Acquisition of OneWest Creating a Commercial Bank for the Middle Market July 22, 2014 0
Acquisition of OneWest: Delivering On Our Strategic Agenda Creates a Commercial Bank With 67 Billion in Assets CIT Bank more than doubles in size to 41 billion in assets and 28 billion in deposits Advances Our 73 branches in Los…
Transaction Summary Pro Forma Assets ( billions) 44 23 673 Deposits ( billions) 14 15 283 Net Income ( millions) 643 243 8704 Branches 0 73 73. CIT will acquire 100% of OneWest for 2.0 billion in cash and 31.3 million CIT…
Combination With OneWest 4
OneWest is a Leading Los Angeles Based Bank Franchise Highlights 73 Branches in Southern California This map is saved in Dealworks folder 1601736-002 Founded 2009 Branches 73 (63 in Los Angeles MSA, all in CA) Employees 2,160…
Los Angeles is One of the Country's Most Attractive Banking Markets Los Angeles Deposit Market Share of LA-Based Banks billions 18.2 13.3 12.4 7.1 4.8 3.8 3.3 3.0 2.3 2.3 City National OneWest East West PacWest Cathay F&M BBCN…
OneWests Commercial Banking Platform Has Experienced Strong Growth OneWest has grown into a leading hometown bank in the attractive Los Angeles market through disciplined, opportunistic acquisitions and consistent organic growth…
CIT Will Be Majority Deposit Funded CIT OneWest Pro Forma Total Funding Secured debt FHLB FHLB 17% 22% 8% Secured debt 11% Unsecured Deposits Deposits Unsecured Deposits debt 44% 78% debt 57% 39% 24% Total: 31 billion /…
More Than Half of CIT's Total Assets Will Be in CIT Bank CIT OneWest Pro Forma Total Assets Non-Bank…
Complementary Commercial Franchises North American Commercial Finance Corporate Finance 7.3 billion Commercial Lending Commercial Real Estate 1.7 billion Middle Market 2.9 billion Equipment Finance 4.3 billion Commercial RE 1.6…
OneWests Legacy Portfolio is a Low-Risk Earnings Source 9 billion portfolio yielding 5% Acquired through four transactions in 2009 and 2010, three of which were FDIC-assisted Substantially all loans were originally covered by loss…
Proven Management Team With Deep Experience John Thain Chairman and Chief Executive Officer Steven Mnuchin Nelson Chai Joseph Otting Jeff Knittel Vice Chairman of CIT Co-President of CIT Co-President of CIT President of…
Integration Framework Limited Integration Risk Low Risk Balance Sheet SIFI Readiness CIT will maintain OneWests 60% of OneWests balance CIT was preparing to surpass existing branches and sheet is cash, securities, 50 billion of…
Financially Attractive Combination 14
Attractive Opportunity Transaction Multiples CITs Acquisition of OneWest Adjusted for NOL Benefit and Recent California Stated 9.0% TCE/TA Transactions Banks Price / Tangible Book Value 1.2x 1.1x 1.7x 2.3x Price / Earnings4…
Key Transaction Assumptions Synergies Cost 20 million pre-tax per annum Fully phased-in by 2016 Funding 20 million pre-tax per annum Fully phased-in by 2016 Reflects improved balance sheet liquidity and credit profile Revenue…
Highly Accretive Transaction 2016E (synergies 100% phased in) Standalone EPS 3.73 Pro forma EPS 4.49 / share accretion 0.76 % accretion 20% IRR 15% Note: See Appendix for additional detail Represents mean of published…
Achieving Our Return on Equity Objective 2014 Investor Day Assumed no valuation allowance reversal Today 300 bps 100 bps 50 bps 100+ bps 500 million Acquisition of Growth Additional OneWest ROA 1213% 2014 Share…
Delivering On Our Strategic Agenda 19
Acquisition of OneWest: Delivering On Our Strategic Agenda Advances Our Bank Strategy Complements Our Commercial Finance Franchise Accelerates Realization of Embedded Value Financially Compelling 20
Appendix 21
Earnings Per Share Accretion/(Dilution) Detailed Build Millions Millions of Shares per Share CIT Standalone Mean of 2016E Analyst Pre-Tax Income Estimates 919 Expected Tax Rate 30% 1 CIT 2016E After-Tax Earnings 643 172 3.73 Pro…
Tangible Book Value Per Share Accretion/(Dilution) Detail Detailed Build Millions Millions of Shares per Share CIT Standalone CIT Tangible Book Value as of June 30, 2014 8,198 186 44.16 Three Quarters of IBES Mean Net Income Prior…
Transaction Multiples Detail Detailed Build Stated Adjusted for NOL Benefit and 9.0% TCE/TA Metric Multiple Metric Multiple Deal Value 3,411 2,277 1 Price / Tangible Book Value 2,805 1.2x 2,021 2 1.1x Price / Earnings 243 14x…
OneWest Historical Income Statement Millions Year ended 12/31/13 Call report Interest income Loans 834 Mortgage-backed and other securities 77 Other (38) Total interest incom e 873 Interest expense Deposits 121 Other borrow ings…
OneWest Historical Balance Sheet Millions Year ended 12/31/13 Six months ended 6/30/14 Call Report Preliminary Cash and cash equivalents 6,308 4,586 Securities 1,271 1,222 Total cash and securities 7,579 5,808 Loans and leases…
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