Inside this issue California Banks and Thriftscarpentercompany.com/uploads/files/53077564_Monthly Stock Report -5...average price to LTM (last 12 months through March 2014) earnings

CaliforniaBanksandThrifts:MonthlyStockPerformanceReport

Insidethisissue

California Bank Overview ........................ 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

ReportforMay2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTOVERVIEW OF MARKET PERFORMANCE BY PEER GROUP

California Banks: Overview of Market Performance

by Asset Group for May 2014

The number of publicly-traded California banks with less than $125 million in assets as of March 31, 2014, declined over the course of May. MOKB was acquired by ABNK, and CRSB grew over $125 million in assets. Of the 17 banks remaining in this class, four experienced gains in stock prices in the month, ten declined in price, and three were unchanged, including one bank that did not trade. SVBA reported a significant 17% price gain in the month. The average Price to Tangible Book Value (P/TBV) at the end of May was 0.80x, compared to 0.86x in April. The average price to LTM (last 12 months through March 2014) earnings ratio climbed to 16.9x in May from 14.0x in April. Eight of the 17 banks in this class reported meaningful P/E ratios.

The number of banks with $125 million to $250 million in assets increased by two in May. BSCA declined in size to rejoin this class, and CRSB grew from the smaller class. Of the 40 banks in this group, 20 reported stock price gains, 13 declined in price, and 7 reported no change in price. Two banks did not trade in the month. Significant gains in stock prices were reported by VCBC (45%), acquisition-target FMBP (26%), MNBO (17%), CBJC (14%), and PMRA (11%). The average P/E ratio for this group equaled 13.6x in May, compared to13.4x in April. The average P/TBV at the end of May remained unchanged at April’s average of 1.07x.

The number of banks with $250 to $500 million in assets held steady in May, yet the composition changed. BSCA declined in asset size to return to the $125-$250 million class, while AVBH declined in size to rejoin this group. Of the 22 banks in this category, 12 reported gains in stock prices, 7 recorded price declines, and 3 were unchanged. All banks traded in the month. Significant price gains were reported by UABK (14%) and IDPK (12%). The average P/E at the end of May equaled 18.1x from 17.6x in April. The average Price to Tangible Book Value was 1.20x in May, marginally above the 1.19x average in April.

The number of banks with assets between $500 million and $1 billion declined by two in May. AVBH declined in size, and PMBC grew into the next larger class. Of the 20 banks in the group, ten recorded stock price gains, eight declined in stock price, and two banks did not trade. There were no significant price gains for this group. At the end of May, the Price to LTM Earnings ratio averaged 15.5x, compared to 15.3x in April. The average Price to Tangible Book Value ratio equaled 1.22x in May, unchanged from the April result.

The number of banks with $1-$5 billion in assets increased by one in May, as PMBC rejoined this group. For the 21 banks in this class, 12 reported stock price gains, and 9 declined in price. There were no significant price increases in the month. The P/E ratio for this group averaged 17.0x in May from the 16.9x average in April. The average Price/Tangible Book Value ratio in April equaled 1.57x and fell to 1.54x in May.

The number of banks with assets between $10 and $100 billion was unchanged in May at six. Three banks rose in price, and three banks experienced price declines. The P/E ratio was unchanged in May at April’s average of 19.5x. In addition, the Price/Tangible Book Value ratio at the end of May at 2.24x was unchanged from April.

FUBP initiated public trading this past March and was added to the tracking report in May. There are now six publicly-traded California thrifts. Three thrifts reported stock price gains, two thrifts were lower in price, and FUBP did not trade. The average Price to LTM Earnings ratio in April equaled 17.9x and fell to 17.3x by the end of May. The Price/Tangible Book Value ratio in May equaled 1.82x, down from 1.97x in April.

2

The number of banks in the $5-$10 billion asset class was unchanged at the end of May at three. One bank rose in stock price, and two experienced price declines. There were no significant price gains. The average ratio for Price/Tangible Book Value was unchanged in May at 1.58x. The price to LTM earnings ratio in April was 14.1x and edged lower to 14.0x in May.

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.

5/30/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 16.86 13.99 16.56 20.54% 1.85%$125M - $250M 13.58 13.44 16.13 1.11% -15.78%$250M - $500M 18.11 17.59 17.88 2.93% 1.29%$500M - $1Bn 15.46 15.31 14.74 0.96% 4.93%$1Bn - $5Bn 16.97 16.91 16.89 0.36% 0.50%$5Bn - $10Bn 14.00 14.06 18.47 -0.39% -24.17%Over $10Bn 19.50 19.48 19.42 0.08% 0.38%CA Thrifts 17.34 17.92 16.45 -3.22% 5.38%

*LTM= Last Twelve Months. LTM P/E calculated based on last twelve months earnings through 3/31/2014.

Average LTM* P/E Ratio

02468

101214161820

Under$125M

$125M -$250M

$250M -$500M

$500M -$1Bn

$1Bn -$5Bn

$5Bn -$10Bn

Over$10Bn

CAThrifts

12/31/2013 Previous Month 5/30/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTPRICE/BOOK RATIOS BY ASSET GROUP


5/30/2014 Previous Month 12/31/2013 % Change Monthly % Change YTDTotal Assets:

Under $125M 0.80 0.86 0.75 -6.97% 7.11%$125M - $250M 1.07 1.07 1.08 -0.19% -1.17%$250M - $500M 1.20 1.19 1.18 0.40% 1.76%$500M - $1Bn 1.22 1.22 1.19 -0.19% 2.50%$1Bn - $5Bn 1.54 1.57 1.68 -1.78% -8.13%$5Bn - $10Bn 1.58 1.58 2.14 -0.25% -26.33%Over $10Bn 2.24 2.24 2.34 -0.21% -4.22%CA Thrifts 1.82 1.97 1.83 -7.60% -0.44%

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 5/30/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTINDUSTRY‐WIDE RATIO COMPARISON


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

Less than $250M 0.80 NA 0.86 0.94 0.75 3.27Less than $500M 1.07 1.20 1.07 1.21 1.05 1.23$250M - $500M 1.20 1.20 1.19 1.21 1.18 1.15$500M - $1Bn 1.22 1.26 1.22 1.25 1.19 1.27$1Bn - $5Bn 1.54 1.68 1.57 1.71 1.68 2.05$5Bn - $10Bn 1.58 2.22 1.58 2.25 2.14 2.36Over $10Bn 2.24 1.67 2.24 1.67 2.34 1.73Thrifts 1.82 1.69 1.97 1.72 1.83 1.73

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

5/30/2014 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 14.24 NA 16.09 16.30 16.24 24.47Less than $500M 15.13 12.51 16.71 14.98 16.78 14.12$250M - $500M 17.21 12.51 18.00 14.95 17.88 13.92$500M - $1Bn 15.46 16.41 16.26 15.95 14.74 14.65$1Bn - $5Bn 16.97 17.89 17.75 19.10 16.89 18.54$5Bn - $10Bn 14.00 19.42 15.43 20.95 18.47 20.22Over $10Bn 19.50 14.21 23.23 14.86 19.42 15.15Thrifts 17.34 25.33 17.93 25.36 16.45 19.91

Previous Month 12/31/20135/30/2014

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:$126MILLION


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

CABB CALIFORNIA BUSINESS BANK 20-May 0.48 170,470 1,711,475 N/M 0.29 -0.16 -25.0% 0.26 118.2%CCBC CHINO COMMERCIAL BANCORP 27-May 13.50 18,656 12,374,208 12.37 1.39 -1.25 -8.5% -2.40 -15.1%CKTM COMMERCE BANK OF TEMECULA VA 28-May 4.25 2,779 6,385,090 N/M 0.73 0.30 7.6% 0.00 0.0%CMUV COMMUNITY VALLEY BANK 29-May 5.30 415 8,645,906 9.60 0.83 -0.10 -1.9% 0.15 2.9%CTBP COAST BANCORP 15-May 2.00 7,900 1,693,762 2.11 N/M -0.10 -4.8% 0.08 4.2%DEBC DELTA NATIONAL BANCORP 15-May 7.00 50 2,662,121 N/M 0.34 0.00 0.0% 0.00 0.0%FHLB FRIENDLY HILLS BANK 30-May 5.51 25,934 8,904,160 14.89 0.69 -0.47 -7.9% 0.49 9.8%GSBB GOLDEN STATE BANK 20-May 0.57 16,040 1,051,422 N/M 0.25 0.02 3.6% 0.39 208.1%MOLB MOTHER LODE BANK 30-May 1.77 350 7,855,233 48.49 1.62 -0.63 -26.3% 0.52 41.6%PAMB PAN AMERICAN BANK 16-May 0.12 50 2,102,412 N/M N/M 0.00 0.0% -0.03 -20.0%PPFC PAN PACIFIC BANK 29-May 2.50 75,224 12,364,450 N/M 0.84 -0.05 -2.0% 0.05 2.0%SAGN SAIGON NATIONAL BANK 22-Apr 0.27 0 18,745,062 N/M N/M 0.00 0.0% 0.11 68.8%SFRK SECURITY FIRST BANK 13-May 5.50 10,101 9,350,000 23.97 0.82 -0.50 -8.3% 1.33 31.9%SUTB SUTTER COMMUNITY BANK 30-May 5.02 13,234 4,777,424 20.33 0.53 -0.39 -7.2% -0.73 -12.7%SVBA SIERRA VISTA BANK 21-May 3.80 25,021 15,005,714 3.14 0.95 0.55 16.9% 1.27 50.2%TRVB TRI-VALLEY BANK 29-May 0.40 52,400 9,929,212 N/M 1.24 -0.01 -2.4% 0.01 2.6%USMT US METRO BANK 9-May 1.26 100 2,494,800 N/M 0.66 0.01 0.8% 0.01 0.8%

Average 16.86 0.80Median 13.63 0.77

High 48.49 1.62Low 2.11 0.25

5/30/2014Monthly ChangeLast Trade YTD Change

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$716MILLION


Theremaining18publicly‐tradedcompaniesinthisassetclassarelistedonpage8.


ACAL AMERICAN CALIFORNIA BANK 7-Aug-13 4.56 0 6,553,691 3.95 0.55 0.00 0.0% 0.00 0.0%ARBV AMERICAN RIVIERA BANK 29-May 10.10 54,470 26,126,327 19.06 1.14 0.10 1.0% -0.40 -3.8%AUNB AMERICAS UNITED BANK 30-May 7.20 217,356 20,722,680 5.29 0.98 0.30 4.3% 1.45 25.2%BNNP BANK OF NAPA NA 30-May 8.88 20,827 20,325,290 11.53 1.03 0.08 0.9% 0.18 2.1%BSCA BANK OF SANTA CLARITA 30-May 9.16 47,514 20,385,662 20.36 0.93 0.11 1.2% 0.21 2.3%CALW CALWEST BANCORP 21-May 1.10 6,332 2,773,637 4.78 N/M 0.02 1.9% -0.60 -35.3%CBBC COMMUNITY BUSINESS BANK 9-May 8.90 5,300 19,240,892 13.43 1.15 0.00 0.0% 0.00 0.0%CBJC CAPITAL BANK 28-May 19.88 3,010 30,895,448 15.27 1.92 2.38 13.6% 0.38 1.9%CBYAA COMMUNITY BANK OF THE BAY 30-May 4.17 41,249 17,230,123 10.17 1.27 0.02 0.5% -0.23 -5.2%CFBN COMMUNITY 1ST BANK 30-May 4.10 20,607 22,341,892 18.64 1.32 -0.15 -3.5% 0.10 2.5%CNYB COUNTY COMMERCE BANK 30-May 17.50 3,769 25,083,608 15.47 1.33 0.00 0.0% 1.40 8.7%CRSB CORNERSTONE COMMUNITY BANK 30-May 8.90 7,335 10,785,047 11.87 0.84 -0.45 -4.8% 0.40 4.7%CYSM COMMUNITY BANK OF SANTA MARIA 28-May 7.50 35,446 17,876,220 21.83 1.06 0.44 6.2% 0.60 8.7%FBBN BANK OF SOUTHERN CALIFORNIA NA 21-May 6.11 25 19,940,193 N/M 1.08 0.00 0.0% -0.89 -12.7%FBCP FOUNDERS BANCORP 28-May 11.01 6,885 12,758,751 11.71 1.08 -0.49 -4.3% 0.71 6.9%FMBP FIRST MOUNTAIN BANK 30-May 8.60 497,677 13,458,364 13.82 N/M 1.76 25.7% 1.30 17.8%FOLB FOLSOM LAKE BANK 27-May 8.50 2,550 13,541,444 11.97 1.14 0.49 6.1% 1.40 19.7%FSNF FRESNO FIRST BANK 28-May 9.40 25,553 18,452,341 N/M 1.24 -0.29 -3.0% -0.60 -6.0%FTFS F&T FINANCIAL SERVICES, INC. 23-May 71.25 300 20,890,643 N/M 0.69 -0.75 -1.0% 2.75 4.0%GVYB GOLDEN VALLEY BANCORP 20-May 11.00 613 21,919,942 15.89 1.36 0.80 7.8% 1.60 17.0%LGHT LIGHTHOUSE BANK 29-May 11.74 47,698 25,125,443 10.39 1.19 0.00 0.0% 0.84 7.7%LIBC LIBERTY BANCORP INC 19-May 12.00 300 10,639,344 6.86 0.87 0.00 0.0% 0.00 0.0%

Monthly ChangeLast Trade YTD Change5/30/2014

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $125 MILLION AND $250 MILLION TOTALMARKETCAPITALIZATION:$716MILLION




MNBO MNB HOLDINGS CORP 28-May 35.00 2,212 16,022,055 N/M N/M 5.00 16.7% 9.00 34.6%NCNB NORTHERN CALIFORNIA NATIONAL B 4-Mar 10.00 0 13,598,660 16.53 1.03 0.00 0.0% 1.25 14.3%NRLB NORTHERN CALIFORNIA BANCORP IN 22-May 1.06 1,200 1,893,044 N/M N/M -0.33 -23.7% -0.14 -11.7%NWBN NEW RESOURCE BANK 30-May 4.70 47,696 26,839,764 20.48 1.02 0.10 2.2% 0.75 19.0%OCBB ORANGE COUNTY BUSINESS BANK NA 27-May 6.18 16,968 29,197,880 47.54 0.86 -0.07 -1.1% -1.07 -14.8%OJCB OCB BANCORP 29-May 5.70 40,202 12,453,457 13.74 0.91 -0.20 -3.4% -0.30 -5.0%PBNK PINNACLE BANK 28-May 6.11 64,656 20,108,059 3.10 0.96 -0.24 -3.8% 0.83 15.7%PFBN PACIFIC ALLIANCE BANK 14-May 4.60 100 8,545,356 11.50 0.57 0.05 1.1% -0.30 -6.1%PFCI PACIFIC COMMERCE BANK 28-May 5.39 47,885 24,046,164 4.31 1.17 0.39 7.8% 1.14 26.8%PMRA PROMERICA BANK 28-May 6.75 43,161 18,704,250 4.22 0.88 0.64 10.5% 1.70 33.7%PVBK PACIFIC VALLEY BANK 22-May 8.25 9,770 29,674,846 5.36 1.23 -0.51 -5.8% -1.85 -18.3%RVVY RIVER VALLEY COMMUNITY BANK 28-May 16.00 1,722 27,773,040 25.90 1.53 0.75 4.9% -1.00 -5.9%SBKK SUNCREST BANK 13-May 8.60 13,000 16,476,757 5.37 1.12 -0.40 -4.4% 2.70 45.8%SCVE SANTA CLARA VALLEY BANK NA 28-May 5.50 26,276 10,593,919 N/M 1.09 -0.10 -1.8% -0.10 -1.8%SMAL SUMMIT BANCSHARES INC 28-May 15.50 240 20,152,759 14.92 0.99 0.35 2.3% 4.20 37.2%UIFC UNITI FINANCIAL CORP 5-May 1.75 283 21,666,325 19.44 1.08 -0.15 -7.9% 0.38 27.7%VBBK VIBRA BANK 21-May 21.10 2,113 15,590,052 N/M 1.29 0.10 0.5% 3.10 17.2%VCBC VALLEY COMMUNITY BANK 30-May 3.05 44,068 5,730,602 N/M 0.61 0.95 45.2% 0.80 35.6%

Average 13.58 1.07Median 12.70 1.08

High 47.54 1.92Low 3.10 0.55

CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $250 MILLION AND $500 MILLION MARKETCAPITALIZATION:$891MILLION



ABNK ALTAPACIFIC BANK 30-May 7.40 44,053 40,860,321 33.22 1.19 0.00 0.0% 0.00 0.0%AVBH AVIDBANK HOLDING 30-May 11.50 32,013 49,260,181 18.25 1.01 0.05 0.4% -0.20 -1.7%BCML BAY COMMERCIAL BANK 30-May 10.50 517,706 49,638,299 19.81 0.94 0.38 3.8% 0.80 8.2%CABC CALIFORNIA BANK OF COMMERCE 30-May 10.40 51,157 28,796,487 10.84 1.00 0.00 0.0% -0.50 -4.6%CWBK COMMERCEWEST BANK 29-May 13.40 108,669 56,939,401 14.57 1.16 0.20 1.5% -0.50 -3.6%FCSB FOCUS BUSINESS BANK 28-May 8.83 28,894 25,714,170 26.19 0.95 -0.07 -0.8% -0.07 -0.8%FISB 1ST CAPITAL BANK 30-May 11.62 66,903 40,794,636 21.92 1.06 -0.02 -0.2% 0.29 2.6%GSCB GREATER SACRAMENTO BANCORP 30-May 15.70 20,859 40,987,786 13.89 1.13 0.20 1.3% 0.50 3.3%IDPK INDEPENDENCE BANK 27-May 12.00 26,611 57,587,340 N/M N/M 1.25 11.6% 4.00 50.0%MSBC MISSION BANCORP 28-May 27.50 2,198 38,722,530 17.30 1.12 0.73 2.7% 3.45 14.3%MVLY MISSION VALLEY BANCORP 28-May 6.20 3,372 16,313,645 12.92 1.01 -0.80 -11.4% -0.30 -4.6%NCAL NCAL BANCORP 9-May 0.55 300 1,322,885 N/M 0.97 0.00 0.0% 0.00 0.0%OPBK OPEN BANK 28-May 8.75 37,100 63,660,485 28.23 1.95 0.50 6.1% 1.25 16.7%PDOB PRESIDIO BANK 30-May 11.50 37,900 48,001,000 22.12 1.26 -0.25 -2.1% 1.55 15.6%RWCB REDWOOD CAPITAL BANCORP 30-May 9.95 3,110 18,420,236 9.39 1.16 0.45 4.7% 1.14 12.9%SCCB SEACOAST COMMERCE BANK 30-May 9.19 85,235 51,730,859 18.76 2.11 0.09 1.0% 1.19 14.9%SCZC SANTA CRUZ COUNTY BANK 29-May 19.34 8,716 41,319,601 11.51 1.18 -0.06 -0.3% 1.59 9.0%SDPB SAN DIEGO PRIVATE BANK 27-May 12.35 12,474 50,457,580 15.44 1.05 -0.05 -0.4% 0.66 5.6%SSBI SUMMIT STATE BANK 30-May 11.05 66,945 52,800,989 12.01 1.20 -0.41 -3.6% 0.55 5.2%UABK UNITED AMERICAN BANK 27-May 0.41 76,122 18,454,055 N/M N/M 0.05 13.9% 0.19 86.4%VCBP VALLEY COMMERCE BANCORP 29-May 15.32 34,717 42,686,453 10.71 1.04 0.33 2.2% 1.81 13.4%VLLX VALLEY REPUBLIC BANK 12-May 16.20 300 56,477,768 27.00 1.46 0.20 1.3% -0.08 -0.5%

Average 18.11 1.20Median 17.30 1.13

High 33.22 2.11Low 9.39 0.94

5/30/2014Last 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 30-May 8.96 197,561 72,904,544 22.98 22.98 1.05 -0.63 -6.5% -0.49 -5.1%BOCH BANK OF COMMERCE HLDG 30-May 6.50 549,110 87,563,756 15.12 15.12 1.09 0.15 2.4% 0.79 13.8%CFNB CALIFORNIA FIRST NATIONAL BANCORP 30-May 15.26 89,336 159,618,440 22.44 22.44 0.88 0.43 2.9% 0.16 1.1%CRPB CALIFORNIA REPUBLIC BANK 30-May 28.00 24,361 146,050,604 19.36 19.36 2.26 1.50 5.7% 4.30 18.1%CWBB COMMONWEALTH BUSINESS BANK 30-May 22.65 36,958 87,192,308 8.77 8.77 1.30 0.40 1.8% 1.25 5.8%CWBC COMMUNITY WEST BANCSHARES 30-May 6.68 68,759 54,674,684 6.61 6.61 1.00 -0.25 -3.6% 0.12 1.8%FCTY 1ST CENTURY BANCSHARES 30-May 7.80 73,330 79,359,774 12.19 12.19 1.33 -0.01 -0.1% 0.65 9.1%FENB 1ST ENTERPRISE BANK 21-May 22.00 49,095 84,500,636 16.92 16.92 1.54 -0.25 -1.1% 2.70 14.0%FNBG FNB BANCORP 30-May 28.05 66,030 112,857,660 14.65 14.65 1.31 0.70 2.6% 0.05 0.2%FNRN FIRST NORTHERN COMMUNITY BANCOR 30-May 7.10 56,753 69,583,238 14.50 14.50 0.94 -0.16 -2.2% -0.10 -1.4%MNHN MANHATTAN BANCORP 29-May 3.99 19,493 50,267,089 26.60 26.60 1.00 -0.16 -3.9% -0.17 -4.1%NOVB NORTH VALLEY BANCORP 30-May 21.34 323,705 145,890,120 45.40 45.40 1.53 -1.26 -5.6% 2.43 12.9%OVLY OAK VALLEY BANCORP 30-May 9.93 45,421 80,146,134 12.90 12.90 1.18 0.13 1.3% 1.56 18.6%PFCF PACIFIC CITY FINANCIAL CORP 2-Apr 12.00 0 100,476,012 5.04 5.04 1.42 0.00 0.0% 8.00 200.0%PLBC PLUMAS BANCORP 30-May 7.05 74,069 33,766,955 8.29 8.29 1.06 0.33 4.9% 0.83 13.3%PLZB PLAZA BANK 28-May 3.14 14,000 54,079,784 10.13 10.13 1.08 -0.21 -6.3% 0.16 5.4%PVLY PREMIER VALLEY BANK 30-May 6.10 254,908 78,025,100 11.30 11.30 1.42 0.20 3.4% 0.28 4.8%SCAF SECURITY CALIFORNIA BANCORP 21-May 10.00 9,548 56,694,160 17.61 17.61 0.99 0.14 1.4% 0.39 4.1%SWBC SUNWEST BANK 10-Feb 33,902.12 0 75,093,196 6.47 6.47 0.79 0.00 0.0% 902.12 2.7%UBFO UNITED SECURITY BANCSHARES 30-May 5.65 134,945 84,455,262 11.95 11.95 1.16 0.01 0.2% 0.73 14.8%

Average 15.46 1.22Median 13.70 1.12

High 45.40 2.26Low 5.04 0.79


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA BANKS WITH TOTAL ASSETS BETWEEN $1 BILLION AND $5 BILLION MARKETCAPITALIZATION:$7.6BILLION



AMBZ AMERICAN BUSINESS BANK 30-May 29.50 94,562 145,900,333 11.84 1.41 0.46 1.6% -0.78 -2.6%BANC BANC OF CALIFORNIA 30-May 10.90 14,393,023 323,376,273 N/M 1.10 -1.67 -13.3% -2.51 -18.7%BBNK BRIDGE CAPITAL HOLDINGS 30-May 22.64 490,301 359,006,555 23.10 2.14 0.24 1.1% 2.10 10.2%BMRC BANK OF MARIN BANCORP 30-May 43.26 348,195 255,793,828 17.73 1.46 -2.15 -4.7% -0.13 -0.3%BSRR SIERRA BANCORP 30-May 15.83 708,980 223,537,630 15.37 1.26 0.22 1.4% -0.26 -1.6%CUNB CU BANCORP 30-May 18.36 342,648 205,830,013 19.33 1.61 0.21 1.2% 0.88 5.0%CVCY CENTRAL VALLEY COMMUNITY BAN 30-May 11.24 321,867 122,829,564 13.88 1.30 -0.27 -2.3% -0.01 -0.1%EXSR EXCHANGE BANK 30-May 76.00 8,334 130,290,144 8.24 0.92 -1.75 -2.3% 7.00 10.1%FMCB FARMERS & MERCHANTS BANCORP ( 30-May 445.00 958 346,157,490 14.37 1.59 25.00 6.0% 28.00 6.7%HAFC HANMI FINANCIAL CORP 30-May 21.31 3,604,439 678,563,313 16.65 1.64 0.04 0.2% -0.58 -2.6%HEOP HERITAGE OAKS BANCORP 30-May 7.36 1,587,108 242,905,127 38.74 1.60 -0.05 -0.7% -0.14 -1.9%HTBK HERITAGE COMMERCE CORP 30-May 8.06 937,799 212,546,311 20.67 1.36 -0.06 -0.7% -0.18 -2.2%MCHB MECHANICS BANK 22-May 15,025.00 12 291,184,500 13.51 0.97 1225.00 8.9% 2025.00 15.6%OPB OPUS BANK 30-May 30.00 695,350 841,530,120 6.05 N/M -0.03 -0.1% 0.00 0.0%PFBC PREFERRED BANK 30-May 22.53 503,118 302,700,013 15.02 1.41 1.08 5.0% 2.48 12.4%PMBC PACIFIC MERCANTILE BANCORP 30-May 6.69 523,724 128,755,586 N/M 1.22 0.14 2.1% 0.47 7.6%PPBI PACIFIC PREMIER BANCORP 30-May 14.12 1,551,214 243,216,675 25.21 1.52 0.47 3.4% -1.62 -10.3%RCBC RIVER CITY BANK 9-May 108.00 689 131,612,904 13.09 N/M 0.75 0.7% 8.00 8.0%TCBK TRICO BANCSHARES 30-May 22.89 1,050,535 369,085,158 14.22 1.53 -1.36 -5.6% -5.48 -19.3%WABC WESTAMERICA BANCORP 30-May 48.97 3,068,312 1,288,306,580 19.99 3.21 -1.85 -3.6% -7.49 -13.3%WIBC WILSHIRE BANCORP INC 30-May 10.09 6,728,835 789,707,098 15.52 2.08 0.09 0.9% -0.84 -7.7%

Average 16.97 1.54Median 15.37 1.46

High 38.74 3.21Low 6.05 0.92

Monthly Change5/30/2014

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:$27.0BILLION


BBCN BBCN BANCORP 30-May 15.25 7,508,466 1,212,236,210 13.86 1.68 -0.16 -1.0% -1.34 -8.1%CVBF CVB FINANCIAL CORP 30-May 14.58 10,462,522 1,544,029,173 15.03 2.06 0.12 0.8% -2.49 -14.6%FMBL FARMERS & MERCHANTS BANK 30-May 5,910.00 381 773,784,480 13.12 1.00 -65.00 -1.1% 684.00 13.1%

Average 14.00 1.58Median 13.86 1.68

High 15.03 2.06Low 13.12 1.00



CATY CATHAY GENERAL BANCORP 30-May 24.03 7,499,735 1,913,259,973 15.81 1.63 0.43 1.8% -2.70 -10.1%CYN CITY NATIONAL CORP 30-May 71.09 5,943,889 3,907,202,372 17.82 2.10 -1.48 -2.0% -8.13 -10.3%EWBC EAST WEST BANCORP INC 30-May 33.48 12,402,867 4,800,725,926 15.64 2.27 -1.02 -3.0% -1.49 -4.3%FRC FIRST REPUBLIC BANK 30-May 50.86 17,939,119 6,999,053,685 17.01 2.07 0.10 0.2% -1.49 -2.8%PACW PACWEST BANCORP 30-May 40.42 16,839,797 4,120,856,550 32.34 3.04 1.05 2.7% -1.80 -4.3%SIVB SVB FINANCIAL GROUP 30-May 105.45 16,851,016 5,265,629,089 18.37 2.31 -1.24 -1.2% 0.59 0.6%

Average 19.50 2.24Median 17.41 2.19

High 32.34 3.04Low 15.64 1.63


CARPENTERANDCOMPANY‐MONTHLYSTOCKPERFORMANCEREPORTCALIFORNIA THRIFTS MARKETCAPITALIZATION:$1.5BILLION



BOFI BOFI HOLDINGS INC 30-May 76.83 3,449,751 1,090,732,384 21.70 3.27 -3.78 -4.7% -1.60 -2.0%BYFC BROADWAY FINANCIAL CORP 30-May 1.32 104,220 25,804,626 N/M N/M 0.09 7.3% 0.39 42.0%FUBP FIRST ULB CORP. 19-Mar 15.00 0 24,240,600 N/M N/M 0.00 0.0% 0.00 0.0%MLGF MALAGA FINANCIAL CORP 29-May 20.00 19,726 120,091,980 10.42 1.23 0.25 1.3% 0.80 4.2%PROV PROVIDENT FINANCIAL HOLDINGS INC 30-May 14.50 1,002,187 138,274,929 15.59 N/M 0.43 3.1% -0.50 -3.3%SMPL SIMPLICITY BANCORP, INC 30-May 17.10 247,280 126,497,695 21.65 0.96 -0.24 -1.4% 0.94 5.8%

Average 17.34 1.82Median 18.62 1.23

High 21.70 3.27Low 10.42 0.96


-1-

Banking and Economic Update

May 2014

expense was $3.2 billion lower on a YoY basis, while provision expense was up over the prior quarter to result in the second straight quarter of rising provision expense. Pre-tax, pre-provision income of commercial banks declined at a 4.1% annualized rate in the first quarter. The decline in interest income exceeded the drop in interest expense, thus reducing net interest income. The drop in net interest income significantly offset the moderate gain in non-interest income. In addition, operating costs were higher than in the fourth quarter. Despite the lower net income in the first quarter, the ratio of unprofitable commercial banks fell to 6.2% of all banks, the lowest reading since the third quarter of 2005. The quality of banking assets continued to improve in the first quarter of 2014. The ratio of non-current loans fell to 2.48% of total loans, down from 2.64% in the fourth quarter and the lowest since the 2.27% rate in the third quarter of 2008. There were 82 fewer FDIC-insured institutions at the end of the first quarter. By March 31, 2014, the number of all institutions equaled 6,730, a reduction of 288 institutions over the past year. The FDIC reported that the number of problem institutions fell to 411, down from 612 a year earlier. Assets of the problem financial institutions equaled $126 billion, which was 41% lower than the $213 billion of assets held in problem institutions one year earlier.

The Dow Jones Industrial Average rose 0.82% in May, resulting in an 0.85% year-to-date (YTD) gain and achieving a new record close for the index. Although the Dow by the end of May was up since the start of the year, the five-month performance in the Dow during 2014 was the most sluggish compared to the previous three years. The S&P 500 index continued to outpace the performance of the Dow, climbing 2.1% for the month and achieving a 4.1% YTD gain. The banking industry largely underperformed the broader market. The KBW Bank index rose 0.7% in May and remained 0.5% below its year-end 2013 reading. In contrast, the S&P 500 Bank index, which rose 0.65% in May, was up 2.4% YTD.

The rise in longer-term interest rates, which began in the second quarter of year 2013, was a factor contributing to the reduced earnings of commercial banks in the first quarter of 2014, according to the Federal Deposit Insurance Corporation. Earnings of all 6,730 FDIC-insured institutions equaled $37.2 billion in the first quarter, which was $3.1 billion lower than the earnings in the first quarter of 2013. Non-interest income was lower on year-over-year (YoY) basis, largely as a result of reductions in mortgage revenues, trading income, and other non-interest income. For commercial banks only, net income was lower compared with the prior quarter and on a YoY basis. Bank provision

Equity Markets

1st Quarter Banking Trends

14921426

84 114 80 50

252

702

884732

411

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

-20%

-15%

-10%

-5%

0%

5%

10%

15%

2011 2012 2013 2014

3.3%

-4.7%

6.1%

-16.4%

13.5%

1.6%4.6%

-6.6%

13.8%

-6.5%

-12.2%

13.2%

-4.1%

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

0.90

0.95

1.00

1.05

1.10

1.15

1.20

J F M A M

Annual Change in DJIA

2011 20122013 2014

12/31= 1.0

-2-


May 2014

GDP growth in the first quarter of 2014 was revised lower to show a decline of 1%, in contrast to the prior estimate of a 0.1% gain. Reduced inventories and higher imports were the primary reasons for the downward revision in GDP. The 1% decline in total output was the first contraction since the first quarter of 2011. The recent decline was more reflective of the severe winter weather than of a systemic change in the economy and its expansion. The data revisions did not materially alter the previously-reported trends in consumer spending. Consumer spending grew at a 3.1% rate in the first quarter, compared with the 3.3% growth in the prior quarter. Spending on services, notably for utilities, provided much of the ballast to the consumer sector in the first quarter. The rate of inflation was revised slightly lower than had been previously reported. The first-quarter inflation rate equaled 1.3%, not 1.4% as reported last month, and was down from 1.6% in the fourth quarter. The Fed-watched measure of inflation, that is, personal consumption expenditures less food and fuel, equaled 1.2% on a quarterly comparison and 1.1% on a YoY basis. Preliminary estimates from the BEA indicated that after-tax corporate profits fell at an annualized rate of 5.2%. This was the first earnings decline in a year and the largest drop since the first quarter of 2011.

According to the ISM May survey, the index of manufacturing activity rose to its highest level since December 2013. The step-up from 54.9 in April to the 55.4 reading was led by gains in production, higher prices paid, and increased orders. Employment and deliveries were below the April survey, while inventories were unchanged. Following the weather-related drop in January 2014, follow-on surveys from manufacturers implied steady expansion and fueled expectations that a marked rebound in GDP growth may occur in the second quarter. The growth in personal income slowed April, while spending was lower across a broad base of the consumer sector and especially for utility services. As a result, the personal saving rate climbed to 4.0% in April from the 3.6% reading in March. Sales of cars and light-duty trucks soared to an annualized rate of 16.7 million units in May, the highest sales volume since July 2006. Vehicle sales rebounded steeply in March and again in May, following the winter slump. Reflecting renewed construction hiring, truck sales were particularly robust in May.

1st Quarter GDP Recent Trends

‐6

‐4

‐2

0

2

4

6

2009 2010 2011 2012 2013 2014

GrowthinGDP%

‐30%

‐20%

‐10%

0%

10%

20%

30%

40%

50%

10 11 12 13 14

18.7%

‐4.3% ‐1.4%

‐23.6%

46.5%

1.3%

‐2.6%

7.7%

‐5.2%

GrowthinCorporateProfitsAnnualized

57.3

51.3

55.4

48

50

52

54

56

58

60

62

11 J 12 J 13 J 14

ISM Report on Manufacturing ActivityUnder 50 signals contraction

15.2

16.8

14.5

15.0

15.5

16.0

16.5

17.0

13 A J O 14 A

MotorVehicleSalesmillionsofunits

6.4%

4.0%

2%

3%

4%

5%

6%

7%

8%

9%

10%

10 11 12 13 14

PersonalSavingRate

-3-


May 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.

Yields on longer-term treasuries declined over the course of May. This decline occurred despite the robustness implied by the increases in April for employment, average hourly earnings, and consumer prices. The rate decline also occurred while the Federal Reserve continued to trim its monthly purchases of longer-term assets. On May 28th, the rate on 10-year treasuries fell to its lowest level since June 20, 2013. After the weather-induced slowdown in growth in the first quarter, expectations pointed toward renewed economic expansion and increased hiring through the remainder of this year, often a harbinger of higher interest rates. Nonetheless, the rate on the 10-year Treasury inflation-protected securities (TIPs) fell in late May to its lowest level since June 14, 2013.

Speculation ran high that the European Central Bank will announce in early June a new stimulus program to counter the deflationary trends in many European Monetary Union countries. As a result, investor demand shifted toward U.S. treasury instruments both for higher yield than in much of the EMU and for the safety anticipated by a relatively stronger performance in the U.S. economy. Investor willingness to accept additional risk in return for higher yield was evident in the decline in the rate spread between AAA and BAA corporate bonds. Rates for both credit instruments declined steadily so far in 2014. The rate spread by late May narrowed to a historically low of 54 basis points. In point of reference, this spread averaged 121 basis points since 2006, with a peak reading of 347 basis points. The recent narrowing

in credit spreads reflected waning concerns over the quality of corporate credits, especially during an economic expansion, and investor demand for higher yields. Applications for mortgage loans in late May were down 50% on a YoY basis, led by the 62% YoY decline in applications to refinance existing mortgages. Mortgage rates trended lower over the c o u r s e o f M a y . T h e conventional, 30-year fixed mortgage rate fell to its lowest level since October 2013.

Financial Developments

3.01%

2.48%

2.4%

2.5%

2.6%

2.7%

2.8%

2.9%

3.0%

3.1%

14 F M A M

2014 YTD Trends -- 10 Year Treasury Note Rate

3.34

4.58

4.10 4.12

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

13 A J O 14 A

Rateon30yearConventionalMortgages2013‐2014YTD%

1.04

0.74

0.79

0.63

0.540.50

0.60

0.70

0.80

0.90

1.00

1.10

13 A J O 14 A

2013-14 YTD Spread Between AAA & BAA CorporatesPct Pts

0.85

0.25

‐1.00

‐0.50

0.00

0.50

1.00

1.50

2.00

10

11

12

13

14

10‐YearTreasuryInflation‐IndexRate%

Documents

Inside this issue California Banks and Thriftscarpentercompany.com/uploads/files/53077564_Monthly Stock Report -5...average price to LTM (last 12 months through March 2014) earnings