Exhibit 99.1

 

LOGO

Banc of California Reports Third Quarter 2018 Earnings

SANTA ANA, Calif., (October 25, 2018) – Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders of $3.8 million, for the third quarter of 2018, resulting in diluted earnings per common share of $0.07 for the quarter.

Highlights for the Third quarter included:

 

   

Strong Core Deposit Growth: Core deposits grew by $171 million, or an 11% annualized rate of growth, allowing for a $70 million reduction in wholesale funding.

 

   

Organic Loan Growth: Held for investment loans increased by $217 million during the quarter to $7.3 billion. Annualized loan portfolio growth for the year to date period was 12%.

 

   

Gross loan commitment originations totaled $907 million for the third quarter at an average production yield of 5.22%.

 

   

Continuation of Balance Sheet Re-Mix: Reduced securities by $237 million, or 10%, driven by the continued reduction of Collateralized Loan Obligations (“CLOs”).

 

   

Bolstered Talent: Named key leadership positions for Middle Market Banking and Business Banking.

 

   

Disciplined Expense Management: Third quarter noninterest expense totaled $61 million.

 

   

Strong Credit Performance: Non-performing assets of 0.25% and total delinquencies of 0.49%. Net charge-offs totaled $306,000. The ALLL / total loan ratio was 0.80% at quarter end, down from 0.81% at the prior quarter end and up from 0.72% a year ago.

 

   

Strong Capital Ratios: Called the Series C $40 million preferred equity class during the quarter. Common equity tier 1 capital ratio of 9.80%, compared to 9.91% a year ago.

The Company’s third quarter reported financial results included $7.6 million of legal and professional fees partially offset by a $1.7 million insurance recovery related to ongoing indemnification expense, a software write-off of $1.5 million and a $553,000 restructuring expense. The aggregate impact of these items resulted in $8.0 million of net, nonrecurring expenses for the quarter. In connection with redeeming all $40 million of the Series C preferred stock during the quarter, the Company recorded a one-time reduction to net income available to common stockholders of $2.3 million, which represented the issuance cost of the Series C preferred stock.

“We continue to execute on our strategic plan and the third quarter saw yet more progress,” said Doug Bowers, President and Chief Executive Officer of Banc of California. “We saw strong growth in our core deposits with balances increasing $171 million for the quarter or 11% annualized. Loan growth was also strong at $217 million or 12% annualized. Efforts to streamline, simplify and create efficiencies are also paying dividends as noninterest expense, excluding non-recurring items, once again declined. Credit quality remained strong with non-performing assets to total assets at 0.25%.”

The Company will host a conference call to discuss its third quarter 2018 financial results at 7:00 a.m. Pacific Time (PT) on Thursday, October 25, 2018. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1013055. 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) provides comprehensive banking services to California’s diverse businesses, entrepreneurs and communities. Banc of California operates 34 offices in California.

 

3 MacArthur Place  ●  Santa Ana, CA 92707  ●  (949) 236-5250  ●  www.bancofcal.com


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.    Abernathy MacGregor
John A. Bogler, (949) 236-5400   

Ian Campbell / James Bourne / Sarah Dhanaphatana, (213) 630-6550

idc@abmac.com / jab@abmac.com / skd@abmac.com

 

- 2 -


Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

 

     September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
 

ASSETS

          

Cash and cash equivalents

   $ 372,221     $ 385,691     $ 346,704     $ 387,699     $ 611,826  

Time deposits in financial institutions

     —         —         —         —         1,000  

Securities available-for-sale

     2,059,832       2,297,124       2,424,593       2,575,469       2,755,664  

Loans held-for-sale

     9,382       13,753       20,180       67,069       50,130  

Loans and leases receivable

     7,253,293       7,036,004       6,930,507       6,659,407       6,226,897  

Allowance for loan and lease losses

     (57,782     (56,678     (54,763     (49,333     (45,072

Federal Home Loan Bank and other bank stock

     71,308       75,737       82,715       75,654       67,063  

Servicing rights, net

     3,770       3,869       6,739       33,708       40,448  

Other real estate owned, net

     434       710       1,024       1,796       3,682  

Premises and equipment, net

     133,129       135,478       135,198       135,699       139,326  

Investments in alternative energy partnerships, net

     41,781       44,806       48,344       48,826       43,817  

Goodwill

     37,144       37,144       37,144       37,144       37,144  

Other intangible assets, net

     6,990       7,683       8,510       9,353       10,219  

Deferred income tax, net

     47,865       42,334       43,192       31,074       23,333  

Income tax receivable

     1,764       7,995       10,126       8,739       7,699  

Bank owned life insurance investment

     106,468       105,917       105,384       104,851       104,292  

Other assets

     152,933       155,298       153,834       161,797       142,985  

Assets of discontinued operations

     20,290       26,415       29,888       38,900       59,575  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 10,260,822     $ 10,319,280     $ 10,329,319     $ 10,327,852     $ 10,280,028  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

          

Noninterest-bearing deposits

   $ 1,061,557     $ 1,005,032     $ 1,039,116     $ 1,071,608     $ 1,075,782  

Interest-bearing deposits

     6,340,185       6,130,762       6,071,049       6,221,295       6,327,811  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     7,401,742       7,135,794       7,110,165       7,292,903       7,403,593  

Advances from Federal Home Loan Bank

     1,640,000       1,805,000       1,905,000       1,695,000       1,470,000  

Securities sold under repurchase agreements

     —         —         —         —         36,520  

Notes payable, net

     173,096       173,017       172,966       172,941       172,865  

Reserve for loss on repurchased loans

     2,575       3,149       3,426       6,306       6,173  

Due on unsettled securities purchases

     17,500       132,546       59,000       —         54,500  

Accrued expenses and other liabilities

     79,231       81,086       84,997       140,575       109,969  

Liabilities of discontinued operations

     —         —         9       7,819       12,500  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     9,314,144       9,330,592       9,335,563       9,315,544       9,266,120  

Commitments and contingent liabilities

          

Preferred stock

     231,128       269,071       269,071       269,071       269,071  

Common stock

     518       517       517       517       542  

Common stock, class B non-voting non-convertible

     5       4       5       5       4  

Additional paid-in capital

     624,789       623,372       623,483       621,435       619,849  

Retained earnings

     140,971       143,880       141,008       144,839       145,420  

Treasury stock

     (28,786     (28,786     (28,786     (28,786     (28,786

Accumulated other comprehensive (loss) income, net

     (21,947     (19,370     (11,542     5,227       7,808  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     946,678       988,688       993,756       1,012,308       1,013,908  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 10,260,822     $ 10,319,280     $ 10,329,319     $ 10,327,852     $ 10,280,028  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

3


Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

 

    Three Months Ended     Nine Months Ended  
    September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
    September 30,
2018
    September 30,
2017
 

Interest and dividend income

             

Loans, including fees

  $ 84,795     $ 81,307     $ 74,912     $ 71,695     $ 70,208     $ 241,014     $ 209,376  

Securities

    20,599       21,455       21,631       23,170       24,337       63,685       76,572  

Other interest-earning assets

    2,380       2,423       2,164       2,292       2,206       6,967       6,085  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest and dividend income

    107,774       105,185       98,707       97,157       96,751       311,666       292,033  

Interest expense

             

Deposits

    25,154       20,315       16,795       16,044       15,468       62,264       44,370  

Federal Home Loan Bank advances

    8,996       9,539       7,392       5,402       3,352       25,927       7,549  

Securities sold under repurchase agreements

    47       211       750       194       500       1,008       686  

Notes payable and other interest-bearing liabilities

    2,385       2,356       2,332       2,344       2,395       7,073       8,411  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest expense

    36,582       32,421       27,269       23,984       21,715       96,272       61,016  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

    71,192       72,764       71,438       73,173       75,036       215,394       231,017  

Provision for loan and lease losses

    1,410       2,653       19,499       5,052       3,561       23,562       8,647  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan and lease losses

    69,782       70,111       51,939       68,121       71,475       191,832       222,370  

Noninterest income

             

Customer service fees

    1,446       1,491       1,592       1,624       1,576       4,529       4,868  

Loan servicing income (loss)

    439       948       2,311       (2,416     553       3,698       3,441  

Net gain on sale of securities available for sale

    13       278       5,241       2,688       7,625       5,532       12,080  

Net gain (loss) on sale of loans

    279       821       (41     1,205       5,735       1,059       10,737  

All other income (loss)

    2,647       4,523       (521     2,594       2,876       6,649       7,849  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest income

    4,824       8,061       8,582       5,695       18,365       21,467       38,975  

Noninterest expense

             

Salaries and employee benefits

    24,832       29,440       31,115       33,146       30,216       85,387       96,007  

Occupancy and equipment

    8,213       7,883       7,687       9,565       10,085       23,783       30,529  

Professional fees

    11,966       6,303       9,177       7,853       7,697       27,446       34,564  

Data processing

    1,884       1,678       1,656       1,562       1,901       5,218       6,326  

Advertising

    3,152       2,864       3,277       1,420       1,051       9,293       3,893  

Regulatory assessments

    2,138       2,196       2,092       2,174       2,350       6,426       5,931  

Reversal of provision for loan repurchases

    (360     (218     (1,788     (335     (749     (2,366     (1,477

Amortization of intangible assets

    693       827       843       866       916       2,363       3,062  

Restructuring expense

    553       3,983       —         (43     —         4,536       5,369  

All other expenses

    5,322       5,775       5,775       6,179       13,856       16,872       30,891  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    58,393       60,731       59,834       62,387       67,323       178,958       215,095  

Loss (gain) on investments in alternative energy partnerships

    2,484       1,808       (34     3,995       8,348       4,258       26,791  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total noninterest expense

    60,877       62,539       59,800       66,382       75,671       183,216       241,886  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

    13,729       15,633       721       7,434       14,169       30,083       19,459  

Income tax expense (benefit)

    3,301       1,779       (6,353     (3,418     (3,939     (1,273     (23,163
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

    10,428       13,854       7,074       10,852       18,108       31,356       42,622  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from discontinued operations before income taxes

    924       1,281       2,044       765       (1,958     4,249       6,399  

Income tax expense (benefit)

    256       355       560       315       (799     1,171       2,614  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from discontinued operations

    668       926       1,484       450       (1,159     3,078       3,785  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    11,096       14,780       8,558       11,302       16,949       34,434       46,407  

Preferred stock dividends

    4,970       5,113       5,113       5,113       5,112       15,196       15,338  

Impact of preferred stock redemption

    2,307       —         —         —         —         2,307       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common stockholders

  $ 3,819     $ 9,667     $ 3,445     $ 6,189     $ 11,837     $ 16,931     $ 31,069  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per total common share

             

Income from continuing operations

  $ 0.06     $ 0.17     $ 0.03     $ 0.11     $ 0.25     $ 0.26     $ 0.52  

Income (loss) from discontinued operations

    0.01       0.02       0.03       0.01       (0.02     0.06       0.08  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 0.07     $ 0.19     $ 0.06     $ 0.12     $ 0.23     $ 0.32     $ 0.60  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per total common share

             

Income from continuing operations

  $ 0.06     $ 0.16     $ 0.03     $ 0.11     $ 0.25     $ 0.26     $ 0.52  

Income (loss) from discontinued operations

    0.01       0.02       0.03       0.01       (0.02     0.06       0.07  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 0.07     $ 0.18     $ 0.06     $ 0.12     $ 0.23     $ 0.32     $ 0.59  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding

             

Basic

    50,656,076       50,593,429       50,590,545       50,532,544       50,362,314       50,613,590       50,160,928  

Diluted

    50,899,464       50,919,091       50,925,530       50,943,165       50,933,358       50,873,002       50,810,407  

Dividends declared per common share

  $ 0.13     $ 0.13     $ 0.13     $ 0.13     $ 0.13     $ 0.39     $ 0.39  

 

4


Banc of California, Inc.

Reconciliation of Consolidated Statements of Operations between Continuing and Discontinued Operations

(Dollars in thousands, except per share data)

(Unaudited)

 

     Three Months Ended September 30, 2018     Nine Months Ended September 30, 2018  
     Continuing
Operations
    Discontinued
Operations
     Consolidated
Operations
    Continuing
Operations
    Discontinued
Operations
     Consolidated
Operations
 

Interest and dividend income

   $ 107,774     $ 130      $ 107,904     $ 311,666     $ 505      $ 312,171  

Interest expense

     36,582       —          36,582       96,272       —          96,272  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net interest income

     71,192       130        71,322       215,394       505        215,899  

Provision for loan and lease losses

     1,410       —          1,410       23,562       —          23,562  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net interest income after provision for loan and lease losses

     69,782       130        69,912       191,832       505        192,337  

Noninterest income

              

Customer service fees

     1,446       —          1,446       4,529       —          4,529  

Loan servicing income

     439       —          439       3,698       —          3,698  

Net gain on sale of securities available for sale

     13       —          13       5,532       —          5,532  

Net gain on sale of loans

     279       —          279       1,059       —          1,059  

Mortgage banking income

     —         108        108       —         396        396  

Gain on disposal of discontinued operations

     —         —          —         —         1,275        1,275  

All other income

     2,647       786        3,433       6,649       2,200        8,849  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total noninterest income

     4,824       894        5,718       21,467       3,871        25,338  

Noninterest expense

              

Salaries and employee benefits

     24,832       5        24,837       85,387       20        85,407  

Occupancy and equipment

     8,213       —          8,213       23,783       —          23,783  

Professional fees

     11,966       —          11,966       27,446       —          27,446  

Data processing

     1,884       —          1,884       5,218       —          5,218  

Advertising

     3,152       —          3,152       9,293       —          9,293  

Regulatory assessments

     2,138       —          2,138       6,426       —          6,426  

Reversal of provision for loan repurchases

     (360     —          (360     (2,366     —          (2,366

Loss on investments in alternative energy partnerships

     2,484       —          2,484       4,258       —          4,258  

Amortization of intangible assets

     693       —          693       2,363       —          2,363  

Restructuring expense

     553       —          553       4,536       —          4,536  

All other expenses

     5,322       95        5,417       16,872       107        16,979  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total noninterest expense

     60,877       100        60,977       183,216       127        183,343  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Income before income taxes

     13,729       924        14,653       30,083       4,249        34,332  

Income tax (benefit) expense

     3,301       256        3,557       (1,273     1,171        (102
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net income

   $ 10,428     $ 668      $ 11,096     $ 31,356     $ 3,078      $ 34,434  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

5


Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

 

    Three Months Ended     Nine Months Ended  
    September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
    September 30,
2018
    September 30,
2017
 

Profitability and other ratios of consolidated operations

             

Return on average assets (1)

    0.43     0.58     0.34     0.44     0.67     0.45     0.58

Return on average equity (1)

    4.40     5.92     3.40     4.42     6.69     4.57     6.16

Return on average tangible common equity (2)

    2.49     6.03     2.37     3.84     7.16     3.61     6.46

Dividend payout ratio (3)

    185.71     68.42     216.67     108.33     56.52     121.88     65.00

Net interest spread

    2.62     2.75     2.74     2.79     2.92     2.70     2.96

Net interest margin (1)

    2.93     3.01     2.98     3.01     3.15     2.97     3.14

Noninterest income to total revenue (4)

    7.42     11.16     12.73     8.07     19.86     10.50     29.24

Noninterest income to average total assets (1)

    0.22     0.36     0.41     0.25     0.74     0.33     1.23

Noninterest expense to average total assets (1)

    2.38     2.45     2.36     2.59     3.10     2.40     3.79

Efficiency ratio (5)

    79.15     76.17     72.87     83.37     83.36     76.00     89.74

Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships (2) , (5)

    77.88     73.50     65.70     75.46     72.49     71.97     77.58

Average held-for-investment loans and leases to average deposits

    97.00     98.63     94.87     86.09     77.33     96.85     72.88

Average investment securities to average total assets

    21.28     22.27     24.60     26.10     27.64     22.71     28.67

Average stockholders’ equity to average total assets

    9.85     9.78     9.94     9.98     9.95     9.85     9.45

Allowance for loan and lease losses (ALLL)

             

Balance at beginning of period

  $ 56,678     $     54,763     $      49,333     $ 45,072     $ 42,385     $ 49,333     $ 40,444  

Loans and leases charged off

    (388     (950     (14,639     (1,367     (959     (15,977     (4,214

Recoveries

    82       212       570       576       85       864       195  

Provision for loan and lease losses

    1,410       2,653       19,499       5,052       3,561       23,562       8,647  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at end of period

  $ 57,782     $ 56,678     $ 54,763     $ 49,333     $ 45,072     $ 57,782     $ 45,072  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Annualized net loan charge-offs to average total loans and leases held-for-investment

    0.02     0.04     0.84     0.05     0.06     0.29     0.09

Reserve for loss on repurchased loans

             

Balance at beginning of period

  $ 3,149     $ 3,426     $ 6,306     $ 6,173     $ 8,028       6,306     $ 7,974  

Provision (reversal) for loan repurchases

    (342     (165     (1,786     (326     (651     (2,293     136  

Utilization of reserve for loan repurchases

    (232     (112     (1,094     (301     (1,204     (1,438     (1,937

Other adjustments

    —         —         —         760       —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at end of period

  $ 2,575     $ 3,149     $ 3,426     $ 6,306     $ 6,173     $ 2,575     $ 6,173  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Ratios are presented on an annualized basis.

(2)

The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). See Non-GAAP measures section for reconciliation of the calculation.

(3)

The ratio is calculated by dividing dividends declared per common share by basic earnings per share.

(4)

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

(5)

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

 

6


Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

 

     September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
 

Asset quality information and ratios

          

Delinquent loans and leases held-for-investment

          

30 to 89 days delinquent

   $ 20,265     $ 15,097     $ 31,936     $ 32,087     $ 20,286  

90+ days delinquent

     15,269       11,453       11,526       9,542       11,150  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total delinquent loans

   $ 35,534     $ 26,550     $ 43,462     $ 41,629     $ 31,436  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total delinquent loans and leases to total loans and leases

     0.49     0.38     0.63     0.63     0.50

Non-performing assets, excluding loans held-for-sale

          

Non-performing loans and leases

   $ 25,523     $ 22,290     $ 21,220     $ 19,382     $ 12,275  

90+ days delinquent and still accruing loans and leases

     —         —         —         —         —    

Other real estate owned

     434       710       1,024       1,796       3,682  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-performing assets

   $ 25,957     $ 23,000     $ 22,244     $ 21,178     $ 15,957  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ALLL to non-performing loans and leases

     226.39     254.28     258.07     254.53     367.19

Non-performing loans and leases to total loans and leases

     0.35     0.32     0.31     0.29     0.20

Non-performing assets to total assets

     0.25     0.22     0.22     0.21     0.16

Troubled debt restructurings (TDRs)

          

Performing TDRs

   $ 5,580     $ 5,648     $ 5,787     $ 5,646     $ 5,668  

Non-performing TDRs

     2,684       2,701       2,632       2,675       –    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total TDRs

   $ 8,264     $ 8,349     $ 8,419     $ 8,321     $ 5,668  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans and leases and ALLL by loan origination type

          

Loan and lease breakdown by origination type

          

Originated loans and leases

   $     6,683,683     $     6,446,127     $     6,295,843     $     5,988,101     $     5,488,018  

Acquired loans not impaired at acquisition

     569,610       589,877       634,664       671,306       738,879  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans and leases

   $ 7,253,293     $ 7,036,004     $ 6,930,507     $ 6,659,407     $ 6,226,897  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ALLL breakdown by origination type

          

Originated loans and leases

   $ 56,672     $ 55,534     $ 53,605     $ 48,110     $ 43,723  

Acquired loans not impaired at acquisition

     1,110       1,144       1,158       1,223       1,349  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ALLL

   $ 57,782     $ 56,678     $ 54,763     $ 49,333     $ 45,072  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Discount on Purchased/Acquired Loans

          

Acquired loans not impaired at acquisition

   $ 12,311     $ 12,932     $ 14,255     $ 14,943     $ 15,983  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Discount

   $ 12,311     $ 12,932     $ 14,255     $ 14,943     $ 15,983  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Percentage of ALLL to:

          

Originated loans and leases

     0.85     0.86     0.85     0.80     0.80

Originated loans and leases and acquired loans not impaired at acquisition

     0.80     0.81     0.79     0.74     0.72

Total loans and leases

     0.80     0.81     0.79     0.74     0.72

 

7


Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

 

     September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
 

Composition of held-for-investment loans and leases

          

Commercial real estate

   $ 823,193     $ 793,855     $ 773,193     $ 717,415     $ 713,120  

Multifamily

     2,112,190       1,959,965       1,944,082       1,816,141       1,617,890  

Construction

     200,294       211,110       200,766       182,960       176,397  

Commercial and industrial

     1,673,055       1,742,559       1,638,559       1,701,951       1,602,805  

SBA

     71,494       78,092       79,022       78,699       78,604  

Lease financing

     —         —         3       13       91  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total commercial loans

     4,880,226       4,785,581       4,635,625       4,497,179       4,188,907  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Single family residential mortgage

     2,300,069       2,174,183       2,201,358       2,055,649       1,920,310  

Other consumer

     72,998       76,240       93,524       106,579       117,680  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total consumer loans

     2,373,067       2,250,423       2,294,882       2,162,228       2,037,990  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross loans and leases

   $ 7,253,293     $ 7,036,004     $ 6,930,507     $ 6,659,407     $ 6,226,897  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Composition percentage of held-for-investment loans and leases

          

Commercial real estate

     11.3     11.3     11.2     10.8     11.5

Multifamily

     29.1     27.9     28.1     27.3     26.0

Construction

     2.8     3.0     2.9     2.7     2.8

Commercial and industrial

     23.1     24.8     23.6     25.5     25.7

SBA

     1.0     1.1     1.1     1.2     1.3

Lease financing

     0.0     0.0     0.0     0.0     0.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total commercial loans

     67.3     68.1     66.9     67.5     67.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Single family residential mortgage

     31.7     30.9     31.8     30.9     30.8

Other consumer

     1.0     1.0     1.3     1.6     1.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total consumer loans

     32.7     31.9     33.1     32.5     32.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross loans and leases

     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Composition of deposits

          

Noninterest-bearing checking

   $     1,061,557     $     1,005,032     $     1,039,116     $     1,071,608     $     1,075,782  

Interest-bearing checking

     1,713,790       1,778,400       1,864,629       2,089,016       2,011,943  

Money market

     856,886       1,136,335       1,091,735       1,146,859       1,728,937  

Savings

     1,269,489       1,175,275       1,051,267       1,059,628       945,699  

Brokered certificates of deposit

     987,771       686,203       974,706       915,623       708,559  

Non-brokered certificates of deposit

     1,512,249       1,354,549       1,088,712       1,010,169       932,673  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

   $ 7,401,742     $ 7,135,794     $ 7,110,165     $ 7,292,903     $ 7,403,593  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Composition percentage of deposits

          

Noninterest-bearing checking

     14.3     14.1     14.6     14.7     14.5

Interest-bearing checking

     23.2     24.9     26.2     28.7     27.2

Money market

     11.6     15.9     15.4     15.7     23.3

Savings

     17.2     16.5     14.8     14.5     12.8

Brokered certificates of deposit

     13.3     9.6     13.7     12.5     9.6

Non-brokered certificates of deposit

     20.4     19.0     15.3     13.9     12.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capital Ratios

          

Banc of California, Inc.

          

Total risk-based capital ratio

     14.05     14.71     14.60     14.56     14.48

Tier 1 risk-based capital ratio

     13.15     13.83     13.74     13.79     13.77

Common equity tier 1 capital ratio

     9.80     9.90     9.80     9.92     9.91

Tier 1 leverage ratio

     8.99     9.30     9.21     9.39     9.55

Banc of California, NA

          

Total risk-based capital ratio

     15.94     16.63     16.53     16.56     16.39

Tier 1 risk-based capital ratio

     15.04     15.74     15.67     15.78     15.68

Common equity tier 1 capital ratio

     15.04     15.74     15.67     15.78     15.68

Tier 1 leverage ratio

     10.29     10.58     10.50     10.67     10.88

 

8


Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended  
     September 30, 2018     June 30, 2018     March 31, 2018  
     Average
Balance
    Interest      Yield
/ Cost
    Average
Balance
    Interest      Yield
/ Cost
    Average
Balance
    Interest      Yield
/ Cost
 

Interest earning assets

                     

Loans held-for-sale (1)

   $ 42,754     $ 263        2.44   $ 54,791     $ 328        2.40   $ 97,095     $ 297        1.24

SFR mortgage

     2,222,602       23,461        4.19     2,223,608       22,790        4.11     2,122,666       21,352        4.08

Seasoned SFR mortgage loan pools

     —         —          —         —         —          —         —         —          —    

Commercial real estate, multifamily, and construction

     3,091,706       35,838        4.60     2,989,014       33,736        4.53     2,856,290       31,439        4.46

Commercial and industrial, SBA, and lease financing

     1,739,711       24,382        5.56     1,707,478       23,664        5.56     1,625,549       20,850        5.20

Other consumer

     69,600       981        5.59     80,188       978        4.89     103,676       1,160        4.54
  

 

 

   

 

 

      

 

 

   

 

 

      

 

 

   

 

 

    

Gross loans and leases

     7,166,373       84,925        4.70     7,055,079       81,496        4.63     6,805,276       75,098        4.48

Securities

     2,163,037       20,599        3.78     2,279,416       21,455        3.78     2,525,220       21,631        3.47

Other interest-earning assets

     335,160       2,380        2.82     392,342       2,423        2.48     407,064       2,164        2.16
  

 

 

   

 

 

      

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

     9,664,570       107,904        4.43     9,726,837       105,374        4.35     9,737,560       98,893        4.12

Allowance for loan and lease losses

     (56,730          (54,903          (49,257     

BOLI and non-interest earning assets

     554,636            565,224            574,930       
  

 

 

        

 

 

        

 

 

      

Total assets

   $ 10,162,476          $ 10,237,158          $ 10,263,233       
  

 

 

        

 

 

        

 

 

      

Interest-bearing liabilities

                     

Savings

   $ 1,231,696       5,122        1.65   $ 1,055,693       3,886        1.48   $ 1,055,338       3,300        1.27

Interest-bearing checking

     1,789,679       5,054        1.12     1,822,856       4,182        0.92     1,976,160       4,108        0.84

Money market

     966,165       3,455        1.42     1,134,280       3,689        1.30     1,076,117       2,834        1.07

Certificates of deposit

     2,332,181       11,523        1.96     2,079,932       8,558        1.65     1,906,556       6,553        1.39
  

 

 

   

 

 

      

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     6,319,721       25,154        1.58     6,092,761       20,315        1.34     6,014,171       16,795        1.13

FHLB advances

     1,528,674       8,996        2.33     1,827,307       9,539        2.09     1,711,089       7,392        1.75

Securities sold under repurchase agreements

     6,418       47        2.91     29,907       211        2.83     119,543       750        2.54

Long-term debt and other interest-bearing liabilities

     174,361       2,385        5.43     174,296       2,356        5.42     174,424       2,332        5.42
  

 

 

   

 

 

      

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     8,029,174       36,582        1.81     8,124,271       32,421        1.60     8,019,227       27,269        1.38

Noninterest-bearing deposits

     1,023,890            1,004,502            1,056,700       

Non-interest-bearing liabilities

     108,593            107,529            167,345       
  

 

 

        

 

 

        

 

 

      

Total liabilities

     9,161,657            9,236,302            9,243,272       

Total stockholders’ equity

     1,000,819            1,000,856            1,019,961       
  

 

 

        

 

 

        

 

 

      

Total liabilities and stockholders’ equity

   $ 10,162,476          $ 10,237,158          $ 10,263,233       
  

 

 

        

 

 

        

 

 

      

Net interest income/spread

     $ 71,322        2.62     $ 72,953        2.75     $   71,624        2.74
    

 

 

        

 

 

        

 

 

    

Net interest margin

          2.93          3.01          2.98

Ratio of interest-earning assets to interest-bearing liabilities

     120.37          119.73          121.43     

Total deposits

   $ 7,343,611     $ 25,154        1.36   $ 7,097,263     $ 20,315        1.15   $ 7,070,871     $ 16,795        0.96

Total funding (2)

   $ 9,053,064     $ 36,582        1.60   $ 9,128,773     $ 32,421        1.42   $ 9,075,927     $ 27,269        1.22

 

(1)

Includes loans held-for-sale of discontinued operations.

(2)

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, 2017     September 30, 2017  
     Average
Balance
    Interest      Yield
/ Cost
    Average
Balance
    Interest      Yield
/ Cost
 

Interest earning assets

              

Loans held-for-sale (1)

   $ 127,139     $ 363        1.13   $ 246,675     $ 2,319        3.73

SFR mortgage

     1,957,754       19,487        3.95     1,775,443       17,435        3.90

Seasoned SFR mortgage loan pools

     —         —          —         84,128       1,208        5.70

Commercial real estate, multifamily, and construction

     2,613,940       29,696        4.51     2,494,284       28,659        4.56

Commercial and industrial, SBA, and lease financing

     1,630,886       20,989        5.11     1,553,816       20,141        5.14

Other consumer

     107,664       1,233        4.54     114,569       1,363        4.72
  

 

 

   

 

 

      

 

 

   

 

 

    

Gross loans and leases

     6,437,383       71,768        4.42     6,268,915       71,125        4.50

Securities

     2,653,838       23,170        3.46     2,791,585       24,337        3.46

Other interest-earning assets

     548,171       2,292        1.66     519,593       2,206        1.68
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

     9,639,392       97,230        4.00     9,580,093       97,668        4.04

Allowance for loan and lease losses

     (45,681          (42,696     

BOLI and non-interest earning assets

     572,692            563,784       
  

 

 

        

 

 

      

Total assets

   $ 10,166,403          $ 10,101,181       
  

 

 

        

 

 

      

Interest-bearing liabilities

              

Savings

   $ 1,019,659       2,947        1.15   $ 968,158       2,263        0.93

Interest-bearing checking

     2,082,677       4,267        0.81     2,037,729       3,871        0.75

Money market

     1,294,537       3,262        1.00     1,935,262       5,095        1.04

Certificates of deposit

     1,822,010       5,568        1.21     1,560,078       4,239        1.08
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     6,218,883       16,044        1.02     6,501,227       15,468        0.94

FHLB advances

     1,448,326       5,402        1.48     962,391       3,352        1.38

Securities sold under repurchase agreements

     33,513       194        2.30     88,810       500        2.23

Long-term debt and other interest-bearing liabilities

     174,066       2,344        5.34     173,772       2,395        5.47
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     7,874,788       23,984        1.21     7,726,200       21,715        1.12

Noninterest-bearing deposits

     1,110,815            1,178,062       

Non-interest-bearing liabilities

     166,432            191,457       
  

 

 

        

 

 

      

Total liabilities

     9,152,035            9,095,719       

Total stockholders’ equity

     1,014,368            1,005,462       
  

 

 

        

 

 

      

Total liabilities and stockholders’ equity

   $ 10,166,403          $ 10,101,181       
  

 

 

        

 

 

      

Net interest income/spread

     $     73,246        2.79     $     75,953        2.92
    

 

 

        

 

 

    

Net interest margin

          3.01          3.15

Ratio of interest-earning assets to interest-bearing liabilities

     122.41          123.99     

Total deposits

   $ 7,329,698     $ 16,044        0.87   $ 7,679,289     $ 15,468        0.80

Total funding (2)

   $ 8,985,603     $ 23,984        1.06   $ 8,904,262     $ 21,715        0.97

 

(1)

Includes loans held-for-sale of discontinued operations.

(2)

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.

 

10


Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)

 

     Nine Months Ended  
     September 30, 2018     September 30, 2017  
     Average
Balance
    Interest      Yield
/ Cost
    Average
Balance
    Interest      Yield
/ Cost
 

Interest earning assets

              

Loans held-for-sale (1)

   $ 64,681     $ 888        1.84   $ 281,177     $ 6,979        3.32

SFR mortgage

     2,189,991       67,603        4.13     2,081,088       60,873        3.91

Seasoned SFR mortgage loan pools

     —         —          —         129,949       5,474        5.63

Commercial real estate, multifamily, and construction

     2,979,866       101,013        4.53     2,408,943       79,651        4.42

Commercial and industrial, SBA, and lease financing

     1,691,331       68,896        5.45     1,542,884       59,347        5.14

Other consumer

     84,363       3,119        4.94     118,600       4,031        4.54
  

 

 

   

 

 

      

 

 

   

 

 

    

Gross loans and leases

     7,010,232       241,519        4.61     6,562,641       216,355        4.41

Securities

     2,321,231       63,685        3.67     3,055,468       76,572        3.35

Other interest-earning assets

     377,925       6,967        2.46     512,426       6,085        1.59
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

     9,709,388       312,171        4.30     10,130,535       299,012        3.95

Allowance for loan and lease losses

     (53,657          (42,297     

BOLI and non-interest earning assets

     564,856            570,108       
  

 

 

        

 

 

      

Total assets

   $ 10,220,587          $ 10,658,346       
  

 

 

        

 

 

      

Interest-bearing liabilities

              

Savings

   $ 1,114,888       12,308        1.48   $ 1,004,058       6,817        0.91

Interest-bearing checking

     1,862,215       13,345        0.96     2,020,208       10,894        0.72

Money market

     1,058,451       9,978        1.26     2,340,484       15,268        0.87

Certificates of deposit

     2,107,782       26,633        1.69     1,699,865       11,391        0.90
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     6,143,336       62,264        1.36     7,064,615       44,370        0.84

FHLB advances

     1,688,355       25,927        2.05     922,421       7,549        1.09

Securities sold under repurchase agreements

     51,542       1,008        2.61     42,061       686        2.18

Long-term debt and other interest-bearing liabilities

     174,360       7,073        5.42     219,080       8,411        5.13
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     8,057,593       96,272        1.60     8,248,176       61,016        0.99

Noninterest-bearing deposits

     1,028,245            1,206,881       

Non-interest-bearing liabilities

     127,607            196,104       
  

 

 

        

 

 

      

Total liabilities

     9,213,445            9,651,161       

Total stockholders’ equity

     1,007,142            1,007,185       
  

 

 

        

 

 

      

Total liabilities and stockholders’ equity

   $ 10,220,587          $ 10,658,346       
  

 

 

        

 

 

      

Net interest income/spread

     $ 215,899        2.70     $ 237,996        2.96
    

 

 

        

 

 

    

Net interest margin

          2.97          3.14

Ratio of interest-earning assets to interest-bearing liabilities

     120.50          122.82     

Total deposits

   $ 7,171,581     $ 62,264        1.16   $ 8,271,496     $ 44,370        0.72

Total funding (2)

   $ 9,085,838     $ 96,272        1.42   $ 9,455,057     $ 61,016        0.86

 

(1)

Includes loans held-for-sale of discontinued operations.

(2)

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.

 

11


Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Under Item 10(e) of SEC Regulation S-K, public companies disclosing financial measures in filings with the SEC that are not calculated in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a presentation of the most directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a statement of the reasons why the company’s management believes that presentation of the non-GAAP financial measure provides useful information to investors regarding the company’s financial condition and results of operations and, to the extent material, a statement of the additional purposes, if any, for which the company’s management uses the non-GAAP financial measure.

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity to tangible assets, and tangible common equity per common share and tangible common equity per common share and per common share issuable under purchase contracts constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company’s performance.

Tangible common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders’ equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution.

Adjusted efficiency ratio is calculated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pre-tax return, which includes the loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company.

This disclosure should not be viewed as a substitute 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 provide reconciliations of the non-GAAP measures with financial measures defined by GAAP.

 

     September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
 

Tangible common equity to tangible assets ratio

          

Total assets

   $ 10,260,822     $ 10,319,280     $ 10,329,319     $ 10,327,852     $ 10,280,028  

Less goodwill

     (37,144     (37,144     (37,144     (37,144     (37,144

Less other intangible assets

     (6,990     (7,683     (8,510     (9,353     (10,219
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 10,216,688     $ 10,274,453     $ 10,283,665     $ 10,281,355     $ 10,232,665  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

   $ 946,678     $ 988,688     $ 993,756     $ 1,012,308     $ 1,013,908  

Less goodwill

     (37,144     (37,144     (37,144     (37,144     (37,144

Less other intangible assets

     (6,990     (7,683     (8,510     (9,353     (10,219
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible equity

     902,544       943,861       948,102       965,811       966,545  

Less preferred stock

     (231,128     (269,071     (269,071     (269,071     (269,071
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible common equity

   $ 671,416     $ 674,790     $ 679,031     $ 696,740     $ 697,474  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity to total assets

     9.23     9.58     9.62     9.80     9.86

Tangible equity to tangible assets

     8.83     9.19     9.22     9.39     9.45

Tangible common equity to tangible assets

     6.57     6.57     6.60     6.78     6.82

Common stock outstanding

     50,180,607       50,142,955       50,079,736       50,083,345       50,096,056  

Class B non-voting non-convertible common stock outstanding

     477,321       403,778       508,107       508,107       430,694  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total common stock outstanding

     50,657,928       50,546,733       50,587,843       50,591,452       50,526,750  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tangible common equity per common stock

   $ 13.25     $ 13.35     $ 13.42     $ 13.77     $ 13.80  

Book value per common stock

   $ 14.13     $ 14.24     $ 14.33     $ 14.69     $ 14.74  

 

12


Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

 

    Three Months Ended     Nine Months Ended  
    September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
    September 30,
2018
    September 30,
2017
 

Return on tangible common equity

             

Average total stockholders’ equity

  $     1,000,819     $     1,000,856     $ 1,019,961     $ 1,014,368     $   1,005,462     $     1,007,142     $     1,007,185  

Less average preferred stock

    (260,822     (269,071     (269,071     (269,071     (269,071     (266,291     (269,071

Less average goodwill

    (37,144     (37,144     (37,144     (37,144     (37,144     (37,144     (37,829

Less average other intangible assets

    (7,412     (8,110     (8,972     (9,788     (10,760     (8,159     (11,910
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average tangible common equity

  $ 695,441     $ 686,531     $ 704,774     $ 698,365     $ 688,487     $ 695,548     $ 688,375  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 11,096     $ 14,780     $ 8,558     $ 11,302     $ 16,949     $ 34,434     $ 46,407  

Less preferred stock dividends and impact of preferred stock redemption

    (7,277     (5,113     (5,113     (5,113     (5,112     (17,503     (15,338

Add amortization of intangible assets

    693       827       843       866       916       2,363       3,062  

Add impairment on intangible assets

    —         —         —         —         —         —         336  

Less tax effect on amortization and impairment of intangible assets

    (146     (174     (177     (303     (321     (496     (1,189
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common stockholders

  $ 4,366     $ 10,320     $ 4,111     $ 6,752     $ 12,432     $ 18,798     $ 33,278  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Return on average equity

    4.40     5.92     3.40     4.42     6.69     4.57     6.16

Return on average tangible common equity

    2.49     6.03     2.37     3.84     7.16     3.61     6.46

Statutory tax rate utilized for calculating tax effect on amortization and impairment of intangible assets

    21.00     21.00     21.00     35.00     35.00     21.00     35.00
    Three Months Ended     Nine Months Ended  
    September 30,
2018
    June 30,
2018
    March 31,
2018
    December 31,
2017
    September 30,
2017
    September 30,
2018
    September 30,
2017
 

Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships

             

Noninterest expense

  $ 60,977     $ 62,554     $ 59,812     $ 66,424     $ 79,008     $ 183,343     $ 301,839  

(Loss) gain on investments in alternative energy partnerships

    (2,484     (1,808     34       (3,995     (8,348     (4,258     (26,791
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest expense

  $ 58,493     $ 60,746     $ 59,846     $ 62,429     $ 70,660     $ 179,085     $ 275,048  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

  $ 71,322     $ 72,953     $ 71,624     $ 73,246     $ 75,953     $ 215,899     $ 237,996  

Noninterest income

    5,718       9,168       10,452       6,429       18,827       25,338       98,348  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    77,040       82,121       82,076       79,675       94,780       241,237       336,344  

Tax credit from investments in alternative energy partnerships

    412       1,912       7,323       4,908       8,777       9,647       33,287  

Deferred tax expense on investments in alternative energy partnerships

    (43     (211     (769     (859     (1,536     (1,023     (5,825

Tax effect on tax credit and deferred tax expense

    180       631       2,422       3,004       3,804       3,233       17,528  

(Loss) gain on investments in alternative energy partnerships

    (2,484     (1,808     34       (3,995     (8,348     (4,258     (26,791
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total pre-tax adjustments for investments in alternative energy partnerships

    (1,935     524       9,010       3,058       2,697       7,599       18,199  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted total revenue

  $ 75,105     $ 82,645     $ 91,086     $ 82,733     $ 97,477     $ 248,836     $ 354,543  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio

    79.15     76.17     72.87     83.37     83.36     76.00     89.74

Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships

    77.88     73.50     65.70     75.46     72.49     71.97     77.58

Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense

    32.81     27.07     26.98     42.59     34.44     27.27     38.96

 

13

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Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
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Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
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Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

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FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
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Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
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Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

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Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
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Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

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Financial Ratios
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