Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (September 2015)
16 slides from Banc Of California's investor presentation, Sep 9, 2015
Slide 1: Investor Presentation Third Quarter 2015
Exhibit99.1 Investor Presentation Third Quarter 2015 September 9, 2015
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: Company Overview
Company Overview Largest bank based in Orange County, CA Common Stock: BANC (NYSE) Preferred Stock: BANC PRC / PRD (NYSE) Senior Debt: BOCA (NYSE) Franchise $6+ billion in assets $5+ billion in annual loan originations 100+ banking locations throughout California and the West(1) 8th largest public i
Slide 4: Mission & Values
Mission & Values OPERATIONAL EXCELLENCE ? We are committed to bt California’s diverse private bu \ CALIFORNIA ENTREPRENEURIALISM i ol ull-service bank serving ntrepreneurs and homeowners. SUPERIOR ANALYTICS
Slide 5: Building California's Bank
Building California’s Bank Banc of California has been successful in growing its asset base both organically as well as through opportunistic acquisitions since its recap in November 2010 Gateway Bancorp and Beach Business Bank, 2012 The Private Bank of California, CS Financial, and The Palisades Gr
Slide 6: Corporate Priorities
Corporate Priorities Scale individual business units at compelling marginal economics Organically deploy capital from 2Q offering to increase income attributable to banking segment Enhance management team, brand, and market position to solidify and leverage our position as California’s Bank 5
Slide 7: Bank Platform
Bank Platform Banc of California is committed to building the top full-service bank serving California’s diverse private businesses, entrepreneurs, and homeowners BANKING LENDING RETAIL BANKING RESIDENTIAL EXECUTIVE BANKING COMMERCIAL REAL ESTATE PRIVATE BANKING MULTI-FAMILY BUSINESS BANKING BUSINES
Slide 8: 2015 Second Quarter Summary
2015 Second Quarter Summary $0.32 EPS (diluted); $0.29 prior quarter and $0.27 year ago Net Income 1.0% ROAA, 15% ROATCE TotalRevenueup 23%quarter-over-quarterand70%year-over-year Revenues Net Interest Income up 4% quarter-over-quarter and 52% year-over-year Expenses 73% efficiency ratio (consolidat
Slide 9: Profitability Trends
Profitability Trends Net Interest Income EPS ($ in millions) (per diluted share) +52% YoY +19% YoY $52.0 $54.1 $46.3 $0.31 $0.32 $38.2 $0.27 $0.25 $0.29 $35.6 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Loan Yields Costof Deposits Target: 4.25 –4.50% Target: 0.50%
Slide 10: Financial Performance Targets
Financial Performance Targets ROAA ROATCE 15% 1% 1.0% 12% 13% 11% 13% 15% 0.8% 1.0% 0.9% 0.8% 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 1 Net Interest Margin Efficiency Ratio 3.75 – 4.00% 70 – 75% 3.88% 3.78% 3.82% 3.84% 3.92% 90% 85% 82% 77% 73% 2Q 2014 3Q 2014
Slide 11: Business Segment Contribution
Business Segment Contribution ($ in millions) % Business Segment % QoQ Pre-Tax Income 2Q 2015 1Q 2015 B/(W) Income Growth Business Segments Banking $23.7 $15.9 $7.8 66% 80% Mortgage Banking 10.3 9.6 0.7 29% 7% FinancialAdvisory / 1.9 0.6 1.3 5% 13% Asset Management Business Segment Total $35.9 $26.1
Slide 12: Deposit Portfolio
Deposit Portfolio Total Deposits Deposit Mix ($ in billions) (6/30/15 period end balance) $5.1 CAGR $4.9 $4.7 $3.6 CDs DDA $3.3 19% 17% $4.2 44% NOW $4.0 $4.1 Money 20% $3.2 Market $2.9 27% Savings 17% $0.66 $0.75 $0.88 116% $0.41 $0.46 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Cost of Deposits: 0.74%
Slide 13: Loan Portfolio
Loan Portfolio Total Loans (HFS / HFI) HFI Loan Mix ($ in millions) (6/30/15 period end balance) $5,136 $5,175 $5,220 $167 $171 $137 $747 Other $1,187 $1,241 $3,698 $3,839 3% Business $134 $142 21% $1,841 $1,172 $1,169 SFR $1,096 $1,127 41% CRE $956 $940 $697 19% $1,213 $1,191 MF $367 $839 16% $234
Slide 14: Capital Position
Capital Position 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Banc of California, Inc. Tangible Equityto Tangible Assets (TE/TA) 9.1% 9.0% 7.5% 7.6% 9.1% Common Equity Tier 1 Capital Ratio (CET1) n/a n/a n/a 9.0% 9.0% Tier 1 Leverage Ratio 9.9% 9.3% 8.6% 8.0% 9.6% Tier 1 Risk-based Capital Ratio 14.1% 14
Slide 15: Asset Quality
Asset Quality NPAs / Assets ALLL ($ in millions) 0.96% 0.86% $34.8 0.65% 0.71% 0.66% $25.3 $29.5 $29.3 $22.6 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Net Charge Offs (recoveries) ALLL / NPLs ($ in millions) $0.2 $n/m $0.1 n/m 77% 81% 66% 69% ($0.3) 54% 2Q 2014
Slide 16: A Top California Bank at an Attractive Entry Point
A Top California Bank at an Attractive Entry Point BANC is the 8th largest public independent California bank Proven ability to attract and grow low cost retail deposits Proven ability to build a scalable and diverse commercial lending platform Proven M&A capabilities Compelling economic model with
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