Banc Of California, Inc. · NYSE:BANC
Banc Of California — Investor Presentation (November 2018)
24 slides from Banc Of California's investor presentation, Nov 2, 2018
Slide 1: November 2018 Investor Presentation
November 2018 Investor Presentation Exhibit 99.2
Slide 2: 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 words or phrases “believe,
Slide 3: Our Franchise: We Are California's Bank
Market information as of 10/26/2018. Annualized dividend yield. Financial information as of September 30, 2018. Total loans held for investment. Ticker: NYSE: BANC Market Cap: $766 million - Price Per Share: $15.12 - Dividend Yield: 3.44% Our Franchise WE ARE CALIFORNIA’S BANK Highlights California
Slide 4: The Exact Financing You Need: A Product Set Designed for California
The Exact Financing You Need: A Product Set Designed for California PRIVATE BANKING COMMERCIAL & BUSINESS BANKING COMMUNITY BANKING REAL ESTATE BANKING Personal Banking Savings and Investments Credit Cards Small Business Banking Business Banking Middle Market Banking Depository Services Cash Managem
Slide 5: Third Quarter 2018 Highlights
Strong Organic Loan Growth Continuation of Balance Sheet Re-Mix Disciplined Expense Management Held for investment loans grew by $217 million, or 3% QoQ (12% annualized) – Gross loan commitment originations of $907 million at an average production yield of 5.22% Third quarter noninterest expense tot
Slide 6: Q3 Strategic Balance Sheet Re-Mix Activities
Q3 Strategic Balance Sheet Re-Mix Activities Securities declined by $237 million, including: - Sale of $25 million of CMBS - CLO net runoff of $194 million2 Increased overall HFI loans by $217 million, or 3% from the prior quarter 1 2 Total Assets1 2 1 Strategic Asset Re-Mix Continues Re-Mix of Bala
Slide 7: BANC Strategic Roadmap: Scorecard
BANC Strategic Roadmap: Scorecard Building Core Earnings Power for Sustainable Growth and Returns Over the Long Term Strategy Components Tracking Guideposts 9 Months 2018 Results Build Core Deposits Core Deposit Balance Growth Core deposits increased $584 million In Q1, completed the run-off of $207
Slide 8: Build Core Deposits: Stabilized Core Deposit Base
Dollars in millions Core deposits defined as non-brokered deposits Deposit Composition1 $332 $357 Build Core Deposits: Stabilized Core Deposit Base Core Deposits Increased by $171 Million in the Quarter, $57 Million of which is Non-Interest Bearing BANC 2
Slide 9: Amplify Lending: Growing Loan Balances
Gross loan commitment originations Dollars in thousands CRE includes Construction Gross loan commitment originations YTD gross loan production1 of $2.54 billion at 5.09% average production yield HFI Loan Production Yields vs. Portfolio Yields2 14% 28% Amplify Lending: Growing Loan Balances Loan Prod
Slide 10: 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 Assets1,3 Peer Median: 9.4% Source: SNL Financial; Peers include US banks with assets between $9.5bn-13.0bn as of June 30, 2018. Non-performing assets
Slide 11: Normalize Expenses: Leveraging Expenses Efficiently
Loss on investments in alternative energy partnerships create tax credits to offset expense incurred. Continuing operations operating expense less non-recurring adjustments. Non-GAAP measure: Reconciliation table above. Continuing operations noninterest expense excluding loss on investments in alter
Slide 12: Long-Term Strategic Operating Targets and 2018 Tracking
Financial Metric Long-Term Strategic Operating Targets 9 Months 2018 Plan Tracking Comments Growth / Balance Sheet: - Loan Growth (HFI)¹ Mid-Teens +12% Loan sales temporarily slowed growth - Deposit Growth (ex-brokered)2 Low-to-Mid Teens +14% Early Innings of Deposit & Treasury Management Build Out
Slide 13: Appendix
Appendix
Slide 14: Net Interest Margin
Net Interest Margin Re-mix of Assets, Liability Funding and Deposit Strategy Underway Net Interest Margin Components Interest Earning Assets1 Average, dollars in billions Includes loans held for sale and other interest-earning assets Dollars in millions, consolidated operations Interest Income3 2
Slide 15: Focusing on Core, Sustainable Returns
Includes non-recurring items, loss on investments in alternative energy partnerships, and income tax expense required to reach a normalized rate of 20%. Non-GAAP measure: Reconciliation table above. 3 Loss on investments in alternative energy partnerships create tax credits to offset expense incurre
Slide 16: Asset Quality Remains Strong
Non-performing Assets1 Asset Quality Remains Strong Disciplined Credit Culture Continues to Drive Strong Asset Quality Dollars in millions, held for investment NPAs / Equity ALLL and NPL Coverage Total Delinquent Loans / Total Loans
Slide 17: Solid Capital Ratios Exceeding Basel III Guidelines
Tangible Equity / Tangible Assets1 Solid Capital Ratios Exceeding Basel III Guidelines 3Q18 Capital Reflects Redemption of $40 million Preferred Stock Common Equity Tier 1 Ratio (CET1) Tangible Common Equity / Tangible Assets1 Tier 1 Risk-Based Capital Ratio Non-GAAP measure. Reconciliation on slide
Slide 18: Securities Portfolio
Securities Portfolio Dollars in millions Based on book value balances of rated securities, data at September 30, 2018 Dollars in billions Securities Portfolio Detail1 Security Type Book Value 2Q18 Book Value 3Q18 Q3 Change Fair Value 3Q18 Book Yield 3Q18 Duration 3Q18 Gov’t & Agency (Agency MBS) $ 4
Slide 19: BANC Fast Facts & Preferred Equity Capital Structure
All figures from Continuing Operations unless noted; dollars in millions unless noted per share or percentage. Consolidated operations; Efficiency ratio adjusted for including the pre-tax effect of investments in alternative energy partnerships . Excluding loss on investments in alternative energy p
Slide 20: Non-GAAP Financial Measures
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, operating expense from continuing operations, and diluted earnings pe
Slide 21: Non-GAAP Reconciliation: Adjusted Efficiency Ratio
Non-GAAP Reconciliation Adjusted Efficiency Ratio Including the Pre-tax Effect of Investments in Alternative Energy Partnerships
Slide 22: Non-GAAP Reconciliation: Tangible Common Equity to Tangible Assets
Non-GAAP Reconciliation Tangible Common Equity to Tangible Assets and Tangible Equity to Tangible Assets
Slide 23: Non-GAAP Reconciliation: Return on Average Tangible Common Equity
Non-GAAP Reconciliation Return on Average Tangible Common Equity
Slide 24: Non-GAAP Reconciliation: Non-Interest Expense / Average Assets
Non-GAAP Reconciliation Non-Interest Expense / Average Assets 1. Continuing operations noninterest expenses excluding loss on investments in alternative energy partnerships, annualized, over average consolidated assets.
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