Banc Of California, Inc. · NYSE:BANC
Banc Of California — Q2 2016 Earnings Presentation
13 slides from Banc Of California's earnings presentation, Jul 21, 2016
Slide 1: 2016 Second Quarter Earnings Investor Presentation
July 21, 2016 2016 Second 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: California Strong
Banc of California: California Strong $10.2 billion in Assets Record $1.1 billion deposit growth in 2Q Record $803 million of organic loan growth in 2Q #1 Total Shareholder Return of all banks on 2016 Forbes Top 100 Banks List from January 1, 2015 to July 13, 2016 Dollars in billions 3 Dollars in mi
Slide 4: Track-Record of Compelling Financial Results
Diluted 2 Dollars in million 3 $0.43 GAAP Reported, adjusted excluding $2.7 million of debt redemption costs incurred in Q2 related to senior note redemption 4 Return on Assets and Return on Tangible Common Equity based on average assets and average tangible common equity, respectively, over stated
Slide 5: Accelerating Growth of Core, Spread-based Businesses
+50% Accelerating Growth of Core, Spread-based Businesses Commercial Banking Segment Driving Earnings Strength Dollars in millions 2 Business Segment Pretax Income inclusive of intra-company allocations; excludes unallocated Corporate / Other interest expense. Mortgage Banking and Financial Advisory
Slide 6: Scale Resulting in Increased Efficiencies and Productivity
Scale Resulting in Increased Efficiencies and Productivity Continue to Target 40% Marginal Efficiency Ratio ($ in millions) Assets / FTE Efficiency Ratio -21% Business Segment Noninterest Expense / Total Assets 5.6% 4.9% 4.5% 4.0% 4.0%
Slide 7: Record 2Q Deposit Growth Helped to Reduce Borrowings
Record 2Q Deposit Growth Helped to Reduce Borrowings Strong Liquidity Position Key to Continued Long Term Growth Total Liabilities (Quarter-over-Quarter) ($ in millions) Record quarterly deposit growth of $1.1 billion; Decline in total interest expense $(275) $9,218 $1,091 Total funding includes tot
Slide 8: Loan Production by Business Segment
Loan Production by Business Segment Commercial Banking Drives Growth in Loan Production On Track to Meet or Exceed 2016 Production Target of $8 Billion ($ in millions) +37% Total 2Q loan production of $2.6 billion, including $1.3 billion of commercial banking segment production Commercial banking lo
Slide 9: Commercial Banking Loan Production Led By C&I Lending
Commercial Banking Loan Production Led By C&I Lending New Commercial Banking Team Additions Resulting in Increased C&I Lending C&I Loans include SBA and Lease loans $1.3 billion in total 2Q16 commercial banking segment production Record $473 million 2Q16 C&I production Record $302 million 2Q16 CRE &
Slide 10: Capital Ratios Continue to Exceed Basel III Guidelines
Capital Ratios Continue to Exceed Basel III Guidelines 2Q Equity Raise Resulted in Stronger Mix of Capital and Increased Consolidated Liquidity BASEL III Capital Requirements BANC Capital Ratios
Slide 11: Market Leading Asset and Earnings Growth Rates
Market Leading Asset and Earnings Growth Rates 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 Deposits1 Earnings per Share3 Pretax Income2 Assets1 4 2016 Guidance Annua
Slide 12: Asset Quality Remains Strong and Stable
Asset Quality Remains Strong and Stable 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 % Change YoY NPAs / Assets 0.66% 0.62% 0.56% 0.46% 0.45% (32%) NPAs / Equity 6.7% 7.0% 7.1% 5.1% 4.8% (28%) ALLL / NPLs 81% 77% 79% 81% 83% 2% ALLL / Total Loans 0.78% 0.74% 0.69% 0.66% 0.60% (23%) ALLL and Discount / To
Slide 13: 2016 Guidance Implies Continued Outperformance
2016 Guidance Implies Continued Outperformance Maintaining ROATCE and ROAA with Strong Balance Sheet Growth Will Yield 15%+ EPS Growth Excluding expenses related to capital transactions Metric FY 2016 On Target ROATCE 15% ROAA 1%+ Efficiency Ratio 65% – 70% Total Assets $10 – $11 billion Earnings Pe