Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q3 2014 Earnings Presentation
15 slides from Banc Of California's earnings presentation, Oct 30, 2014
Slide 1: Investor Presentation: 2014 Third Quarter Earnings
Exhibit 99.2 Investor Presentation 2014 Third Quarter Earnings October 30, 2014
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: 2014 Third Quarter Highlights
2014 Third Quarter Highlights Net income of $11.2 million compared to $8.1 million in the prior quarter Net Income Netincomeavailableto commonshareholdersof $10.3million,or $0.31per dilutedshare Return on average assets of 1.0% Return on average tangible common equity (ROATCE) of 13.2% Total loan ba
Slide 4: Income Statement
Income Statement ($ in millions except per share data) 3Q 2014 2Q 2014 Net Interest Income $ 38.2 $ 35.6 Noninterest Income 44.1 35.4 Total Revenue 82.3 70.9 Expenses (67.6) (60.5) Pre-Tax, Pre-Provision Income 14.7 10.5 Provision (2.8) (2.1) Pre-Tax Income 11.9 8.4 Taxes (0.7) (0.3) Net Income 11.2
Slide 5: Net Interest Income
Net Interest Income Net Interest Income ($ in millions) +7% $38.2 $35.2 $35.6 $33.3 $26.9 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Net interest income increased by $2.6 million from the second quarter Averageinterest-earningassetsincreasedby $370million,or 10%from the secondquarter Average cost of in
Slide 6: Noninterest Income
Noninterest Income Noninterest Income ($ in millions) $44.1 $35.4 $6.9 $34.5 $6.2 $10.3 $12.1 $25.3 $3.0 $18.2 $3.2 $5.4 $1.5 $4.2 $2.6 $26.1 $26.9 $16.2 $15.0 $17.3 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Mortgage Banking Gain on Sale of Loans All Other Branch Sale Mortgage banking income increased
Slide 7: Noninterest Expenses
Noninterest Expenses Noninterest Expense Number of Employees ($ in millions) $67.6 (Headcount) $2.4 $60.5 $57.2 $57.8 1,384 $13.2 1,318 1,292 $52.3 $8.7 $12.3 1,217 1,220 31 $11.3 418 $8.8 431 429 471 504 $49.1 $48.2 $52.0 $43.5 $46.0 966 887 788 749 757 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 3Q 20
Slide 8: Balance Sheet
Balance Sheet ($ in millions, period ending balances) 3Q 2014 2Q 2014 Cash and All Deposits in Financial Institutions $ 187 $ 260 Securities 310 233 Loans Held for Sale 1,127 1,096 Loans Held for Investment 2,712 2,602 ALLL (25) (23) All Other Assets 227 218 Total Assets $ 4,538 $ 4,387 Deposits $ 3
Slide 9: Organic Loan Growth
Organic Loan Growth Total Loans (HFS/HFI) ($ in millions) $3,839 $3,698 $3,397 $134 $142 $3,163 $123 $2,963 $116 $110 $2,318 $2,309 $2,159 $2,003 $1,917 $801 $915 $696 $741 $636 $300 $347 $374 $455 $464 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 C&I/SBA/Leasing CRE/MF SFR/HFS Other Consumer Gross loan
Slide 10: Diversification of Loan Mix Through Popular Transaction
Diversification of Loan Mix Through Popular Transaction Banc of California Popular Community Bank CA Pro-Forma (9/30/14 period end) (9/30/14 period end) Other C&I 3% 6% Other Residential HFS HFS Residential 3% 24% 23% 29% 31% CRE 46% Multifamily 45% C&I CRE Other CRE 11% 21% C&I 4% Multi 14% 12% Mul
Slide 11: Deposit Portfolio
Deposit Portfolio Total Deposits ($ in billions) $3.6 $3.3 Branch $3.1 Sale $2.8 $2.9 $463mln $3.17 $2.68 $2.94 $2.38 $2.49 $0.42 $0.43 $0.43 $0.41 $0.46 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Noninterestbearing Deposits Interest bearing Deposits Deposit balances +$284 million compared to Q2 (+8% Q
Slide 12: Lowering Cost of Deposits through Popular Transaction
Lowering Cost of Deposits through Popular Transaction Banc of California Popular Community Bank CA Pro-Forma (3Q14 average balance) (9/30/14 period end) CDs CDs CDs 20% 19% 20% DDA/Now DDA/Now DDA/Now 34% 31% 33% MMDA MMDA 19% Savings MMDA Savings 41% 9% 24% Savings 27% 23% Total Deposits: $3.5B Tot
Slide 13: Strong Capital Position
Strong Capital Position 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Pro-forma2 Banc of California, Inc. Tangible common equity to tangible assets 5.7% 5.1% 7.3% 7.2% 6.4% Tier 1 leverage ratio 8.0% 7.6% 9.9% 9.3% 8.0% Tangible book value per share $10.06 $9.94 $11.45 $11.34 $10.67 1 Tangiblebookvalueper share,a
Slide 14: Asset Quality
Asset Quality ($ in millions unless otherwise noted) 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Total Loans (HFI + HFS) $3.2 billion $3.4 billion $3.7 billion $3.8 billion Delinquent non-PCI loans to total non-PCI 2.43% 2.21% 2.69% 2.08% loans Non-performing Loans, excluding PCI loans $31.6 $32.4 $41.6 $38.3 N
Slide 15: Performance Versus Financial Targets
Performance Versus Financial Targets Stated Financial Targets Net InterestMargin1 Efficiency Ratio 3.75 – 4.00% 4.19% 4.05% 70 –75% 3.88% 3.78% 116% 3.48% 84% 96% 85% 82% 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 ROAA ROATCE 1% 15% 0.8% 1.0% 0.9% 12.0% 13.2% 0.1