Banc of California, Inc. (NYSE: BANC) today reported net income of $12.6 million and net income available to common shareholders of $11.7 million, or $0.29 per diluted common share, for the quarter ended March 31, 2015. This compares to net income available to common shareholders of $9.2 million, or $0.25 per diluted common share, for the quarter ended December 31, 2014, and a net loss to common shareholders of $0.2 million, or $(0.01) per diluted common share, for the year ago quarter ended March 31, 2014.
“We are proud of our strong first quarter results which were marked by record net income for the Company,” said Steven Sugarman, President and Chief Executive Officer. “This quarter’s strength was supported by a full quarter of benefit from the Popular transaction. We are also particularly proud of obtaining an investment grade credit rating for the Company and the Bank subsidiary, which highlights the strength of the Company’s balance sheet and validates our ability to serve the diverse needs of clients across the state as California’s Bank.”
The Company’s consolidated assets totaled $6.1 billion at March 31, 2015, an increase of $0.1 billion compared to the prior quarter, and an increase of $2.1 billion compared to a year ago.
Return on average assets for the first quarter was 0.9%, and return on average tangible common equity was 13.5% for the first quarter.
Total loans and leases, representing both loans held for investment and held for sale, of $5.2 billion at March 31, 2015 increased by $38 million compared to the prior quarter, and have increased by $1.8 billion compared to the year ago quarter. First quarter origination volumes remained strong and totaled $1.5 billion. Held for investment loan balances declined slightly from the prior quarter, as net loan growth was muted by pay downs and payoffs as well as the sale of $29 million of multifamily loans during the quarter.
Total deposits of $4.9 billion at March 31, 2015 increased by $190 million, or 4%, compared to the prior quarter, and have increased by $1.8 billion, or 56%, compared to the year ago quarter. Noninterest-bearing deposits increased by $87 million, or 13%, compared to the prior quarter.
Total revenue of $98.0 million for the first quarter increased by $10.8 million, or 12%, compared with the prior quarter, and increased by $37.5 million, or 62%, compared to the year ago quarter.
First quarter net interest income of $52.0 million increased by $5.7 million, or 12%, from the prior quarter, and increased by $16.8 million, or 48%, compared to the year ago quarter.
The consolidated net interest margin for the first quarter was 3.69%, an increase of 4 basis points from 3.65% reported in the prior quarter. The net interest margin for Banc of California, N.A. was 3.84% for the first quarter, an increase of 2 basis points from prior quarter. Cost of total deposits for the first quarter was 0.54%, down 6 basis points, or 10%, from the prior quarter, and was the primary driver of margin expansion during the quarter as overall loan yields remained relatively stable at 4.59%.
Noninterest income for the first quarter totaled $46.0 million, compared to $40.9 million for the prior quarter and $25.3 million for the year ago quarter. Mortgage banking income totaled $37.9 million for the first quarter, compared to $25.0 million for the prior quarter and $17.3 million for the year ago quarter. Both origination volumes and gain on sale margins increased in the first quarter, contributing to higher mortgage banking income.
Total noninterest expense for the first quarter totaled $75.9 million, a decrease of $2.3 million compared to the prior quarter. The prior quarter included approximately $5.9 million of non-recurring costs, primarily related to the Popular acquisition. Noninterest expense for the first quarter includes a full quarter of ongoing expenses related to operation of the acquired Popular branch locations. Higher mortgage banking origination volumes during the first quarter contributed to the sequential quarter increase in expenses excluding the $5.9 million of one-time costs in the prior quarter.
The Company’s allowance for loan and lease losses (ALLL) ended the quarter at $29.3 million, and equaled 1.35% of originated loans, and represented a coverage ratio of 69% of nonperforming loans at March 31, 2015. There was no provision for loan losses for the first quarter, compared to $4.2 million in the prior quarter. The ratio of delinquent non-PCI loans to total non-PCI loans equaled 1.66% for the first quarter, up from 1.55% at the prior quarter, and down from 2.21% a year ago. The ratio of nonperforming assets to total assets stood at 0.71% for the first quarter. Net charge offs for the first quarter were $0.1 million, compared to a net recovery of less than $0.1 million during the prior quarter.
The Company remains well-capitalized with a Tier 1 Risk-Based Capital Ratio of 10.9%, a Tier 1 Leverage Ratio of 8.0%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 7.6%, as of March 31, 2015. On a pro-forma basis, as a result of the debt and preferred offerings in early April, the Company had a Tier 1 Risk-Based Capital Ratio of 13.2%, a Tier 1 Leverage Ratio of 9.9%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 9.0% based on applying the net proceeds raised to the March 31, 2015 consolidated balance sheet.
The Company will host a conference call to discuss its first quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, April 30, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 5076389. A live audio webcast will also be available and the webcast link will be posted on the Company’s website under the Investors section. The slide presentation for the call will also be available on the Company's website prior to the call.
About Banc of California, Inc.
Banc of California, Inc. (NYSE: BANC) has total assets over $6 billion and is the largest bank holding company headquartered in Orange County, CA. The Company’s principal subsidiary, Banc of California, N.A., provides banking services to California’s diverse private businesses, entrepreneurs and homeowners. Banc of California operates over 100 offices, including 38 full-service branch locations in California.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
Banc of California, Inc. | ||||||||||||||||||||||||||
| Consolidated Statements of Financial Condition | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 265,402 | $ | 231,199 | $ | 184,985 | $ | 258,051 | $ | 333,639 | ||||||||||||||||
| Time deposits in financial institutions | 1,900 | 1,900 | 1,900 | 2,145 | 1,745 | |||||||||||||||||||||
| Securities available for sale | 393,586 | 345,695 | 310,385 | 233,013 | 107,525 | |||||||||||||||||||||
| Loans held for sale | 1,240,942 | 1,187,090 | 1,127,339 | 1,095,741 | 1,000,394 | |||||||||||||||||||||
| Loans and leases receivable | 3,933,715 | 3,949,122 | 2,712,068 | 2,602,213 | 2,396,995 | |||||||||||||||||||||
| Allowance for loan and lease losses | (29,345 | ) | (29,480 | ) | (25,283 | ) | (22,627 | ) | (20,003 | ) | ||||||||||||||||
| Federal Home Loan Bank and other bank stock | 39,844 | 42,241 | 35,432 | 34,392 | 26,801 | |||||||||||||||||||||
| Servicing rights, net | 21,829 | 19,566 | 11,745 | 10,191 | 18,880 | |||||||||||||||||||||
| Other real estate owned, net | 498 | 423 | 605 | 605 | 150 | |||||||||||||||||||||
| Premises and equipment, net | 78,285 | 78,685 | 67,323 | 67,457 | 67,278 | |||||||||||||||||||||
| Goodwill | 31,591 | 31,591 | 31,591 | 32,150 | 32,868 | |||||||||||||||||||||
| Other intangible assets, net | 23,708 | 25,252 | 10,829 | 10,959 | 11,213 | |||||||||||||||||||||
Deferred income tax(1) | 14,157 | 16,373 | 8,663 | 2,546 | - | |||||||||||||||||||||
| Income tax receivable | - | - | - | - | 2,769 | |||||||||||||||||||||
| Bank-owned life insurance investment | 19,154 | 19,095 | 19,038 | 18,984 | 18,928 | |||||||||||||||||||||
Other assets(1) | 62,089 | 52,545 | 41,206 | 40,511 | 31,283 | |||||||||||||||||||||
| Total assets | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | $ | 4,386,331 | $ | 4,030,465 | ||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 749,129 | $ | 662,295 | $ | 457,743 | $ | 408,404 | $ | 430,925 | ||||||||||||||||
| Interest-bearing deposits | 4,112,863 | 4,009,536 | 3,173,967 | 2,938,951 | 2,678,221 | |||||||||||||||||||||
| Total deposits | 4,861,992 | 4,671,831 | 3,631,710 | 3,347,355 | 3,109,146 | |||||||||||||||||||||
| Advances from Federal Home Loan Bank | 545,000 | 633,000 | 305,000 | 450,000 | 395,000 | |||||||||||||||||||||
| Other borrowings | 15,000 | - | - | - | 70,000 | |||||||||||||||||||||
| Notes payable, net | 92,668 | 93,569 | 95,549 | 96,481 | 82,416 | |||||||||||||||||||||
| Reserve for loss reimbursements on sold loans | 8,432 | 8,303 | 7,045 | 6,174 | 5,866 | |||||||||||||||||||||
| Income taxes payable | 4,488 | 56 | 2,158 | 31 | - | |||||||||||||||||||||
| Accrued expenses and other liabilities | 55,615 | 61,223 | 49,653 | 47,163 | 42,880 | |||||||||||||||||||||
| Total liabilities | 5,583,195 | 5,467,982 | 4,091,115 | 3,947,204 | 3,705,308 | |||||||||||||||||||||
| Commitments and contingent liabilities | ||||||||||||||||||||||||||
| Preferred stock, Series A, non-cumulative perpetual preferred stock | 31,934 | 31,934 | 31,934 | 31,934 | 31,934 | |||||||||||||||||||||
| Preferred stock, Series B, non-cumulative perpetual preferred stock | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||||||||
| Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock | 37,943 | 37,943 | 37,943 | 37,943 | 37,943 | |||||||||||||||||||||
| Common stock | 367 | 358 | 297 | 287 | 211 | |||||||||||||||||||||
| Common stock, class B non-voting non-convertible | - | 6 | 6 | 6 | 6 | |||||||||||||||||||||
| Additional paid-in capital | 424,636 | 422,910 | 371,738 | 369,530 | 258,861 | |||||||||||||||||||||
| Retained earnings (1) | 36,880 | 29,589 | 24,692 | 18,588 | 14,229 | |||||||||||||||||||||
| Treasury stock | (29,798 | ) | (29,798 | ) | (29,798 | ) | (29,652 | ) | (27,726 | ) | ||||||||||||||||
| Accumulated other comprehensive (loss)/income, net | 2,198 | 373 | (101 | ) | 491 | (301 | ) | |||||||||||||||||||
| Total stockholders’ equity | 514,160 | 503,315 | 446,711 | 439,127 | 325,157 | |||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | $ | 4,386,331 | $ | 4,030,465 | ||||||||||||||||
(1) | Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit. | |||
Banc of California, Inc. | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||||||
| Interest and dividend income | |||||||||||||||||||||||
| Loans, including fees | $ | 58,155 | $ | 52,599 | $ | 44,555 | $ | 42,077 | $ | 41,530 | |||||||||||||
| Securities | 1,927 | 1,781 | 1,460 | 993 | 924 | ||||||||||||||||||
| Dividends and other interest-earning assets | 698 | 700 | 634 | 564 | 322 | ||||||||||||||||||
| Total interest and dividend income | 60,780 | 55,080 | 46,649 | 43,634 | 42,776 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Deposits | 6,361 | 6,440 | 6,165 | 6,071 | 5,735 | ||||||||||||||||||
| Federal Home Loan Bank advances | 353 | 210 | 118 | 99 | 100 | ||||||||||||||||||
| Notes payable and other interest-bearing liabilities | 2,069 | 2,099 | 2,180 | 1,889 | 1,756 | ||||||||||||||||||
Total interest expense | 8,783 | 8,749 | 8,463 | 8,059 | 7,591 | ||||||||||||||||||
| Net interest income | 51,997 | 46,331 | 38,186 | 35,575 | 35,185 | ||||||||||||||||||
| Provision for loan and lease losses | - | 4,159 | 2,780 | 2,108 | 1,929 | ||||||||||||||||||
| Net interest income after provision for loan and lease losses | 51,997 | 42,172 | 35,406 | 33,467 | 33,256 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||
| Customer service fees | 910 | 651 | 230 | 356 | 253 | ||||||||||||||||||
| Net gain on sale of loans | 4,472 | 3,927 | 10,260 | 3,038 | 2,603 | ||||||||||||||||||
| Mortgage banking income | 37,933 | 25,030 | 26,943 | 26,133 | 17,324 | ||||||||||||||||||
| Advisory service fees | 1,197 | 6,722 | 3,264 | 1,808 | 1,110 | ||||||||||||||||||
| Loan brokerage income | 1,141 | 2,314 | 2,033 | 2,416 | 1,911 | ||||||||||||||||||
| All other income | 327 | 2,245 | 1,368 | 1,621 | 2,077 | ||||||||||||||||||
| Total noninterest income | 45,980 | 40,889 | 44,098 | 35,372 | 25,278 | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||
| Salaries and employee benefits | 49,771 | 47,974 | 41,094 | 39,130 | 34,681 | ||||||||||||||||||
| Occupancy and equipment | 9,771 | 9,512 | 7,969 | 7,425 | 8,537 | ||||||||||||||||||
| Professional fees | 3,435 | 7,096 | 4,758 | 3,528 | 3,865 | ||||||||||||||||||
| Data processing | 1,835 | 1,884 | 1,286 | 1,270 | 791 | ||||||||||||||||||
| Amortization of intangible assets | 1,544 | 1,306 | 890 | 944 | 939 | ||||||||||||||||||
All other expenses(1) | 9,523 | 10,448 | 11,357 | 8,007 | 8,781 | ||||||||||||||||||
| Total noninterest expense | 75,879 | 78,220 | 67,354 | 60,304 | 57,594 | ||||||||||||||||||
| Income before income taxes | 22,098 | 4,841 | 12,150 | 8,535 | 940 | ||||||||||||||||||
Income tax (benefit) expense(1) | 9,524 | (5,269 | ) | 903 | 436 | 191 | |||||||||||||||||
| Net income | 12,574 | 10,110 | 11,247 | 8,099 | 749 | ||||||||||||||||||
| Preferred stock dividends | 910 | 910 | 910 | 910 | 910 | ||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 11,664 | $ | 9,200 | $ | 10,337 | $ | 7,189 | $ | (161 | ) | ||||||||||||
| Basic earnings (loss) per total common share | $ | 0.30 | $ | 0.25 | $ | 0.31 | $ | 0.27 | $ | (0.01 | ) | ||||||||||||
| Diluted earnings (loss) per total common share | $ | 0.29 | $ | 0.25 | $ | 0.31 | $ | 0.27 | $ | (0.01 | ) | ||||||||||||
(1) | Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit. | |||
Banc of California, Inc. | ||||||||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Average balances: | ||||||||||||||||||||||||||
| Total assets | $ | 5,931,426 | $ | 5,223,463 | $ | 4,391,523 | $ | 4,034,447 | $ | 3,728,170 | ||||||||||||||||
| Total gross loans and leases | 5,139,399 | 4,534,428 | 3,829,204 | 3,553,693 | 3,289,689 | |||||||||||||||||||||
| Securities available for sale | 354,475 | 310,454 | 257,067 | 168,230 | 163,007 | |||||||||||||||||||||
| Total interest earning assets | 5,713,766 | 5,033,973 | 4,228,555 | 3,858,772 | 3,568,092 | |||||||||||||||||||||
| Total interest-bearing deposits | 4,085,673 | 3,699,464 | 3,070,130 | 2,855,650 | 2,592,884 | |||||||||||||||||||||
| Total borrowings | 583,979 | 406,531 | 378,671 | 319,774 | 350,631 | |||||||||||||||||||||
| Interest bearing liabilities | 4,669,652 | 4,105,995 | 3,448,801 | 3,175,424 | 2,943,515 | |||||||||||||||||||||
| Total stockholders’ equity | 517,335 | 487,578 | 449,392 | 385,098 | 329,617 | |||||||||||||||||||||
| Profitability and other ratios: | ||||||||||||||||||||||||||
Return on average assets(1) | 0.86 | % | 0.77 | % | 1.02 | % | 0.81 | % | 0.08 | % | ||||||||||||||||
Return on average equity(1) | 9.86 | % | 8.23 | % | 9.93 | % | 8.44 | % | 0.92 | % | ||||||||||||||||
Dividend payout ratio(2) | 40.00 | % | 48.00 | % | 38.71 | % | 44.44 | % | - | |||||||||||||||||
| Net interest spread | 3.55 | % | 3.49 | % | 3.41 | % | 3.52 | % | 3.81 | % | ||||||||||||||||
Net interest margin(1) | 3.69 | % | 3.65 | % | 3.58 | % | 3.70 | % | 4.00 | % | ||||||||||||||||
Noninterest income to total revenue(3) | 46.93 | % | 46.88 | % | 53.59 | % | 49.86 | % | 41.81 | % | ||||||||||||||||
Noninterest income to average total assets(1) | 3.14 | % | 3.11 | % | 3.98 | % | 3.52 | % | 2.75 | % | ||||||||||||||||
Noninterest expense to average total assets(1) | 5.19 | % | 5.94 | % | 6.08 | % | 6.00 | % | 6.27 | % | ||||||||||||||||
Efficiency ratio(4) | 77.45 | % | 89.68 | % | 81.86 | % | 85.00 | % | 95.25 | % | ||||||||||||||||
| Average held for investment loans and leases to average deposits | 81.72 | % | 79.08 | % | 75.39 | % | 74.60 | % | 80.27 | % | ||||||||||||||||
| Average securities available for sale to average total assets | 5.98 | % | 5.94 | % | 5.85 | % | 4.17 | % | 4.37 | % | ||||||||||||||||
| Average stockholders’ equity to average total assets | 8.72 | % | 9.33 | % | 10.23 | % | 9.55 | % | 8.84 | % | ||||||||||||||||
| Allowance for loan and lease losses (ALLL): | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 29,480 | $ | 25,283 | $ | 22,627 | $ | 20,003 | $ | 18,805 | ||||||||||||||||
| Loans and leases charged off | (357 | ) | (25 | ) | (312 | ) | (383 | ) | (203 | ) | ||||||||||||||||
| Recoveries of loans and leases previously charged off | 222 | 63 | 96 | 641 | 435 | |||||||||||||||||||||
| Transfer of loans from (to) held-for-sale | - | - | 92 | 258 | (963 | ) | ||||||||||||||||||||
| Provision for loan and lease losses | - | 4,159 | 2,780 | 2,108 | 1,929 | |||||||||||||||||||||
| Balance at end of period | $ | 29,345 | $ | 29,480 | $ | 25,283 | $ | 22,627 | $ | 20,003 | ||||||||||||||||
Reserve for loss on repurchased loans: | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 8,303 | $ | 7,045 | $ | 6,174 | $ | 5,866 | $ | 5,427 | ||||||||||||||||
| Provision for loan repurchases | 1,328 | 1,149 | 1,556 | 968 | 571 | |||||||||||||||||||||
| Payment made for loss reimbursement on sold loans | (1,199 | ) | 109 | (685 | ) | (660 | ) | (132 | ) | |||||||||||||||||
| Balance at end of period | $ | 8,432 | $ | 8,303 | $ | 7,045 | $ | 6,174 | $ | 5,866 | ||||||||||||||||
(1) | Ratios are presented on an annualized basis | |||
(2) | Dividends declared per common share divided by basic earnings per share. Not applicable for the three months ended March 31, 2014, due to the net loss attributable to stockholders. | |||
(3) | Total revenue is equal to the sum of net interest income before provision and noninterest income. | |||
(4) | The ratios were calculated by dividing noninterest expense by the sum of net interest income before provision for loan and lease losses and noninterest income. | |||
Banc of California, Inc. | ||||||||||||||||||||||||||
| Selected Financial Data, Continued | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Asset quality information and ratios: | ||||||||||||||||||||||||||
| 30 to 89 days delinquent, excluding PCI loans | $ | 40,641 | $ | 40,694 | $ | 35,531 | $ | 44,894 | $ | 29,726 | ||||||||||||||||
| 90+ days delinquent, excluding PCI loans | 20,538 | 16,835 | 15,672 | 16,925 | 16,419 | |||||||||||||||||||||
| Total delinquent loans, excluding PCI loans | 61,179 | 57,529 | 51,203 | 61,819 | 46,145 | |||||||||||||||||||||
| PCI loans, 30 to 89 days delinquent | 16,375 | 17,641 | 18,743 | 25,109 | 19,898 | |||||||||||||||||||||
| PCI loans, 90+ days delinquent | 6,986 | 5,761 | 4,017 | 12,398 | 12,110 | |||||||||||||||||||||
| Total delinquent PCI loans | 23,361 | 23,402 | 22,760 | 37,507 | 32,008 | |||||||||||||||||||||
| Total delinquent loans | $ | 84,540 | $ | 80,931 | $ | 73,963 | $ | 99,326 | $ | 78,153 | ||||||||||||||||
| Total delinquent non-PCI loans to total non-PCI loans | 1.66 | % | 1.55 | % | 2.08 | % | 2.69 | % | 2.21 | % | ||||||||||||||||
| Total delinquent loans to gross loans | 2.15 | % | 2.05 | % | 2.73 | % | 3.82 | % | 3.26 | % | ||||||||||||||||
| Non-performing loans, excluding PCI loans | $ | 42,754 | $ | 38,381 | $ | 38,333 | $ | 41,611 | $ | 32,440 | ||||||||||||||||
| 90+ days delinquent and still accruing loans, excluding PCI loans | - | - | - | - | - | |||||||||||||||||||||
| Other real estate owned | 498 | 423 | 605 | 605 | 150 | |||||||||||||||||||||
| Non-performing assets | $ | 43,252 | $ | 38,804 | $ | 38,938 | $ | 42,216 | $ | 32,590 | ||||||||||||||||
| ALLL to non-performing loans | 68.64 | % | 76.81 | % | 65.96 | % | 54.38 | % | 61.66 | % | ||||||||||||||||
| Non-performing loans to gross loans | 1.09 | % | 0.97 | % | 1.41 | % | 1.60 | % | 1.35 | % | ||||||||||||||||
| Non-performing assets to total assets | 0.71 | % | 0.65 | % | 0.86 | % | 0.96 | % | 0.81 | % | ||||||||||||||||
Banc of California, Inc. | ||||||||||||||||||||||||||
| Selected Financial Data, Continued | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Loan and lease breakdown by ALLL evaluation type: | ||||||||||||||||||||||||||
| Originated loans and leases | ||||||||||||||||||||||||||
| Individually evaluated for impairment | $ | 29,301 | $ | 29,287 | $ | 29,030 | $ | 29,763 | $ | 13,504 | ||||||||||||||||
| Collectively evaluated for impairment | 1,947,211 | 1,892,240 | 1,668,004 | 1,447,077 | 1,210,993 | |||||||||||||||||||||
| Acquired loans through business acquisitions - non-impaired | ||||||||||||||||||||||||||
| Individually evaluated for impairment | 2,818 | 4,191 | 8,004 | 6,173 | 1,759 | |||||||||||||||||||||
| Collectively evaluated for impairment | 1,358,184 | 1,411,927 | 377,554 | 409,745 | 438,816 | |||||||||||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | 354,402 | 364,580 | 376,575 | 404,398 | 418,501 | |||||||||||||||||||||
| Acquired with deteriorated credit quality | 241,799 | 246,897 | 252,901 | 305,057 | 313,422 | |||||||||||||||||||||
| Total loans | $ | 3,933,715 | $ | 3,949,122 | $ | 2,712,068 | $ | 2,602,213 | $ | 2,396,995 | ||||||||||||||||
| ALLL breakdown: | ||||||||||||||||||||||||||
| Originated loans and leases | ||||||||||||||||||||||||||
| Individually evaluated for impairment | $ | 1,199 | $ | 1,288 | $ | 517 | $ | 309 | $ | 62 | ||||||||||||||||
| Collectively evaluated for impairment | 25,474 | 25,263 | 22,011 | 19,427 | 17,398 | |||||||||||||||||||||
| Acquired loans through business acquisitions - non-impaired | ||||||||||||||||||||||||||
| Individually evaluated for impairment | - | - | 7 | - | - | |||||||||||||||||||||
| Collectively evaluated for impairment | 2,466 | 2,906 | 2,748 | 2,570 | 2,347 | |||||||||||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | - | - | - | - | - | |||||||||||||||||||||
| Acquired with deteriorated credit quality | 206 | 23 | - | 321 | 196 | |||||||||||||||||||||
| Total ALLL | $ | 29,345 | $ | 29,480 | $ | 25,283 | $ | 22,627 | $ | 20,003 | ||||||||||||||||
| Discount on Purchased/Acquired Loans: | ||||||||||||||||||||||||||
| Acquired loans through business acquisitions - non-impaired | $ | 16,877 | $ | 16,441 | $ | 6,512 | $ | 6,536 | $ | 7,479 | ||||||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | 28,967 | 29,955 | 30,811 | 33,044 | 34,619 | |||||||||||||||||||||
| Acquired with deteriorated credit quality | 53,381 | 55,865 | 57,961 | 84,876 | 89,302 | |||||||||||||||||||||
| Total Discount | $ | 99,225 | $ | 102,261 | $ | 95,284 | $ | 124,456 | $ | 131,400 | ||||||||||||||||
| Ratios: | ||||||||||||||||||||||||||
| To originated loans: | ||||||||||||||||||||||||||
| Individually evaluated for impairment | 4.09 | % | 4.40 | % | 1.78 | % | 1.04 | % | 0.46 | % | ||||||||||||||||
| Collectively evaluated for impairment | 1.31 | % | 1.34 | % | 1.32 | % | 1.34 | % | 1.44 | % | ||||||||||||||||
| Total ALLL | 1.35 | % | 1.38 | % | 1.33 | % | 1.34 | % | 1.43 | % | ||||||||||||||||
| To originated and acquired non-impaired loans: | ||||||||||||||||||||||||||
| Individually evaluated for impairment | 3.73 | % | 3.85 | % | 1.41 | % | 0.86 | % | 0.41 | % | ||||||||||||||||
| Collectively evaluated for impairment | 0.85 | % | 0.85 | % | 1.21 | % | 1.18 | % | 1.20 | % | ||||||||||||||||
| Total ALLL | 0.87 | % | 0.88 | % | 1.21 | % | 1.18 | % | 1.19 | % | ||||||||||||||||
Total ALLL and discount(1) | 1.38 | % | 1.38 | % | 1.53 | % | 1.52 | % | 1.64 | % | ||||||||||||||||
| To total loans: | ||||||||||||||||||||||||||
| Individually evaluated for impairment | 3.73 | % | 3.85 | % | 1.41 | % | 0.86 | % | 0.41 | % | ||||||||||||||||
| Collectively evaluated for impairment | 0.76 | % | 0.77 | % | 1.02 | % | 0.97 | % | 0.95 | % | ||||||||||||||||
| Total ALLL | 0.75 | % | 0.75 | % | 0.93 | % | 0.87 | % | 0.83 | % | ||||||||||||||||
Total ALLL and discount(1) | 3.27 | % | 3.34 | % | 4.45 | % | 5.65 | % | 6.32 | % | ||||||||||||||||
(1) | The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans. | ||
Banc of California, Inc. | ||||||||||||||||||||||||||
| Selected Financial Data, Continued | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Composition of held for investment loans and leases | ||||||||||||||||||||||||||
| Commercial real estate | $ | 975,734 | $ | 999,857 | $ | 521,867 | $ | 535,744 | $ | 560,581 | ||||||||||||||||
| Multi-family | 940,053 | 955,683 | 367,364 | 234,179 | 155,382 | |||||||||||||||||||||
| Construction | 38,081 | 42,198 | 25,997 | 30,761 | 25,144 | |||||||||||||||||||||
| Commercial and industrial | 489,229 | 490,900 | 366,416 | 368,540 | 299,184 | |||||||||||||||||||||
| SBA | 48,254 | 36,155 | 25,729 | 28,684 | 26,541 | |||||||||||||||||||||
| Lease financing | 102,012 | 85,749 | 72,027 | 57,754 | 48,537 | |||||||||||||||||||||
Total commercial loans | 2,593,363 | 2,610,542 | 1,379,400 | 1,255,662 | 1,115,369 | |||||||||||||||||||||
| Single family residential mortgage | 1,169,134 | 1,171,662 | 1,191,021 | 1,212,813 | 1,158,863 | |||||||||||||||||||||
| Other consumer | 171,218 | 166,918 | 141,647 | 133,738 | 122,763 | |||||||||||||||||||||
| Total consumer loans | 1,340,352 | 1,338,580 | 1,332,668 | 1,346,551 | 1,281,626 | |||||||||||||||||||||
| Total gross loans and leases | $ | 3,933,715 | $ | 3,949,122 | $ | 2,712,068 | $ | 2,602,213 | $ | 2,396,995 | ||||||||||||||||
| Composition percentage of held for investment loans and leases | ||||||||||||||||||||||||||
| Commercial real estate | 24.8 | % | 25.3 | % | 19.2 | % | 20.6 | % | 23.4 | % | ||||||||||||||||
| Multi-family | 23.9 | % | 24.2 | % | 13.5 | % | 9.0 | % | 6.5 | % | ||||||||||||||||
| Construction | 1.0 | % | 1.1 | % | 1.0 | % | 1.2 | % | 1.0 | % | ||||||||||||||||
| Commercial and industrial | 12.4 | % | 12.4 | % | 13.5 | % | 14.2 | % | 12.5 | % | ||||||||||||||||
| SBA | 1.2 | % | 0.9 | % | 0.9 | % | 1.1 | % | 1.1 | % | ||||||||||||||||
| Lease financing | 2.6 | % | 2.2 | % | 2.7 | % | 2.2 | % | 2.0 | % | ||||||||||||||||
| Total commercial loans | 65.9 | % | 66.1 | % | 50.8 | % | 48.3 | % | 46.5 | % | ||||||||||||||||
| Single family residential mortgage | 29.7 | % | 29.7 | % | 44.0 | % | 46.6 | % | 48.4 | % | ||||||||||||||||
| Other consumer | 4.4 | % | 4.2 | % | 5.2 | % | 5.1 | % | 5.1 | % | ||||||||||||||||
| Total consumer loans | 34.1 | % | 33.9 | % | 49.2 | % | 51.7 | % | 53.5 | % | ||||||||||||||||
| Total gross loans and leases | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
| Composition of deposits | ||||||||||||||||||||||||||
| Noninterest-bearing checking | $ | 749,129 | $ | 662,295 | $ | 457,743 | $ | 408,404 | $ | 430,925 | ||||||||||||||||
| Interest-bearing checking | 1,032,482 | 1,054,828 | 779,704 | 688,699 | 644,649 | |||||||||||||||||||||
| Money market | 1,136,562 | 1,074,432 | 769,291 | 618,231 | 502,368 | |||||||||||||||||||||
| Savings | 898,483 | 985,646 | 932,133 | 985,028 | 986,201 | |||||||||||||||||||||
| Certificates of deposit | 1,045,336 | 894,630 | 692,839 | 646,993 | 545,003 | |||||||||||||||||||||
| Total deposits | $ | 4,861,992 | $ | 4,671,831 | $ | 3,631,710 | $ | 3,347,355 | $ | 3,109,146 | ||||||||||||||||
| Composition percentage of deposits | ||||||||||||||||||||||||||
| Noninterest-bearing checking | 15.4 | % | 14.2 | % | 12.6 | % | 12.2 | % | 13.9 | % | ||||||||||||||||
| Interest-bearing checking | 21.2 | % | 22.6 | % | 21.5 | % | 20.6 | % | 20.7 | % | ||||||||||||||||
| Money market | 23.4 | % | 23.0 | % | 21.2 | % | 18.5 | % | 16.2 | % | ||||||||||||||||
| Savings | 18.5 | % | 21.1 | % | 25.6 | % | 29.4 | % | 31.7 | % | ||||||||||||||||
| Certificates of deposit | 21.5 | % | 19.1 | % | 19.1 | % | 19.3 | % | 17.5 | % | ||||||||||||||||
| Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
Banc of California, Inc. | ||||||||||||||||||||||||||||||||||
| Average Balance, Average Yield Earned, and Average Cost Paid | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||||||||||
| March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||||||||||||||||||||||||
| Average | Yield | Average | Yield | Average | Yield | |||||||||||||||||||||||||||||
| Balance | Interest | /Cost | Balance | Interest | /Cost | Balance | Interest | /Cost | ||||||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||||||||||
| Loans held for sale and SFR mortgage | $ | 1,868,085 | $ | 17,477 | 3.79 | % | $ | 1,778,112 | $ | 16,741 | 3.74 | % | $ | 1,757,890 | $ | 16,979 | 3.83 | % | ||||||||||||||||
| Seasoned SFR mortgage loan pools | 591,724 | 9,413 | 6.45 | % | 606,879 | 9,605 | 6.28 | % | 675,083 | 11,753 | 6.91 | % | ||||||||||||||||||||||
| Commercial real estate, multi-family, and construction | 1,956,830 | 22,508 | 4.66 | % | 1,486,406 | 17,993 | 4.80 | % | 827,934 | 9,592 | 4.60 | % | ||||||||||||||||||||||
| Commercial and industrial, SBA, and lease financing | 572,726 | 7,239 | 5.13 | % | 523,194 | 6,192 | 4.70 | % | 451,992 | 5,060 | 4.44 | % | ||||||||||||||||||||||
| Other consumer | 150,034 | 1,518 | 4.10 | % | 139,837 | 2,068 | 5.87 | % | 116,305 | 1,171 | 3.99 | % | ||||||||||||||||||||||
| Gross loans and leases | 5,139,399 | 58,155 | 4.59 | % | 4,534,428 | 52,599 | 4.60 | % | 3,829,204 | 44,555 | 4.62 | % | ||||||||||||||||||||||
| Securities | 354,475 | 1,927 | 2.20 | % | 310,454 | 1,781 | 2.28 | % | 257,067 | 1,460 | 2.25 | % | ||||||||||||||||||||||
| Other interest-earning assets | 219,892 | 698 | 1.29 | % | 189,091 | 700 | 1.47 | % | 142,284 | 634 | 1.77 | % | ||||||||||||||||||||||
| Total interest-earning assets | 5,713,766 | 60,780 | 4.31 | % | 5,033,973 | 55,080 | 4.34 | % | 4,228,555 | 46,649 | 4.38 | % | ||||||||||||||||||||||
| Allowance for loan and lease losses | (29,623 | ) | (26,105 | ) | (23,266 | ) | ||||||||||||||||||||||||||||
| BOLI and non-interest earning assets | 247,283 | 215,595 | 186,234 | |||||||||||||||||||||||||||||||
| Total assets | $ | 5,931,426 | $ | 5,223,463 | $ | 4,391,523 | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||
| Savings | $ | 945,530 | $ | 1,748 | 0.75 | % | $ | 960,253 | $ | 1,963 | 0.81 | % | $ | 953,925 | $ | 2,215 | 0.92 | % | ||||||||||||||||
| Interest-bearing checking | 1,042,895 | 2,041 | 0.79 | % | 937,623 | 2,078 | 0.88 | % | 745,635 | 2,037 | 1.08 | % | ||||||||||||||||||||||
| Money market | 1,092,987 | 958 | 0.36 | % | 964,414 | 841 | 0.35 | % | 681,576 | 673 | 0.39 | % | ||||||||||||||||||||||
| Certificates of deposit | 1,004,261 | 1,614 | 0.65 | % | 837,174 | 1,558 | 0.74 | % | 688,994 | 1,240 | 0.71 | % | ||||||||||||||||||||||
| Total interest-bearing deposits | 4,085,673 | 6,361 | 0.63 | % | 3,699,464 | 6,440 | 0.69 | % | 3,070,130 | 6,165 | 0.80 | % | ||||||||||||||||||||||
| FHLB advances | 487,600 | 353 | 0.29 | % | 307,859 | 210 | 0.27 | % | 276,739 | 118 | 0.17 | % | ||||||||||||||||||||||
| Long-term debt and other interest-bearing liabilities | 96,379 | 2,069 | 8.71 | % | 98,672 | 2,099 | 8.44 | % | 101,932 | 2,180 | 8.48 | % | ||||||||||||||||||||||
| Total interest-bearing liabilities | 4,669,652 | 8,783 | 0.76 | % | 4,105,995 | 8,749 | 0.85 | % | 3,448,801 | 8,463 | 0.97 | % | ||||||||||||||||||||||
| Noninterest-bearing deposits | 682,492 | 577,623 | 448,825 | |||||||||||||||||||||||||||||||
| Non-interest-bearing liabilities | 61,947 | 52,267 | 44,505 | |||||||||||||||||||||||||||||||
| Total liabilities | 5,414,091 | 4,735,885 | 3,942,131 | |||||||||||||||||||||||||||||||
| Total stockholders’ equity | 517,335 | 487,578 | 449,392 | |||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,931,426 | $ | 5,223,463 | $ | 4,391,523 | ||||||||||||||||||||||||||||
| Net interest income/spread | $ | 51,997 | 3.55 | % | $ | 46,331 | 3.49 | % | $ | 38,186 | 3.41 | % | ||||||||||||||||||||||
| Net interest margin | 3.69 | % | 3.65 | % | 3.58 | % | ||||||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 122.36 | % | 122.60 | % | 122.61 | % | ||||||||||||||||||||||||||||
| Total deposits | $ | 4,768,165 | $ | 6,361 | 0.54 | % | $ | 4,277,087 | $ | 6,440 | 0.60 | % | $ | 3,518,955 | $ | 6,165 | 0.70 | % | ||||||||||||||||
Total funding(1) | $ | 5,352,144 | $ | 8,783 | 0.67 | % | $ | 4,683,618 | $ | 8,749 | 0.76 | % | $ | 3,897,626 | $ | 8,463 | 0.88 | % | ||||||||||||||||
(1) | Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total fundings. | |||
Banc of California, Inc. | ||||||||||||||||||||||||||||
| Average Balance, Average Yield Earned, and Average Cost Paid, Continued | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||||
| June 30, 2014 | March 31, 2014 | |||||||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||||||
| Balance | Interest | /Cost | Balance | Interest | /Cost | |||||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||||||||||
| Loans held for sale and SFR mortgage | $ | 1,590,982 | $ | 15,158 | 3.82 | % | $ | 1,397,650 | $ | 13,391 | 3.89 | % | ||||||||||||||||
| Seasoned SFR mortgage loan pools | 701,006 | 11,723 | 6.71 | % | 751,191 | 13,072 | 7.06 | % | ||||||||||||||||||||
| Commercial real estate, multi-family, and construction | 734,472 | 8,689 | 4.75 | % | 684,063 | 8,220 | 4.87 | % | ||||||||||||||||||||
| Commercial and industrial, SBA, and lease financing | 418,170 | 5,413 | 5.19 | % | 357,673 | 5,893 | 6.68 | % | ||||||||||||||||||||
| Other consumer | 109,063 | 1,094 | 4.02 | % | 99,112 | 954 | 3.90 | % | ||||||||||||||||||||
| Gross loans and leases | 3,553,693 | 42,077 | 4.75 | % | 3,289,689 | 41,530 | 5.12 | % | ||||||||||||||||||||
| Securities | 168,230 | 993 | 2.37 | % | 163,007 | 924 | 2.30 | % | ||||||||||||||||||||
| Other interest-earning assets | 136,849 | 564 | 1.65 | % | 115,396 | 322 | 1.13 | % | ||||||||||||||||||||
| Total interest-earning assets | 3,858,772 | 43,634 | 4.54 | % | 3,568,092 | 42,776 | 4.86 | % | ||||||||||||||||||||
| Allowance for loan and lease losses | (20,567 | ) | (19,392 | ) | ||||||||||||||||||||||||
| BOLI and non-interest earning assets | 196,242 | 179,470 | ||||||||||||||||||||||||||
| Total assets | $ | 4,034,447 | $ | 3,728,170 | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Savings | $ | 990,894 | $ | 2,425 | 0.98 | % | $ | 966,361 | $ | 2,516 | 1.06 | % | ||||||||||||||||
| Interest-bearing checking | 660,341 | 1,864 | 1.13 | % | 593,126 | 1,715 | 1.17 | % | ||||||||||||||||||||
| Money market | 603,917 | 639 | 0.42 | % | 515,131 | 572 | 0.45 | % | ||||||||||||||||||||
| Certificates of deposit | 600,498 | 1,143 | 0.76 | % | 518,266 | 932 | 0.73 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 2,855,650 | 6,071 | 0.85 | % | 2,592,884 | 5,735 | 0.90 | % | ||||||||||||||||||||
| FHLB advances | 226,429 | 99 | 0.18 | % | 259,611 | 100 | 0.16 | % | ||||||||||||||||||||
| Long-term debt and other interest-bearing liabilities | 93,345 | 1,889 | 8.12 | % | 91,020 | 1,756 | 7.82 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,175,424 | 8,059 | 1.02 | % | 2,943,515 | 7,591 | 1.05 | % | ||||||||||||||||||||
| Noninterest-bearing deposits | 428,221 | 416,074 | ||||||||||||||||||||||||||
| Non-interest-bearing liabilities | 45,704 | 38,964 | ||||||||||||||||||||||||||
| Total liabilities | 3,649,349 | 3,398,553 | ||||||||||||||||||||||||||
| Total stockholders’ equity | 385,098 | 329,617 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,034,447 | $ | 3,728,170 | ||||||||||||||||||||||||
| Net interest income/spread | $ | 35,575 | 3.52 | % | $ | 35,185 | 3.81 | % | ||||||||||||||||||||
| Net interest margin | 3.70 | % | 4.00 | % | ||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 121.52 | % | 121.22 | % | ||||||||||||||||||||||||
| Total deposits | $ | 3,283,871 | $ | 6,071 | 0.74 | % | $ | 3,008,958 | $ | 5,735 | 0.77 | % | ||||||||||||||||
Total funding(1) | $ | 3,603,645 | $ | 8,059 | 0.90 | % | $ | 3,359,589 | $ | 7,591 | 0.92 | % | ||||||||||||||||
(1) | Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total fundings. | ||
Banc of California, Inc. | ||||||||||||||
| Capital Ratios | ||||||||||||||
| (Unaudited) | ||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
2015(1) | 2014 | 2014 | 2014 | 2014 | ||||||||||
| Capital Ratios: | ||||||||||||||
| Banc of California, Inc. | ||||||||||||||
| Total risk-based capital ratio: | 11.58 | % | 11.28 | % | 14.97 | % | 15.19 | % | 11.93 | % | ||||
| Tier 1 risk-based capital ratio: | 10.86 | % | 10.54 | % | 14.03 | % | 14.10 | % | 10.86 | % | ||||
Common equity tier 1 capital ratio(1) | 9.04 | % | N/A | N/A | N/A | N/A | ||||||||
| Tier 1 leverage ratio: | 8.02 | % | 8.57 | % | 9.28 | % | 9.89 | % | 7.59 | % | ||||
Banc of California, N.A. | ||||||||||||||
| Total risk-based capital ratio: | 13.61 | % | 12.04 | % | 15.75 | % | 14.88 | % | 14.52 | % | ||||
| Tier 1 risk-based capital ratio: | 12.89 | % | 11.29 | % | 14.80 | % | 13.79 | % | 13.45 | % | ||||
Common equity tier 1 capital ratio(1) | 12.89 | % | N/A | N/A | N/A | N/A | ||||||||
| Tier 1 leverage ratio: | 9.51 | % | 9.17 | % | 9.80 | % | 9.72 | % | 9.41 | % | ||||
(1) | From the first quarter of 2015, BASEL III common equity tier 1 capital ratio is required. | ||
Banc of California, Inc. | |
| Non-GAAP Measures | |
| (Dollars in thousands, except per share data) | |
| (Unaudited) | |
| Non-GAAP performance measure: | |
| Tangible common equity to tangible assets ratio and return on average tangible common equity are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures are used by management in the analysis of Banc of California, Inc.’s capital strength and performance of businesses. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders' equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Banc of California, Inc. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. | |
| The following tables reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated: | |
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Tangible common equity to tangible assets ratio | ||||||||||||||||||||||||||
| Total assets | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | $ | 4,386,331 | $ | 4,030,465 | ||||||||||||||||
| Less goodwill | (31,591 | ) | (31,591 | ) | (31,591 | ) | (32,150 | ) | (32,868 | ) | ||||||||||||||||
| Less other intangible assets | (23,708 | ) | (25,252 | ) | (10,829 | ) | (10,959 | ) | (11,213 | ) | ||||||||||||||||
| Tangible assets | $ | 6,042,056 | $ | 5,914,454 | $ | 4,495,406 | $ | 4,343,222 | $ | 3,986,384 | ||||||||||||||||
| Total stockholders' equity | $ | 514,160 | $ | 503,315 | $ | 446,711 | $ | 439,127 | $ | 325,157 | ||||||||||||||||
| Less preferred stock | (79,877 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | ||||||||||||||||
| Less goodwill | (31,591 | ) | (31,591 | ) | (31,591 | ) | (32,150 | ) | (32,868 | ) | ||||||||||||||||
| Less other intangible assets | (23,708 | ) | (25,252 | ) | (10,829 | ) | (10,959 | ) | (11,213 | ) | ||||||||||||||||
| Tangible common equity | $ | 378,984 | $ | 366,595 | $ | 324,414 | $ | 316,141 | $ | 201,199 | ||||||||||||||||
| Total stockholders' equity to total assets | 8.43 | % | 8.43 | % | 9.84 | % | 10.01 | % | 8.07 | % | ||||||||||||||||
| Tangible common equity to tangible assets | 6.27 | % | 6.20 | % | 7.22 | % | 7.28 | % | 5.05 | % | ||||||||||||||||
| Common stock outstanding | 35,063,199 | 34,190,740 | 28,023,701 | 27,032,464 | 19,666,469 | |||||||||||||||||||||
| Class B non-voting non-convertible common stock outstanding | 11 | 609,195 | 602,783 | 596,018 | 590,068 | |||||||||||||||||||||
| Total common stock outstanding | 35,063,210 | 34,799,935 | 28,626,484 | 27,628,482 | 20,256,537 | |||||||||||||||||||||
Minimum number of shares issuable under purchase contracts(1) | 2,984,367 | 3,215,538 | 4,198,425 | 5,101,326 | - | |||||||||||||||||||||
| Total common stock outstanding and shares issuable under purchase contracts | 38,047,577 | 38,015,473 | 32,824,909 | 32,729,808 | 20,256,537 | |||||||||||||||||||||
| (1) Purchase contracts relating to the tangible equity units | ||||||||||||||||||||||||||
| Tangible common equity per common stock | $ | 10.81 | $ | 10.53 | $ | 11.33 | $ | 11.44 | $ | 9.93 | ||||||||||||||||
| Book value per common stock | $ | 12.39 | $ | 12.17 | $ | 12.81 | $ | 13.00 | $ | 12.11 | ||||||||||||||||
| Tangible equity per common stock and shares issuable under purchase contracts | $ | 9.96 | $ | 9.64 | $ | 9.88 | $ | 9.66 | $ | 9.93 | ||||||||||||||||
| Book value per common stock and shares issuable under purchase contracts | $ | 11.41 | $ | 11.14 | $ | 11.18 | $ | 10.98 | $ | 12.11 | ||||||||||||||||
Banc of California, Inc. | ||||||||||||||||||||||||||
| Non-GAAP Measures, Continued | ||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||||||||
| Return on tangible common equity | ||||||||||||||||||||||||||
| Average total stockholders' equity | $ | 517,335 | $ | 487,578 | $ | 449,392 | $ | 385,098 | $ | 329,617 | ||||||||||||||||
| Less average preferred stock | (79,877 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | ||||||||||||||||
| Less average goodwill | (31,591 | ) | (33,129 | ) | (32,209 | ) | (33,020 | ) | (30,923 | ) | ||||||||||||||||
| Less average other intangible assets | (24,720 | ) | (13,611 | ) | (10,634 | ) | (10,871 | ) | (11,832 | ) | ||||||||||||||||
| Average tangible common equity | $ | 381,147 | $ | 360,961 | $ | 326,672 | $ | 261,330 | $ | 206,985 | ||||||||||||||||
| Net income | $ | 12,574 | $ | 10,110 | $ | 11,247 | $ | 8,099 | $ | 749 | ||||||||||||||||
| Less preferred stock dividends | (910 | ) | (910 | ) | (910 | ) | (910 | ) | (910 | ) | ||||||||||||||||
Add tax-effected amortization of intangible assets(1) | 1,004 | 849 | 579 | 614 | 610 | |||||||||||||||||||||
Add tax-effected impairment on intangible assets(1) | - | 31 | - | - | - | |||||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 12,668 | $ | 10,080 | $ | 10,916 | $ | 7,803 | $ | 449 | ||||||||||||||||
| (1) Utilized a 35% effective tax rate | ||||||||||||||||||||||||||
| Return on average equity | 9.86 | % | 8.23 | % | 9.93 | % | 8.44 | % | 0.92 | % | ||||||||||||||||
| Return on average tangible common equity | 13.48 | % | 11.08 | % | 13.26 | % | 11.98 | % | 0.88 | % | ||||||||||||||||
Contacts:
Banc of California, Inc.
Timothy
Sedabres, 855-361-2262
or
MEDIA INQUIRIES:
Vectis
Strategies
David Herbst, 213-973-4113 x101
