Banc of California, Inc. (NASDAQ: BANC) (the “Company”), the holding company for Banc of California, National Association (the “Bank”), today announced financial results for the three and twelve months ending December 31, 2013.
The Company reported pretax earnings of $8.8 million for the fourth quarter and $7.3 million for the full year ending December 31, 2013. The Company’s net income was $3.3 million for the quarter, with net income available to common shareholders of $2.4 million, or $.12 per diluted common share, compared with a loss of $3.5 million, or $(.30) per diluted common share, for the fourth quarter ending December 31, 2012. The Company’s effective tax rate for the full year 2013 was 99% as a result of management’s decision to fully reserve for its net Deferred Tax Asset (“DTA”) of $17.3 million as of December 31, 2013. As a result, net income for the full year was reduced to $0.08 million, with a net loss available to common shareholders of $(2.1) million, or $(.14) per diluted common share, compared with net income of $4.6 million or $.40 per diluted share common share for the full year 2012.
Steven Sugarman, President and Chief Executive Officer of the Company, stated: “2013 was a transformational year for Banc of California. I am very proud of our team and all that we have accomplished this year. The Bank and our registered investment advisor subsidiary each made tremendous strides and finished the year profitably with accelerating pre-tax earnings. We are poised and excited to continue to execute on our strategic plans in 2014.”
Total gross loans and leases were $3.2 billion as of December 31, 2013 compared with $1.4 billion as of December 31, 2012, an increase of $1.8 billion or 132%. During the fourth quarter, the Company moved approximately $500 million of its jumbo mortgage loans previously classified as held for investment to a held for sale classification.
“We were pleased with the robust loan growth we saw in the fourth quarter. This included over $200 million of commercial loan originations during the period. We believe that the synergies of our previous bank acquisitions are starting to deliver meaningful results,” Sugarman noted.
Deposits totaled $2.9 billion as of December 31, 2013, more than doubled from $1.3 billion in deposits as of December 31, 2012, an increase of 123%. Total deposits decreased from September 2013 as a result of the sale of eight branches located in non-target markets, representing approximately $464 million in deposits. Adjusting for the branch sale transaction, the Bank’s deposits increased at an annualized growth rate of over 18% during the fourth quarter.
Sugarman commented, “The organic growth of our retail branch deposit franchise continued to provide strong liquidity and our prudent loan to deposit ratio provides ample liquidity for loan growth in 2014.”
Consolidated capital was approximately $325 million as of December 31, 2013 compared with approximately $189 million as of December 31, 2012. The Company, which became a financial holding company in January, and the Bank are both considered to be “well capitalized” under regulatory capital standards.
The Company will discuss its 2013 earnings, among other items, during a conference call on March 13, 2014, at 8:00 a.m. Pacific Time. All interested parties are welcome to attend the conference call at 888-339-2688, event code 11634944.
About Banc of California, Inc.
Since 1941, Banc of California, Inc. (NASDAQ:BANC) through its banking subsidiary Banc of California, National Association, has provided banking services and home loans to businesses and families in California and the West. Today, Banc of California, Inc. has over $3.6 billion in consolidated assets and more than 80 banking locations.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
Financial Highlights
As of or for the three months ended | As of or for the year ended | |||||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 3,321 | $ | (8,534 | ) | $ | (3,185 | ) | $ | 79 | $ | 5,996 | ||||||||||||||||||
Net income (loss) available to common stockholders | $ | 2,370 | $ | (9,480 | ) | $ | (3,502 | ) | $ | (2,106 | ) | $ | 4,637 | |||||||||||||||||
Diluted earnings (loss) per share | $ | 0.12 | $ | (0.53 | ) | $ | (0.30 | ) | $ | (0.14 | ) | $ | 0.40 | |||||||||||||||||
Return on average assets | 0.37 | % | -0.98 | % | -0.75 | % | 0.00 | % | 0.45 | % | ||||||||||||||||||||
Return on average equity | 4.06 | % | -10.05 | % | -6.49 | % | 0.03 | % | 3.17 | % | ||||||||||||||||||||
Net interest margin | 3.90 | % | 3.25 | % | 3.72 | % | 3.67 | % | 3.69 | % | ||||||||||||||||||||
Non-interest income | $ | 34,517 | $ | 18,226 | $ | 15,965 | $ | 96,743 | $ | 36,619 | ||||||||||||||||||||
Non-interest expense | $ | 57,214 | $ | 52,304 | $ | 28,943 | $ | 178,670 | $ | 71,560 | ||||||||||||||||||||
Provision for loan and lease losses | $ | 1,768 | $ | 2,109 | $ | 3,499 | $ | 7,963 | $ | 5,500 | ||||||||||||||||||||
Loans and leases receivable, net of allowance | $ | 2,427,306 | $ | 2,577,058 | $ | 1,234,023 | ||||||||||||||||||||||||
Total deposits | $ | 2,918,644 | $ | 3,259,374 | $ | 1,306,342 | ||||||||||||||||||||||||
Non-accrual loans | $ | 31,648 | $ | 15,408 | $ | 22,993 | ||||||||||||||||||||||||
Net charge-offs | $ | 650 | $ | (42 | ) | $ | 1,430 | $ | 2,163 | $ | 3,832 | |||||||||||||||||||
Allowance for loan and lease losses (ALLL) to total loans | 0.77 | % | 0.74 | % | 1.16 | % | ||||||||||||||||||||||||
ALLL that were collectively evaluated for impairment to originated loans | 1.46 | % | 1.30 | % | 1.48 | % | ||||||||||||||||||||||||
ALLL and Discount to total originated and non-credit impaired loans acquired through business acquisitions(1) | 1.63 | % | 1.56 | % | 1.52 | % | ||||||||||||||||||||||||
(1) The ratio was calculated by dividing a sum of ALLL and discounts by carrying value of loans | ||||||||||||||||||||||||||||||
Banc of California, Inc. | |||||||||||||||||
Consolidated Statements of Financial Condition | |||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
December 31, | September 30, | December 31, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
ASSETS | |||||||||||||||||
Cash and due from banks | $ | 4,937 | $ | 7,951 | $ | 8,254 | |||||||||||
Interest-bearing deposits | 105,181 | 408,059 | 100,389 | ||||||||||||||
Total cash and cash equivalents | 110,118 | 416,010 | 108,643 | ||||||||||||||
Time deposits in financial institutions | 1,846 | 2,938 | 5,027 | ||||||||||||||
Securities available for sale | 170,022 | 167,998 | 121,419 | ||||||||||||||
Federal Home Loan Bank and Other Bank stock, at cost | 22,600 | 14,789 | 8,842 | ||||||||||||||
Loans held for sale | 716,733 | 367,111 | 113,158 | ||||||||||||||
Loans and leases receivable, net of allowance | 2,427,306 | 2,577,058 | 1,234,023 | ||||||||||||||
Servicing rights, net | 13,883 | 7,603 | 2,278 | ||||||||||||||
Accrued interest receivable | 10,866 | 10,425 | 5,002 | ||||||||||||||
Other real estate owned, net | - | 1,383 | 4,527 | ||||||||||||||
Premises and equipment, net | 66,260 | 61,443 | 16,147 | ||||||||||||||
Premises and equipment held-for-sale | - | 3,080 | - | ||||||||||||||
Bank owned life insurance investment | 18,881 | 18,834 | 18,704 | ||||||||||||||
Deferred income tax | - | 5,515 | 7,572 | ||||||||||||||
Goodwill | 30,143 | 22,086 | 7,048 | ||||||||||||||
Affordable housing fund investment | 5,628 | 5,787 | 6,197 | ||||||||||||||
Income tax receivable | 2,995 | 4,077 | 5,545 | ||||||||||||||
Other intangible assets, net | 12,152 | 13,191 | 5,474 | ||||||||||||||
Other assets | 18,590 | 19,045 | 13,096 | ||||||||||||||
Total assets | $ | 3,628,023 | $ | 3,718,373 | $ | 1,682,702 | |||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
Deposits | |||||||||||||||||
Noninterest-bearing deposits | $ | 429,158 | $ | 418,759 | $ | 194,662 | |||||||||||
Interest-bearing deposits | 2,489,486 | 2,377,847 | 1,111,680 | ||||||||||||||
Deposits held for sale | - | 462,768 | - | ||||||||||||||
Total deposits | 2,918,644 | 3,259,374 | 1,306,342 | ||||||||||||||
Advances from Federal Home Loan Bank | 250,000 | 25,000 | 75,000 | ||||||||||||||
Notes payable, net | 82,320 | 82,224 | 81,935 | ||||||||||||||
Reserve for loss reimbursements on sold loans | 5,427 | 4,282 | 3,485 | ||||||||||||||
Accrued expenses and other liabilities | 46,763 | 44,913 | 27,183 | ||||||||||||||
Total liabilities | 3,303,154 | 3,415,793 | 1,493,945 | ||||||||||||||
Commitments and contingent liabilities | |||||||||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||||
Preferred stock, Series A, non-cumulative perpetual preferred stock | 31,934 | 31,934 | 31,934 | ||||||||||||||
Preferred stock, Series B, non-cumulative perpetual preferred stock | 10,000 | 10,000 | - | ||||||||||||||
Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock | 37,943 | 37,943 | - | ||||||||||||||
Common stock | 210 | 188 | 120 | ||||||||||||||
Common stock, class B non-voting non-convertible | 6 | 5 | 11 | ||||||||||||||
Additional paid-in capital | 256,306 | 230,804 | 154,563 | ||||||||||||||
Retained earnings | 16,981 | 17,027 | 26,550 | ||||||||||||||
Treasury stock | (27,911 | ) | (25,455 | ) | (25,818 | ) | |||||||||||
Accumulated other comprehensive (loss)/income, net | (600 | ) | 134 | 1,397 | |||||||||||||
Total shareholders’ equity | 324,869 | 302,580 | 188,757 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,628,023 | $ | 3,718,373 | $ | 1,682,702 | |||||||||||
Banc of California, Inc. | ||||||||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||
Loans, including fees | $ | 39,922 | $ | 32,061 | $ | 16,882 | $ | 116,673 | $ | 51,942 | ||||||||||||||||
Securities | 473 | 1,292 | 597 | 2,632 | 2,736 | |||||||||||||||||||||
Dividends and other interest-earning assets | 361 | 493 | 127 | 1,206 | 353 | |||||||||||||||||||||
Total interest and dividend income | 40,756 | 33,846 | 17,606 | 120,511 | 55,031 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Deposits | 5,665 | 5,084 | 1,675 | 16,051 | 5,960 | |||||||||||||||||||||
Federal Home Loan Bank advances | 92 | 56 | 82 | 269 | 348 | |||||||||||||||||||||
Capital leases | (38 | ) | 27 | 5 | 21 | 9 | ||||||||||||||||||||
Notes payable | 1,735 | 1,736 | 1,007 | 6,941 | 2,162 | |||||||||||||||||||||
Total interest expense | 7,454 | 6,903 | 2,769 | 23,282 | 8,479 | |||||||||||||||||||||
Net interest income | 33,302 | 26,943 | 14,837 | 97,229 | 46,552 | |||||||||||||||||||||
Provision for loan and lease losses | 1,768 | 2,109 | 3,499 | 7,963 | 5,500 | |||||||||||||||||||||
Net interest income after provision for loan and lease losses | 31,534 | 24,834 | 11,338 | 89,266 | 41,052 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||
Customer service fees | 266 | 621 | 601 | 1,942 | 1,883 | |||||||||||||||||||||
Mortgage banking income | 15,028 | 16,231 | 15,764 | 67,890 | 21,310 | |||||||||||||||||||||
All other income | 19,223 | 1,374 | (400 | ) | 26,911 | 13,426 | ||||||||||||||||||||
Total noninterest income | 34,517 | 18,226 | 15,965 | 96,743 | 36,619 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||
Salaries and employee benefits | 36,117 | 30,179 | 18,234 | 110,687 | 41,891 | |||||||||||||||||||||
Occupancy and equipment | 7,592 | 5,247 | 3,109 | 19,662 | 7,902 | |||||||||||||||||||||
All other expenses | 13,505 | 16,878 | 7,600 | 48,321 | 21,767 | |||||||||||||||||||||
Total noninterest expense | 57,214 | 52,304 | 28,943 | 178,670 | 71,560 | |||||||||||||||||||||
Income (loss) before income taxes | 8,837 | (9,244 | ) | (1,640 | ) | 7,339 | 6,111 | |||||||||||||||||||
Income tax (benefit) expense | 5,516 | (710 | ) | 1,545 | 7,260 | 115 | ||||||||||||||||||||
Net income (loss) | 3,321 | (8,534 | ) | (3,185 | ) | 79 | 5,996 | |||||||||||||||||||
Preferred stock dividends and discount accretion | 951 | 946 | 317 | 2,185 | 1,359 | |||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 2,370 | $ | (9,480 | ) | $ | (3,502 | ) | $ | (2,106 | ) | $ | 4,637 | |||||||||||||
Basic earnings (loss) per common share | $ | 0.13 | $ | (0.53 | ) | $ | (0.30 | ) | $ | (0.14 | ) | $ | 0.40 | |||||||||||||
Diluted earnings (loss) per common share | $ | 0.12 | $ | (0.53 | ) | $ | (0.30 | ) | $ | (0.14 | ) | $ | 0.40 | |||||||||||||
Basic earnings (loss) per class B common share | $ | 0.13 | $ | (0.53 | ) | $ | (0.30 | ) | $ | (0.14 | ) | $ | 0.40 | |||||||||||||
Diluted earnings (loss) per class B common share | $ | 0.13 | $ | (0.53 | ) | $ | (0.30 | ) | $ | (0.14 | ) | $ | 0.40 | |||||||||||||
Banc of California, Inc. | |||||||||||||||||||||||||||
Selected Financial Data | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
As of or for the three months ended, | As of or for the year ended, | ||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Quarterly average balance: | |||||||||||||||||||||||||||
Total assets | $ | 3,555,265 | $ | 3,439,433 | $ | 1,687,680 | $ | 2,773,276 | $ | 1,342,844 | |||||||||||||||||
Total gross loans and leases | 3,056,232 | 2,530,856 | 1,348,304 | 2,217,421 | 1,053,240 | ||||||||||||||||||||||
Securities available for sale | 170,350 | 221,245 | 127,297 | 153,229 | 115,467 | ||||||||||||||||||||||
Total interest earning assets | 3,387,120 | 3,286,840 | 1,588,273 | 2,647,070 | 1,266,609 | ||||||||||||||||||||||
Total deposits | 2,936,922 | 2,948,644 | 1,339,639 | 2,313,733 | 1,056,937 | ||||||||||||||||||||||
Total borrowings | 244,708 | 124,419 | 126,546 | 160,045 | 80,870 | ||||||||||||||||||||||
Total shareholders’ equity | 324,290 | 336,963 | 195,305 | 264,818 | 189,411 | ||||||||||||||||||||||
Interest bearing liabilities | 2,752,010 | 2,659,186 | 1,244,603 | 2,186,453 | 996,234 | ||||||||||||||||||||||
Profitability and other ratios: | |||||||||||||||||||||||||||
Return on avg. assets(1) | 0.37 | % | -0.98 | % | -0.75 | % | 0.00 | % | 0.45 | % | |||||||||||||||||
Return on avg. equity(1) | 4.06 | % | -10.05 | % | -6.49 | % | 0.03 | % | 3.17 | % | |||||||||||||||||
Net interest margin(1) | 3.90 | % | 3.25 | % | 3.72 | % | 3.67 | % | 3.69 | % | |||||||||||||||||
Noninterest income to total revenue(2) | 50.90 | % | 40.35 | % | 51.83 | % | 49.87 | % | 44.03 | % | |||||||||||||||||
Noninterest income to avg. assets(1) | 3.85 | % | 2.10 | % | 3.76 | % | 3.49 | % | 2.73 | % | |||||||||||||||||
Noninterest exp. to avg. assets(1) | 6.38 | % | 6.03 | % | 6.82 | % | 6.44 | % | 5.33 | % | |||||||||||||||||
Efficiency ratio(3) | 84.36 | % | 115.80 | % | 93.96 | % | 92.11 | % | 86.04 | % | |||||||||||||||||
Avg. loans to average deposits | 104.06 | % | 85.83 | % | 100.65 | % | 95.84 | % | 99.65 | % | |||||||||||||||||
Average securities available for sale to average total assets | 4.79 | % | 6.43 | % | 7.54 | % | 5.53 | % | 8.60 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 123.08 | % | 123.60 | % | 127.61 | % | 121.07 | % | 127.14 | % | |||||||||||||||||
Average stockholders’ equity to average total assets | 9.12 | % | 9.80 | % | 11.57 | % | 9.55 | % | 14.11 | % | |||||||||||||||||
Asset quality information and ratios: | |||||||||||||||||||||||||||
Nonaccrual Loans, excluding PCI loans | $ | 31,648 | $ | 15,408 | $ | 22,993 | |||||||||||||||||||||
90+ delinquent loans, excluding PCI loans | 13,441 | 14,100 | 9,123 | ||||||||||||||||||||||||
Other real estate owned (OREO), net | - | 1,383 | 4,527 | ||||||||||||||||||||||||
Net loan charge-offs | 650 | (42 | ) | 1,430 | $ | 2,163 | $ | 3,832 | |||||||||||||||||||
Loan breakdown by evaluation type: | |||||||||||||||||||||||||||
Originated loans | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 16,704 | $ | 18,027 | $ | 28,859 | |||||||||||||||||||||
Collectively evaluated for impairment | 1,168,195 | 1,234,648 | 894,952 | ||||||||||||||||||||||||
Acquired loans through business acquisitions - non-impaired | |||||||||||||||||||||||||||
Individually evaluated for impairment | 2,243 | 2,207 | 4,669 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 469,916 | 523,590 | 219,771 | ||||||||||||||||||||||||
Seasoned SFR mortgage loan pools - non-impaired | 449,767 | 468,590 | - | ||||||||||||||||||||||||
Acquired with deteriorated credit quality | 339,286 | 349,126 | 100,220 | ||||||||||||||||||||||||
Total loans | $ | 2,446,111 | $ | 2,596,188 | $ | 1,248,471 | |||||||||||||||||||||
Allowance for loan and lease losses (ALLL) breakdown: | |||||||||||||||||||||||||||
Originated loans | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 96 | $ | 1,377 | $ | 1,187 | |||||||||||||||||||||
Collectively evaluated for impairment | 17,103 | 15,999 | 13,208 | ||||||||||||||||||||||||
Acquired loans through business acquisitions - non-impaired | |||||||||||||||||||||||||||
Individually evaluated for impairment | - | 22 | 53 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 1,410 | 1,420 | - | ||||||||||||||||||||||||
Seasoned SFR mortgage loan pools - non-impaired | - | - | - | ||||||||||||||||||||||||
Acquired with deteriorated credit quality | 196 | 312 | - | ||||||||||||||||||||||||
Total ALLL | $ | 18,805 | $ | 19,130 | $ | 14,448 | |||||||||||||||||||||
Discount on Purchased/Acquired Loans: | |||||||||||||||||||||||||||
Acquired loans through business acquisitions - non-impaired | $ | 8,354 | $ | 9,003 | $ | 3,019 | |||||||||||||||||||||
Seasoned SFR mortgage loan pools - non-impaired | 38,240 | 38,002 | - | ||||||||||||||||||||||||
Acquired with deteriorated credit quality | 105,650 | 110,081 | 51,572 | ||||||||||||||||||||||||
Total Discount | $ | 152,244 | $ | 157,086 | $ | 54,591 | |||||||||||||||||||||
Ratios: | |||||||||||||||||||||||||||
To originated loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | 0.57 | % | 7.64 | % | 4.11 | % | |||||||||||||||||||||
Collectively evaluated for impairment | 1.46 | % | 1.30 | % | 1.48 | % | |||||||||||||||||||||
Total ALLL | 1.45 | % | 1.39 | % | 1.56 | % | |||||||||||||||||||||
To originated and acquired non-impaired loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | 0.51 | % | 6.91 | % | 3.70 | % | |||||||||||||||||||||
Collectively evaluated for impairment | 1.13 | % | 0.99 | % | 1.18 | % | |||||||||||||||||||||
Total ALLL | 1.12 | % | 1.06 | % | 1.26 | % | |||||||||||||||||||||
Total ALLL and discount(4) | 1.63 | % | 1.56 | % | 1.52 | % | |||||||||||||||||||||
To total loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | 0.51 | % | 6.91 | % | 3.70 | % | |||||||||||||||||||||
Collectively evaluated for impairment | 0.89 | % | 0.78 | % | 1.18 | % | |||||||||||||||||||||
Total ALLL | 0.77 | % | 0.74 | % | 1.16 | % | |||||||||||||||||||||
Total ALLL and discount(4) | 6.99 | % | 6.79 | % | 5.53 | % | |||||||||||||||||||||
(1) | Ratios are presented on an annualized basis | |
(2) | Total revenue is equal to the sum of net interest income before provision and noninterest income | |
(3) | Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan losses and noninterest income | |
(4) | The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans | |
Banc of California, Inc. | ||||||||||||||
Selected Quarterly Financial Data | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
As of | ||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||
2013 | 2013 | 2012 | ||||||||||||
Capital Ratios | ||||||||||||||
Banc of California, Inc. | ||||||||||||||
Total risk-based capital ratio: | 12.45 | % | 12.64 | % | 15.50 | % | ||||||||
Tier 1 risk-based capital ratio: | 11.41 | % | 11.58 | % | 14.25 | % | ||||||||
Tier 1 leverage ratio: | 8.02 | % | 7.82 | % | 10.15 | % | ||||||||
Banc of California, NA(1) | ||||||||||||||
Total risk-based capital ratio: | 14.65 | % | 15.39 | % | 17.59 | % | ||||||||
Tier 1 risk-based capital ratio: | 13.60 | % | 14.14 | % | 16.34 | % | ||||||||
Tier 1 leverage ratio: | 9.58 | % | 8.11 | % | 11.16 | % | ||||||||
The Private Bank of California(1) | ||||||||||||||
Total risk-based capital ratio: | N/A | 11.55 | % | 15.09 | % | |||||||||
Tier 1 risk-based capital ratio: | N/A | 11.06 | % | 14.72 | % | |||||||||
Tier 1 leverage ratio: | N/A | 8.34 | % | 11.96 | % |
(1) | On October 11, 2013, The Private Bank of California was merged with the Company's other wholly owned banking subsidiary, Banc of California, NA. | |
Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles ("GAAP"). This non-GAAP measure is used by management in the analysis of Banc of California, Inc.’s. capital strength. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders' equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Banc of California, Inc. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:
As of | |||||||||||||||||
December 31, | September 30, | December 31, | |||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||
Non-GAAP performance measure | |||||||||||||||||
Tangible common equity to tangible assets ratio | |||||||||||||||||
Total assets | $ | 3,628,023 | $ | 3,718,373 | $ | 1,682,702 | |||||||||||
Less goodwill | (30,143 | ) | (22,086 | ) | (7,048 | ) | |||||||||||
Less other intangible assets | (12,152 | ) | (13,191 | ) | (5,474 | ) | |||||||||||
Tangible assets | $ | 3,585,728 | $ | 3,683,096 | $ | 1,670,180 | |||||||||||
Total stockholders' equity | $ | 324,869 | $ | 302,580 | $ | 188,757 | |||||||||||
Less preferred stock | (79,877 | ) | (79,877 | ) | (31,934 | ) | |||||||||||
Less goodwill | (30,143 | ) | (22,086 | ) | (7,048 | ) | |||||||||||
Less other intangible assets | (12,152 | ) | (13,191 | ) | (5,474 | ) | |||||||||||
Tangible stockholders' equity | $ | 202,697 | $ | 187,426 | $ | 144,301 | |||||||||||
Total stockholders' equity to total assets | 8.95 | % | 8.14 | % | 11.22 | % | |||||||||||
Tangible stockholders' equity to tangible assets | 5.65 | % | 5.09 | % | 8.64 | % | |||||||||||
Common stock outstanding | 19,561,469 | 17,439,562 | 10,780,427 | ||||||||||||||
Class B non-voting non-convertible common stock outstanding | 584,674 | 579,490 | 1,112,188 | ||||||||||||||
Total common stock outstanding | 20,146,143 | 18,019,052 | 11,892,615 | ||||||||||||||
Tangible common equity per common stock | $ | 10.06 | $ | 10.40 | $ | 12.13 |
Contacts:
Banc of California, Inc.
Richard
Herrin, 855-361-2262
or
MEDIA INQUIRIES:
Vectis
Strategies
David Herbst, 213-973-4113 x101