BANC OF CALIFORNIA, INC. - FORM 8-K - EX-99.1

Attached files

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8-K - FORM 8-K - BANC OF CALIFORNIA, INC.	d71032d8k.htm
EX-99.2 - EX-99.2 - BANC OF CALIFORNIA, INC.	d71032dex992.htm

Exhibit 99.1

LOGO

Banc of California Reports Third Quarter Earnings

IRVINE, Calif., (October 29, 2015) – Banc of California, Inc. (NYSE: BANC) today reported net income of $14.5 million and net income available to common shareholders of $11.5 million, resulting in $0.29 per diluted common share for the quarter ended September 30, 2015.

Net income available to common shareholders for the nine months ended September 30, 2015 was $36.2 million, resulting in $0.93 per diluted common share, compared to $17.4 million, resulting in $0.63 per diluted common share for the nine months ended September 30, 2014.

Highlights for the third quarter, compared to the prior quarter, included:

•

Record quarterly core deposit growth exceeding $500 million (net of branch sales and offsetting the reduction in brokered and treasury deposits)

•

Record quarterly commercial banking segment loan originations of $729 million (excludes mortgage banking originations)

•

Noninterest bearing deposits increased by $143 million, or 17%, quarter over quarter and now exceed $1 billion

•

Noninterest expenses declined by $6.2 million quarter over quarter

•

Continued strong and stable asset quality

“The third quarter was highlighted by strong core deposit growth and accelerating loan originations in our commercial banking segment,” said Steven Sugarman, Chairman and Chief Executive Officer. “We are especially pleased with the growth of noninterest bearing deposits during the quarter which reflect our team’s success growing and deepening client relationships.”

The Company’s consolidated assets totaled $7.3 billion at September 30, 2015, an increase of $0.8 billion compared to the prior quarter, and an increase of $2.7 billion compared to a year ago. Return on average assets for the third quarter was 0.9%, and return on average tangible common equity was 12% for the third quarter.

“The third quarter results mark the sixth straight quarter since the reorganization of our bank’s Board of Directors and management team in which the Company has exceeded consensus earnings estimates, and we are on pace to exceed analysts’ full year 2015 consensus earnings estimates,” Mr. Sugarman continued. “The Board and executive management team have set preliminary targets for 2016 that include earnings per share growth of 15%, return on average assets of 1% and return on tangible common equity of 15%. Additionally, in light of the benefits of scale we are beginning to see throughout the business, we are lowering our efficiency ratio target for 2016 by 5% to 65-70%.”

The Company will host a conference call to discuss its third quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, October 29, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 9759464. A live audio webcast will also be available and the webcast link will be posted on the Company’s website under the Investors section. The slide presentation for the call will also be available on the Company’s website prior to the call.

18500 Von Karman Ave. ● Suite 1100 ● Irvine, CA 92612 ● (949) 236-5250 ● www.bancofcal.com

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) provides comprehensive banking services to California’s diverse private businesses, entrepreneurs and homeowners. Banc of California operates over 100 offices in California and the West.

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.

Source: Banc of California, Inc.


INVESTOR RELATIONS INQUIRIES:		MEDIA INQUIRIES:

Banc of California, Inc.		Vectis Strategies
Timothy Sedabres, (855) 361-2262		David Herbst, (213) 973-4113 x101

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Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015			2014			2014
ASSETS
Cash and cash equivalents	$	378,963		$	458,990		$	265,402		$	231,199		$	184,985
Time deposits in financial institutions		1,900			1,900			1,900			1,900			1,900
Securities available for sale		693,219			487,293			393,586			345,695			310,385
Securities held to maturity		529,532			53,414			—			—			—
Loans held for sale		596,565			746,651			1,240,942			1,187,090			1,127,339
Loans and leases receivable		4,730,077			4,473,095			3,933,715			3,949,122			2,712,068
Allowance for loan and lease losses		(34,774	)		(34,787	)		(29,345	)		(29,480	)		(25,283	)
Federal Home Loan Bank and other bank stock		40,643			34,187			39,844			42,241			35,432
Servicing rights, net		41,646			34,942			21,829			19,566			11,745
Other real estate owned, net		34			50			498			423			605
Premises and equipment, net		34,689			35,229			78,285			78,685			67,323
Goodwill		39,244			31,591			31,591			31,591			31,591
Other intangible assets, net		20,504			21,905			23,708			25,252			10,829
Deferred income tax ⁽¹⁾		13,388			12,081			14,157			16,373			8,663
Income tax receivable		2,649			3,091			—			—			—
Bank-owned life insurance investment		99,570			19,201			19,154			19,095			19,038
Other assets ⁽¹⁾		68,961			59,049			62,089			52,545			41,206

Total assets	$	7,256,810		$	6,437,882		$	6,097,355		$	5,971,297		$	4,537,826

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits	$	1,011,169		$	867,930		$	749,129		$	662,295		$	457,743
Interest-bearing deposits		4,410,821			4,184,260			4,112,863			4,009,536			3,173,967
Deposits held for sale		—			52,820			—			—			—

Total deposits		5,421,990			5,105,010			4,861,992			4,671,831			3,631,710
Advances from Federal Home Loan Bank		830,000			350,000			545,000			633,000			305,000
Other borrowings		—			—			15,000			—			—
Notes payable, net		262,779			264,077			92,668			93,569			95,549
Reserve for loss on repurchased loans		9,098			9,411			8,432			8,303			7,045
Income taxes payable		5,939			—			4,488			56			2,158
Accrued expenses and other liabilities		83,470			75,502			55,615			61,223			49,653

Total liabilities		6,613,276			5,804,000			5,583,195			5,467,982			4,091,115
Commitments and contingent liabilities

Preferred stock, Series A, non-cumulative perpetual		31,934			31,934			31,934			31,934			31,934
Preferred stock, Series B, non-cumulative perpetual		10,000			10,000			10,000			10,000			10,000
Preferred stock, Series C, 8.00% non-cumulative perpetual		37,943			37,943			37,943			37,943			37,943
Preferred stock, Series D, 7.375% non-cumulative perpetual		110,873			110,873			—			—			—
Common stock		393			372			367			358			297
Common stock, class B non-voting non-convertible		—			—			—			6			6
Additional paid-in capital		427,599			425,784			424,636			422,910			371,738
Retained earnings ⁽¹⁾		52,277			45,494			36,880			29,589			24,692
Treasury stock		(29,070	)		(29,070	)		(29,798	)		(29,798	)		(29,798	)
Accumulated other comprehensive income/(loss), net		1,585			552			2,198			373			(101	)

Total stockholders’ equity		643,534			633,882			514,160			503,315			446,711

Total liabilities and stockholders’ equity	$	7,256,810		$	6,437,882		$	6,097,355		$	5,971,297		$	4,537,826

(1)

Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

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Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended													Nine Months Ended
	September 30,			June 30,		March 31,			December 31,			September 30,		September 30,			September 30,
	2015			2015		2015			2014			2014		2015			2014
Interest and dividend income
Loans, including fees	$	60,454		$	60,699	$	58,155		$	52,599		$	44,555	$	179,308		$	128,162
Securities		5,054			2,119		1,927			1,781			1,460		9,100			3,377
Dividends and other interest-earning assets		1,007			2,026		698			700			634		3,731			1,520

Total interest and dividend income		66,515			64,844		60,780			55,080			46,649		192,139			133,059
Interest expense
Deposits		6,395			6,165		6,361			6,440			6,165		18,921			17,971
Federal Home Loan Bank advances		587			290		353			210			118		1,230			317
Notes payable and other interest-bearing liabilities		3,983			4,285		2,069			2,099			2,180		10,337			5,825

Total interest expense		10,965			10,740		8,783			8,749			8,463		30,488			24,113

Net interest income		55,550			54,104		51,997			46,331			38,186		161,651			108,946
Provision for loan and lease losses		735			5,474		—			4,159			2,780		6,209			6,817

Net interest income after provision for loan and lease losses		54,815			48,630		51,997			42,172			35,406		155,442			102,129
Noninterest income
Customer service fees		1,118			1,072		910			651			230		3,100			839
Loan servicing income		(2,254	)		2,007		(442	)		1,248			924		(689	)		2,951
Net gain on sale of securities available for sale		1,750			—		(2	)		661			—		1,748			522
Net gain on sale of loans		9,737			7,838		4,472			3,927			10,260		22,047			15,901
Mortgage banking income		37,015			39,403		37,933			25,030			26,943		114,351			70,400
Advisory service fees		2,294			4,435		1,197			6,722			3,264		7,926			6,182
Loan brokerage income		660			661		1,141			2,314			2,033		2,462			6,360
Gain on sale of building		—			9,919		—			—			—		9,919			—
All other income		407			1,358		771			336			444		2,536			1,593

Total noninterest income		50,727			66,693		45,980			40,889			44,098		163,400			104,748
Noninterest expense
Salaries and employee benefits		53,215			56,120		49,771			47,974			41,094		159,106			114,905
Occupancy and equipment		10,109			10,325		9,771			9,512			7,969		30,205			23,931
Professional fees		5,261			6,689		3,435			7,096			4,758		15,385			12,151
Data processing		2,170			2,075		1,835			1,884			1,286		6,080			3,347
Amortization of intangible assets		1,401			1,545		1,544			1,306			890		4,490			2,773
All other expenses ⁽¹⁾		9,587			11,166		9,523			10,448			11,357		30,276			28,145

Total noninterest expense		81,743			87,920		75,879			78,220			67,354		245,542			185,252

Income before income taxes		23,799			27,403		22,098			4,841			12,150		73,300			21,625
Income tax (benefit) expense ⁽¹⁾		9,263			11,479		9,524			(5,269	)		903		30,266			1,530

Net income		14,536			15,924		12,574			10,110			11,247		43,034			20,095
Preferred stock dividends		3,040			2,843		910			910			910		6,793			2,730

Net income available to common stockholders	$	11,496		$	13,081	$	11,664		$	9,200		$	10,337	$	36,241		$	17,365

Basic earnings per total common share	$	0.29		$	0.33	$	0.30		$	0.25		$	0.31	$	0.95		$	0.64
Diluted earnings per total common share	$	0.29		$	0.32	$	0.29		$	0.25		$	0.31	$	0.93		$	0.63

(1)

Amounts for 2014 periods have been updated to reflect the first quarter 2015 adoption of ASU 2014-1 related to investment in low income housing tax credit.

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Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2015			2015			2015			2014			2014			2015			2014
Average balances
Total assets	$	6,681,590		$	6,253,350		$	5,931,426		$	5,223,463		$	4,391,523		$	6,291,536		$	4,053,810
Total gross loans and leases		5,271,293			5,254,729			5,139,399			4,534,428			3,829,204			5,222,290			3,559,505
Investment Securities		828,326			402,366			354,475			310,454			257,067			530,124			196,446
Total interest earning assets		6,449,862			5,967,200			5,713,766			5,033,973			4,228,555			6,046,305			3,887,559
Total interest-bearing deposits		4,314,330			4,078,540			4,085,673			3,699,464			3,070,130			4,160,352			2,841,303
Total borrowings		745,959			635,460			583,979			406,531			378,671			655,726			349,794
Total interest bearing liabilities		5,060,289			4,714,000			4,669,652			4,105,995			3,448,801			4,816,078			3,191,097
Total stockholders’ equity		645,713			630,547			517,335			487,578			449,392			598,335			388,474
Profitability and other ratios
Return on average assets⁽¹⁾		0.86	%		1.02	%		0.86	%		0.77	%		1.02	%		0.91	%		0.66	%
Return on average equity ⁽¹⁾		8.93	%		10.13	%		9.86	%		8.23	%		9.93	%		9.62	%		6.92	%
Dividend payout ratio ⁽²⁾		41.38	%		36.36	%		40.00	%		48.00	%		38.71	%		37.89	%		56.25	%
Net interest spread		3.23	%		3.45	%		3.55	%		3.49	%		3.41	%		3.40	%		3.57	%
Net interest margin⁽¹⁾		3.42	%		3.64	%		3.69	%		3.65	%		3.58	%		3.57	%		3.75	%
Noninterest income to total revenue ⁽³⁾		47.73	%		55.21	%		46.93	%		46.88	%		53.59	%		50.27	%		49.02	%
Noninterest income to average total assets⁽¹⁾		3.01	%		4.28	%		3.14	%		3.11	%		3.98	%		3.47	%		3.45	%
Noninterest expense to average total assets⁽¹⁾		4.85	%		5.64	%		5.19	%		5.94	%		6.08	%		5.22	%		6.11	%
Efficiency ratio⁽⁴⁾		76.92	%		72.78	%		77.45	%		89.68	%		81.86	%		75.54	%		86.69	%
Average held for investment loans and leases to average deposits		86.03	%		79.87	%		81.72	%		79.08	%		75.39	%		82.63	%		76.60	%
Average investment securities to average total assets		12.40	%		6.43	%		5.98	%		5.94	%		5.85	%		8.43	%		4.85	%
Average stockholders’ equity to average total assets		9.66	%		10.08	%		8.72	%		9.33	%		10.23	%		9.51	%		9.58	%
Allowance for loan and lease losses (ALLL)
Balance at beginning of period	$	34,787		$	29,345		$	29,480		$	25,283		$	22,627		$	29,480		$	18,805
Loans and leases charged off		(788	)		(79	)		(357	)		(25	)		(312	)		(1,224	)		(898	)
Recoveries		40			47			222			63			96			309			1,172
Transfer of loans from (to) held-for-sale		—			—			—			—			92			—			(613	)
Provision for loan and lease losses		735			5,474			—			4,159			2,780			6,209			6,817

Balance at end of period	$	34,774		$	34,787		$	29,345		$	29,480		$	25,283		$	34,774		$	25,283

Annualized net loan charge-offs to average total gross loans held for investment		0.07	%		0.00	%		0.01	%		0.00	%		0.03	%		0.03	%		-0.01	%
Reserve for loss on repurchased loans
Balance at beginning of period	$	9,411		$	8,432		$	8,303		$	7,045		$	6,174		$	8,303		$	5,427
Provision for loan repurchases		716			1,573			1,328			1,149			1,556			3,617			3,094
Payment for loss reimbursement on sold loans		(1,029	)		(594	)		(1,199	)		109			(685	)		(2,822	)		(1,476	)

Balance at end of period	$	9,098		$	9,411		$	8,432		$	8,303		$	7,045		$	9,098		$	7,045

(1)

Ratios are presented on an annualized basis.

(2)

Dividends declared per common share divided by basic earnings per share.

(3)

Total revenue is equal to the sum of net interest income before provision and noninterest income.

(4)

The ratios were calculated by dividing noninterest expense by the sum of net interest income before provision for loan and lease losses and noninterest income.

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Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015			2014			2014
Asset quality information and ratios
30 to 89 days delinquent, excluding PCI loans	$	48,550		$	46,820		$	40,641		$	40,694		$	35,531
90+ days delinquent, excluding PCI loans		23,725			22,855			20,538			16,835			15,672

Total delinquent loans, excluding PCI loans		72,275			69,675			61,179			57,529			51,203

PCI loans, 30 to 89 days delinquent		17,593			17,351			16,375			17,641			18,743
PCI loans, 90+ days delinquent		6,223			8,648			6,986			5,761			4,017

Total delinquent PCI loans		23,816			25,999			23,361			23,402			22,760

Total delinquent loans	$	96,091		$	95,674		$	84,540		$	80,931		$	73,963

Total delinquent non-PCI loans to total non-PCI loans		1.66	%		1.66	%		1.66	%		1.55	%		2.08	%
Total delinquent loans to gross loans		2.03	%		2.14	%		2.15	%		2.05	%		2.73	%

Non-performing loans, excluding PCI loans	$	45,188		$	42,708		$	42,754		$	38,381		$	38,333
90+ days delinquent and still accruing loans, excluding PCI loans		—			—			—			—			—
Other real estate owned		34			50			498			423			605

Non-performing assets	$	45,222		$	42,758		$	43,252		$	38,804		$	38,938

ALLL to non-performing loans		76.95	%		81.45	%		68.64	%		76.81	%		65.96	%
Non-performing loans to gross loans		0.96	%		0.95	%		1.09	%		0.97	%		1.41	%
Non-performing assets to total assets		0.62	%		0.66	%		0.71	%		0.65	%		0.86	%

Troubled Debt Restructings (TDRs)
Performing TDRs	$	9,378		$	7,402		$	7,431		$	6,346		$	5,071
Non-performing TDRs		2,017			1,937			1,964			1,665			2,860

Total TDRs	$	11,395		$	9,339		$	9,395		$	8,011		$	7,931

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Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015			2014			2014
Loan and lease breakdown by ALLL evaluation type
Originated loans and leases
Individually evaluated for impairment	$	31,008		$	31,791		$	29,301		$	29,287		$	29,030
Collectively evaluated for impairment		2,776,601			2,489,347			1,947,212			1,892,240			1,668,004
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		1,704			8			2,818			4,191			8,004
Collectively evaluated for impairment		1,174,573			1,294,384			1,358,184			1,411,927			377,554
Seasoned SFR mortgage loan pools - non-impaired		373,634			391,193			354,402			364,580			376,575
Acquired with deteriorated credit quality		372,557			266,372			241,798			246,897			252,901

Total loans	$	4,730,077		$	4,473,095		$	3,933,715		$	3,949,122		$	2,712,068

ALLL breakdown
Originated loans and leases
Individually evaluated for impairment	$	512		$	686		$	1,199		$	1,288		$	517
Collectively evaluated for impairment		31,419			31,440			25,474			25,263			22,011
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment		—			—			—			—			7
Collectively evaluated for impairment		2,637			2,455			2,466			2,906			2,748
Seasoned SFR mortgage loan pools - non-impaired		—			—			—			—			—
Acquired with deteriorated credit quality		206			206			206			23			—

Total ALLL	$	34,774		$	34,787		$	29,345		$	29,480		$	25,283

Discount on Purchased/Acquired Loans
Acquired loans through business acquisitions - non-impaired	$	21,759		$	15,245		$	16,877		$	17,866		$	6,512
Seasoned SFR mortgage loan pools - non-impaired		27,699			29,201			28,967			29,955			30,811
Acquired with deteriorated credit quality		41,280			52,394			53,381			55,865			57,961

Total Discount	$	90,738		$	96,840		$	99,225		$	103,686		$	95,284

Ratios
To originated loans:
Individually evaluated for impairment		1.65	%		2.16	%		4.09	%		4.40	%		1.78	%
Collectively evaluated for impairment ⁽¹⁾		1.13	%		1.26	%		1.31	%		1.34	%		1.32	%
Total ALLL		1.14	%		1.27	%		1.35	%		1.38	%		1.33	%
To originated and acquired non-impaired loans:
Individually evaluated for impairment		1.57	%		2.16	%		3.73	%		3.85	%		1.41	%
Collectively evaluated for impairment		0.86	%		0.90	%		0.85	%		0.85	%		1.21	%
Total ALLL		0.87	%		0.91	%		0.87	%		0.88	%		1.21	%
Total ALLL and discount ⁽²⁾		1.41	%		1.31	%		1.38	%		1.42	%		1.53	%
To total loans:
Individually evaluated for impairment		1.57	%		2.16	%		3.73	%		3.85	%		1.41	%
Collectively evaluated for impairment		0.79	%		0.81	%		0.76	%		0.77	%		1.02	%
Total ALLL		0.74	%		0.78	%		0.75	%		0.75	%		0.93	%
Total ALLL and discount ⁽²⁾		2.65	%		2.94	%		3.27	%		3.37	%		4.45	%

(1)

For the three months ended June 30, 2015 and March 31, 2015, the ratios included an unallocated allowance for loan and lease losses of $2.2 million and $364 thousand. Without the unallocated, the ratios are 1.17% and 1.29% for the three months ended June 30, 2015 and March 31, 2015, respectively.

(2)

The ratios were calculated by dividing a sum of ALLL and discounts by carrying value of loans.

- 7 -

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015			2014			2014
Composition of held for investment loans and leases
Commercial real estate	$	690,862		$	807,146		$	975,734		$	999,857		$	521,867
Multi-family		823,415			696,768			940,053			955,683			367,364
Construction		39,475			32,022			38,081			42,198			25,997
Commercial and industrial		822,690			771,477			489,229			490,900			366,416
SBA		52,985			56,887			48,254			36,155			25,729
Lease financing		162,504			131,189			102,012			85,749			72,027

Total commercial loans		2,591,931			2,495,489			2,593,363			2,610,542			1,379,400

Single family residential mortgage		2,013,450			1,840,924			1,169,134			1,171,662			1,191,021
Other consumer		124,696			136,682			171,218			166,918			141,647

Total consumer loans		2,138,146			1,977,606			1,340,352			1,338,580			1,332,668

Total gross loans and leases	$	4,730,077		$	4,473,095		$	3,933,715		$	3,949,122		$	2,712,068

Composition percentage of held for investment loans and leases
Commercial real estate		14.6	%		18.0	%		24.8	%		25.3	%		19.2	%
Multi-family		17.4	%		15.6	%		23.9	%		24.2	%		13.5	%
Construction		0.8	%		0.7	%		1.0	%		1.1	%		1.0	%
Commercial and industrial		17.4	%		17.2	%		12.4	%		12.4	%		13.5	%
SBA		1.1	%		1.3	%		1.2	%		0.9	%		0.9	%
Lease financing		3.4	%		2.9	%		2.6	%		2.2	%		2.7	%

Total commercial loans		54.7	%		55.7	%		65.9	%		66.1	%		50.8	%

Single family residential mortgage		42.7	%		41.2	%		29.7	%		29.7	%		44.0	%
Other consumer		2.6	%		3.1	%		4.4	%		4.2	%		5.2	%

Total consumer loans		45.3	%		44.3	%		34.1	%		33.9	%		49.2	%

Total gross loans and leases		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Composition of deposits
Noninterest-bearing checking	$	1,011,169		$	880,766		$	749,129		$	662,295		$	457,743
Interest-bearing checking		1,458,208			1,002,443			1,032,482			1,054,828			779,704
Money market		1,238,180			1,393,751			1,136,562			1,074,432			769,291
Savings		814,230			843,274			898,483			985,646			932,133
Certificates of deposit		900,203			984,776			1,045,336			894,630			692,839

Total deposits	$	5,421,990		$	5,105,010		$	4,861,992		$	4,671,831		$	3,631,710

Composition percentage of deposits
Noninterest-bearing checking		18.6	%		17.3	%		15.4	%		14.2	%		12.6	%
Interest-bearing checking		26.9	%		19.6	%		21.2	%		22.6	%		21.5	%
Money market		22.8	%		27.3	%		23.4	%		23.0	%		21.2	%
Savings		15.0	%		16.5	%		18.5	%		21.1	%		25.6	%
Certificates of deposit		16.7	%		19.3	%		21.5	%		19.1	%		19.1	%

Total deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

- 8 -

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	September 30, 2015								June 30, 2015								March 31, 2015
	Average					Yield			Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	1,966,373		$	18,123		3.66	%	$	1,959,738		$	18,984		3.89	%	$	1,868,085		$	17,477		3.79	%
Seasoned SFR mortgage loan pools		689,666			10,901		6.27	%		591,460			9,690		6.57	%		591,724			9,413		6.45	%
Commercial real estate, multi-family, and construction		1,568,975			17,643		4.46	%		1,848,780			21,552		4.68	%		1,956,830			22,508		4.66	%
Commercial and industrial, SBA, and lease financing		914,811			12,125		5.26	%		697,291			8,871		5.10	%		572,726			7,239		5.13	%
Other consumer		131,468			1,662		5.02	%		157,460			1,602		4.08	%		150,034			1,518		4.10	%

Gross loans and leases		5,271,293			60,454		4.55	%		5,254,729			60,699		4.63	%		5,139,399			58,155		4.59	%
Securities		828,326			5,054		2.42	%		402,366			2,119		2.11	%		354,475			1,927		2.20	%
Other interest-earning assets		350,243			1,007		1.14	%		310,105			2,026		2.62	%		219,892			698		1.29	%

Total interest-earning assets		6,449,862			66,515		4.09	%		5,967,200			64,844		4.36	%		5,713,766			60,780		4.31	%
Allowance for loan and lease losses		(34,810	)							(29,445	)							(29,623	)
BOLI and non-interest earning assets		266,538								315,595								247,283

Total assets	$	6,681,590							$	6,253,350							$	5,931,426

Interest-bearing liabilities
Savings	$	832,006		$	1,575		0.75	%	$	867,532		$	1,606		0.74	%	$	945,530		$	1,748		0.75	%
Interest-bearing checking		1,282,066			2,273		0.70	%		1,012,211			1,996		0.79	%		1,042,895			2,041		0.79	%
Money market		1,294,554			1,337		0.41	%		1,142,858			1,028		0.36	%		1,092,987			958		0.36	%
Certificates of deposit		905,704			1,210		0.53	%		1,055,939			1,535		0.58	%		1,004,261			1,614		0.65	%

Total interest-bearing deposits		4,314,330			6,395		0.59	%		4,078,540			6,165		0.61	%		4,085,673			6,361		0.63	%
FHLB advances		476,848			587		0.49	%		375,385			290		0.31	%		487,600			353		0.29	%
Long-term debt and other interest-bearing liabilities		269,111			3,983		5.87	%		260,075			4,285		6.61	%		96,379			2,069		8.71	%

Total interest-bearing liabilities		5,060,289			10,965		0.86	%		4,714,000			10,740		0.91	%		4,669,652			8,783		0.76	%
Noninterest-bearing deposits		916,670								859,420								682,492
Non-interest-bearing liabilities		58,918								49,383								61,947

Total liabilities		6,035,877								5,622,803								5,414,091
Total stockholders’ equity		645,713								630,547								517,335

Total liabilities and stockholders’ equity	$	6,681,590							$	6,253,350							$	5,931,426

Net interest income/spread				$	55,550		3.23	%				$	54,104		3.45	%				$	51,997		3.55	%

Net interest margin							3.42	%							3.64	%							3.69	%

Ratio of interest-earning assets to interest-bearing liabilities		127.46	%							126.58	%							122.36	%

Total deposits	$	5,231,000		$	6,395		0.49	%	$	4,937,960		$	6,165		0.50	%	$	4,768,165		$	6,361		0.54	%
Total funding ⁽¹⁾	$	5,976,959		$	10,965		0.73	%	$	5,573,420		$	10,740		0.77	%	$	5,352,144		$	8,783		0.67	%

(1)

Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.

- 9 -

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	December 31, 2014								September 30, 2014
	Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	1,778,112		$	16,741		3.74	%	$	1,757,890		$	16,979		3.83	%
Seasoned SFR mortgage loan pools		606,879			9,605		6.28	%		675,083			11,753		6.91	%
Commercial real estate, multi-family, and construction		1,486,406			17,993		4.80	%		827,934			9,592		4.60	%
Commercial and industrial, SBA, and lease financing		523,194			6,192		4.70	%		451,992			5,060		4.44	%
Other consumer		139,837			2,068		5.87	%		116,305			1,171		3.99	%

Gross loans and leases		4,534,428			52,599		4.60	%		3,829,204			44,555		4.62	%
Securities		310,454			1,781		2.28	%		257,067			1,460		2.25	%
Other interest-earning assets		189,091			700		1.47	%		142,284			634		1.77	%

Total interest-earning assets		5,033,973			55,080		4.34	%		4,228,555			46,649		4.38	%
Allowance for loan and lease losses		(26,105	)							(23,266	)
BOLI and non-interest earning assets		215,595								186,234

Total assets	$	5,223,463							$	4,391,523

Interest-bearing liabilities
Savings	$	960,253		$	1,963		0.81	%	$	953,925		$	2,215		0.92	%
Interest-bearing checking		937,623			2,078		0.88	%		745,635			2,037		1.08	%
Money market		964,414			841		0.35	%		681,576			673		0.39	%
Certificates of deposit		837,174			1,558		0.74	%		688,994			1,240		0.71	%

Total interest-bearing deposits		3,699,464			6,440		0.69	%		3,070,130			6,165		0.80	%
FHLB advances		307,859			210		0.27	%		276,739			118		0.17	%
Long-term debt and other interest-bearing liabilities		98,672			2,099		8.44	%		101,932			2,180		8.48	%

Total interest-bearing liabilities		4,105,995			8,749		0.85	%		3,448,801			8,463		0.97	%
Noninterest-bearing deposits		577,623								448,825
Non-interest-bearing liabilities		52,267								44,505

Total liabilities		4,735,885								3,942,131
Total stockholders’ equity		487,578								449,392

Total liabilities and stockholders’ equity	$	5,223,463							$	4,391,523

Net interest income/spread				$	46,331		3.49	%				$	38,186		3.41	%

Net interest margin							3.65	%							3.58	%

Ratio of interest-earning assets to interest-bearing liabilities		122.60	%							122.61	%

Total deposits	$	4,277,087		$	6,440		0.60	%	$	3,518,955		$	6,165		0.70	%
Total funding ⁽¹⁾	$	4,683,618		$	8,749		0.76	%	$	3,897,626		$	8,463		0.88	%

(1)

- 10 -

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid, Continued

(Dollars in thousands)

(Unaudited)


	Nine Months Ended
	September 30, 2015								September 30, 2014
	Average					Yield			Average					Yield
	Balance			Interest		/ Cost			Balance			Interest		/ Cost
Interest earning assets
Loans held for sale and SFR mortgage	$	1,931,759		$	54,584		3.78	%	$	1,583,494		$	45,527		3.84	%
Seasoned SFR mortgage loan pools		624,642			30,004		6.42	%		708,814			36,548		6.89	%
Commercial real estate, multi-family, and construction		1,790,108			61,703		4.61	%		749,350			26,501		4.73	%
Commercial and industrial, SBA, and lease financing		729,529			28,234		5.17	%		409,624			16,367		5.34	%
Other consumer		146,252			4,783		4.37	%		108,223			3,219		3.98	%

Gross loans and leases		5,222,290			179,308		4.59	%		3,559,505			128,162		4.81	%
Securities		530,124			9,100		2.30	%		196,446			3,377		2.30	%
Other interest-earning assets		293,891			3,731		1.70	%		131,608			1,520		1.54	%

Total interest-earning assets		6,046,305			192,139		4.25	%		3,887,559			133,059		4.58	%
Allowance for loan and lease losses		(31,312	)							(21,089	)
BOLI and non-interest earning assets		276,543								187,340

Total assets	$	6,291,536							$	4,053,810

Interest-bearing liabilities
Savings	$	881,273		$	4,929		0.75	%	$	970,348		$	7,156		0.99	%
Interest-bearing checking		1,113,267			6,309		0.76	%		666,926			5,552		1.11	%
Money market		1,177,538			3,324		0.38	%		600,818			1,948		0.43	%
Certificates of deposit		988,274			4,359		0.59	%		603,211			3,315		0.73	%

Total interest-bearing deposits		4,160,352			18,921		0.61	%		2,841,303			17,971		0.85	%
FHLB advances		446,571			1,230		0.37	%		254,322			317		0.17	%
Long-term debt and other interest-bearing liabilities		209,155			10,337		6.61	%		95,472			5,825		8.16	%

Total interest-bearing liabilities		4,816,078			30,488		0.85	%		3,191,097			24,113		1.01	%
Noninterest-bearing deposits		820,385								431,160
Non-interest-bearing liabilities		56,738								43,079

Total liabilities		5,693,201								3,665,336
Total stockholders’ equity		598,335								388,474

Total liabilities and stockholders’ equity	$	6,291,536							$	4,053,810

Net interest income/spread				$	161,651		3.40	%				$	108,946		3.57	%

Net interest margin							3.57	%							3.75	%

Ratio of interest-earning assets to interest-bearing liabilities		125.54	%							121.83	%

Total deposits	$	4,980,737		$	18,921		0.51	%	$	3,272,463		$	17,971		0.73	%
Total funding ⁽¹⁾	$	5,636,463		$	30,488		0.72	%	$	3,622,257		$	24,113		0.89	%

(1)

- 11 -

Banc of California, Inc.

Capital Ratios

(Unaudited)


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015 ⁽¹⁾			2014			2014
Capital Ratios
Banc of California, Inc.
Total risk-based capital ratio:		12.56	%		14.01	%		11.55	%		11.28	%		14.97	%
Tier 1 risk-based capital ratio:		12.06	%		13.19	%		10.83	%		10.54	%		14.03	%
Common equity tier 1 capital ratio ⁽¹⁾		8.19	%		8.96	%		9.01	%		N/A			N/A
Tier 1 leverage ratio:		8.97	%		9.55	%		7.99	%		8.57	%		9.28	%
Banc of California, NA
Total risk-based capital ratio:		14.93	%		14.86	%		13.58	%		12.04	%		15.75	%
Tier 1 risk-based capital ratio:		14.19	%		14.04	%		12.86	%		11.29	%		14.8	%
Common equity tier 1 capital ratio ⁽¹⁾		14.19	%		14.04	%		12.86	%		N/A			N/A
Tier 1 leverage ratio:		10.53	%		10.26	%		9.49	%		9.17	%		9.8	%

(1)

From the first quarter of 2015, BASEL III common equity tier 1 capital ratio is required.

- 12 -

Banc of California, Inc.

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Non-GAAP performance measure:

Tangible common equity to tangible assets ratio and return on average tangible common equity are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are used by management in the analysis of Banc of California, Inc.’s capital strength and performance of businesses. 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 tables reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated:


	September 30,			June 30,			March 31,			December 31,			September 30,
	2015			2015			2015			2014			2014
Tangible common equity to tangible assets ratio
Total assets	$	7,256,810		$	6,437,882		$	6,097,355		$	5,971,297		$	4,537,826
Less goodwill		(39,244	)		(31,591	)		(31,591	)		(31,591	)		(31,591	)
Less other intangible assets		(20,504	)		(21,905	)		(23,708	)		(25,252	)		(10,829	)

Tangible assets	$	7,197,062		$	6,384,386		$	6,042,056		$	5,914,454		$	4,495,406

Total stockholders’ equity	$	643,534		$	633,882		$	514,160		$	503,315		$	446,711
Less preferred stock		(190,750	)		(190,750	)		(79,877	)		(79,877	)		(79,877	)
Less goodwill		(39,244	)		(31,591	)		(31,591	)		(31,591	)		(31,591	)
Less other intangible assets		(20,504	)		(21,905	)		(23,708	)		(25,252	)		(10,829	)

Tangible common equity	$	393,036		$	389,636		$	378,984		$	366,595		$	324,414

Total stockholders’ equity to total assets		8.87	%		9.85	%		8.43	%		8.43	%		9.84	%
Tangible common equity to tangible assets		5.46	%		6.10	%		6.27	%		6.20	%		7.22	%

Common stock outstanding		37,751,445			35,647,476			35,063,199			34,190,740			28,023,701
Class B non-voting non-convertible common stock outstanding		—			—			11			609,195			602,783

Total common stock outstanding		37,751,445			35,647,476			35,063,210			34,799,935			28,626,484

Minimum number of shares issuable under purchase contracts ⁽¹⁾		828,246			2,883,892			2,984,367			3,215,538			4,198,425

Total common stock outstanding and shares issuable under purchase contracts		38,579,691			38,531,368			38,047,577			38,015,473			32,824,909


(1) Purchase contracts relating to the tangible equity units

Tangible common equity per common stock	$	10.41		$	10.93		$	10.81		$	10.53		$	11.33
Book value per common stock	$	11.99		$	12.43		$	12.39		$	12.17		$	12.81

Tangible equity per common stock and shares issuable under purchase contracts	$	10.19		$	10.11		$	9.96		$	9.64		$	9.88
Book value per common stock and shares issuable under purchase contracts	$	11.74		$	11.50		$	11.41		$	11.14		$	11.18

- 13 -

Banc of California, Inc.

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2015			2015			2015			2014			2014			2015			2014
Return on tangible common equity
Average total stockholders’ equity	$	645,713		$	630,547		$	517,335		$	487,578		$	449,392		$	598,335		$	388,474
Less average preferred stock		(190,750	)		(182,233	)		(79,877	)		(79,877	)		(79,877	)		(151,360	)		(79,877	)
Less average goodwill		(31,674	)		(31,591	)		(31,591	)		(33,129	)		(32,209	)		(31,619	)		(32,056	)
Less average other intangible assets		(21,320	)		(23,032	)		(24,720	)		(13,611	)		(10,634	)		(23,012	)		(11,108	)

Average tangible common equity	$	401,969		$	393,691		$	381,147		$	360,961		$	326,672		$	392,344		$	265,433

Net income	$	14,536		$	15,924		$	12,574		$	10,110		$	11,247		$	43,034		$	20,095
Less preferred stock dividends		(3,040	)		(2,843	)		(910	)		(910	)		(910	)		(6,793	)		(2,730	)
Add tax-effected amortization of intangible assets⁽¹⁾		911			1,004			1,004			849			579			2,919			1,802
Add tax-effected impairment on intangible assets⁽¹⁾		—			168			—			31			—			168			—

Net income available to common stockholders	$	12,407		$	14,253		$	12,668		$	10,080		$	10,916		$	39,328		$	19,167


(1) Utilized a 35% effective tax rate

Return on average equity		8.93	%		10.13	%		9.86	%		8.23	%		9.93	%		9.62	%		6.92	%
Return on average tangible common equity		12.25	%		14.52	%		13.48	%		11.08	%		13.26	%		13.40	%		9.65	%

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BANC OF CALIFORNIA, INC. Reports