Banc of California Reports Record 2015 Earnings

- Full Year Pre-Tax Income over $100 Million

- Full Year Diluted EPS of $1.34

- Fourth Quarter Diluted EPS of $0.39

Jan 28, 2016, 06:05 ET from Banc of California, Inc.

IRVINE, Calif., Jan. 28, 2016 /PRNewswire/ -- Banc of California, Inc. (NYSE: BANC) today reported net income of $19.0 million for the fourth quarter of 2015, resulting in diluted earnings per share of $0.39 for the quarter and $1.34 for the full year.

Pre-tax income for the full year 2015 was $104.3 million, an increase of 294% compared to full year 2014.  Net income available to common shareholders for 2015 grew to $52.2 million, an increase of 97% compared to full year 2014.

Highlights for the fourth quarter included:

  • Record quarterly core deposit growth of $540 million; including $110 million from non-interest bearing deposits.
  • Record quarterly commercial banking segment loan and lease originations of $914 million; resulting in $2.8 billion for the full year.
  • Full year 2015 total loan originations of $7.1 billion.
  • Commercial Banking profits increased to 90% of total, fully allocated segment profitability with Financial Advisory finishing at 9% and Mortgage Banking falling to 1% for the quarter.
  • The Company's return on average assets for the quarter was 1.0%, and its return on average tangible common equity (ROTCE) for the quarter was 16.6%.

The Company's consolidated assets totaled $8.2 billion at December 31, 2015, an increase of $1.0 billion compared to the prior quarter, and an increase of $2.3 billion compared to a year ago.

"Banc of California finished 2015 with accelerating growth and profitability across our businesses," said Steven Sugarman, Chairman and Chief Executive Officer.  "Our return on tangible common equity over 15% and return on assets over 1% demonstrates the long-term earnings power of our franchise.  Combining these returns with our industry leading growth continues to yield significant value creation for shareholders.  Our strong results are a testament to the hard work and dedication of our talented employees, who as employee-shareholders take pride in the shared success in growing the long-term value of the franchise.  I am also particularly proud that Banc of California ranked #1 for total shareholder return in 2015 of all west coast banks included on Forbes Magazine's list of America's Top 100 banks."  

The Company will host a conference call to discuss its fourth quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, January 28, 2016. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 4988712. A live audio webcast will also be available and the webcast link will be posted on the Company's Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations 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.

INVESTOR RELATIONS INQUIRIES:

MEDIA INQUIRIES:

Banc of California, Inc.

Vectis Strategies

Timothy Sedabres, (855) 361-2262

David Herbst, (213) 973-4113 x101

 

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

ASSETS

Cash and cash equivalents

$      156,124

$        378,963

$    458,990

$    265,402

$      231,199

Time deposits in financial institutions

1,500

1,900

1,900

1,900

1,900

Securities available for sale

833,596

693,219

487,293

393,586

345,695

Securities held to maturity

962,203

529,532

53,414

-

-

Loans held for sale

668,841

596,565

746,651

1,240,942

1,187,090

Loans and leases receivable

5,184,394

4,730,077

4,473,095

3,933,715

3,949,122

Allowance for loan and lease losses

(35,533)

(34,774)

(34,787)

(29,345)

(29,480)

Federal Home Loan Bank and other bank stock

59,069

40,643

34,187

39,844

42,241

Servicing rights, net

50,727

41,646

34,942

21,829

19,566

Other real estate owned, net

1,097

34

50

498

423

Premises and equipment, net

111,539

34,689

35,229

78,285

78,685

Goodwill

39,244

39,244

31,591

31,591

31,591

Other intangible assets, net

19,158

20,504

21,905

23,708

25,252

Deferred income tax (1)

11,341

13,388

12,081

14,157

16,373

Income tax receivable

604

2,649

3,091

-

-

Bank-owned life insurance investment

100,171

99,570

19,201

19,154

19,095

Other assets (1)

71,480

68,961

59,049

62,089

52,545

Total assets 

$   8,235,555

$     7,256,810

$ 6,437,882

$ 6,097,355

$   5,971,297

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Noninterest-bearing deposits

$   1,121,124

$     1,011,169

$    867,930

$    749,129

$      662,295

Interest-bearing deposits

5,181,961

4,410,821

4,184,260

4,112,863

4,009,536

Deposits held for sale

-

-

52,820

-

-

Total deposits

6,303,085

5,421,990

5,105,010

4,861,992

4,671,831

Advances from Federal Home Loan Bank

930,000

830,000

350,000

545,000

633,000

Other borrowings

-

-

-

15,000

-

Notes payable, net

261,876

262,779

264,077

92,668

93,569

Reserve for loss on repurchased loans

9,700

9,098

9,411

8,432

8,303

Income taxes payable

1,241

5,939

-

4,488

56

Accrued expenses and other liabilities

77,248

83,470

75,502

55,615

61,223

Total liabilities

7,583,150

6,613,276

5,804,000

5,583,195

5,467,982

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

110,873

-

-

Common stock

395

393

372

367

358

Common stock, class B non-voting non-convertible

1

-

-

-

6

Additional paid-in capital

429,790

427,599

425,784

424,636

422,910

Retained earnings (1)

63,534

52,277

45,494

36,880

29,589

Treasury stock

(29,070)

(29,070)

(29,070)

(29,798)

(29,798)

Accumulated other comprehensive income/(loss), net

(2,995)

1,585

552

2,198

373

Total stockholders' equity

652,405

643,534

633,882

514,160

503,315

Total liabilities and stockholders' equity 

$   8,235,555

$     7,256,810

$ 6,437,882

$ 6,097,355

$   5,971,297

(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

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2015

2015

2015

2015

2014

2015

2014

Interest and dividend income

Loans, including fees

$        62,248

$          60,454

$      60,699

$      58,155

$        52,599

$      241,556

$      180,761

Securities

11,163

5,054

2,119

1,927

1,781

20,263

5,158

Dividends and other interest-earning assets

788

1,007

2,026

698

700

4,519

2,220

Total interest and dividend income

74,199

66,515

64,844

60,780

55,080

266,338

188,139

Interest expense

Deposits

6,862

6,395

6,165

6,361

6,440

25,783

24,411

Federal Home Loan Bank advances

890

587

290

353

210

2,120

527

Notes payable and other interest-bearing liabilities

4,381

3,983

4,285

2,069

2,099

14,718

7,924

Total interest expense

12,133

10,965

10,740

8,783

8,749

42,621

32,862

Net interest income

62,066

55,550

54,104

51,997

46,331

223,717

155,277

Provision for loan and lease losses

1,260

735

5,474

-

4,159

7,469

10,976

Net interest income after provision for loan and lease losses

60,806

54,815

48,630

51,997

42,172

216,248

144,301

Noninterest income

Customer service fees

957

1,118

1,072

910

651

4,057

1,490

Loan servicing income

3,663

(2,254)

2,007

(442)

1,248

2,974

4,199

Net gain on sale of securities available for sale

1,510

1,750

-

(2)

661

3,258

1,183

Net gain on sale of loans

15,164

9,737

7,838

4,472

3,927

37,211

19,828

Mortgage banking income

30,334

37,015

39,403

37,933

25,030

144,685

95,430

Advisory service fees

1,942

2,294

4,435

1,197

6,722

9,868

12,904

Loan brokerage income

678

660

661

1,141

2,314

3,140

8,674

Gain on sale of building

-

-

9,919

-

-

9,919

-

All other income

2,571

407

1,358

771

336

5,107

1,929

Total noninterest income

56,819

50,727

66,693

45,980

40,889

220,219

145,637

Noninterest expense

Salaries and employee benefits

54,008

53,215

56,120

49,771

47,974

213,114

162,879

Occupancy and equipment

11,200

10,109

10,325

9,771

9,512

41,405

33,443

Professional fees

4,808

5,261

6,689

3,435

7,096

20,193

19,247

Data processing

2,104

2,170

2,075

1,835

1,884

8,184

5,231

Amortization of intangible assets

1,346

1,401

1,545

1,544

1,306

5,836

4,079

All other expenses (1)

13,193

9,587

11,166

9,523

10,448

43,469

38,593

Total noninterest expense

86,659

81,743

87,920

75,879

78,220

332,201

263,472

Income before income taxes

30,966

23,799

27,403

22,098

4,841

104,266

26,466

Income tax (benefit) expense (1)

11,928

9,263

11,479

9,524

(5,269)

42,194

(3,739)

Net income

19,038

14,536

15,924

12,574

10,110

62,072

30,205

Preferred stock dividends

3,030

3,040

2,843

910

910

9,823

3,640

Net income available to common stockholders

$        16,008

$          11,496

$      13,081

$      11,664

$          9,200

$        52,249

$        26,565

Basic earnings per total common share

$            0.40

$              0.29

$          0.33

$          0.30

$            0.25

$            1.36

$            0.91

Diluted earnings per total common share

$            0.39

$              0.29

$          0.32

$          0.29

$            0.25

$            1.34

$            0.90

(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

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2015

2015

2015

2015

2014

2015

2014

Average balances

Total assets

$   7,590,781

$     6,681,590

$ 6,253,350

$ 5,931,426

$   5,223,463

$   6,619,017

$   4,348,626

Total gross loans and leases

5,531,539

5,271,293

5,254,729

5,139,399

4,534,428

5,300,237

3,805,239

Investment Securities

1,506,626

828,326

402,366

354,475

310,454

776,256

225,182

Total interest earning assets

7,264,341

6,449,862

5,967,200

5,713,766

5,033,973

6,353,316

4,176,518

Total interest-bearing deposits

4,685,145

4,314,330

4,078,540

4,085,673

3,699,464

4,292,629

3,057,606

Total borrowings

1,141,554

745,959

635,460

583,979

406,531

778,182

364,095

Total interest bearing liabilities

5,826,699

5,060,289

4,714,000

4,669,652

4,105,995

5,070,811

3,421,701

Total stockholders' equity

654,106

645,713

630,547

517,335

487,578

612,393

413,454

Profitability and other ratios

Return on average assets(1)

1.00%

0.86%

1.02%

0.86%

0.77%

0.94%

0.69%

Return on average equity (1)

11.55%

8.93%

10.13%

9.86%

8.23%

10.14%

7.31%

Return on average tangible common equity(2)

16.57%

12.25%

14.52%

13.48%

11.08%

14.22%

10.10%

Dividend payout ratio (3)

30.00%

41.38%

36.36%

40.00%

48.00%

35.29%

52.75%

Net interest spread

3.22%

3.23%

3.45%

3.55%

3.49%

3.35%

3.54%

Net interest margin(1)

3.39%

3.42%

3.64%

3.69%

3.65%

3.52%

3.72%

Noninterest income to total revenue (4)

47.79%

47.73%

55.21%

46.93%

46.88%

49.61%

48.40%

Noninterest income to average total assets(1)

2.97%

3.01%

4.28%

3.14%

3.11%

3.33%

3.35%

Noninterest expense to average total assets(1)

4.53%

4.85%

5.64%

5.19%

5.94%

5.02%

6.06%

Efficiency ratio(5)

72.89%

76.92%

72.78%

77.45%

89.68%

74.83%

87.56%

Average held for investment loans and leases to average deposits

86.88%

86.03%

79.87%

81.72%

79.08%

83.82%

77.36%

Average investment securities to average total assets

19.85%

12.40%

6.43%

5.98%

5.94%

11.73%

5.18%

Average stockholders' equity to average total assets

8.62%

9.66%

10.08%

8.72%

9.33%

9.25%

9.51%

Allowance for loan and lease losses (ALLL)

Balance at beginning of period

$        34,774

$          34,787

$      29,345

$      29,480

$        25,283

$        29,480

$        18,805

Loans and leases charged off

(718)

(788)

(79)

(357)

(25)

(1,942)

(923)

Recoveries

217

40

47

222

63

526

1,235

Transfer of loans from (to) held-for-sale

-

-

-

-

-

-

(613)

Provision for loan and lease losses

1,260

735

5,474

-

4,159

7,469

10,976

Balance at end of period

$        35,533

$          34,774

$      34,787

$      29,345

$        29,480

$        35,533

$        29,480

Annualized net loan charge-offs to average total gross loans held for investment

0.04%

0.07%

0.00%

0.01%

0.00%

0.03%

-0.01%

Reserve for loss on repurchased loans

Balance at beginning of period

$          9,098

$            9,411

$        8,432

$        8,303

$          7,045

$          8,303

$          5,427

Provision for loan repurchases

735

716

1,573

1,328

1,149

4,352

4,243

Change in estimates

846

-

-

-

-

846

-

Utilization of reserve for loan repurchases

(979)

(1,029)

(594)

(1,199)

109

(3,801)

(1,367)

Balance at end of period

$          9,700

$            9,098

$        9,411

$        8,432

$          8,303

$          9,700

$          8,303

(1)

Ratios are presented on an annualized basis.

(2)

Non-GAAP measure. See Non-GAAP measures section for reconciliation of the calculation.

(3)

Dividends declared per common share divided by basic earnings per share.

(4)

Total revenue is equal to the sum of net interest income before provision and noninterest income.

(5)

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)

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Asset quality information and ratios

30 to 89 days delinquent, excluding PCI loans

$        39,946

$          48,550

$      46,820

$      40,641

$        40,694

90+ days delinquent, excluding PCI loans

23,338

23,725

22,855

20,538

16,835

Total delinquent loans, excluding PCI loans

63,284

72,275

69,675

61,179

57,529

PCI loans, 30 to 89 days delinquent

40,291

17,593

17,351

16,375

17,641

PCI loans, 90+ days delinquent

6,894

6,223

8,648

6,986

5,761

Total delinquent PCI loans

47,185

23,816

25,999

23,361

23,402

Total delinquent loans

$      110,469

$          96,091

$      95,674

$      84,540

$        80,931

Total delinquent non-PCI loans to total non-PCI loans

1.42%

1.66%

1.66%

1.66%

1.55%

Total delinquent loans to gross loans

2.13%

2.03%

2.14%

2.15%

2.05%

Non-performing loans, excluding PCI loans

$        45,129

$          45,188

$      42,708

$      42,754

$        38,381

90+ days delinquent and still accruing loans, excluding PCI loans

-

-

-

-

-

Other real estate owned

1,097

34

50

498

423

Non-performing assets

$        46,226

$          45,222

$      42,758

$      43,252

$        38,804

ALLL to non-performing loans

78.74%

76.95%

81.45%

68.64%

76.81%

Non-performing loans to gross loans

0.87%

0.96%

0.95%

1.09%

0.97%

Non-performing assets to total assets

0.56%

0.62%

0.66%

0.71%

0.65%

Troubled Debt Restructings (TDRs)

Performing TDRs

$          7,842

$            9,378

$        7,402

$        7,431

$          6,346

Non-performing TDRs

1,970

2,017

1,937

1,964

1,665

Total TDRs

$          9,812

$          11,395

$        9,339

$        9,395

$          8,011

 

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Loan and lease breakdown by ALLL evaluation type

Originated loans and leases

Individually evaluated for impairment

$        30,654

$          31,008

$      31,791

$      29,301

$        29,287

Collectively evaluated for impairment

3,117,528

2,776,601

2,489,347

1,947,212

1,892,240

Acquired loans through business acquisitions - non-impaired

Individually evaluated for impairment

3,629

1,704

8

2,818

4,191

Collectively evaluated for impairment

1,124,874

1,174,573

1,294,384

1,358,184

1,411,927

Seasoned SFR mortgage loan pools - non-impaired

194,978

373,634

391,193

354,402

364,580

Acquired with deteriorated credit quality

712,731

372,557

266,372

241,798

246,897

Total loans

$   5,184,394

$     4,730,077

$ 4,473,095

$ 3,933,715

$   3,949,122

ALLL breakdown

Originated loans and leases

Individually evaluated for impairment

$             369

$               512

$           686

$        1,199

$          1,288

Collectively evaluated for impairment

32,713

31,419

31,440

25,474

25,263

Acquired loans through business acquisitions - non-impaired

Individually evaluated for impairment

-

-

-

-

-

Collectively evaluated for impairment

2,245

2,637

2,455

2,466

2,906

Seasoned SFR mortgage loan pools - non-impaired

-

-

-

-

-

Acquired with deteriorated credit quality

206

206

206

206

23

Total ALLL

$        35,533

$          34,774

$      34,787

$      29,345

$        29,480

Discount on Purchased/Acquired Loans

Acquired loans through business acquisitions - non-impaired

$        21,366

$          21,759

$      15,245

$      16,877

$        17,866

Seasoned SFR mortgage loan pools - non-impaired

12,545

27,699

29,201

28,967

29,955

Acquired with deteriorated credit quality

68,372

41,280

52,394

53,381

55,865

Total Discount

$      102,283

$          90,738

$      96,840

$      99,225

$      103,686

Ratios

To originated loans and leases:

Individually evaluated for impairment

1.20%

1.65%

2.16%

4.09%

4.40%

Collectively evaluated for impairment (1)

1.05%

1.13%

1.26%

1.31%

1.34%

Total ALLL

1.05%

1.14%

1.27%

1.35%

1.38%

To originated loans and leases and acquired loans not impaired at acquisition:

Individually evaluated for impairment

1.08%

1.57%

2.16%

3.73%

3.85%

Collectively evaluated for impairment

0.82%

0.86%

0.90%

0.85%

0.85%

Total ALLL

0.83%

0.87%

0.91%

0.87%

0.88%

Total ALLL and discount (2)

1.33%

1.41%

1.31%

1.38%

1.42%

To total loans and leases:

Individually evaluated for impairment

1.08%

1.57%

2.16%

3.73%

3.85%

Collectively evaluated for impairment

0.79%

0.79%

0.81%

0.76%

0.77%

Total ALLL

0.69%

0.74%

0.78%

0.75%

0.75%

Total ALLL and discount (2)

2.66%

2.65%

2.94%

3.27%

3.37%

(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)

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Composition of held for investment loans and leases

Commercial real estate

$      727,707

$        690,862

$    807,146

$    975,734

$      999,857

Multi-family

904,300

823,415

696,768

940,053

955,683

Construction

55,289

39,475

32,022

38,081

42,198

Commercial and industrial

876,999

822,690

771,477

489,229

490,900

SBA

57,706

52,985

56,887

48,254

36,155

Lease financing

192,424

162,504

131,189

102,012

85,749

Total commercial loans

2,814,425

2,591,931

2,495,489

2,593,363

2,610,542

Single family residential mortgage

2,255,584

2,013,450

1,840,924

1,169,134

1,171,662

Other consumer

114,385

124,696

136,682

171,218

166,918

Total consumer loans

2,369,969

2,138,146

1,977,606

1,340,352

1,338,580

Total gross loans and leases

$   5,184,394

$     4,730,077

$ 4,473,095

$ 3,933,715

$   3,949,122

Composition percentage of held for investment loans and leases

Commercial real estate

14.0%

14.6%

18.0%

24.8%

25.3%

Multi-family

17.4%

17.4%

15.6%

23.9%

24.2%

Construction

1.1%

0.8%

0.7%

1.0%

1.1%

Commercial and industrial

16.9%

17.4%

17.2%

12.4%

12.4%

SBA

1.1%

1.1%

1.3%

1.2%

0.9%

Lease financing

3.7%

3.4%

2.9%

2.6%

2.2%

Total commercial loans

54.2%

54.7%

55.7%

65.9%

66.1%

Single family residential mortgage

43.6%

42.7%

41.2%

29.7%

29.7%

Other consumer

2.2%

2.6%

3.1%

4.4%

4.2%

Total consumer loans

45.8%

45.3%

44.3%

34.1%

33.9%

Total gross loans and leases

100.0%

100.0%

100.0%

100.0%

100.0%

Composition of deposits

Noninterest-bearing checking

$   1,121,124

$     1,011,169

$    880,766

$    749,129

$      662,295

Interest-bearing checking

1,697,055

1,458,208

1,002,443

1,032,482

1,054,828

Money market

1,479,931

1,238,180

1,393,751

1,136,562

1,074,432

Savings

823,618

814,230

843,274

898,483

985,646

Certificates of deposit

1,181,357

900,203

984,776

1,045,336

894,630

Total deposits

$   6,303,085

$     5,421,990

$ 5,105,010

$ 4,861,992

$   4,671,831

Composition percentage of deposits

Noninterest-bearing checking

17.8%

18.6%

17.3%

15.4%

14.2%

Interest-bearing checking

26.8%

26.9%

19.6%

21.2%

22.6%

Money market

23.5%

22.8%

27.3%

23.4%

23.0%

Savings

13.1%

15.0%

16.5%

18.5%

21.1%

Certificates of deposit

18.8%

16.7%

19.3%

21.5%

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

December 31, 2015

September 30, 2015

June 30, 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

$ 1,903,331

$   17,584

3.67%

$ 1,966,373

$   18,123

3.66%

$ 1,959,738

$ 18,984

3.89%

Seasoned SFR mortgage loan pools

858,601

12,098

5.59%

689,666

10,901

6.27%

591,460

9,690

6.57%

Commercial real estate, multi-family, and construction

1,638,329

19,006

4.60%

1,568,975

17,643

4.46%

1,848,780

21,552

4.68%

Commercial and industrial, SBA, and lease financing

1,020,306

12,754

4.96%

914,811

12,125

5.26%

697,291

8,871

5.10%

Other consumer

110,972

806

2.88%

131,468

1,662

5.02%

157,460

1,602

4.08%

Gross loans and leases

5,531,539

62,248

4.46%

5,271,293

60,454

4.55%

5,254,729

60,699

4.63%

Securities

1,506,626

11,163

2.94%

828,326

5,054

2.42%

402,366

2,119

2.11%

Other interest-earning assets

226,176

788

1.38%

350,243

1,007

1.14%

310,105

2,026

2.62%

Total interest-earning assets

7,264,341

74,199

4.05%

6,449,862

66,515

4.09%

5,967,200

64,844

4.36%

Allowance for loan and lease losses

(35,894)

(34,810)

(29,445)

BOLI and non-interest earning assets

362,334

266,538

315,595

Total assets

$ 7,590,781

$ 6,681,590

$ 6,253,350

Interest-bearing liabilities

Savings

$    805,445

$     1,538

0.76%

$    832,006

$     1,575

0.75%

$    867,532

$   1,606

0.74%

Interest-bearing checking

1,475,461

2,663

0.72%

1,282,066

2,273

0.70%

1,012,211

1,996

0.79%

Money market

1,343,683

1,267

0.37%

1,294,554

1,337

0.41%

1,142,858

1,028

0.36%

Certificates of deposit

1,060,556

1,394

0.52%

905,704

1,210

0.53%

1,055,939

1,535

0.58%

Total interest-bearing deposits

4,685,145

6,862

0.58%

4,314,330

6,395

0.59%

4,078,540

6,165

0.61%

FHLB advances

869,457

890

0.41%

476,848

587

0.49%

375,385

290

0.31%

Long-term debt and other interest-bearing liabilities

272,097

4,381

6.39%

269,111

3,983

5.87%

260,075

4,285

6.61%

Total interest-bearing liabilities

5,826,699

12,133

0.83%

5,060,289

10,965

0.86%

4,714,000

10,740

0.91%

Noninterest-bearing deposits

1,037,966

916,670

859,420

Non-interest-bearing liabilities

72,010

58,918

49,383

Total liabilities

6,936,675

6,035,877

5,622,803

Total stockholders' equity

654,106

645,713

630,547

Total liabilities and stockholders' equity

$ 7,590,781

$ 6,681,590

$ 6,253,350

Net interest income/spread

$   62,066

3.22%

$   55,550

3.23%

$ 54,104

3.45%

Net interest margin

3.39%

3.42%

3.64%

Ratio of interest-earning assets to interest-bearing liabilities

124.67%

127.46%

126.58%

Total deposits

$ 5,723,111

$     6,862

0.48%

$ 5,231,000

$     6,395

0.49%

$ 4,937,960

$   6,165

0.50%

Total funding (1)

$ 6,864,665

$   12,133

0.70%

$ 5,976,959

$   10,965

0.73%

$ 5,573,420

$ 10,740

0.77%

(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

March 31, 2015

December 31, 2014

Average

Yield 

Average

Yield 

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%

Seasoned SFR mortgage loan pools

591,724

9,413

6.45%

606,879

9,605

6.28%

Commercial real estate, multi-family, and construction

1,956,830

22,508

4.66%

1,486,406

17,993

4.80%

Commercial and industrial, SBA, and lease financing

572,726

7,239

5.13%

523,194

6,192

4.70%

Other consumer

150,034

1,518

4.10%

139,837

2,068

5.87%

Gross loans and leases

5,139,399

58,155

4.59%

4,534,428

52,599

4.60%

Securities

354,475

1,927

2.20%

310,454

1,781

2.28%

Other interest-earning assets

219,892

698

1.29%

189,091

700

1.47%

Total interest-earning assets

5,713,766

60,780

4.31%

5,033,973

55,080

4.34%

Allowance for loan and lease losses

(29,623)

(26,105)

BOLI and non-interest earning assets

247,283

215,595

Total assets

$ 5,931,426

$ 5,223,463

Interest-bearing liabilities

Savings

$    945,530

$     1,748

0.75%

$    960,253

$     1,963

0.81%

Interest-bearing checking

1,042,895

2,041

0.79%

937,623

2,078

0.88%

Money market

1,092,987

958

0.36%

964,414

841

0.35%

Certificates of deposit

1,004,261

1,614

0.65%

837,174

1,558

0.74%

Total interest-bearing deposits

4,085,673

6,361

0.63%

3,699,464

6,440

0.69%

FHLB advances

487,600

353

0.29%

307,859

210

0.27%

Long-term debt and other interest-bearing liabilities

96,379

2,069

8.71%

98,672

2,099

8.44%

Total interest-bearing liabilities

4,669,652

8,783

0.76%

4,105,995

8,749

0.85%

Noninterest-bearing deposits

682,492

577,623

Non-interest-bearing liabilities

61,947

52,267

Total liabilities

5,414,091

4,735,885

Total stockholders' equity

517,335

487,578

Total liabilities and stockholders' equity

$ 5,931,426

$ 5,223,463

Net interest income/spread

$   51,997

3.55%

$   46,331

3.49%

Net interest margin

3.69%

3.65%

Ratio of interest-earning assets to interest-bearing liabilities

122.36%

122.60%

Total deposits

$ 4,768,165

$     6,361

0.54%

$ 4,277,087

$     6,440

0.60%

Total funding (1)

$ 5,352,144

$     8,783

0.67%

$ 4,683,618

$     8,749

0.74%

(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)

Year Ended

December 31, 2015

December 31, 2014

Average

Yield 

Average

Yield 

Balance

Interest

/ Cost

Balance

Interest

/ Cost

Interest earning assets

Loans held for sale and SFR mortgage

$ 1,924,593

$   72,167

3.75%

$ 1,632,547

$   62,269

3.81%

Seasoned SFR mortgage loan pools

683,612

42,102

6.16%

683,121

46,153

6.76%

Commercial real estate, multi-family, and construction

1,751,851

80,708

4.61%

935,129

44,494

4.76%

Commercial and industrial, SBA, and lease financing

802,821

40,989

5.11%

438,250

22,558

5.15%

Other consumer

137,360

5,590

4.07%

116,192

5,287

4.55%

Gross loans and leases

5,300,237

241,556

4.56%

3,805,239

180,761

4.75%

Securities

776,256

20,263

2.61%

225,182

5,158

2.29%

Other interest-earning assets

276,823

4,519

1.63%

146,097

2,220

1.52%

Total interest-earning assets

6,353,316

266,338

4.19%

4,176,518

188,139

4.50%

Allowance for loan and lease losses

(32,467)

(22,354)

BOLI and non-interest earning assets

298,168

194,462

Total assets

$ 6,619,017

$ 4,348,626

Interest-bearing liabilities

Savings

$    862,160

$     6,467

0.75%

$    967,803

$     9,121

0.94%

Interest-bearing checking

1,204,560

8,973

0.74%

735,156

7,629

1.04%

Money market

1,219,416

4,590

0.38%

692,464

2,788

0.40%

Certificates of deposit

1,006,493

5,753

0.57%

662,183

4,873

0.74%

Total interest-bearing deposits

4,292,629

25,783

0.60%

3,057,606

24,411

0.80%

FHLB advances

553,162

2,120

0.38%

267,816

527

0.20%

Long-term debt and other interest-bearing liabilities

225,020

14,718

6.54%

96,279

7,924

8.23%

Total interest-bearing liabilities

5,070,811

42,621

0.84%

3,421,701

32,862

0.96%

Noninterest-bearing deposits

875,227

468,077

Non-interest-bearing liabilities

60,586

45,394

Total liabilities

6,006,624

3,935,172

Total stockholders' equity

612,393

413,454

Total liabilities and stockholders' equity

$ 6,619,017

$ 4,348,626

Net interest income/spread

$ 223,717

3.35%

$ 155,277

3.54%

Net interest margin

3.52%

3.72%

Ratio of interest-earning assets to interest-bearing liabilities

125.29%

122.06%

Total deposits

$ 5,167,856

$   25,783

0.50%

$ 3,525,683

$   24,411

0.69%

Total funding (1)

$ 5,946,038

$   42,621

0.72%

$ 3,889,778

$   32,862

0.84%

(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)

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015 (1)

2014

Capital Ratios

Banc of California, Inc.

Total risk-based capital ratio:

11.18%

12.56%

14.01%

11.55%

11.28%

Tier 1 risk-based capital ratio:

10.71%

12.06%

13.19%

10.83%

10.54%

Common equity tier 1 capital ratio (1)

7.36%

8.19%

8.96%

9.01%

 N/A    

Tier 1 leverage ratio:

8.07%

8.97%

9.55%

7.99%

8.57%

Banc of California, NA

Total risk-based capital ratio:

13.45%

14.93%

14.86%

13.58%

12.04%

Tier 1 risk-based capital ratio:

12.79%

14.19%

14.04%

12.86%

11.29%

Common equity tier 1 capital ratio (1)

12.79%

14.19%

14.04%

12.86%

 N/A    

Tier 1 leverage ratio:

9.64%

10.53%

10.26%

9.49%

9.17%

(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:

December 31,

September 30,

June 30,

March 31,

December 31,

2015

2015

2015

2015

2014

Tangible common equity to tangible assets ratio

Total assets

$   8,235,555

$     7,256,810

$ 6,437,882

$ 6,097,355

$   5,971,297

Less goodwill

(39,244)

(39,244)

(31,591)

(31,591)

(31,591)

Less other intangible assets

(19,158)

(20,504)

(21,905)

(23,708)

(25,252)

Tangible assets

$   8,177,153

$     7,197,062

$ 6,384,386

$ 6,042,056

$   5,914,454

Total stockholders' equity

$      652,405

$        643,534

$    633,882

$    514,160

$      503,315

Less preferred stock

(190,750)

(190,750)

(190,750)

(79,877)

(79,877)

Less goodwill

(39,244)

(39,244)

(31,591)

(31,591)

(31,591)

Less other intangible assets

(19,158)

(20,504)

(21,905)

(23,708)

(25,252)

Tangible common equity

$      403,253

$        393,036

$    389,636

$    378,984

$      366,595

Total stockholders' equity to total assets

7.92%

8.87%

9.85%

8.43%

8.43%

Tangible common equity to tangible assets

4.93%

5.46%

6.10%

6.27%

6.20%

Common stock outstanding

38,002,267

37,751,445

35,647,476

35,063,199

34,190,740

Class B non-voting non-convertible common stock outstanding

37,355

-

-

11

609,195

Total common stock outstanding

38,039,622

37,751,445

35,647,476

35,063,210

34,799,935

Minimum number of shares issuable under purchase contracts (1)

601,299

828,246

2,883,892

2,984,367

3,215,538

Total common stock outstanding and shares issuable under purchase contracts

38,640,921

38,579,691

38,531,368

38,047,577

38,015,473

(1) Purchase contracts relating to the tangible equity units

Tangible common equity per common stock

$          10.60

$            10.41

$        10.93

$        10.81

$          10.53

Book value per common stock

$          12.14

$            11.99

$        12.43

$        12.39

$          12.17

Tangible equity per common stock and shares issuable under purchase contracts

$          10.44

$            10.19

$        10.11

$          9.96

$            9.64

Book value per common stock and shares issuable under purchase contracts

$          11.95

$            11.74

$        11.50

$        11.41

$          11.14

 

Banc of California, Inc.

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

2015

2015

2015

2015

2014

2015

2014

Return on tangible common equity

Average total stockholders' equity

$      654,106

$        645,713

$    630,547

$    517,335

$      487,578

$      612,393

$      413,454

Less average preferred stock

(190,750)

(190,750)

(182,233)

(79,877)

(79,877)

(161,288)

(79,877)

Less average goodwill

(39,244)

(31,674)

(31,591)

(31,591)

(33,129)

(33,541)

(32,326)

Less average other intangible assets

(19,877)

(21,320)

(23,032)

(24,720)

(13,611)

(22,222)

(11,739)

Average tangible common equity

$      404,235

$        401,969

$    393,691

$    381,147

$      360,961

$      395,342

$      289,512

Net income

$        19,038

$          14,536

$      15,924

$      12,574

$        10,110

$        62,072

$        30,205

Less preferred stock dividends

(3,030)

(3,040)

(2,843)

(910)

(910)

(9,823)

(3,640)

Add tax-effected amortization of intangible assets(1)

875

911

1,004

1,004

849

3,793

2,651

Add tax-effected impairment on intangible assets(1)

-

-

168

-

31

168

31

Net income available to common stockholders

$        16,883

$          12,407

$      14,253

$      12,668

$        10,080

$        56,210

$        29,247

(1) Utilized a 35% effective tax rate

Return on average equity

11.55%

8.93%

10.13%

9.86%

8.23%

10.14%

7.31%

Return on average tangible common equity

16.57%

12.25%

14.52%

13.48%

11.08%

14.22%

10.10%

 

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SOURCE Banc of California, Inc.



RELATED LINKS

http://www.bancofcal.com