Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q4 2015 Earnings Presentation
21 slides from Banc Of California's earnings presentation, Jan 28, 2016
Slide 1: 2015 Fourth Quarter Earnings Investor Presentation
January 28, 2016 2015 Fourth Quarter Earnings Investor Presentation Exhibit 99.2
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: Banc of California Franchise Value Accelerating
Banc of California Franchise Value Accelerating $8.2 billion in Assets $100+ million in Pretax Income 90 California Banking Locations +70% CAGR +153% CAGR Dollars in billions Dollars in millions 32.3% Total Shareholder Return FY 2015 16.6% ROATCE 4Q15 1.0% ROAA 4Q15 Pretax Income2 Total Assets1 Banc
Slide 4: 2015 Results Reflect Accelerating Profitability
2015 Results Reflect Accelerating Profitability Growth Continues to be Accretive to Tax-Adjusted Earnings, EPS, ROA and ROTCE3 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 t
Slide 5: California Banking Landscape Increasingly Attractive
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 6: Delivering on Commitments to Shareholders
ü ü ü ü ü Delivering on Commitments to Shareholders Management Achieved Financial Guidance; Resulting in Outperformance of Consensus Estimates Consensus Source: SNL Financial as of 1/24/2016, ROTCE consensus from company’s analyst estimate tracking Metric 4Q15 Actual 4Q15 Guidance Guidance Source Co
Slide 7: 2016 Guidance Implies Continued Outperformance
Metric FY 2016 ROATCE 15% ROAA 1%+ Efficiency Ratio 65% - 70% Total Assets $9.5 billion+ Earnings Per Share $1.55+ 2016 Guidance Implies Continued Outperformance Maintaining ROTCE and ROA with Strong Balance Sheet Growth Yields 15%+ EPS Growth in 2016 Updating 2016 preliminary guidance based on FY 2
Slide 8: Growing Earnings While Strengthening ROA and ROTCE
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 periods Growing Earnings While Strengthening ROA and ROTCE Meeting All Earnings Targets; History of Consistent and Sustaina
Slide 9: Commercial Banking Segment Drove FY 2015 Earnings
Commercial Banking Segment Drove FY 2015 Earnings Commercial Banking Expected to Produce over 80% of Segment Fully-Allocated Profits in 2016 4Q15 segment reporting now includes allocation of shared service expense to applicable segments Commercial banking segment previously included $18.6 million of
Slide 10: Earnings Volatility in Line with Best in Class Peers
78% Median 8.6% Median 19.6% Commercial Banks Mortgage-focused banks Earnings Volatility in Line with Best in Class Peers Reduced Contribution of Mortgage Banking Earnings has Driven Lower Earnings Volatility 33% 17% 0% 0% 0% 0% 0% 17% 0% 17% 0% 17% 0% 33% 33% 0% 0% 0% 0% 17% 17% 1 Standard deviatio
Slide 11: Noninterest Expense and Productivity
Noninterest Expense and Productivity Investments in Scalable Platform Yielding Positive Results 1 Management Guidance Assets / FTE Noninterest Expense Efficiency Ratio ($ in millions) ($ in millions) Includes Mortgage Banking-related commissions, bonus and loan-related expenses
Slide 12: Deposit Growth Driven by Deepening Client Relationships
Deposit Growth Driven by Deepening Client Relationships Average Balance per Account Grew by 17% to $97,500 from 3Q15 Cost of Deposits: 0.60% 0.54% 0.50% 0.49% 0.48% +35% +69% 0.00% 0.00% 0.00% 0.00% 0.00% Noninterest-bearing Deposits Total Deposits ($ in millions) ($ in billions) Core deposits exclu
Slide 13: Commercial Banking Segment Loan Production Accelerating
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 Accelerating Commercial Banking Loan Production Achieved 2015 Target of T
Slide 14: Capital Ratios Continue to Exceed Basel III Guidelines
Basel III Requirements Capital Ratios Continue to Exceed Basel III Guidelines Capital Structure Focused on Total Tier 1 Eligible Capital
Slide 15: Expanding Product Offerings to Support Client Needs
Expanding Product Offerings to Support Client Needs New Products to Provide Incremental Fee-based Revenue in 2016 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
Slide 16: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable 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% ALLL / Total Loans 0.75% 0.75% 0.78% 0.74% 0.69% (8%) ALL and Discount / Total
Slide 17: Accelerating Results Under Current Leadership
Accelerating Results Under Current Leadership Platform and Infrastructure Investments Leading to Increased Long-term Value Creation 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 Pret
Slide 18: Outperforming Market Expectations for Growth and Profitability
Metric Q4 15 Consensus Q4 15 Actual Q2 16 Consensus Actual v. 4Q15 Consensus (%) Actual v. 2Q16 Consensus (%) Assets1 $7.8 $8.2 $8.3 5% (1%) Loans1 $5.4 $5.9 $5.8 9% 2% Deposits1 $5.6 $6.3 $6.1 13% 3% Net Interest Income2 $59 $62 $63 5% (2%) Noninterest Income2 $47 $57 $52 21% 10% Pre-tax Income2 $2
Slide 19: Appendix
Appendix
Slide 20: FY15 Revised Segment Reporting Allocation Methodology
FY15 Revised Segment Reporting Allocation Methodology Revised Allocation Methodology Now Better Reflects True Costs within each Reporting Segment (Pre-allocation methodology before Q4) Commercial Banking Mortgage Banking Fin. Adv. & Asset Mgmt Corporate / Other Consolidated Pre-Tax Net Income $93.2
Slide 21: 4Q15 Revised Segment Reporting Allocation Methodology
4Q15 Revised Segment Reporting Allocation Methodology Revised Allocation Methodology Now Better Reflects True Costs within each Reporting Segment (Pre-allocation methodology before Q4) Commercial Banking Mortgage Banking Fin. Adv. & Asset Mgmt Corporate / Other Consolidated Pre-Tax Net Income $30.0