• |
Closed the sale of $1.95 billion of Civic loans in July which generated net proceeds of $1.91 billion. This sale increased our capital ratios and
liquidity and allowed us to reposition a portion of our securities portfolio in Q3 and pay down higher-cost brokered deposits and borrowings.
|
• |
Repositioned $742 million of available-for-sale securities resulting in a pre-tax loss of $60 million. Sold $742 million of securities with a weighted
average yield of 2.94% and purchased $724 million of securities with a weighted average yield of 5.65%. Expected to increase interest income by approximately $4.8 million per quarter.
|
• |
Net interest margin of 2.93%, an increase of 13 basis points from 2.80% in the second quarter, driven mainly by lower funding costs.
|
• |
Average total cost of deposits and average total cost of funds decreased by 6 basis points and 13 basis points, respectively, to 2.54% and 2.82%. The
declines in deposit and funding costs were driven mainly by the maturity of brokered time deposits (which decreased by $2.0 billion in the third quarter), while the $545 million payoff of Bank Term Funding Program borrowings also
contributed to the decline in funding costs.
|
• |
Average noninterest-bearing deposits increased to 28% of average total deposits for the third quarter, up from 27% in the second quarter.
|
• |
Achieved Q4 2024 cost targets ahead of schedule with total noninterest expense of $196.2 million for the third quarter, down $7.4 million, or 4%, from the second quarter.
|
• |
Strong capital ratios well above the regulatory “well capitalized” thresholds at September 30, 2024, including an estimated 16.98% Total risk-based capital ratio, 12.87% Tier 1 capital ratio, 10.45% CET1 capital ratio, and 9.83% Tier 1 leverage ratio.
|
• |
Book value per share increased to $17.75 and tangible book value per share(1) increased to $15.63.
|
(1) |
Non-GAAP measure; refer to section ‘Non-GAAP Measures’
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
Summary Income Statement
|
2024
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||
(In thousands) |
||||||||||||||||||||
Total interest income
|
$
|
446,893
|
$
|
462,589
|
$
|
446,084
|
$
|
1,388,186
|
$
|
1,503,760
|
||||||||||
Total interest expense
|
214,718
|
233,101
|
315,355
|
697,421
|
907,683
|
|||||||||||||||
Net interest income
|
232,175
|
229,488
|
130,729
|
690,765
|
596,077
|
|||||||||||||||
Provision for credit losses
|
9,000
|
11,000
|
-
|
30,000
|
5,000
|
|||||||||||||||
(Loss) gain on sale of loans
|
(62
|
)
|
1,135
|
(1,901
|
)
|
625
|
(157,820
|
)
|
||||||||||||
Loss on sale of securities
|
(59,946
|
)
|
-
|
-
|
(59,946
|
)
|
-
|
|||||||||||||
Other noninterest income
|
44,556
|
28,657
|
45,709
|
107,477
|
109,937
|
|||||||||||||||
Total noninterest (loss) income
|
(15,452
|
)
|
29,792
|
43,808
|
48,156
|
(47,883
|
)
|
|||||||||||||
Total revenue
|
216,723
|
259,280
|
174,537
|
738,921
|
548,194
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
1,376,736
|
|||||||||||||||
Acquisition, integration and reorganization costs
|
(510
|
)
|
(12,650
|
)
|
9,925
|
(13,160
|
)
|
30,833
|
||||||||||||
Other noninterest expense
|
196,719
|
216,293
|
191,178
|
623,530
|
686,974
|
|||||||||||||||
Total noninterest expense
|
196,209
|
203,643
|
201,103
|
610,370
|
2,094,543
|
|||||||||||||||
Earnings (loss) before income taxes
|
11,514
|
44,637
|
(26,566
|
)
|
98,551
|
(1,551,349
|
)
|
|||||||||||||
Income tax expense (benefit)
|
2,730
|
14,304
|
(3,222
|
)
|
28,582
|
(135,167
|
)
|
|||||||||||||
Net earnings (loss)
|
8,784
|
30,333
|
(23,344
|
)
|
69,969
|
(1,416,182
|
)
|
|||||||||||||
Preferred stock dividends
|
9,947
|
9,947
|
9,947
|
29,841
|
29,841
|
|||||||||||||||
Net (loss) earnings available to common and equivalent stockholders
|
$
|
(1,163
|
)
|
$
|
20,386
|
$
|
(33,291
|
)
|
$
|
40,128
|
$
|
(1,446,023
|
)
|
September 30,
|
June 30,
|
September 30,
|
Increase (Decrease)
|
|||||||||||||||||
Selected Balance Sheet Items
|
2024
|
2024
|
2023
|
QoQ
|
YoY
|
|||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents
|
$
|
2,554,227
|
$
|
2,698,810
|
$
|
6,069,667
|
$
|
(144,583
|
)
|
$
|
(3,515,440
|
)
|
||||||||
Securities available-for-sale
|
2,300,284
|
2,244,031
|
4,487,172
|
56,253
|
(2,186,888
|
)
|
||||||||||||||
Securities held-to-maturity
|
2,301,263
|
2,296,708
|
2,282,586
|
4,555
|
18,677
|
|||||||||||||||
Loans held for sale
|
28,639
|
1,935,455
|
188,866
|
(1,906,816
|
)
|
(160,227
|
)
|
|||||||||||||
Loans and leases held for investment, net of deferred fees
|
23,527,777
|
23,228,909
|
21,920,946
|
298,868
|
1,606,831
|
|||||||||||||||
Total assets
|
33,432,613
|
35,243,839
|
36,877,833
|
(1,811,226
|
)
|
(3,445,220
|
)
|
|||||||||||||
Noninterest-bearing deposits
|
$
|
7,811,796
|
$
|
7,825,007
|
$
|
5,579,033
|
$
|
(13,211
|
)
|
$
|
2,232,763
|
|||||||||
Total deposits
|
26,828,269
|
28,804,450
|
26,598,681
|
(1,976,181
|
)
|
229,588
|
||||||||||||||
Borrowings
|
1,591,833
|
1,440,875
|
6,294,525
|
150,958
|
(4,702,692
|
)
|
||||||||||||||
Total liabilities
|
29,936,415
|
31,835,991
|
34,478,556
|
(1,899,576
|
)
|
(4,542,141
|
)
|
|||||||||||||
Total stockholders’ equity
|
3,496,198
|
3,407,848
|
2,399,277
|
88,350
|
1,096,921
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
Composition of Loans and Leases
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||
Commercial
|
$
|
4,557,939
|
$
|
4,722,585
|
$
|
4,896,544
|
$
|
5,026,497
|
$
|
3,526,308
|
||||||||||
Multi-family
|
6,009,280
|
5,984,930
|
6,121,472
|
6,025,179
|
5,279,659
|
|||||||||||||||
Other residential
|
2,767,187
|
2,866,085
|
4,949,383
|
5,060,309
|
5,228,524
|
|||||||||||||||
Total real estate mortgage
|
13,334,406
|
13,573,600
|
15,967,399
|
16,111,985
|
14,034,491
|
|||||||||||||||
Real estate construction and land:
|
||||||||||||||||||||
Commercial
|
836,902
|
784,166
|
775,021
|
759,585
|
465,266
|
|||||||||||||||
Residential
|
2,622,507
|
2,573,431
|
2,470,333
|
2,399,684
|
2,272,271
|
|||||||||||||||
Total real estate construction and land
|
3,459,409
|
3,357,597
|
3,245,354
|
3,159,269
|
2,737,537
|
|||||||||||||||
Total real estate
|
16,793,815
|
16,931,197
|
19,212,753
|
19,271,254
|
16,772,028
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Asset-based
|
2,115,311
|
1,968,713
|
2,061,016
|
2,189,085
|
2,287,893
|
|||||||||||||||
Venture capital
|
1,353,626
|
1,456,122
|
1,513,641
|
1,446,362
|
1,464,160
|
|||||||||||||||
Other commercial
|
2,850,535
|
2,446,974
|
2,245,910
|
2,129,860
|
1,002,377
|
|||||||||||||||
Total commercial
|
6,319,472
|
5,871,809
|
5,820,567
|
5,765,307
|
4,754,430
|
|||||||||||||||
Consumer |
414,490
|
425,903
|
439,702
|
453,126
|
394,488
|
|||||||||||||||
Total loans and leases held for investment, net of deferred fees
|
$ |
23,527,777
|
$ |
23,228,909
|
$ |
25,473,022
|
$ |
25,489,687
|
$ |
21,920,946
|
||||||||||
Total unfunded loan commitments
|
$ |
5,008,449
|
$ |
5,256,473
|
$ |
5,482,672
|
$ |
5,578,907
|
$ |
5,289,221
|
Composition as % of Total
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||||||||
Loans and Leases
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
Real estate mortgage:
|
||||||||||||||||||||
Commercial
|
19
|
%
|
20
|
%
|
19
|
%
|
20
|
%
|
16
|
%
|
||||||||||
Multi-family
|
25
|
%
|
26
|
%
|
24
|
%
|
23
|
%
|
24
|
%
|
||||||||||
Other residential
|
12
|
%
|
12
|
%
|
19
|
%
|
20
|
%
|
24
|
%
|
||||||||||
Total real estate mortgage
|
56
|
%
|
58
|
%
|
62
|
%
|
63
|
%
|
64
|
%
|
||||||||||
Real estate construction and land:
|
||||||||||||||||||||
Commercial
|
4
|
%
|
4
|
%
|
3
|
%
|
3
|
%
|
2
|
%
|
||||||||||
Residential
|
11
|
%
|
11
|
%
|
10
|
%
|
9
|
%
|
10
|
%
|
||||||||||
Total real estate construction and land
|
15
|
%
|
15
|
%
|
13
|
%
|
12
|
%
|
12
|
%
|
||||||||||
Total real estate
|
71
|
%
|
73
|
%
|
75
|
%
|
75
|
%
|
76
|
%
|
||||||||||
Commercial:
|
||||||||||||||||||||
Asset-based
|
9
|
%
|
8
|
%
|
8
|
%
|
9
|
%
|
10
|
%
|
||||||||||
Venture capital
|
6
|
%
|
6
|
%
|
6
|
%
|
6
|
%
|
7
|
%
|
||||||||||
Other commercial
|
12
|
%
|
11
|
%
|
9
|
%
|
8
|
%
|
5
|
%
|
||||||||||
Total commercial
|
27
|
%
|
25
|
%
|
23
|
%
|
23
|
%
|
22
|
%
|
||||||||||
Consumer
|
2
|
%
|
2
|
%
|
2
|
%
|
2
|
%
|
2
|
%
|
||||||||||
Total loans and leases held for investment, net of deferred fees
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
Asset Quality Information and Ratios
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Delinquent loans and leases held for
|
||||||||||||||||||||
investment:
|
||||||||||||||||||||
30 to 89 days delinquent
|
$
|
52,927
|
$
|
27,962
|
$
|
178,421
|
$
|
113,307
|
$
|
49,970
|
||||||||||
90+ days delinquent
|
72,037
|
55,792
|
57,573
|
30,881
|
77,327
|
|||||||||||||||
Total delinquent loans and leases
|
$
|
124,964
|
$
|
83,754
|
$
|
235,994
|
$
|
144,188
|
$
|
127,297
|
||||||||||
Total delinquent loans and leases to loans and leases held for investment
|
0.53
|
%
|
0.36
|
%
|
0.93
|
%
|
0.57
|
%
|
0.58
|
%
|
||||||||||
Nonperforming assets, excluding loans held for sale:
|
||||||||||||||||||||
Nonaccrual loans and leases
|
$
|
168,341
|
$
|
117,070
|
$
|
145,785
|
$
|
62,527
|
$
|
125,396
|
||||||||||
90+ days delinquent loans and still accruing
|
-
|
-
|
-
|
11,750
|
-
|
|||||||||||||||
Total nonperforming loans and leases (“NPLs”)
|
168,341
|
117,070
|
145,785
|
74,277
|
125,396
|
|||||||||||||||
Foreclosed assets, net
|
8,661
|
13,302
|
12,488
|
7,394
|
6,829
|
|||||||||||||||
Total nonperforming assets (“NPAs”)
|
$
|
177,002
|
$
|
130,372
|
$
|
158,273
|
$
|
81,671
|
$
|
132,225
|
||||||||||
Classified loans and leases held for investment
|
$
|
533,591
|
$
|
415,498
|
$
|
366,729
|
$
|
228,417
|
$
|
211,095
|
||||||||||
Allowance for loan and lease losses
|
$
|
254,345
|
$
|
247,762
|
$
|
291,503
|
$
|
281,687
|
$
|
222,297
|
||||||||||
Allowance for loan and lease losses to NPLs
|
151.09
|
%
|
211.64
|
%
|
199.95
|
%
|
379.24
|
%
|
177.28
|
%
|
||||||||||
NPLs to loans and leases held for investment
|
0.72
|
%
|
0.50
|
%
|
0.57
|
%
|
0.29
|
%
|
0.57
|
%
|
||||||||||
NPAs to total assets
|
0.53
|
%
|
0.37
|
%
|
0.44
|
%
|
0.21
|
%
|
0.36
|
%
|
||||||||||
Classified loans and leases to loans and leases held for investment
|
2.27
|
%
|
1.79
|
%
|
1.44
|
%
|
0.90
|
%
|
0.96
|
%
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
Allowance for Credit Losses - Loans
|
2024
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Allowance for loan and lease losses
|
||||||||||||||||||||
(“ALLL”):
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
247,762
|
$
|
291,503
|
$
|
219,234
|
$
|
281,687
|
$
|
200,732
|
||||||||||
Charge-offs
|
(4,163
|
)
|
(58,070
|
)
|
(6,695
|
)
|
(67,247
|
)
|
(48,800
|
)
|
||||||||||
Recoveries
|
1,746
|
2,329
|
1,758
|
7,905
|
3,865
|
|||||||||||||||
Net charge-offs
|
(2,417
|
)
|
(55,741
|
)
|
(4,937
|
)
|
(59,342
|
)
|
(44,935
|
)
|
||||||||||
Provision for loan losses
|
9,000
|
12,000
|
8,000
|
32,000
|
66,500
|
|||||||||||||||
Balance at end of period
|
$
|
254,345
|
$
|
247,762
|
$
|
222,297
|
$
|
254,345
|
$
|
222,297
|
||||||||||
Reserve for unfunded loan commitments
|
||||||||||||||||||||
(“RUC”):
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
27,571
|
$
|
28,571
|
$
|
37,571
|
$
|
29,571
|
$
|
91,071
|
||||||||||
(Negative provision) provision for credit losses
|
-
|
(1,000
|
)
|
(8,000
|
)
|
(2,000
|
)
|
(61,500
|
)
|
|||||||||||
Balance at end of period
|
$
|
27,571
|
$
|
27,571
|
$
|
29,571
|
$
|
27,571
|
$
|
29,571
|
||||||||||
Allowance for credit losses (“ACL”) -
|
||||||||||||||||||||
Loans:
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
275,333
|
$
|
320,074
|
$
|
256,805
|
$
|
311,258
|
$
|
291,803
|
||||||||||
Charge-offs
|
(4,163
|
)
|
(58,070
|
)
|
(6,695
|
)
|
(67,247
|
)
|
(48,800
|
)
|
||||||||||
Recoveries
|
1,746
|
2,329
|
1,758
|
7,905
|
3,865
|
|||||||||||||||
Net charge-offs
|
(2,417
|
)
|
(55,741
|
)
|
(4,937
|
)
|
(59,342
|
)
|
(44,935
|
)
|
||||||||||
Provision for credit losses
|
9,000
|
11,000
|
-
|
30,000
|
5,000
|
|||||||||||||||
Balance at end of period
|
$
|
281,916
|
$
|
275,333
|
$
|
251,868
|
$
|
281,916
|
$
|
251,868
|
||||||||||
ALLL to loans and leases held for investment
|
1.08
|
%
|
1.07
|
%
|
1.01
|
%
|
1.08
|
%
|
1.01
|
%
|
||||||||||
ACL to loans and leases held for investment
|
1.20
|
%
|
1.19
|
%
|
1.15
|
%
|
1.20
|
%
|
1.15
|
%
|
||||||||||
ACL to NPLs
|
167.47
|
%
|
235.19
|
%
|
200.86
|
%
|
167.47
|
%
|
200.86
|
%
|
||||||||||
ACL to NPAs
|
159.27
|
%
|
211.19
|
%
|
190.48
|
%
|
159.27
|
%
|
190.48
|
%
|
||||||||||
Annualized net charge-offs to average loans and leases
|
0.04
|
%
|
0.89
|
%
|
0.09
|
%
|
0.32
|
%
|
0.23
|
%
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
Composition of Deposits
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Noninterest-bearing checking
|
$
|
7,811,796
|
$
|
7,825,007
|
$
|
7,833,608
|
$
|
7,774,254
|
$
|
5,579,033
|
||||||||||
Interest-bearing:
|
||||||||||||||||||||
Checking
|
7,539,899
|
7,309,833
|
7,836,097
|
7,808,764
|
7,038,808
|
|||||||||||||||
Money market
|
5,039,607
|
4,837,025
|
5,020,110
|
6,187,889
|
5,424,347
|
|||||||||||||||
Savings
|
1,992,364
|
2,040,461
|
2,016,398
|
1,997,989
|
1,441,700
|
|||||||||||||||
Time deposits:
|
||||||||||||||||||||
Non-brokered
|
2,451,340
|
2,758,067
|
2,761,836
|
3,139,270
|
3,038,005
|
|||||||||||||||
Brokered
|
1,993,263
|
4,034,057
|
3,424,358
|
3,493,603
|
4,076,788
|
|||||||||||||||
Total time deposits
|
4,444,603
|
6,792,124
|
6,186,194
|
6,632,873
|
7,114,793
|
|||||||||||||||
Total interest-bearing
|
19,016,473
|
20,979,443
|
21,058,799
|
22,627,515
|
21,019,648
|
|||||||||||||||
Total deposits
|
$
|
26,828,269
|
$
|
28,804,450
|
$
|
28,892,407
|
$
|
30,401,769
|
$
|
26,598,681
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
Composition as % of Total Deposits
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
Noninterest-bearing checking
|
29
|
%
|
27
|
%
|
27
|
%
|
26
|
%
|
21
|
%
|
||||||||||
Interest-bearing:
|
||||||||||||||||||||
Checking
|
28
|
%
|
25
|
%
|
27
|
%
|
26
|
%
|
27
|
%
|
||||||||||
Money market
|
19
|
%
|
17
|
%
|
17
|
%
|
20
|
%
|
20
|
%
|
||||||||||
Savings
|
7
|
%
|
7
|
%
|
7
|
%
|
6
|
%
|
5
|
%
|
||||||||||
Time deposits:
|
||||||||||||||||||||
Non-brokered
|
9
|
%
|
10
|
%
|
10
|
%
|
10
|
%
|
12
|
%
|
||||||||||
Brokered
|
8
|
%
|
14
|
%
|
12
|
%
|
12
|
%
|
15
|
%
|
||||||||||
Total time deposits
|
17
|
%
|
24
|
%
|
22
|
%
|
22
|
%
|
27
|
%
|
||||||||||
Total interest-bearing
|
71
|
%
|
73
|
%
|
73
|
%
|
74
|
%
|
79
|
%
|
||||||||||
Total deposits
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
(1) |
Non-GAAP measures; refer to section ‘Non-GAAP Measures’
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
Capital Ratios
|
2024 (1)
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
Banc of California, Inc.
|
||||||||||||||||||||
Total risk-based capital ratio
|
16.98
|
%
|
16.57
|
%
|
16.40
|
%
|
16.43
|
%
|
17.83
|
%
|
||||||||||
Tier 1 risk-based capital ratio
|
12.87
|
%
|
12.62
|
%
|
12.38
|
%
|
12.44
|
%
|
13.84
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
10.45
|
%
|
10.27
|
%
|
10.09
|
%
|
10.14
|
%
|
11.23
|
%
|
||||||||||
Tier 1 leverage capital ratio
|
9.83
|
%
|
9.51
|
%
|
9.12
|
%
|
9.00
|
%
|
8.65
|
%
|
||||||||||
Banc of California
|
||||||||||||||||||||
Total risk-based capital ratio
|
16.59
|
%
|
16.19
|
%
|
15.88
|
%
|
15.75
|
%
|
16.37
|
%
|
||||||||||
Tier 1 risk-based capital ratio
|
14.07
|
%
|
13.77
|
%
|
13.34
|
%
|
13.27
|
%
|
13.72
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
14.07
|
%
|
13.77
|
%
|
13.34
|
%
|
13.27
|
%
|
13.72
|
%
|
||||||||||
Tier 1 leverage capital ratio
|
10.74
|
%
|
10.38
|
%
|
9.84
|
%
|
9.62
|
%
|
8.57
|
%
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
|
||||||||||||||||||||
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2024
|
2024
|
2024
|
2023
|
2023
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||
Cash and due from banks
|
$
|
251,869
|
$
|
203,467
|
$
|
199,922
|
$
|
202,427
|
$
|
182,261
|
||||||||||
Interest-earning deposits in financial institutions
|
2,302,358
|
2,495,343
|
2,885,306
|
5,175,149
|
5,887,406
|
|||||||||||||||
Total cash and cash equivalents
|
2,554,227
|
2,698,810
|
3,085,228
|
5,377,576
|
6,069,667
|
|||||||||||||||
Securities available-for-sale
|
2,300,284
|
2,244,031
|
2,286,682
|
2,346,864
|
4,487,172
|
|||||||||||||||
Securities held-to-maturity
|
2,301,263
|
2,296,708
|
2,291,984
|
2,287,291
|
2,282,586
|
|||||||||||||||
FRB and FHLB stock
|
145,123
|
132,380
|
129,314
|
126,346
|
17,250
|
|||||||||||||||
Total investment securities
|
4,746,670
|
4,673,119
|
4,707,980
|
4,760,501
|
6,787,008
|
|||||||||||||||
Loans held for sale
|
28,639
|
1,935,455
|
80,752
|
122,757
|
188,866
|
|||||||||||||||
Gross loans and leases held for investment
|
23,553,534
|
23,255,297
|
25,517,028
|
25,534,730
|
21,969,789
|
|||||||||||||||
Deferred fees, net
|
(25,757
|
)
|
(26,388
|
)
|
(44,006
|
)
|
(45,043
|
)
|
(48,843
|
)
|
||||||||||
Total loans and leases held for investment, net of deferred fees
|
23,527,777
|
23,228,909
|
25,473,022
|
25,489,687
|
21,920,946
|
|||||||||||||||
Allowance for loan and lease losses
|
(254,345
|
)
|
(247,762
|
)
|
(291,503
|
)
|
(281,687
|
)
|
(222,297
|
)
|
||||||||||
Total loans and leases held for investment, net
|
23,273,432
|
22,981,147
|
25,181,519
|
25,208,000
|
21,698,649
|
|||||||||||||||
Equipment leased to others under operating leases
|
314,998
|
335,968
|
339,925
|
344,325
|
352,330
|
|||||||||||||||
Premises and equipment, net
|
143,200
|
145,734
|
144,912
|
146,798
|
50,236
|
|||||||||||||||
Bank owned life insurance
|
343,212
|
341,779
|
341,806
|
339,643
|
207,946
|
|||||||||||||||
Goodwill
|
216,770
|
215,925
|
198,627
|
198,627
|
-
|
|||||||||||||||
Intangible assets, net
|
140,562
|
148,894
|
157,226
|
165,477
|
24,192
|
|||||||||||||||
Deferred tax asset, net
|
706,849
|
738,534
|
741,158
|
739,111
|
506,248
|
|||||||||||||||
Other assets
|
964,054
|
1,028,474
|
1,094,383
|
1,131,249
|
992,691
|
|||||||||||||||
Total assets
|
$
|
33,432,613
|
$
|
35,243,839
|
$
|
36,073,516
|
$
|
38,534,064
|
$
|
36,877,833
|
||||||||||
LIABILITIES:
|
||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
7,811,796
|
$
|
7,825,007
|
$
|
7,833,608
|
$
|
7,774,254
|
$
|
5,579,033
|
||||||||||
Interest-bearing deposits
|
19,016,473
|
20,979,443
|
21,058,799
|
22,627,515
|
21,019,648
|
|||||||||||||||
Total deposits
|
26,828,269
|
28,804,450
|
28,892,407
|
30,401,769
|
26,598,681
|
|||||||||||||||
Borrowings
|
1,591,833
|
1,440,875
|
2,139,498
|
2,911,322
|
6,294,525
|
|||||||||||||||
Subordinated debt
|
942,151
|
939,287
|
937,717
|
936,599
|
870,896
|
|||||||||||||||
Accrued interest payable and other liabilities
|
574,162
|
651,379
|
709,744
|
893,609
|
714,454
|
|||||||||||||||
Total liabilities
|
29,936,415
|
31,835,991
|
32,679,366
|
35,143,299
|
34,478,556
|
|||||||||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||||||||||||||
Preferred stock
|
498,516
|
498,516
|
498,516
|
498,516
|
498,516
|
|||||||||||||||
Common stock
|
1,586
|
1,583
|
1,583
|
1,577
|
1,231
|
|||||||||||||||
Class B non-voting common stock
|
5
|
5
|
5
|
5
|
-
|
|||||||||||||||
Non-voting common stock equivalents
|
98
|
101
|
101
|
108
|
-
|
|||||||||||||||
Additional paid-in-capital
|
3,802,314
|
3,813,312
|
3,827,777
|
3,840,974
|
2,798,611
|
|||||||||||||||
Retained deficit
|
(478,173
|
)
|
(477,010
|
)
|
(497,396
|
)
|
(518,301
|
)
|
(25,399
|
)
|
||||||||||
Accumulated other comprehensive loss, net
|
(328,148
|
)
|
(428,659
|
)
|
(436,436
|
)
|
(432,114
|
)
|
(873,682
|
)
|
||||||||||
Total stockholders’ equity
|
3,496,198
|
3,407,848
|
3,394,150
|
3,390,765
|
2,399,277
|
|||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
33,432,613
|
$
|
35,243,839
|
$
|
36,073,516
|
$
|
38,534,064
|
$
|
36,877,833
|
||||||||||
Common shares outstanding (1)
|
168,879,566
|
168,875,712
|
169,013,629
|
168,959,063
|
78,806,969
|
(1)
|
Common shares outstanding include non-voting common equivalents that are participating securities.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
|
||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2024
|
2024
|
2023
|
2024
|
2023
|
||||||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||||||
Interest income:
|
||||||||||||||||||||
Loans and leases
|
$
|
369,913
|
$
|
388,853
|
$
|
310,392
|
$
|
1,144,231
|
$
|
1,150,049
|
||||||||||
Investment securities
|
34,912
|
33,836
|
45,326
|
103,051
|
133,716
|
|||||||||||||||
Deposits in financial institutions
|
42,068
|
39,900
|
90,366
|
140,904
|
219,995
|
|||||||||||||||
Total interest income
|
446,893
|
462,589
|
446,084
|
1,388,186
|
1,503,760
|
|||||||||||||||
Interest expense:
|
||||||||||||||||||||
Deposits
|
180,986
|
186,106
|
205,982
|
561,899
|
540,663
|
|||||||||||||||
Borrowings
|
16,970
|
30,311
|
94,234
|
85,405
|
324,270
|
|||||||||||||||
Subordinated debt
|
16,762
|
16,684
|
15,139
|
50,117
|
42,750
|
|||||||||||||||
Total interest expense
|
214,718
|
233,101
|
315,355
|
697,421
|
907,683
|
|||||||||||||||
Net interest income
|
232,175
|
229,488
|
130,729
|
690,765
|
596,077
|
|||||||||||||||
Provision for credit losses
|
9,000
|
11,000
|
-
|
30,000
|
5,000
|
|||||||||||||||
Net interest income after provision for credit losses
|
223,175
|
218,488
|
130,729
|
660,765
|
591,077
|
|||||||||||||||
Noninterest income:
|
||||||||||||||||||||
Service charges on deposit accounts
|
4,568
|
4,540
|
4,018
|
13,813
|
11,906
|
|||||||||||||||
Other commissions and fees
|
8,256
|
8,629
|
7,641
|
25,027
|
29,226
|
|||||||||||||||
Leased equipment income
|
17,176
|
11,487
|
14,554
|
40,379
|
50,798
|
|||||||||||||||
(Loss) gain on sale of loans and leases
|
(62
|
)
|
1,135
|
(1,901
|
)
|
625
|
(157,820
|
)
|
||||||||||||
Loss on sale of securities
|
(59,946
|
)
|
-
|
-
|
(59,946
|
)
|
-
|
|||||||||||||
Dividends and gains on equity investments
|
3,730
|
1,166
|
3,837
|
7,964
|
7,593
|
|||||||||||||||
Warrant income (loss)
|
211
|
(324
|
)
|
(88
|
)
|
65
|
(545
|
)
|
||||||||||||
LOCOM HFS adjustment
|
(74
|
)
|
(38
|
)
|
307
|
218
|
(11,636
|
)
|
||||||||||||
Other income
|
10,689
|
3,197
|
15,440
|
20,011
|
22,595
|
|||||||||||||||
Total noninterest (loss) income
|
(15,452
|
)
|
29,792
|
43,808
|
48,156
|
(47,883
|
)
|
|||||||||||||
Noninterest expense:
|
||||||||||||||||||||
Compensation
|
85,585
|
85,914
|
71,642
|
263,735
|
242,999
|
|||||||||||||||
Occupancy
|
16,892
|
17,455
|
15,293
|
52,315
|
45,743
|
|||||||||||||||
Information technology and data processing
|
14,995
|
15,459
|
12,840
|
45,872
|
38,706
|
|||||||||||||||
Other professional services
|
5,101
|
5,183
|
5,597
|
15,359
|
21,643
|
|||||||||||||||
Insurance and assessments
|
12,708
|
26,431
|
38,298
|
59,600
|
75,650
|
|||||||||||||||
Intangible asset amortization
|
8,485
|
8,484
|
2,389
|
25,373
|
7,189
|
|||||||||||||||
Leased equipment depreciation
|
7,144
|
7,511
|
8,333
|
22,175
|
26,796
|
|||||||||||||||
Acquisition, integration and reorganization costs
|
(510
|
)
|
(12,650
|
)
|
9,925
|
(13,160
|
)
|
30,833
|
||||||||||||
Customer related expense
|
34,475
|
32,405
|
26,971
|
97,799
|
78,278
|
|||||||||||||||
Loan expense
|
3,994
|
4,332
|
4,243
|
12,817
|
16,012
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
1,376,736
|
|||||||||||||||
Other expense
|
7,340
|
13,119
|
5,572
|
28,485
|
133,958
|
|||||||||||||||
Total noninterest expense
|
196,209
|
203,643
|
201,103
|
610,370
|
2,094,543
|
|||||||||||||||
Earnings (loss) before income taxes
|
11,514
|
44,637
|
(26,566
|
)
|
98,551
|
(1,551,349
|
)
|
|||||||||||||
Income tax expense (benefit)
|
2,730
|
14,304
|
(3,222
|
)
|
28,582
|
(135,167
|
)
|
|||||||||||||
Net earnings (loss)
|
8,784
|
30,333
|
(23,344
|
)
|
69,969
|
(1,416,182
|
)
|
|||||||||||||
Preferred stock dividends
|
9,947
|
9,947
|
9,947
|
29,841
|
29,841
|
|||||||||||||||
Net (loss) earnings available to common and equivalent stockholders
|
$
|
(1,163
|
)
|
$
|
20,386
|
$
|
(33,291
|
)
|
$
|
40,128
|
$
|
(1,446,023
|
)
|
|||||||
Basic and diluted (loss) earnings per common share (1)
|
$
|
(0.01
|
)
|
$
|
0.12
|
$
|
(0.42
|
)
|
$
|
0.24
|
$
|
(18.61
|
)
|
|||||||
Basic and diluted weighted average number of common shares outstanding (1)
|
168,583
|
168,432
|
77,881
|
168,386
|
77,678
|
(1)
|
Common shares include non-voting common equivalents that are participating securities.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||
SELECTED FINANCIAL DATA
|
||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||
Three Months Ended
|
Nine Months Ended | |||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
Profitability and Other Ratios
|
2024
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||
Return on average assets (1)
|
0.10
|
%
|
0.34
|
%
|
(0.24
|
)%
|
0.26
|
%
|
(4.60
|
)%
|
||||||||||
Adjusted ROAA (1)(2)
|
0.59
|
%
|
0.34
|
%
|
(0.16
|
)%
|
0.41
|
%
|
0.40
|
%
|
||||||||||
Return on average equity (1)
|
1.01
|
%
|
3.59
|
%
|
(3.73
|
)%
|
2.74
|
%
|
(61.86
|
)%
|
||||||||||
Return on average tangible common equity (1)(2)
|
0.70
|
%
|
4.42
|
%
|
(6.47
|
)%
|
3.13
|
%
|
(11.66
|
)%
|
||||||||||
Adjusted return on average tangible common equity (1)(2)
|
7.30
|
%
|
4.42
|
%
|
(4.64
|
)%
|
5.12
|
%
|
6.31
|
%
|
||||||||||
Dividend payout ratio (3)
|
(1000.00
|
)%
|
83.33
|
%
|
(2.38
|
)%
|
125.00
|
%
|
(1.45
|
)%
|
||||||||||
Average yield on loans and leases (1)
|
6.18
|
%
|
6.18
|
%
|
5.54
|
%
|
6.14
|
%
|
5.95
|
%
|
||||||||||
Average yield on interest-earning assets (1)
|
5.63
|
%
|
5.65
|
%
|
4.94
|
%
|
5.61
|
%
|
5.20
|
%
|
||||||||||
Average cost of interest-bearing deposits (1)
|
3.52
|
%
|
3.58
|
%
|
3.78
|
%
|
3.57
|
%
|
3.35
|
%
|
||||||||||
Average total cost of deposits (1)
|
2.54
|
%
|
2.60
|
%
|
2.98
|
%
|
2.60
|
%
|
2.50
|
%
|
||||||||||
Average cost of interest-bearing liabilities (1)
|
3.80
|
%
|
3.93
|
%
|
4.34
|
%
|
3.89
|
%
|
4.03
|
%
|
||||||||||
Average total cost of funds (1)
|
2.82
|
%
|
2.95
|
%
|
3.61
|
%
|
2.93
|
%
|
3.24
|
%
|
||||||||||
Net interest spread
|
1.83
|
%
|
1.72
|
%
|
0.60
|
%
|
1.72
|
%
|
1.17
|
%
|
||||||||||
Net interest margin (1)
|
2.93
|
%
|
2.80
|
%
|
1.45
|
%
|
2.79
|
%
|
2.07
|
%
|
||||||||||
Noninterest income to total revenue (4)
|
(7.13
|
)%
|
11.49
|
%
|
25.10
|
%
|
6.52
|
%
|
(8.73
|
)%
|
||||||||||
Noninterest expense to average total assets (1)
|
2.27
|
%
|
2.29
|
%
|
2.11
|
%
|
2.27
|
%
|
6.80
|
%
|
||||||||||
Loans to deposits ratio
|
87.80
|
%
|
87.36
|
%
|
83.12
|
%
|
87.80
|
%
|
83.12
|
%
|
||||||||||
Average loans and leases to average deposits
|
84.05
|
%
|
87.95
|
%
|
81.03
|
%
|
86.22
|
%
|
89.61
|
%
|
||||||||||
Average investment securities to average total assets
|
13.55
|
%
|
13.00
|
%
|
18.30
|
%
|
13.03
|
%
|
17.23
|
%
|
||||||||||
Average stockholders’ equity to average total assets
|
10.03
|
%
|
9.48
|
%
|
6.56
|
%
|
9.50
|
%
|
7.43
|
%
|
(1)
|
Annualized.
|
(2)
|
Non-GAAP measure.
|
(3)
|
Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.
|
(4)
|
Total revenue equals the sum of net interest income and noninterest income.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||||||||||||||||||
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
|
||||||||||||||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||||||||||||
September 30, 2024
|
June 30, 2024
|
September 30, 2023
|
||||||||||||||||||||||||||||||||||
Interest
|
Average
|
Interest
|
Average
|
Interest
|
Average
|
|||||||||||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
||||||||||||||||||||||||||||
Balance
|
Expense
|
Cost
|
Balance
|
Expense
|
Cost
|
Balance
|
Expense
|
Cost
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Loans and leases (1)
|
$
|
23,803,691
|
$
|
369,913
|
6.18
|
%
|
$
|
25,325,578
|
$
|
388,853
|
6.18
|
%
|
$
|
22,226,390
|
$
|
310,392
|
5.54
|
%
|
||||||||||||||||||
Investment securities
|
4,665,549
|
34,912
|
2.98
|
%
|
4,658,690
|
33,836
|
2.92
|
%
|
6,919,948
|
45,326
|
2.60
|
%
|
||||||||||||||||||||||||
Deposits in financial institutions
|
3,106,227
|
42,068
|
5.39
|
%
|
2,960,292
|
39,900
|
5.42
|
%
|
6,645,335
|
90,366
|
5.40
|
%
|
||||||||||||||||||||||||
Total interest-earning assets
|
31,575,467
|
446,893
|
5.63
|
%
|
32,944,560
|
462,589
|
5.65
|
%
|
35,791,673
|
446,084
|
4.94
|
%
|
||||||||||||||||||||||||
Other assets
|
2,850,718
|
2,889,907
|
2,016,085
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
34,426,185
|
$
|
35,834,467
|
$
|
37,807,758
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||||||||||||||
Interest checking
|
$
|
7,644,515
|
61,880
|
3.22
|
%
|
$
|
7,673,902
|
61,076
|
3.20
|
%
|
$
|
6,983,013
|
57,237
|
3.25
|
%
|
|||||||||||||||||||||
Money market
|
4,958,777
|
32,361
|
2.60
|
%
|
4,962,567
|
32,776
|
2.66
|
%
|
5,662,980
|
42,516
|
2.98
|
%
|
||||||||||||||||||||||||
Savings
|
2,028,931
|
17,140
|
3.36
|
%
|
2,002,670
|
16,996
|
3.41
|
%
|
1,163,827
|
10,255
|
3.50
|
%
|
||||||||||||||||||||||||
Time
|
5,841,965
|
69,605
|
4.74
|
%
|
6,274,242
|
75,258
|
4.82
|
%
|
7,801,880
|
95,974
|
4.88
|
%
|
||||||||||||||||||||||||
Total interest-bearing deposits
|
20,474,188
|
180,986
|
3.52
|
%
|
20,913,381
|
186,106
|
3.58
|
%
|
21,611,700
|
205,982
|
3.78
|
%
|
||||||||||||||||||||||||
Borrowings
|
1,063,541
|
16,970
|
6.35
|
%
|
2,013,600
|
30,311
|
6.05
|
%
|
6,325,537
|
94,234
|
5.91
|
%
|
||||||||||||||||||||||||
Subordinated debt
|
940,480
|
16,762
|
7.09
|
%
|
938,367
|
16,684
|
7.15
|
%
|
870,968
|
15,139
|
6.90
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
22,478,209
|
214,718
|
3.80
|
%
|
23,865,348
|
233,101
|
3.93
|
%
|
28,808,205
|
315,355
|
4.34
|
%
|
||||||||||||||||||||||||
Noninterest-bearing demand deposits
|
7,846,641
|
7,881,620
|
5,817,488
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
648,760
|
692,149
|
701,355
|
|||||||||||||||||||||||||||||||||
Total liabilities
|
30,973,610
|
32,439,117
|
35,327,048
|
|||||||||||||||||||||||||||||||||
Stockholders’ equity
|
3,452,575
|
3,395,350
|
2,480,710
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
34,426,185
|
$
|
35,834,467
|
$
|
37,807,758
|
||||||||||||||||||||||||||||||
Net interest income (1)
|
$
|
232,175
|
$
|
229,488
|
$
|
130,729
|
||||||||||||||||||||||||||||||
Net interest spread
|
1.83
|
%
|
1.72
|
%
|
0.60
|
%
|
||||||||||||||||||||||||||||||
Net interest margin
|
2.93
|
%
|
2.80
|
%
|
1.45
|
%
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total deposits (2)
|
$
|
28,320,829
|
$
|
180,986
|
2.54
|
%
|
$
|
28,795,001
|
$
|
186,106
|
2.60
|
%
|
$
|
27,429,188
|
$
|
205,982
|
2.98
|
%
|
||||||||||||||||||
Total funds (3)
|
$
|
30,324,850
|
$
|
214,718
|
2.82
|
%
|
$
|
31,746,968
|
$
|
233,101
|
2.95
|
%
|
$
|
34,625,693
|
$
|
315,355
|
3.61
|
%
|
(1)
|
Includes net loan discount accretion of $23.0 million and $21.8 million for the three months ended September 30, 2024 and June 30, 2024 and net loan
premium amortization of $1.7 million for the three months ended September 30, 2023.
|
(2)
|
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as
annualized interest expense on total deposits divided by average total deposits.
|
(3)
|
Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized
total interest expense divided by average total funds.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||||||
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
|
||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||
Nine Months Ended
|
||||||||||||||||||||||||
September 30, 2024
|
September 30, 2023
|
|||||||||||||||||||||||
Interest
|
Average
|
Interest
|
Average
|
|||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Cost
|
Balance
|
Expense
|
Cost
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Loans and leases (1)(2)(3)
|
$
|
24,878,682
|
$
|
1,144,231
|
6.14
|
%
|
$
|
25,910,694
|
$
|
1,152,393
|
5.95
|
%
|
||||||||||||
Investment securities
|
4,681,872
|
103,051
|
2.94
|
%
|
7,097,438
|
133,716
|
2.52
|
%
|
||||||||||||||||
Deposits in financial institutions
|
3,479,130
|
140,904
|
5.41
|
%
|
5,731,733
|
219,995
|
5.13
|
%
|
||||||||||||||||
Total interest-earning assets (1)
|
33,039,684
|
1,388,186
|
5.61
|
%
|
38,739,865
|
1,506,104
|
5.20
|
%
|
||||||||||||||||
Other assets
|
2,888,600
|
2,447,563
|
||||||||||||||||||||||
Total assets
|
$
|
35,928,284
|
$
|
41,187,428
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest checking
|
$
|
7,733,588
|
184,505
|
3.19
|
%
|
$
|
6,890,661
|
159,992
|
3.10
|
%
|
||||||||||||||
Money market
|
5,218,774
|
106,488
|
2.73
|
%
|
7,049,910
|
145,748
|
2.76
|
%
|
||||||||||||||||
Savings
|
2,022,600
|
52,166
|
3.45
|
%
|
833,719
|
14,532
|
2.33
|
%
|
||||||||||||||||
Time
|
6,073,993
|
218,740
|
4.81
|
%
|
6,815,786
|
220,391
|
4.32
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
21,048,955
|
561,899
|
3.57
|
%
|
21,590,076
|
540,663
|
3.35
|
%
|
||||||||||||||||
Borrowings
|
1,986,468
|
85,405
|
5.74
|
%
|
7,688,698
|
324,270
|
5.64
|
%
|
||||||||||||||||
Subordinated debt
|
938,624
|
50,117
|
7.13
|
%
|
869,353
|
42,750
|
6.57
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
23,974,047
|
697,421
|
3.89
|
%
|
30,148,127
|
907,683
|
4.03
|
%
|
||||||||||||||||
Noninterest-bearing demand deposits
|
7,804,534
|
7,323,673
|
||||||||||||||||||||||
Other liabilities
|
736,739
|
654,932
|
||||||||||||||||||||||
Total liabilities
|
32,515,320
|
38,126,732
|
||||||||||||||||||||||
Stockholders’ equity
|
3,412,964
|
3,060,696
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
35,928,284
|
$
|
41,187,428
|
||||||||||||||||||||
Net interest income (1)(2)
|
$
|
690,765
|
$
|
598,421
|
||||||||||||||||||||
Net interest spread (1)
|
1.72
|
%
|
1.17
|
%
|
||||||||||||||||||||
Net interest margin (1)
|
2.79
|
%
|
2.07
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Total deposits (4)
|
$
|
28,853,489
|
$
|
561,899
|
2.60
|
%
|
$
|
28,913,749
|
$
|
540,663
|
2.50
|
%
|
||||||||||||
Total funds (5)
|
$
|
31,778,581
|
$
|
697,421
|
2.93
|
%
|
$
|
37,471,800
|
$
|
907,683
|
3.24
|
%
|
(1)
|
Tax equivalent.
|
(2)
|
Includes net loan discount accretion of $67.3 million for the nine months ended September 30, 2024 and net loan premium amortization of $6.0 million for the
nine months ended September 30, 2023.
|
(3)
|
Includes tax-equivalent adjustments of $0.0 million and $2.3 million for the nine months ended September 30, 2024 and 2023 related to tax-exempt income on loans. The federal statutory tax rate utilized was 21%. |
(4)
|
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized
interest expense on total deposits divided by average total deposits.
|
(5)
|
Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized
total interest expense divided by average total funds.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||
NON-GAAP MEASURES
|
||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||
Tangible Common Equity to
|
||||||||||||||||||||
Tangible Assets and Tangible
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||||||||
Book Value Per Common Share
|
2024
|
2024
|
2024
|
2023
|
2023
|
|||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
Stockholders’ equity
|
$
|
3,496,198
|
$
|
3,407,848
|
$
|
3,394,150
|
$
|
3,390,765
|
$
|
2,399,277
|
||||||||||
Less: Preferred stock
|
498,516
|
498,516
|
498,516
|
498,516
|
498,516
|
|||||||||||||||
Total common equity
|
2,997,682
|
2,909,332
|
2,895,634
|
2,892,249
|
1,900,761
|
|||||||||||||||
Less: Goodwill and Intangible assets
|
357,332
|
364,819
|
355,853
|
364,104
|
24,192
|
|||||||||||||||
Tangible common equity
|
$
|
2,640,350
|
$
|
2,544,513
|
$
|
2,539,781
|
$
|
2,528,145
|
$
|
1,876,569
|
||||||||||
Total assets
|
$
|
33,432,613
|
$
|
35,243,839
|
$
|
36,073,516
|
$
|
38,534,064
|
$
|
36,877,833
|
||||||||||
Less: Goodwill and Intangible assets
|
357,332
|
364,819
|
355,853
|
364,104
|
24,192
|
|||||||||||||||
Tangible assets
|
$
|
33,075,281
|
$
|
34,879,020
|
$
|
35,717,663
|
$
|
38,169,960
|
$
|
36,853,641
|
||||||||||
Total stockholders’ equity to total assets
|
10.46
|
%
|
9.67
|
%
|
9.41
|
%
|
8.80
|
%
|
6.51
|
%
|
||||||||||
Tangible common equity to tangible assets
|
7.98
|
%
|
7.30
|
%
|
7.11
|
%
|
6.62
|
%
|
5.09
|
%
|
||||||||||
Book value per common share (1)
|
$
|
17.75
|
$
|
17.23
|
$
|
17.13
|
$
|
17.12
|
$
|
24.12
|
||||||||||
Tangible book value per common share (2)
|
$
|
15.63
|
$
|
15.07
|
$
|
15.03
|
$
|
14.96
|
$
|
23.81
|
||||||||||
Common shares outstanding (3)
|
168,879,566
|
168,875,712
|
169,013,629
|
168,959,063
|
78,806,969
|
(1)
|
Total common equity divided by common shares outstanding.
|
(2)
|
Tangible common equity divided by common shares outstanding.
|
(3)
|
Common shares outstanding include non-voting common equivalents that are participating securities.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||||||
NON-GAAP MEASURES
|
||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
Return on Average Tangible
|
September 30,
|
June 30,
|
September 30,
|
September 30,
|
||||||||||||||||
Common Equity (“ROATCE”)
|
2024
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Net earnings (loss)
|
$
|
8,784
|
$
|
30,333
|
$
|
(23,344
|
)
|
$
|
69,969
|
$
|
(1,416,182
|
)
|
||||||||
Earnings (loss) before income taxes
|
$
|
11,514
|
$
|
44,637
|
$
|
(26,566
|
)
|
$
|
98,551
|
$
|
(1,551,349
|
)
|
||||||||
Add: Intangible asset amortization
|
8,485
|
8,484
|
2,389
|
25,373
|
7,189
|
|||||||||||||||
Add: Goodwill impairment
|
-
|
-
|
-
|
-
|
1,376,736
|
|||||||||||||||
Adjusted earnings (loss before income taxes used for ROATCE
|
19,999
|
53,121
|
(24,177
|
)
|
123,924
|
(167,424
|
)
|
|||||||||||||
Adjusted income tax expense (benefit) (1)
|
5,522
|
15,203
|
(2,212
|
)
|
34,215
|
(15,319
|
)
|
|||||||||||||
Adjusted net earnings (loss) for ROATCE
|
14,477
|
37,918
|
(21,965
|
)
|
89,709
|
(152,105
|
)
|
|||||||||||||
Less: Preferred stock dividends
|
9,947
|
9,947
|
9,947
|
29,841
|
29,841
|
|||||||||||||||
Adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE
|
$
|
4,530
|
$
|
27,971
|
$
|
(31,912
|
)
|
$
|
59,868
|
$
|
(181,946
|
)
|
||||||||
Average stockholders’ equity
|
$
|
3,452,575
|
$
|
3,395,350
|
$
|
2,480,710
|
$
|
3,412,964
|
$
|
3,060,696
|
||||||||||
Less: Average goodwill and intangible assets
|
361,316
|
352,934
|
25,499
|
358,321
|
476,721
|
|||||||||||||||
Less: Average preferred stock
|
498,516
|
498,516
|
498,516
|
498,516
|
498,516
|
|||||||||||||||
Average tangible common equity
|
$
|
2,592,743
|
$
|
2,543,900
|
$
|
1,956,695
|
$
|
2,556,127
|
$
|
2,085,459
|
||||||||||
Return on average equity (2)
|
1.01
|
%
|
3.59
|
%
|
(3.73
|
)%
|
2.74
|
%
|
(61.86
|
)%
|
||||||||||
ROATCE (3)
|
0.70
|
%
|
4.42
|
%
|
(6.47
|
)%
|
3.13
|
%
|
(11.66
|
)%
|
(1)
|
Effective tax rates of 27.61%, 28.62%, and 9.15% used for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
Effective tax rates of 27.61% and 9.15% used for the nine months ended September 30, 2024 and 2023.
|
(2)
|
Annualized net earnings (loss) divided by average stockholders’ equity.
|
(3)
|
Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.
|
(4)
|
Annualized adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||
NON-GAAP MEASURES
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Adjusted Return on Average
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
Tangible Common Equity (“ROATCE”)
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net earnings (loss)
|
$
|
8,784
|
$
|
(23,344
|
)
|
$
|
69,969
|
$
|
(1,416,182
|
)
|
||||||
Earnings (loss) before income taxes
|
$
|
11,514
|
$
|
(26,566
|
)
|
$
|
98,551
|
$
|
(1,551,349
|
)
|
||||||
Add: Intangible asset amortization
|
8,485
|
2,389
|
25,373
|
7,189
|
||||||||||||
Add: Goodwill impairment
|
-
|
-
|
-
|
1,376,736
|
||||||||||||
Add: FDIC special assessment
|
-
|
-
|
5,816
|
-
|
||||||||||||
Add: Loss on sale of securities
|
59,946
|
-
|
59,946
|
-
|
||||||||||||
Less: Acquisition, integration, and reorganization costs
|
(510
|
)
|
9,925
|
(13,160
|
)
|
30,833
|
||||||||||
Add: Loan fair value loss adjustments
|
-
|
-
|
-
|
170,971
|
||||||||||||
Add: Unfunded commitments fair value loss adjustments
|
-
|
-
|
-
|
106,767
|
||||||||||||
Adjusted earnings before income taxes used for adjusted ROATCE
|
79,435
|
(14,252
|
)
|
176,526
|
141,147
|
|||||||||||
Adjusted income tax expense (1)
|
21,932
|
(1,304
|
)
|
48,739
|
12,915
|
|||||||||||
Adjusted net earnings for adjusted ROATCE
|
57,503
|
(12,948
|
)
|
127,787
|
128,232
|
|||||||||||
Less: Preferred stock dividends
|
9,947
|
9,947
|
29,841
|
29,841
|
||||||||||||
Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE
|
$
|
47,556
|
$
|
(22,895
|
)
|
$
|
97,946
|
$
|
98,391
|
|||||||
Average stockholders’ equity
|
$
|
3,452,575
|
$
|
2,480,710
|
$
|
3,412,964
|
$
|
3,060,696
|
||||||||
Less: Average goodwill and intangible assets
|
361,316
|
25,499
|
358,321
|
476,721
|
||||||||||||
Less: Average preferred stock
|
498,516
|
498,516
|
498,516
|
498,516
|
||||||||||||
Average tangible common equity
|
$
|
2,592,743
|
$
|
1,956,695
|
$
|
2,556,127
|
$
|
2,085,459
|
||||||||
Adjusted ROATCE (2)
|
7.30
|
%
|
(4.64
|
)%
|
5.12
|
%
|
6.31
|
%
|
(1)
|
Effective tax rates of 27.61% used for the 2024 periods and 9.15% for the 2023 periods.
|
(2)
|
Annualized adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.
|
BANC OF CALIFORNIA, INC.
|
||||||||||||||||
NON-GAAP MEASURES
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
Adjusted Net Earnings, Net Earnings
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
Available to Common and Equivalent
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
Stockholders, Diluted EPS, and ROAA
|
2024
|
2023
|
2024
|
2023
|
||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Net earnings (loss)
|
$
|
8,784
|
$
|
(23,344
|
)
|
$
|
69,969
|
$
|
(1,416,182
|
)
|
||||||
Earnings (loss) before income taxes
|
$
|
11,514
|
$
|
(26,566
|
)
|
$
|
98,551
|
$
|
(1,551,349
|
)
|
||||||
Add: FDIC special assessment
|
-
|
-
|
5,816
|
-
|
||||||||||||
Add: Loss on sale of securities
|
59,946
|
-
|
59,946
|
-
|
||||||||||||
Less: Acquisition, integration, and reorganization costs
|
(510
|
)
|
9,925
|
(13,160
|
)
|
30,833
|
||||||||||
Add: Loan fair value loss adjustments
|
-
|
-
|
-
|
170,971
|
||||||||||||
Add: Unfunded commitments fair value loss adjustments
|
-
|
-
|
-
|
106,767
|
||||||||||||
Add: Goodwill impairment
|
-
|
-
|
-
|
1,376,736
|
||||||||||||
Adjusted earnings (loss) before income taxes
|
70,950
|
(16,641
|
)
|
151,153
|
133,958
|
|||||||||||
Adjusted income tax expense (benefit) (1)
|
19,589
|
(1,523
|
)
|
41,733
|
12,257
|
|||||||||||
Adjusted net earnings (loss)
|
51,361
|
(15,118
|
)
|
109,420
|
121,701
|
|||||||||||
Less: Preferred stock dividends
|
(9,947
|
)
|
(9,947
|
)
|
(29,841
|
)
|
(29,841
|
)
|
||||||||
Adjusted net earnings (loss) available to common and equivalent stockholders
|
$
|
41,414
|
$
|
(25,065
|
)
|
$
|
79,579
|
$
|
91,860
|
|||||||
Weighted average common shares outstanding
|
168,583
|
77,881
|
168,386
|
77,678
|
||||||||||||
Diluted (loss) earnings per common share
|
$
|
(0.01
|
)
|
$
|
(0.42
|
)
|
$
|
0.24
|
$
|
(18.61
|
)
|
|||||
Adjusted diluted earnings per common share (2)
|
$
|
0.25
|
$
|
(0.32
|
)
|
$
|
0.47
|
$
|
1.18
|
|||||||
Average total assets
|
$
|
34,426,185
|
$
|
37,807,758
|
$
|
35,928,284
|
$
|
41,187,428
|
||||||||
Return on average assets (“ROAA”) (3)
|
0.10
|
%
|
(0.24
|
)%
|
0.26
|
%
|
(4.60
|
)%
|
||||||||
Adjusted ROAA (4)
|
0.59
|
%
|
(0.16
|
)%
|
0.41
|
%
|
0.40
|
%
|
(1)
|
Effective tax rates of 27.61% used for the 2024 periods and 9.15% for the 2023 periods.
|
(2)
|
Adjusted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding.
|
(3)
|
Annualized net earnings (loss) divided by average assets.
|
(4)
|
Annualized adjusted net earnings (loss) divided by average assets.
|
![]() |
25 |