Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (February 2016)
24 slides from Banc Of California's investor presentation, Feb 11, 2016
Slide 1: Investor Presentation
February 11, 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
We Are California’s Bank Empowering California’s Diverse Private Businesses, Entrepreneurs and Communities
Slide 4: The Banc of California Franchise: One of America's Top Banks
Loan Offices Branches $8.2 billion in Assets $100+ million in Pretax Income 90 California Banking Locations +70% CAGR +153% CAGR Source: Forbes Magazine’s 2016 list of America’s 100 Top Banks 2 Dollars in billions 3 Dollars in millions 32.3% Total Shareholder Return FY 2015 16.6% Return on Tangible
Slide 5: We Empower California's Businesses and Entrepreneurs
Total Loans1 ($ in billions) Lending Platform Commercial Commercial Real Estate Multi-Family Residential SBA Equipment Finance Asset Backed Lines of Credit Warehouse Construction and Rehabilitation Entertainment and Private We Empower California’s Businesses and Entrepreneurs 2015 Loan Originations
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: Resulting in Strong and Accelerating Earnings
Resulting in Strong and Accelerating Earnings What’s Good for California is Good for Banc of California’s Shareholders Diluted 2 Dollars in millions 3 Return on Assets and Return on Tangible Common Equity based on average assets and average tangible common equity, respectively, over stated time peri
Slide 8: Consistent Progress Toward Long-Term Franchise Value
Consistent Progress Toward Long-Term Franchise Value Seven Straight Quarters Above Consensus EPS Estimates Dollars in millions Return on Assets and Return on Tangible Common Equity based on average assets and average tangible common equity, respectively, over stated time periods Earnings per Share P
Slide 9: Earnings Continue to Exhibit Low Volatility
78% Median 8.6% Median 19.6% Commercial Banks Mortgage-focused banks 33% 17% 0% 0% 0% 0% 0% 17% 0% 17% 0% 17% 0% 33% 33% 0% 0% 0% 0% 17% 17% 1 Standard deviation as % of average; 2014Q2 – 2015Q3 Source: SNL Financial; FactSet Note: OPB not available for 2012Q4-2014Q1; CBF estimates not available for
Slide 10: Commercial Banking Segment Drives Earnings Strength
4Q15 segment reporting now includes allocation of shared service expense to applicable segments Commercial banking segment previously included $18.6 million of annual shared services expense which directly supported mortgage banking and financial advisory segments 90% of segment profits generated by
Slide 11: Accelerating Commercial Banking Loan Production
Commercial Banking segment yield of 4.3% on new loans in 4Q15 Mortgage Banking Segment production of $951 million in 4Q Management guidance for 2016 loan production of over $8 billion Commercial Banking Segment Loan Production ($ in millions) Accelerating Commercial Banking Loan Production Achieved
Slide 12: Increasingly Valuable Deposit Franchise
Cost of Deposits: 0.60% 0.54% 0.50% 0.49% 0.48% +35% +69% 0.00% 0.00% 0.00% 0.00% 0.00% Noninterest-bearing Deposits Total Deposits ($ in millions) ($ in billions) Core deposits exclude treasury and brokered deposits Record quarterly core deposit growth exceeding $540 million1 Increasingly Valuable
Slide 13: Expanded Product / Service Business Unit Partners
Expanded Product / Service Business Unit Partners Client Needs Met KPIs Trust Services Private Bank Retail Bank Financial Institutions Bank Traditional trust services for high net worth clients as well as securities safekeeping Noninterest Income Deposit Balances Foreign Exchange (F/X) Private Bank
Slide 14: Noninterest Expense and Productivity
Noninterest Expense and Productivity Investments in Scalable Platform Yielding Positive Results 1Includes Mortgage Banking-related commissions, bonus and loan-related expenses 1 Management Guidance Assets / FTE Noninterest Expense Efficiency Ratio ($ in millions) ($ in millions)
Slide 15: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable Strengthening Credit Metrics Resulting in Increased ALLL / NPL Coverage Ratio 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 % Change 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%
Slide 16: We Believe in California
We Believe in California. Large and Attractive Demographic Base 39.1 million population in CA1 Population growth of 4.2% well above national average of 3.3%2 CA household income of $61,094 is 15% higher than the national average of $53,0463 Solid and Improving Employment Trends 5.8% CA unemployment
Slide 17: California's Changing Bank Landscape Since 2005
Banc of California has successfully attracted key employees and teams from New York and Canadian-based competitors L.A.’s ‘bank to the stars,’ City National Bank, now under Canadian ownership CIT to buy OneWest Bank for more reliable funding source S.F. loses another HQ as Union Bank’s parent moves
Slide 18: Accelerating Results Under Current Leadership
Dollars in billions 2 Dollars in millions 3 Diluted 4 Normalized to assume full 40% tax rate +153% CAGR +51% CAGR +70% CAGR +69% CAGR Deposits1 Earnings per Share3 Pretax Income2 Assets1 +6% CAGR +42% CAGR +40% CAGR +24% CAGR 4 Accelerating Results Under Current Leadership Platform and Infrastructur
Slide 19: Unbounded Opportunity for California Bank Franchises
1Time series starts with bank crossing of $2 billion in total assets Unbounded Opportunity for California Bank Franchises California Is Ground Zero for Emerging National Bank Franchises Asset Growth For Premier California Bank Franchises Year 0 = $2 billion in Total Assets; $ in billions
Slide 20: 2016 Guidance Implies Continued Outperformance
Metric Consensus Estimate1 Management Guidance ROATCE 12% 15% ROAA 0.8% 1%+ Efficiency Ratio 74% 65% - 70% Total Assets $9.0 billion $9.5 billion+ Earnings Per Share $1.31 $1.55+ Updating 2016 preliminary guidance based on FY 2015 results and strategic planning and budgeting progress 2016 Guidance I
Slide 21: Vision: We Are California's Bank
VISION We Are California’s Bank.
Slide 22: Mission
MISSION Empowering California’s Diverse Private Businesses, Entrepreneurs and Communities
Slide 23: We Believe
WE BELIEVE We Believe In Empowering Dreams. We Believe In Strong Partnerships. We Believe In California.
Slide 24: Entrepreneurialism, Operational Excellence, Superior Analytics
ENTREPRENEURIALISM WE ARI RNIA’S BANK Empowering Diverse es, Entrepreneurs and Communiti OPERATIONAL EXCELLENCE SUPERIOR ANALYTICS BANC OF CALIFORNIA
Banc of California — Investor Presentation (February 2016) on 6ix