Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q1 2016 Earnings Presentation
14 slides from Banc Of California's earnings presentation, Apr 21, 2016
Slide 1: Investor Presentation: 2016 First Quarter Earnings
Exhibit 99.2 Investor Presentation 2016 First Quarter Earnings April 21, 2016
Slide 2: Forward-looking Statements
Forward-looking Statements When used in this presentation and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases
Slide 3: Banc of California Franchise Value Accelerating
Banc of California Franchise Value Accelerating Banc of California winning market share and top talent $9.6 billion in Assets 14.5% ROATCE 1Q16 Record $278 million noninterest- 0.9% ROAA 1Q16 bearing deposit growth in 1Q16 #1 Performing Bank Stock Since YE2014 1 All organic growth since YE2014 Total
Slide 4: Track-Record of Compelling, Sustainable Financial Results
Track-Record of Compelling, Sustainable Financial Results Eighth Straight Quarter Exceeding Analyst Estimates Earnings per Share 1 Pretax Income 2 $0.39 $0.36 $31.0 $33.0 $27.4 $0.32 $23.8 $0.29 $0.29 $22.1 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 Return on Assets 3 ReturnonTangibleCommonEq
Slide 5: California Banking Landscape Increasingly Attractive
California Banking Landscape Increasingly Attractive California Clients and Employees Expressing Preference for California’s Bank L.A.’s ‘bank to the stars,’ City National Bank, now under Canadian ownership CITto buy OneWest Bank for more reliable funding source S.F. loses another HQ as Union Bank’s
Slide 6: Commercial Banking Segment Driving Earnings Strength
Commercial Banking Segment Driving Earnings Strength Mortgage Banking Segment Profits Expected to Accelerate in 2Q/3Q High quality earnings resulting in low earnings volatility with strong financial results 1 Net Interest Income 2 Pretax Income by Business Segment +35% $43.8 $70.4 $25.3 $31.9 $18.5
Slide 7: Noninterest Expense and Productivity
Noninterest Expense and Productivity Investments in Scalable Platform Yielding Positive Results Noninterest Expense Assets / FTE ($ in millions) ($ in millions) $5.7 $4.8 $87.9 $89.1 $4.4 $86.7 $4.0 $4.0 $4.1 $2.6 $2.2 $3.6 $3.5 $81.7 $2.7 $3.3 $0.8 $75.9 $16.5 $20.6 $16.1 $17.5 1Q14 2Q14 3Q14 4Q14
Slide 8: Deposit Growth Driven by Deepening Client Relationships
Deposit Growth Driven by Deepening Client Relationships Non-Interest Bearing Deposit Growth Evidence of Strengthening Relationships Record quarterly noninterest-bearing deposit growth of $278 million Total Deposits Noninterest-bearing Deposits ($ in billions) ($ in billions) +41% +87% $6.8 $1.4 $6.3
Slide 9: Strong Commercial Banking Loan Production
Strong Commercial Banking Loan Production On Track to Achieve 2016 Target for Total Annual Loan Production Commercial Banking Segment Loan Production ($ in millions) +66% $914 Commercial Banking segment yield of 4.2% on new loans in $823 1Q16 Mortgage Banking Segment $729 production over $1 billion
Slide 10: Capital Ratios Continue to Exceed Basel III Guidelines
Capital Ratios Continue to Exceed Basel III Guidelines Capital Structure Focused on Total Tier 1 Eligible Capital BANC Capital Ratios BASEL III Capital Requirements 13.2% 13.2% 12.1% 10.8% 4.2% 10.7% 5.1% 1.8% 3.9% 3.3% 8.5% 7.9% 7.3% 1.5% 6.6% 1.5% 1.5% 1.5% 9.0% 9.0% 8.2% 8.1% 7.4% 7.0% 6.4% 5.8%
Slide 11: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable % 1Q 2Q 3Q 4Q 1Q Change 2015 2015 2015 2015 2016 YoY NPAs/ Assets 0.71% 0.66% 0.62% 0.56% 0.46% (35%) NPAs / Equity 8.4% 6.7% 7.0% 7.1% 5.1% (39%) ALLL / NPLs 69% 81% 77% 79% 81% 17% ALLL / Total Loans 0.75% 0.78% 0.74% 0.69% 0.66% (12%) ALLL and Discount / To
Slide 12: BANC Well-Prepared to Cross $10 Billion in Assets
BANC Well-Prepared to Cross $10 Billion in Assets Organic Growth Continues to be Highly Accretive Inclusive of Regulatory Considerations Regulatory Changes Implications for BANC Stress Testing (DFAST) Credit risk analytics team already in place running stress testing of portfolio Required annual str
Slide 13: Accelerating Results Under Current Leadership
Accelerating Results Under Current Leadership Platform and Infrastructure Investments Leading to Increased Long-term Value Creation Assets 1 Deposits 1 $6.8 $9.6 $6.3 $8.2 $4.7 $6.0 $3.6 $2.9 $1.7 $1.3 $0.9 $1.0 $0.6 $0.8 2010 2011 2012 2013 2014 2015 1Q16 2010 2011 2012 2013 2014 2015 1Q16 PretaxIn
Slide 14: 2016 Guidance Implies Continued Outperformance
2016 Guidance Implies Continued Outperformance Maintaining ROATCE and ROAA with Strong Balance Sheet Growth To Yield 15%+ EPS Growth in 2016 Management expects total assets to exceed $10 billion during 2016 based on current market conditions Management expects to be subject to DFAST requirements beg