Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (February 2018)
21 slides from Banc Of California's investor presentation, Feb 8, 2018
Slide 1: Franchise Overview & Strategy Update
February 8, 2018 Franchise Overview & Strategy Update Investor Presentation Exhibit 99.1
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”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the
Slide 3: Our Franchise: We Are California's Bank
Market information as of 2/2/2018 Financial information as of December 31, 2017 Ticker: NYSE: BANC Market Cap: $1.0 billion - Price Per Share: $19.30 - Price / TBV: 1.40x - Dividend Yield: 2.69% Our Franchise WE ARE CALIFORNIA’S BANK Highlights California Footprint Market Information1 Branch Overvie
Slide 4: Long-Term Vision
Long-Term Vision California’s Bank: CA Focused Commercial Banking Franchise Diversified Loan Portfolio Maintain Strong and Stable Asset Quality Improved Core Deposit Base Team-Based Culture Employer of Choice Delivering Value for Stockholders Where We Go From Here and What We Plan to Create Moving F
Slide 5: Strong and Powerful Brand: Banc of California
Strong and Powerful Brand: Banc of California High Level of Brand Recognition, Closely Tied to California’s Business Owners and Entrepreneurs WE ARE CALIFORNIA’S BANK – Together We Win
Slide 6: Substantial Size and Attractiveness
Substantial Size and Attractiveness 39.5 Million population1 5.9% Population growth 12% higher than national average2 $63,783 Household Income 15% higher than national average3 Strong Employment Trends and Robust Business Climate 4.3% Unemployment Rate 40-Year low4 14.3 Million Private Nonfarm Emplo
Slide 7: The Only Mid-Sized Bank Focused on CA
Source: SNL, most recent publicly available data as of 2/3/2018, Dollars in millions The Only Mid-Sized Bank Focused on CA Uniquely Positioned Franchise with Tremendous Opportunity and Scarcity Value Today Rank Name Total Assets1 (YE 2017) Focus 1 Wells Fargo $ 1,951,757 National 2 First Republic 87
Slide 8: Strong Credit and Capital Are Hallmarks of BANC
Strong Credit and Capital Are Hallmarks of BANC Strong Credit Quality Coupled with Strong Capital Position NPAs/Assets1,2 Tangible Equity / Tangible Assets1 Peer Median: 9.3% Source: SNL Financial; Peers include US banks with assets between $9.5bn-13.0bn as of Q4 2017. Tangible Equity / Tangible Ass
Slide 9: Business Management Team and Board of Directors
Business Management Team Name Position Years with BANC Industry Experience Douglas H. Bowers President & CEO <1 Year 35 Years John A. Bogler Chief Financial Officer <1 Year 30 Years Jason Pendergist Head of Real Estate Banking <1 Year 17 Years Rita Dailey Head of Deposits & Treasury Management <1 Ye
Slide 10: BANC Strategic Roadmap Supported by Core Foundation
BANC Strategic Roadmap Supported by Core Foundation Focused on Core Deposits, Lending, Expense Normalization and Creating Stockholder Value Valuable Brand Great Markets Sized to Compete Strong Credit & Capital Leadership & Governance California’s Bank With a Strong Foundation Creating Stockholder Va
Slide 11: BANC Strategic Roadmap Summary and Guideposts
BANC Strategic Roadmap Summary and Guideposts Building Core Earnings Power for Sustainable Growth and Returns Over the Long Term Strategy Components Description Tracking Guideposts Build Core Deposits Improve core deposit generation Reduce reliance on high cost deposits, brokered deposits and FHLB a
Slide 12: Enhanced Treasury Management Program, CRE Relationship Banking, Private Banking Expansion
Enhanced Treasury Management Program CRE Relationship Banking Private Banking Expansion Substantial investment in Treasury Management program including leadership (dedicated EVP hired 11/2017), sales organization, products, incentive plans and sales producers – Includes 15+ FTE adds, outbound sales
Slide 13: Build Core Deposits: Stabilized Core Deposit Base
Build Core Deposits: Stabilized Core Deposit Base Focused on Growing Core Deposit Base; Improved Funding Mix from Wholesale to Core Improves Cost BANC Dollars in millions Core deposits defined as non-brokered deposits Average cost during Q4 2017 Funding & Deposit Composition1 Funding / Deposit Type
Slide 14: Amplify Lending: Growing Loan Balances
Amplify Lending: Growing Loan Balances Accelerated Loan Production Efforts to Support Higher Loan Balances, Driving Balance Sheet Growth Dollars in billions, loans held for investment, loan production is gross commitment originations CRE consists of Construction, CRE and Multifamily YE 2017 Loan Mix
Slide 15: Normalize Expenses: Leveraging Expenses Efficiently
Leverage current expense base to support increased originations and expanded balance sheet Re-mix back and middle office efficiency savings and re-deploy into added front line sales producers and technology investments Loan Origination System (LOS) Normalize Expenses: Leveraging Expenses Efficiently
Slide 16: Creating Stockholder Value: Long-Term Operating Targets
Financial Metric 4Q 2017 Long-Term Strategic Operating Targets Growth / Balance Sheet: - Loan Growth (HFI)¹ +10% Mid-Teens - Deposit Growth (ex-brokered)² +14% Low-to-Mid Teens - Securities / Total Assets 25% 15% - 20% Operating Metrics: - NIM 3.01% 3.00% – 3.20% - NIE3 / Average Assets 2.33% <2.00%
Slide 17: Strategic Initiatives
Strategic Initiatives Initiatives Support Strategic Roadmap and Reflect High Level Priorities to Support Plan Initiative Commentary Treasury Management Strategy: Sales & Products Organization Enhanced payments and card solutions, improved client TM online portal New focus on industry niches and fee-
Slide 18: Key Investment Highlights
Key Investment Highlights Strong Foundation in Place, Strategic Roadmap Launched and Management Focused on Execution Source: SNL Financial; Peers include US banks with assets between $9.5bn-13.0bn as of 2/2/2018. Prudent Risk Management Supported by Strong Credit and Capital Uniquely Positioned, Sca
Slide 19: Non-GAAP financial measures notice
This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include noninterest expense from continuing operations and operating expense from continuing operations, each excluding loss
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-recurring Adjustments to Continuing Operations Expenses (in millions) Continuing Operations (reported) Q4 non-recurring adjustments Q4 Operating Expense from Continuing Operations2 Salaries and employee benefits $ 33.1 $ (0.3) $ 32.8 Occupancy and equipment 9.6 (0.5) 9.1
Slide 21: Tangible common equity to tangible assets reconciliation
(in thousands) 4Q17 3Q17 2Q17 1Q17 4Q16 Tangible common equity to tangible assets ratio Total assets $ 10,327,852 $ 10,280,028 $ 10,365,768 $ 11,052,085 $ 11,029,853 Less goodwill (37,144) (37,144) (37,144) (37,144) (39,244) Less other intangible assets (9,353) (10,219) (11,135) (12,191) (13,617) Ta
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