Attached files
| file | filename |
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| 8-K - BANC OF CALIFORNIA, INC. | form8k-08072013_040802.htm |
Exhibit 99.1
Banc of California, Inc. Reports 2013 Second Quarter
Financial Results
IRVINE, CA, August 7, 2013 – Banc of California, Inc. (NASDAQ: BANC) (the “Company”), the holding company for Pacific Trust Bank and Beach Business Bank, today announced financial results for the three and six months ended June 30, 2013. For the quarter, the Company reported net income and earnings available to common stockholders of $4.36 million or $0.36 per diluted common share. This compares with net income available to common stockholders of $641 thousand, or $0.05 per diluted common share, for the first quarter ended March 31, 2013, and net loss available to common stockholders of $1.05 million, or ($0.09) per diluted common share, for the preceding second quarter ended June 30, 2012. Year to date, the Company reported net income of $5.29 million with earnings available to common shareholders of $5 million, or $0.41 per diluted common share. This compares with net loss available to common shareholders of $1.1 million or ($0.09) per diluted common share for the first six months of 2012. The Company’s consolidated assets totaled $2.5 billion at June 30, 2013, an increase of $484.1 million compared with $2.1 billion at March 31, 2013 and an increase of $1.4 billion compared with $1.1 billion at June 30, 2012. Year to date, total assets increased by $852.4 million. Loans and leases receivable remained flat quarter over quarter at $1.6 billion on June 30, 2013, a year to date increase of $363.3 million and an increase of $768.2 million compared with $829.1 million at June 30, 2012. The increases in total assets and loans and leases receivable were due mainly to organic loan growth, loans acquired in the Beach Business Bank and Gateway Bancorp acquisitions, purchases of seasoned residential mortgage loans, and growth in deposits to support the previously announced branch sale anticipated to close in fourth quarter 2013. Total deposits of $2.1 billion at June 30, 2013 represented an increase of $411.0 million compared with $1.7 billion at March 31, 2013. Year to date, deposits have increased by $803.5 million and by $1.3 billion compared with $852.3 million at June 30, 2012.
Steven Sugarman, Chief Executive Officer of the Company, stated: “We continue to transform our banking franchise. During the second quarter we grew our retail core deposit base and expanded our residential mortgage lending platform. We also successfully closed the acquisition of The Private Bank of California on July 1, 2013. To support these strategic initiatives, we completed two capital raises in June – a common and a preferred stock offering – demonstrating our capital markets capability and commitment to support our capital and liquidity needs. During the second half of the year, we will continue to focus on enhancing long term profitability through the consolidation of our two banks into one nationally chartered financial institution, the closing of the pending acquisitions of The Palisades Group and CS Financial, and the sale of eight non-core branch locations.”
The Company plans to discuss its second quarter earnings, among other items, on August 7, 2013, at 8:00 a.m., Pacific Time. All interested parties are welcome to attend the conference call at 866-503-8728, event code 26768941.
About Banc of California, Inc.
Since 1941, Banc of California, Inc. (NASDAQ:BANC) through its banking subsidiaries Pacific Trust Bank and The Private Bank of California, has provided banking services and home loans to businesses and families in California and the West. Today, Banc of California, Inc. has over $3 billion in consolidated assets and more than 60 banking locations.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
Source: Banc of California, Inc.
INVESTOR RELATIONS INQUIRIES:
Banc of California, Inc.
Richard Herrin, (949) 236-5300
MEDIA INQUIRIES:
Vectis Strategies
David Herbst, (310) 625-5849
Financial Highlights
For the three months ended, | For the six months ended, | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||
Net income (loss) | $ | 4,363 | $ | 929 | $ | (739 | ) | $ | 5,292 | $ | (362 | ) | ||||||||
Net income (loss) available to common stockholders | $ | 4,363 | $ | 641 | $ | (1,053 | ) | $ | 5,004 | $ | (1,076 | ) | ||||||||
Diluted earnings (loss) per share | $ | 0.36 | $ | 0.05 | $ | (0.09 | ) | $ | 0.41 | $ | (0.09 | ) | ||||||||
ROA | 0.76 | % | 0.21 | % | -0.27 | % | 0.53 | % | -0.07 | % | ||||||||||
ROE | 8.58 | % | 1.96 | % | -1.61 | % | 8.58 | % | -1.61 | % | ||||||||||
Net Interest Margin | 3.93 | % | 3.70 | % | 3.26 | % | 5.39 | % | -0.39 | % | ||||||||||
Non-interest income | $ | 26,072 | $ | 17,928 | $ | 639 | $ | 44,000 | $ | 1,142 | ||||||||||
Non-interest expense | $ | 39,594 | $ | 29,558 | $ | 9,943 | $ | 69,152 | $ | 18,161 | ||||||||||
Provision for Loan Loss | $ | 1,918 | $ | 2,168 | $ | 279 | $ | 4,086 | $ | 970 | ||||||||||
Net Charge-offs | $ | 954 | $ | 601 | $ | 4 | $ | 1,555 | $ | 2,302 | ||||||||||
Net loans receivable | $ | 1,597,367 | $ | 1,611,257 | $ | 829,137 | ||||||||||||||
Deposits | $ | 2,109,831 | $ | 1,698,798 | $ | 852,331 | ||||||||||||||
Non-accrual loans | $ | 9,164 | $ | 16,521 | $ | 16,878 | ||||||||||||||
ALLL to originated loans | 1.49 | % | 1.52 | % | 1.40 | % | ||||||||||||||
Banc of California, Inc.
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
(Unaudited)
June 30, | March 31, | June 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 8,153 | $ | 8,420 | $ | 7,211 | ||||||
Interest-bearing deposits | 454,182 | 114,776 | 81,616 | |||||||||
Total cash and cash equivalents | 462,335 | 123,196 | 88,827 | |||||||||
Time deposits in financial institutions | 2,589 | 3,635 | - | |||||||||
Securities available for sale | 106,751 | 99,658 | 117,008 | |||||||||
Federal Home Loan Bank and Other Bank stock, at cost | 10,838 | 8,844 | 6,311 | |||||||||
Loans and leases receivable, net of allowance of $16,979, $16,015 and $11,449 at June 30, 2013, | ||||||||||||
March 31, 2013 and June 30, 2012, respectively | 1,597,367 | 1,611,257 | 829,137 | |||||||||
Loans held for sale | 257,949 | 114,582 | - | |||||||||
Servicing rights, net | 5,040 | 3,077 | - | |||||||||
Accrued interest receivable | 7,887 | 5,051 | 3,715 | |||||||||
Other real estate owned (OREO), net | 1,537 | 1,764 | 9,239 | |||||||||
Premises and equipment, net | 15,533 | 17,695 | 13,152 | |||||||||
Premises and equipment held-for-sale | 3,139 | - | - | |||||||||
Bank owned life insurance investment | 18,792 | 18,742 | 18,581 | |||||||||
Deferred income tax | 7,199 | 7,572 | 7,126 | |||||||||
Goodwill | 7,048 | 7,048 | - | |||||||||
Affordable housing fund investment | 2,874 | 6,038 | 6,408 | |||||||||
Income tax receivable | 738 | 2,624 | 5,249 | |||||||||
Other intangible assets, net | 4,740 | 5,107 | - | |||||||||
Other assets | 22,758 | 15,165 | 10,367 | |||||||||
Total assets | $ | 2,535,114 | $ | 2,051,055 | $ | 1,115,120 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing deposits | $ | 132,855 | $ | 142,735 | $ | 26,594 | ||||||
Interest-bearing deposits | 1,519,948 | 1,556,063 | 825,737 | |||||||||
Deposits held for sale | 457,028 | - | - | |||||||||
Total deposits | 2,109,831 | 1,698,798 | 852,331 | |||||||||
Advances from Federal Home Loan Bank | 45,000 | 50,000 | 35,000 | |||||||||
Notes payable, net | 82,127 | 82,031 | 31,714 | |||||||||
Reserve for loss reimbursements on sold loans | 3,974 | 3,498 | - | |||||||||
Accrued expenses and other liabilities | 25,697 | 28,430 | 13,780 | |||||||||
Total liabilities | 2,266,629 | 1,862,757 | 932,825 | |||||||||
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 June 30, 2013, March 31, 2013 and June 30, 2012 | 31,934 | 31,934 | 31,925 | |||||||||
Perpetual preferred stock, $.01 par value per share; Series C, 8% non-cumulative, $1,000 per share liquidation preference, 1,610,000 shares authorized and 1,400,000 outstanding at June 30, 2013; 0 shares outstanding as of March 31, 2013 and June 30, 2012 | 33,734 | - | - | |||||||||
Common stock, $.01 par value per share, 196,863,844 shares authorized; 16,134,900 shares issued and 14,976,979 shares outstanding at June 30, 2013; 12,024,303 shares issued and 10,853,290 shares outstanding at March 31, 2013; 11,774,837 shares issued and 10,604,477 shares outstanding at June 30, 2012 | 162 | 120 | 118 | |||||||||
Class B non-voting non-convertible Common stock, $.01 par value per share, 3,136,156 shares authorized; 574,258 shares issued and outstanding at June 30, 2013; 1,112,188 shares issued and outstanding at March 31, 2013; 1,078,807 shares issued and outstanding at June 30, 2012 | 5 | 11 | 11 | |||||||||
Additional paid-in capital | 197,272 | 155,139 | 151,612 | |||||||||
Retained earnings | 28,678 | 25,755 | 23,746 | |||||||||
Treasury stock, at cost (1,157,921 shares at June 30, 2013; 1,171,013 shares at March 31, 2013; 1,170,360 shares at June 30, 2012) | (24,088 | ) | (25,850 | ) | (25,007 | ) | ||||||
Accumulated other comprehensive income/(loss), net | 788 | 1,189 | (110 | ) | ||||||||
Total shareholders’ equity | 268,485 | 188,298 | 182,295 | |||||||||
Total liabilities and shareholders’ equity | $ | 2,535,114 | $ | 2,051,055 | $ | 1,115,120 | ||||||
Banc of California, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended | Six months ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2013 | ||||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans, including fees | $ | 26,153 | $ | 18,537 | $ | 9,604 | $ | 44,690 | $ | 19,132 | ||||||||||
Securities | 369 | 498 | 694 | 867 | 1,431 | |||||||||||||||
Dividends and other interest-earning assets | 219 | 133 | 80 | 352 | 140 | |||||||||||||||
Total interest and dividend income | 26,741 | 19,168 | 10,378 | 45,909 | 20,703 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 3,303 | 1,999 | 1,358 | 5,302 | 2,707 | |||||||||||||||
Federal Home Loan Bank advances | 58 | 63 | 92 | 121 | 192 | |||||||||||||||
Capital leases | 20 | 12 | 2 | 32 | 2 | |||||||||||||||
Notes payable | 1,735 | 1,735 | 495 | 3,470 | 495 | |||||||||||||||
Total interest expense | 5,116 | 3,809 | 1,947 | 8,925 | 3,396 | |||||||||||||||
Net interest income | 21,625 | 15,359 | 8,431 | 36,984 | 17,307 | |||||||||||||||
Provision for loan and lease losses | 1,918 | 2,168 | 279 | 4,086 | 970 | |||||||||||||||
Net interest income after provision for loan and lease losses | 19,707 | 13,191 | 8,152 | 32,898 | 16,337 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Customer service fees | 509 | 546 | 378 | 1,055 | 739 | |||||||||||||||
Mortgage banking income | 20,261 | 16,370 | - | 36,631 | - | |||||||||||||||
Other | 5,302 | 1,012 | 261 | 6,314 | 403 | |||||||||||||||
Total noninterest income | 26,072 | 17,928 | 639 | 44,000 | 1,142 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||
Salaries and employee benefits | 25,311 | 19,080 | 5,177 | 44,391 | 10,044 | |||||||||||||||
Occupancy and equipment | 3,630 | 3,193 | 1,321 | 6,823 | 2,320 | |||||||||||||||
All other operating expenses | 10,653 | 7,285 | 3,445 | 17,938 | 5,797 | |||||||||||||||
Total noninterest expense | 39,594 | 29,558 | 9,943 | 69,152 | 18,161 | |||||||||||||||
Income (loss) before income taxes | 6,185 | 1,561 | (1,152 | ) | 7,746 | (682 | ) | |||||||||||||
Income tax expense | 1,822 | 632 | (413 | ) | 2,454 | (320 | ) | |||||||||||||
Net income (loss) | 4,363 | 929 | (739 | ) | 5,292 | (362 | ) | |||||||||||||
Preferred stock dividends and discount accretion | - | 288 | 314 | 288 | 714 | |||||||||||||||
Net income (loss) available to common shareholders | $ | 4,363 | $ | 641 | $ | (1,053 | ) | $ | 5,004 | $ | (1,076 | ) | ||||||||
Basic earnings (loss) per common share | $ | 0.36 | $ | 0.05 | $ | (0.09 | ) | $ | 0.41 | $ | (0.09 | ) | ||||||||
Diluted earnings (loss) per common share | $ | 0.36 | $ | 0.05 | $ | (0.09 | ) | $ | 0.41 | $ | (0.09 | ) | ||||||||
Banc of California, Inc.
Selected Financial Data
(Dollars in thousands)
As of or for the three months ended, | As of or for the six months ended, | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Quarterly average balance: | ||||||||||||||||||||
Total assets | 2,301,382 | 1,770,089 | 1,109,844 | 2,027,690 | 1,078,824 | |||||||||||||||
Total gross loans and leases | 1,843,645 | 1,415,091 | 840,948 | 1,630,552 | 829,999 | |||||||||||||||
Securities available for sale | 102,880 | 117,108 | 107,488 | 109,955 | 105,668 | |||||||||||||||
Total interest earning assets | 2,204,574 | 1,681,593 | 1,041,194 | 1,944,529 | 1,012,795 | |||||||||||||||
Total deposits | 1,938,164 | 1,407,415 | 857,777 | 1,674,257 | 837,771 | |||||||||||||||
Total Borrowings | 129,589 | 140,711 | 59,172 | 135,119 | 48,488 | |||||||||||||||
Total shareholders’ equity | 203,873 | 191,903 | 184,764 | 197,921 | 185,143 | |||||||||||||||
Interest Bearing Liabilities | 1,909,023 | 1,405,577 | 846,761 | 1,658,692 | 819,904 | |||||||||||||||
Profitability and other ratios: | ||||||||||||||||||||
Return on avg. assets (1) | 0.76 | % | 0.21 | % | -0.27 | % | 0.53 | % | -0.07 | % | ||||||||||
Return on avg. equity (1) | 8.58 | % | 1.96 | % | -1.61 | % | 5.39 | % | -0.39 | % | ||||||||||
Net interest margin (1) | 3.93 | % | 3.70 | % | 3.26 | % | 3.84 | % | 3.44 | % | ||||||||||
Noninterest income to total revenue (2) | 54.66 | % | 53.86 | % | 7.05 | % | 54.33 | % | 6.19 | % | ||||||||||
Noninterest income to avg. assets (1) | 4.54 | % | 4.11 | % | 0.23 | % | 4.38 | % | 0.21 | % | ||||||||||
Noninterest exp. to avg. assets (1) | 6.90 | % | 6.77 | % | 3.60 | % | 6.88 | % | 3.39 | % | ||||||||||
Efficiency ratio (3) | 83.01 | % | 88.80 | % | 109.63 | % | 85.39 | % | 98.44 | % | ||||||||||
Avg. loans to average deposits | 95.12 | % | 100.55 | % | 98.04 | % | 97.39 | % | 99.07 | % | ||||||||||
Average securities available for sale to average total assets | 4.47 | % | 6.62 | % | 9.68 | % | 5.42 | % | 9.79 | % | ||||||||||
Average interest-earning assets to average interest-bearing liabilities | 115.48 | % | 119.64 | % | 122.96 | % | 117.23 | % | 123.53 | % | ||||||||||
Average stockholders’ equity to average total assets | 8.86 | % | 10.84 | % | 16.65 | % | 9.76 | % | 17.16 | % | ||||||||||
Asset quality information and ratios: | ||||||||||||||||||||
Nonaccrual Loans, excluding PCI loans | $ | 9,164 | $ | 16,521 | $ | 16,878 | ||||||||||||||
90+ delinquent loans and OREO: | ||||||||||||||||||||
90+ delinquent loans, excluding PCI loans | $ | 10,741 | $ | 7,846 | $ | 1,986 | ||||||||||||||
Other real estate owned (OREO), net | 1,537 | 1,764 | 9,239 | |||||||||||||||||
Totals | $ | 12,278 | $ | 9,610 | $ | 11,225 | ||||||||||||||
Net loan charge-offs | $ | 954 | $ | 601 | $ | 4 | $ | 1,555 | $ | 2,302 | ||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Originated loans | $ | 16,199 | $ | 15,386 | $ | 11,448 | ||||||||||||||
Purchased/acquired loans: | ||||||||||||||||||||
Non-credit impaired | 468 | 391 | - | |||||||||||||||||
Credit impaired | 312 | 239 | - | |||||||||||||||||
Total purchased/acquired loans | 780 | 630 | - | |||||||||||||||||
Total ALLL | $ | 16,979 | $ | 16,015 | $ | 11,448 | ||||||||||||||
Loans: | ||||||||||||||||||||
Originated loans | $ | 1,086,271 | $ | 1,009,394 | $ | 817,103 | ||||||||||||||
Purchased/acquired loans: | ||||||||||||||||||||
Non-credit impaired (4) | 390,117 | 399,422 | - | |||||||||||||||||
Credit impaired (5) | 137,958 | 218,456 | 22,728 | |||||||||||||||||
Total purchased/acquired loans | 528,075 | 617,878 | 22,728 | |||||||||||||||||
Total loans | $ | 1,614,346 | $ | 1,627,272 | $ | 839,831 | ||||||||||||||
ALLL to originated loans | 1.49 | % | 1.52 | % | 1.40 | % | ||||||||||||||
(1) Ratios are presented on an annualized basis | |
(2) Total revenue is equal to the sum of net interest income before provision and noninterest income |
(3) Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan losses and noninterest income | |
(4) Includes $19.9 million and $17.4 million discounts at June 30, 2013 and March 31, 2013, respectively |
(5) Includes $74.5 million, $155.5 million and $15.3 million discounts at June 30, 2013, March 31, 2013 and June 30, 2012, respectively |
Banc of California, Inc.
Selected Quarterly Financial Data
(Dollars in thousands, except per share data)
June 30, | March 31, | June 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Capital Ratios | ||||||||||||
Banc of California, Inc. (1) | ||||||||||||
Total risk-based capital ratio: | 20.09 | % | 14.42 | % | N/A | |||||||
Tier 1 risk-based capital ratio: | 18.83 | % | 13.16 | % | N/A | |||||||
Tier 1 leverage ratio: | 11.16 | % | 9.94 | % | N/A | |||||||
PacTrust Bank | ||||||||||||
Total risk-based capital ratio: | 19.78 | % | 17.65 | % | 17.88 | % | ||||||
Tier 1 risk-based capital ratio: | 18.52 | % | 16.40 | % | 16.63 | % | ||||||
Tier 1 leverage ratio: | 10.03 | % | 10.47 | % | 11.44 | % | ||||||
Beach Business Bank (2) | ||||||||||||
Total risk-based capital ratio: | 16.79 | % | 16.06 | % | N/A | |||||||
Tier 1 risk-based capital ratio: | 15.88 | % | 15.37 | % | N/A | |||||||
Tier 1 leverage ratio: | 11.94 | % | 13.39 | % | N/A | |||||||
(1) Banc of California was a Savings and Loan Holding company and was not subject to regulatory capital requirements as of June 30, 2012 | |
(2) Beach Business Bank was not a subsidiary of the Company, and as such the capital ratios as of June 30, 2012 are not presented |
Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles ("GAAP"). This non-GAAP measure is used by management in the analysis of Banc of California, Inc.’s capital strength. 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 table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:
June 30, | March 31, | June 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Non-GAAP performance measure | ||||||||||||
Tangible common equity to tangible assets ratio | ||||||||||||
Total assets | $ | 2,535,114 | $ | 2,051,055 | $ | 1,115,120 | ||||||
Less goodwill | (7,048 | ) | (7,048 | ) | - | |||||||
Less other intangible assets | (4,740 | ) | (5,107 | ) | - | |||||||
Tangible assets | $ | 2,523,326 | $ | 2,038,900 | $ | 1,115,120 | ||||||
Total stockholders' equity | $ | 268,485 | $ | 188,298 | $ | 182,295 | ||||||
Less preferred stock | (65,668 | ) | (31,934 | ) | (31,925 | ) | ||||||
Less goodwill | (7,048 | ) | (7,048 | ) | - | |||||||
Less other intangible assets | (4,740 | ) | (5,107 | ) | - | |||||||
Tangible stockholders' equity | $ | 191,029 | $ | 144,209 | $ | 150,370 | ||||||
Total stockholders' equity to total assets | 10.59 | % | 9.18 | % | 16.35 | % | ||||||
Tangible stockholders' equity to tangible assets | 7.57 | % | 7.07 | % | 13.48 | % | ||||||
Common stock outstanding | 14,976,979 | 10,853,290 | 10,604,477 | |||||||||
Class B non-voting non-convertible | 574,258 | 1,112,188 | 1,078,807 | |||||||||
common stock outstanding | 574,258 | 1,112,188 | 1,078,807 | |||||||||
Total common stock outstanding | 15,551,237 | 11,965,478 | 11,683,284 | |||||||||
Tangible common equity per common stock | $ | 12.28 | $ | 12.05 | $ | 12.87 | ||||||
