1st Century Bancshares — Investor Presentation (May 2014)
26 slides from 1st Century Bancshares's investor presentation, May 8, 2014
Slide 1: 1st Century Bancshares
1) BANCSHARES
Slide 2: Safe Harbor
Safe Harbor Certain matters discussed in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can find many (but not all) of these forward-looking statements by looking for words such as “approximates,” “believes,
Slide 3: 1st Century Bank Profile
1st Century Bank Profile " Attractive Market "Headquartered in Century City - West Los Angeles franchise. =Strong demographics; $48* billion in total deposits, one of the largest concentrations of core deposits in the nation. = Building Relationships =1st Century Bank is committed to building long-t
Slide 4: What Our Clients Are Saying
What Our Clients Are Saying = Knowledgeable Staff = “To us, 1st Century Bank is more of an advisor than a bank.” michael Brown and Case Lynch, Local Construct = Quality Service = “Everyone at 1st Century Bank is very responsive to our needs.” ken Powell, Jason Powell and Sam Simms, Powell Electric »
Slide 5: Investment Highlights
Investment Highlights Pure play on West Los Angeles Market Strong growth trajectory = Total Assets CAGR of 16.2% (2005-2013) = Total Deposits CAGR of 19.8% (2005-2013) High quality deposit base = Non-interest bearing deposits comprise 52% of total deposits at year end 2013 = Cost of deposits was 11
Slide 6: 2013 Highlights
2013 Highlights = Achieved record levels in total assets, loans and deposits = Net income of $6.9 million, an increase of 133% as compared to the prior year = Total assets increased 8% as compared to the prior year, to $538 million = Total loans increased 44% as compared to the prior year, to $384 m
Slide 7: 1st Century Bank Growth Strategies
1st Century Bank Growth Strategies « Continue to build 1st Century brand and reputation in our attractive core market - West Los Angeles « Build upon growing base of customers with continued focus on small businesses and professionals « Strong capital base to help facilitate lending and strategic op
Slide 8: West LA Economic Environment
West LA Economic Environment =» West LA economy continues to improve =» Employment gains have accelerated following the recession = Leading industries: Health services; leisure and hospitality; construction; professional, scientific and technical services = The housing and residential construction a
Slide 9: West LA Deposit Rich Market
West LA Deposit Rich Market #48 Billion = In Deposits on the Westside - One of the largest concentrations of core deposits in the Nation. <= Heese Palisades Pacitic Ocean “Source: FDIC Summary of Deposits as of June 30, 2013. 7") 1) SANGSHARES 1S WH YOU KTR
Slide 10: West LA Market Share
West LA Market Share Financial Institution % Balance lll Financial Institution % Balance 1 Bank of America Cop. 23.45% 22 HSBC Holdings Pic ‘0.53% 2 Wells Fargo & Co. 20.23% 23 First Banks inc 0.49% 3 JPMorgan Chase & Co 860% 24 First Credit Bank 0.36% 4 Citigroup Ine 6.45% 25 EH National Bank 0.34%
Slide 11: West LA Market Share
West LA Market Share 950,000 2.00% ‘$45,000 ‘$40,000 1.50% $35,000 ‘$30,000 $25,000 1.00% $20,000 $15,000 0.50% $10,000 $5,000 = 0.00% 2007 2008, 2008 2010 201 2012 2013, mmm Total Deposits +108 Market Share (%) “Source: FDIC Summary of Deposits as of June 30, 2013. BANCSHARES 1S WH YOU KCN
Slide 12: Investing in the Franchise
Investing in the Franchise = Focused Relationship Management Teams = Century City = Santa Monica = Small Business = Commercial Real Estate =» Santa Monica - Model for expansion = 2,000 square feet, Imaged ATM, 3 person staff expanding to 6 when business warrants = Continued investment in technology
Slide 13: Community - We stay involved
Community - We stay involved *» Community involvement is an important Ge. % part of the culture at 1st Century Bank. MAKE(@WisH Greater Los Angeles = Employees are involved in their communities in a variety of ways. ie Ive acres = 1st Century Bank supports local charities throughout the West LA and
Slide 14: Experienced Management
Experienced Management ee eee Functional | panking Exo. Exp. == AlanI. Rothenberg Chairman Chairman 40 years* 11 years Jason P. DiNapoli President Chief Executive Officer 20 years 11 years Bonnie S. Rubin EVP Regional Director 27 years 9 Years Brad S. Satenberg EVP Chief Financial Officer 20 years**
Slide 15: Financial Overview
Financial Overview rv gus
Slide 16: Asset Base
Asset Base Total Assets ($millions) 8 - year CAGR = 16.2% (2005-2013) $538 2005 2006 2007 2008 2009 2010 2011 2012 2013 Asset Composition (at December 31, 2013) cash & Cash Allother Equivalents assets 8% 1% | Investments 20% Loans 71% *) BANCSHARES 1S WH YOU KTR
Slide 17: Asset Quality
Asset Quality Non-Performing Assets Non-Performing to Total Assets Loans to Total Loans 5.00% 6.00% 4.00% S046 7 4.00% | 3.00% 3.00% | 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 = ist Century Bank CA Peers* mist Century Bank CA Peers* * SNL Financ
Slide 18: Allowance for Loan Loss to Total Loans
Allowance for Loan Loss to Total Loans 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Hine 2010 2011 2012 2013 mist Century Bank CA Peers* * SNL Financial Data Report (CA banks with assets between $250 to $500 million). 1) BANCSHARES 1S WH YOU KTR
Slide 19: Deposits - Expanding Core Deposit Base
Deposits —- Expanding Core Deposit Base Total Deposits Deposit Composition ($millions) (at December 31, 2013) DDA & NOW Total Dey 8-year CAGR = 29.8% 8-year CAGR = 19.8% (2005 -2013) (2005 -2013) Savings ‘& money ; market Time $500 deposits 9% $450 34% $400 $350 $300 $250 Interest Non- $200 “bearing
Slide 20: Deposits Trends
Deposits Trends Deposit Accounts & Types ($thousands) 2005 2006 2007 2008 2009 2010 2011 2012 2013 ‘a Customer CD's 64 89 114 102 145 105 76 47 47 ma MMA &Savings) 197 260 319 367 439 570 764 920 1,030 m@DDA& NOW 480 640 842 1,199 | 1,710 | 2,233 | 2,741 | 3,397 | 4,152 10" BANCSHARES 1S a YOU KN”
Slide 21: Deposit Franchise
Deposit Franchise Non Interest-Bearing Deposits to Total Deposits Cost of Funds 60.00% 2.50% 50.00% ome 40.00% 1.50% 30.00% 1.00% 20.00% 10.00% D:S0N6 0.00% 0.00% @ 2 ° » vy oo = a mi ia Ss & es - 3 ££ S$ S S$ 8 8 se £ & mist Century Bank CA Peers* mist Century Bank CA Peers* * SNL Financial Data Re
Slide 22: Balanced Loan Portfolio
Balanced Loan Portfolio Gross Loans Loan Composition ($millions) (at December 31, 2013) 8-year CAGR = 20.6% (2005 - 2013) ‘Commercial & Industrial 20% $384 $267 $233 te: ntial 72" © $182 $179 Mortgages $128 21% $86 iil Average i 2006 2007 2008 2009 2010 2011 2012 2013 Loan Size $547 $616 $866 $623 $
Slide 23: Well Capitalized
Well Capitalized Bank Capital Ratios (at December 31, 2013) 15.00% 13.69% 12.43% 10.00% 9.32% 10% a 6% — 5.00% + 0.00% Tier 1 Leverage Ratio Tier 1 Risk-Based Capital Total Risk-Based Capital Ratio Ratio ---------- % to generally be categorized as a “well capitalized” financial institution 7") 1) SA
Slide 24: 1st Century Bancshares, Inc.
1st Century Bancshares, Inc. ($ thousands, except share Total assets $ 405,274 | $ 499,173 | $ 538,145 Loans, net() 227,721 260,656 376,312 Total deposits 332,454 416,681 452,766 Loan to deposit ratio 70.08% 63.99% 84.70% Total stockholders’ 45,051 49,173 55,388 equity Pre-tax/ 1,371 3,053 3,904 pre
Slide 25: Why Century Bancshares?
1st Century Bancshares, Inc. Why 15 Century Bancshares? = Attractive market demographics = Focused growth strategy = Expanded footprint in Westside = Strong and low cost relationship deposit base = Balanced loan portfolio, improving credit quality and strong loan loss reserves = Well positioned to l
Slide 26: 1st Century Bancshares, Inc.
1st Century Bancshares, Inc. For further information, please contact any of the following team members. Alan I. Rothenberg Chairman & CEO 310.270.9501 Jason DiNapoli President & COO 310.270.9505 Bonnie Rubin EVP, Regional Director 310.270.9511 Rich Rothenberg Managing Director, BD 310.270.9508 Dave
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