Banc of California, Inc. (NYSE: BANC) today reported net income of $14.5 million and net income available to common shareholders of $11.5 million, resulting in $0.29 per diluted common share for the quarter ended September 30, 2015.
Net income available to common shareholders for the nine months ended September 30, 2015 was $36.2 million, resulting in $0.93 per diluted common share, compared to $17.4 million, resulting in $0.63 per diluted common share for the nine months ended September 30, 2014.
Highlights for the third quarter, compared to the prior quarter, included:
- Record quarterly core deposit growth exceeding $500 million (net of branch sales and offsetting the reduction in brokered and treasury deposits)
- Record quarterly commercial banking segment loan originations of $729 million (excludes mortgage banking originations)
- Noninterest bearing deposits increased by $143 million, or 17%, quarter over quarter and now exceed $1 billion
- Noninterest expenses declined by $6.2 million quarter over quarter
- Continued strong and stable asset quality
“The third quarter was highlighted by strong core deposit growth and accelerating loan originations in our commercial banking segment,” said Steven Sugarman, Chairman and Chief Executive Officer. “We are especially pleased with the growth of noninterest bearing deposits during the quarter which reflect our team’s success growing and deepening client relationships.”
The Company’s consolidated assets totaled $7.3 billion at September 30, 2015, an increase of $0.8 billion compared to the prior quarter, and an increase of $2.7 billion compared to a year ago. Return on average assets for the third quarter was 0.9%, and return on average tangible common equity was 12% for the third quarter.
“The third quarter results mark the sixth straight quarter since the reorganization of our bank’s Board of Directors and management team in which the Company has exceeded consensus earnings estimates, and we are on pace to exceed analysts’ full year 2015 consensus earnings estimates,” Mr. Sugarman continued. “The Board and executive management team have set preliminary targets for 2016 that include earnings per share growth of 15%, return on average assets of 1% and return on tangible common equity of 15%. Additionally, in light of the benefits of scale we are beginning to see throughout the business, we are lowering our efficiency ratio target for 2016 by 5% to 65-70%.”
The Company will host a conference call to discuss its third quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, October 29, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 9759464. 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) provides comprehensive banking services to California’s diverse private businesses, entrepreneurs and homeowners. Banc of California operates over 100 offices in California and the West.
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) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | $ | 378,963 | $ | 458,990 | $ | 265,402 | $ | 231,199 | $ | 184,985 | ||||||||||
| Time deposits in financial institutions | 1,900 | 1,900 | 1,900 | 1,900 | 1,900 | |||||||||||||||
| Securities available for sale | 693,219 | 487,293 | 393,586 | 345,695 | 310,385 | |||||||||||||||
| Securities held to maturity | 529,532 | 53,414 | - | - | - | |||||||||||||||
| Loans held for sale | 596,565 | 746,651 | 1,240,942 | 1,187,090 | 1,127,339 | |||||||||||||||
| Loans and leases receivable | 4,730,077 | 4,473,095 | 3,933,715 | 3,949,122 | 2,712,068 | |||||||||||||||
| Allowance for loan and lease losses | (34,774 | ) | (34,787 | ) | (29,345 | ) | (29,480 | ) | (25,283 | ) | ||||||||||
| Federal Home Loan Bank and other bank stock | 40,643 | 34,187 | 39,844 | 42,241 | 35,432 | |||||||||||||||
| Servicing rights, net | 41,646 | 34,942 | 21,829 | 19,566 | 11,745 | |||||||||||||||
| Other real estate owned, net | 34 | 50 | 498 | 423 | 605 | |||||||||||||||
| Premises and equipment, net | 34,689 | 35,229 | 78,285 | 78,685 | 67,323 | |||||||||||||||
| Goodwill | 39,244 | 31,591 | 31,591 | 31,591 | 31,591 | |||||||||||||||
| Other intangible assets, net | 20,504 | 21,905 | 23,708 | 25,252 | 10,829 | |||||||||||||||
| Deferred income tax (1) | 13,388 | 12,081 | 14,157 | 16,373 | 8,663 | |||||||||||||||
| Income tax receivable | 2,649 | 3,091 | - | - | - | |||||||||||||||
| Bank-owned life insurance investment | 99,570 | 19,201 | 19,154 | 19,095 | 19,038 | |||||||||||||||
| Other assets (1) | 68,961 | 59,049 | 62,089 | 52,545 | 41,206 | |||||||||||||||
| Total assets | $ | 7,256,810 | $ | 6,437,882 | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,011,169 | $ | 867,930 | $ | 749,129 | $ | 662,295 | $ | 457,743 | ||||||||||
| Interest-bearing deposits | 4,410,821 | 4,184,260 | 4,112,863 | 4,009,536 | 3,173,967 | |||||||||||||||
| Deposits held for sale | - | 52,820 | - | - | - | |||||||||||||||
| Total deposits | 5,421,990 | 5,105,010 | 4,861,992 | 4,671,831 | 3,631,710 | |||||||||||||||
| Advances from Federal Home Loan Bank | 830,000 | 350,000 | 545,000 | 633,000 | 305,000 | |||||||||||||||
| Other borrowings | - | - | 15,000 | - | - | |||||||||||||||
| Notes payable, net | 262,779 | 264,077 | 92,668 | 93,569 | 95,549 | |||||||||||||||
| Reserve for loss on repurchased loans | 9,098 | 9,411 | 8,432 | 8,303 | 7,045 | |||||||||||||||
| Income taxes payable | 5,939 | - | 4,488 | 56 | 2,158 | |||||||||||||||
| Accrued expenses and other liabilities | 83,470 | 75,502 | 55,615 | 61,223 | 49,653 | |||||||||||||||
| Total liabilities | 6,613,276 | 5,804,000 | 5,583,195 | 5,467,982 | 4,091,115 | |||||||||||||||
| Commitments and contingent liabilities | ||||||||||||||||||||
| Preferred stock, Series A, non-cumulative perpetual | 31,934 | 31,934 | 31,934 | 31,934 | 31,934 | |||||||||||||||
| Preferred stock, Series B, non-cumulative perpetual | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||
| Preferred stock, Series C, 8.00% non-cumulative perpetual | 37,943 | 37,943 | 37,943 | 37,943 | 37,943 | |||||||||||||||
| Preferred stock, Series D, 7.375% non-cumulative perpetual | 110,873 | 110,873 | - | - | - | |||||||||||||||
| Common stock | 393 | 372 | 367 | 358 | 297 | |||||||||||||||
| Common stock, class B non-voting non-convertible | - | - | - | 6 | 6 | |||||||||||||||
| Additional paid-in capital | 427,599 | 425,784 | 424,636 | 422,910 | 371,738 | |||||||||||||||
| Retained earnings (1) | 52,277 | 45,494 | 36,880 | 29,589 | 24,692 | |||||||||||||||
| Treasury stock | (29,070 | ) | (29,070 | ) | (29,798 | ) | (29,798 | ) | (29,798 | ) | ||||||||||
| Accumulated other comprehensive income/(loss), net | 1,585 | 552 | 2,198 | 373 | (101 | ) | ||||||||||||||
| Total stockholders’ equity | 643,534 | 633,882 | 514,160 | 503,315 | 446,711 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 7,256,810 | $ | 6,437,882 | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | ||||||||||
| (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 | Nine Months Ended | ||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | |||||||||||||||||||
| Interest and dividend income | |||||||||||||||||||||||||
| Loans, including fees | $ | 60,454 | $ | 60,699 | $ | 58,155 | $ | 52,599 | $ | 44,555 | $ | 179,308 | $ | 128,162 | |||||||||||
| Securities | 5,054 | 2,119 | 1,927 | 1,781 | 1,460 | 9,100 | 3,377 | ||||||||||||||||||
| Dividends and other interest-earning assets | 1,007 | 2,026 | 698 | 700 | 634 | 3,731 | 1,520 | ||||||||||||||||||
| Total interest and dividend income | 66,515 | 64,844 | 60,780 | 55,080 | 46,649 | 192,139 | 133,059 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Deposits | 6,395 | 6,165 | 6,361 | 6,440 | 6,165 | 18,921 | 17,971 | ||||||||||||||||||
| Federal Home Loan Bank advances | 587 | 290 | 353 | 210 | 118 | 1,230 | 317 | ||||||||||||||||||
| Notes payable and other interest-bearing liabilities | 3,983 | 4,285 | 2,069 | 2,099 | 2,180 | 10,337 | 5,825 | ||||||||||||||||||
| Total interest expense | 10,965 | 10,740 | 8,783 | 8,749 | 8,463 | 30,488 | 24,113 | ||||||||||||||||||
| Net interest income | 55,550 | 54,104 | 51,997 | 46,331 | 38,186 | 161,651 | 108,946 | ||||||||||||||||||
| Provision for loan and lease losses | 735 | 5,474 | - | 4,159 | 2,780 | 6,209 | 6,817 | ||||||||||||||||||
| Net interest income after provision for loan and lease losses | 54,815 | 48,630 | 51,997 | 42,172 | 35,406 | 155,442 | 102,129 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||
| Customer service fees | 1,118 | 1,072 | 910 | 651 | 230 | 3,100 | 839 | ||||||||||||||||||
| Loan servicing income | (2,254 | ) | 2,007 | (442 | ) | 1,248 | 924 | (689 | ) | 2,951 | |||||||||||||||
| Net gain on sale of securities available for sale | 1,750 | - | (2 | ) | 661 | - | 1,748 | 522 | |||||||||||||||||
| Net gain on sale of loans | 9,737 | 7,838 | 4,472 | 3,927 | 10,260 | 22,047 | 15,901 | ||||||||||||||||||
| Mortgage banking income | 37,015 | 39,403 | 37,933 | 25,030 | 26,943 | 114,351 | 70,400 | ||||||||||||||||||
| Advisory service fees | 2,294 | 4,435 | 1,197 | 6,722 | 3,264 | 7,926 | 6,182 | ||||||||||||||||||
| Loan brokerage income | 660 | 661 | 1,141 | 2,314 | 2,033 | 2,462 | 6,360 | ||||||||||||||||||
| Gain on sale of building | - | 9,919 | - | - | - | 9,919 | - | ||||||||||||||||||
| All other income | 407 | 1,358 | 771 | 336 | 444 | 2,536 | 1,593 | ||||||||||||||||||
| Total noninterest income | 50,727 | 66,693 | 45,980 | 40,889 | 44,098 | 163,400 | 104,748 | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||
| Salaries and employee benefits | 53,215 | 56,120 | 49,771 | 47,974 | 41,094 | 159,106 | 114,905 | ||||||||||||||||||
| Occupancy and equipment | 10,109 | 10,325 | 9,771 | 9,512 | 7,969 | 30,205 | 23,931 | ||||||||||||||||||
| Professional fees | 5,261 | 6,689 | 3,435 | 7,096 | 4,758 | 15,385 | 12,151 | ||||||||||||||||||
| Data processing | 2,170 | 2,075 | 1,835 | 1,884 | 1,286 | 6,080 | 3,347 | ||||||||||||||||||
| Amortization of intangible assets | 1,401 | 1,545 | 1,544 | 1,306 | 890 | 4,490 | 2,773 | ||||||||||||||||||
| All other expenses (1) | 9,587 | 11,166 | 9,523 | 10,448 | 11,357 | 30,276 | 28,145 | ||||||||||||||||||
| Total noninterest expense | 81,743 | 87,920 | 75,879 | 78,220 | 67,354 | 245,542 | 185,252 | ||||||||||||||||||
| Income before income taxes | 23,799 | 27,403 | 22,098 | 4,841 | 12,150 | 73,300 | 21,625 | ||||||||||||||||||
| Income tax (benefit) expense (1) | 9,263 | 11,479 | 9,524 | (5,269 | ) | 903 | 30,266 | 1,530 | |||||||||||||||||
| Net income | 14,536 | 15,924 | 12,574 | 10,110 | 11,247 | 43,034 | 20,095 | ||||||||||||||||||
| Preferred stock dividends | 3,040 | 2,843 | 910 | 910 | 910 | 6,793 | 2,730 | ||||||||||||||||||
| Net income available to common stockholders | $ | 11,496 | $ | 13,081 | $ | 11,664 | $ | 9,200 | $ | 10,337 | $ | 36,241 | $ | 17,365 | |||||||||||
| Basic earnings per total common share | $ | 0.29 | $ | 0.33 | $ | 0.30 | $ | 0.25 | $ | 0.31 | $ | 0.95 | $ | 0.64 | |||||||||||
| Diluted earnings per total common share | $ | 0.29 | $ | 0.32 | $ | 0.29 | $ | 0.25 | $ | 0.31 | $ | 0.93 | $ | 0.63 | |||||||||||
| (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 | Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
| Average balances | ||||||||||||||||||||||||||||
| Total assets | $ | 6,681,590 | $ | 6,253,350 | $ | 5,931,426 | $ | 5,223,463 | $ | 4,391,523 | $ | 6,291,536 | $ | 4,053,810 | ||||||||||||||
| Total gross loans and leases | 5,271,293 | 5,254,729 | 5,139,399 | 4,534,428 | 3,829,204 | 5,222,290 | 3,559,505 | |||||||||||||||||||||
| Investment Securities | 828,326 | 402,366 | 354,475 | 310,454 | 257,067 | 530,124 | 196,446 | |||||||||||||||||||||
| Total interest earning assets | 6,449,862 | 5,967,200 | 5,713,766 | 5,033,973 | 4,228,555 | 6,046,305 | 3,887,559 | |||||||||||||||||||||
| Total interest-bearing deposits | 4,314,330 | 4,078,540 | 4,085,673 | 3,699,464 | 3,070,130 | 4,160,352 | 2,841,303 | |||||||||||||||||||||
| Total borrowings | 745,959 | 635,460 | 583,979 | 406,531 | 378,671 | 655,726 | 349,794 | |||||||||||||||||||||
| Total interest bearing liabilities | 5,060,289 | 4,714,000 | 4,669,652 | 4,105,995 | 3,448,801 | 4,816,078 | 3,191,097 | |||||||||||||||||||||
| Total stockholders’ equity | 645,713 | 630,547 | 517,335 | 487,578 | 449,392 | 598,335 | 388,474 | |||||||||||||||||||||
| Profitability and other ratios | ||||||||||||||||||||||||||||
Return on average assets (1) | 0.86 | % | 1.02 | % | 0.86 | % | 0.77 | % | 1.02 | % | 0.91 | % | 0.66 | % | ||||||||||||||
| Return on average equity (1) | 8.93 | % | 10.13 | % | 9.86 | % | 8.23 | % | 9.93 | % | 9.62 | % | 6.92 | % | ||||||||||||||
| Dividend payout ratio (2) | 41.38 | % | 36.36 | % | 40.00 | % | 48.00 | % | 38.71 | % | 37.89 | % | 56.25 | % | ||||||||||||||
| Net interest spread | 3.23 | % | 3.45 | % | 3.55 | % | 3.49 | % | 3.41 | % | 3.40 | % | 3.57 | % | ||||||||||||||
Net interest margin (1) | 3.42 | % | 3.64 | % | 3.69 | % | 3.65 | % | 3.58 | % | 3.57 | % | 3.75 | % | ||||||||||||||
| Noninterest income to total revenue (3) | 47.73 | % | 55.21 | % | 46.93 | % | 46.88 | % | 53.59 | % | 50.27 | % | 49.02 | % | ||||||||||||||
Noninterest income to average total assets (1) | 3.01 | % | 4.28 | % | 3.14 | % | 3.11 | % | 3.98 | % | 3.47 | % | 3.45 | % | ||||||||||||||
Noninterest expense to average total assets (1) | 4.85 | % | 5.64 | % | 5.19 | % | 5.94 | % | 6.08 | % | 5.22 | % | 6.11 | % | ||||||||||||||
Efficiency ratio (4) | 76.92 | % | 72.78 | % | 77.45 | % | 89.68 | % | 81.86 | % | 75.54 | % | 86.69 | % | ||||||||||||||
Average held for investment loans and leases to average deposits | 86.03 | % | 79.87 | % | 81.72 | % | 79.08 | % | 75.39 | % | 82.63 | % | 76.60 | % | ||||||||||||||
Average investment securities to average total assets | 12.40 | % | 6.43 | % | 5.98 | % | 5.94 | % | 5.85 | % | 8.43 | % | 4.85 | % | ||||||||||||||
Average stockholders’ equity to average total assets | 9.66 | % | 10.08 | % | 8.72 | % | 9.33 | % | 10.23 | % | 9.51 | % | 9.58 | % | ||||||||||||||
| Allowance for loan and lease losses (ALLL) | ||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 34,787 | $ | 29,345 | $ | 29,480 | $ | 25,283 | $ | 22,627 | $ | 29,480 | $ | 18,805 | ||||||||||||||
| Loans and leases charged off | (788 | ) | (79 | ) | (357 | ) | (25 | ) | (312 | ) | (1,224 | ) | (898 | ) | ||||||||||||||
| Recoveries | 40 | 47 | 222 | 63 | 96 | 309 | 1,172 | |||||||||||||||||||||
| Transfer of loans from (to) held-for-sale | - | - | - | - | 92 | - | (613 | ) | ||||||||||||||||||||
| Provision for loan and lease losses | 735 | 5,474 | - | 4,159 | 2,780 | 6,209 | 6,817 | |||||||||||||||||||||
| Balance at end of period | $ | 34,774 | $ | 34,787 | $ | 29,345 | $ | 29,480 | $ | 25,283 | $ | 34,774 | $ | 25,283 | ||||||||||||||
Annualized net loan charge-offs to average total gross loans held for investment | 0.07 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.03 | % | 0.03 | % | -0.01 | % | ||||||||||||||
| Reserve for loss on repurchased loans | ||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 9,411 | $ | 8,432 | $ | 8,303 | $ | 7,045 | $ | 6,174 | $ | 8,303 | $ | 5,427 | ||||||||||||||
| Provision for loan repurchases | 716 | 1,573 | 1,328 | 1,149 | 1,556 | 3,617 | 3,094 | |||||||||||||||||||||
| Payment for loss reimbursement on sold loans | (1,029 | ) | (594 | ) | (1,199 | ) | 109 | (685 | ) | (2,822 | ) | (1,476 | ) | |||||||||||||||
| Balance at end of period | $ | 9,098 | $ | 9,411 | $ | 8,432 | $ | 8,303 | $ | 7,045 | $ | 9,098 | $ | 7,045 | ||||||||||||||
| (1) Ratios are presented on an annualized basis. | ||||||||||||||||||||||||||||
| (2) Dividends declared per common share divided by basic earnings per share. | ||||||||||||||||||||||||||||
| (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) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
| Asset quality information and ratios | ||||||||||||||||||||
| 30 to 89 days delinquent, excluding PCI loans | $ | 48,550 | $ | 46,820 | $ | 40,641 | $ | 40,694 | $ | 35,531 | ||||||||||
| 90+ days delinquent, excluding PCI loans | 23,725 | 22,855 | 20,538 | 16,835 | 15,672 | |||||||||||||||
| Total delinquent loans, excluding PCI loans | 72,275 | 69,675 | 61,179 | 57,529 | 51,203 | |||||||||||||||
| PCI loans, 30 to 89 days delinquent | 17,593 | 17,351 | 16,375 | 17,641 | 18,743 | |||||||||||||||
| PCI loans, 90+ days delinquent | 6,223 | 8,648 | 6,986 | 5,761 | 4,017 | |||||||||||||||
| Total delinquent PCI loans | 23,816 | 25,999 | 23,361 | 23,402 | 22,760 | |||||||||||||||
| Total delinquent loans | $ | 96,091 | $ | 95,674 | $ | 84,540 | $ | 80,931 | $ | 73,963 | ||||||||||
Total delinquent non-PCI loans to total non-PCI loans | 1.66 | % | 1.66 | % | 1.66 | % | 1.55 | % | 2.08 | % | ||||||||||
| Total delinquent loans to gross loans | 2.03 | % | 2.14 | % | 2.15 | % | 2.05 | % | 2.73 | % | ||||||||||
| Non-performing loans, excluding PCI loans | $ | 45,188 | $ | 42,708 | $ | 42,754 | $ | 38,381 | $ | 38,333 | ||||||||||
90+ days delinquent and still accruing loans, excluding PCI loans | - | - | - | - | - | |||||||||||||||
| Other real estate owned | 34 | 50 | 498 | 423 | 605 | |||||||||||||||
| Non-performing assets | $ | 45,222 | $ | 42,758 | $ | 43,252 | $ | 38,804 | $ | 38,938 | ||||||||||
| ALLL to non-performing loans | 76.95 | % | 81.45 | % | 68.64 | % | 76.81 | % | 65.96 | % | ||||||||||
| Non-performing loans to gross loans | 0.96 | % | 0.95 | % | 1.09 | % | 0.97 | % | 1.41 | % | ||||||||||
| Non-performing assets to total assets | 0.62 | % | 0.66 | % | 0.71 | % | 0.65 | % | 0.86 | % | ||||||||||
Troubled Debt Restructurings (TDRs) | ||||||||||||||||||||
| Performing TDRs | $ | 9,378 | $ | 7,402 | $ | 7,431 | $ | 6,346 | $ | 5,071 | ||||||||||
| Non-performing TDRs | 2,017 | 1,937 | 1,964 | 1,665 | 2,860 | |||||||||||||||
| Total TDRs | $ | 11,395 | $ | 9,339 | $ | 9,395 | $ | 8,011 | $ | 7,931 | ||||||||||
| Banc of California, Inc. | ||||||||||||||||||||
| Selected Financial Data, Continued | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
| Loan and lease breakdown by ALLL evaluation type | ||||||||||||||||||||
| Originated loans and leases | ||||||||||||||||||||
| Individually evaluated for impairment | $ | 31,008 | $ | 31,791 | $ | 29,301 | $ | 29,287 | $ | 29,030 | ||||||||||
| Collectively evaluated for impairment | 2,776,601 | 2,489,347 | 1,947,212 | 1,892,240 | 1,668,004 | |||||||||||||||
Acquired loans through business acquisitions - non-impaired | ||||||||||||||||||||
| Individually evaluated for impairment | 1,704 | 8 | 2,818 | 4,191 | 8,004 | |||||||||||||||
| Collectively evaluated for impairment | 1,174,573 | 1,294,384 | 1,358,184 | 1,411,927 | 377,554 | |||||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | 373,634 | 391,193 | 354,402 | 364,580 | 376,575 | |||||||||||||||
| Acquired with deteriorated credit quality | 372,557 | 266,372 | 241,798 | 246,897 | 252,901 | |||||||||||||||
| Total loans | $ | 4,730,077 | $ | 4,473,095 | $ | 3,933,715 | $ | 3,949,122 | $ | 2,712,068 | ||||||||||
| ALLL breakdown | ||||||||||||||||||||
| Originated loans and leases | ||||||||||||||||||||
| Individually evaluated for impairment | $ | 512 | $ | 686 | $ | 1,199 | $ | 1,288 | $ | 517 | ||||||||||
| Collectively evaluated for impairment | 31,419 | 31,440 | 25,474 | 25,263 | 22,011 | |||||||||||||||
Acquired loans through business acquisitions - non-impaired | ||||||||||||||||||||
| Individually evaluated for impairment | - | - | - | - | 7 | |||||||||||||||
| Collectively evaluated for impairment | 2,637 | 2,455 | 2,466 | 2,906 | 2,748 | |||||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | - | - | - | - | - | |||||||||||||||
| Acquired with deteriorated credit quality | 206 | 206 | 206 | 23 | - | |||||||||||||||
| Total ALLL | $ | 34,774 | $ | 34,787 | $ | 29,345 | $ | 29,480 | $ | 25,283 | ||||||||||
| Discount on Purchased/Acquired Loans | ||||||||||||||||||||
Acquired loans through business acquisitions - non-impaired | $ | 21,759 | $ | 15,245 | $ | 16,877 | $ | 17,866 | $ | 6,512 | ||||||||||
| Seasoned SFR mortgage loan pools - non-impaired | 27,699 | 29,201 | 28,967 | 29,955 | 30,811 | |||||||||||||||
| Acquired with deteriorated credit quality | 41,280 | 52,394 | 53,381 | 55,865 | 57,961 | |||||||||||||||
| Total Discount | $ | 90,738 | $ | 96,840 | $ | 99,225 | $ | 103,686 | $ | 95,284 | ||||||||||
| Ratios | ||||||||||||||||||||
| To originated loans: | ||||||||||||||||||||
| Individually evaluated for impairment | 1.65 | % | 2.16 | % | 4.09 | % | 4.40 | % | 1.78 | % | ||||||||||
| Collectively evaluated for impairment (1) | 1.13 | % | 1.26 | % | 1.31 | % | 1.34 | % | 1.32 | % | ||||||||||
| Total ALLL | 1.14 | % | 1.27 | % | 1.35 | % | 1.38 | % | 1.33 | % | ||||||||||
| To originated and acquired non-impaired loans: | ||||||||||||||||||||
| Individually evaluated for impairment | 1.57 | % | 2.16 | % | 3.73 | % | 3.85 | % | 1.41 | % | ||||||||||
| Collectively evaluated for impairment | 0.86 | % | 0.90 | % | 0.85 | % | 0.85 | % | 1.21 | % | ||||||||||
| Total ALLL | 0.87 | % | 0.91 | % | 0.87 | % | 0.88 | % | 1.21 | % | ||||||||||
| Total ALLL and discount (2) | 1.41 | % | 1.31 | % | 1.38 | % | 1.42 | % | 1.53 | % | ||||||||||
| To total loans: | ||||||||||||||||||||
| Individually evaluated for impairment | 1.57 | % | 2.16 | % | 3.73 | % | 3.85 | % | 1.41 | % | ||||||||||
| Collectively evaluated for impairment | 0.79 | % | 0.81 | % | 0.76 | % | 0.77 | % | 1.02 | % | ||||||||||
| Total ALLL | 0.74 | % | 0.78 | % | 0.75 | % | 0.75 | % | 0.93 | % | ||||||||||
| Total ALLL and discount (2) | 2.65 | % | 2.94 | % | 3.27 | % | 3.37 | % | 4.45 | % | ||||||||||
(1) For the three months ended June 30, 2015 and March 31, 2015, the ratios included an unallocated allowance for loan and lease losses of $2.2 million and $364 thousand. Without the unallocated, the ratios are 1.17% and 1.29% for the three months ended June 30, 2015 and March 31, 2015, respectively. | ||||||||||||||||||||
| (2) 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) | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
| Composition of held for investment loans and leases | ||||||||||||||||||||
| Commercial real estate | $ | 690,862 | $ | 807,146 | $ | 975,734 | $ | 999,857 | $ | 521,867 | ||||||||||
| Multi-family | 823,415 | 696,768 | 940,053 | 955,683 | 367,364 | |||||||||||||||
| Construction | 39,475 | 32,022 | 38,081 | 42,198 | 25,997 | |||||||||||||||
| Commercial and industrial | 822,690 | 771,477 | 489,229 | 490,900 | 366,416 | |||||||||||||||
| SBA | 52,985 | 56,887 | 48,254 | 36,155 | 25,729 | |||||||||||||||
| Lease financing | 162,504 | 131,189 | 102,012 | 85,749 | 72,027 | |||||||||||||||
| Total commercial loans | 2,591,931 | 2,495,489 | 2,593,363 | 2,610,542 | 1,379,400 | |||||||||||||||
| Single family residential mortgage | 2,013,450 | 1,840,924 | 1,169,134 | 1,171,662 | 1,191,021 | |||||||||||||||
| Other consumer | 124,696 | 136,682 | 171,218 | 166,918 | 141,647 | |||||||||||||||
| Total consumer loans | 2,138,146 | 1,977,606 | 1,340,352 | 1,338,580 | 1,332,668 | |||||||||||||||
| Total gross loans and leases | $ | 4,730,077 | $ | 4,473,095 | $ | 3,933,715 | $ | 3,949,122 | $ | 2,712,068 | ||||||||||
| Composition percentage of held for investment loans and leases | ||||||||||||||||||||
| Commercial real estate | 14.6 | % | 18.0 | % | 24.8 | % | 25.3 | % | 19.2 | % | ||||||||||
| Multi-family | 17.4 | % | 15.6 | % | 23.9 | % | 24.2 | % | 13.5 | % | ||||||||||
| Construction | 0.8 | % | 0.7 | % | 1.0 | % | 1.1 | % | 1.0 | % | ||||||||||
| Commercial and industrial | 17.4 | % | 17.2 | % | 12.4 | % | 12.4 | % | 13.5 | % | ||||||||||
| SBA | 1.1 | % | 1.3 | % | 1.2 | % | 0.9 | % | 0.9 | % | ||||||||||
| Lease financing | 3.4 | % | 2.9 | % | 2.6 | % | 2.2 | % | 2.7 | % | ||||||||||
| Total commercial loans | 54.7 | % | 55.7 | % | 65.9 | % | 66.1 | % | 50.8 | % | ||||||||||
| Single family residential mortgage | 42.7 | % | 41.2 | % | 29.7 | % | 29.7 | % | 44.0 | % | ||||||||||
| Other consumer | 2.6 | % | 3.1 | % | 4.4 | % | 4.2 | % | 5.2 | % | ||||||||||
| Total consumer loans | 45.3 | % | 44.3 | % | 34.1 | % | 33.9 | % | 49.2 | % | ||||||||||
| Total gross loans and leases | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Composition of deposits | ||||||||||||||||||||
| Noninterest-bearing checking | $ | 1,011,169 | $ | 880,766 | $ | 749,129 | $ | 662,295 | $ | 457,743 | ||||||||||
| Interest-bearing checking | 1,458,208 | 1,002,443 | 1,032,482 | 1,054,828 | 779,704 | |||||||||||||||
| Money market | 1,238,180 | 1,393,751 | 1,136,562 | 1,074,432 | 769,291 | |||||||||||||||
| Savings | 814,230 | 843,274 | 898,483 | 985,646 | 932,133 | |||||||||||||||
| Certificates of deposit | 900,203 | 984,776 | 1,045,336 | 894,630 | 692,839 | |||||||||||||||
| Total deposits | $ | 5,421,990 | $ | 5,105,010 | $ | 4,861,992 | $ | 4,671,831 | $ | 3,631,710 | ||||||||||
| Composition percentage of deposits | ||||||||||||||||||||
| Noninterest-bearing checking | 18.6 | % | 17.3 | % | 15.4 | % | 14.2 | % | 12.6 | % | ||||||||||
| Interest-bearing checking | 26.9 | % | 19.6 | % | 21.2 | % | 22.6 | % | 21.5 | % | ||||||||||
| Money market | 22.8 | % | 27.3 | % | 23.4 | % | 23.0 | % | 21.2 | % | ||||||||||
| Savings | 15.0 | % | 16.5 | % | 18.5 | % | 21.1 | % | 25.6 | % | ||||||||||
| Certificates of deposit | 16.7 | % | 19.3 | % | 21.5 | % | 19.1 | % | 19.1 | % | ||||||||||
| 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 | |||||||||||||||||||||||||||
| September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||||||||||||||||
| 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 | $ | 1,966,373 | $ | 18,123 | 3.66% | $ | 1,959,738 | $ | 18,984 | 3.89% | $ | 1,868,085 | $ | 17,477 | 3.79% | ||||||||||||
| Seasoned SFR mortgage loan pools | 689,666 | 10,901 | 6.27% | 591,460 | 9,690 | 6.57% | 591,724 | 9,413 | 6.45% | ||||||||||||||||||
| Commercial real estate, multi-family, and construction | 1,568,975 | 17,643 | 4.46% | 1,848,780 | 21,552 | 4.68% | 1,956,830 | 22,508 | 4.66% | ||||||||||||||||||
| Commercial and industrial, SBA, and lease financing | 914,811 | 12,125 | 5.26% | 697,291 | 8,871 | 5.10% | 572,726 | 7,239 | 5.13% | ||||||||||||||||||
| Other consumer | 131,468 | 1,662 | 5.02% | 157,460 | 1,602 | 4.08% | 150,034 | 1,518 | 4.10% | ||||||||||||||||||
| Gross loans and leases | 5,271,293 | 60,454 | 4.55% | 5,254,729 | 60,699 | 4.63% | 5,139,399 | 58,155 | 4.59% | ||||||||||||||||||
| Securities | 828,326 | 5,054 | 2.42% | 402,366 | 2,119 | 2.11% | 354,475 | 1,927 | 2.20% | ||||||||||||||||||
| Other interest-earning assets | 350,243 | 1,007 | 1.14% | 310,105 | 2,026 | 2.62% | 219,892 | 698 | 1.29% | ||||||||||||||||||
| Total interest-earning assets | 6,449,862 | 66,515 | 4.09% | 5,967,200 | 64,844 | 4.36% | 5,713,766 | 60,780 | 4.31% | ||||||||||||||||||
| Allowance for loan and lease losses | (34,810 | ) | (29,445 | ) | (29,623 | ) | |||||||||||||||||||||
| BOLI and non-interest earning assets | 266,538 | 315,595 | 247,283 | ||||||||||||||||||||||||
| Total assets | $ | 6,681,590 | $ | 6,253,350 | $ | 5,931,426 | |||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||
| Savings | $ | 832,006 | $ | 1,575 | 0.75% | $ | 867,532 | $ | 1,606 | 0.74% | $ | 945,530 | $ | 1,748 | 0.75% | ||||||||||||
| Interest-bearing checking | 1,282,066 | 2,273 | 0.70% | 1,012,211 | 1,996 | 0.79% | 1,042,895 | 2,041 | 0.79% | ||||||||||||||||||
| Money market | 1,294,554 | 1,337 | 0.41% | 1,142,858 | 1,028 | 0.36% | 1,092,987 | 958 | 0.36% | ||||||||||||||||||
| Certificates of deposit | 905,704 | 1,210 | 0.53% | 1,055,939 | 1,535 | 0.58% | 1,004,261 | 1,614 | 0.65% | ||||||||||||||||||
| Total interest-bearing deposits | 4,314,330 | 6,395 | 0.59% | 4,078,540 | 6,165 | 0.61% | 4,085,673 | 6,361 | 0.63% | ||||||||||||||||||
| FHLB advances | 476,848 | 587 | 0.49% | 375,385 | 290 | 0.31% | 487,600 | 353 | 0.29% | ||||||||||||||||||
| Long-term debt and other interest-bearing liabilities | 269,111 | 3,983 | 5.87% | 260,075 | 4,285 | 6.61% | 96,379 | 2,069 | 8.71% | ||||||||||||||||||
| Total interest-bearing liabilities | 5,060,289 | 10,965 | 0.86% | 4,714,000 | 10,740 | 0.91% | 4,669,652 | 8,783 | 0.76% | ||||||||||||||||||
| Noninterest-bearing deposits | 916,670 | 859,420 | 682,492 | ||||||||||||||||||||||||
| Non-interest-bearing liabilities | 58,918 | 49,383 | 61,947 | ||||||||||||||||||||||||
| Total liabilities | 6,035,877 | 5,622,803 | 5,414,091 | ||||||||||||||||||||||||
| Total stockholders’ equity | 645,713 | 630,547 | 517,335 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,681,590 | $ | 6,253,350 | $ | 5,931,426 | |||||||||||||||||||||
| Net interest income/spread | $ | 55,550 | 3.23% | $ | 54,104 | 3.45% | $ | 51,997 | 3.55% | ||||||||||||||||||
| Net interest margin | 3.42% | 3.64% | 3.69% | ||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 127.46 | % | 126.58 | % | 122.36 | % | |||||||||||||||||||||
| Total deposits | $ | 5,231,000 | $ | 6,395 | 0.49% | $ | 4,937,960 | $ | 6,165 | 0.50% | $ | 4,768,165 | $ | 6,361 | 0.54% | ||||||||||||
| Total funding (1) | $ | 5,976,959 | $ | 10,965 | 0.73% | $ | 5,573,420 | $ | 10,740 | 0.77% | $ | 5,352,144 | $ | 8,783 | 0.67% | ||||||||||||
(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 funding. | |||||||||||||||||||||||||||
| Banc of California, Inc. | ||||||||||||||||||
| Average Balance, Average Yield Earned, and Average Cost Paid, Continued | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| December 31, 2014 | September 30, 2014 | |||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||
| Balance | Interest | / Cost | Balance | Interest | / Cost | |||||||||||||
| Interest earning assets | ||||||||||||||||||
| Loans held for sale and SFR mortgage | $ | 1,778,112 | $ | 16,741 | 3.74% | $ | 1,757,890 | $ | 16,979 | 3.83% | ||||||||
| Seasoned SFR mortgage loan pools | 606,879 | 9,605 | 6.28% | 675,083 | 11,753 | 6.91% | ||||||||||||
| Commercial real estate, multi-family, and construction | 1,486,406 | 17,993 | 4.80% | 827,934 | 9,592 | 4.60% | ||||||||||||
| Commercial and industrial, SBA, and lease financing | 523,194 | 6,192 | 4.70% | 451,992 | 5,060 | 4.44% | ||||||||||||
| Other consumer | 139,837 | 2,068 | 5.87% | 116,305 | 1,171 | 3.99% | ||||||||||||
| Gross loans and leases | 4,534,428 | 52,599 | 4.60% | 3,829,204 | 44,555 | 4.62% | ||||||||||||
| Securities | 310,454 | 1,781 | 2.28% | 257,067 | 1,460 | 2.25% | ||||||||||||
| Other interest-earning assets | 189,091 | 700 | 1.47% | 142,284 | 634 | 1.77% | ||||||||||||
| Total interest-earning assets | 5,033,973 | 55,080 | 4.34% | 4,228,555 | 46,649 | 4.38% | ||||||||||||
| Allowance for loan and lease losses | (26,105 | ) | (23,266 | ) | ||||||||||||||
| BOLI and non-interest earning assets | 215,595 | 186,234 | ||||||||||||||||
| Total assets | $ | 5,223,463 | $ | 4,391,523 | ||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings | $ | 960,253 | $ | 1,963 | 0.81% | $ | 953,925 | $ | 2,215 | 0.92% | ||||||||
| Interest-bearing checking | 937,623 | 2,078 | 0.88% | 745,635 | 2,037 | 1.08% | ||||||||||||
| Money market | 964,414 | 841 | 0.35% | 681,576 | 673 | 0.39% | ||||||||||||
| Certificates of deposit | 837,174 | 1,558 | 0.74% | 688,994 | 1,240 | 0.71% | ||||||||||||
| Total interest-bearing deposits | 3,699,464 | 6,440 | 0.69% | 3,070,130 | 6,165 | 0.80% | ||||||||||||
| FHLB advances | 307,859 | 210 | 0.27% | 276,739 | 118 | 0.17% | ||||||||||||
| Long-term debt and other interest-bearing liabilities | 98,672 | 2,099 | 8.44% | 101,932 | 2,180 | 8.48% | ||||||||||||
| Total interest-bearing liabilities | 4,105,995 | 8,749 | 0.85% | 3,448,801 | 8,463 | 0.97% | ||||||||||||
| Noninterest-bearing deposits | 577,623 | 448,825 | ||||||||||||||||
| Non-interest-bearing liabilities | 52,267 | 44,505 | ||||||||||||||||
| Total liabilities | 4,735,885 | 3,942,131 | ||||||||||||||||
| Total stockholders’ equity | 487,578 | 449,392 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,223,463 | $ | 4,391,523 | ||||||||||||||
| Net interest income/spread | $ | 46,331 | 3.49% | $ | 38,186 | 3.41% | ||||||||||||
| Net interest margin | 3.65% | 3.58% | ||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 122.60 | % | 122.61 | % | ||||||||||||||
| Total deposits | $ | 4,277,087 | $ | 6,440 | 0.60% | $ | 3,518,955 | $ | 6,165 | 0.70% | ||||||||
| Total funding (1) | $ | 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 funding. | ||||||||||||||||||
| Banc of California, Inc. | ||||||||||||||||||
| Average Balance, Average Yield Earned, and Average Cost Paid, Continued | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||
| September 30, 2015 | September 30, 2014 | |||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||
| Balance | Interest | / Cost | Balance | Interest | / Cost | |||||||||||||
| Interest earning assets | ||||||||||||||||||
| Loans held for sale and SFR mortgage | $ | 1,931,759 | $ | 54,584 | 3.78% | $ | 1,583,494 | $ | 45,527 | 3.84% | ||||||||
| Seasoned SFR mortgage loan pools | 624,642 | 30,004 | 6.42% | 708,814 | 36,548 | 6.89% | ||||||||||||
| Commercial real estate, multi-family, and construction | 1,790,108 | 61,703 | 4.61% | 749,350 | 26,501 | 4.73% | ||||||||||||
| Commercial and industrial, SBA, and lease financing | 729,529 | 28,234 | 5.17% | 409,624 | 16,367 | 5.34% | ||||||||||||
| Other consumer | 146,252 | 4,783 | 4.37% | 108,223 | 3,219 | 3.98% | ||||||||||||
| Gross loans and leases | 5,222,290 | 179,308 | 4.59% | 3,559,505 | 128,162 | 4.81% | ||||||||||||
| Securities | 530,124 | 9,100 | 2.30% | 196,446 | 3,377 | 2.30% | ||||||||||||
| Other interest-earning assets | 293,891 | 3,731 | 1.70% | 131,608 | 1,520 | 1.54% | ||||||||||||
| Total interest-earning assets | 6,046,305 | 192,139 | 4.25% | 3,887,559 | 133,059 | 4.58% | ||||||||||||
| Allowance for loan and lease losses | (31,312 | ) | (21,089 | ) | ||||||||||||||
| BOLI and non-interest earning assets | 276,543 | 187,340 | ||||||||||||||||
| Total assets | $ | 6,291,536 | $ | 4,053,810 | ||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||
| Savings | $ | 881,273 | $ | 4,929 | 0.75% | $ | 970,348 | $ | 7,156 | 0.99% | ||||||||
| Interest-bearing checking | 1,113,267 | 6,309 | 0.76% | 666,926 | 5,552 | 1.11% | ||||||||||||
| Money market | 1,177,538 | 3,324 | 0.38% | 600,818 | 1,948 | 0.43% | ||||||||||||
| Certificates of deposit | 988,274 | 4,359 | 0.59% | 603,211 | 3,315 | 0.73% | ||||||||||||
| Total interest-bearing deposits | 4,160,352 | 18,921 | 0.61% | 2,841,303 | 17,971 | 0.85% | ||||||||||||
| FHLB advances | 446,571 | 1,230 | 0.37% | 254,322 | 317 | 0.17% | ||||||||||||
| Long-term debt and other interest-bearing liabilities | 209,155 | 10,337 | 6.61% | 95,472 | 5,825 | 8.16% | ||||||||||||
| Total interest-bearing liabilities | 4,816,078 | 30,488 | 0.85% | 3,191,097 | 24,113 | 1.01% | ||||||||||||
| Noninterest-bearing deposits | 820,385 | 431,160 | ||||||||||||||||
| Non-interest-bearing liabilities | 56,738 | 43,079 | ||||||||||||||||
| Total liabilities | 5,693,201 | 3,665,336 | ||||||||||||||||
| Total stockholders’ equity | 598,335 | 388,474 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,291,536 | $ | 4,053,810 | ||||||||||||||
| Net interest income/spread | $ | 161,651 | 3.40% | $ | 108,946 | 3.57% | ||||||||||||
| Net interest margin | 3.57% | 3.75% | ||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 125.54 | % | 121.83 | % | ||||||||||||||
| Total deposits | $ | 4,980,737 | $ | 18,921 | 0.51% | $ | 3,272,463 | $ | 17,971 | 0.73% | ||||||||
| Total funding (1) | $ | 5,636,463 | $ | 30,488 | 0.72% | $ | 3,622,257 | $ | 24,113 | 0.89% | ||||||||
(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 funding. | ||||||||||||||||||
| Banc of California, Inc. | |||||||||||||||
| Capital Ratios | |||||||||||||||
| (Unaudited) | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
| 2015 | 2015 | 2015 (1) | 2014 | 2014 | |||||||||||
| Capital Ratios | |||||||||||||||
| Banc of California, Inc. | |||||||||||||||
| Total risk-based capital ratio: | 12.56 | % | 14.01 | % | 11.55 | % | 11.28 | % | 14.97 | % | |||||
| Tier 1 risk-based capital ratio: | 12.06 | % | 13.19 | % | 10.83 | % | 10.54 | % | 14.03 | % | |||||
| Common equity tier 1 capital ratio (1) | 8.19 | % | 8.96 | % | 9.01 | % | N/A | N/A | |||||||
| Tier 1 leverage ratio: | 8.97 | % | 9.55 | % | 7.99 | % | 8.57 | % | 9.28 | % | |||||
| Banc of California, NA | |||||||||||||||
| Total risk-based capital ratio: | 14.93 | % | 14.86 | % | 13.58 | % | 12.04 | % | 15.75 | % | |||||
| Tier 1 risk-based capital ratio: | 14.19 | % | 14.04 | % | 12.86 | % | 11.29 | % | 14.8 | % | |||||
| Common equity tier 1 capital ratio (1) | 14.19 | % | 14.04 | % | 12.86 | % | N/A | N/A | |||||||
| Tier 1 leverage ratio: | 10.53 | % | 10.26 | % | 9.49 | % | 9.17 | % | 9.8 | % | |||||
| (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: | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
| Tangible common equity to tangible assets ratio | ||||||||||||||||||||
| Total assets | $ | 7,256,810 | $ | 6,437,882 | $ | 6,097,355 | $ | 5,971,297 | $ | 4,537,826 | ||||||||||
| Less goodwill | (39,244 | ) | (31,591 | ) | (31,591 | ) | (31,591 | ) | (31,591 | ) | ||||||||||
| Less other intangible assets | (20,504 | ) | (21,905 | ) | (23,708 | ) | (25,252 | ) | (10,829 | ) | ||||||||||
| Tangible assets | $ | 7,197,062 | $ | 6,384,386 | $ | 6,042,056 | $ | 5,914,454 | $ | 4,495,406 | ||||||||||
| Total stockholders' equity | $ | 643,534 | $ | 633,882 | $ | 514,160 | $ | 503,315 | $ | 446,711 | ||||||||||
| Less preferred stock | (190,750 | ) | (190,750 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | ||||||||||
| Less goodwill | (39,244 | ) | (31,591 | ) | (31,591 | ) | (31,591 | ) | (31,591 | ) | ||||||||||
| Less other intangible assets | (20,504 | ) | (21,905 | ) | (23,708 | ) | (25,252 | ) | (10,829 | ) | ||||||||||
| Tangible common equity | $ | 393,036 | $ | 389,636 | $ | 378,984 | $ | 366,595 | $ | 324,414 | ||||||||||
| Total stockholders' equity to total assets | 8.87 | % | 9.85 | % | 8.43 | % | 8.43 | % | 9.84 | % | ||||||||||
| Tangible common equity to tangible assets | 5.46 | % | 6.10 | % | 6.27 | % | 6.20 | % | 7.22 | % | ||||||||||
| Common stock outstanding | 37,751,445 | 35,647,476 | 35,063,199 | 34,190,740 | 28,023,701 | |||||||||||||||
Class B non-voting non-convertible common stock outstanding | - | - | 11 | 609,195 | 602,783 | |||||||||||||||
| Total common stock outstanding | 37,751,445 | 35,647,476 | 35,063,210 | 34,799,935 | 28,626,484 | |||||||||||||||
Minimum number of shares issuable under purchase contracts (1) | 828,246 | 2,883,892 | 2,984,367 | 3,215,538 | 4,198,425 | |||||||||||||||
Total common stock outstanding and shares issuable under purchase contracts | 38,579,691 | 38,531,368 | 38,047,577 | 38,015,473 | 32,824,909 | |||||||||||||||
| (1) Purchase contracts relating to the tangible equity units | ||||||||||||||||||||
| Tangible common equity per common stock | $ | 10.41 | $ | 10.93 | $ | 10.81 | $ | 10.53 | $ | 11.33 | ||||||||||
| Book value per common stock | $ | 11.99 | $ | 12.43 | $ | 12.39 | $ | 12.17 | $ | 12.81 | ||||||||||
Tangible equity per common stock and shares issuable under purchase contracts | $ | 10.19 | $ | 10.11 | $ | 9.96 | $ | 9.64 | $ | 9.88 | ||||||||||
Book value per common stock and shares issuable under purchase contracts | $ | 11.74 | $ | 11.50 | $ | 11.41 | $ | 11.14 | $ | 11.18 | ||||||||||
| Banc of California, Inc. | ||||||||||||||||||||||||||||
| Non-GAAP Measures, Continued | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2014 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
| Return on tangible common equity | ||||||||||||||||||||||||||||
| Average total stockholders' equity | $ | 645,713 | $ | 630,547 | $ | 517,335 | $ | 487,578 | $ | 449,392 | $ | 598,335 | $ | 388,474 | ||||||||||||||
| Less average preferred stock | (190,750 | ) | (182,233 | ) | (79,877 | ) | (79,877 | ) | (79,877 | ) | (151,360 | ) | (79,877 | ) | ||||||||||||||
| Less average goodwill | (31,674 | ) | (31,591 | ) | (31,591 | ) | (33,129 | ) | (32,209 | ) | (31,619 | ) | (32,056 | ) | ||||||||||||||
| Less average other intangible assets | (21,320 | ) | (23,032 | ) | (24,720 | ) | (13,611 | ) | (10,634 | ) | (23,012 | ) | (11,108 | ) | ||||||||||||||
| Average tangible common equity | $ | 401,969 | $ | 393,691 | $ | 381,147 | $ | 360,961 | $ | 326,672 | $ | 392,344 | $ | 265,433 | ||||||||||||||
| Net income | $ | 14,536 | $ | 15,924 | $ | 12,574 | $ | 10,110 | $ | 11,247 | $ | 43,034 | $ | 20,095 | ||||||||||||||
| Less preferred stock dividends | (3,040 | ) | (2,843 | ) | (910 | ) | (910 | ) | (910 | ) | (6,793 | ) | (2,730 | ) | ||||||||||||||
| Add tax-effected amortization of intangible assets (1) | 911 | 1,004 | 1,004 | 849 | 579 | 2,919 | 1,802 | |||||||||||||||||||||
| Add tax-effected impairment on intangible assets (1) | - | 168 | - | 31 | - | 168 | - | |||||||||||||||||||||
| Net income available to common stockholders | $ | 12,407 | $ | 14,253 | $ | 12,668 | $ | 10,080 | $ | 10,916 | $ | 39,328 | $ | 19,167 | ||||||||||||||
| (1) Utilized a 35% effective tax rate | ||||||||||||||||||||||||||||
| Return on average equity | 8.93 | % | 10.13 | % | 9.86 | % | 8.23 | % | 9.93 | % | 9.62 | % | 6.92 | % | ||||||||||||||
| Return on average tangible common equity | 12.25 | % | 14.52 | % | 13.48 | % | 11.08 | % | 13.26 | % | 13.40 | % | 9.65 | % | ||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005522/en/
Contacts:
Banc of California, Inc.
Timothy
Sedabres, (855) 361-2262
or
MEDIA INQUIRIES:
Vectis
Strategies
David Herbst, (213) 973-4113 x101
