BANC OF CALIFORNIA, INC. - FORM 8-K - EX-99

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8-K - BANC OF CALIFORNIA, INC.	form8k-03012013_060302.htm

Exhibit 99.1

First PacTrust Bancorp, Inc. Announces

Fourth Quarter and Year End Financial Results

IRVINE, CA, March 1, 2013 – First PacTrust Bancorp (NASDAQ: BANC) (“First PacTrust” or the “Company”), the holding company for Pacific Trust Bank (“PacTrust Bank”) and Beach Business Bank, today announced financial results for the fourth quarter and the twelve months ended December 31, 2012. For the quarter, the Company reported a net loss of $3.2 million, or ($0.30) per common share outstanding, compared with a net loss of $5.6 million, or ($0.52) per common share outstanding, for the fourth quarter of 2011. For the twelve months ended December 31, 2012, the Company reported net income of $6.0 million and net income available to common shareholders of $4.6 million, or $0.40 per common share outstanding, compared with a net loss of $2.7 million and a net loss available to common shareholders of $3.3 million, or ($0.28) per common share outstanding, for the twelve months ended December 31, 2011.

The Company’s total assets increased by $18 million over September 30, 2012 to $1.7 billion at December 31, 2012. For the year, total assets grew by $688 million, or 69%, including $488 million from the acquisitions of Beach Business Bank and Gateway Business Bank. Although total deposits declined by $22 million for the fourth quarter, year-over-year deposits grew by $520 million, or 66%, to $1.3 billion at December 31, 2012. The Company’s net interest margin for the fourth quarter of 2012 was 3.77% and its cost of interest-bearing deposits was 0.50%. Year-over-year, net interest margin expanded by 39 bps due to a higher average yield on loans and a lower average cost of deposits. Non-interest income for the quarter was at $16.0 million, including $14.4 million of mortgage banking revenues generated by the Mission Hills Mortgage Bankers Division of PacTrust Bank, which originated $351 million in single-family residential loans in the fourth quarter. Also for the fourth quarter, non-interest expense was higher as a result of merger related costs associated with the Company’s third quarter acquisitions, as well as expenses related to expansion of PacTrust Bank’s residential mortgage lending business.

Steven Sugarman, Chief Executive Officer, commented: “First PacTrust Bancorp is well positioned for 2013 in terms of its team, capital and strategy. We continue to focus on the closing of the acquisition of The Private Bank of California, the realization of operating synergies relating to our recently closed acquisitions, and the continued expansion of our Commercial Banking and Residential Lending platforms. We remain confident in our ability to execute these key initiatives and demonstrate the considerable earnings power of our franchise.”

During the fourth quarter of 2012, the Company: accelerated payment to December 30th of the $0.12 dividend per common share, in addition to making payment on October 1st of the $0.12 dividend; increased its provision for loan and lease losses to $3.5 million, resulting in ALLL of $14.4 million, or 1.51% of total loans (excluding loans acquired at a discount), at December 31, 2012; reduced its bargain purchase gain relating to the acquisition of Gateway Business Bank by $429 thousand; and issued an additional $52 million of its 7.5% Senior Notes due April 15, 2020 (NASDAQ: BANCL).

The Company plans to discuss its fourth quarter earnings, among other items, on March 1, 2013, at 8:00 a.m., Pacific Time. All interested parties are welcome to attend the conference call at 866-503-8728, event code 68806439.

About First PacTrust Bancorp

Based in Irvine, CA, First PacTrust Bancorp, Inc. is the $1.7 billion multi-bank holding company of Pacific Trust Bank and Beach Business Bank, which together operate banking offices in Los Angeles, Orange, San Diego and Riverside counties, and loan production offices in California, Arizona, Oregon and Washington.

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 First PacTrust with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and First PacTrust 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.

Source: First PacTrust Bancorp, Inc.

INVESTOR RELATIONS INQUIRIES:

First PacTrust Bancorp, Inc.

Richard Herrin, 949-236-5300

MEDIA INQUIRIES:

Sitrick And Company

Thomas S. Mulligan, 212-573-6100


ITEM 1 – FINANCIAL STATEMENTS
First PacTrust Bancorp, Inc.
Consolidated Statements of Financial Condition
(In thousands of dollars except share and per share data)
(Unaudited)

	December 31,		December 31,
	2012		2011

ASSETS
Cash and due from banks	$	8,254	$	6,755
Interest-bearing deposits		100,389		37,720
Total cash and cash equivalents		108,643		44,475
Time deposits in financial institutions		5,027		—
Securities available for sale		121,419		101,616
Federal Home Loan Bank and Other Bank stock, at cost		8,842		6,972
Loans receivable, net of allowance of $14,448 at December 31, 2012 and $12,780 at December 31, 2011		1,234,023		775,609
Loans held for sale		113,158		—
Servicing rights, net		2,278		—
Accrued interest receivable		5,003		3,569
Other real estate owned (OREO), net		4,527		14,692
Premises and equipment, net		16,147		10,585
Bank owned life insurance investment		18,704		18,451
Prepaid FDIC assessment		1,385		2,405
Deferred income tax		7,572		7,643
Goodwill		7,048		—
Other intangible assets, net		5,474		—
Other assets		28,544		13,024
Total assets	$	1,687,792	$	999,041

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand	$	120,291	$	20,039
Interest-bearing Deposits
Interest-bearing demand		89,481		68,578
Money market accounts		294,804		188,658
Savings accounts		159,055		39,176
Certificates of deposit		642,710		469,883
Total deposits		1,306,341		786,334
Advances from Federal Home Loan Bank		75,000		20,000
Notes payable, net		84,892		—
Reserve for loss reimbursements on sold loans		4,932		—
Accrued expenses and other liabilities		27,869		8,212
Total liabilities		1,499,034		814,546
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY
Preferred stock, $.01 par value per share, $1,000 per share liquidation preference for a total of $32,000; 50,000,000 shares authorized, 32,000 shares issued and outstanding at December 31, 2012; 32,000 shares issued and outstanding at December 31, 2011		31,935		31,934
Common stock, $.01 par value per share, 196,863,844 shares authorized; 12,013,717 shares issued and 10,780,427 shares outstanding at December 31, 2012; 11,756,636 shares issued and 10,581,704 shares outstanding at December 31, 2011		120		117


Class B non-voting non-convertible Common stock, $.01 par value per share, 3,136,156 shares authorized; 1,112,188 shares issued and outstanding at December 31, 2012 and 1,054,991 shares issued and outstanding at December 31, 2011		11			11
Additional paid-in capital		154,563			150,786
Retained earnings		26,550			27,623
Treasury stock, at cost (December 31, 2012-1,233,290 shares, December 31, 2011-1,174,932 shares)		(25,818	)		(25,037	)
Accumulated other comprehensive income/(loss), net		1,397			(939	)
Total shareholders’ equity		188,758			184,495
Total liabilities and shareholders’ equity	$	1,687,792		$	999,041


ITEM 1 – FINANCIAL STATEMENTS
First PacTrust Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income/(Loss)
(In thousands of dollars except share and per share data)
(Unaudited)



	Three months ended						Twelve months ended
	December 31,						December 31,

	2012			2011			2012		2011
Interest and dividend income
Loans, including fees	$	16,883		$	8,061		$	51,942	$	30,997
Securities		597			700			2,736		3,963
Dividends and other interest-earning assets		126			62			353		217
Total interest and dividend income		17,606			8,823			55,031		35,177
Interest expense
Savings		177			37			410		319
NOW		168			31			330		81
Money market		168			116			726		306
Certificates of deposit		1,161			1,058			4,494		4,283
Federal Home Loan Bank advances		82			88			348		1,048
Capital leases		5			—			9		—
Notes payable		1,007			—			2,162		—
Total interest expense		2,768			1,330			8,479		6,037
Net interest income		14,838			7,493			46,552		29,140
Provision for loan and lease losses		3,499			4,114			5,500		5,388
Net interest income after provision for loan and lease losses		11,339			3,379			41,052		23,752
Noninterest income
Customer service fees		602			366			1,883		1,473
Mortgage banking revenue		14,409			—			20,886		—
All other noninterest income		954			133			13,850		3,440
Total noninterest income		15,965			499			36,619		4,913
Noninterest expense
Salaries and employee benefits		18,234			4,426			41,891		13,914
Occupancy and equipment		3,109			922			7,902		2,848
All other operating expenses		7,601			5,865			21,768		14,927
Total noninterest expense		28,944			11,213			71,561		31,689
Income/(loss) before income taxes		(1,640	)		(7,335	)		6,110		(3,024	)
Income tax expense/(benefit)		1,545			(1,721	)		115		(296	)
Net income/(loss)		(3,185	)		(5,614	)		5,995		(2,728	)
Preferred stock dividends		317			396			1,359		534
Net income/(loss) available to common shareholders	$	(3,502	)	$	(6,010	)	$	4,636	$	(3,262	)
Basic earnings per common share	$	(0.30	)	$	(0.52	)	$	0.40	$	(0.28	)
Diluted earnings per common share	$	(0.30	)	$	(0.52	)	$	0.40	$	(0.28	)

Other comprehensive income/(loss), before tax:
Change in net unrealized gains on securities:
Net unrealized holding gains arising during the period		98			(715	)		2,253		(3,123	)
Less: reclassification adjustment for (gains)/losses included in net income		—			(1	)		83		(2,888	)


Net unrealized gains, net of reclassification adjustments		98			(716	)		2,336		(6,011	)
Income tax expense/(benefit) related to items of other comprehensive income		(921	)		(294	)		-		(2,473	)

Total other comprehensive income/(loss), net of tax		1,019			(422	)		2,336		(3,538	)

Comprehensive income/(loss)	$	(2,166	)	$	(6,036	)	$	8,331	$	(6,266	)


FIRST PACTRUST BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA
(Amounts in thousands, except share and per share data)

	December			September			June			March			December			September
	2012(1)			2012(1)			2012			2012			2011			2011

Balance sheet data, at quarter end:
Total assets	$	1,687,792		$	1,669,732		$	1,115,120		$	1,083,082		$	999,041		$	928,977
Total gross loans		1,248,471			1,215,374			839,931			838,409			787,280			703,454
Total loans held for sale		113,158			110,291			-			-			-			-
Allowance for loan losses		(14,448	)		(12,379	)		(11,448	)		(11,173	)		(12,780	)		(8,993	)
Securities available for sale		121,419			122,271			117,008			101,452			101,616			64,926
Noninterest-bearing deposits		120,291			88,616			26,594			24,961			20,039			20,934
Total deposits		1,306,342			1,328,221			852,331			853,843			786,334			711,609
FHLB advances and other borrowings		159,892			120,018			66,883			35,000			20,000			20,000
Total shareholders’ equity		188,758			191,739			182,295			184,002			184,495			191,488

Balance sheet data, quarterly averages:
Total assets	$	1,687,501		$	1,533,497		$	1,108,120		$	1,048,033		$	964,321		$	904,738
Total gross loans		1,235,548			1,141,426			829,592			806,648			708,598			679,199
Total loans held for sale		111,763			43,851			-			-			-			-
Securities available for sale		127,297			136,307			107,910			105,254			92,231			90,454
Total interest earning assets		1,574,154			1,432,443			1,030,259			973,400			887,799			829,000
Total deposits		1,339,460			1,207,610			857,856			814,115			743,610			702,780
Advances from FHLB and other borrowings		126,096			99,002			60,163			37,802			20,000			20,326
Total shareholders’ equity		195,305			192,575			182,260			186,041			191,824			173,495

Statement of operations data, for the three months ended:
Interest income	$	17,606		$	16,722		$	10,378		$	10,325		$	8,823		$	8,823
Interest expense		2,768			2,314			1,947			1,449			1,330			1,339

Net interest income		14,838			14,408			8,431			8,876			7,493			7,484
Provision for loan losses		3,499			1,031			279			691			4,114			823

Net interest income after provision for loan losses		11,339			13,377			8,152			8,185			3,379			6,661
Noninterest income		15,965			19,512			639			503			499			2,012
Noninterest expense		28,944			24,456			9,943			8,218			11,213			7,661

Income/(loss) before income taxes		(1,640	)		8,433			(1,152	)		470			(7,335	)		1,012
Income tax expense/(benefit)		1,545			(1,110	)		(413	)		93			(1,721	)		368
Preferred stock dividends		317			328			314			400			396			138


Net income/(loss) available to common stockholders	$	(3,502	)	$	9,215		$	(1,053	)	$	(23	)	$	(6,010	)	$	506

Profitability and other ratios:
Return on avg. assets (2)		(0.75	%)		2.49	%		(0.27	%)		0.14	%		(2.33	%)		0.28	%
Return on avg. equity (2)		(6.52	)		18.59			(1.61	)		0.81			(11.71	)		1.48
Net interest margin (2)		3.77			4.02			3.27			3.65			3.38			3.61
Noninterest income to total revenue (3)		51.83			57.52			5.88			5.36			6.24			21.19
Noninterest income to avg. assets (2)		3.78			5.09			0.19			0.19			0.21			0.89
Noninterest exp. to avg. assets (2)		6.86			6.38			3.59			3.14			4.65			3.39
Efficiency ratio (4)		93.96			72.08			111.01			87.62			140.30			80.68
Avg. loans to average deposits		100.59			98.15			96.71			98.08			95.29			96.64
Securities available for sale to total assets		7.19			7.32			10.49			9.37			10.17			6.99
Average interest-earning assets to average interest-bearing liabilities		108.16	%		110.21	%		112.72	%		114.26	%		116.26	%		114.64	%

Asset quality information and ratios:
Nonaccrual Loans	$	22,993		$	16,181		$	16,878		$	18,343		$	19,254		$	0.00
90+ delinquent loans and OREO:
90+ delinquent loans		9,176			1,479			1,985			2,557			7,790			9,151
Other real estate owned (OREO)		4,527			8,704			9,239			12,843			14,692			20,551

Totals	$	13,703		$	10,183		$	11,224		$	15,400		$	22,482		$	29,702

Net loan charge-offs	$	1,429		$	226		$	0		$	2,298		$	327		$	261
Allowance for loan losses to nonaccrual loans, net		66.42	%		84.41	%		74.80	%		65.24	%		78.43	%		82.38	%
Allowance for loan losses to total loans		1.16			1.02			1.36			1.33			1.62			1.28
Allowance for loan losses to total loans (5) (excluding purchased & PCI loans)		1.51			1.35			1.40			1.37			1.62			1.28
90+ delinquent loans and OREO to total loans and OREO		1.09			0.83			1.42			1.81			2.80			4.10
90+ delinquent loans and OREO to total assets		0.81	%		0.61	%		1.07	%		1.42	%		2.25	%		3.20	%

(1) Includes impact of Beach Business Bank and Gateway Business Bank acquisition

(2) Ratios are presented on an annualized basis

(3) Total revenue is equal to the sum of net interest income before provision and noninterest income

(4) Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan losses and noninterest income

(5) Purchased loans that have been marked to market at aquisition.

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