Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (March 2016)
26 slides from Banc Of California's investor presentation, Mar 4, 2016
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation March 4, 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 statementsmadewith theapprovalof an authorizedexecutiveofficer,thewords or phrases“believe,”
Slide 3: We Are California’s Bank
We Are California’s Bank Empowering California’s Diverse Private Businesses, Entrepreneurs and Communities 2
Slide 4: Banc of California Franchise Value Accelerating
Banc of California Franchise Value Accelerating Banc of California named to Forbes Magazine’s 2016 list of America’s 100 Top Banks 1 $8.2 billion in Assets 32.3%Total ShareholderReturnFY2015 $100+ million in Pretax Income 16.6% Return on Tangible Common Equity 4Q15 90 California Banking Locations 1.
Slide 5: We Empower California’s Businesses and Entrepreneurs
We Empower California’s Businesses and Entrepreneurs 2015 Loan Originations Over $7 billion 1 TotalLoans Lending Platform ($ in billions) Commercial $5.2 Commercial Real Estate Multi-Family Residential $3.9 SBA Equipment Finance Asset Backed Lines of Credit $2.4 Warehouse Construction and Rehabilita
Slide 6: We Empower California’s Diverse Communities
We Empower California’s Diverse Communities Largest Independent Bank in California with an Outstanding CRA Rating Pepperdine Clinton Global Initiative, America USC Athletics SDSU Athletics World’s Largest Financial Micro-Enterprise Program Community Commitment Financial Literacy Partnership Financia
Slide 7: 2015 Results Reflect Accelerating Profitability
2015 Results Reflect Accelerating Profitability 1 Growth Continuesto Be Accretiveto Tax-AdjustedEarnings,EPS,ROAandROTCE Proven ability to generate robust organic growth with compelling marginal economics perShare2 Earnings PretaxIncome3 $1.60 $104.3 $1.34 $0.41 $26.5 $(0.15) $7.9 4 5 FY 2013 FY 201
Slide 8: Consistent Progress Toward Long-Term Franchise Value
Consistent Progress Toward Long-Term Franchise Value Seven Straight Quarters Above Consensus EPS Estimates 1 Earnings per Share Pretax Income $0.39 $31.0 $27.4 $26.1 $0.31 $0.32 $0.32 $23.8 $0.27 $0.29 $0.29 $22.1 $0.25 $12.2 $8.5 $4.8 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Avg. 2Q14 3Q14 4Q14 1Q15 2Q15
Slide 9: Earnings Continue to Exhibit Low Volatility
Earnings Continue to Exhibit Low Volatility Reduced Contribution of Mortgage Banking Earnings has Driven Lower Earnings Volatility 1 RealizedEarnings Volatility 78% 26% 24% Median 19.6% 17% 17% 16% 14% 14% 12% 13% Median 8.6% 9% 8% 8% 9% 6% 6% 7% 4% 5% 5% 1% BANC WABC TCBI BKU COLBEWBCWAFD FRC CBF S
Slide 10: Commercial Banking Segment Drives Earnings Strength
Commercial Banking Segment Drives Earnings Strength Commercial Banking Expected to Produce over 80% of Segment Fully-Allocated Profits in 2016 Quality earnings has resulted in low earnings volatility with attractive rate of growth FY 2015 1 Pretax Income by Business Segment 2016 growth to be focused
Slide 11: Accelerating Commercial Banking Loan Production
Accelerating Commercial Banking Loan Production Achieved 2015 Target of Total Annual Loan Production of over $7 billion Commercial Banking Segment Loan Production ($ in millions) $914 Commercial Banking segment yield of 4.3% on new loans in 4Q15 Mortgage Banking Segment production of $951 million in
Slide 12: Increasingly Valuable Deposit Franchise
Increasingly Valuable Deposit Franchise Rapid Growth In Noninterest-Bearing Deposits Driving Reduced Cost of Deposits Record$540million1 of growth in coredeposit balancesduring the fourth quarter of 2015 Total Deposits Noninterest-bearing Deposits ($ in billions) ($ in millions) +35% +69% $6.3 $1,12
Slide 13: Expanding Product Offerings to Support Client Needs
Expanding Product Offerings to Support Client Needs New Products to Provide Incremental Fee-based Revenue in 2016 Expanded Product/ Service Business Unit Partners ClientNeeds Met KPIs Trust Services – PrivateBank – Traditional trust services – NoninterestIncome – Retail Bank for high net worth clien
Slide 14: Noninterest Expense and Productivity
Noninterest Expense and Productivity Investments in Scalable Platform Yielding Positive Results Noninterest Expense Assets / FTE ($ in millions) ($ in millions) $4.8 $87.9 $86.7 $4.4 $2.6 $4.0 $4.0 $4.1 $81.7 $2.7 $3.6 $3.5 $78.2 $0.8 $3.3 $75.9 $16.1 $2.6 $5.9 $20.6 $17.5 $17.6 4Q13 1Q14 2Q14 3Q14
Slide 15: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Strengthening Credit Metrics Resulting in Increased ALLL / NPL Coverage Ratio % Change 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q2015 YoY NPAs/ Assets 0.65% 0.71% 0.66% 0.62% 0.56% (14%) NPAs / Equity 7.7% 8.4% 6.7% 7.0% 7.1% (8%) ALLL / NPLs 77% 69% 81% 77% 79% 3% AL
Slide 16: We Believe in California.
We Believe in California. 1 Large and • 39.1 million population in CA 2 Attractive • Populationgrowth of 4.2%wellabovenationalaverageof 3.3% Demographic Base • CAhouseholdincomeof $61,094is15%higherthanthe nationalaverageof $53,0463 Solid and • 5.8%CAunemploymentrate4; the lowestsinceNovember2007 Im
Slide 17: California Banking Landscape Increasingly Attractive
California Banking Landscape Increasingly Attractive California Clients and Employees Expressing Preference for California Banks California’s Changing Bank Landscape Since 2005 1 Total Assets L.A.’s ‘bank to the stars,’ City National Bank, CA-based Banks (YE 2005) Status now under Canadian ownership
Slide 18: Accelerating Results Under Current Leadership
Accelerating Results Under Current Leadership Platform and Infrastructure Investments Leading to Increased Long-term Value Creation 1 Assets Deposits 1 $8.2 $6.3 $6.0 $4.7 $3.6 $2.9 $1.7 $1.3 $0.9 $1.0 $0.8 $0.6 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2 Pretax Income 3 Earnings p
Slide 19: Strong Equity Position to Support Growth
Strong Equity Position to Support Growth $200 Million+ of Equity Raised in First Quarter of 2016 New Capital Expected to Facilitate Bank’s Growth to over $10 Billion in Assets; Accelerating EPS growth 1 TangibleEquity/ TangibleAssets(TE/TA) Peer Median 9.3% 9.2% 11.2% 11.4% 11.6% 10.9% 9.1% 9.2% 9.2
Slide 20: Unbounded Opportunity for California Bank Franchises
Unbounded Opportunity for California Bank Franchises California Is Ground Zero for Emerging National Bank Franchises Asset Growth For Premier California Bank Franchises 1 Year 0 = $2 billion in Total Assets; $ in billions $70 $60 $50 $40 $30 $20 $10 $0 YR0 YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10YR1
Slide 21: Affirming and Increasing FY 2016 Guidance
Affirming and Increasing FY 2016 Guidance New Capital will Support Stronger Growth and EPS Increasing 2016 guidance with additional capital to support accelerated growth Management expects total assets to exceed $10 billion during 2H 2016 based on current market conditions. Management expects to be
Slide 22: Strong Shareholder Returns Closing the Valuation Gap
Strong Shareholder Returns Closing the Valuation Gap Valuation Provides Compelling Opportunity 1 Total Shareholder Return (FY 2015) Price / Tangible Book 2(%) FCB 45.3% WAL 257% BANC 32.3% FRC 224% OPB 31.6% CVBF 208% WAL 29.0% PACW 196% FRC 28.0% BOFI 194% BKU 26.8% OPB 186% CBF 19.7% EWBC 174% WAF
Slide 23: We Are California’s Bank.
VISION We Are California’s Bank.
Slide 24: Empowering California’s Diverse Private Businesses, Entrepreneurs and Communities
M I S SI O N Empowering California’s Diverse PrivateBusinesses, Entrepreneurs andCommunities
Slide 25: We Believe In Empowering Dreams. Strong Partnerships. California.
WE BELIEVE We Believe In Empowering Dreams. We Believe In Strong Partnerships. We Believe In California.
Slide 26: Entrepreneurialism
ENTREPRENEURIALISM Empowering Diverse Private Businesses, Entrepreneurs and Communities Through Our Gore Values OPERATIONAL : Ss SUPERIOR EXCELLENCE ANALYTICS BANC OF CALIFORNIA
Banc of California — Investor Presentation (March 2016) on 6ix