Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q2 2015 Earnings Presentation
14 slides from Banc Of California's earnings presentation, Jul 29, 2015
Slide 1: 2015 Second Quarter Earnings
2015 Second Quarter Earnings July 30, 2015 Investor Presentation Exhibit 99.2
Slide 2: 2015 Second Quarter Summary
2015 Second Quarter Summary Net Income $0.32 EPS (diluted); $0.29 prior quarter and $0.27 year ago 1.0% ROAA, 15% ROATCE Revenues Total Revenue up 23% quarter-over-quarter and 70% year-over-year Net Interest Income up 4% quarter-over-quarter and 52% year-over-year Expenses 73% efficiency ratio (cons
Slide 3: Financial Performance Targets
0.8% 1.0% 0.8% 0.9% 1.0% 12% 13% 11% 13% 15% 85% 82% 90% 77% 73% 3.88% 3.78% 3.82% 3.84% 3.92% 1% 3.75 – 4.00% Financial Performance Targets 15% 70 – 75% 1 Net Interest Margin shown for Banc of California, N.A. subsidiary. Excludes Holding Company debt interest expense. Stated Year-End 2015 Run Rate
Slide 4: Income Statement
Income Statement Prior Quarter Prior Year Net Interest Income $54.1 $52.0 $35.6 Noninterest Income 66.7 46.0 35.4 Total Revenue 120.8 98.0 70.9 Expenses (87.9) (75.9) (60.3) Pre-Tax, Pre-Provision Income 32.9 22.1 10.6 Provision 5.5 0.0 2.1 Pre-Tax Income 27.4 22.1 8.5 Tax Benefit (Expense) (11.5) (
Slide 5: Business Segment Contribution
Business Segment Contribution ($ in millions) * Figures may not foot due to rounding. Pre-Tax Income B/(W) % Business Segment Income % QoQ Growth Business Segments Banking $23.7 $15.9 $7.8 66% 80% Mortgage Banking 10.3 9.6 0.7 29% 7% Financial Advisory / Asset Management 1.9 0.6 1.3 5% 13% Business
Slide 6: Profitability Trends
0.74% 0.70% 0.60% 0.54% 0.50% 4.75% 4.62% 4.60% 4.59% 4.63% $0.27 $0.31 $0.25 $0.29 $0.32 $35.6 $38.2 $46.3 $52.0 $54.1 Profitability Trends Net Interest Income ($ in millions) Cost of Deposits Loan Yields EPS (per diluted share) Target: 4.25 – 4.50% Target: 0.50% +52% YoY +19% YoY -3% YoY -32% YoY
Slide 7: Noninterest Income
$26.1 $26.9 $25.0 $37.9 $39.4 $3.0 $10.3 $3.9 $4.5 $7.8 $4.4 $3.6 $5.2 $2.4 $5.1 $1.8 $3.3 $6.7 $1.2 $4.4 $35.4 $44.1 $40.9 $46.0 $66.7 Mortgage Banking Gain on Sale of Loans Advisory Service Fees All Other Building Sale (gross) Noninterest Income Noninterest Income ($ in millions) * Figures may not
Slide 8: Loan Originations & Loan Sales
$798 $1,009 $1,258 $297 $240 $290 $769 $922 $1,209 $194 $188 $167 $188 $202 $297 $44 $52 $42 $1,327 $1,504 $1,887 Mortgage Banking Jumbo Mortgage Commercial Consumer / Other Loan Originations & Loan Sales * Consumer / Other includes HELOC, Consumer, Construction and Rehab, & CS Financial ** Commerci
Slide 9: Noninterest Expense and Productivity
$2.6 $3.3 $3.6 $3.5 $4.0 $4.0 $4.1 $46.0 $48.9 $48.0 $51.8 $58.8 $58.3 $64.7 $11.3 $8.7 $12.3 $13.2 $13.5 $17.6 $20.6 2 $44 $58 $58 $64 $59 $64 $76 $2.4 $5.9 $2.6 Base Volume-Related Acquisition/Non-core Noninterest Expense ($ in millions) Assets / FTE ($ in millions) Noninterest Expense and Product
Slide 10: Balance Sheet
Balance Sheet Prior Quarter Prior Year Cash and Deposits in Financial Institutions $ 461 $ 267 $ 260 Securities Loans Held for Sale 1,241 1,096 Loans Held for Investment 4,473 3,934 2,602 ALLL (35) (29) (23) All Other Assets Total Assets $ 6,438 $ 6,097 $ 4,386 Noninterest-bearing Deposits $ 868 $ 7
Slide 11: Deposit Portfolio
$0.41 $0.46 $0.66 $0.75 $0.88 $2.9 $3.2 $4.0 $4.1 $4.2 CDs 19% DDA 17% NOW 20% Savings 17% Money Market 27% Deposit Portfolio Noninterest-bearing Deposits Interest-bearing Deposits $5.1 $3.3 $3.6 $4.7 $4.9 Total Deposits ($ in billions) Deposit Mix (6/30/15 period end balance) 0.54% 0.60% 0.70% 0.74
Slide 12: Loan Portfolio
$455 $464 $613 $639 $960 $567 $548 $1,042 $1,014 $839 $1,096 $1,127 $1,187 $1,241 $747 $134 $142 $167 $171 $137 $234 $367 $956 $940 $697 $1,213 $1,191 $1,172 $1,169 $1,841 $3,698 $3,839 $5,136 $5,175 $5,220 Business Commercial Real Estate & Construction Multifamily Single Family Residential Held for
Slide 13: Capital Position
1 Tangible equity per common stock and shares issuable under purchase contracts. Represents the effect on TBV/share including conversion of TEUs to common shares Capital Position Banc of California, Inc. Tangible Equity to Tangible Assets (TE/TA) 9.1% 9.0% 7.5% 7.6% 9.1% Common Equity Tier 1 Capital
Slide 14: Asset Quality
3Q Total Loans (HFI + HFS) $3.7 bln $3.8 bln $5.1 bln $5.2 bln $5.2 bln Delinquent non-PCI loans to total non-PCI loans 2.69% 2.08% 1.55% 1.66% 1.66% NPAs / Assets 0.96% 0.86% 0.65% 0.71% 0.66% NPAs / Equity 9.6% 8.7% 7.7% 8.4% 6.7% Net Charge Offs (recoveries) $(0.3) $0.2 n/m $0.1 n/m Provision for