Banc of California Reports Record Third Quarter Earnings

IRVINE, Calif., Oct. 19, 2016

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."