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Section 1: 8-K (8-K)

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false0001169770Depositary Shares -- 7.375% non-cumulative perpetual preferred stock, series DDepositary Shares -- 7.00% non-cumulative perpetual preferred stock, series E 0001169770 2019-10-23 2019-10-23 0001169770 us-gaap:SeriesDPreferredStockMember 2019-10-23 2019-10-23 0001169770 us-gaap:SeriesEPreferredStockMember 2019-10-23 2019-10-23 0001169770 us-gaap:CommonStockMember 2019-10-23 2019-10-23



 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2019
 

BANC OF CALIFORNIA, INC.
(Exact name of registrant as specified in its charter)
 

 
 
 
 
Maryland
001-35522
04-3639825
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
 
 
 
 
 
3 MacArthur Place,
Santa Ana,
California
92707
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (855361-2262
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  

    




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.01 per share
 
BANC
 
New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.375% Non-Cumulative Perpetual Preferred Stock, Series D
 
BANC PRD
 
New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E
 
BANC PRE
 
New York Stock Exchange




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Item 2.02 Results of Operations and Financial Condition.
On October 23, 2019, Banc of California, Inc. (the “Company”) issued a press release announcing 2019 third quarter financial results. The Company will host a conference call to discuss these results at 10:00 A.M. Pacific Time on Wednesday, October 23, 2019. Interested parties may attend the conference call by dialing 888-317-6003, and referencing event code 1817922. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor, in addition to the slide presentation for investor review prior to the call.

Copies of the press release and presentation materials are attached to this report as Exhibits 99.1 and 99.2 and are incorporated by reference herein.

Forward-Looking Statements
This Current Report on Form 8-K 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.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.
99.1Banc of California, Inc. Press Release dated October 23, 2019.

99.2Banc of California, Inc. Earnings Conference Call Presentation Materials dated October 23, 2019.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

BANC OF CALIFORNIA, INC.

October 23, 2019
/s/ John A. Bogler
 
John A. Bogler
 
Executive Vice President and Chief Financial Officer

    

 


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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
EX 99.1

400563077_logoa04.jpg

Banc of California Reports Third Quarter 2019 Earnings

SANTA ANA, Calif., (October 23, 2019) — Banc of California, Inc. (NYSE: BANC) today reported a net loss for the third quarter of $22.7 million, resulting in a diluted loss per common share of $0.45.
Highlights for the third quarter (as compared to second quarter 2019) included:
Noninterest-bearing deposits increased $114 million
Cost of deposits decreased by 14 basis points to 1.48%
Noninterest expense was $43.3 million
Executed on the sale of $371 million of low-yielding and long duration mortgage-backed securities, furthering the ability to remix the investment portfolio
Completed tender offer for $46 million of preferred stock, inclusive of premium and accrued dividends
The total risk–based capital ratio was 14.31% and the tier 1 leverage ratio was 9.84% at the end of the quarter
The net loss available to common stockholders for this quarter is largely the result of a $35 million charge-off, or $0.60 per diluted common share, related to a loan originated in November 2017 to a borrower that has been the purported subject of a fraudulent scheme, as previously reported by the Company on Form 8-K.

“The third quarter results reflect the continued progress and execution on our strategy to improve the foundation and earnings power of the Company for the long term, lowering deposit costs, reducing our expenses and eliminating non–core assets,” said Jared Wolff, President and Chief Executive Officer of Banc of California.  “The deposit initiative we began in May has brought in over $100 million of low cost deposits.  We are seeing expenses stabilize at a significantly reduced level, and have made considerable progress in right sizing our balance sheet.”
 
Mr. Wolff continued, “During the quarter, we also executed on specific initiatives to simplify and optimize our balance sheet and create flexibility. As a result of these efforts, we are well positioned to consider additional capital management strategies in the coming quarters.  Despite the significant loss we reported during the quarter from the borrower fraud that resulted in a charge–off of the loan originated in 2017, we continue to maintain strict credit quality standards which are in line with our relationship-lending focus. Overall, we remain well positioned on both sides of the balance sheet in the current environment, with opportunity to further reduce our cost of deposits and to remix our loan portfolio to protect yield as we build out our focused business banking and bridge lending platforms. I’m pleased to see the progress the bank made during this past quarter and look forward to continued execution as we close out 2019.”
Speaking specifically about balance sheet activity for the quarter, John Bogler, Chief Financial Officer of Banc of California said, “We continue to make great strides in building a core balance sheet that will allow us to be high performing. During the quarter, we sold $574 million of low coupon multifamily loans, repaid high cost brokered deposits, tendered for $46 million of high cost preferred equity and we took the opportunity to sell longer duration, low yielding mortgage–backed securities at the end of the quarter. This will allow us to start the process of remaking the securities portfolio. All of these actions will begin to translate into a higher performing balance sheet as we head into next year.”




EX 99.1

Business Results - Income Statement Highlights
 
Three Months Ended
 
Nine Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
September 30,
2019
 
September 30,
2018
Total interest and dividend income
$
92,657

 
$
104,040

 
$
110,712

 
$
111,130

 
$
107,774

 
$
307,409

 
$
311,666

Total interest expense
33,742

 
39,260

 
42,904

 
40,448

 
36,582

 
115,906

 
96,272

Net interest income
58,915

 
64,780

 
67,808

 
70,682

 
71,192

 
191,503

 
215,394

Provision for (reversal of) loan and lease losses
38,540

 
(1,987
)
 
2,512

 
6,653

 
1,410

 
39,065

 
23,562

Net interest income after provision for loan and lease losses
20,375

 
66,767

 
65,296

 
64,029

 
69,782

 
152,438

 
191,832

Total noninterest income (loss)
3,181

 
(2,290
)
 
6,295

 
2,448

 
4,824

 
7,186

 
21,467

Total noninterest expense
43,307

 
43,587

 
61,835

 
49,569

 
60,877

 
148,729

 
183,216

Income tax (benefit) expense
(5,619
)
 
4,308

 
2,719

 
6,117

 
3,301

 
1,408

 
(1,273
)
(Loss) income from continuing operations
(14,132
)
 
16,582

 
7,037

 
10,791

 
10,428

 
9,487

 
31,356

Income from discontinued operations

 

 

 
247

 
668

 

 
3,078

Net (loss) income
$
(14,132
)
 
$
16,582

 
$
7,037

 
$
11,038

 
$
11,096

 
$
9,487

 
$
34,434

Net interest income
Q3 2019 vs Q2 2019.
Net interest income for the third quarter decreased to $58.9 million as we sold non-core assets and repaid high cost funding liabilities during the quarter. For the third quarter, average interest-earning assets declined from the prior quarter by $926 million to $8.2 billion, while the net interest margin remained flat at 2.86% between quarters. We continue to execute on our strategy of disposing of lower yielding, non-core assets and rebalancing our portfolio.
Our average yield on interest-earning assets declined to 4.50% for the third quarter as compared to 4.59% for the second quarter of 2019, primarily attributable to a decrease in our average yield on loans and securities. Our average yield on loans came in at 4.75% for the third quarter which decreased by 5 basis points from the prior quarter, primarily attributable to variable rate loans repricing and lower average balance of higher yielding commercial and industrial loans, partially offset by the settlement of the Freddie Mac multifamily securitization which consisted of lower yielding loans. Our average yield on securities decreased 23 basis points primarily as a result of the quarterly interest rate resets on our collateralized loan obligations (“CLO”) and the sales of CLOs that occurred during the second quarter of 2019. We sold a significant amount of CLOs during the second quarter, with the full impact of the second quarter sales reflected in the third quarter.
Our average cost of interest-bearing liabilities decreased to 2.03% for the third quarter from 2.09% for the second quarter, primarily resulting from a 14 basis point decrease in our average cost of total deposits from the prior quarter to 1.48%. Non-interest bearing deposits increased by $114 million in the third quarter. The decrease in our cost of deposits from the prior quarter primarily resulted from the continued execution of our deposit strategy to focus on relationship-based clients and de-emphasize high-rate transactional customers and brokered certificates of deposit.
YTD 2019 vs YTD 2018.
Net interest income for the nine months ended September 30, 2019 decreased to $191.5 million as compared to $215.4 million for the same period in 2018 primarily as a result of the sale of CLOs in 2019 and the overall higher cost of funding, both mostly offset by higher yields on assets driven by the higher interest rate environment and loan growth in almost all loan categories. For the nine months ended September 30, 2019, average interest-earning assets declined $699 million from the prior period to $9.01 billion, while the net interest margin decreased to 2.84% from 2.97% for the comparable 2018 period.
Our average yield on interest-earning assets increased 26 basis points to 4.56% for the nine months ended September 30, 2019 as compared to 4.30% for the comparable 2018 period, due to increased yields in the loan and securities portfolios as well as an increased mix of loans versus securities. Our average yield on loans came in at 4.77% for the nine months ended September 30, 2019, compared to 4.61% during the comparable 2018 period, primarily attributable to overall increases in market rates between periods. Our average yield on securities increased 22 basis points primarily as a result of an interest rate reset on our CLOs, partially offset by a decrease in our average balance attributable to the sale and calls of $682.6 million of our higher yielding CLOs between periods.



EX 99.1

Provision for loan losses
Q3 2019 vs Q2 2019.
During the third quarter, we recognized a loan loss provision of $38.5 million. As previously reported, the loan loss provision was primarily attributable to a $35 million charge-off of a line of credit originated in November 2017 to a borrower purportedly the subject of a fraudulent scheme. In addition, the charge-off increased the loss factor used in our allowance for loan loss methodology for commercial and industrial loans, resulting in an additional loan loss provision of $3.0 million. We are actively evaluating all available sources of recovery, although no assurance can be given that we will be successful in that regard.
During the third quarter of 2019, the Company undertook an extensive collateral review of all lending relationships $5 million and above not secured by real estate, consisting of 53 loans representing $536 million in commitments. The collateral review focused on security and collateral documentation and confirmation of the bank's collateral interest. The review was performed within the bank's Internal Audit division and the work was validated by an independent third party. While the review and outside validation is not yet complete, to date, we have not identified any other instances of apparent fraud for the credits reviewed or concerns over the existence of collateral held by the bank or on our behalf at third parties; however, there are no assurances that our internal review and third party validation will be sufficient to identify all such issues.
YTD 2019 vs YTD 2018.
During the nine months ended September 30, 2019 we recognized a loan loss provision of $39.1 million, primarily attributable to the aforementioned $35 million charge-off of a line of credit. For the comparable prior year period, $23.6 million of loan loss provisions were recorded, inclusive of a $14 million charge-off related to borrower fraud, as well as $594 million of growth in the loan portfolio.
Noninterest income
Q3 2019 vs Q2 2019.
Noninterest income for the third quarter was $3.2 million, which represented an increase of $5.5 million, or 239% from the prior quarter. The increase was primarily due to (1) $9.6 million primarily resulting from the net impact of the hedge associated with the Freddie Mac multifamily securitization, (2) a $5.1 million realized net loss on the sale of mortgage backed securities (“MBS”), (3) a $1.5 million increase in gain on sale of loans and (4) a $731 thousand other-than-temporary impairment on the remaining MBS portfolio.
In August 2019, the Company completed the previously announced Freddie Mac securitization of $574 million multifamily loans that were held for sale as of June 30, 2019 and sold the associated mortgage servicing rights. The Company realized a gain in fair value of the loans sold into the securitization of $9.0 million, offset by a $9.6 million loss from interest rate swap agreements entered into in order to offset variability in the fair value of the securitized loans as a result of changes in market interest rates. The $9.0 million gain in fair value on the securitization was recognized during the three months ended September 30, 2019 when the securitization settled, while the corresponding loss, as previously disclosed, was recognized during the three months ended June 30, 2019 because the interest rate swap agreements were entered into during May 2019 in preparation for the securitization.
During the third quarter, the Company partially hedged the fair value of the MBS portfolio using interest rate swaps. At the end of the quarter, the Company took advantage of the decline in long-term interest rates and sold the majority of the MBS portfolio and unwound the majority of the interest rate swaps. The remaining balance of the MBS portfolio and the related interest rate swap is expected to be sold and unwound early in the fourth quarter 2019. The unsold portion of the MBS portfolio has been deemed other–than–temporarily impaired and, along with the fair value adjustment on the swap, has been recorded in noninterest income with a net impact of $731 thousand.
YTD 2019 vs YTD 2018.
Noninterest income for the nine months ended September 30, 2019 was $7.2 million, which represented a decrease of $14.3 million, or 66.5% from the comparable period in the prior year. The decrease was primarily attributable to a $10.4 million decrease in net gain on sale of investment securities as a result of decreased favorable sale activity in 2019 and a realized loss of $5.1 million on the sale of our MBS portfolio in the third quarter of 2019 and a decrease of $3.3 million in loan servicing income as a result of the sale of mortgage servicing rights in 2018.



EX 99.1

Noninterest expense
Q3 2019 vs Q2 2019.
Noninterest expense for the third quarter was $43.3 million, which was comparable to the prior quarter. Noninterest expense included: (1) a $4.4 million increase in our professional fees, primarily attributable to $6.2 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses in the second quarter as compared to $2.6 million of insurance recoveries net of expenses in the third quarter, (2) a $1.6 million decrease in our compensation expense resulting from lower headcount and lower consulting fees, (3) a $897 thousand decrease in regulatory assessments, and (4) a $585 thousand increase in gain on investments in alternative energy partnerships.
Noninterest expense for the second quarter of 2019 was $43.6 million, which included non-core adjustments of (1) $6.2 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses, (2) $797 thousand of project charge-offs related to data processing, and (3) a $158 thousand reversal of restructuring expenses recognized in the first quarter of 2019.
YTD 2019 vs YTD 2018.
Noninterest expense for the nine months ended September 30, 2019 was $148.7 million, which represented a decrease of $34.5 million, or 18.8% from the comparable period in the prior year. The decrease in noninterest expense consisted of: (1) a decrease of $17.8 million in professional fees, primarily attributable to $6.1 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses, (2) a $3.5 million decrease in our compensation expense resulting from lower headcount and lower consulting fees, (3) a $3.1 million decrease in advertising costs, and (4) a $3.6 million decrease in loss on investments in alternative energy partnerships.
Income taxes
Q3 2019 vs Q2 2019.
Income tax benefit totaled $5.6 million for the quarter, representing a decrease of 230% from the prior quarter, and an effective tax rate of 28.45%. During the third quarter of 2019, we had a pre-tax net loss of $19.8 million, resulting in approximately 13% reduction in the projected annual effective tax rate. For the full year, we expect our tax rate to normalize closer to 11%. The lower effective tax rate of 11% is primarily driven by the loss the Company incurred and we expect the rate to normalize closer to 20% in 2020.
YTD 2019 vs YTD 2018.
Income tax expense totaled $1.4 million for the nine months ended September 30, 2019, representing an increase of $1.5 million from the same period in 2018, and an effective tax rate of 11.91%. The increase in income tax expense and effective tax rate for the nine months ended September 30, 2019, primarily relates to the significant reduction in tax credits received by the Company on investments in alternative energy partnerships.

Balance Sheet
The following table shows selected balance sheet line items as of September 30, 2019 and for the previous four quarters. As indicated in the table below, at September 30, 2019, total assets were approximately $8.6 billion, which represented a linked quarter decrease of $735 million, consistent with our strategic shift towards reducing our balance sheet and focusing on relationship lending.



EX 99.1

 
As of and for the Three Months Ended
 
Amount Change
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
Q3-19 vs. Q2-19
 
Q3-19 vs. Q3-18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
8,625,337

 
$
9,359,931

 
$
9,886,525

 
$
10,630,067

 
$
10,260,822

 
$
(734,594
)
 
$
(1,635,485
)
Securities available-for-sale
$
775,662

 
$
1,167,687

 
$
1,471,303

 
$
1,992,500

 
$
2,059,832

 
$
(392,025
)
 
$
(1,284,170
)
Loans held-for-investment
$
6,383,259

 
$
6,719,570

 
$
7,557,200

 
$
7,700,873

 
$
7,253,293

 
$
(336,311
)
 
$
(870,034
)
Loans held-for-sale
$
23,936

 
$
597,720

 
$
25,191

 
$
8,116

 
$
9,382

 
$
(573,784
)
 
$
14,554

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
$
2,602,011

 
$
2,510,233

 
$
2,690,738

 
$
2,579,770

 
$
2,775,347

 
$
91,778

 
$
(173,336
)
Other core deposits
3,074,936

 
3,301,080

 
3,575,140

 
3,793,605

 
3,638,624

 
(226,144
)
 
(563,688
)
Brokered deposits
93,111

 
480,977

 
1,459,054

 
1,543,269

 
987,771

 
(387,866
)
 
(894,660
)
Total Deposits
$
5,770,058

 
$
6,292,290

 
$
7,724,932

 
$
7,916,644

 
$
7,401,742

 
$
(522,232
)
 
$
(1,631,684
)
As percentage of total deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand deposits
45.10
%
 
39.89
%
 
34.83
%
 
32.59
%
 
37.50
%
 
5.21
 %
 
7.60
 %
Other core deposits
53.29
%
 
52.46
%
 
46.28
%
 
47.92
%
 
49.16
%
 
0.83
 %
 
4.13
 %
Brokered deposits
1.61
%
 
7.64
%
 
18.89
%
 
19.49
%
 
13.35
%
 
(6.03
)%
 
(11.74
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Loan Yield
4.75
%
 
4.80
%
 
4.76
%
 
4.74
%
 
4.70
%
 
(0.05
)%
 
0.05
 %
Average Cost of Interest-Bearing Deposits
1.78
%
 
1.89
%
 
1.92
%
 
1.77
%
 
1.58
%
 
(0.11
)%
 
0.20
 %
Investments
Securities available-for-sale declined to $775.7 million, a decrease of 33.6% from the previous quarter, primarily due to the sale of $371 million of our MBS portfolio (resulting in a $5.1 million realized loss). In addition, $731 thousand of other-than-temporary impairment was recognized on the remaining $40 million MBS portfolio. As of September 30, 2019, our securities balance included $735 million of CLOs, $40 million of agency residential MBS and $277 thousand of non-agency residential MBS. The remaining balance of MBS are expected to be sold in the fourth quarter with all of the MBS sale proceeds expected to be reinvested into a mix of security classes, resulting in an overall shorter duration for the portfolio.



EX 99.1

Loans
The following table sets forth the composition, by loan category, of our loan portfolio at September 30, 2019 and the previous four quarters.
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
Composition of held-for-investment loans
 
 
 
 
 
 
 
 
 
Commercial real estate
$
891,029

 
$
856,497

 
$
865,521

 
$
867,013

 
$
823,193

Multifamily
1,563,757

 
1,598,978

 
2,332,527

 
2,241,246

 
2,112,190

Construction
228,561

 
209,029

 
211,549

 
203,976

 
200,294

Commercial and industrial
1,789,478

 
1,951,707

 
1,907,102

 
1,944,142

 
1,673,055

SBA
75,359

 
80,929

 
74,998

 
68,741

 
71,494

Total commercial loans
4,548,184

 
4,697,140

 
5,391,697

 
5,325,118

 
4,880,226

Single family residential mortgage
1,775,953

 
1,961,065

 
2,102,694

 
2,305,490

 
2,300,069

Other consumer
59,122

 
61,365

 
62,809

 
70,265

 
72,998

Total consumer loans
1,835,075

 
2,022,430

 
2,165,503

 
2,375,755

 
2,373,067

Total gross loans
$
6,383,259

 
$
6,719,570

 
$
7,557,200

 
$
7,700,873

 
$
7,253,293

Composition percentage of held-for-investment loans
 
 
 
 
 
 
 
 
 
Commercial real estate
14.0
%
 
12.7
%
 
11.5
%
 
11.3
%
 
11.3
%
Multifamily
24.5
%
 
23.8
%
 
30.9
%
 
29.2
%
 
29.1
%
Construction
3.6
%
 
3.1
%
 
2.8
%
 
2.6
%
 
2.8
%
Commercial and industrial
28.0
%
 
29.1
%
 
25.2
%
 
25.2
%
 
23.1
%
SBA
1.2
%
 
1.2
%
 
1.0
%
 
0.9
%
 
1.0
%
Total commercial loans
71.3
%
 
69.9
%
 
71.4
%
 
69.2
%
 
67.3
%
Single family residential mortgage
27.8
%
 
29.2
%
 
27.8
%
 
29.9
%
 
31.7
%
Other consumer
0.9
%
 
0.9
%
 
0.8
%
 
0.9
%
 
1.0
%
Total consumer loans
28.7
%
 
30.1
%
 
28.6
%
 
30.8
%
 
32.7
%
Total gross loans
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Held-for-investment loans decreased to $6.4 billion driven mostly by a reduction of $220 million related to the payoff of single family residential mortgage loans and multifamily loans while simultaneously reducing new commitments and a $162 million decrease in commercial and industrial loans due primarily to credit-related exits and charge-offs and a decrease in the warehouse lending balance, partially offset by a net increase of $54 million in commercial real estate and construction loans.
Single family residential mortgage and multifamily loans now comprise 52.3% of the total held-for-investment loan portfolio as compared to 60.8% one year ago. The loan portfolio concentration of single family residential mortgage and multifamily is expected to decline over the coming quarters as part of our strategy to deemphasize transaction lending and focus on relationship based clients. Commercial real estate loans comprised 14.0% of the loan portfolio and commercial and industrial loans constituted 28.0%, with yields of 4.87% and 5.38%, respectively.
Held-for-sale loans decreased by $574 million primarily resulting from the completion of the Freddie Mac multifamily securitization during the third quarter of 2019. The loans sold had a weighted average coupon of 3.79% and the proceeds were used to repay overnight Federal Home Loan Bank (“FHLB”) advances, which at the time had an advance rate of 2.53%.



EX 99.1

During the third quarter of 2019, our commercial and industrial loan new commitments were $239 million, which represented an increase of 28.5% over the prior quarter. The following table sets forth our new commitments by loan category (in millions), and the related weighted average coupon, during the third quarter of 2019.
 
Three Months Ended
 
September 30, 2019
 
June 30, 2019
 
New Loan Commitments
 
Weighted Average Coupon
 
New Loan Commitments
 
Weighted Average Coupon
Commercial real estate
$
64.0

 
4.61
%
 
$
72.6

 
4.79
%
Multifamily
86.8

 
4.30
%
 
172.3

 
4.62
%
Construction
29.0

 
6.54
%
 
21.0

 
6.49
%
Commercial and industrial
239.0

 
5.36
%
 
185.7

 
6.07
%
SBA
3.4

 
4.74
%
 
18.6

 
5.13
%
Single family residential mortgage
2.4

 
4.30
%
 
128.4

 
4.95
%
Other consumer
1.7

 
5.99
%
 
0.4

 
6.65
%
Total
$
426.3

 
5.10
%
 
$
599.0

 
5.25
%
Deposits
The following table sets forth the composition of our deposits at September 30, 2019 and the previous four quarters.
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
Composition of deposits
 
 
 
 
 
 
 
 
 
Noninterest-bearing checking
$
1,107,442

 
$
993,745

 
$
1,120,700

 
$
1,023,360

 
$
1,061,557

Interest-bearing checking
1,503,208

 
1,577,901

 
1,573,499

 
1,556,410

 
1,713,790

Money market
695,530

 
800,898

 
899,330

 
873,153

 
856,886

Savings
1,042,162

 
1,061,115

 
1,151,442

 
1,265,847

 
1,269,489

Non-brokered certificates of deposit
1,367,284

 
1,479,137

 
1,684,895

 
1,654,605

 
1,512,249

Brokered certificates of deposit
54,432

 
379,494

 
1,295,066

 
1,543,269

 
987,771

Total deposits
$
5,770,058

 
$
6,292,290

 
$
7,724,932

 
$
7,916,644

 
$
7,401,742

Composition percentage of deposits
 
 
 
 
 
 
 
 
 
Noninterest-bearing checking
19.2
%
 
15.8
%
 
14.5
%
 
12.9
%
 
14.3
%
Interest-bearing checking
26.1
%
 
25.1
%
 
20.4
%
 
19.7
%
 
23.2
%
Money market
12.0
%
 
12.7
%
 
11.6
%
 
11.0
%
 
11.6
%
Savings
18.1
%
 
16.9
%
 
14.9
%
 
16.0
%
 
17.2
%
Non-brokered certificates of deposit
23.7
%
 
23.5
%
 
21.8
%
 
20.9
%
 
20.4
%
Brokered certificates of deposit
0.9
%
 
6.0
%
 
16.8
%
 
19.5
%
 
13.3
%
Total deposits
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Deposits finished the third quarter at $5.8 billion, with noninterest-bearing deposits increasing $114 million from the prior quarter. For the third quarter, the average balance of noninterest-bearing deposits was $1.048 billion, up from the second quarter average balance of $1.034 billion and noninterest-bearing deposits now comprise 19.2% of total deposits, up from 14.3% from the comparable period in the prior year. Total deposits decreased by $522 million, of which $325 million was as a result of maturities on our brokered certificates of deposit and no new brokered certificates of deposit were acquired during the quarter. Non–brokered certificates of deposit declined by $112 million from the prior quarter and are expected to continue to decline as offered rates on maturing certificates are reset lower. Money market balances decreased by $105 million versus the prior quarter, while savings account balances decreased by $19 million during this same time period. We continue to price down higher costing savings and money market accounts as we focus on building relationship based deposits.
Debt
Advances from the FHLB decreased $175 million, or 10%, to $1.65 billion as of September 30, 2019, as a result of the paydown of overnight advances with the FHLB using the proceeds from the sale of loans sold into the Freddie Mac multifamily securitization. At



EX 99.1

the end of the quarter, the maturity dates of FHLB advances consisted of $670 million of overnight, $300 million maturing in 3 months or less, and $680 million maturing beyond 3 months. As of the end of the quarter, the overnight advance interest rate was 2.08%.
Equity
At September 30, 2019, total stockholders’ equity decreased by $62.6 million to $901.0 million on a linked-quarter basis, while tangible common equity decreased by $20.8 million to $669.4 million. The decrease in total stockholders’ equity partially related to our net loss of $14.1 million, partially offset by the improvement within our accumulated other comprehensive income as a result of other comprehensive income of $3.1 million. During the quarter, the Company completed a tender offer for depositary shares representing shares of its Series D and Series E preferred stock. The total consideration for each Series E Depositary Share tendered and accepted for purchase pursuant to the offer equaled $27.13. The total consideration for each Series D Depositary Share tendered and accepted for purchase pursuant to the offer equaled $26.39. The aggregate total consideration payable by the Company for the preferred stock accepted for purchase was $46.0 million inclusive of premium to par and accrued dividends ($19.4 million of series D and $26.6 million series E depository shares). The tender resulted in a $5.1 million reduction to net income available to common shareholders.
Capital ratios remain strong with total risk based capital at 14.31% and a tier 1 leverage ratio of 9.84%. The following table sets forth our regulatory capital ratios at September 30, 2019 and the previous four quarters.
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
Capital Ratios
 
 
 
 
 
 
 
 
 
Banc of California, Inc.
 
 
 
 
 
 
 
 
 
Total risk-based capital ratio
14.31
%
 
15.00
%
 
14.01
%
 
13.71
%
 
14.05
%
Tier 1 risk-based capital ratio
13.26
%
 
14.03
%
 
13.03
%
 
12.77
%
 
13.15
%
Common equity tier 1 capital ratio
10.30
%
 
10.50
%
 
9.72
%
 
9.53
%
 
9.80
%
Tier 1 leverage ratio
9.84
%
 
9.62
%
 
8.87
%
 
8.95
%
 
8.99
%
Banc of California, NA
 
 
 
 
 
 
 
 
 
Total risk-based capital ratio
15.59
%
 
16.70
%
 
15.79
%
 
15.71
%
 
15.94
%
Tier 1 risk-based capital ratio
14.53
%
 
15.73
%
 
14.81
%
 
14.77
%
 
15.04
%
Common equity tier 1 capital ratio
14.53
%
 
15.73
%
 
14.81
%
 
14.77
%
 
15.04
%
Tier 1 leverage ratio
10.75
%
 
10.80
%
 
10.07
%
 
10.36
%
 
10.29
%



EX 99.1

Credit Quality
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
Asset quality information and ratios
($ in thousands)
Delinquent loans held-for-investment
 
 
 
 
 
 
 
 
 
30 to 89 days delinquent
$
39,122

 
$
34,938

 
$
44,840

 
$
26,684

 
$
20,265

90+ days delinquent
17,220

 
17,272

 
14,623

 
13,846

 
15,269

Total delinquent loans
$
56,342

 
$
52,210

 
$
59,463

 
$
40,530

 
$
35,534

Total delinquent loans to total loans
0.88
%
 
0.78
%
 
0.79
%
 
0.53
%
 
0.49
%
Non-performing assets, excluding loans held-for-sale
 
 
 
 
 
 
 
 
 
Non-performing loans
$
45,169

 
$
28,499

 
$
27,739

 
$
21,585

 
$
25,523

90+ days delinquent and still accruing loans

 
275

 
731

 
470

 

Other real estate owned

 
276

 
316

 
672

 
434

Non-performing assets
$
45,169

 
$
29,050

 
$
28,786

 
$
22,727

 
$
25,957

ALLL to non-performing loans
139.31
%
 
206.86
%
 
224.40
%
 
281.99
%
 
226.39
%
Non-performing loans to total loans held-for-investment
0.71
%
 
0.43
%
 
0.38
%
 
0.29
%
 
0.35
%
Non-performing assets to total assets
0.52
%
 
0.31
%
 
0.29
%
 
0.21
%
 
0.25
%
Troubled debt restructurings (TDRs)
 
 
 
 
 
 
 
 
 
Performing TDRs
$
6,800

 
$
20,245

 
$
5,574

 
$
5,745

 
$
5,580

Non-performing TDRs
14,605

 
2,428

 
1,943

 
2,276

 
2,684

Total TDRs
$
21,405

 
$
22,673

 
$
7,517

 
$
8,021

 
$
8,264

Loan delinquencies increased by 7.9% to $56.3 million at September 30, 2019, primarily related to the increase in our 30 to 89 days delinquent loans. The increase in our total delinquent loans resulted from $21.4 million of additions, partially offset by $11.4 million returning to current status and $5.8 million of principal payments or payoffs. Loans 90+ days delinquent includes single family mortgage residential loans, which accounts for 66% of the balance. Loan delinquencies as a percentage of total loans held-for-investment increased to 88 basis points for the quarter, almost exclusively due to single family residential mortgage loans, of which $8.7 million have cured since quarter end, and the reduction in our balance sheet over the same period.
Non-performing loans and non performing assets increased to $45.2 million as of September 30, 2019, primarily as a result of a $14.5 million, non-agented Shared National Credit moving from performing to non-performing during the quarter. The loan continues in a current payment status and subsequent payments will be recognized as a reduction of the loan balance. The Company currently has five Shared National Credits totaling $47.4 million. The increase in non-performing TDRs during the third quarter was primarily due to one loan relationship moving from performing to non-performing.



EX 99.1

Allowance for Loan Losses
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
($ in thousands)
Allowance for loan losses (ALLL)
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
59,523

 
$
63,885

 
$
62,192

 
$
57,782

 
$
56,678

Loans and leases charged off
$
(35,546
)
 
$
(2,451
)
 
$
(1,063
)
 
$
(2,522
)
 
$
(388
)
Recoveries
$
410

 
$
76

 
$
244

 
$
279

 
$
82

Net charge-offs
$
(35,136
)
 
$
(2,375
)
 
$
(819
)
 
$
(2,243
)
 
$
(306
)
Provision for (reversal of) loan losses
$
38,540

 
$
(1,987
)
 
$
2,512

 
$
6,653

 
$
1,410

Balance at end of period
$
62,927

 
$
59,523

 
$
63,885

 
$
62,192

 
$
57,782

Annualized net loan charge-offs to average total loans held-for-investment
2.19
%
 
0.13
%
 
0.04
%
 
0.12
%
 
0.02
%
Reserve for loss on repurchased loans
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
2,478

 
$
2,486

 
$
2,506

 
$
2,575

 
$
3,149

Additions
4,415

 

 

 

 

Reversal of provision for loan repurchases
(123
)
 
(8
)
 
(20
)
 
(69
)
 
(342
)
Utilization of reserve for loan repurchases
(209
)
 

 

 

 
(232
)
Balance at end of period
$
6,561

 
$
2,478

 
$
2,486

 
$
2,506

 
$
2,575

Charge-offs for the third quarter totaled $35.5 million, which primarily consisted of the previously reported $35.1 million charge-off of a line of credit originated by the Bank in November 2017 to a borrower that was purported to be the subject of a fraudulent scheme, as previously reported by the Company on Form 8-K. The provision for loan losses increased due to net charge-offs of $35.1 million, an increase of $3.0 million due to an increase in loss factors associated with the large charge-off and increases in other qualitative provisions resulting in an allowance for loan losses of $62.9 million, or 0.99% of total loans held-for-investment. The reserve for loss on repurchased loans increased by $4.4 million due to the contractual agreement associated with the multifamily loan securitization completed in the third quarter of 2019. As the securitization balance subsequently decreases, the reserve for loss on repurchased loans is also expected to decrease.
Securities Litigation Update
During the third quarter of 2019, we entered into a tentative settlement agreement, subject to court approval, for $19.75 million in connection with the Securities Litigation matter. As a result of the agreement, there is no expected impact to earnings as the settlement will be paid directly by the Company's insurance carriers.
The Company will host a conference call to discuss its third quarter 2019 financial results at 10:00 a.m. Pacific Time (PT) on Wednesday, October 23, 2019. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1817922. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call.

About Banc of California, Inc.
Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $8.6 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 43 offices including 32 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.





EX 99.1

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:
Banc of California, Inc.
Jared M. Wolff, (949) 385-8700
John A. Bogler, (855) 361-2262



EX 99.1

Banc of California, Inc.
Consolidated Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
526,874

 
$
313,850

 
$
304,705

 
$
391,592

 
$
372,221

Securities available-for-sale
775,662

 
1,167,687

 
1,471,303

 
1,992,500

 
2,059,832

Loans held-for-sale
23,936

 
597,720

 
25,191

 
8,116

 
9,382

Loans held-for-investment
6,383,259

 
6,719,570

 
7,557,200

 
7,700,873

 
7,253,293

Allowance for loan losses
(62,927
)
 
(59,523
)
 
(63,885
)
 
(62,192
)
 
(57,782
)
Federal Home Loan Bank and other bank stock
71,679

 
76,373

 
55,794

 
68,094

 
71,308

Servicing rights, net
2,407

 
2,715

 
3,053

 
3,428

 
3,770

Other real estate owned, net

 
276

 
316

 
672

 
434

Premises and equipment, net
128,979

 
129,227

 
130,417

 
129,394

 
133,129

Investments in alternative energy partnerships, net
27,039

 
26,633

 
26,578

 
28,988

 
41,781

Goodwill
37,144

 
37,144

 
37,144

 
37,144

 
37,144

Other intangible assets, net
4,605

 
5,105

 
5,726

 
6,346

 
6,990

Deferred income tax, net
45,950

 
42,798

 
45,111

 
49,404

 
47,865

Income tax receivable
4,459

 
2,547

 
4,787

 
2,695

 
1,764

Bank owned life insurance investment
108,720

 
108,132

 
107,552

 
107,027

 
106,468

Right of use assets
23,907

 
24,118

 
24,519

 

 

Due from unsettled securities sales
334,769

 

 

 

 

Other assets
188,875

 
165,559

 
151,014

 
146,496

 
152,933

Assets of discontinued operations

 

 

 
19,490

 
20,290

Total assets
$
8,625,337

 
$
9,359,931

 
$
9,886,525

 
$
10,630,067

 
$
10,260,822

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
$
1,107,442

 
$
993,745

 
$
1,120,700

 
$
1,023,360

 
$
1,061,557

Interest-bearing deposits
4,662,616

 
5,298,545

 
6,604,232

 
6,893,284

 
6,340,185

Total deposits
5,770,058

 
6,292,290

 
7,724,932

 
7,916,644

 
7,401,742

Advances from Federal Home Loan Bank
1,650,000

 
1,825,000

 
935,000

 
1,520,000

 
1,640,000

Notes payable, net
173,339

 
173,257

 
173,203

 
173,174

 
173,096

Reserve for loss on repurchased loans
6,561

 
2,478

 
2,486

 
2,506

 
2,575

Lease liabilities
25,210

 
25,457

 
25,893

 

 

Due on unsettled securities purchases

 

 

 

 
17,500

Accrued expenses and other liabilities
99,181

 
77,905

 
76,686

 
72,209

 
79,231

Total liabilities
7,724,349

 
8,396,387

 
8,938,200

 
9,684,533

 
9,314,144

Commitments and contingent liabilities
 
 
 
 
 
 
 
 
 
Preferred stock
189,825

 
231,128

 
231,128

 
231,128

 
231,128

Common stock
520

 
520

 
518

 
518

 
518

Common stock, class B non-voting non-convertible
5

 
5

 
5

 
5

 
5

Additional paid-in capital
628,774

 
627,306

 
626,608

 
625,834

 
624,789

Retained earnings
120,221

 
146,039

 
136,943

 
140,952

 
140,971

Treasury stock
(28,786
)
 
(28,786
)
 
(28,786
)
 
(28,786
)
 
(28,786
)
Accumulated other comprehensive loss, net
(9,571
)
 
(12,668
)
 
(18,091
)
 
(24,117
)
 
(21,947
)
Total stockholders’ equity
900,988

 
963,544

 
948,325

 
945,534

 
946,678

Total liabilities and stockholders’ equity
$
8,625,337

 
$
9,359,931

 
$
9,886,525

 
$
10,630,067

 
$
10,260,822





EX 99.1

Banc of California, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Nine Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
September 30,
2019
 
September 30,
2018
Interest and dividend income
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, including fees
$
80,287

 
$
89,159

 
$
90,558

 
$
88,258

 
$
84,795

 
$
260,004

 
$
241,014

Securities
10,024

 
12,457

 
17,841

 
19,882

 
20,599

 
40,322

 
63,685

Other interest-earning assets
2,346

 
2,424

 
2,313

 
2,990

 
2,380

 
7,083

 
6,967

Total interest and dividend income
92,657

 
104,040

 
110,712

 
111,130

 
107,774

 
307,409

 
311,666

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
22,811

 
28,598

 
31,443

 
28,972

 
25,154

 
82,852

 
62,264

Federal Home Loan Bank advances
8,519

 
8,289

 
9,081

 
9,068

 
8,996

 
25,889

 
25,927

Securities sold under repurchase agreements
13

 
16

 
18

 
25

 
47

 
47

 
1,008

Notes payable and other interest-bearing liabilities
2,399

 
2,357

 
2,362

 
2,383

 
2,385

 
7,118

 
7,073

Total interest expense
33,742

 
39,260

 
42,904

 
40,448

 
36,582

 
115,906

 
96,272

Net interest income
58,915

 
64,780

 
67,808

 
70,682

 
71,192

 
191,503

 
215,394

Provision for (reversal of) loan and lease losses
38,540

 
(1,987
)
 
2,512

 
6,653

 
1,410

 
39,065

 
23,562

Net interest income after provision for loan and lease losses
20,375

 
66,767

 
65,296

 
64,029

 
69,782

 
152,438

 
191,832

Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer service fees
1,582

 
1,434

 
1,515

 
1,786

 
1,446

 
4,531

 
4,529

Loan servicing income
128

 
121

 
118

 
22

 
439

 
367

 
3,698

Income from bank owned life insurance
588

 
580

 
525

 
559

 
551

 
1,693

 
1,617

Impairment loss on investment securities
(731
)
 

 

 
(3,252
)
 

 
(731
)
 

Net (loss) gain on sale of securities available for sale
(5,063
)
 

 
208

 

 
13

 
(4,855
)
 
5,532

Net gain on sale of loans
4,326

 
2,826

 
1,553

 
873

 
279

 
8,705

 
1,059

All other income (loss)
2,351

 
(7,251
)
 
2,376

 
2,460

 
2,096

 
(2,524
)
 
5,032

Total noninterest income
3,181

 
(2,290
)
 
6,295

 
2,448

 
4,824

 
7,186

 
21,467

Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
25,934

 
27,506

 
28,439

 
24,587

 
24,832

 
81,879

 
85,387

Occupancy and equipment
7,767

 
7,955

 
7,686

 
8,064

 
8,213

 
23,408

 
23,783

Professional fees (reimbursement)
1,463

 
(2,903
)
 
11,041

 
6,206

 
11,966

 
9,601

 
27,446

Data processing
1,568

 
1,672

 
1,496

 
1,733

 
1,884

 
4,736

 
5,218

Advertising
2,090

 
2,048

 
2,057

 
3,371

 
3,152

 
6,195

 
9,293

Regulatory assessments
1,239

 
2,136

 
2,482

 
1,252

 
2,138

 
5,857

 
6,426

(Reversal of) provision for loan repurchases
(123
)
 
(61
)
 
(116
)
 
(122
)
 
(360
)
 
(300
)
 
(2,366
)
Amortization of intangible assets
500

 
621

 
620

 
644

 
693

 
1,741

 
2,363

Restructuring (reversal) expense

 
(158
)
 
2,795

 
(105
)
 
553

 
2,637

 
4,536

All other expenses
3,809

 
5,126

 
3,385

 
3,153

 
5,322

 
12,320

 
16,872

Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships
44,247

 
43,942

 
59,885

 
48,783

 
58,393

 
148,074

 
178,958

(Gain) loss on investments in alternative energy partnerships
(940
)
 
(355
)
 
1,950

 
786

 
2,484

 
655

 
4,258

Total noninterest expense
43,307

 
43,587

 
61,835

 
49,569

 
60,877

 
148,729

 
183,216

(Loss) income from continuing operations before income taxes
(19,751
)
 
20,890

 
9,756

 
16,908

 
13,729

 
10,895

 
30,083

Income tax (benefit) expense
(5,619
)
 
4,308

 
2,719

 
6,117

 
3,301

 
1,408

 
(1,273
)
(Loss) income from continuing operations
(14,132
)
 
16,582

 
7,037

 
10,791

 
10,428

 
9,487

 
31,356

Income from discontinued operations before income taxes

 

 

 
347

 
924

 

 
4,249

Income tax expense

 

 

 
100

 
256

 

 
1,171

Income from discontinued operations

 

 

 
247

 
668

 

 
3,078




EX 99.1

Net (loss) income
(14,132
)
 
16,582

 
7,037

 
11,038

 
11,096

 
9,487

 
34,434

Preferred stock dividends
3,403

 
4,308

 
4,308

 
4,308

 
4,970

 
12,019

 
15,196

Income allocated to participating securities

 
271

 

 

 

 

 

Participating securities dividends
94

 
94

 
202

 
203

 
202

 
390

 
608

Impact of preferred stock redemption
5,093

 

 

 

 
2,307

 
5,093

 
2,307

Net (loss) income available to common stockholders
$
(22,722
)
 
$
11,909

 
$
2,527

 
$
6,527

 
$
3,617

 
$
(8,015
)
 
$
16,323

Basic (loss) earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.45
)
 
$
0.23

 
$
0.05

 
$
0.12

 
$
0.06

 
$
(0.16
)
 
$
0.26

Income from discontinued operations

 

 

 
0.01

 
0.01

 

 
0.06

Net income
$
(0.45
)
 
$
0.23

 
$
0.05

 
$
0.13

 
$
0.07

 
$
(0.16
)
 
$
0.32

Diluted (loss) earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations
$
(0.45
)
 
$
0.23

 
$
0.05

 
$
0.12

 
$
0.06

 
$
(0.16
)
 
$
0.26

Income from discontinued operations

 

 

 
0.01

 
0.01

 

 
0.06

Net (loss) income
$
(0.45
)
 
$
0.23

 
$
0.05

 
$
0.13

 
$
0.07

 
$
(0.16
)
 
$
0.32

Weighted average number of common shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
50,882,227

 
50,857,137

 
50,676,722

 
50,651,805

 
50,656,076

 
50,804,429

 
50,613,590

Diluted
50,882,227

 
50,964,956

 
50,846,722

 
50,812,874

 
50,899,464

 
50,896,437

 
50,896,437

Dividends declared per common share
$
0.06

 
$
0.06

 
$
0.13

 
$
0.13

 
$
0.13

 
$
0.19

 
$
0.39





EX 99.1

Banc of California, Inc.
Selected Financial Data
(Unaudited)

 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
Profitability and other ratios of consolidated operations
 
 
 
 
 
 
 
 
 
Return on average assets(1)
(0.64
)%
 
0.69
 %
 
0.28
%
 
0.43
%
 
0.43
%
Return on average equity(1)
(5.83
)%
 
6.91
 %
 
2.98
%
 
4.56
%
 
4.40
%
Return on average tangible common equity(2)
(12.49
)%
 
7.43
 %
 
1.91
%
 
4.19
%
 
2.49
%
Dividend payout ratio(3)
(13.33
)%
 
26.09
 %
 
260.00
%
 
100.00
%
 
185.71
%
Net interest spread
2.47
 %
 
2.50
 %
 
2.47
%
 
2.56
%
 
2.62
%
Net interest margin(1)
2.86
 %
 
2.86
 %
 
2.81
%
 
2.88
%
 
2.93
%
Noninterest income (loss) to total revenue(4)
5.12
 %
 
(3.66
)%
 
8.49
%
 
3.60
%
 
7.42
%
Noninterest income (loss) to average total assets(1)
0.15
 %
 
(0.10
)%
 
0.25
%
 
0.10
%
 
0.22
%
Noninterest expense to average total assets(1)
1.98
 %
 
1.82
 %
 
2.43
%
 
1.92
%
 
2.38
%
Efficiency ratio(2)(5)
69.74
 %
 
69.75
 %
 
83.44
%
 
67.47
%
 
79.15
%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships(2)(5)
68.31
 %
 
67.84
 %
 
83.00
%
 
67.09
%
 
77.88
%
Average loans held-for-investment to average deposits
105.92
 %
 
104.38
 %
 
100.45
%
 
97.40
%
 
97.00
%
Average securities available-for-sale to average total assets
12.71
 %
 
13.58
 %
 
17.00
%
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