Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (August 2016)
23 slides from Banc Of California's investor presentation, Aug 1, 2016
Slide 1: Investor Presentation
August 2, 2016 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”), or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases
Slide 3: We Are California's Bank
ENTREPRENEURIALISM SUPERIOR ANALYTICS OPERATIONAL EXCELLENCE WE ARE CALIFORNIA’S BANK. Empowering California Through Its Diverse Businesses, Entrepreneurs and Communities
Slide 4: California's Bank: Made of California, by California, for California
100% of branches in California 90%+ loans are California Loans 90%+ employees live in California Outstanding CRA Rating +67% CAGR +129% CAGR $10.2 billion in Assets 101% Total Shareholder Return Since YE 20141 16% Return on Tangible Common Equity 2Q16 1.1% Return on Assets 2Q16 Total Assets2 Pretax
Slide 5: Lending Platform: We Empower California's Businesses and Entrepreneurs
Lending Platform We Empower California’s Businesses and Entrepreneurs On Track to Fund Over $8 billion in Loans to Over 20 Thousand Californians in 2016 Commercial Commercial Real Estate Multi-Family Residential SBA Equipment Finance Asset Backed Lines of Credit Warehouse Construction and Rehabilita
Slide 6: We Empower California's Diverse Communities
Clinton Global Initiative, America Community Commitment SDSU Athletics Financial Literacy Partnership Pepperdine Micro-Enterprise Program USC Athletics Financial Literacy Partnership We Empower California’s Diverse Communities Largest Independent Bank in California with an Outstanding CRA Rating Wor
Slide 7: Track-Record of Compelling Financial Results
Diluted 2 Dollars in million 3 Return on Assets and Return on Tangible Common Equity based on average assets and average tangible common equity, respectively, over stated time periods Pretax Income2 Earnings per Share1 Return on Tangible Common Equity3 Return on Assets3 Track-Record of Compelling Fi
Slide 8: Accelerating Growth of Core, Spread-based Businesses
Dollars in millions 2 Business Segment Pretax Income inclusive of intra-company allocations; excludes unallocated Corporate / Other interest expense. Mortgage Banking and Financial Advisory segments reported negative pre-tax income after allocated intra-company expenses for 1Q16 +50% High quality ea
Slide 9: Commercial Banking Driving Growth in Loan Production
Commercial Banking Driving Growth in Loan Production Commercial Banking Loan Production up over 100% Year Over Year Total 2Q loan production of $2.6 billion, including $1.3 billion of commercial banking segment production Commercial banking loan production up 109% year over year while mortgage banki
Slide 10: Commercial Banking Loan Production Led by C&I Lending
C&I Loans include SBA and Lease loans Commercial Banking Loan Production Led by C&I Lending New Commercial Banking Team Additions Resulting in Increased C&I Lending $1.3 billion in total 2Q16 commercial banking segment loan production Record $473 million 2Q16 C&I loan production Record $302 million
Slide 11: Deposit Growth Reducing Borrowings
Total funding includes total interest-bearing liabilities and noninterest-bearing deposits Deposit Growth Reducing Borrowings Strong Liquidity Position Key to Continued Long Term Growth Total Liabilities (Quarter-over-Quarter) ($ in millions) Record quarterly deposit growth of $1.1 billion; Decline
Slide 12: Scale Resulting in Increased Efficiencies and Productivity
Scale Resulting in Increased Efficiencies and Productivity Continue to Target 40% Marginal Efficiency Ratio ($ in millions) Assets / FTE Efficiency Ratio -21% Business Segment Noninterest Expense / Total Assets 5.6% 4.9% 4.5% 4.0% 4.0%
Slide 13: Capital Ratios Continue to Exceed Basel III Guidelines
Capital Ratios Continue to Exceed Basel III Guidelines 2Q Equity Raise Resulted in Stronger Mix of Capital and Increased Consolidated Liquidity BASEL III Capital Requirements BANC Capital Ratios
Slide 14: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Strengthening Credit Metrics Resulting in Increased ALLL / NPL Coverage Ratio 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 % Change YoY NPAs / Assets 0.66% 0.62% 0.56% 0.46% 0.45% (32%) NPAs / Equity 6.7% 7.0% 7.1% 5.1% 4.8% (28%) ALLL / NPLs 81% 77% 79% 81% 83% 2%
Slide 15: Market Leading Asset and Earnings Growth Rates
Dollars in billions 2 Dollars in millions 3 Diluted 4 Normalized to assume full 40% tax rate Market Leading Asset and Earnings Growth Rates Platform and Infrastructure Investments Leading to Increased Long-term Value Creation Deposits1 Earnings per Share3 Pretax Income2 Assets1 4 2016 Guidance Annua
Slide 16: We Believe in California
We Believe in California. 39.1 Million CA Population1 5.1% Population Growth 24% Higher Than National Average2 $61,489 Household Income 15% Higher Than National Average3 5.4% CA Unemployment Rate Lowest Since 20074 13.4 Million CA Private Nonfarm Employment >11% of Total National Employment5 874,000
Slide 17: California Mid-Sized Bank Growth Has Resulted in Value Creation
1 Time series starts with banks crossing of $2 billion in total assets ending at Q1 2016. Peer examples not indicative of future BANC results 2 Total Shareholder return from lowest recorded asset size on 3/31/1995 to sale on 11/2/2015 3 Total Shareholder Return since Initial Public Offering December
Slide 18: Uniquely Positioned in Market as California's Bank
Scale and Capability California Focus CA footprint and reach % Deposits in CA % Loans in CA % Employees in CA % of Branches in CA Capital and Balance Sheet to Serve Key Businesses Breadth and Quality of Lending Products and Banking Services California Banks with Under $2 Billion in Assets Community
Slide 19: 2016 Guidance Implies Continued Outperformance
Excluding expenses related to capital transactions 2016 Guidance Implies Continued Outperformance Maintaining ROATCE and ROAA with Strong Balance Sheet Growth Will Yield 15%+ EPS Growth Metric FY 2016 On Target ROATCE 15% ROAA 1%+ Efficiency Ratio 65% – 70% Total Assets $10 – $11 billion Earnings Pe
Slide 20: Vision: We Are California's Bank
VISION We Are California’s Bank.
Slide 21: Mission
MISSION Empowering California through its Diverse Businesses, Entrepreneurs and Communities
Slide 22: We Believe in California
WE BELIEVE We Believe In Empowering Dreams. We Believe In Strong Partnerships. We Believe In California.
Slide 23: Entrepreneurialism
ENTREPRENEURIALISM Empowering Its Diverse Businesses, Enti mmunities OPERATIONAL SUPERIOR EXCELLENCE ANALYTICS
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