Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - BANC OF CALIFORNIA, INC. | d769469dex992.htm |
| 8-K - 8-K - BANC OF CALIFORNIA, INC. | d769469d8k.htm |
Exhibit 99.1
Banc of California Reports Second Quarter Results
IRVINE, Calif., (July 31, 2014) – Banc of California, Inc. (NYSE: BANC) today reported net income of $8.1 million and net income available to common shareholders of $7.2 million, or $0.27 per diluted common share for the quarter ended June 30, 2014. This compares with a net loss to common shareholders of $153 thousand, or $(0.01) per diluted common share, for the quarter ended March 31, 2014, and net income available to common shareholders of $4.4 million, or $0.34 per diluted common share, for the year ago quarter ended June 30, 2013.
“Our strong performance this quarter is a result of the hard work and dedication of our employees,” said Steven Sugarman, President and Chief Executive Officer. “Growth and profitability this quarter were underscored by strength in key business areas including commercial, multifamily and mortgage banking. We remain excited for the pending acquisition Popular Community Bank’s California banking operations that will further accelerate the earnings power of our franchise.”
The Company’s consolidated assets totaled $4.39 billion at June 30, 2014, an increase of $356 million compared to the prior quarter, and an increase of $1.85 billion compared to a year ago.
Total loans and leases, representing both loans held for investment and loans held for sale, of $3.70 billion at June 30, 2014 increased $301 million compared to $3.40 billion at March 31, 2014, and have increased by $1.83 billion compared to the year ago quarter ending June 30, 2013.
Loans held for investment increased by $205 million, or 8.6% from the prior quarter to $2.60 billion.
Total deposits of $3.35 billion at June 30, 2014 represented an increase of $238 million compared to $3.11 billion at March 31, 2014 and an increase of $1.24 billion compared to $2.11 billion at June 30, 2013.
Total revenue of $70.9 million increased by $10.5 million compared with the prior quarter, and was $23.3 million higher from the second quarter 2013.
Net interest income for the second quarter was $35.6 million, an increase of $390 thousand, or 1.1 %, compared to the prior quarter. Net interest margin for the second quarter net interest margin was 3.70%.
Noninterest income for the second quarter totaled $35.4 million, compared to $25.3 million for the prior quarter and $26.1 million for the year ago quarter. The increase in second quarter noninterest income was primarily driven by stronger mortgage banking activity, with the net gain on mortgage banking activities of $26.1 million for the quarter, an increase of $8.8 million compared to the first quarter, and an increase of $5.9 million compared to a year ago.
Total noninterest expense for the quarter ending June 30, 2014 totaled $60.5 million, an increase of $2.7 million compared to the first quarter. The quarterly increase in noninterest expense was primarily driven by higher volume-related expenses, including commissions, bonuses and incentives compared to the first quarter.
18500 Von Karman Ave. — Suite 1100 — Irvine, CA 92612 — (949) 236-5250 — www.bancofcal.com
Capital ratios remain strong with a Tier 1 Risk-Based Capital Ratio of 14.1% as of June 30, 2014. The ratio of Tangible Common Equity to Tangible Assets (TCE/TA) improved to 7.3% at the end of the second quarter, compared to 5.1% at March 31, 2014.
The Company will host a conference call to discuss its second quarter earnings at 8:00 a.m. Pacific Time (PT) today, July 31, 2014. Interested parties are welcome to attend the conference call by dialing 877-474-9506, and referencing event code 83328951.
About Banc of California, Inc.
Since 1941, Banc of California, Inc. (NYSE:BANC) through its banking subsidiary Banc of California, National Association, has provided banking services and home loans to businesses and families in California and the West. Today, Banc of California, Inc. has over $4 billion in consolidated assets and more than 80 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: | MEDIA INQUIRIES: | |
| Banc of California, Inc. | Vectis Strategies | |
| Timothy Sedabres, (855) 361-2262 | David Herbst, (213) 973-4113 x101 |
- 2 -
Banc of California, Inc
Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
(Unaudited)
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks |
$ | 5,764 | $ | 5,733 | $ | 4,937 | $ | 8,153 | ||||||||
| Interest-bearing deposits |
252,287 | 327,906 | 105,181 | 454,182 | ||||||||||||
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| Total cash and cash equivalents |
258,051 | 333,639 | 110,118 | 462,335 | ||||||||||||
| Time deposits in financial institutions |
2,145 | 1,745 | 1,846 | 2,589 | ||||||||||||
| Securities available for sale |
233,013 | 107,525 | 170,022 | 106,751 | ||||||||||||
| Loans held for sale |
1,095,741 | 1,000,394 | 716,733 | 257,949 | ||||||||||||
| Loans and leases receivable |
2,602,213 | 2,396,995 | 2,446,111 | 1,614,346 | ||||||||||||
| Allowance for loan and lease losses |
(22,627 | ) | (20,003 | ) | (18,805 | ) | (16,979 | ) | ||||||||
| Federal Home Loan Bank and other bank stock |
34,392 | 26,801 | 22,600 | 10,838 | ||||||||||||
| Servicing rights, net |
10,191 | 18,880 | 13,883 | 5,040 | ||||||||||||
| Other real estate owned, net |
605 | 150 | — | 1,537 | ||||||||||||
| Premises and equipment, net |
67,457 | 67,278 | 66,260 | 15,533 | ||||||||||||
| Premises and equipment held for sale |
— | — | — | 3,139 | ||||||||||||
| Goodwill |
32,150 | 32,868 | 30,143 | 7,048 | ||||||||||||
| Other intangible assets, net |
10,959 | 11,213 | 12,152 | 4,740 | ||||||||||||
| Deferred income tax |
2,546 | — | — | 7,199 | ||||||||||||
| Income tax receivable |
— | 2,769 | 2,995 | 738 | ||||||||||||
| Bank-owned life insurance investment |
18,984 | 18,928 | 18,881 | 18,792 | ||||||||||||
| Other assets |
40,702 | 31,452 | 35,084 | 33,519 | ||||||||||||
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| Total assets |
$ | 4,386,522 | $ | 4,030,634 | $ | 3,628,023 | $ | 2,535,114 | ||||||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
| Deposits |
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| Noninterest-bearing deposits |
$ | 408,404 | $ | 430,925 | $ | 429,158 | $ | 132,855 | ||||||||
| Interest-bearing deposits |
2,938,951 | 2,678,221 | 2,489,486 | 1,519,948 | ||||||||||||
| Deposits held for sale |
— | — | — | 457,028 | ||||||||||||
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| Total deposits |
3,347,355 | 3,109,146 | 2,918,644 | 2,109,831 | ||||||||||||
| Advances from Federal Home Loan Bank |
450,000 | 395,000 | 250,000 | 45,000 | ||||||||||||
| Federal funds purchased |
— | 70,000 | — | — | ||||||||||||
| Notes payable, net |
96,481 | 82,416 | 82,320 | 82,127 | ||||||||||||
| Reserve for loss reimbursements on sold loans |
6,174 | 5,866 | 5,427 | 3,974 | ||||||||||||
| Income taxes payable |
31 | — | — | — | ||||||||||||
| Accrued expenses and other liabilities |
47,163 | 42,880 | 46,763 | 25,697 | ||||||||||||
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| Total liabilities |
3,947,204 | 3,705,308 | 3,303,154 | 2,266,629 | ||||||||||||
| Commitments and contingent liabilities |
||||||||||||||||
| Preferred stock, Series A, non-cumulative perpetual preferred stock |
31,934 | 31,934 | 31,934 | 31,934 | ||||||||||||
| Preferred stock, Series B, non-cumulative perpetual preferred stock |
10,000 | 10,000 | 10,000 | — | ||||||||||||
| Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock |
37,943 | 37,943 | 37,943 | 33,734 | ||||||||||||
| Common stock |
287 | 211 | 210 | 162 | ||||||||||||
| Common stock, class B non-voting non-convertible |
6 | 6 | 6 | 5 | ||||||||||||
| Additional paid-in capital |
369,530 | 258,861 | 256,306 | 197,272 | ||||||||||||
| Retained earnings |
18,779 | 14,398 | 16,981 | 28,678 | ||||||||||||
| Treasury stock |
(29,652 | ) | (27,726 | ) | (27,911 | ) | (24,088 | ) | ||||||||
| Accumulated other comprehensive (loss)/income, net |
491 | (301 | ) | (600 | ) | 788 | ||||||||||
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| Total shareholders’ equity |
439,318 | 325,326 | 324,869 | 268,485 | ||||||||||||
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| Total liabilities and shareholders’ equity |
$ | 4,386,522 | $ | 4,030,634 | $ | 3,628,023 | $ | 2,535,114 | ||||||||
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- 3 -
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, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Interest and dividend income |
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| Loans, including fees |
$ | 42,077 | $ | 41,530 | $ | 26,153 | $ | 83,607 | $ | 44,690 | ||||||||||
| Securities |
993 | 924 | 369 | 1,917 | 867 | |||||||||||||||
| Dividends and other interest-earning assets |
564 | 322 | 219 | 886 | 352 | |||||||||||||||
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| Total interest and dividend income |
43,634 | 42,776 | 26,741 | 86,410 | 45,909 | |||||||||||||||
| Interest expense |
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| Deposits |
6,071 | 5,735 | 3,303 | 11,806 | 5,302 | |||||||||||||||
| Federal Home Loan Bank advances |
99 | 100 | 58 | 199 | 121 | |||||||||||||||
| Notes payable and other interest-bearing liabilities |
1,889 | 1,756 | 1,755 | 3,645 | 3,502 | |||||||||||||||
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| Total interest expense |
8,059 | 7,591 | 5,116 | 15,650 | 8,925 | |||||||||||||||
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| Net interest income |
35,575 | 35,185 | 21,625 | 70,760 | 36,984 | |||||||||||||||
| Provision for loan and lease losses |
2,108 | 1,929 | 1,918 | 4,037 | 4,086 | |||||||||||||||
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| Net interest income after provision for loan and lease losses |
33,467 | 33,256 | 19,707 | 66,723 | 32,898 | |||||||||||||||
| Noninterest income |
||||||||||||||||||||
| Customer service fees |
356 | 253 | 509 | 609 | 1,055 | |||||||||||||||
| Mortgage banking income |
26,133 | 17,324 | 20,261 | 43,457 | 36,631 | |||||||||||||||
| All other income |
8,883 | 7,701 | 5,302 | 16,584 | 6,314 | |||||||||||||||
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| Total noninterest income |
35,372 | 25,278 | 26,072 | 60,650 | 44,000 | |||||||||||||||
| Noninterest expense |
||||||||||||||||||||
| Salaries and employee benefits |
39,130 | 34,681 | 25,311 | 73,811 | 44,391 | |||||||||||||||
| Occupancy and equipment |
7,425 | 8,537 | 3,630 | 15,962 | 6,823 | |||||||||||||||
| All other expenses |
13,910 | 14,550 | 10,653 | 28,460 | 17,938 | |||||||||||||||
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| Total noninterest expense |
60,465 | 57,768 | 39,594 | 118,233 | 69,152 | |||||||||||||||
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| Income before income taxes |
8,374 | 766 | 6,185 | 9,140 | 7,746 | |||||||||||||||
| Income tax expense |
253 | 9 | 1,822 | 262 | 2,454 | |||||||||||||||
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| Net income |
8,121 | 757 | 4,363 | 8,878 | 5,292 | |||||||||||||||
| Preferred stock dividends |
910 | 910 | — | 1,820 | 288 | |||||||||||||||
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| Net income (loss) available to common shareholders |
$ | 7,211 | $ | (153 | ) | $ | 4,363 | $ | 7,058 | $ | 5,004 | |||||||||
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| Basic earnings (loss) per total common share |
$ | 0.27 | $ | (0.01 | ) | $ | 0.35 | $ | 0.30 | $ | 0.41 | |||||||||
| Diluted earnings (loss) per total common share |
$ | 0.27 | $ | (0.01 | ) | $ | 0.34 | $ | 0.30 | $ | 0.40 | |||||||||
- 4 -
Banc of California, Inc
Selected Financial Data
(Dollars in thousands)
(Unaudited)
| Three months ended | Six months ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
| Average balances: |
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| Total assets |
$ | 4,034,447 | $ | 3,728,170 | $ | 2,301,382 | $ | 3,882,154 | $ | 2,027,690 | ||||||||||
| Total gross loans and leases |
3,553,693 | 3,289,689 | 1,843,645 | 3,422,420 | 1,630,552 | |||||||||||||||
| Securities available for sale |
168,230 | 163,007 | 102,880 | 165,633 | 109,955 | |||||||||||||||
| Total interest earning assets |
3,858,772 | 3,568,092 | 2,204,574 | 3,714,235 | 1,944,529 | |||||||||||||||
| Total interest-bearing deposits |
2,855,650 | 2,592,884 | 1,779,434 | 2,724,992 | 1,523,573 | |||||||||||||||
| Total borrowings |
319,774 | 350,631 | 129,589 | 335,117 | 135,119 | |||||||||||||||
| Interest bearing liabilities |
3,175,424 | 2,943,515 | 1,909,023 | 3,060,109 | 1,658,692 | |||||||||||||||
| Total shareholders’ equity |
385,098 | 329,617 | 203,873 | 357,511 | 197,921 | |||||||||||||||
| Profitability and other ratios: |
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| Return on average assets (1) |
0.81 | % | 0.08 | % | 0.76 | % | 0.46 | % | 0.53 | % | ||||||||||
| Return on average equity (1) |
8.46 | % | 0.93 | % | 8.58 | % | 5.01 | % | 5.39 | % | ||||||||||
| Dividend payout ratio (2) |
44.44 | % | — | 34.29 | % | 80.00 | % | 58.54 | % | |||||||||||
| Net interest spread |
3.52 | % | 3.81 | % | 3.80 | % | 3.66 | % | 3.67 | % | ||||||||||
| Net interest margin (1) |
3.70 | % | 4.00 | % | 3.93 | % | 3.84 | % | 3.84 | % | ||||||||||
| Noninterest income to total revenue (3) |
49.86 | % | 41.81 | % | 54.66 | % | 46.15 | % | 54.33 | % | ||||||||||
| Noninterest income to average total assets (1) |
3.52 | % | 2.75 | % | 4.54 | % | 3.15 | % | 4.38 | % | ||||||||||
| Noninterest expense to average total assets (1) |
6.01 | % | 6.28 | % | 6.90 | % | 6.14 | % | 6.88 | % | ||||||||||
| Efficiency ratio (4) |
85.23 | % | 95.54 | % | 83.01 | % | 89.97 | % | 85.39 | % | ||||||||||
| Average held for investment loans and leases to average deposits |
74.60 | % | 80.27 | % | 86.21 | % | 77.29 | % | 89.55 | % | ||||||||||
| Average securities available for sale to average total assets |
4.17 | % | 4.37 | % | 4.47 | % | 4.27 | % | 5.42 | % | ||||||||||
| Average shareholders’ equity to average total assets |
9.55 | % | 8.84 | % | 8.86 | % | 9.21 | % | 9.76 | % | ||||||||||
| Allowance for loan and lease losses (ALLL): |
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| Balance at beginning of period |
$ | 20,003 | $ | 18,805 | $ | 16,015 | $ | 18,805 | $ | 14,448 | ||||||||||
| Loans and leases charged off |
(383 | ) | (203 | ) | (1,027 | ) | (586 | ) | (1,932 | ) | ||||||||||
| Recoveries of loans and leases previously charged off |
641 | 435 | 73 | 1,076 | 377 | |||||||||||||||
| Transfer of loans from (to) held-for-sale |
258 | (963 | ) | — | (705 | ) | — | |||||||||||||
| Provision for loan and lease losses |
2,108 | 1,929 | 1,918 | 4,037 | 4,086 | |||||||||||||||
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| Balance at end of period |
$ | 22,627 | $ | 20,003 | $ | 16,979 | $ | 22,627 | $ | 16,979 | ||||||||||
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| Reserve for loss on repurchased loans |
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| Balance at beginning of period |
$ | 5,866 | $ | 5,427 | $ | 3,498 | $ | 5,427 | $ | 3,485 | ||||||||||
| Provision for loan repurchases |
968 | 571 | 732 | 1,539 | 988 | |||||||||||||||
| Payment made for loss reimbursement on sold loans |
(660 | ) | (132 | ) | (256 | ) | (792 | ) | (499 | ) | ||||||||||
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| Balance at end of period |
$ | 6,174 | $ | 5,866 | $ | 3,974 | $ | 6,174 | $ | 3,974 | ||||||||||
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| (1) | Ratios are presented on an annualized basis |
| (2) | Dividends declared per common share divided by basic earnings per share. Not applicable for the three months ended March 31, 2014, due to the net loss attributable to shareholders. |
| (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. |
- 5 -
Banc of California, Inc
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
| June 30, 2014 |
March 31, 2014 |
December 31, 2013 |
June 30, 2013 |
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| Asset quality information and ratios: |
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| 30 to 89 days delinquent, excluding PCI loans |
$ | 44,894 | $ | 29,726 | $ | 37,699 | $ | 35,411 | ||||||||
| 90+ days delinquent, excluding PCI loans |
16,925 | 16,419 | 13,441 | 10,741 | ||||||||||||
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| Total delinquent loans, excluding PCI loans |
61,819 | 46,145 | 51,140 | 46,152 | ||||||||||||
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| PCI loans, 30 to 89 days delinquent |
25,109 | 19,898 | 30,514 | 25,055 | ||||||||||||
| PCI loans, 90+ days delinquent |
12,398 | 12,110 | 12,205 | 7,535 | ||||||||||||
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| Total delinquent PCI loans |
37,507 | 32,008 | 42,719 | 32,590 | ||||||||||||
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| Total delinquent loans |
$ | 99,326 | $ | 78,153 | $ | 93,859 | $ | 78,742 | ||||||||
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| Total delinquent non-PCI loans to total non-PCI loans |
2.69 | % | 2.21 | % | 2.43 | % | 3.13 | % | ||||||||
| Total delinquent loans to gross loans |
3.82 | % | 3.26 | % | 3.84 | % | 4.88 | % | ||||||||
| Non-performing loans, excluding PCI loans |
$ | 41,611 | $ | 32,440 | $ | 31,648 | $ | 9,164 | ||||||||
| 90+ days delinquent and still accruing loans, excluding PCI loans |
— | — | — | — | ||||||||||||
| Other real estate owned |
605 | 150 | — | 1,537 | ||||||||||||
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| Non-performing assets |
42,216 | 32,590 | 31,648 | 10,701 | ||||||||||||
| ALLL to non-performing loans |
54.38 | % | 61.66 | % | 59.42 | % | 185.28 | % | ||||||||
| Non-performing loans to gross loans |
1.60 | % | 1.35 | % | 1.29 | % | 0.57 | % | ||||||||
| Non-performing assets to total assets |
0.96 | % | 0.81 | % | 0.87 | % | 0.42 | % | ||||||||
| Loan breakdown by ALLL evaluation type: |
||||||||||||||||
| Originated loans |
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| Individually evaluated for impairment |
29,763 | $ | 13,504 | $ | 16,704 | $ | 15,076 | |||||||||
| Collectively evaluated for impairment |
1,447,077 | 1,210,993 | 1,168,195 | 1,071,195 | ||||||||||||
| Acquired loans through business acquisitions - non-impaired |
||||||||||||||||
| Individually evaluated for impairment |
6,173 | 1,759 | 2,243 | 13 | ||||||||||||
| Collectively evaluated for impairment |
409,745 | 438,816 | 469,916 | 177,152 | ||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired |
404,398 | 418,501 | 449,767 | 212,952 | ||||||||||||
| Acquired with deteriorated credit quality |
305,057 | 313,422 | 339,286 | 137,958 | ||||||||||||
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| Total loans |
2,602,213 | $ | 2,396,995 | $ | 2,446,111 | $ | 1,614,346 | |||||||||
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| ALLL breakdown: |
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| Originated loans |
||||||||||||||||
| Individually evaluated for impairment |
309 | $ | 62 | $ | 96 | $ | 571 | |||||||||
| Collectively evaluated for impairment |
19,427 | 17,398 | 17,103 | 15,635 | ||||||||||||
| Acquired loans through business acquisitions - non-impaired |
||||||||||||||||
| Individually evaluated for impairment |
— | — | — | — | ||||||||||||
| Collectively evaluated for impairment |
2,570 | 2,347 | 1,410 | 469 | ||||||||||||
| Seasoned SFR mortgage loan pools - non-impaired |
— | — | — | — | ||||||||||||
| Acquired with deteriorated credit quality |
321 | 196 | 196 | 304 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total ALLL |
22,627 | $ | 20,003 | $ | 18,805 | $ | 16,979 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Discount on Purchased/Acquired Loans: |
||||||||||||||||
| Acquired loans through business acquisitions - non-impaired |
6,536 | $ | 7,479 | $ | 8,354 | $ | 3,395 | |||||||||
| Seasoned SFR mortgage loan pools - non-impaired |
33,044 | 34,619 | 38,240 | 16,237 | ||||||||||||
| Acquired with deteriorated credit quality |
84,876 | 89,302 | 105,650 | 74,460 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Discount |
124,456 | $ | 131,400 | $ | 152,244 | $ | 94,092 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Ratios: |
||||||||||||||||
| To originated loans: |
||||||||||||||||
| Individually evaluated for impairment |
1.04 | % | 0.46 | % | 0.57 | % | 3.79 | % | ||||||||
| Collectively evaluated for impairment |
1.34 | % | 1.44 | % | 1.46 | % | 1.46 | % | ||||||||
| Total ALLL |
1.34 | % | 1.43 | % | 1.45 | % | 1.49 | % | ||||||||
| To originated and acquired non-impaired loans: |
||||||||||||||||
| Individually evaluated for impairment |
0.86 | % | 0.41 | % | 0.51 | % | 3.78 | % | ||||||||
| Collectively evaluated for impairment |
1.18 | % | 1.20 | % | 1.13 | % | 1.29 | % | ||||||||
| Total ALLL |
1.18 | % | 1.19 | % | 1.12 | % | 1.32 | % | ||||||||
| Total ALLL and discount (1) |
1.52 | % | 1.64 | % | 1.63 | % | 1.59 | % | ||||||||
| To total loans: |
||||||||||||||||
| Individually evaluated for impairment |
0.86 | % | 0.41 | % | 0.51 | % | 3.78 | % | ||||||||
| Collectively evaluated for impairment |
0.97 | % | 0.95 | % | 0.89 | % | 1.10 | % | ||||||||
| Total ALLL |
0.87 | % | 0.83 | % | 0.77 | % | 1.05 | % | ||||||||
| Total ALLL and discount (1) |
5.65 | % | 6.32 | % | 6.99 | % | 6.88 | % | ||||||||
| (1) | The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans. |
- 6 -
Banc of California, Inc
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| Composition of held for investment loans and leases |
||||||||||||||||
| Commercial real estate |
$ | 535,744 | $ | 560,581 | $ | 529,883 | $ | 326,121 | ||||||||
| Multi-family |
234,179 | 155,382 | 141,580 | 122,167 | ||||||||||||
| Construction |
30,761 | 25,144 | 24,933 | 5,957 | ||||||||||||
| Commercial and industrial |
368,540 | 299,184 | 287,771 | 92,654 | ||||||||||||
| SBA |
28,684 | 26,541 | 27,428 | 33,528 | ||||||||||||
| Lease financing |
57,754 | 48,537 | 31,949 | 18,631 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total commercial loans |
1,255,662 | 1,115,369 | 1,043,544 | 599,058 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Single family residential mortgage |
1,212,813 | 1,158,863 | 1,286,541 | 995,132 | ||||||||||||
| Other consumer |
133,738 | 122,763 | 116,026 | 20,156 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total consumer loans |
1,346,551 | 1,281,626 | 1,402,567 | 1,015,288 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross loans and leases |
$ | 2,602,213 | $ | 2,396,995 | $ | 2,446,111 | $ | 1,614,346 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Composition percentage of held for investment loans and leases |
||||||||||||||||
| Commercial real estate |
20.6 | % | 23.4 | % | 21.7 | % | 20.2 | % | ||||||||
| Multi-family |
9.0 | % | 6.5 | % | 5.8 | % | 7.6 | % | ||||||||
| Construction |
1.2 | % | 1.0 | % | 1.0 | % | 0.4 | % | ||||||||
| Commercial and industrial |
14.2 | % | 12.5 | % | 11.8 | % | 5.7 | % | ||||||||
| SBA |
1.1 | % | 1.1 | % | 1.1 | % | 2.1 | % | ||||||||
| Lease financing |
2.2 | % | 2.0 | % | 1.3 | % | 1.2 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total commercial loans |
48.3 | % | 46.5 | % | 42.7 | % | 37.2 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Single family residential mortgage |
46.6 | % | 48.4 | % | 52.6 | % | 61.6 | % | ||||||||
| Other consumer |
5.1 | % | 5.1 | % | 4.7 | % | 1.2 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total consumer loans |
51.7 | % | 53.5 | % | 57.3 | % | 62.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross loans and leases |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Composition of deposits |
||||||||||||||||
| Noninterest-bearing checking |
$ | 408,404 | $ | 430,925 | $ | 429,158 | $ | 161,914 | ||||||||
| Interest-bearing checking |
688,699 | 644,649 | 539,098 | 324,012 | ||||||||||||
| Money market |
618,231 | 502,368 | 518,696 | 258,635 | ||||||||||||
| Savings |
985,028 | 986,201 | 963,536 | 842,487 | ||||||||||||
| Certificates of deposit |
646,993 | 545,003 | 468,156 | 522,783 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total deposits |
$ | 3,347,355 | $ | 3,109,146 | $ | 2,918,644 | $ | 2,109,831 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Composition percentage of deposits |
||||||||||||||||
| Noninterest-bearing checking |
12.2 | % | 13.9 | % | 14.7 | % | 7.7 | % | ||||||||
| Interest-bearing checking |
20.6 | % | 20.7 | % | 18.5 | % | 15.4 | % | ||||||||
| Money market |
18.5 | % | 16.2 | % | 17.8 | % | 12.3 | % | ||||||||
| Savings |
29.4 | % | 31.7 | % | 33.0 | % | 39.8 | % | ||||||||
| Certificates of deposit |
19.3 | % | 17.5 | % | 16.0 | % | 24.8 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total deposits |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 7 -
Banc of California, Inc
Average Balance, Average Yield Earned, and Average Cost Paid
(Dollars in thousands)
(Unaudited)
| Three months ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2014 | March 31, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||||||
| Average | Yield | Average | Yield | Average | Yield | |||||||||||||||||||||||||||||||
| Balance | Interest | / Cost | Balance | Interest | / Cost | Balance | Interest | / Cost | ||||||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||||||||||||||
| Gross loans and leases |
$ | 3,553,693 | $ | 42,077 | 4.75 | % | $ | 3,289,689 | $ | 41,530 | 5.12 | % | $ | 1,843,645 | $ | 26,153 | 5.69 | % | ||||||||||||||||||
| Securities |
168,230 | 993 | 2.37 | % | 163,007 | 924 | 2.30 | % | 102,880 | 369 | 1.44 | % | ||||||||||||||||||||||||
| Other interest-earning assets |
136,849 | 564 | 1.65 | % | 115,396 | 322 | 1.13 | % | 258,049 | 219 | 0.34 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total interest-earning assets |
3,858,772 | 43,634 | 4.54 | % | 3,568,092 | 42,776 | 4.86 | % | 2,204,574 | 26,741 | 4.87 | % | ||||||||||||||||||||||||
| Allowance for loan and lease losses |
(20,567 | ) | (19,392 | ) | (16,546 | ) | ||||||||||||||||||||||||||||||
| BOLI and non-interest earning assets |
196,242 | 179,470 | 113,354 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total assets |
$ | 4,034,447 | $ | 3,728,170 | $ | 2,301,382 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||||||
| Savings |
990,894 | 2,425 | 0.98 | % | 966,361 | 2,516 | 1.06 | % | $ | 567,313 | 536 | 0.38 | % | |||||||||||||||||||||||
| Interest-bearing checking |
660,341 | 1,864 | 1.13 | % | 593,126 | 1,715 | 1.17 | % | 265,974 | 551 | 0.83 | % | ||||||||||||||||||||||||
| Money market |
603,917 | 639 | 0.42 | % | 515,131 | 572 | 0.45 | % | 371,989 | 1,140 | 1.23 | % | ||||||||||||||||||||||||
| Certificates of deposit |
600,498 | 1,143 | 0.76 | % | 518,266 | 932 | 0.73 | % | 574,158 | 1,076 | 0.75 | % | ||||||||||||||||||||||||
| FHLB advances |
226,429 | 99 | 0.18 | % | 259,611 | 100 | 0.16 | % | 45,165 | 58 | 0.52 | % | ||||||||||||||||||||||||
| Long-term debt and other interest-bearing liabilities |
93,345 | 1,889 | 8.12 | % | 91,020 | 1,756 | 7.82 | % | 84,424 | 1,755 | 8.34 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total interest-bearing liabilities |
3,175,424 | 8,059 | 1.02 | % | 2,943,515 | 7,591 | 1.05 | % | 1,909,023 | 5,116 | 1.07 | % | ||||||||||||||||||||||||
| Noninterest-bearing deposits |
428,221 | 416,074 | 158,730 | |||||||||||||||||||||||||||||||||
| Non-interest-bearing liabilities |
45,704 | 38,964 | 29,756 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total liabilities |
3,649,349 | 3,398,553 | 2,097,509 | |||||||||||||||||||||||||||||||||
| Total shareholders’ equity |
385,098 | 329,617 | 203,873 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 4,034,447 | $ | 3,728,170 | $ | 2,301,382 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Net interest income/spread |
$ | 35,575 | 3.52 | % | $ | 35,185 | 3.81 | % | $ | 21,625 | 3.80 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Net interest margin |
3.70 | % | 4.00 | % | 3.93 | % | ||||||||||||||||||||||||||||||
- 8 -
Banc of California, Inc
Average Balance, Average Yield Earned, and Average Cost Paid, Continued
(Dollars in thousands)
(Unaudited)
| Six months ended June 30, | ||||||||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest | / Cost | Balance | Interest | / Cost | |||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Gross loans and leases |
$ | 3,422,420 | $ | 83,607 | 4.93 | % | $ | 1,630,552 | $ | 44,690 | 5.53 | % | ||||||||||||
| Securities |
165,633 | 1,917 | 2.33 | % | 109,955 | 867 | 1.59 | % | ||||||||||||||||
| Other interest-earning assets |
126,182 | 886 | 1.42 | % | 204,022 | 352 | 0.35 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-earning assets |
3,714,235 | 86,410 | 4.69 | % | 1,944,529 | 45,909 | 4.76 | % | ||||||||||||||||
| Allowance for loan and lease losses |
(19,983 | ) | (15,898 | ) | ||||||||||||||||||||
| BOLI and non-interest earning assets |
187,902 | 99,059 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 3,882,154 | $ | 2,027,690 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Savings |
978,695 | 4,942 | 1.02 | % | 401,258 | 861 | 0.43 | % | ||||||||||||||||
| Interest-bearing checking |
626,919 | 3,515 | 1.13 | % | 195,158 | 718 | 0.74 | % | ||||||||||||||||
| Money market |
559,769 | 1,275 | 0.46 | % | 334,061 | 1,496 | 0.90 | % | ||||||||||||||||
| Certificates of deposit |
559,609 | 2074 | 0.75 | % | 593,096 | 2,227 | 0.76 | % | ||||||||||||||||
| FHLB advances |
242,928 | 199 | 0.17 | % | 50,044 | 121 | 0.49 | % | ||||||||||||||||
| Long-term debt and other interest-bearing liabilities |
92,189 | 3,645 | 7.97 | % | 85,075 | 3,502 | 8.30 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing liabilities |
3,060,109 | 15,650 | 1.03 | % | 1,658,692 | 8,925 | 1.09 | % | ||||||||||||||||
| Noninterest-bearing deposits |
422,181 | 150,684 | ||||||||||||||||||||||
| Non-interest-bearing liabilities |
42,353 | 20,393 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities |
3,524,643 | 1,829,769 | ||||||||||||||||||||||
| Total shareholders’ equity |
357,511 | 197,921 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 3,882,154 | $ | 2,027,690 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest income/spread |
$ | 70,760 | 3.66 | % | $ | 36,984 | 3.67 | % | ||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Net interest margin |
3.84 | % | 3.84 | % | ||||||||||||||||||||
- 9 -
Banc of California, Inc
Capital Ratios and Non-GAAP Measures
(Dollars in thousands, except per share data)
(Unaudited)
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| Capital Ratios: |
||||||||||||||||
| Banc of California, Inc. |
||||||||||||||||
| Total risk-based capital ratio: |
15.19 | % | 11.93 | % | 12.45 | % | 19.34 | % | ||||||||
| Tier 1 risk-based capital ratio: |
14.10 | % | 10.86 | % | 11.41 | % | 18.08 | % | ||||||||
| Tier 1 leverage ratio: |
9.89 | % | 7.59 | % | 8.02 | % | 11.16 | % | ||||||||
| Banc of California, NA (1) |
||||||||||||||||
| Total risk-based capital ratio: |
14.88 | % | 14.52 | % | 14.65 | % | 19.78 | % | ||||||||
| Tier 1 risk-based capital ratio: |
13.79 | % | 13.45 | % | 13.60 | % | 18.52 | % | ||||||||
| Tier 1 leverage ratio: |
9.72 | % | 9.41 | % | 9.58 | % | 10.03 | % | ||||||||
| The Private Bank of California (1) |
||||||||||||||||
| Total risk-based capital ratio: |
N/A | N/A | N/A | 16.79 | % | |||||||||||
| Tier 1 risk-based capital ratio: |
N/A | N/A | N/A | 15.88 | % | |||||||||||
| Tier 1 leverage ratio: |
N/A | N/A | N/A | 11.94 | % | |||||||||||
| (1) | On October 11, 2013, The Private Bank of California was merged with the Company’s other wholly owned banking subsidiary, Banc of California, NA. |
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:
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| Tangible common equity to tangible assets ratio |
||||||||||||||||
| Total assets |
$ | 4,386,522 | $ | 4,030,634 | $ | 3,628,023 | $ | 2,535,114 | ||||||||
| Less goodwill |
(32,150 | ) | (32,868 | ) | (30,143 | ) | (7,048 | ) | ||||||||
| Less other intangible assets |
(10,959 | ) | (11,213 | ) | (12,152 | ) | (4,740 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Tangible assets |
$ | 4,343,413 | $ | 3,986,553 | $ | 3,585,728 | $ | 2,523,326 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total shareholders’ equity |
$ | 439,318 | $ | 325,326 | $ | 324,869 | $ | 268,485 | ||||||||
| Less preferred stock |
(79,877 | ) | (79,877 | ) | (79,877 | ) | (65,668 | ) | ||||||||
| Less goodwill |
(32,150 | ) | (32,868 | ) | (30,143 | ) | (7,048 | ) | ||||||||
| Less other intangible assets |
(10,959 | ) | (11,213 | ) | (12,152 | ) | (4,740 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Tangible common equity |
316,332 | 201,368 | 202,697 | 191,029 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total shareholders’ equity to total assets |
10.02 | % | 8.07 | % | 8.95 | % | 10.59 | % | ||||||||
| Tangible common equity to tangible assets |
7.28 | % | 5.05 | % | 5.65 | % | 7.57 | % | ||||||||
| Common stock outstanding |
27,032,464 | 19,666,469 | 19,561,469 | 14,976,979 | ||||||||||||
| Class B non-voting non-convertible common stock outstanding |
596,018 | 590,068 | 584,674 | 574,258 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total common stock outstanding |
27,628,482 | 20,256,537 | 20,146,143 | 15,551,237 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Tangible common equity per common stock |
$ | 11.45 | $ | 9.94 | $ | 10.06 | $ | 12.28 | ||||||||
| Book value per common stock |
$ | 13.01 | $ | 12.12 | $ | 12.16 | $ | 13.04 | ||||||||
- 10 -
| Three months ended | Six months ended | |||||||||||||||||||
| June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
June 30, 2014 |
June 30, 2013 |
||||||||||||||||
| Return on tangible common equity |
||||||||||||||||||||
| Average total shareholders’ equity |
$ | 385,098 | $ | 329,617 | $ | 203,873 | $ | 357,511 | $ | 197,921 | ||||||||||
| Less average preferred stock |
(79,877 | ) | (79,877 | ) | (32,226 | ) | (79,877 | ) | (32,081 | ) | ||||||||||
| Less average goodwill |
(33,020 | ) | (30,923 | ) | (7,048 | ) | (31,978 | ) | (7,048 | ) | ||||||||||
| Less average other intangible assets |
(10,871 | ) | (11,832 | ) | (4,957 | ) | (11,349 | ) | (5,152 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Average tangible common equity |
$ | 261,329 | $ | 206,984 | $ | 159,643 | $ | 234,307 | $ | 153,641 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income |
$ | 8,121 | $ | 757 | $ | 4,363 | $ | 8,878 | $ | 5,292 | ||||||||||
| Less preferred stock dividends |
(910 | ) | (910 | ) | — | (1,820 | ) | (288 | ) | |||||||||||
| Add tax-effected amortization of intangible assets (1) |
614 | 610 | 239 | 1,224 | 477 | |||||||||||||||
|
|
|
|
|
|
|
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| Net income (loss) available to common shareholders |
$ | 7,825 | $ | 457 | $ | 4,602 | $ | 8,282 | $ | 5,481 | ||||||||||
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| (1) Utilized a 35% effective tax rate |
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| Return on average equity |
8.46 | % | 0.93 | % | 8.58 | % | 5.01 | % | 5.39 | % | ||||||||||
| Return on average tangible common equity |
12.01 | % | 0.90 | % | 11.56 | % | 7.13 | % | 7.19 | % | ||||||||||
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