Banc of California Reports Record Third Quarter Earnings

Mittwoch, 19.10.2016 12:05 von

PR Newswire

IRVINE, Calif., Oct. 19, 2016 /PRNewswire/ -- Banc of California, Inc. (NYSE: BANC) today reported record quarterly net income of $35.9 million for the third quarter of 2016, resulting in earnings per share of $0.59 for the quarter, fully diluted.  Third quarter net income increased 147% compared to the third quarter of 2015. Net income available to common shareholders for the third quarter was $30.8 million, an increase of 168% compared to the third quarter of 2015.

Highlights for the quarter included:

  • Record quarterly deposit growth of $1.1 billion, or 15%, and annual deposit growth of $3.7 billion, or 67%.
  • Quarterly loan production of $2.6 billion, driven by quarterly commercial banking segment loan and lease originations of $1.1 billion, an increase of 44% from a year ago.
  • Held for investment loan growth of $333 million for the third quarter, an increase of $1.8 billion, or 39% from a year ago
  • The Company's return on average assets for the quarter was 1.3% and its return on average tangible common equity for the quarter was 19.5%.

The Company finished the quarter with consolidated assets totaling $11.2 billion, an increase of $1.1 billion, or 10%, compared to the prior quarter, and an increase of $4.0 billion, or 55%, compared to a year ago.

"Our third quarter financial performance showcases the strong credit discipline and growing earnings power of our franchise," said Steven Sugarman, Chairman and Chief Executive Officer of Banc of California. "We remain focused on ensuring that as we grow, we maintain the controls, culture and values that are making Banc of California great. We continue to see meaningful opportunities to capture market share by empowering California through its diverse businesses, entrepreneurs and communities."

During the quarter, Banc of California grew its recurring net interest income by $5.9 million, or 7% from the prior quarter, grew total deposits by $1.1 billion, increased held for investment loans by $333 million, or 5% from the prior quarter and reduced FHLB borrowings by $160 million or 17% from the prior quarter.

"We continue to see growth in assets, deposits and loans across our business units.  Our consistent progress has now resulted in our franchise meeting or exceeding all of our stated financial targets for 2016, including return on tangible common equity over 15% and return on assets over 1%," said Francisco Turner, Chief Strategy Officer of Banc of California.

"We have built and strengthened our balance sheet and liquidity position, supported by the strong deposit inflows we continued to experience in the third quarter," said James McKinney, Chief Financial Officer of Banc of California.  "We maintain a strong capital position and have implemented numerous sources of contingent capital including our increased holding company line of credit.  As of the end of the third quarter, we now maintain over $7 billion of contingent liquidity to support Banc of California's balance sheet and to adequately serve all of the diverse needs of our clients.  I could not be prouder of the success we have made in ensuring a strong and durable balance sheet with the best possible liquidity to withstand diverse market conditions."

The Company also announced that it has accelerated the date of its conference call to discuss third quarter financial results to Wednesday, October 19, 2016 at 7:00 a.m. Pacific Time (PT). Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 8186667. 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 businesses, entrepreneurs and communities. 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)








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

ASSETS






Cash and cash equivalents

$        372,603

$      271,732

$    215,012

$      156,124

$        378,963

Time deposits in financial institutions

1,500

1,500

1,500

1,500

1,900

Securities available for sale

1,941,588

1,302,785

1,663,711

833,596

693,219

Securities held to maturity

962,315

962,282

962,262

962,203

529,532

Loans held for sale

846,844

893,782

863,944

668,841

596,565

Loans and leases receivable

6,568,791

6,236,115

5,463,068

5,184,394

4,730,077

Allowance for loan and lease losses

(40,233)

(37,483)

(35,845)

(35,533)

(34,774)

Federal Home Loan Bank and other bank stock

69,190

81,115

61,146

59,069

40,643

Servicing rights, net

63,843

53,650

49,406

50,727

41,646

Other real estate owned, net

275

429

325

1,097

34

Premises and equipment, net

133,228

120,755

114,668

111,539

34,689

Goodwill

39,244

39,244

39,244

39,244

39,244

Other intangible assets, net

15,335

16,514

17,836

19,158

20,504

Deferred income tax

408

7,270

7,441

11,341

13,388

Income tax receivable

12,487

5,904

-

604

2,649

Bank-owned life insurance investment

101,909

101,314

100,734

100,171

99,570

Other assets

127,077

100,754

92,520

71,480

68,961

Total assets 

$  11,216,404

$ 10,157,662

$ 9,616,972

$   8,235,555

$     7,256,810







LIABILITIES AND STOCKHOLDERS' EQUITY






Deposits






Noninterest-bearing deposits

$     1,267,363

$   1,093,686

$ 1,398,728

$   1,121,124

$     1,011,169

Interest-bearing deposits

7,810,956

6,835,270

5,438,873

5,181,961

4,410,821

Total deposits

9,078,319

7,928,956

6,837,601

6,303,085

5,421,990

Advances from Federal Home Loan Bank

770,000

930,000

1,195,000

930,000

830,000

Securities sold under repurchase agreements

-

-

257,100

-

-

Other borrowings

49,903

-

-

-

-

Notes payable, net

176,579

177,743

260,896

261,876

262,779

Reserve for loss on repurchased loans

11,369

10,438

9,781

9,700

9,098

Income taxes payable

908

-

12,303

1,241

5,939

Accrued expenses and other liabilities

157,902

170,641

176,761

77,248

83,470

Total liabilities

10,244,980

9,217,778

8,749,442

7,583,150

6,613,276

Commitments and contingent liabilities












Preferred stock, Series A, non-cumulative perpetual

-

-

31,934

31,934

31,934

Preferred stock, Series B, non-cumulative perpetual

-

-

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

110,873

110,873

Preferred stock, Series E, 7.00% non-cumulative perpetual

120,255

120,255

120,258

-

-

Common stock

536

510

454

395

393

Common stock, class B non-voting non-convertible

2

2

1

1

-

Additional paid-in capital

611,069

608,303

509,123

429,790

427,599

Retained earnings

112,751

88,385

73,179

63,534

52,277

Treasury stock

(29,070)

(29,070)

(29,070)

(29,070)

(29,070)

Accumulated other comprehensive income/(loss), net

7,065

2,683

2,835

(2,995)

1,585

Total stockholders' equity

971,424

939,884

867,530

652,405

643,534

Total liabilities and stockholders' equity 

$   11,216,404

$ 10,157,662

$ 9,616,972

$   8,235,555

$     7,256,810



Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)










Three Months Ended

Nine Months Ended


September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,


2016

2016

2016

2015

2015

2016

2015

Interest and dividend income








Loans, including fees

$          80,370

$        73,743

$      67,144

$        62,248

$          60,454

$        221,257

$        179,308

Securities

19,934

19,393

16,047

11,163

5,054

55,374

9,100

Dividends and other interest-earning assets

1,931

1,504

1,049

788

1,007

4,484

3,731

Total interest and dividend income

102,235

94,640

84,240

74,199

66,515

281,115

192,139

Interest expense








Deposits

11,224

8,385

8,107

6,862

6,395

27,716

18,921

Federal Home Loan Bank advances

1,413

1,966

1,262

890

587

4,641

1,230

Securities sold under repurchase agreements

48

389

160

15

3

597

3

Notes payable and other interest-bearing liabilities

2,589

2,863

4,294

4,366

3,980

9,746

10,334

Total interest expense

15,274

13,603

13,823

12,133

10,965

42,700

30,488

Net interest income

86,961

81,037

70,417

62,066

55,550

238,415

161,651

Provision for loan and lease losses

2,592

1,769

321

1,260

735

4,682

6,209

Net interest income after provision for loan and lease losses

84,369

79,268

70,096

60,806

54,815

233,733

155,442

Noninterest income








Customer service fees

1,566

1,173

848

957

1,118

3,587

3,100

Loan servicing (loss) income

2,096

(3,347)

(5,288)

3,663

(2,254)

(6,539)

(689)

Net gain on sale of securities available for sale

487

12,824

16,789

1,510

1,750

30,100

1,748

Net gain on sale of loans

11,063

2,147

2,195

15,164

9,737

15,405

22,047

Mortgage banking income

50,159

43,795

33,684

30,334

37,015

127,638

114,351

Advisory service fees

-

510

997

1,942

2,294

1,507

7,926

Loan brokerage income

1,384

759

874

678

660

3,017

2,462

Gain on sale of building

-

-

-

-

-

-

9,919

All other income

7,875

7,743

1,860

2,571

407

17,478

2,536

Total noninterest income

74,630

65,604

51,959

56,819

50,727

192,193

163,400

Noninterest expense








Salaries and employee benefits

68,033

61,022

57,183

54,008

53,215

186,238

159,106

Occupancy and equipment

12,728

11,943

11,740

11,200

10,109

36,411

30,205

Professional fees

6,732

6,763

6,212

4,808

5,261

19,707

15,385

Data processing

2,837

2,838

2,194

2,104

2,170

7,869

6,080

Loss on investments in alternative energy partnerships, net

17,660

-

-

-

-

17,660

-

Amortization of intangible assets

1,179

1,322

1,322

1,346

1,401

3,823

4,490

All other expenses

15,093

16,187

10,449

13,193

9,587

41,729

30,276

Total noninterest expense

124,262

100,075

89,100

86,659

81,743

313,437

245,542

Income before income taxes

34,737

44,797

32,955

30,966

23,799

112,489

73,300

Income tax (benefit) expense

(1,200)

18,269

13,268

11,928

9,263

30,337

30,266

Net income

35,937

26,528

19,687

19,038

14,536

82,152

43,034

Preferred stock dividends

5,112

5,114

4,575

3,030

3,040

14,801

6,793

Net income available to common stockholders

$          30,825

$        21,414

$      15,112

$        16,008

$          11,496

$          67,351

$          36,241









Basic earnings per total common share

$              0.60

$            0.44

$          0.36

$            0.40

$              0.29

$              1.42

$              0.95

Diluted earnings per total common share

$              0.59

$            0.43

$          0.36

$            0.39

$              0.29

$              1.40

$              0.93



Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)










Three Months Ended

Nine Months Ended


September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,


2016

2016

2016

2015

2015

2016

2015

Average balances








Total assets

$   10,860,257

$ 10,061,237

$ 8,833,176

$   7,590,781

$     6,681,590

$     9,921,657

$     6,291,536

Total gross loans and leases

7,245,472

6,663,340

5,995,436

5,531,539

5,271,293

6,636,978

5,222,290

Investment Securities

2,776,304

2,696,524

2,128,882

1,506,626

828,326

2,534,788

530,124

Total interest earning assets

10,432,247

9,619,937

8,344,167

7,264,341

6,449,862

9,468,979

6,046,305

Total interest-bearing deposits

7,164,061

5,696,893

5,332,032

4,685,145

4,314,330

6,068,343

4,160,352

Total borrowings

1,297,382

2,067,234

1,309,710

1,141,554

745,959

1,557,157

655,726

Total interest bearing liabilities

8,461,443

7,764,127

6,641,742

5,826,699

5,060,289

7,625,500

4,816,078

Total stockholders' equity

968,684

898,164

762,923

654,106

645,713

876,922

598,335

Profitability and other ratios








Return on average assets(1)

1.32%

1.06%

0.90%

1.00%

0.86%

1.11%

0.91%

Return on average equity (1)

14.76%

11.88%

10.38%

11.55%

8.93%

12.51%

9.62%

Return on average tangible common equity(2)

19.51%

15.65%

14.46%

16.57%

12.25%

16.84%

13.40%

Dividend payout ratio (3)

20.00%

27.27%

33.33%

30.00%

41.38%

25.35%

37.89%

Net interest spread

3.18%

3.26%

3.22%

3.22%

3.23%

3.22%

3.40%

Net interest margin(1)

3.32%

3.39%

3.39%

3.39%

3.42%

3.36%

3.57%

Noninterest income to total revenue (4)

46.18%

44.74%

42.46%

47.79%

47.73%

44.63%

50.27%

Noninterest income to average total assets(1)

2.73%

2.62%

2.37%

2.97%

3.01%

2.59%

3.47%

Noninterest expense to average total assets(1)

4.55%

4.00%

4.06%

4.53%

4.85%

4.22%

5.22%

Efficiency ratio(5)

76.90%

68.24%

72.81%

72.89%

76.92%

72.79%

75.54%

Adjusted efficiency ratio for including the pre-tax effect of investments in alternative energy partnerships (2) , (5)

62.38%

68.24%

72.81%

72.89%

76.92%

67.23%

75.54%

Average held for investment loans and leases to average deposits

75.92%

82.88%

79.76%

86.88%

86.03%

79.27%

82.63%

Average investment securities to average total assets

25.56%

26.80%

24.10%

19.85%

12.40%

25.55%

8.43%

Average stockholders' equity to average total assets

8.92%

8.93%

8.64%

8.62%

9.66%

8.84%

9.51%

Allowance for loan and lease losses (ALLL)








Balance at beginning of period

$          37,483

$        35,845

$      35,533

$        34,774

$          34,787

$          35,533

$          29,480

Loans and leases charged off

(393)

(772)

(102)

(718)

(788)

(1,267)

(1,224)

Recoveries

551

641

93

217

40

1,285

309

Provision for loan and lease losses

2,592

1,769

321

1,260

735

4,682

6,209

Balance at end of period

$          40,233

$        37,483

$      35,845

$        35,533

$          34,774

$          40,233

$          34,774

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

-0.01%

0.01%

0.00%

0.04%

0.07%

-0.01%

0.03%

Reserve for loss on repurchased loans








Balance at beginning of period

$          10,438

$          9,781

$        9,700

$          9,098

$            9,411

$            9,700

$            8,303

Provision for loan repurchases

1,241

851

379

735

716

2,471

3,617

Change in estimates

-

-

-

846

-

-

-

Utilization of reserve for loan repurchases

(310)

(194)

(298)

(979)

(1,029)

(802)

(2,822)

Balance at end of period

$          11,369

$        10,438

$        9,781

$          9,700

$            9,098

$          11,369

$            9,098









(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)








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

Asset quality information and ratios






30 to 89 days delinquent, excluding PCI loans

$          39,054

$        50,494

$      36,022

$        39,946

$          48,550

90+ days delinquent, excluding PCI loans

22,827

28,675

27,469

23,338

23,725

Total delinquent loans, excluding PCI loans

61,881

79,169

63,491

63,284

72,275

PCI loans, 30 to 89 days delinquent

39,113

48,255

44,191

40,291

17,593

PCI loans, 90+ days delinquent

6,145

8,952

9,806

6,894

6,223

Total delinquent PCI loans

45,258

57,207

53,997

47,185

23,816

Total delinquent loans

$        107,139

$      136,376

$    117,488

$      110,469

$          96,091

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

1.04%

1.44%

1.33%

1.42%

1.66%

Total delinquent loans to gross loans

1.63%

2.19%

2.15%

2.13%

2.03%







Non-performing loans, excluding PCI loans

$          35,223

$        45,012

$      44,216

$        45,129

$          45,188

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

-

-

-

-

-

Other real estate owned

275

429

325

1,097

34

Non-performing assets

$          35,498

$        45,441

$      44,541

$        46,226

$          45,222

ALLL to non-performing loans

114.22%

83.27%

81.07%

78.74%

76.95%

Non-performing loans to gross loans

0.54%

0.72%

0.81%

0.87%

0.96%

Non-performing assets to total assets

0.32%

0.45%

0.46%

0.56%

0.62%







Troubled Debt Restructings (TDRs)






Performing TDRs

$          11,160

$        14,450

$      15,128

$          7,842

$            9,378

Non-performing TDRs

520

2,864

2,545

1,970

2,017

Total TDRs

$          11,680

$        17,314

$      17,673

$          9,812

$          11,395



Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

Loan and lease breakdown by ALLL evaluation type






Originated loans and leases






Individually evaluated for impairment

$          22,306

$        25,661

$      26,565

$        30,654

$          31,008

Collectively evaluated for impairment

4,789,155

4,254,975

3,484,995

3,117,528

2,776,601

Acquired loans not impaired at acquisition






Individually evaluated for impairment

3,397

3,470

3,530

3,629

1,704

Collectively evaluated for impairment

958,135

1,022,696

1,079,711

1,124,874

1,174,573

Seasoned SFR mortgage loan pools - non-impaired






Individually evaluated for impairment

6,581

9,717

9,287

-

-

Collectively evaluated for impairment

146,850

168,352

175,004

194,978

373,634

Acquired with deteriorated credit quality

642,367

751,244

683,976

712,731

372,557

Total loans

$     6,568,791

$   6,236,115

$ 5,463,068

$   5,184,394

$     4,730,077

ALLL breakdown






Originated loans and leases






Individually evaluated for impairment

$               137

$             215

$           365

$             369

$               512

Collectively evaluated for impairment

37,858

34,575

32,202

32,713

31,419

Acquired loans not impaired at acquisition






Individually evaluated for impairment

-

-

-

-

-

Collectively evaluated for impairment

1,606

1,458

2,061

2,245

2,637

Seasoned SFR mortgage loan pools - non-impaired






Individually evaluated for impairment

528

1,131

1,011

-

-

Collectively evaluated for impairment

-

-

-

-

-

Acquired with deteriorated credit quality

104

104

206

206

206

Total ALLL

$          40,233

$        37,483

$      35,845

$        35,533

$          34,774

Discount on Purchased/Acquired Loans






Acquired loans not impaired at acquisition

$          18,400

$        20,136

$      20,781

$        21,366

$          21,759

Seasoned SFR mortgage loan pools - non-impaired

9,789

11,304

11,862

12,545

27,699

Acquired with deteriorated credit quality

57,780

76,505

66,573

68,372

41,280

Total Discount

$          85,969

$      107,945

$      99,216

$      102,283

$          90,738

Ratios






To originated loans and leases:






Individually evaluated for impairment

0.61%

0.84%

1.37%

1.20%

1.65%

Collectively evaluated for impairment

0.79%

0.81%

0.92%

1.05%

1.13%

Total ALLL

0.79%

0.81%

0.93%

1.05%

1.14%

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






Individually evaluated for impairment

0.53%

0.74%

1.21%

1.08%

1.57%

Collectively evaluated for impairment

0.69%

0.68%

0.75%

0.82%

0.86%

Total ALLL

0.69%

0.68%

0.75%

0.83%

0.87%

Total ALLL and discount (1)

1.00%

1.06%

1.21%

1.33%

1.41%

To total loans and leases:






Individually evaluated for impairment

2.06%

3.46%

3.49%

1.08%

1.57%

Collectively evaluated for impairment

0.67%

0.66%

0.72%

0.79%

0.79%

Total ALLL

0.61%

0.60%

0.66%

0.69%

0.74%

Total ALLL and discount (1)

1.92%

2.33%

2.47%

2.66%

2.65%







(1) The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans.



Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

Composition of held for investment loans and leases






Commercial real estate

$        721,838

$      725,107

$    713,693

$      727,707

$        690,862

Multi-family

1,199,207

1,147,597

1,021,097

904,300

823,415

Construction

99,086

86,852

68,241

55,289

39,475

Commercial and industrial

1,531,041

1,306,866

983,961

876,999

822,690

SBA

67,737

65,477

71,640

57,706

52,985

Lease financing

234,540

228,663

212,836

192,424

162,504

Total commercial loans

3,853,449

3,560,562

3,071,468

2,814,425

2,591,931

Single family residential mortgage

2,601,375

2,555,344

2,282,445

2,255,584

2,013,450

Other consumer

113,967

120,209

109,155

114,385

124,696

Total consumer loans

2,715,342

2,675,553

2,391,600

2,369,969

2,138,146

Total gross loans and leases

$     6,568,791

$   6,236,115

$ 5,463,068

$   5,184,394

$     4,730,077

Composition percentage of held for investment loans
     and leases






Commercial real estate

11.0%

11.6%

13.1%

14.0%

14.6%

Multi-family

18.3%

18.4%

18.7%

17.4%

17.4%

Construction

1.5%

1.4%

1.2%

1.1%

0.8%

Commercial and industrial

23.3%

21.0%

18.0%

16.9%

17.4%

SBA

1.0%

1.0%

1.3%

1.1%

1.1%

Lease financing

3.6%

3.7%

3.9%

3.7%

3.4%

Total commercial loans

58.7%

57.1%

56.2%

54.2%

54.7%

Single family residential mortgage

39.6%

41.0%

41.8%

43.6%

42.7%

Other consumer

1.7%

1.9%

2.0%

2.2%

2.6%

Total consumer loans

41.3%

42.9%

43.8%

45.8%

45.3%

Total gross loans and leases

100.0%

100.0%

100.0%

100.0%

100.0%

Composition of deposits






Noninterest-bearing checking

$     1,267,363

$   1,093,686

$ 1,398,728

$   1,121,124

$     1,011,169

Interest-bearing checking

2,369,332

2,053,656

2,052,507

1,697,055

1,458,208

Money market

2,900,248

2,343,561

1,534,492

1,479,931

1,238,180

Savings

880,712

909,242

844,177

823,618

814,230

Certificates of deposit

1,660,664

1,528,811

1,007,697

1,181,357

900,203

Total deposits

$     9,078,319

$   7,928,956

$ 6,837,601

$   6,303,085

$     5,421,990

Composition percentage of deposits






Noninterest-bearing checking

14.0%

13.8%

20.5%

17.8%

18.6%

Interest-bearing checking

26.1%

25.9%

30.0%

26.8%

26.9%

Money market

31.9%

29.5%

22.4%

23.5%

22.8%

Savings

9.7%

11.5%

12.3%

13.1%

15.0%

Certificates of deposit

18.3%

19.3%

14.8%

18.8%

16.7%

Total deposits

100.0%

100.0%

100.0%

100.0%

100.0%



Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid 

(Dollars in thousands)

(Unaudited)












Three Months Ended


September 30, 2016

June 30, 2016

March 31, 2016


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

$   2,618,879

$   24,365

3.70%

$   2,428,168

$   22,488

3.72%

$ 2,144,834

$ 19,808

3.71%

Seasoned SFR mortgage loan pools

907,387

11,924

5.23%

878,068

12,404

5.68%

876,142

12,710

5.83%

Commercial real estate, multi-family, and construction

2,033,718

23,097

4.52%

1,907,649

21,049

4.44%

1,760,646

19,816

4.53%

Commercial and industrial, SBA, and lease financing

1,576,379

19,734

4.98%

1,343,961

16,642

4.98%

1,105,971

13,665

4.97%

Other consumer

109,109

1,250

4.56%

105,494

1,160

4.42%

107,843

1,145

4.27%

Gross loans and leases

7,245,472

80,370

4.41%

6,663,340

73,743

4.45%

5,995,436

67,144

4.50%

Securities

2,776,304

19,934

2.86%

2,696,524

19,393

2.89%

2,128,882

16,047

3.03%

Other interest-earning assets

410,471

1,931

1.87%

260,073

1,504

2.33%

219,849

1,049

1.92%

Total interest-earning assets

10,432,247

102,235

3.90%

9,619,937

94,640

3.96%

8,344,167

84,240

4.06%

Allowance for loan and lease losses

(38,258)



(37,637)



(35,575)



BOLI and non-interest earning assets

466,268



478,937



524,584



Total assets

$ 10,860,257



$ 10,061,237



$ 8,833,176













Interest-bearing liabilities










Savings

$      887,973

$     1,704

0.76%

$      866,051

$     1,603

0.74%

$    834,965

$   1,572

0.76%

Interest-bearing checking

2,300,128

3,972

0.69%

1,981,702

3,135

0.64%

1,900,834

3,244

0.69%

Money market

2,427,356

3,226

0.53%

1,672,662

1,962

0.47%

1,437,332

1,679

0.47%

Certificates of deposit

1,548,604

2,322

0.60%

1,176,478

1,685

0.58%

1,158,901

1,612

0.56%

Total interest-bearing deposits

7,164,061

11,224

0.62%

5,696,893

8,385

0.59%

5,332,032

8,107

0.61%

FHLB advances

1,104,663

1,413

0.51%

1,663,791

1,966

0.48%

955,659

1,262

0.53%

Securities sold under repurchase agreements

12,539

48

1.52%

210,299

389

0.74%

90,395

160

0.71%

Long-term debt and other interest-bearing liabilities

180,180

2,589

5.72%

193,144

2,863

5.96%

263,656

4,294

6.55%

Total interest-bearing liabilities

8,461,443

15,274

0.72%

7,764,127

13,603

0.70%

6,641,742

13,823

0.84%

Noninterest-bearing deposits

1,178,849



1,205,987



1,230,991



Non-interest-bearing liabilities

251,281



192,959



197,520



Total liabilities

9,891,573



9,163,073



8,070,253



Total stockholders' equity

968,684



898,164



762,923



Total liabilities and stockholders' equity

$ 10,860,257



$ 10,061,237



$ 8,833,176













Net interest income/spread


$   86,961

3.18%


$   81,037

3.26%


$ 70,417

3.22%











Net interest margin



3.32%



3.39%



3.39%











Ratio of interest-earning assets to interest-bearing liabilities

123.29%



123.90%



125.63%













Total deposits

$   8,342,910

$   11,224

0.54%

$   6,902,880

$     8,385

0.49%

$ 6,563,023

$   8,107

0.50%

Total funding (1)

$   9,640,292

$   15,274

0.63%

$   8,970,114

$   13,603

0.61%

$ 7,872,733

$ 13,823

0.71%











(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.












Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)









Three Months Ended


December 31, 2015

September 30, 2015


Average


Yield 

Average


Yield 


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%

Seasoned SFR mortgage loan pools

858,601

12,098

5.59%

689,666

10,901

6.27%

Commercial real estate, multi-family, and construction

1,638,329

19,006

4.60%

1,568,975

17,643

4.46%

Commercial and industrial, SBA, and lease financing

1,020,306

12,754

4.96%

914,811

12,125

5.26%

Other consumer

110,972

806

2.88%

131,468

1,662

5.02%

Gross loans and leases

5,531,539

62,248

4.46%

5,271,293

60,454

4.55%

Securities

1,506,626

11,163

2.94%

828,326

5,054

2.42%

Other interest-earning assets

226,176

788

1.38%

350,243

1,007

1.14%

Total interest-earning assets

7,264,341

74,199

4.05%

6,449,862

66,515

4.09%

Allowance for loan and lease losses

(35,894)



(34,810)



BOLI and non-interest earning assets

362,334



266,538



Total assets

$   7,590,781



$   6,681,590










Interest-bearing liabilities







Savings

$      805,445

$     1,538

0.76%

$      832,006

$     1,575

0.75%

Interest-bearing checking

1,475,461

2,663

0.72%

1,282,066

2,273

0.70%

Money market

1,343,683

1,267

0.37%

1,294,554

1,337

0.41%

Certificates of deposit

1,060,556

1,394

0.52%

905,704

1,210

0.53%

Total interest-bearing deposits

4,685,145

6,862

0.58%

4,314,330

6,395

0.59%

FHLB advances

869,457

890

0.41%

476,848

587

0.49%

Securities sold under repurchase agreements

7,010

15

0.85%

2,681

3

0.44%

Long-term debt and other interest-bearing liabilities

265,087

4,366

6.53%

266,430

3,980

5.93%

Total interest-bearing liabilities

5,826,699

12,133

0.83%

5,060,289

10,965

0.86%

Noninterest-bearing deposits

1,037,966



916,670



Non-interest-bearing liabilities

72,010



58,918



Total liabilities

6,936,675



6,035,877



Total stockholders' equity

654,106



645,713



Total liabilities and stockholders' equity

$   7,590,781



$   6,681,590










Net interest income/spread


$   62,066

3.22%


$   55,550

3.23%








Net interest margin



3.39%



3.42%








Ratio of interest-earning assets to interest-bearing liabilities

124.67%



127.46%










Total deposits

$   5,723,111

$     6,862

0.48%

$   5,231,000

$     6,395

0.49%

Total funding (1)

$   6,864,665

$   12,133

0.70%

$   5,976,959

$   10,965

0.73%








(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.










Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)









Nine Months Ended


September 30, 2016

September 30, 2015


Average


Yield 

Average


Yield 


Balance

Interest

/ Cost

Balance

Interest

/ Cost

Interest earning assets







Loans held for sale and SFR mortgage

$   2,398,101

$   66,661

3.71%

$   1,931,759

$   54,584

3.78%

Seasoned SFR mortgage loan pools

887,273

37,037

5.58%

624,642

30,004

6.42%

Commercial real estate, multi-family, and construction

1,901,157

63,962

4.49%

1,790,108

61,703

4.61%

Commercial and industrial, SBA, and lease financing

1,342,959

50,041

4.98%

729,529

28,234

5.17%

Other consumer

107,488

3,556

4.42%

146,252

4,783

4.37%

Gross loans and leases

6,636,978

221,257

4.45%

5,222,290

179,308

4.59%

Securities

2,534,788

55,374

2.92%

530,124

9,100

2.30%

Other interest-earning assets

297,213

4,484

2.02%

293,891

3,731

1.70%

Total interest-earning assets

9,468,979

281,115

3.97%

6,046,305

192,139

4.25%

Allowance for loan and lease losses

(37,161)



(31,312)



BOLI and non-interest earning assets

489,839



276,543



Total assets

$   9,921,657



$   6,291,536










Interest-bearing liabilities







Savings

$      863,088

$     4,878

0.75%

$      881,273

$     4,929

0.75%

Interest-bearing checking

2,061,761

10,352

0.67%

1,113,267

6,309

0.76%

Money market

1,847,906

6,867

0.50%

1,177,538

3,324

0.38%

Certificates of deposit

1,295,588

5,619

0.58%

988,274

4,359

0.59%

Total interest-bearing deposits

6,068,343

27,716

0.61%

4,160,352

18,921

0.61%

FHLB advances

1,240,872

4,641

0.50%

446,571

1,230

0.37%

Securities sold under repurchase agreements

104,076

597

0.77%

903

3

0.44%

Long-term debt and other interest-bearing liabilities

212,209

9,746

6.13%

208,252

10,334

6.63%

Total interest-bearing liabilities

7,625,500

42,700

0.75%

4,816,078

30,488

0.85%

Noninterest-bearing deposits

1,205,179



820,385



Non-interest-bearing liabilities

214,056



56,738



Total liabilities

9,044,735



5,693,201



Total stockholders' equity

876,922



598,335



Total liabilities and stockholders' equity

$   9,921,657



$   6,291,536










Net interest income/spread


$ 238,415

3.22%


$ 161,651

3.40%








Net interest margin



3.36%



3.57%








Ratio of interest-earning assets to interest-bearing liabilities

124.18%



125.54%










Total deposits

$   7,273,522

$   27,716

0.51%

$   4,980,737

$   18,921

0.51%

Total funding (1)

$   8,830,679

$   42,700

0.65%

$   5,636,463

$   30,488

0.72%








(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.









Banc of California, Inc.

Capital Ratios

(Unaudited)








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

Capital Ratios






Banc of California, Inc.






Total risk-based capital ratio

12.79%

13.45%

13.59%

11.18%

12.56%

Tier 1 risk-based capital ratio

12.54%

13.14%

13.17%

10.71%

12.06%

Common equity tier 1 capital ratio

8.85%

9.16%

8.14%

7.36%

8.19%

Tier 1 leverage ratio

8.47%

8.87%

9.27%

8.07%

8.97%

Banc of California, NA






Total risk-based capital ratio

14.38%

14.96%

14.03%

13.45%

14.93%

Tier 1 risk-based capital ratio

13.83%

14.38%

13.42%

12.79%

14.19%

Common equity tier 1 capital ratio

13.83%

14.38%

13.42%

12.79%

14.19%

Tier 1 leverage ratio

9.31%

9.70%

9.44%

9.64%

10.53%


Banc of California, Inc.

Non-GAAP Measures 

(Dollars in thousands, except per share data)

(Unaudited)







Non-GAAP performance measure:

Tangible equity to tangible assets, tangible common equity to tangible assets ratios, return on average tangible common equity, and adjusted efficiency ratio 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 and tangible common equity is calculated by subtracting preferred stock from tangible 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. Adjusted efficiency ratio is calucated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pretax return, which includes the loss on investments in alternative energy partnerships, from investments in alternative energy partnerships to noninterest income.. Management believes the presentation of these financial measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial strength of Banc of California, Inc. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.







The following tables reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated:








September 30,

June 30,

March 31,

December 31,

September 30,


2016

2016

2016

2015

2015

Tangible common equity to tangible assets ratio






Total assets

$   11,216,404

$ 10,157,662

$ 9,616,972

$   8,235,555

$     7,256,810

Less goodwill

(39,244)

(39,244)

(39,244)

(39,244)

(39,244)

Less other intangible assets

(15,335)

(16,514)

(17,836)

(19,158)

(20,504)

Tangible assets

$   11,161,825

$ 10,101,904

$ 9,559,892

$   8,177,153

$     7,197,062







Total stockholders' equity

$        971,424

$      939,884

$    867,530

$      652,405

$        643,534

Less goodwill

(39,244)

(39,244)

(39,244)

(39,244)

(39,244)

Less other intangible assets

(15,335)

(16,514)

(17,836)

(19,158)

(20,504)

Tangible equity

916,845

884,126

810,450

594,003

583,786

Less preferred stock

(269,071)

(269,071)

(311,008)

(190,750)

(190,750)

Tangible common equity

$        647,774

$      615,055

$    499,442

$      403,253

$        393,036







Total stockholders' equity to total assets

8.66%

9.25%

9.02%

7.92%

8.87%

Tangible equity to tangible assets

8.21%

8.75%

8.48%

7.26%

8.11%

Tangible common equity to tangible assets

5.80%

6.09%

5.22%

4.93%

5.46%







Common stock outstanding

49,531,321

49,478,348

43,907,587

38,002,267

37,751,445

Class B non-voting non-convertible common stock
    outstanding

201,922

161,841

91,066

37,355

-

Total common stock outstanding

49,733,243

49,640,189

43,998,653

38,039,622

37,751,445

Minimum number of shares issuable under
    purchase contracts (1)

188,742

218,928

253,155

601,299

828,246

Total common stock outstanding and shares issuable
    under purchase contracts

49,921,985

49,859,117

44,251,808

38,640,921

38,579,691







(1) Purchase contracts relating to the tangible equity units












Tangible common equity per common stock

$            13.02

$          12.39

$        11.35

$          10.60

$            10.41

Book value per common stock

$            14.12

$          13.51

$        12.65

$          12.14

$            11.99







Tangible common equity per common stock and shares issuable under purchase contracts

$            12.98

$          12.34

$        11.29

$          10.44

$            10.19

Book value per common stock and shares issuable under purchase contracts

$            14.07

$          13.45

$        12.58

$          11.95

$            11.74


Banc of California, Inc.

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


Three Months Ended

Nine Months Ended


September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,


2016

2016

2016

2015

2015

2016

2015

Return on tangible common equity








Average total stockholders' equity

$        968,684

$      898,164

$    762,923

$      654,106

$        645,713

$        876,922

$        598,335

Less average preferred stock

(269,071)

(269,073)

(260,959)

(190,750)

(190,750)

(266,377)

(151,360)

Less average goodwill

(39,244)

(39,244)

(39,244)

(39,244)

(31,674)

(39,244)

(31,619)

Less average other intangible assets

(16,039)

(17,299)

(18,601)

(19,877)

(21,320)

(17,308)

(23,012)

Average tangible common equity

$        644,330

$      572,548

$    444,119

$      404,235

$        401,969

$        553,993

$        392,344









Net income

$          35,937

$        26,528

$      19,687

$        19,038

$          14,536

$          82,152

$          43,034

Less preferred stock dividends

(5,112)

(5,114)

(4,575)

(3,030)

(3,040)

(14,801)

(6,793)

Add amortization of intangible assets

1,179

1,322

1,322

1,346

1,401

3,823

4,490

Add impairment on intangible assets

-

-

-

-

-

-

258

Less tax effect on amortization and impairment
    of intangible assets (1)

(413)

(463)

(463)

(471)

(490)

(1,338)

(1,661)

Net income available to common stockholders

$          31,591

$        22,273

$      15,971

$        16,883

$          12,407

$          69,836

$          39,328









Return on average equity

14.76%

11.88%

10.38%

11.55%

8.93%

12.51%

9.62%

Return on average tangible common equity

19.51%

15.65%

14.46%

16.57%

12.25%

16.84%

13.40%









(1) Utilized a 35% effective tax rate












Three Months Ended

Nine Months Ended


September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,


2016

2016

2016

2015

2015

2016

2015

Adjusted efficiency ratio for including the pre-tax effect
     of investments in alternative energy partnerships








Noninterest expense

$        124,262

$      100,075

$      89,100

$        86,659

$          81,743

$        313,437

$        245,542

Loss on investments in alternative energy partnerships, net

(17,660)

-

-

-

-

(17,660)

-

Adjusted noninterest expense

$        106,602

$      100,075

$      89,100

$        86,659

$          81,743

$        295,777

$        245,542









Net interest income

$          86,961

$        81,037

$      70,417

$        62,066

$          55,550

$        238,415

$        161,651

Noninterest income

74,630

65,604

51,959

56,819

50,727

192,193

163,400

Total revenue

161,591

146,641

122,376

118,885

106,277

430,608

325,051

Tax credit from investments in alternative
    energy partnerships

19,357

-

-

-

-

19,357

-

Deferred tax expense on investments in alternative
    energy partnerships

(3,387)

-

-

-

-

(3,387)

-

Tax effect on tax credit and deferred tax expense(1)

11,002

-

-

-

-

11,002

-

Loss on investments in alternative energy partnerships, net

(17,660)

-

-

-

-

(17,660)

-

Total pre-tax adjustemnts for investments in alternative
    energy partnerships

9,312

-

-

-

-

9,312

-

Total adjusted revenue

$        170,903

$      146,641

$    122,376

$      118,885

$        106,277

$        439,920

$        325,051









Efficiency ratio

76.90%

68.24%

72.81%

72.89%

76.92%

72.79%

75.54%

Adjusted efficiency ratio for excluding the effect of investments in alternative energy partnerships

62.38%

68.24%

72.81%

72.89%

76.92%

67.23%

75.54%









(1) Utilized a 40.79% effective tax rate

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/banc-of-california-reports-record-third-quarter-earnings-300347439.html

SOURCE Banc of California, Inc.