FOUNDERS BANCORP 25-Nov 12.00 6,200 13,905,996 12.77 1.18 0.60 5.3% 1.70 16.5%FMBP FIRST MOUNTAIN BANK 13-Nov 6.00 6,917 9,389,556 23.08 N/M 0.25 4.3% -1.30 -17.8%FOLB FOLSOM LAKE BANK 24-Nov 8.00 4,600 12,744,888 11.76 0.99 -0.50 -5.9% 0.90 12.7%GVYB GOLDEN VALLEY BANCORP 12-Nov 12.55 17 24,703,696 17.97 1.48 0.00 0.0% 3.15 33.5%LGHT LIGHTHOUSE BANK 28-Nov 17.48 17,780 37,409,944 16.34 1.66 3.67 26.6% 6.58 60.4%LIBC LIBERTY BANCORP INC 17-Oct 12.30 0 10,905,328 7.03 0.90 0.00 0.0% 0.30 2.5%

Monthly ChangeLast Trade YTD Change11/28/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$650MILLION




MNBO MNB HOLDINGS CORP 25-Nov 34.00 1,300 15,564,282 N/M N/M 0.00 0.0% 8.00 30.8%NCNB NORTHERN CALIFORNIA NATIONAL B 18-Nov 9.56 2,500 13,000,319 15.28 0.93 0.05 0.5% 0.81 9.3%NRLB NORTHERN CALIFORNIA BANCORP IN 24-Nov 1.30 9,613 2,321,658 N/M N/M 0.31 31.3% 0.10 8.3%NWBN NEW RESOURCE BANK 25-Nov 4.55 12,982 25,998,905 16.24 0.95 0.15 3.4% 0.60 15.2%OCBB ORANGE COUNTY BUSINESS BANK NA 26-Nov 6.30 35,461 29,764,829 11.25 0.81 0.45 7.7% -0.95 -13.1%OJCB OCB BANCORP 28-Nov 5.65 16,172 12,344,216 20.96 0.98 0.15 2.7% -0.35 -5.8%PBKX PARTNERS BANK OF CALIFORNIA 26-Nov 3.25 833 6,176,359 N/M N/M 0.25 8.3% -3.75 -53.6%PBNK PINNACLE BANK 24-Nov 7.35 20,122 24,188,909 25.34 1.13 0.33 4.7% 2.07 39.2%PFBN PACIFIC ALLIANCE BANK 24-Nov 5.45 1,100 10,124,389 15.14 0.49 0.20 3.8% 0.55 11.2%PFCI PACIFIC COMMERCE BANK 28-Nov 5.05 89,764 22,529,338 16.83 1.05 0.12 2.4% 0.80 18.8%PMRA PROMERICA BANK 26-Nov 6.00 44,625 16,626,000 4.05 0.77 0.00 0.0% 0.95 18.8%PVBK PACIFIC VALLEY BANK 26-Nov 8.50 2,250 30,574,106 6.75 1.27 1.62 23.5% -1.60 -15.8%RVVY RIVER VALLEY COMMUNITY BANK 20-Nov 13.50 430 23,463,297 23.78 1.28 -1.75 -11.5% -3.50 -20.6%SBKK SUNCREST BANK 25-Sep 8.00 0 16,574,704 4.91 1.04 0.00 0.0% 2.10 35.6%SMAL SUMMIT BANCSHARES INC 18-Nov 15.41 1,540 20,035,743 12.02 0.94 0.05 0.3% 4.11 36.4%UIFC UNITI FINANCIAL CORP 30-Oct 2.05 0 25,380,552 15.15 1.17 0.00 0.0% 0.68 49.6%VBBK VIBRA BANK 26-Nov 20.75 5 15,331,449 40.69 1.23 0.00 0.0% 2.75 15.3%VCBC VALLEY COMMUNITY BANK 26-Nov 3.99 60,041 7,496,755 N/M 0.82 0.49 14.0% 1.74 77.3%

Average 14.37 1.12Median 14.00 1.06

High 40.69 2.58Low 1.72 0.49

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $250 MILLION AND $500 MILLION MARKETCAPITALIZATION:$1.1BILLION



ABNK ALTAPACIFIC BANK 26-Nov 10.05 37,066 53,788,223 20.77 1.12 0.30 3.1% 2.65 35.8%AVBH AVIDBANK HOLDING 21-Nov 11.75 7,645 50,973,392 21.36 1.01 0.10 0.9% 0.05 0.4%BSCA BANK OF SANTA CLARITA 26-Nov 9.16 36,250 21,453,957 19.49 0.91 0.16 1.8% 0.21 2.3%CABC CALIFORNIA BANK OF COMMERCE 26-Nov 12.00 21,135 51,794,976 12.30 1.11 0.28 2.4% 1.10 10.1%CNYB COUNTY COMMERCE BANK 25-Nov 18.45 8,310 26,445,289 14.10 1.21 -0.15 -0.8% 2.35 14.6%CWBK COMMERCEWEST BANK 28-Nov 13.35 93,616 55,041,409 13.76 1.10 -0.47 -3.4% -0.55 -4.0%FCSB FOCUS BUSINESS BANK 28-Nov 9.40 18,872 28,103,387 23.50 1.00 -0.10 -1.1% 0.50 5.6%FISB 1ST CAPITAL BANK 26-Nov 11.45 54,097 42,809,077 22.18 1.06 -0.20 -1.7% 0.12 1.1%GSCB GREATER SACRAMENTO BANCORP 28-Nov 20.96 54,295 54,859,446 18.71 1.41 -0.30 -1.4% 5.76 37.9%IDPK INDEPENDENCE BANK 26-Nov 14.05 145,641 67,743,873 20.97 N/M -0.13 -0.9% 6.05 75.6%MNHN MANHATTAN BANCORP 25-Nov 3.65 24,578 45,983,678 24.00 0.93 0.15 4.3% -0.51 -12.3%MSBC MISSION BANCORP 28-Nov 28.00 27,310 39,660,376 13.59 1.08 -0.50 -1.8% 3.95 16.4%MVLY MISSION VALLEY BANCORP 28-Nov 6.15 7,032 16,182,083 15.00 0.96 0.29 4.9% -0.35 -5.4%NCAL NCAL BANCORP 24-Nov 0.38 1,000 913,993 N/M N/M 0.03 8.6% -0.17 -30.9%OPBK OPEN BANK 24-Nov 7.25 10,540 89,889,734 23.39 1.40 -0.75 -9.4% -0.25 -3.3%RWCB REDWOOD CAPITAL BANCORP 24-Nov 9.75 7,536 18,148,757 9.03 1.06 0.05 0.5% 0.94 10.7%SCCB SEACOAST COMMERCE BANK 28-Nov 10.58 34,089 59,566,860 15.79 2.27 0.58 5.8% 2.58 32.3%SCZC SANTA CRUZ COUNTY BANK 25-Nov 21.99 2,149 47,001,404 11.63 1.27 -0.01 0.0% 4.24 23.9%SDPB SAN DIEGO PRIVATE BANK 26-Nov 13.80 32,170 56,436,963 14.53 1.14 0.00 0.0% 2.11 18.0%SSBI SUMMIT STATE BANK 28-Nov 13.44 120,403 64,218,904 13.71 1.34 0.56 4.3% 2.94 28.0%TFCH TFC HOLDING COMPANY 24-Nov 11.94 16,200 79,334,829 12.94 1.26 0.69 6.1% 1.94 19.4%UABK UNITED AMERICAN BANK 26-Nov 0.30 86,233 13,502,967 N/M N/M 0.02 7.1% 0.08 36.4%VCBP VALLEY COMMERCE BANCORP 24-Nov 15.00 13,776 43,722,735 11.24 1.01 0.20 1.4% 1.49 11.0%VLLX VALLEY REPUBLIC BANK 25-Nov 15.50 400 54,136,649 25.00 1.37 0.12 0.8% -0.78 -4.8%

Average 17.14 1.19Median 15.40 1.11

High 25.00 2.27Low 9.03 0.91

11/28/2014Last Trade Monthly Change YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $500 MILLION AND $1 BILLION MARKETCAPITALIZATION:$1.7BILLION


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

AMRB AMERICAN RIVER BANKSHARES 26-Nov 9.35 81,674 75,670,259 19.09 19.09 1.05 -0.03 -0.3% -0.10 -1.0%BCML BAY COMMERCIAL BANK 26-Nov 11.95 71,623 56,881,892 12.19 12.19 1.02 0.30 2.6% 2.25 23.2%BOCH BANK OF COMMERCE HLDG 28-Nov 6.01 143,845 79,895,600 13.98 13.98 0.97 -0.04 -0.7% 0.30 5.3%CFNB CALIFORNIA FIRST NATIONAL BANCORP 28-Nov 14.17 33,398 148,217,123 19.15 19.15 0.80 -0.87 -5.8% -0.93 -6.2%CRPB CALIFORNIA REPUBLIC BANK 28-Nov 26.95 25,234 207,988,646 11.72 11.72 2.01 -1.00 -3.6% 3.25 13.7%CWBB COMMONWEALTH BUSINESS BANK 28-Nov 23.50 46,082 91,097,750 8.67 8.67 1.24 0.00 0.0% 2.10 9.8%CWBC COMMUNITY WEST BANCSHARES 28-Nov 6.50 233,851 53,317,765 7.65 7.65 0.92 0.10 1.6% -0.06 -0.9%FCTY 1ST CENTURY BANCSHARES 28-Nov 6.80 92,299 68,993,330 34.00 34.00 1.15 -0.30 -4.2% -0.35 -4.9%FENB 1ST ENTERPRISE BANK 28-Nov 26.01 45,700 100,056,282 18.45 18.45 1.72 -0.39 -1.5% 6.71 34.8%FNBG FNB BANCORP 26-Nov 28.10 10,838 113,845,014 16.63 16.63 1.26 0.25 0.9% 0.10 0.4%FNRN FIRST NORTHERN COMMUNITY BANCOR 26-Nov 7.92 15,326 77,619,612 14.67 14.67 1.00 0.17 2.2% 0.72 10.0%OVLY OAK VALLEY BANCORP 28-Nov 10.25 44,533 82,767,264 11.26 11.26 1.14 0.23 2.3% 1.88 22.5%PDOB PRESIDIO BANK 26-Nov 11.95 43,345 50,178,050 17.84 17.84 1.25 -0.05 -0.4% 2.00 20.1%PFCF PACIFIC CITY FINANCIAL CORP 7-Oct 12.38 0 109,859,390 8.60 8.60 1.31 0.00 0.0% 8.38 209.5%PLBC PLUMAS BANCORP 28-Nov 8.10 30,170 38,840,626 9.20 9.20 1.12 -0.14 -1.7% 1.88 30.2%PLZB PLAZA BANK 7-Nov 3.01 350 51,589,293 12.04 12.04 0.95 0.01 0.3% 0.03 1.0%PVLY PREMIER VALLEY BANK 24-Nov 6.02 57,147 74,039,980 10.03 10.03 1.36 0.02 0.3% 0.20 3.4%SCAF SECURITY CALIFORNIA BANCORP 20-Nov 11.20 7,556 63,514,259 17.18 17.18 1.04 0.20 1.8% 1.59 16.5%SWBC SUNWEST BANK 3-Sep 38,000.00 0 84,170,000 10.13 10.13 0.85 0.00 0.0% 5000.00 15.2%UBFO UNITED SECURITY BANCSHARES 26-Nov 5.44 63,332 83,081,758 11.06 11.06 1.08 -0.21 -3.7% 0.52 10.6%

Average 14.18 1.16Median 12.12 1.10

High 34.00 2.01Low 7.65 0.80


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $1 BILLION AND $5 BILLION MARKETCAPITALIZATION:$8.1BILLION



AMBZ AMERICAN BUSINESS BANK 25-Nov 29.75 23,026 176,849,738 15.38 1.54 -1.00 -3.3% -0.53 -1.8%BANC BANC OF CALIFORNIA 28-Nov 11.00 2,833,232 365,438,590 16.18 0.97 -0.77 -6.5% -2.41 -18.0%BBNK BRIDGE CAPITAL HOLDINGS 28-Nov 23.04 291,854 369,423,798 19.36 2.03 -1.08 -4.5% 2.50 12.2%BMRC BANK OF MARIN BANCORP 28-Nov 50.80 395,496 301,417,126 17.40 1.63 0.88 1.8% 7.41 17.1%BSRR SIERRA BANCORP 28-Nov 15.87 336,278 218,809,006 14.69 1.22 -1.29 -7.5% -0.22 -1.4%CUNB CU BANCORP 28-Nov 19.60 253,872 220,072,230 20.85 1.64 -0.15 -0.8% 2.12 12.1%CVCY CENTRAL VALLEY COMMUNITY BAN 28-Nov 10.76 289,731 118,186,460 12.23 1.16 -0.05 -0.4% -0.49 -4.3%EXSR EXCHANGE BANK 26-Nov 84.00 3,415 144,004,896 8.42 0.90 2.00 2.4% 15.00 21.7%FMCB FARMERS & MERCHANTS BANCORP ( 25-Nov 462.00 685 359,381,484 14.55 1.58 -2.00 -0.4% 45.00 10.8%HAFC HANMI FINANCIAL CORP 28-Nov 20.10 2,311,683 641,271,023 14.26 1.48 -1.35 -6.3% -1.79 -8.2%HEOP HERITAGE OAKS BANCORP 28-Nov 7.27 654,048 240,598,593 38.26 1.50 -0.60 -7.6% -0.23 -3.1%HTBK HERITAGE COMMERCE CORP 28-Nov 8.24 482,995 217,710,301 20.10 1.34 -0.46 -5.3% 0.00 0.0%MCHB MECHANICS BANK 14-Nov 25,600.00 7 496,128,000 24.26 1.54 600.00 2.4% 12600.00 96.9%OPB OPUS BANK 28-Nov 26.89 1,142,695 755,962,012 21.34 N/M 0.59 2.2% -3.11 -10.4%PFBC PREFERRED BANK 28-Nov 25.52 572,132 344,393,880 14.84 1.50 -1.06 -4.0% 5.47 27.3%PMBC PACIFIC MERCANTILE BANCORP 28-Nov 6.82 269,842 132,449,736 N/M 1.24 -0.23 -3.2% 0.60 9.6%PPBI PACIFIC PREMIER BANCORP 28-Nov 15.91 456,048 268,786,977 16.23 1.61 -0.28 -1.7% 0.17 1.1%RCBC RIVER CITY BANK 7-Nov 120.00 170 149,031,360 15.09 N/M 5.50 4.8% 20.00 20.0%TCBK TRICO BANCSHARES 28-Nov 24.81 1,252,102 563,558,257 15.80 1.59 -1.49 -5.7% -3.56 -12.5%WABC WESTAMERICA BANCORP 28-Nov 48.60 2,093,016 1,258,107,908 20.77 3.18 -0.74 -1.5% -7.86 -13.9%WIBC WILSHIRE BANCORP INC 28-Nov 9.58 4,172,833 750,182,018 13.49 1.86 -0.32 -3.2% -1.35 -12.4%

Average 17.68 1.55Median 15.99 1.54

High 38.26 3.18Low 8.42 0.90

Monthly Change11/28/2014

Last Trade YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $5 BILLION AND $10 BILLION MARKETCAPITALIZATION:$3.5BILLION


CALIFORNIA BANKS WITH TOTAL ASSETS OVER $10 BILLION MARKETCAPITALIZATION:$28.8BILLION


CATY CATHAY GENERAL BANCORP 28-Nov 25.38 5,495,996 2,022,894,068 15.11 1.61 -1.03 -3.9% -1.35 -5.1%CYN CITY NATIONAL CORP 28-Nov 77.19 3,076,362 4,254,290,648 18.78 2.15 -1.52 -1.9% -2.03 -2.6%EWBC EAST WEST BANCORP INC 28-Nov 36.77 11,446,864 5,278,441,788 16.06 2.33 0.01 0.0% 1.80 5.1%FRC FIRST REPUBLIC BANK 28-Nov 51.53 11,472,526 7,120,193,203 16.62 1.99 0.60 1.2% -0.82 -1.6%PACW PACWEST BANCORP 28-Nov 46.50 11,718,672 4,790,794,095 35.50 2.76 3.84 9.0% 4.28 10.1%SIVB SVB FINANCIAL GROUP 28-Nov 105.15 4,778,569 5,346,801,582 19.19 1.96 -6.84 -6.1% 0.29 0.3%

Average 20.21 2.14Median 17.70 2.07

High 35.50 2.76Low 15.11 1.61



BBCN BBCN BANCORP 28-Nov 13.92 6,596,285 1,106,602,848 13.13 1.47 -0.22 -1.6% -2.67 -16.1%CVBF CVB FINANCIAL CORP 28-Nov 15.17 6,790,930 1,605,363,020 15.48 2.08 -0.61 -3.9% -1.90 -11.1%FMBL FARMERS & MERCHANTS BAN 28-Nov 6,000.00 720 785,568,000 12.76 0.99 60.00 1.0% 774.00 14.8%

Average 13.79 1.51Median 13.13 1.47

High 15.48 2.08Low 12.76 0.99


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA THRIFTS MARKETCAPITALIZATION:$1.6BILLION



BOFI BOFI HOLDINGS INC 28-Nov 78.92 3,791,289 1,169,087,655 18.79 2.86 1.90 2.5% 0.49 0.6%BYFC BROADWAY FINANCIAL CORP 28-Nov 1.58 117,841 33,820,197 17.56 N/M 0.08 5.3% 0.65 70.0%FUBP FIRST ULB CORP. 17-Nov 15.15 2,064 25,231,689 N/M N/M 0.40 2.7% 0.15 1.0%MLGF MALAGA FINANCIAL CORP 25-Nov 20.50 10,920 123,096,330 11.08 1.20 0.00 0.0% 1.30 6.8%PROV PROVIDENT FINANCIAL HOLDINGS INC 28-Nov 14.80 316,239 135,450,562 19.22 N/M 0.22 1.5% -0.20 -1.3%SMPL SIMPLICITY BANCORP, INC 28-Nov 16.59 885,763 122,654,980 23.04 0.92 0.02 0.1% 0.43 2.7%

Average 17.94 1.66Median 18.79 1.20

High 23.04 2.86Low 11.08 0.92


-1-

Banking and Economic Update

November 2014

Third‐quarter GDP was up 2.4%on a year‐over‐year (YoY) basis.To hit the FOMC’s YoY target of2.0% to 2.2% by year‐end 2014,fourth‐quarterannualizedgrowthneeded to be between 1.7% and2.5%, an outcome that appearedtobeachievable ifnotonthe lowside of expectations. The rate of

in lation in the thirdquarterwas revisedupslightly to1.4%,whichwasbelowthesecondquarter’s2.1%rateandtheFOMCtargetrateof2.0%.Corporate pro its in the thirdquarter increased at anannualized pace of 6.6%,compared to the 24.7% reboundin the second quarter. Bothdomestic inancial and non‐inancial industries reported aslowing in earnings in the thirdquarter.The$1.87trillioninafter‐taxpro its,however,representedanewrecordforU.S.corporatepro its.

TotalassetsofU.S.commercialbanksgrewatanannualizedrateof5%inthethirdquarterto$14.3trillion.Net loansexpandedatasluggish2.4%pace, in contrast to the 8.8%advance in the second quarter. Theslowdown in loan growth resultedlargely from declines in residentialmortgages and apartment loans.Consumer, commercial real estate,commercial and industrial, andconstructionloansexpandedduringthethirdquarter.

Equitymarkets performedwell in November. The Dow Jones IndustrialAverage climbed 2.5% for the month to compile a 7.5% year‐to‐date(YTD)gain.TheDowendedthemonthatarecordcloseof17,828.Tradingthroughout the month was signi icantly less volatile than in October.Duringthe23tradingdaysofOctober,theDowwasupordownbymorethan 100 points for 16 ofthose days. Over the 19trading days of November,the Dow reported only onedaily change of over 100points. The S&P 500 indexclimbed 2.4% lastmonth foran11.9%YTDgain.TheS&P500 recent record closeoccurredonNovember26th.Thebankingindustryreportedmoderategainsinstockpriceslastmonth.TheKBWBank index rose0.8% in themonth for a4.9%YTDgain. TheS&P500bankindexincreased1.2%inthemonthfora10.8%YTDgain.Ofthe133publiclytradedCaliforniabanksandthriftscoveredbyCarpenter&Company,stockpricegainersequaled61(46%),stockpriceloserswere54 (41%), and 18 (13%)were unchanged. The number of banks in theMonthlyStockReportwasreducedbytwoduetomergers.

Counter to expectations, GDP growth for the third quarter was revisedhigherfromthepreliminaryestimateof3.5%.Realoutputexpanded3.9%,which combinedwith the4.6%growth in the second quarter, producedthesharpestsix‐monthgainsince2003.Growthinconsumerandbusinessspendingwas strongerand thedrag from inventorieswas reduced fromthepreliminaryreport.Partiallyoffsettingtheseuptickswerereductionsreportedinthegrowthofexportshipmentsandinspendingbystateandlocalgovernments.

Equity Markets

Third Quarter GDP

0.92

0.97

1.02

1.07

1.12

1.17

J F M A M J J A S O N

2014StockPriceTrends

DJIA

S&P500

Changefrom12/31

‐3.0

‐2.0

‐1.0

0.0

1.0

2.0

3.0

4.0

5.0

2011 2012 2013 2014

4.6%

‐2.1%

4.6%3.9%

GDPGrowth%

1,873

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2010 2011 2012 2013 2014

After‐taxCorporateProfits$B

Third Quarter Banking Data

‐8%‐6%‐4%‐2%0%2%4%6%8%10%

2011 2012 2013 2014

8.5% 8.8%

2.4%

GrowthinUSBankLoans

-2-


November 2014

U.S. bank earnings equaled $35.6billion in the third quarter, downfrom $37.1 billion in the priorquarter. Higher quarterly netinterest income and non‐interestincomeweremorethanoffsetbytherise in provision expense andsharplyhighernon‐interestexpense.Theriseinnon‐interestexpensewaspartially the resultof thesizable regulatory ines imposedupon inancialinstitutions.Consequently, thereturnonassets forU.S.banksdroppedto1.00%inthethirdquarterfrom1.06%inthepreviousquarter.Thereturnonequityequaled8.97%,downfrom9.49%inthesecondquarter.The number of commercial banksdropped to5,705, a reductionof52overthequarter.TheFDICreportedthat there were 329 probleminstitutions at the end of the thirdquarter, down from 354 threemonths earlier and the lowestamount since 2008. Assets held bythese troubled institutions equaled$102billion,downfrom$110billioninthesecondquarterandfromthe2009highof$403billion.YTDthroughNovember,17 inancialinstitutionswereclosedbytheFDIC,compared with the 23 failures in the irst 11 months of 2013. In lateNovember, the FDIC closed Frontier Bank, FSB, the irst failure of aCaliforniainstitutionsinceApril2012.QuarterlyearningsofCaliforniabanks increased$129milliontoarecordlevel of $1.435 billion. California banks generated a return on assets of1.01%,upfrom0.95%inthesecondquarter.Gainsinnon‐interestincomeoffsetreducednet interest incomeandhigheroperatingexpensetoboost

Recent Economic Trends

Third Quarter Banking Data (continued) earnings, The conversion of a thrift into a banking charter caused thenumber of California banks to increase by one in the quarter. For thefourth quarter through November, acquisitions of four California bankswerecompleted,hencereducingthenumberofCaliforniabanksto197.

‐20

‐10

0

10

20

30

40

2009 2010 2011 2012 2013 2014

37.6 35.6QuarterlyUSBankEarnings$B

14921426

84 114 80 50

252

702

884

329

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

Industrial production declined0.1% in October, following the0.8%monthlygain inSeptember.Cutbacks in mining productionandutilityoutputoffset the0.2%gain inmanufacturingproductionto produce the decline in totalproduction. Leading the rise inmanufacturing activity wasincreased production of businessequipment,notablymachineryandelectronics.The indexofproducersprices forinal demand goods declined inOctober for the fourthconsecutive month. The indexregistered a 1.1% YoY advance,compared to the YTD high of a2.4% YoY rise in April. Sharplylower energy prices were theprimary drivers for the easing inpricesontheproducerslevel.TheNovember ISM survey revealedthat the manufacturing priceindex fell to its lowest level sinceJuly2012.Consumer energy prices weredown 1.6% YoY in October, thesteepestdropsinceFebruary.

‐0.8%‐0.6%‐0.4%‐0.2%0.0%0.2%0.4%0.6%0.8%1.0%1.2%

12 13 14

M/MChangeinIndustrialProduction

‐0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

13 A J O 14 A J O

ProducersPrices‐ FinishedGoods(YoYChange)

‐10%

‐5%

0%

5%

10%

15%

20%

25%

11 12 13 14

YoYChangeinConsumerEnergyPrices

-3-


November 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.

TheU.S. economyposted itsbestsix‐monthgrowthperformancein11 years. The October federalbudget de icit was 34% higherthan the year‐earlier de icit. TheYoY growth in the Fed’s assetsslowed in late November to itslowest rate since April 2013.Despitethesegrowthandfundingtrends, long‐term treasury ratesfell in late November, returningtheratenearthelowfortheyearthatoccurredinmid‐October.Part of the rally in bond pricesandthedollarmaybeanoffshootof the dramatic trends in theenergy markets. Generallysluggish worldwide growth,coupled with relatively highsuppliesofpetroleum,pushedoilprices sharply lower over thesecond half of this year. By lateNovember,pricesforBrentcrudeoil were nearly 40% below the2014peak.Thefall‐offinoilpricesproducedwinners and losers. Lowerpetroleum prices bene ited oilimporting countries, while thelower prices had deleteriousimpacts for some oil‐exportingcountries. Reduced oil revenues,coupled with the sanctions

imposedbytheUkrainiancrisis,contributedtothe35%dropintherubleversusthedollarsincethebeginningofthisyear.The price of gold in November dropped to its lowest close since April2010, some40%below the2011pricepeak.The Japanese economy fellinto recession, as third‐quarter resultsproduced the secondconsecutivenegativegrowthreading.ThismarkedthefourthrecessioninJapansince2008.Duringthepast20tradingdays,theU.S.dollarrallied12%againsttheyen.Thehigherdollarislikelytocurbthe lowofU.S.exportstoJapan,which could adversely impact California. Japan represented the fourthlargestmarketforCaliforniaexports.

Financial Developments

‐5%0%5%10%15%20%25%30%35%40%45%

13 A J O 14 A J O

YoYChangeinReserveBankCredit2013toYTD2014

3.01%

2.44%2.34%

2.63%

2.15% 2.18%2.1%

2.2%

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 S O N

2014 YTD -- Rate on 10 Year Treasuries

100102104106108110112114116118120

14

F M A M J J A S O N

Japanese Yen to One Dollar 2014 YTD Daily Trends

65

75

85

95

105

115

125

J F M A M J J A S O N

BrentCrudeOilPrices2014$/Barrel

1,221

1,385

1,2511,244

1,130

1,170

1,210

1,250

1,290

1,330

1,370

1,410

14

F M A M J J A S O N

2014GoldPrices$/oz.

california banks and thrifts: inside this issuecarpentercompany.com/uploads/files/6924296_monthly...

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