Banc of California Reports Fourth Quarter 2018 Earnings
PRNewswire 24-Jan-2019 5:00 AM
SANTA ANA, Calif., Jan. 24, 2019 /PRNewswire/ -- Banc of California, Inc. (NYSE:BANC) today reported net income available to common stockholders of $6.7 million, for the fourth quarter of 2018, resulting in diluted earnings per common share of $0.13 for the quarter.
Highlights for the fourth quarter included:
- Core Deposits: Core deposit balances were flat for the quarter. Full year core deposit balances grew 10% to $6.2 billion.
- Organic Loan Growth: Held for investment loans increased by $448 million during the quarter to $7.7 billion. Loan portfolio growth for the full year was 16%.
- Gross loan commitment originations totaled $1.0 billion for the fourth quarter at an average production yield of 5.26%.
- Asset Re-Mix: Investment securities balance declined by $67 million during the quarter and represented 19% of total assets at quarter end, down from 20% at the end of the prior quarter and 25% from a year ago.
- Disciplined Expense Management: Fourth quarter noninterest expense totaled $49.6 million, down from $60.9 million for the third quarter. Fourth quarter noninterest expense to average total assets ratio of 1.92%, down from 2.38% for the third quarter.
- Strong Credit Performance: Non-performing assets to total assets at quarter end of 0.21% and total delinquent loans to total loans at quarter end of 0.53%, compared to 0.25% and 0.49%, respectively, at the prior quarter end and 0.21% and 0.63%, respectively, a year ago. Net charge-offs during the quarter totaled $2.2 million, compared with $306 thousand during the prior quarter and $791 thousand during the same quarter a year ago. The ALLL / total loan ratio was 0.81% at quarter end, up from 0.80% at the prior quarter end and 0.74% a year ago.
- Strong Capital Ratios: Common equity tier 1 capital ratio at quarter end of 9.53%, compared to 9.80% at the prior quarter end and 9.92% a year ago.
The Company's fourth quarter results included $7.1 million of legal and professional fees and $1.1 million in project related expenses, offset by a $9.8 million insurance recovery related to ongoing indemnification expense and a gain from the sale of an owned branch office of $1.8 million. The aggregate impact of these items resulted in a net benefit of $3.4 million from non-recurring items for the quarter.
"We continue to lay the foundation to support the development of our core commercial banking platform," said Doug Bowers, President and Chief Executive Officer of Banc of California. "We saw strong organic loan growth with balances increasing $448 million for the quarter or 25% annualized. Core deposit growth came in below expectations for the quarter, but was up 10% for the full year. Efforts to de-risk the balance sheet, build front line business units and simplify the operating platform further reflect our efforts to build California's bank. Credit quality remained strong with non-performing assets to total assets at 0.21% at quarter end."
The Company will host a conference call to discuss its fourth quarter 2018 financial results at 7:00 a.m. Pacific Time (PT) on Thursday, January 24, 2019. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1216098. 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 32 offices in California.
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.
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Investor Relations Inquiries:
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Media Inquiries:
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Banc of California, Inc.
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Abernathy MacGregor
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John A. Bogler, (949) 236-5400
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Ian Campbell / James Bourne / Sarah Dhanaphatana, (213) 630-6550
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idc@abmac.com / jab@abmac.com / skd@abmac.com
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Banc of California, Inc.
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Consolidated Statements of Financial Condition
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(Dollars in thousands)
|
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(Unaudited)
|
|
|
|
|
|
|
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December 31,
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September 30,
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June 30,
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March 31,
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December 31,
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2018
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2018
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2018
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2018
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2017
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ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
$ 391,592
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$ 372,221
|
$ 385,691
|
$ 346,704
|
$ 387,699
|
|
Securities available-for-sale
|
1,992,500
|
2,059,832
|
2,297,124
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2,424,593
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2,575,469
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|
Loans held-for-sale
|
8,116
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9,382
|
13,753
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20,180
|
67,069
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|
Loans and leases receivable
|
7,700,873
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7,253,293
|
7,036,004
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6,930,507
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6,659,407
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|
Allowance for loan and lease losses
|
(62,192)
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(57,782)
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(56,678)
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(54,763)
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(49,333)
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|
Federal Home Loan Bank and other bank stock
|
68,094
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71,308
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75,737
|
82,715
|
75,654
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|
Servicing rights, net
|
3,428
|
3,770
|
3,869
|
6,739
|
33,708
|
|
Other real estate owned, net
|
672
|
434
|
710
|
1,024
|
1,796
|
|
Premises and equipment, net
|
129,394
|
133,129
|
135,478
|
135,198
|
135,699
|
|
Investments in alternative energy partnerships, net
|
28,988
|
41,781
|
44,806
|
48,344
|
48,826
|
|
Goodwill
|
37,144
|
37,144
|
37,144
|
37,144
|
37,144
|
|
Other intangible assets, net
|
6,346
|
6,990
|
7,683
|
8,510
|
9,353
|
|
Deferred income tax, net
|
49,404
|
47,865
|
42,334
|
43,192
|
31,074
|
|
Income tax receivable
|
2,695
|
1,764
|
7,995
|
10,126
|
8,739
|
|
Bank owned life insurance investment
|
107,027
|
106,468
|
105,917
|
105,384
|
104,851
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|
Other assets
|
146,496
|
152,933
|
155,298
|
153,834
|
161,797
|
|
Assets of discontinued operations
|
19,490
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20,290
|
26,415
|
29,888
|
38,900
|
|
Total assets
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$ 10,630,067
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$ 10,260,822
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$ 10,319,280
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$ 10,329,319
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$ 10,327,852
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|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
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Noninterest-bearing deposits
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$ 1,023,360
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$ 1,061,557
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$ 1,005,032
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$ 1,039,116
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$ 1,071,608
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Interest-bearing deposits
|
6,893,284
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6,340,185
|
6,130,762
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6,071,049
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6,221,295
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|
Total deposits
|
7,916,644
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7,401,742
|
7,135,794
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7,110,165
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7,292,903
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|
Advances from Federal Home Loan Bank
|
1,520,000
|
1,640,000
|
1,805,000
|
1,905,000
|
1,695,000
|
|
Notes payable, net
|
173,174
|
173,096
|
173,017
|
172,966
|
172,941
|
|
Reserve for loss on repurchased loans
|
2,506
|
2,575
|
3,149
|
3,426
|
6,306
|
|
Due on unsettled securities purchases
|
-
|
17,500
|
132,546
|
59,000
|
-
|
|
Accrued expenses and other liabilities
|
72,209
|
79,231
|
81,086
|
84,997
|
140,575
|
|
Liabilities of discontinued operations
|
-
|
-
|
-
|
9
|
7,819
|
|
Total liabilities
|
9,684,533
|
9,314,144
|
9,330,592
|
9,335,563
|
9,315,544
|
|
Commitments and contingent liabilities
|
|
|
|
|
|
|
Preferred stock
|
231,128
|
231,128
|
269,071
|
269,071
|
269,071
|
|
Common stock
|
518
|
518
|
517
|
517
|
517
|
|
Common stock, class B non-voting non-convertible
|
5
|
5
|
4
|
5
|
5
|
|
Additional paid-in capital
|
625,834
|
624,789
|
623,372
|
623,483
|
621,435
|
|
Retained earnings
|
140,952
|
140,971
|
143,880
|
141,008
|
144,839
|
|
Treasury stock
|
(28,786)
|
(28,786)
|
(28,786)
|
(28,786)
|
(28,786)
|
|
Accumulated other comprehensive (loss) income, net
|
(24,117)
|
(21,947)
|
(19,370)
|
(11,542)
|
5,227
|
|
Total stockholders' equity
|
945,534
|
946,678
|
988,688
|
993,756
|
1,012,308
|
|
Total liabilities and stockholders' equity
|
$ 10,630,067
|
$ 10,260,822
|
$ 10,319,280
|
$ 10,329,319
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$ 10,327,852
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Banc of California, Inc.
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Consolidated Statements of Operations
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(Dollars in thousands, except per share data)
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(Unaudited)
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Three Months Ended
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Year Ended
|
|
December 31,
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September 30,
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June 30,
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March 31,
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December 31,
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December 31,
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December 31,
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|
2018
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2018
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2018
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2018
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2017
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2018
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2017
|
|
Interest and dividend income
|
|
|
|
|
|
|
|
|
Loans, including fees
|
$ 88,258
|
$ 84,795
|
$ 81,307
|
$ 74,912
|
$ 71,695
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$ 329,272
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$ 281,071
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Securities
|
19,882
|
20,599
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21,455
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21,631
|
23,170
|
83,567
|
99,742
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|
Other interest-earning assets
|
2,990
|
2,380
|
2,423
|
2,164
|
2,292
|
9,957
|
8,377
|
|
Total interest and dividend income
|
111,130
|
107,774
|
105,185
|
98,707
|
97,157
|
422,796
|
389,190
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|
Interest expense
|
|
|
|
|
|
|
|
|
Deposits
|
28,972
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25,154
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20,315
|
16,795
|
16,044
|
91,236
|
60,414
|
|
Federal Home Loan Bank advances
|
9,068
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8,996
|
9,539
|
7,392
|
5,402
|
34,995
|
12,951
|
|
Securities sold under repurchase agreements
|
25
|
47
|
211
|
750
|
194
|
1,033
|
880
|
|
Notes payable and other interest-bearing liabilities
|
2,383
|
2,385
|
2,356
|
2,332
|
2,344
|
9,456
|
10,755
|
|
Total interest expense
|
40,448
|
36,582
|
32,421
|
27,269
|
23,984
|
136,720
|
85,000
|
|
Net interest income
|
70,682
|
71,192
|
72,764
|
71,438
|
73,173
|
286,076
|
304,190
|
|
Provision for loan and lease losses
|
6,653
|
1,410
|
2,653
|
19,499
|
5,052
|
30,215
|
13,699
|
|
Net interest income after provision for loan and lease losses
|
64,029
|
69,782
|
70,111
|
51,939
|
68,121
|
255,861
|
290,491
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
Customer service fees
|
1,786
|
1,446
|
1,491
|
1,592
|
1,624
|
6,315
|
6,492
|
|
Loan servicing income (loss)
|
22
|
439
|
948
|
2,311
|
(2,416)
|
3,720
|
1,025
|
|
Impairment loss on investment securities
|
(3,252)
|
-
|
-
|
-
|
-
|
(3,252)
|
-
|
|
Net gain on sale of securities available for sale
|
-
|
13
|
278
|
5,241
|
2,688
|
5,532
|
14,768
|
|
Net gain (loss) on sale of loans
|
873
|
279
|
821
|
(41)
|
1,205
|
1,932
|
11,942
|
|
All other income (loss)
|
3,019
|
2,647
|
4,523
|
(521)
|
2,594
|
9,668
|
10,443
|
|
Total noninterest income
|
2,448
|
4,824
|
8,061
|
8,582
|
5,695
|
23,915
|
44,670
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
24,587
|
24,832
|
29,440
|
31,115
|
33,146
|
109,974
|
129,153
|
|
Occupancy and equipment
|
8,064
|
8,213
|
7,883
|
7,687
|
9,565
|
31,847
|
38,391
|
|
Professional fees
|
6,206
|
11,966
|
6,303
|
9,177
|
7,853
|
33,652
|
42,417
|
|
Data processing
|
1,733
|
1,884
|
1,678
|
1,656
|
1,562
|
6,951
|
7,888
|
|
Advertising
|
3,371
|
3,152
|
2,864
|
3,277
|
1,420
|
12,664
|
5,313
|
|
Regulatory assessments
|
1,252
|
2,138
|
2,196
|
2,092
|
2,174
|
7,678
|
8,105
|
|
Reversal of provision for loan repurchases
|
(122)
|
(360)
|
(218)
|
(1,788)
|
(335)
|
(2,488)
|
(1,812)
|
|
Amortization of intangible assets
|
644
|
693
|
827
|
843
|
866
|
3,007
|
3,928
|
|
Restructuring expense
|
(105)
|
553
|
3,983
|
-
|
(43)
|
4,431
|
5,326
|
|
All other expenses
|
3,153
|
5,322
|
5,775
|
5,775
|
6,179
|
20,025
|
38,773
|
|
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships
|
48,783
|
58,393
|
60,731
|
59,834
|
62,387
|
227,741
|
277,482
|
|
Loss (gain) on investments in alternative energy partnerships
|
786
|
2,484
|
1,808
|
(34)
|
3,995
|
5,044
|
30,786
|
|
Total noninterest expense
|
49,569
|
60,877
|
62,539
|
59,800
|
66,382
|
232,785
|
308,268
|
|
Income from continuing operations before income taxes
|
16,908
|
13,729
|
15,633
|
721
|
7,434
|
46,991
|
26,893
|
|
Income tax expense (benefit)
|
6,117
|
3,301
|
1,779
|
(6,353)
|
(3,418)
|
4,844
|
(26,581)
|
|
Income from continuing operations
|
10,791
|
10,428
|
13,854
|
7,074
|
10,852
|
42,147
|
53,474
|
|
Income from discontinued operations before income taxes
|
347
|
924
|
1,281
|
2,044
|
765
|
4,596
|
7,164
|
|
Income tax expense
|
100
|
256
|
355
|
560
|
315
|
1,271
|
2,929
|
|
Income from discontinued operations
|
247
|
668
|
926
|
1,484
|
450
|
3,325
|
4,235
|
|
Net income
|
11,038
|
11,096
|
14,780
|
8,558
|
11,302
|
45,472
|
57,709
|
|
Preferred stock dividends
|
4,308
|
4,970
|
5,113
|
5,113
|
5,113
|
19,504
|
20,451
|
|
Impact of preferred stock redemption
|
-
|
2,307
|
-
|
-
|
-
|
2,307
|
-
|
|
Net income available to common stockholders
|
$ 6,730
|
$ 3,819
|
$ 9,667
|
$ 3,445
|
$ 6,189
|
$ 23,661
|
$ 37,258
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$ 0.12
|
$ 0.06
|
$ 0.17
|
$ 0.03
|
$ 0.11
|
$ 0.38
|
$ 0.64
|
|
Income from discontinued operations
|
0.01
|
0.01
|
0.02
|
0.03
|
0.01
|
0.07
|
0.08
|
|
Net income
|
$ 0.13
|
$ 0.07
|
$ 0.19
|
$ 0.06
|
$ 0.12
|
$ 0.45
|
$ 0.72
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$ 0.12
|
$ 0.06
|
$ 0.16
|
$ 0.03
|
$ 0.11
|
$ 0.38
|
$ 0.63
|
|
Income from discontinued operations
|
0.01
|
0.01
|
0.02
|
0.03
|
0.01
|
0.07
|
0.08
|
|
Net income
|
$ 0.13
|
$ 0.07
|
$ 0.18
|
$ 0.06
|
$ 0.12
|
$ 0.45
|
$ 0.71
|
|
Weighted average number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
50,651,805
|
50,656,076
|
50,593,429
|
50,590,545
|
50,532,544
|
50,623,222
|
50,254,595
|
|
Diluted
|
50,812,874
|
50,899,464
|
50,919,091
|
50,925,530
|
50,943,165
|
50,851,594
|
50,819,790
|
|
Dividends declared per common share
|
$ 0.13
|
$ 0.13
|
$ 0.13
|
$ 0.13
|
$ 0.13
|
$ 0.52
|
$ 0.52
|
|
Banc of California, Inc.
|
|
Reconciliation of Consolidated Statements of Operations between Continuing and Discontinued Operations
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
Three Months Ended December 31, 2018
|
Year Ended December 31, 2018
|
|
Continuing
|
Discontinued
|
Consolidated
|
Continuing
|
Discontinued
|
Consolidated
|
|
Operations
|
Operations
|
Operations
|
Operations
|
Operations
|
Operations
|
|
Interest and dividend income
|
$ 111,130
|
$ 160
|
$ 111,290
|
$ 422,796
|
$ 665
|
$ 423,461
|
|
Interest expense
|
40,448
|
-
|
40,448
|
136,720
|
-
|
136,720
|
|
Net interest income
|
70,682
|
160
|
70,842
|
286,076
|
665
|
286,741
|
|
Provision for loan and lease losses
|
6,653
|
-
|
6,653
|
30,215
|
-
|
30,215
|
|
Net interest income after provision for loan and lease losses
|
64,029
|
160
|
64,189
|
255,861
|
665
|
256,526
|
|
Noninterest income
|
|
|
|
|
|
|
|
Customer service fees
|
1,786
|
-
|
1,786
|
6,315
|
-
|
6,315
|
|
Loan servicing income
|
22
|
-
|
22
|
3,720
|
-
|
3,720
|
|
Impairment loss on investment securities
|
(3,252)
|
-
|
(3,252)
|
(3,252)
|
-
|
(3,252)
|
|
Net gain on sale of securities available for sale
|
-
|
-
|
-
|
5,532
|
-
|
5,532
|
|
Net gain on sale of loans
|
873
|
-
|
873
|
1,932
|
-
|
1,932
|
|
Mortgage banking income
|
-
|
32
|
32
|
-
|
428
|
428
|
|
Gain on disposal of discontinued operations
|
-
|
164
|
164
|
-
|
1,439
|
1,439
|
|
All other income
|
3,019
|
-
|
3,019
|
9,668
|
2,200
|
11,868
|
|
Total noninterest income
|
2,448
|
196
|
2,644
|
23,915
|
4,067
|
27,982
|
|
Noninterest expense
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
24,587
|
-
|
24,587
|
109,974
|
20
|
109,994
|
|
Occupancy and equipment
|
8,064
|
-
|
8,064
|
31,847
|
-
|
31,847
|
|
Professional fees
|
6,206
|
-
|
6,206
|
33,652
|
-
|
33,652
|
|
Data processing
|
1,733
|
8
|
1,741
|
6,951
|
8
|
6,959
|
|
Advertising
|
3,371
|
-
|
3,371
|
12,664
|
-
|
12,664
|
|
Regulatory assessments
|
1,252
|
-
|
1,252
|
7,678
|
-
|
7,678
|
|
Reversal of provision for loan repurchases
|
(122)
|
-
|
(122)
|
(2,488)
|
-
|
(2,488)
|
|
Loss on investments in alternative energy partnerships
|
786
|
-
|
786
|
5,044
|
-
|
5,044
|
|
Amortization of intangible assets
|
644
|
-
|
644
|
3,007
|
-
|
3,007
|
|
Restructuring expense
|
(105)
|
-
|
(105)
|
4,431
|
-
|
4,431
|
|
All other expenses
|
3,153
|
1
|
3,154
|
20,025
|
108
|
20,133
|
|
Total noninterest expense
|
49,569
|
9
|
49,578
|
232,785
|
136
|
232,921
|
|
Income before income taxes
|
16,908
|
347
|
17,255
|
46,991
|
4,596
|
51,587
|
|
Income tax expense
|
6,117
|
100
|
6,217
|
4,844
|
1,271
|
6,115
|
|
Net income
|
$ 10,791
|
$ 247
|
$ 11,038
|
$ 42,147
|
$ 3,325
|
$ 45,472
|
|
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,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
2018
|
2017
|
|
Profitability and other ratios of consolidated operations
|
|
|
|
|
|
|
|
|
Return on average assets(1)
|
0.43%
|
0.43%
|
0.58%
|
0.34%
|
0.44%
|
0.44%
|
0.55%
|
|
Return on average equity (1)
|
4.56%
|
4.40%
|
5.92%
|
3.40%
|
4.42%
|
4.57%
|
5.72%
|
|
Return on average tangible common equity(2)
|
4.19%
|
2.49%
|
6.03%
|
2.37%
|
3.84%
|
3.76%
|
5.79%
|
|
Dividend payout ratio (3)
|
100.00%
|
185.71%
|
68.42%
|
216.67%
|
108.33%
|
115.56%
|
72.22%
|
|
Net interest spread
|
2.56%
|
2.62%
|
2.75%
|
2.74%
|
2.79%
|
2.67%
|
2.92%
|
|
Net interest margin(1)
|
2.88%
|
2.93%
|
3.01%
|
2.98%
|
3.01%
|
2.95%
|
3.11%
|
|
Noninterest income to total revenue (4)
|
3.60%
|
7.42%
|
11.16%
|
12.73%
|
8.07%
|
8.89%
|
25.19%
|
|
Noninterest income to average total assets(1)
|
0.10%
|
0.22%
|
0.36%
|
0.41%
|
0.25%
|
0.27%
|
0.99%
|
|
Noninterest expense to average total assets(1)
|
1.92%
|
2.38%
|
2.45%
|
2.36%
|
2.59%
|
2.28%
|
3.50%
|
|
Efficiency ratio(5)
|
67.47%
|
79.15%
|
76.17%
|
72.87%
|
83.37%
|
74.01%
|
88.52%
|
|
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships (2) , (5)
|
67.09%
|
77.88%
|
73.50%
|
65.70%
|
75.46%
|
70.87%
|
77.18%
|
|
Average held-for-investment loans and leases to average deposits
|
97.40%
|
97.00%
|
98.63%
|
94.87%
|
86.09%
|
96.99%
|
75.92%
|
|
Average investment securities to average total assets
|
19.85%
|
21.28%
|
22.27%
|
24.60%
|
26.10%
|
21.99%
|
28.04%
|
|
Average stockholders' equity to average total assets
|
9.38%
|
9.85%
|
9.78%
|
9.94%
|
9.98%
|
9.73%
|
9.58%
|
|
Allowance for loan and lease losses (ALLL)
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$ 57,782
|
$ 56,678
|
$ 54,763
|
$ 49,333
|
$ 45,072
|
$ 49,333
|
$ 40,444
|
|
Loans and leases charged off
|
(2,522)
|
(388)
|
(950)
|
(14,639)
|
(1,367)
|
(18,499)
|
(5,581)
|
|
Recoveries
|
279
|
82
|
212
|
570
|
576
|
1,143
|
771
|
|
Provision for loan and lease losses
|
6,653
|
1,410
|
2,653
|
19,499
|
5,052
|
30,215
|
13,699
|
|
Balance at end of period
|
$ 62,192
|
$ 57,782
|
$ 56,678
|
$ 54,763
|
$ 49,333
|
$ 62,192
|
$ 49,333
|
|
Annualized net loan charge-offs to average total loans and leases held-for-investment
|
0.12%
|
0.02%
|
0.04%
|
0.84%
|
0.05%
|
0.25%
|
0.11%
|
|
Reserve for loss on repurchased loans
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$ 2,575
|
$ 3,149
|
$ 3,426
|
$ 6,306
|
$ 6,173
|
6,306
|
$ 7,974
|
|
Reversal of provision for loan repurchases
|
(69)
|
(342)
|
(165)
|
(1,786)
|
(326)
|
(2,362)
|
(190)
|
|
Utilization of reserve for loan repurchases
|
-
|
(232)
|
(112)
|
(1,094)
|
(301)
|
(1,438)
|
(2,238)
|
|
Other adjustments
|
-
|
-
|
-
|
-
|
760
|
-
|
760
|
|
Balance at end of period
|
$ 2,506
|
$ 2,575
|
$ 3,149
|
$ 3,426
|
$ 6,306
|
$ 2,506
|
$ 6,306
|
|
|
|
(1)
|
Ratios are presented on an annualized basis.
|
|
(2)
|
The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP).
|
|
See Non-GAAP measures section for reconciliation of the calculation.
|
|
(3)
|
The ratio is calculated by dividing dividends declared per common share by basic earnings per common share.
|
|
(4)
|
Total revenue is equal to the sum of net interest income before provision for loan and lease losses and noninterest income.
|
|
(5)
|
The ratios are 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,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
|
Asset quality information and ratios
|
|
|
|
|
|
|
Delinquent loans and leases held-for-investment
|
|
|
|
|
|
|
30 to 89 days delinquent
|
$ 26,684
|
$ 20,265
|
$ 15,097
|
$ 31,936
|
$ 32,087
|
|
90+ days delinquent
|
13,846
|
15,269
|
11,453
|
11,526
|
9,542
|
|
Total delinquent loans
|
$ 40,530
|
$ 35,534
|
$ 26,550
|
$ 43,462
|
$ 41,629
|
|
Total delinquent loans and leases to total loans and leases
|
0.53%
|
0.49%
|
0.38%
|
0.63%
|
0.63%
|
|
Non-performing assets, excluding loans held-for-sale
|
|
|
|
|
|
|
Non-performing loans and leases
|
$ 21,585
|
$ 25,523
|
$ 22,290
|
$ 21,220
|
$ 19,382
|
|
90+ days delinquent and still accruing loans and leases
|
470
|
-
|
-
|
-
|
-
|
|
Other real estate owned
|
672
|
434
|
710
|
1,024
|
1,796
|
|
Non-performing assets
|
$ 22,727
|
$ 25,957
|
$ 23,000
|
$ 22,244
|
$ 21,178
|
|
ALLL to non-performing loans and leases
|
281.99%
|
226.39%
|
254.28%
|
258.07%
|
254.53%
|
|
Non-performing loans and leases to total loans and leases
|
0.29%
|
0.35%
|
0.32%
|
0.31%
|
0.29%
|
|
Non-performing assets to total assets
|
0.21%
|
0.25%
|
0.22%
|
0.22%
|
0.21%
|
|
Troubled debt restructurings (TDRs)
|
|
|
|
|
|
|
Performing TDRs
|
$ 5,745
|
$ 5,580
|
$ 5,648
|
$ 5,787
|
$ 5,646
|
|
Non-performing TDRs
|
2,276
|
2,684
|
2,701
|
2,632
|
2,675
|
|
Total TDRs
|
$ 8,021
|
$ 8,264
|
$ 8,349
|
$ 8,419
|
$ 8,321
|
|
Loans and leases and ALLL by loan origination type
|
|
|
|
|
|
|
Loan and lease breakdown by origination type
|
|
|
|
|
|
|
Originated loans and leases
|
$ 7,105,171
|
$ 6,683,683
|
$ 6,446,127
|
$ 6,295,843
|
$ 5,988,101
|
|
Acquired loans not impaired at acquisition
|
595,702
|
569,610
|
589,877
|
634,664
|
671,306
|
|
Total loans and leases
|
$ 7,700,873
|
$ 7,253,293
|
$ 7,036,004
|
$ 6,930,507
|
$ 6,659,407
|
|
ALLL breakdown by origination type
|
|
|
|
|
|
|
Originated loans and leases
|
$ 61,256
|
$ 56,672
|
$ 55,534
|
$ 53,605
|
$ 48,110
|
|
Acquired loans not impaired at acquisition
|
937
|
1,110
|
1,144
|
1,158
|
1,223
|
|
Total ALLL
|
$ 62,193
|
$ 57,782
|
$ 56,678
|
$ 54,763
|
$ 49,333
|
|
Discount on Purchased/Acquired Loans
|
|
|
|
|
|
|
Acquired loans not impaired at acquisition
|
$ 11,645
|
$ 12,311
|
$ 12,932
|
$ 14,255
|
$ 14,943
|
|
Total Discount
|
$ 11,645
|
$ 12,311
|
$ 12,932
|
$ 14,255
|
$ 14,943
|
|
Percentage of ALLL to:
|
|
|
|
|
|
|
Originated loans and leases
|
0.86%
|
0.85%
|
0.86%
|
0.85%
|
0.80%
|
|
Originated loans and leases and acquired loans not impaired at acquisition
|
0.81%
|
0.80%
|
0.81%
|
0.79%
|
0.74%
|
|
Total loans and leases
|
0.81%
|
0.80%
|
0.81%
|
0.79%
|
0.74%
|
|
Banc of California, Inc.
|
|
Selected Financial Data, Continued
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
|
Composition of held-for-investment loans and leases
|
|
|
|
|
|
|
Commercial real estate
|
$ 867,013
|
$ 823,193
|
$ 793,855
|
$ 773,193
|
$ 717,415
|
|
Multifamily
|
2,241,246
|
2,112,190
|
1,959,965
|
1,944,082
|
1,816,141
|
|
Construction
|
203,976
|
200,294
|
211,110
|
200,766
|
182,960
|
|
Commercial and industrial
|
1,944,142
|
1,673,055
|
1,742,559
|
1,638,559
|
1,701,951
|
|
SBA
|
68,741
|
71,494
|
78,092
|
79,022
|
78,699
|
|
Lease financing
|
-
|
-
|
-
|
3
|
13
|
|
Total commercial loans
|
5,325,118
|
4,880,226
|
4,785,581
|
4,635,625
|
4,497,179
|
|
Single family residential mortgage
|
2,305,490
|
2,300,069
|
2,174,183
|
2,201,358
|
2,055,649
|
|
Other consumer
|
70,265
|
72,998
|
76,240
|
93,524
|
106,579
|
|
Total consumer loans
|
2,375,755
|
2,373,067
|
2,250,423
|
2,294,882
|
2,162,228
|
|
Total gross loans and leases
|
$ 7,700,873
|
$ 7,253,293
|
$ 7,036,004
|
$ 6,930,507
|
$ 6,659,407
|
|
Composition percentage of held-for-investment loans and leases
|
|
|
|
|
|
|
Commercial real estate
|
11.3%
|
11.3%
|
11.3%
|
11.2%
|
10.8%
|
|
Multifamily
|
29.2%
|
29.1%
|
27.9%
|
28.1%
|
27.3%
|
|
Construction
|
2.6%
|
2.8%
|
3.0%
|
2.9%
|
2.7%
|
|
Commercial and industrial
|
25.2%
|
23.1%
|
24.8%
|
23.6%
|
25.5%
|
|
SBA
|
0.9%
|
1.0%
|
1.1%
|
1.1%
|
1.2%
|
|
Lease financing
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
|
Total commercial loans
|
69.2%
|
67.3%
|
68.1%
|
66.9%
|
67.5%
|
|
Single family residential mortgage
|
29.9%
|
31.7%
|
30.9%
|
31.8%
|
30.9%
|
|
Other consumer
|
0.9%
|
1.0%
|
1.0%
|
1.3%
|
1.6%
|
|
Total consumer loans
|
30.8%
|
32.7%
|
31.9%
|
33.1%
|
32.5%
|
|
Total gross loans and leases
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
|
Composition of deposits
|
|
|
|
|
|
|
Noninterest-bearing checking
|
$ 1,023,360
|
$ 1,061,557
|
$ 1,005,032
|
$ 1,039,116
|
$ 1,071,608
|
|
Interest-bearing checking
|
1,556,410
|
1,713,790
|
1,778,400
|
1,864,629
|
2,089,016
|
|
Money market
|
873,153
|
856,886
|
1,136,335
|
1,091,735
|
1,146,859
|
|
Savings
|
1,265,847
|
1,269,489
|
1,175,275
|
1,051,267
|
1,059,628
|
|
Brokered certificates of deposit
|
1,543,269
|
987,771
|
686,203
|
974,706
|
915,623
|
|
Non-brokered certificates of deposit
|
1,654,605
|
1,512,249
|
1,354,549
|
1,088,712
|
1,010,169
|
|
Total deposits
|
$ 7,916,644
|
$ 7,401,742
|
$ 7,135,794
|
$ 7,110,165
|
$ 7,292,903
|
|
Composition percentage of deposits
|
|
|
|
|
|
|
Noninterest-bearing checking
|
12.9%
|
14.3%
|
14.1%
|
14.6%
|
14.7%
|
|
Interest-bearing checking
|
19.7%
|
23.2%
|
24.9%
|
26.2%
|
28.7%
|
|
Money market
|
11.0%
|
11.6%
|
15.9%
|
15.4%
|
15.7%
|
|
Savings
|
16.0%
|
17.2%
|
16.5%
|
14.8%
|
14.5%
|
|
Brokered certificates of deposit
|
19.5%
|
13.3%
|
9.6%
|
13.7%
|
12.5%
|
|
Non-brokered certificates of deposit
|
20.9%
|
20.4%
|
19.0%
|
15.3%
|
13.9%
|
|
Total deposits
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
|
Capital Ratios
|
|
|
|
|
|
|
Banc of California, Inc.
|
|
|
|
|
|
|
Total risk-based capital ratio
|
13.71%
|
14.05%
|
14.71%
|
14.60%
|
14.56%
|
|
Tier 1 risk-based capital ratio
|
12.77%
|
13.15%
|
13.83%
|
13.74%
|
13.79%
|
|
Common equity tier 1 capital ratio
|
9.53%
|
9.80%
|
9.90%
|
9.80%
|
9.92%
|
|
Tier 1 leverage ratio
|
8.95%
|
8.99%
|
9.30%
|
9.21%
|
9.39%
|
|
Banc of California, NA
|
|
|
|
|
|
|
Total risk-based capital ratio
|
15.71%
|
15.94%
|
16.63%
|
16.53%
|
16.56%
|
|
Tier 1 risk-based capital ratio
|
14.77%
|
15.04%
|
15.74%
|
15.67%
|
15.78%
|
|
Common equity tier 1 capital ratio
|
14.77%
|
15.04%
|
15.74%
|
15.67%
|
15.78%
|
|
Tier 1 leverage ratio
|
10.36%
|
10.29%
|
10.58%
|
10.50%
|
10.67%
|
|
Banc of California, Inc.
|
|
Average Balance, Average Yield Earned, and Average Cost Paid
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
December 31, 2018
|
September 30, 2018
|
June 30, 2018
|
|
Average
|
|
Yield
|
Average
|
|
Yield
|
Average
|
|
Yield
|
|
Balance
|
Interest
|
/ Cost
|
Balance
|
Interest
|
/ Cost
|
Balance
|
Interest
|
/ Cost
|
|
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
Loans held-for-sale (1)
|
$ 33,243
|
$ 221
|
2.64%
|
$ 42,754
|
$ 263
|
2.44%
|
$ 54,791
|
$ 328
|
2.40%
|
|
SFR mortgage
|
2,260,205
|
23,585
|
4.14%
|
2,222,602
|
23,461
|
4.19%
|
2,223,608
|
22,790
|
4.11%
|
|
Seasoned SFR mortgage loan pools
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Commercial real estate, multifamily, and construction
|
3,246,860
|
37,403
|
4.57%
|
3,091,706
|
35,838
|
4.60%
|
2,989,014
|
33,736
|
4.53%
|
|
Commercial and industrial, SBA, and lease financing
|
1,791,708
|
26,219
|
5.81%
|
1,739,711
|
24,382
|
5.56%
|
1,707,478
|
23,664
|
5.56%
|
|
Other consumer
|
68,479
|
990
|
5.74%
|
69,600
|
981
|
5.59%
|
80,188
|
978
|
4.89%
|
|
Gross loans and leases
|
7,400,495
|
88,418
|
4.74%
|
7,166,373
|
84,925
|
4.70%
|
7,055,079
|
81,496
|
4.63%
|
|
Securities
|
2,032,632
|
19,882
|
3.88%
|
2,163,037
|
20,599
|
3.78%
|
2,279,416
|
21,455
|
3.78%
|
|
Other interest-earning assets
|
318,419
|
2,990
|
3.73%
|
335,160
|
2,380
|
2.82%
|
392,342
|
2,423
|
2.48%
|
|
Total interest-earning assets
|
9,751,546
|
111,290
|
4.53%
|
9,664,570
|
107,904
|
4.43%
|
9,726,837
|
105,374
|
4.35%
|
|
Allowance for loan and lease losses
|
(58,099)
|
|
|
(56,730)
|
|
|
(54,903)
|
|
|
|
BOLI and non-interest earning assets
|
544,302
|
|
|
554,636
|
|
|
565,224
|
|
|
|
Total assets
|
$ 10,237,749
|
|
|
$ 10,162,476
|
|
|
$ 10,237,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$ 1,279,155
|
5,663
|
1.76%
|
$ 1,231,696
|
5,122
|
1.65%
|
$ 1,055,693
|
3,886
|
1.48%
|
|
Interest-bearing checking
|
1,666,884
|
4,916
|
1.17%
|
1,789,679
|
5,054
|
1.12%
|
1,822,856
|
4,182
|
0.92%
|
|
Money market
|
803,157
|
3,168
|
1.56%
|
966,165
|
3,455
|
1.42%
|
1,134,280
|
3,689
|
1.30%
|
|
Certificates of deposit
|
2,759,665
|
15,225
|
2.19%
|
2,332,181
|
11,523
|
1.96%
|
2,079,932
|
8,558
|
1.65%
|
|
Total interest-bearing deposits
|
6,508,861
|
28,972
|
1.77%
|
6,319,721
|
25,154
|
1.58%
|
6,092,761
|
20,315
|
1.34%
|
|
FHLB advances
|
1,447,348
|
9,068
|
2.49%
|
1,528,674
|
8,996
|
2.33%
|
1,827,307
|
9,539
|
2.09%
|
|
Securities sold under repurchase agreements
|
3,116
|
25
|
3.18%
|
6,418
|
47
|
2.91%
|
29,907
|
211
|
2.83%
|
|
Long-term debt and other interest-bearing liabilities
|
174,281
|
2,383
|
5.42%
|
174,361
|
2,385
|
5.43%
|
174,296
|
2,356
|
5.42%
|
|
Total interest-bearing liabilities
|
8,133,606
|
40,448
|
1.97%
|
8,029,174
|
36,582
|
1.81%
|
8,124,271
|
32,421
|
1.60%
|
|
Noninterest-bearing deposits
|
1,054,790
|
|
|
1,023,890
|
|
|
1,004,502
|
|
|
|
Non-interest-bearing liabilities
|
89,111
|
|
|
108,593
|
|
|
107,529
|
|
|
|
Total liabilities
|
9,277,507
|
|
|
9,161,657
|
|
|
9,236,302
|
|
|
|
Total stockholders' equity
|
960,242
|
|
|
1,000,819
|
|
|
1,000,856
|
|
|
|
Total liabilities and stockholders' equity
|
$ 10,237,749
|
|
|
$ 10,162,476
|
|
|
$ 10,237,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
|
|
$ 70,842
|
2.56%
|
|
$ 71,322
|
2.62%
|
|
$ 72,953
|
2.75%
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
2.88%
|
|
|
2.93%
|
|
|
3.01%
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
119.89%
|
|
|
120.37%
|
|
|
119.73%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
$ 7,563,651
|
$ 28,972
|
1.52%
|
$ 7,343,611
|
$ 25,154
|
1.36%
|
$ 7,097,263
|
$ 20,315
|
1.15%
|
|
Total funding (2)
|
$ 9,188,396
|
$ 40,448
|
1.75%
|
$ 9,053,064
|
$ 36,582
|
1.60%
|
$ 9,128,773
|
$ 32,421
|
1.42%
|
|
|
|
(1)
|
Includes loans held-for-sale of discontinued operations.
|
|
(2)
|
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, 2018
|
December 31, 2017
|
|
Average
|
|
Yield
|
Average
|
|
Yield
|
|
Balance
|
Interest
|
/ Cost
|
Balance
|
Interest
|
/ Cost
|
|
Interest earning assets
|
|
|
|
|
|
|
|
Loans held-for-sale (1)
|
$ 97,095
|
$ 297
|
1.24%
|
$ 127,139
|
$ 363
|
1.13%
|
|
SFR mortgage
|
2,122,666
|
21,352
|
4.08%
|
1,957,754
|
19,487
|
3.95%
|
|
Seasoned SFR mortgage loan pools
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Commercial real estate, multifamily, and construction
|
2,856,290
|
31,439
|
4.46%
|
2,613,940
|
29,696
|
4.51%
|
|
Commercial and industrial, SBA, and lease financing
|
1,625,549
|
20,850
|
5.20%
|
1,630,886
|
20,989
|
5.11%
|
|
Other consumer
|
103,676
|
1,160
|
4.54%
|
107,664
|
1,233
|
4.54%
|
|
Gross loans and leases
|
6,805,276
|
75,098
|
4.48%
|
6,437,383
|
71,768
|
4.42%
|
|
Securities
|
2,525,220
|
21,631
|
3.47%
|
2,653,838
|
23,170
|
3.46%
|
|
Other interest-earning assets
|
407,064
|
2,164
|
2.16%
|
548,171
|
2,292
|
1.66%
|
|
Total interest-earning assets
|
9,737,560
|
98,893
|
4.12%
|
9,639,392
|
97,230
|
4.00%
|
|
Allowance for loan and lease losses
|
(49,257)
|
|
|
(45,681)
|
|
|
|
BOLI and non-interest earning assets
|
574,930
|
|
|
572,692
|
|
|
|
Total assets
|
$ 10,263,233
|
|
|
$ 10,166,403
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
Savings
|
$ 1,055,338
|
3,300
|
1.27%
|
$ 1,019,659
|
2,947
|
1.15%
|
|
Interest-bearing checking
|
1,976,160
|
4,108
|
0.84%
|
2,082,677
|
4,267
|
0.81%
|
|
Money market
|
1,076,117
|
2,834
|
1.07%
|
1,294,537
|
3,262
|
1.00%
|
|
Certificates of deposit
|
1,906,556
|
6,553
|
1.39%
|
1,822,010
|
5,568
|
1.21%
|
|
Total interest-bearing deposits
|
6,014,171
|
16,795
|
1.13%
|
6,218,883
|
16,044
|
1.02%
|
|
FHLB advances
|
1,711,089
|
7,392
|
1.75%
|
1,448,326
|
5,402
|
1.48%
|
|
Securities sold under repurchase agreements
|
119,543
|
750
|
2.54%
|
33,513
|
194
|
2.30%
|
|
Long-term debt and other interest-bearing liabilities
|
174,424
|
2,332
|
5.42%
|
174,066
|
2,344
|
5.34%
|
|
Total interest-bearing liabilities
|
8,019,227
|
27,269
|
1.38%
|
7,874,788
|
23,984
|
1.21%
|
|
Noninterest-bearing deposits
|
1,056,700
|
|
|
1,110,815
|
|
|
|
Non-interest-bearing liabilities
|
167,345
|
|
|
166,432
|
|
|
|
Total liabilities
|
9,243,272
|
|
|
9,152,035
|
|
|
|
Total stockholders' equity
|
1,019,961
|
|
|
1,014,368
|
|
|
|
Total liabilities and stockholders' equity
|
$ 10,263,233
|
|
|
$ 10,166,403
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
|
|
$ 71,624
|
2.74%
|
|
$ 73,246
|
2.79%
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
2.98%
|
|
|
3.01%
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
121.43%
|
|
|
122.41%
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
$ 7,070,871
|
$ 16,795
|
0.96%
|
$ 7,329,698
|
$ 16,044
|
0.87%
|
|
Total funding (2)
|
$ 9,075,927
|
$ 27,269
|
1.22%
|
$ 8,985,603
|
$ 23,984
|
1.06%
|
|
|
|
(1)
|
Includes loans held-for-sale of discontinued operations.
|
|
(2)
|
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, 2018
|
December 31, 2017
|
|
Average
|
|
Yield
|
Average
|
|
Yield
|
|
Balance
|
Interest
|
/ Cost
|
Balance
|
Interest
|
/ Cost
|
|
Interest earning assets
|
|
|
|
|
|
|
|
Loans held-for-sale (1)
|
$ 56,757
|
$ 1,109
|
1.95%
|
$ 410,266
|
$ 13,669
|
3.33%
|
|
SFR mortgage
|
2,207,689
|
91,188
|
4.13%
|
1,882,086
|
74,033
|
3.93%
|
|
Seasoned SFR mortgage loan pools
|
-
|
-
|
-
|
97,195
|
5,474
|
5.63%
|
|
Commercial real estate, multifamily, and construction
|
3,047,164
|
138,416
|
4.54%
|
2,460,614
|
108,508
|
4.41%
|
|
Commercial and industrial, SBA, and lease financing
|
1,716,631
|
95,115
|
5.54%
|
1,565,065
|
81,175
|
5.19%
|
|
Other consumer
|
80,359
|
4,109
|
5.11%
|
115,843
|
5,264
|
4.54%
|
|
Gross loans and leases
|
7,108,600
|
329,937
|
4.64%
|
6,531,069
|
288,123
|
4.41%
|
|
Securities
|
2,248,488
|
83,567
|
3.72%
|
2,954,235
|
99,742
|
3.38%
|
|
Other interest-earning assets
|
362,927
|
9,957
|
2.74%
|
516,832
|
8,377
|
1.62%
|
|
Total interest-earning assets
|
9,720,015
|
423,461
|
4.36%
|
10,002,136
|
396,242
|
3.96%
|
|
Allowance for loan and lease losses
|
(54,777)
|
|
|
(43,150)
|
|
|
|
BOLI and non-interest earning assets
|
559,675
|
|
|
575,363
|
|
|
|
Total assets
|
$ 10,224,913
|
|
|
$ 10,534,349
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
Savings
|
$ 1,156,292
|
17,971
|
1.55%
|
$ 1,007,990
|
9,764
|
0.97%
|
|
Interest-bearing checking
|
1,812,980
|
18,261
|
1.01%
|
2,035,954
|
15,161
|
0.74%
|
|
Money market
|
994,103
|
13,146
|
1.32%
|
2,076,847
|
18,530
|
0.89%
|
|
Certificates of deposit
|
2,272,093
|
41,858
|
1.84%
|
1,730,652
|
16,959
|
0.98%
|
|
Total interest-bearing deposits
|
6,235,468
|
91,236
|
1.46%
|
6,851,443
|
60,414
|
0.88%
|
|
FHLB advances
|
1,627,608
|
34,995
|
2.15%
|
1,054,978
|
12,951
|
1.23%
|
|
Securities sold under repurchase agreements
|
39,336
|
1,033
|
2.63%
|
39,907
|
880
|
2.21%
|
|
Long-term debt and other interest-bearing liabilities
|
174,340
|
9,456
|
5.42%
|
207,734
|
10,755
|
5.18%
|
|
Total interest-bearing liabilities
|
8,076,752
|
136,720
|
1.69%
|
8,154,062
|
85,000
|
1.04%
|
|
Noninterest-bearing deposits
|
1,034,937
|
|
|
1,182,667
|
|
|
|
Non-interest-bearing liabilities
|
117,904
|
|
|
188,625
|
|
|
|
Total liabilities
|
9,229,593
|
|
|
9,525,354
|
|
|
|
Total stockholders' equity
|
995,320
|
|
|
1,008,995
|
|
|
|
Total liabilities and stockholders' equity
|
$ 10,224,913
|
|
|
$ 10,534,349
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread
|
|
$ 286,741
|
2.67%
|
|
$ 311,242
|
2.92%
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
2.95%
|
|
|
3.11%
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-bearing liabilities
|
120.35%
|
|
|
122.66%
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
$ 7,270,405
|
$ 91,236
|
1.25%
|
$ 8,034,110
|
$ 60,414
|
0.75%
|
|
Total funding (2)
|
$ 9,111,689
|
$ 136,720
|
1.50%
|
$ 9,336,729
|
$ 85,000
|
0.91%
|
|
|
|
(1)
|
Includes loans held-for-sale of discontinued operations.
|
|
(2)
|
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.
|
|
Consolidated Operations
|
|
Non-GAAP Measures
|
|
(Dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
Under Item 10(e) of SEC Regulation S-K, public companies disclosing financial measures in filings with the SEC that are not calculated in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a presentation of the most directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a statement of the reasons why the company's management believes that presentation of the non-GAAP financial measure provides useful information to investors regarding the company's financial condition and results of operations and, to the extent material, a statement of the additional purposes, if any, for which the company's management uses the non-GAAP financial measure.
|
|
|
Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity to tangible assets, and tangible common equity per common share constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.
|
|
|
Tangible common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders' equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from 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 pre-tax return, which includes the loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company.
|
|
|
This disclosure should not be viewed as a substitute 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 provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.
|
|
|
|
|
|
|
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
|
Tangible common equity to tangible assets ratio
|
|
|
|
|
|
|
Total assets
|
$ 10,630,067
|
$ 10,260,822
|
$ 10,319,280
|
$ 10,329,319
|
$ 10,327,852
|
|
Less goodwill
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
|
Less other intangible assets
|
(6,346)
|
(6,990)
|
(7,683)
|
(8,510)
|
(9,353)
|
|
Tangible assets
|
$ 10,586,577
|
$ 10,216,688
|
$ 10,274,453
|
$ 10,283,665
|
$ 10,281,355
|
|
|
|
|
|
|
|
Total stockholders' equity
|
$ 945,534
|
$ 946,678
|
$ 988,688
|
$ 993,756
|
$ 1,012,308
|
|
Less goodwill
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
|
Less other intangible assets
|
(6,346)
|
(6,990)
|
(7,683)
|
(8,510)
|
(9,353)
|
|
Tangible equity
|
902,044
|
902,544
|
943,861
|
948,102
|
965,811
|
|
Less preferred stock
|
(231,128)
|
(231,128)
|
(269,071)
|
(269,071)
|
(269,071)
|
|
Tangible common equity
|
$ 670,916
|
$ 671,416
|
$ 674,790
|
$ 679,031
|
$ 696,740
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets
|
8.89%
|
9.23%
|
9.58%
|
9.62%
|
9.80%
|
|
Tangible equity to tangible assets
|
8.52%
|
8.83%
|
9.19%
|
9.22%
|
9.39%
|
|
Tangible common equity to tangible assets
|
6.34%
|
6.57%
|
6.57%
|
6.60%
|
6.78%
|
|
|
|
|
|
|
|
Common stock outstanding
|
50,172,018
|
50,180,607
|
50,142,955
|
50,079,736
|
50,083,345
|
|
Class B non-voting non-convertible common stock outstanding
|
477,321
|
477,321
|
403,778
|
508,107
|
508,107
|
|
Total common stock outstanding
|
50,649,339
|
50,657,928
|
50,546,733
|
50,587,843
|
50,591,452
|
|
|
|
|
|
|
|
Tangible common equity per common stock
|
$ 13.25
|
$ 13.25
|
$ 13.35
|
$ 13.42
|
$ 13.77
|
|
Book value per common stock
|
$ 14.10
|
$ 14.13
|
$ 14.24
|
$ 14.33
|
$ 14.69
|
|
Banc of California, Inc.
|
|
Consolidated Operations
|
|
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,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
2018
|
2017
|
|
Return on tangible common equity
|
|
|
|
|
|
|
|
|
Average total stockholders' equity
|
$ 960,242
|
$ 1,000,819
|
$ 1,000,856
|
$ 1,019,961
|
$ 1,014,368
|
$ 995,320
|
$ 1,008,995
|
|
Less average preferred stock
|
(231,128)
|
(260,822)
|
(269,071)
|
(269,071)
|
(269,071)
|
(257,428)
|
(269,071)
|
|
Less average goodwill
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,144)
|
(37,656)
|
|
Less average other intangible assets
|
(6,731)
|
(7,412)
|
(8,110)
|
(8,972)
|
(9,788)
|
(7,799)
|
(11,375)
|
|
Average tangible common equity
|
$ 685,239
|
$ 695,441
|
$ 686,531
|
$ 704,774
|
$ 698,365
|
$ 692,949
|
$ 690,893
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 11,038
|
$ 11,096
|
$ 14,780
|
$ 8,558
|
$ 11,302
|
$ 45,472
|
$ 57,709
|
|
Less preferred stock dividends and impact of preferred stock redemption
|
(4,308)
|
(7,277)
|
(5,113)
|
(5,113)
|
(5,113)
|
(21,811)
|
(20,451)
|
|
Add amortization of intangible assets
|
644
|
693
|
827
|
843
|
866
|
3,007
|
3,928
|
|
Add impairment on intangible assets
|
-
|
-
|
-
|
-
|
-
|
-
|
336
|
|
Less tax effect on amortization and impairment of intangible assets
|
(135)
|
(146)
|
(174)
|
(177)
|
(303)
|
(631)
|
(1,492)
|
|
Net income available to common stockholders
|
$ 7,239
|
$ 4,366
|
$ 10,320
|
$ 4,111
|
$ 6,752
|
$ 26,037
|
$ 40,030
|
|
|
|
|
|
|
|
|
|
Return on average equity
|
4.56%
|
4.40%
|
5.92%
|
3.40%
|
4.42%
|
4.57%
|
5.72%
|
|
Return on average tangible common equity
|
4.19%
|
2.49%
|
6.03%
|
2.37%
|
3.84%
|
3.76%
|
5.79%
|
|
|
|
|
|
|
|
|
|
Statutory tax rate utilized for calculating tax effect on amortization and impairment of intangible assets
|
21.00%
|
21.00%
|
21.00%
|
21.00%
|
35.00%
|
21.00%
|
35.00%
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Year Ended
|
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
December 31,
|
December 31,
|
|
2018
|
2018
|
2018
|
2018
|
2017
|
2018
|
2017
|
|
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships
|
|
|
|
|
|
|
|
|
Noninterest expense
|
$ 49,578
|
$ 60,977
|
$ 62,554
|
$ 59,812
|
$ 66,424
|
$ 232,921
|
$ 368,263
|
|
(Loss) gain on investments in alternative energy partnerships
|
(786)
|
(2,484)
|
(1,808)
|
34
|
(3,995)
|
(5,044)
|
(30,786)
|
|
Adjusted noninterest expense
|
$ 48,792
|
$ 58,493
|
$ 60,746
|
$ 59,846
|
$ 62,429
|
$ 227,877
|
$ 337,477
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$ 70,842
|
$ 71,322
|
$ 72,953
|
$ 71,624
|
$ 73,246
|
$ 286,741
|
$ 311,242
|
|
Noninterest income
|
2,644
|
5,718
|
9,168
|
10,452
|
6,429
|
27,982
|
104,777
|
|
Total revenue
|
73,486
|
77,040
|
82,121
|
82,076
|
79,675
|
314,723
|
416,019
|
|
Tax credit from investments in alternative energy partnerships
|
-
|
412
|
1,912
|
7,323
|
4,908
|
9,647
|
38,196
|
|
Deferred tax expense on investments in alternative energy partnerships
|
-
|
(43)
|
(211)
|
(769)
|
(859)
|
(1,023)
|
(6,684)
|
|
Tax effect on tax credit and deferred tax expense
|
26
|
180
|
631
|
2,422
|
3,004
|
3,259
|
20,531
|
|
(Loss) gain on investments in alternative energy partnerships
|
(786)
|
(2,484)
|
(1,808)
|
34
|
(3,995)
|
(5,044)
|
(30,786)
|
|
Total pre-tax adjustments for investments in alternative energy partnerships
|
(760)
|
(1,935)
|
524
|
9,010
|
3,058
|
6,839
|
21,257
|
|
Adjusted total revenue
|
$ 72,726
|
$ 75,105
|
$ 82,645
|
$ 91,086
|
$ 82,733
|
$ 321,562
|
$ 437,276
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
67.47%
|
79.15%
|
76.17%
|
72.87%
|
83.37%
|
74.01%
|
88.52%
|
|
|
|
|
|
|
|
|
|
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships
|
67.09%
|
77.88%
|
73.50%
|
65.70%
|
75.46%
|
70.87%
|
77.18%
|
|
|
|
|
|
|
|
|
|
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense
|
100.00%
|
32.81%
|
27.07%
|
26.98%
|
42.59%
|
27.42%
|
39.45%
|
View original content:http://www.prnewswire.com/news-releases/banc-of-california-reports-fourth-quarter-2018-earnings-300783205.html
SOURCE Banc of California, Inc.
