BANC OF CALIFORNIA, INC. IRVINE, Calif., Jan. 30, 2017 /PRNewswire/ --
-- Full Year Net Income of $115.4 million
-- Full Year Diluted EPS of $1.94
-- Fourth Quarter Diluted EPS of $0.54
-- Fourth Quarter and Full Year Results Exceed Guidance
Banc of California, Inc. (NYSE: BANC) today reported net income of $33.3 million, and net income available to common stockholders of $28.2 million, for the fourth quarter of 2016, resulting in diluted earnings per share of $0.54 for the quarter and $1.94 for the full year. Net income for the full year was $115.4 million, an increase of 86% compared to 2015. Net income available to common stockholders for 2016 grew to $95.5 million, an increase of 83% compared to FY 2015.
Highlights for the fourth quarter included:
-- The Company's return on average assets for the quarter was 1.1%, and its
return on average tangible common equity for the quarter was 17.3%.
-- Total loan originations for the fourth quarter were $2.3 billion,
including $1.0 billion from the commercial banking segment. The Company
sold $865 million of leases, seasoned single family residential pools
and nonperforming loans during the quarter. As a result, net held for
investment loan balances declined by $534 million for the quarter.
-- Full year 2016 total loan originations were $9.5 billion, an increase of
34% from the prior year, and of which $4.3 billion were from the
commercial banking segment.
-- Nonperforming assets to total assets declined to just 0.16%, the lowest
level in over six years.
The Company's consolidated assets totaled $11.0 billion at December 31, 2016, a decrease of $186.6 million compared to prior quarter and an increase of $2.8 billion, or 34%, compared to the prior year.
"Our fourth quarter results capped off a strong finish to a successful 2016," said Hugh Boyle, Interim Chief Executive Officer of Banc of California. "We have invested a great deal of resources into attracting and developing talented, entrepreneurial employees. I would like to thank all of my colleagues for our record 2016 results which are a strong reflection of their hard work and dedication. As we look to 2017 with a fresh perspective, our foundation continues to be our mission and vision as California's Bank. Our objectives for 2017 are focused on four key pillars: responsible and disciplined growth, strong and stable asset quality, focus and optimization of our business, and strong corporate governance. We are confident that we can continue to execute and deliver strong financial returns for shareholders."
"For both the quarter and the full year, we exceeded each of our stated financial targets, producing full-year return on assets of 1.1% and full-year return on tangible common equity of 17.0%," said J. Francisco A. Turner, Interim President and Chief Financial Officer of Banc of California. "During the fourth quarter, we continued to optimize our balance sheet, reduce risk in our portfolio and efficiently redeploy capital to support the business. Looking forward, we see opportunities to continue to grow recurring, spread-based revenue and drive efficiencies and expense management, and demonstrate scalable products and businesses."
The Company will host a conference call to discuss its fourth quarter financial results at 7:00 a.m. Pacific Time (PT) on Monday, January 30, 2017. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 0379665. 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. The Company was recently recognized by Forbes for the second straight year as one of the 100 Best Banks in America for 2017.
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. Abernathy MacGregor
Timothy Sedabres, (855) Ian Campbell /Joe Hixson /Kristin Cole,
361-2262 (213) 630-6550
idc@abmac.com /jrh@abmac.com /
kec@abmac.com
Banc of California, Inc.
Consolidated Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
ASSETS
Cash and cash equivalents $439,510 $372,603 $271,732 $215,012 $156,124
Time deposits in financial institutions 1,000 1,500 1,500 1,500 1,500
Securities available for sale 2,381,488 1,941,588 1,302,785 1,663,711 833,596
Securities held to maturity 884,234 962,315 962,282 962,262 962,203
Loans held for sale 704,651 846,844 893,782 863,944 668,841
Loans and leases receivable 6,034,752 6,568,791 6,236,115 5,463,068 5,184,394
Allowance for loan and lease losses (40,444) (40,233) (37,483) (35,845) (35,533)
Federal Home Loan Bank and other bank
stock 67,842 69,190 81,115 61,146 59,069
Servicing rights, net 77,617 63,843 53,650 49,406 50,727
Other real estate owned, net 2,502 275 429 325 1,097
Premises and equipment, net 143,617 133,228 120,755 114,668 111,539
Goodwill 39,244 39,244 39,244 39,244 39,244
Other intangible assets, net 13,617 15,335 16,514 17,836 19,158
Deferred income tax 9,989 408 7,270 7,441 11,341
Income tax receivable 16,009 12,487 5,904 - 604
Bank-owned life insurance investment 102,512 101,909 101,314 100,734 100,171
Other assets 151,713 127,077 100,754 92,520 71,480
------- ------- ------- ------ ------
Total assets $11,029,853 $11,216,404 $10,157,662 $9,616,972 $8,235,555
=========== =========== =========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing deposits $1,282,629 $1,267,363 $1,093,686 $1,398,728 $1,121,124
Interest-bearing deposits 7,859,521 7,810,956 6,835,270 5,438,873 5,181,961
--------- --------- --------- --------- ---------
Total deposits 9,142,150 9,078,319 7,928,956 6,837,601 6,303,085
Advances from Federal Home Loan Bank 490,000 770,000 930,000 1,195,000 930,000
Securities sold under repurchase
agreements - - - 257,100 -
Other borrowings 67,922 49,903 - - -
Notes payable, net 175,378 176,579 177,743 260,896 261,876
Reserve for loss on repurchased loans 7,974 11,369 10,438 9,781 9,700
Income taxes payable 92 908 - 12,303 1,241
Accrued expenses and other liabilities 166,098 157,902 170,641 176,761 77,248
------- ------- ------- ------- ------
Total liabilities 10,049,614 10,244,980 9,217,778 8,749,442 7,583,150
Commitments and contingent liabilities
Preferred stock, Series A, non-
cumulative perpetual - - - 31,934 31,934
Preferred stock, Series B, non-
cumulative perpetual - - - 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 120,255 120,255 120,255 120,258 -
Common stock 537 536 510 454 395
Common stock, class B non-voting non-
convertible 2 2 2 1 1
Additional paid-in capital 614,226 611,069 608,303 509,123 429,790
Retained earnings 134,515 112,751 88,385 73,179 63,534
Treasury stock (29,070) (29,070) (29,070) (29,070) (29,070)
Accumulated other comprehensive income/
(loss), net (9,042) 7,065 2,683 2,835 (2,995)
------ ----- ----- ----- ------
Total stockholders' equity 980,239 971,424 939,884 867,530 652,405
------- ------- ------- ------- -------
Total liabilities and stockholders'
equity $11,029,853 $11,216,404 $10,157,662 $9,616,972 $8,235,555
=========== =========== =========== ========== ==========
Banc of California, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2016 2016 2016 2016 2015 2016 2015
---- ---- ---- ---- ---- ---- ----
Interest and dividend income
Loans, including fees $75,739 $80,370 $73,743 $67,144 $62,248 $296,996 $241,556
Securities 24,153 19,934 19,393 16,047 11,163 79,527 20,263
Dividends and other interest-earning
assets 3,965 1,931 1,504 1,049 788 8,449 4,519
----- ----- ----- ----- --- ----- -----
Total interest and dividend income 103,857 102,235 94,640 84,240 74,199 384,972 266,338
Interest expense
Deposits 12,504 11,224 8,385 8,107 6,862 40,220 25,783
Federal Home Loan Bank advances 1,076 1,413 1,966 1,262 890 5,717 2,120
Securities sold under repurchase
agreements 221 48 389 160 15 818 18
Notes payable and other interest-bearing
liabilities 2,998 2,589 2,863 4,294 4,366 12,744 14,700
----- ----- ----- ----- ----- ------ ------
Total interest expense 16,799 15,274 13,603 13,823 12,133 59,499 42,621
------ ------ ------ ------ ------ ------ ------
Net interest income 87,058 86,961 81,037 70,417 62,066 325,473 223,717
Provision for loan and lease losses 589 2,592 1,769 321 1,260 5,271 7,469
--- ----- ----- --- ----- ----- -----
Net interest income after provision for
loan and lease losses 86,469 84,369 79,268 70,096 60,806 320,202 216,248
Noninterest income
Customer service fees 1,560 1,566 1,173 848 957 5,147 4,057
Loan servicing (loss) income 11,924 2,096 (3,347) (5,288) 3,663 5,385 2,974
Net gain on sale of securities available
for sale (695) 487 12,824 16,789 1,510 29,405 3,258
Net gain on sale of loans 20,490 11,063 2,147 2,195 15,164 35,895 37,211
Mortgage banking income 39,386 50,159 43,795 33,684 30,334 167,024 144,685
Advisory service fees - - 510 997 1,942 1,507 9,868
Loan brokerage income 1,502 1,384 759 874 678 4,519 3,140
Gain on sale of building - - - - - - 9,919
All other income 5,520 7,875 7,743 1,860 2,571 22,998 5,107
----- ----- ----- ----- ----- ------ -----
Total noninterest income 79,687 74,630 65,604 51,959 56,819 271,880 220,219
Noninterest expense
Salaries and employee benefits 71,680 68,033 61,022 57,183 54,008 257,918 213,114
Occupancy and equipment 12,607 12,728 11,943 11,740 11,200 49,018 41,405
Professional fees 11,586 6,732 6,763 6,212 4,808 31,293 20,193
Data processing 2,964 2,837 2,838 2,194 2,104 10,833 8,184
Loss on investments in alternative energy
partnerships, net 13,850 17,660 - - - 31,510 -
Amortization of intangible assets 1,028 1,179 1,322 1,322 1,346 4,851 5,836
All other expenses 15,524 15,093 16,187 10,449 13,193 57,253 43,469
------ ------ ------ ------ ------ ------ ------
Total noninterest expense 129,239 124,262 100,075 89,100 86,659 442,676 332,201
------- ------- ------- ------ ------ ------- -------
Income before income taxes 36,917 34,737 44,797 32,955 30,966 149,406 104,266
Income tax (benefit) expense 3,653 (1,200) 18,269 13,268 11,928 33,990 42,194
----- ------ ------ ------ ------ ------ ------
Net income 33,264 35,937 26,528 19,687 19,038 115,416 62,072
Preferred stock dividends 5,113 5,112 5,114 4,575 3,030 19,914 9,823
----- ----- ----- ----- ----- ------ -----
Net income available to common
stockholders $28,151 $30,825 $21,414 $15,112 $16,008 $95,502 $52,249
======= ======= ======= ======= ======= ======= =======
Basic earnings per total common share $0.55 $0.60 $0.44 $0.36 $0.40 $1.97 $1.36
Diluted earnings per total common share $0.54 $0.59 $0.43 $0.36 $0.39 $1.94 $1.34
Banc of California, Inc.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months Ended Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
------------ ------------- -------- --------- ------------ ------------ ------------
2016 2016 2016 2016 2015 2016 2015
---- ---- ---- ---- ---- ---- ----
Average balances
Total assets $11,568,849 $10,860,257 $10,061,237 $8,833,176 $7,590,781 $10,335,705 $6,619,017
Total gross loans and leases 7,209,241 7,245,472 6,663,340 5,995,436 5,531,539 6,780,826 5,300,237
Investment Securities 3,236,253 2,776,304 2,696,524 2,128,882 1,506,626 2,711,112 776,256
Total interest earning assets 11,075,367 10,432,247 9,619,937 8,344,167 7,264,341 9,872,770 6,353,316
Total interest-bearing deposits 7,825,036 7,164,061 5,696,893 5,332,032 4,685,145 6,509,915 4,292,629
Total borrowings 1,190,060 1,297,382 2,067,234 1,309,710 1,141,554 1,464,882 778,182
Total interest bearing liabilities 9,015,096 8,461,443 7,764,127 6,641,742 5,826,699 7,974,797 5,070,811
Total stockholders' equity 995,908 968,684 898,164 762,923 654,106 906,831 612,393
Profitability and other ratios
Return on average assets(1) 1.14% 1.32% 1.06% 0.90% 1.00% 1.12% 0.94%
Return on average equity (1) 13.29% 14.76% 11.88% 10.38% 11.55% 12.73% 10.14%
Return on average tangible common equity(2) 17.30% 19.51% 15.65% 14.46% 16.57% 16.97% 14.22%
Dividend payout ratio (3) 23.64% 20.00% 27.27% 33.33% 30.00% 24.87% 35.29%
Net interest spread 2.99% 3.18% 3.26% 3.22% 3.22% 3.15% 3.35%
Net interest margin(1) 3.13% 3.32% 3.39% 3.39% 3.39% 3.30% 3.52%
Noninterest income to total revenue (4) 47.79% 46.18% 44.74% 42.46% 47.79% 45.51% 49.61%
Noninterest income to average total
assets(1) 2.74% 2.73% 2.62% 2.37% 2.97% 2.63% 3.33%
Noninterest expense to average total
assets(1) 4.44% 4.55% 4.00% 4.06% 4.53% 4.28% 5.02%
Efficiency ratio(5) 77.51% 76.90% 68.24% 72.81% 72.89% 74.11% 74.83%
Adjusted efficiency ratio for including the
pre-tax effect of investments in
alternative energy partnerships (2) , (5) 66.87% 62.38% 68.24% 72.81% 72.89% 67.13% 74.83%
Average held for investment loans and
leases to average deposits 69.11% 75.92% 82.88% 79.76% 86.88% 76.26% 83.82%
Average investment securities to average
total assets 27.97% 25.56% 26.80% 24.10% 19.85% 26.23% 11.73%
Average stockholders' equity to average
total assets 8.61% 8.92% 8.93% 8.64% 8.62% 8.77% 9.25%
Allowance for loan and lease losses (ALLL)
Balance at beginning of period $40,233 $37,483 $35,845 $35,533 $34,774 $35,533 $29,480
Loans and leases charged off (1,351) (393) (772) (102) (718) (2,618) (1,942)
Recoveries 973 551 641 93 217 2,258 526
Provision for loan and lease losses 589 2,592 1,769 321 1,260 5,271 7,469
--- ----- ----- --- ----- ----- -----
Balance at end of period $40,444 $40,233 $37,483 $35,845 $35,533 $40,444 $35,533
======= ======= ======= ======= ======= ======= =======
Annualized net loan charge-offs to average
total gross loans held for investment 0.02% -0.01% 0.01% 0.00% 0.04% 0.01% 0.03%
Reserve for loss on repurchased loans
Balance at beginning of period $11,369 $10,438 $9,781 $9,700 $9,098 $9,700 $8,303
Provision for loan repurchases (1,881) 1,241 851 379 735 590 4,352
Change in estimates - - - - 846 - 846
Utilization of reserve for loan repurchases (1,514) (310) (194) (298) (979) (2,316) (3,801)
------ ---- ---- ---- ---- ------ ------
Balance at end of period $7,974 $11,369 $10,438 $9,781 $9,700 $7,974 $9,700
====== ======= ======= ====== ====== ====== ======
(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)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Asset quality information and ratios
30 to 89 days delinquent, excluding PCI
loans $30,140 $39,054 $50,494 $36,022 $39,946
90+ days delinquent, excluding PCI loans 14,218 22,827 28,675 27,469 23,338
------ ------ ------ ------ ------
Total delinquent loans, excluding PCI
loans 44,358 61,881 79,169 63,491 63,284
------ ------ ------ ------ ------
PCI loans, 30 to 89 days delinquent 15,078 39,113 48,255 44,191 40,291
PCI loans, 90+ days delinquent 2,577 6,145 8,952 9,806 6,894
----- ----- ----- ----- -----
Total delinquent PCI loans 17,655 45,258 57,207 53,997 47,185
------ ------ ------ ------ ------
Total delinquent loans $62,013 $107,139 $136,376 $117,488 $110,469
======= ======== ======== ======== ========
Total delinquent non-PCI loans to total
non-PCI loans 0.75% 1.04% 1.44% 1.33% 1.42%
Total delinquent loans to gross loans 1.03% 1.63% 2.19% 2.15% 2.13%
Non-performing loans, excluding PCI loans $14,942 $35,223 $45,012 $44,216 $45,129
90+ days delinquent and still accruing
loans, excluding PCI loans - - - - -
Other real estate owned 2,502 275 429 325 1,097
----- --- --- --- -----
Non-performing assets $17,444 $35,498 $45,441 $44,541 $46,226
======= ======= ======= ======= =======
ALLL to non-performing loans 270.67% 114.22% 83.27% 81.07% 78.74%
Non-performing loans to gross loans 0.25% 0.54% 0.72% 0.81% 0.87%
Non-performing assets to total assets 0.16% 0.32% 0.45% 0.46% 0.56%
Troubled Debt Restructurings (TDRs)
Performing TDRs $4,827 $11,160 $14,450 $15,128 $7,842
Non-performing TDRs - 520 2,864 2,545 1,970
--- --- ----- ----- -----
Total TDRs $4,827 $11,680 $17,314 $17,673 $9,812
====== ======= ======= ======= ======
Banc of California, Inc.
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Loan and lease breakdown by ALLL
evaluation type
Originated loans and leases
Individually evaluated for impairment $10,168 $22,306 $25,661 $26,565 $30,654
Collectively evaluated for impairment 4,933,381 4,789,155 4,254,975 3,484,995 3,117,528
Acquired loans not impaired at
acquisition
Individually evaluated for impairment 2,429 3,397 3,470 3,530 3,629
Collectively evaluated for impairment 924,993 958,135 1,022,696 1,079,711 1,124,874
Seasoned SFR mortgage loan pools - non-
impaired
Individually evaluated for impairment 755 6,581 9,717 9,287 -
Collectively evaluated for impairment 21,200 146,850 168,352 175,004 194,978
Acquired with deteriorated credit quality 141,826 642,367 751,244 683,976 712,731
------- ------- ------- ------- -------
Total loans $6,034,752 $6,568,791 $6,236,115 $5,463,068 $5,184,394
========== ========== ========== ========== ==========
ALLL breakdown
Originated loans and leases
Individually evaluated for impairment $137 $137 $215 $365 $369
Collectively evaluated for impairment 38,394 37,858 34,575 32,202 32,713
Acquired loans not impaired at
acquisition
Individually evaluated for impairment - - - - -
Collectively evaluated for impairment 1,703 1,606 1,458 2,061 2,245
Seasoned SFR mortgage loan pools - non-
impaired
Individually evaluated for impairment 106 528 1,131 1,011 -
Collectively evaluated for impairment - - - - -
Acquired with deteriorated credit quality 104 104 104 206 206
--- --- --- --- ---
Total ALLL $40,444 $40,233 $37,483 $35,845 $35,533
======= ======= ======= ======= =======
Discount on Purchased/Acquired Loans
Acquired loans not impaired at
acquisition $17,820 $18,400 $20,136 $20,781 $21,366
Seasoned SFR mortgage loan pools - non-
impaired 1,280 9,789 11,304 11,862 12,545
Acquired with deteriorated credit quality 22,454 57,780 76,505 66,573 68,372
------ ------ ------ ------ ------
Total Discount $41,554 $85,969 $107,945 $99,216 $102,283
======= ======= ======== ======= ========
Ratios
To originated loans and leases:
Individually evaluated for impairment 1.35% 0.61% 0.84% 1.37% 1.20%
Collectively evaluated for impairment 0.78% 0.79% 0.81% 0.92% 1.05%
Total ALLL 0.78% 0.79% 0.81% 0.93% 1.05%
To originated loans and leases and
acquired loans not impaired at
acquisition:
Individually evaluated for impairment 1.09% 0.53% 0.74% 1.21% 1.08%
Collectively evaluated for impairment 0.68% 0.69% 0.68% 0.75% 0.82%
Total ALLL 0.69% 0.69% 0.68% 0.75% 0.83%
Total ALLL and discount (1) 0.99% 1.00% 1.06% 1.21% 1.33%
To total loans and leases:
Individually evaluated for impairment 1.82% 2.06% 3.46% 3.49% 1.08%
Collectively evaluated for impairment 0.68% 0.67% 0.66% 0.72% 0.79%
Total ALLL 0.67% 0.61% 0.60% 0.66% 0.69%
Total ALLL and discount (1) 1.36% 1.92% 2.33% 2.47% 2.66%
(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)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Composition of held for investment loans
and leases
Commercial real estate $729,959 $721,838 $725,107 $713,693 $727,707
Multi-family 1,365,262 1,199,207 1,147,597 1,021,097 904,300
Construction 125,100 99,086 86,852 68,241 55,289
Commercial and industrial 1,522,960 1,531,041 1,306,866 983,961 876,999
SBA 73,840 67,737 65,477 71,640 57,706
Lease financing 379 234,540 228,663 212,836 192,424
--- ------- ------- ------- -------
Total commercial loans 3,817,500 3,853,449 3,560,562 3,071,468 2,814,425
--------- --------- --------- --------- ---------
Single family residential mortgage 2,106,630 2,601,375 2,555,344 2,282,445 2,255,584
Other consumer 110,622 113,967 120,209 109,155 114,385
------- ------- ------- ------- -------
Total consumer loans 2,217,252 2,715,342 2,675,553 2,391,600 2,369,969
--------- --------- --------- --------- ---------
Total gross loans and leases $6,034,752 $6,568,791 $6,236,115 $5,463,068 $5,184,394
========== ========== ========== ========== ==========
Composition percentage of held for
investment loans and leases
Commercial real estate 12.1% 11.0% 11.6% 13.1% 14.0%
Multi-family 22.6% 18.3% 18.4% 18.7% 17.4%
Construction 2.1% 1.5% 1.4% 1.2% 1.1%
Commercial and industrial 25.2% 23.3% 21.0% 18.0% 16.9%
SBA 1.2% 1.0% 1.0% 1.3% 1.1%
Lease financing 0.1% 3.6% 3.7% 3.9% 3.7%
--- --- --- --- ---
Total commercial loans 63.3% 58.7% 57.1% 56.2% 54.2%
---- ---- ---- ---- ----
Single family residential mortgage 34.9% 39.6% 41.0% 41.8% 43.6%
Other consumer 1.8% 1.7% 1.9% 2.0% 2.2%
--- --- --- --- ---
Total consumer loans 36.7% 41.3% 42.9% 43.8% 45.8%
---- ---- ---- ---- ----
Total gross loans and leases 100.0% 100.0% 100.0% 100.0% 100.0%
===== ===== ===== ===== =====
Composition of deposits
Noninterest-bearing checking $1,282,629 $1,267,363 $1,093,686 $1,398,728 $1,121,124
Interest-bearing checking 2,048,839 2,369,332 2,053,656 2,052,507 1,697,055
Money market 2,731,314 2,900,248 2,343,561 1,534,492 1,479,931
Savings 1,118,175 880,712 909,242 844,177 823,618
Certificates of deposit 1,961,193 1,660,664 1,528,811 1,007,697 1,181,357
--------- --------- --------- --------- ---------
Total deposits $9,142,150 $9,078,319 $7,928,956 $6,837,601 $6,303,085
========== ========== ========== ========== ==========
Composition percentage of deposits
Noninterest-bearing checking 14.0% 14.0% 13.8% 20.5% 17.8%
Interest-bearing checking 22.4% 26.1% 25.9% 30.0% 26.8%
Money market 29.9% 31.9% 29.5% 22.4% 23.5%
Savings 12.2% 9.7% 11.5% 12.3% 13.1%
Certificates of deposit 21.5% 18.3% 19.3% 14.8% 18.8%
---- ---- ---- ---- ----
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
------------------
December 31, 2016 September 30, 2016 June 30, 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 $2,755,849 $25,577 3.69% $2,618,879 $24,365 3.70% $2,428,168 $22,488 3.72%
Seasoned SFR mortgage loan pools 570,006 6,281 4.38% 907,387 11,924 5.23% 878,068 12,404 5.68%
Commercial real estate, multi-family, and construction 2,146,067 23,405 4.34% 2,033,718 23,097 4.52% 1,907,649 21,049 4.44%
Commercial and industrial, SBA, and lease financing 1,628,177 19,228 4.70% 1,576,379 19,734 4.98% 1,343,961 16,642 4.98%
Other consumer 109,142 1,248 4.55% 109,109 1,250 4.56% 105,494 1,160 4.42%
------- ----- ------- ----- ------- -----
Gross loans and leases 7,209,241 75,739 4.18% 7,245,472 80,370 4.41% 6,663,340 73,743 4.45%
Securities 3,236,253 24,153 2.97% 2,776,304 19,934 2.86% 2,696,524 19,393 2.89%
Other interest-earning assets 629,873 3,965 2.50% 410,471 1,931 1.87% 260,073 1,504 2.33%
------- ----- ------- ----- ------- -----
Total interest-earning assets 11,075,367 103,857 3.73% 10,432,247 102,235 3.90% 9,619,937 94,640 3.96%
Allowance for loan and lease losses (39,163) (38,258) (37,637)
BOLI and non-interest earning assets 532,645 466,268 478,937
------- ------- -------
Total assets $11,568,849 $10,860,257 $10,061,237
=========== =========== ===========
Interest-bearing liabilities
Savings $941,404 $1,917 0.81% $887,973 $1,704 0.76% $866,051 $1,603 0.74%
Interest-bearing checking 2,081,105 3,371 0.64% 2,300,128 3,972 0.69% 1,981,702 3,135 0.64%
Money market 2,830,271 3,909 0.55% 2,427,356 3,226 0.53% 1,672,662 1,962 0.47%
Certificates of deposit 1,972,256 3,307 0.67% 1,548,604 2,322 0.60% 1,176,478 1,685 0.58%
--------- ----- --------- ----- --------- -----
Total interest-bearing deposits 7,825,036 12,504 0.64% 7,164,061 11,224 0.62% 5,696,893 8,385 0.59%
FHLB advances 892,120 1,076 0.48% 1,104,663 1,413 0.51% 1,663,791 1,966 0.48%
Securities sold under repurchase agreements 59,761 221 1.47% 12,539 48 1.52% 210,299 389 0.74%
Long-term debt and other interest-bearing liabilities 238,179 2,998 5.01% 180,180 2,589 5.72% 193,144 2,863 5.96%
------- ----- ------- ----- ------- -----
Total interest-bearing liabilities 9,015,096 16,799 0.74% 8,461,443 15,274 0.72% 7,764,127 13,603 0.70%
Noninterest-bearing deposits 1,286,642 1,178,849 1,205,987
Non-interest-bearing liabilities 271,203 251,281 192,959
------- ------- -------
Total liabilities 10,572,941 9,891,573 9,163,073
Total stockholders' equity 995,908 968,684 898,164
------- ------- -------
Total liabilities and stockholders' equity $11,568,849 $10,860,257 $10,061,237
=========== =========== ===========
Net interest income/spread $87,058 2.99% $86,961 3.18% $81,037 3.26%
======= ======= =======
Net interest margin 3.13% 3.32% 3.39%
Ratio of interest-earning assets to interest-bearing liabilities 122.85% 123.29% 123.90%
Total deposits $9,111,678 $12,504 0.55% $8,342,910 $11,224 0.54% $6,902,880 $8,385 0.49%
Total funding (1) $10,301,738 $16,799 0.65% $9,640,292 $15,274 0.63% $8,970,114 $13,603 0.61%
(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
------------------
March 31, 2016 December 31, 2015
-------------- -----------------
Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost
------- -------- ------ ------- -------- ------
Interest earning assets
Loans held for sale and SFR mortgage $2,144,834 $19,808 3.71% $1,903,331 $17,584 3.67%
Seasoned SFR mortgage loan pools 876,142 12,710 5.83% 858,601 12,098 5.59%
Commercial real estate, multi-family, and construction 1,760,646 19,816 4.53% 1,638,329 19,006 4.60%
Commercial and industrial, SBA, and lease financing 1,105,971 13,665 4.97% 1,020,306 12,754 4.96%
Other consumer 107,843 1,145 4.27% 110,972 806 2.88%
------- ----- ------- ---
Gross loans and leases 5,995,436 67,144 4.50% 5,531,539 62,248 4.46%
Securities 2,128,882 16,047 3.03% 1,506,626 11,163 2.94%
Other interest-earning assets 219,849 1,049 1.92% 226,176 788 1.38%
------- ----- ------- ---
Total interest-earning assets 8,344,167 84,240 4.06% 7,264,341 74,199 4.05%
Allowance for loan and lease losses (35,575) (35,894)
BOLI and non-interest earning assets 524,584 362,334
------- -------
Total assets $8,833,176 $7,590,781
========== ==========
Interest-bearing liabilities
Savings $834,965 $1,572 0.76% $805,445 $1,538 0.76%
Interest-bearing checking 1,900,834 3,244 0.69% 1,475,461 2,663 0.72%
Money market 1,437,332 1,679 0.47% 1,343,683 1,267 0.37%
Certificates of deposit 1,158,901 1,612 0.56% 1,060,556 1,394 0.52%
--------- ----- --------- -----
Total interest-bearing deposits 5,332,032 8,107 0.61% 4,685,145 6,862 0.58%
FHLB advances 955,659 1,262 0.53% 869,457 890 0.41%
Securities sold under repurchase agreements 90,395 160 0.71% 7,010 15 0.85%
Long-term debt and other interest-bearing liabilities 263,656 4,294 6.55% 265,087 4,366 6.53%
------- ----- ------- -----
Total interest-bearing liabilities 6,641,742 13,823 0.84% 5,826,699 12,133 0.83%
Noninterest-bearing deposits 1,230,991 1,037,966
Non-interest-bearing liabilities 197,520 72,010
------- ------
Total liabilities 8,070,253 6,936,675
Total stockholders' equity 762,923 654,106
------- -------
Total liabilities and stockholders' equity $8,833,176 $7,590,781
========== ==========
Net interest income/spread $70,417 3.22% $62,066 3.22%
======= =======
Net interest margin 3.39% 3.39%
Ratio of interest-earning assets to interest-bearing liabilities 125.63% 124.67%
Total deposits $6,563,023 $8,107 0.50% $5,723,111 $6,862 0.48%
Total funding (1) $7,872,733 $13,823 0.71% $6,864,665 $12,133 0.70%
(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)
Year Ended
----------
December 31, 2016 December 31, 2015
----------------- -----------------
Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost
------- -------- ------ ------- -------- ------
Interest earning assets
Loans held for sale and SFR mortgage $2,488,028 $92,239 3.71% $1,924,593 $72,167 3.75%
Seasoned SFR mortgage loan pools 807,522 43,318 5.36% 683,612 42,102 6.16%
Commercial real estate, multi-family,
and construction 1,962,719 87,367 4.45% 1,751,851 80,708 4.61%
Commercial and industrial, SBA, and lease
financing 1,414,653 69,268 4.90% 802,821 40,989 5.11%
Other consumer 107,904 4,804 4.45% 137,360 5,590 4.07%
------- ----- ------- -----
Gross loans and leases 6,780,826 296,996 4.38% 5,300,237 241,556 4.56%
Securities 2,711,112 79,527 2.93% 776,256 20,263 2.61%
Other interest-earning assets 380,832 8,449 2.22% 276,823 4,519 1.63%
------- ----- ------- -----
Total interest-earning assets 9,872,770 384,972 3.90% 6,353,316 266,338 4.19%
Allowance for loan and lease losses (37,664) (32,467)
BOLI and non-interest earning assets 500,599 298,168
------- -------
Total assets $10,335,705 $6,619,017
=========== ==========
Interest-bearing liabilities
Savings $882,774 $6,795 0.77% $862,160 $6,467 0.75%
Interest-bearing checking 2,066,623 13,723 0.66% 1,204,560 8,973 0.74%
Money market 2,094,839 10,776 0.51% 1,219,416 4,590 0.38%
Certificates of deposit 1,465,679 8,926 0.61% 1,006,493 5,753 0.57%
--------- ----- --------- -----
Total interest-bearing deposits 6,509,915 40,220 0.62% 4,292,629 25,783 0.60%
FHLB advances 1,153,208 5,717 0.50% 553,162 2,120 0.38%
Securities sold under repurchase
agreements 92,937 818 0.88% 2,443 18 0.74%
Long-term debt and other interest-
bearing liabilities 218,737 12,744 5.83% 222,577 14,700 6.60%
------- ------ ------- ------
Total interest-bearing liabilities 7,974,797 59,499 0.75% 5,070,811 42,621 0.84%
Noninterest-bearing deposits 1,225,656 875,227
Non-interest-bearing liabilities 228,421 60,586
------- ------
Total liabilities 9,428,874 6,006,624
Total stockholders' equity 906,831 612,393
------- -------
Total liabilities and stockholders'
equity $10,335,705 $6,619,017
=========== ==========
Net interest income/spread $325,473 3.15% $223,717 3.35%
======== ========
Net interest margin 3.30% 3.52%
Ratio of interest-earning assets to
interest-bearing liabilities 123.80% 125.29%
Total deposits $7,735,571 $40,220 0.52% $5,167,856 $25,783 0.50%
Total funding (1) $9,200,453 $59,499 0.65% $5,946,038 $42,621 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)
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio 13.70% 12.79% 13.45% 13.59% 11.18%
Tier 1 risk-based capital ratio 13.22% 12.54% 13.14% 13.17% 10.71%
Common equity tier 1 capital ratio 9.44% 8.85% 9.16% 8.14% 7.36%
Tier 1 leverage ratio 8.17% 8.47% 8.87% 9.27% 8.07%
Banc of California, NA
Total risk-based capital ratio 14.73% 14.38% 14.96% 14.03% 13.45%
Tier 1 risk-based capital ratio 14.12% 13.83% 14.38% 13.42% 12.79%
Common equity tier 1 capital ratio 14.12% 13.83% 14.38% 13.42% 12.79%
Tier 1 leverage ratio 8.71% 9.31% 9.70% 9.44% 9.64%
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 methods 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 calculated 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:
December 31, September 30, June 30, March 31, December 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Tangible common equity to tangible assets ratio
Total assets $11,029,853 $11,216,404 $10,157,662 $9,616,972 $8,235,555
Less goodwill (39,244) (39,244) (39,244) (39,244) (39,244)
Less other intangible
assets (13,617) (15,335) (16,514) (17,836) (19,158)
------- ------- ------- ------- -------
Tangible assets $10,976,992 $11,161,825 $10,101,904 $9,559,892 $8,177,153
=========== =========== =========== ========== ==========
Total stockholders' equity $980,239 $971,424 $939,884 $867,530 $652,405
Less goodwill (39,244) (39,244) (39,244) (39,244) (39,244)
Less other intangible
assets (13,617) (15,335) (16,514) (17,836) (19,158)
------- ------- ------- ------- -------
Tangible equity 927,378 916,845 884,126 810,450 594,003
Less preferred stock (269,071) (269,071) (269,071) (311,008) (190,750)
-------- -------- -------- -------- --------
Tangible common equity $658,307 $647,774 $615,055 $499,442 $403,253
======== ======== ======== ======== ========
Total stockholders' equity
to total assets 8.89% 8.66% 9.25% 9.02% 7.92%
Tangible equity to
tangible assets 8.45% 8.21% 8.75% 8.48% 7.26%
Tangible common equity to
tangible assets 6.00% 5.80% 6.09% 5.22% 4.93%
Common stock outstanding 49,695,299 49,531,321 49,478,348 43,907,587 38,002,267
Class B non-voting non-
convertible common stock
outstanding 201,922 201,922 161,841 91,066 37,355
------- ------- ------- ------ ------
Total common stock
outstanding 49,897,221 49,733,243 49,640,189 43,998,653 38,039,622
========== ========== ========== ========== ==========
Minimum number of shares
issuable under purchase
contracts (1) 188,742 188,742 218,928 253,155 601,299
------- ------- ------- ------- -------
Total common stock
outstanding and shares
issuable under purchase
contracts 50,085,963 49,921,985 49,859,117 44,251,808 38,640,921
========== ========== ========== ========== ==========
(1) Purchase contracts relating to the tangible equity units
Tangible common equity per
common stock $13.19 $13.02 $12.39 $11.35 $10.60
Book value per common
stock $14.25 $14.12 $13.51 $12.65 $12.14
Tangible common equity per
common stock and shares
issuable under purchase
contracts $13.14 $12.98 $12.34 $11.29 $10.44
Book value per common
stock and shares issuable
under purchase contracts $14.20 $14.07 $13.45 $12.58 $11.95
Banc of California, Inc.
Non-GAAP Measures, Continued
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2016 2016 2016 2016 2015 2016 2015
---- ---- ---- ---- ---- ---- ----
Return on tangible common equity
Average total stockholders' equity $995,908 $968,684 $898,164 $762,923 $654,106 $906,831 $612,393
Less average preferred stock (269,071) (269,071) (269,073) (260,959) (190,750) (267,054) (161,288)
Less average goodwill (39,244) (39,244) (39,244) (39,244) (39,244) (39,244) (33,541)
Less average other intangible assets (14,704) (16,039) (17,299) (18,601) (19,877) (16,654) (22,222)
------- ------- ------- ------- ------- ------- -------
Average tangible common equity $672,889 $644,330 $572,548 $444,119 $404,235 $583,879 $395,342
======== ======== ======== ======== ======== ======== ========
Net income $33,264 $35,937 $26,528 $19,687 $19,038 $115,416 $62,072
Less preferred stock dividends (5,113) (5,112) (5,114) (4,575) (3,030) (19,914) (9,823)
Add amortization of intangible assets 1,028 1,179 1,322 1,322 1,346 4,851 5,836
Add impairment on intangible assets 690 - - - - 690 258
Less tax effect on amortization and
impairment of intangible assets (1) (601) (413) (463) (463) (471) (1,939) (2,133)
---- ---- ---- ---- ---- ------ ------
Net income available to common
stockholders $29,268 $31,591 $22,273 $15,971 $16,883 $99,104 $56,210
======= ======= ======= ======= ======= ======= =======
Return on average equity 13.29% 14.76% 11.88% 10.38% 11.55% 12.73% 10.14%
Return on average tangible common equity 17.30% 19.51% 15.65% 14.46% 16.57% 16.97% 14.22%
(1) Utilized a 35% effective tax rate
Three Months Ended Year Ended
------------------ ----------
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2016 2016 2016 2016 2015 2016 2015
---- ---- ---- ---- ---- ---- ----
Adjusted efficiency ratio for
including the pre-tax effect
of investments in alternative
energy partnerships
Noninterest expense $129,239 $124,262 $100,075 $89,100 $86,659 $442,676 $332,201
Loss on investments in
alternative energy
partnerships, net (13,850) (17,660) - - - (31,510) -
------- ------- --- --- --- ------- ---
Adjusted noninterest expense $115,389 $106,602 $100,075 $89,100 $86,659 $411,166 $332,201
======== ======== ======== ======= ======= ======== ========
Net interest income $87,058 $86,961 $81,037 $70,417 $62,066 $325,473 $223,717
Noninterest income 79,687 74,630 65,604 51,959 56,819 271,880 220,219
------ ------ ------ ------ ------ ------- -------
Total revenue 166,745 161,591 146,641 122,376 118,885 597,353 443,936
Tax credit from investments in
alternative energy
partnerships 14,048 19,357 - - - 33,405 -
Deferred tax expense on
investments in alternative
energy partnerships (2,459) (3,387) - - - (5,846) -
Tax effect on tax credit and
deferred tax expense 8,078 11,002 - - - 19,080 -
Loss on investments in
alternative energy
partnerships, net (13,850) (17,660) - - - (31,510) -
------- ------- --- --- --- ------- ---
Total pre-tax adjustments for
investments in alternative
energy partnerships 5,817 9,312 - - - 15,129 -
----- ----- --- --- --- ------ ---
Total adjusted revenue $172,562 $170,903 $146,641 $122,376 $118,885 $612,482 $443,936
======== ======== ======== ======== ======== ======== ========
Efficiency ratio 77.51% 76.90% 68.24% 72.81% 72.89% 74.11% 74.83%
Adjusted efficiency ratio for
excluding the effect of
investments in alternative
energy partnerships 66.87% 62.38% 68.24% 72.81% 72.89% 67.13% 74.83%
Effective tax rate utilized
for calculating tax effect on
tax credit and deferred tax
expense 41.10% 40.79% - - - 40.91% -
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/banc-of-california-reports-record-2016-earnings-300398537.html
SOURCE Banc of California, Inc.
