Banc of California Reports First Quarter 2018 Earnings

Investor Relations Inquiries:

Media Inquiries:

Banc of California, Inc.

Abernathy MacGregor

Timothy Sedabres, (855) 361-2262

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

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

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

March 31,

December 31,

September 30,

June 30,

March 31,

2018

2017

2017

2017

2017

ASSETS

Cash and cash equivalents

$      346,704

$      387,699

$        611,826

$        511,190

$      409,281

Time deposits in financial institutions

-

-

1,000

1,000

1,000

Securities available-for-sale

2,424,593

2,575,469

2,755,664

2,915,103

2,434,541

Securities held-to-maturity

-

-

-

-

863,269

Loans held-for-sale

20,180

67,069

50,130

278,824

228,196

Loans and leases receivable

6,930,507

6,659,407

6,226,897

5,956,337

6,105,321

Allowance for loan and lease losses

(54,763)

(49,333)

(45,072)

(42,385)

(42,736)

Federal Home Loan Bank and other bank stock

82,715

75,654

67,063

63,438

63,238

Servicing rights, net

6,739

33,708

40,448

43,834

44,451

Other real estate owned, net

1,024

1,796

3,682

3,267

3,345

Premises and equipment, net

135,198

135,699

139,326

143,398

146,631

Investments in alternative energy partnerships, net

48,344

48,826

43,817

37,605

47,633

Goodwill

37,144

37,144

37,144

37,144

37,144

Other intangible assets, net

8,510

9,353

10,219

11,135

12,191

Deferred income tax, net

43,192

31,074

23,333

9,499

18,673

Income tax receivable

10,126

8,739

7,699

14,984

15,973

Bank owned life insurance investment

105,384

104,851

104,292

103,709

103,093

Other assets

153,834

161,797

142,985

113,534

128,036

Assets of discontinued operations

29,888

38,900

59,575

164,152

432,805

Total assets 

$ 10,329,319

$ 10,327,852

$   10,280,028

$   10,365,768

$ 11,052,085

LIABILITIES AND STOCKHOLDERS' EQUITY

Noninterest-bearing deposits

$   1,039,116

$   1,071,608

$     1,075,782

$   1,138,095

$   1,273,649

Interest-bearing deposits

6,071,049

6,221,295

6,327,811

6,906,816

7,324,044

Total deposits

7,110,165

7,292,903

7,403,593

8,044,911

8,597,693

Advances from Federal Home Loan Bank

1,905,000

1,695,000

1,470,000

870,000

1,080,000

Securities sold under repurchase agreements

-

-

36,520

53,242

26,320

Other borrowings

-

-

-

-

67,981

Notes payable, net

172,966

172,941

172,865

172,790

174,090

Reserve for loss on repurchased loans

3,426

6,306

6,173

8,028

8,118

Income taxes payable

-

-

-

-

618

Due on unsettled securities purchases

59,000

-

54,500

116,090

-

Accrued expenses and other liabilities

84,997

140,575

109,969

77,186

81,208

Liabilities of discontinued operations

9

7,819

12,500

17,229

30,309

Total liabilities

9,335,563

9,315,544

9,266,120

9,359,476

10,066,337

Commitments and contingent liabilities

Preferred stock

269,071

269,071

269,071

269,071

269,071

Common stock

517

517

542

540

537

Common stock, class B non-voting non-convertible

5

5

4

4

3

Additional paid-in capital

623,483

621,435

619,849

616,251

614,983

Retained earnings

141,008

144,839

145,420

140,331

139,926

Treasury stock

(28,786)

(28,786)

(28,786)

(28,786)

(29,070)

Accumulated other comprehensive income/(loss), net

(11,542)

5,227

7,808

8,881

(9,702)

Total stockholders' equity

993,756

1,012,308

1,013,908

1,006,292

985,748

Total liabilities and stockholders' equity 

$ 10,329,319

$ 10,327,852

$   10,280,028

$   10,365,768

$ 11,052,085

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2018

2017

2017

2017

2017

Interest and dividend income

Loans, including fees

$        74,912

$        71,695

$          70,208

$          69,661

$        69,507

Securities

21,631

23,170

24,337

24,996

27,239

Other interest-earning assets

2,164

2,292

2,206

1,783

2,096

Total interest and dividend income

98,707

97,157

96,751

96,440

98,842

Interest expense

Deposits

16,795

16,044

15,468

14,942

13,960

Federal Home Loan Bank advances

7,392

5,402

3,352

2,774

1,423

Securities sold under repurchase agreements

750

194

500

180

6

Notes payable and other interest-bearing liabilities

2,332

2,344

2,395

3,044

2,972

Total interest expense

27,269

23,984

21,715

20,940

18,361

Net interest income

71,438

73,173

75,036

75,500

80,481

Provision for loan and lease losses

19,499

5,052

3,561

2,503

2,583

Net interest income after provision for loan and lease losses

51,939

68,121

71,475

72,997

77,898

Noninterest income

Customer service fees

1,592

1,624

1,576

1,669

1,623

Loan servicing income (loss) 

2,311

(2,416)

553

132

2,756

Net gain on sale of securities available for sale

5,241

2,688

7,625

1,099

3,356

Net gain (loss) on sale of loans

(41)

1,205

5,735

983

4,019

All other income

(521)

2,594

2,876

1,824

3,149

Total noninterest income

8,582

5,695

18,365

5,707

14,903

Noninterest expense

Salaries and employee benefits

31,115

33,146

30,216

33,348

32,443

Occupancy and equipment

7,687

9,565

10,085

9,776

10,668

Professional fees

9,177

7,853

7,697

11,794

15,073

Data processing

1,656

1,562

1,901

2,246

2,179

Advertising

3,277

1,420

1,051

1,117

1,725

Regulatory assessments

2,092

2,174

2,350

1,140

2,441

Reversal of provision for loan repurchases

(1,788)

(335)

(749)

(403)

(325)

Amortization of intangible assets

843

866

916

1,056

1,090

Restructuring expense

-

(43)

-

82

5,287

All other expenses

5,775

6,179

13,856

6,402

10,633

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

59,834

62,387

67,323

66,558

81,214

(Gain) loss on investments in alternative energy partnerships

(34)

3,995

8,348

9,761

8,682

Total noninterest expense

59,800

66,382

75,671

76,319

89,896

Income from continuing operations before income taxes

721

7,434

14,169

2,385

2,905

Income tax benefit

(6,353)

(3,418)

(3,939)

(12,753)

(6,471)

Income from continuing operations

7,074

10,852

18,108

15,138

9,376

Income (loss) from discontinued operations before income taxes

2,044

765

(1,958)

(4,991)

13,348

Income tax expense (benefit)

560

315

(799)

(2,110)

5,523

Income (loss) from discontinued operations

1,484

450

(1,159)

(2,881)

7,825

Net income

8,558

11,302

16,949

12,257

17,201

Preferred stock dividends

5,113

5,113

5,112

5,113

5,113

Net income available to common stockholders

$          3,445

$          6,189

$          11,837

$          7,144

$        12,088

Basic earnings per total common share

Income from continuing operations

$            0.03

$            0.11

$              0.25

$              0.20

$            0.08

Income (loss) from discontinued operations

0.03

0.01

(0.02)

(0.06)

0.15

Net income

$            0.06

$            0.12

$              0.23

$              0.14

$            0.23

Diluted earnings per total common share

Income from continuing operations

$            0.03

$            0.11

$              0.25

$              0.20

$            0.08

Income (loss) from discontinued operations

0.03

0.01

(0.02)

(0.06)

0.15

Net income

$            0.06

$            0.12

$              0.23

$              0.14

$            0.23

Weighted average number of shares outstanding

Basic

50,590,545

50,532,544

50,362,314

50,289,590

49,991,186

Diluted

50,925,530

50,943,165

50,933,358

50,942,324

50,754,145

Dividends declared per common share

$            0.13

$            0.13

$              0.13

$              0.13

$            0.13

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 March 31, 2018

Continuing

Discontinued

Consolidated

Operations

Operations

Operations

Interest and dividend income

$          98,707

$              186

$        98,893

Interest expense

27,269

-

27,269

Net interest income

71,438

186

71,624

Provision for loan and lease losses

19,499

-

19,499

Net interest income after provision for loan and lease losses

51,939

186

52,125

Noninterest income

Customer service fees

1,592

-

1,592

Loan servicing income 

2,311

-

2,311

Net gain on sale of securities available for sale

5,241

-

5,241

Net loss on sale of loans

(41)

-

(41)

Mortgage banking income

-

232

232

Gain on disposal of discontinued operations

-

1,003

1,003

All other income

(521)

635

114

Total noninterest income

8,582

1,870

10,452

Noninterest expense

Salaries and employee benefits

31,115

9

31,124

Occupancy and equipment

7,687

-

7,687

Professional fees

9,177

-

9,177

Data processing

1,656

-

1,656

Advertising

3,277

-

3,277

Regulatory assessments

2,092

-

2,092

Reversal of provision for loan repurchases

(1,788)

-

(1,788)

Gain on investments in alternative energy partnerships

(34)

-

(34)

Amortization of intangible assets

843

-

843

All other expenses

5,775

3

5,778

Total noninterest expense

59,800

12

59,812

Income before income taxes

721

2,044

2,765

Income tax (benefit) expense

(6,353)

560

(5,793)

Net income

$            7,074

$          1,484

$          8,558

Banc of California, Inc.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2018

2017

2017

2017

2017

Profitability and other ratios of consolidated operations

Return on average assets⁽¹⁾

0.34%

0.44%

0.67%

0.46%

0.62%

Return on average equity ⁽¹⁾

3.40%

4.42%

6.69%

4.85%

6.96%

Return on average tangible common equity⁽²⁾

2.37%

3.84%

7.16%

4.51%

7.76%

Dividend payout ratio ⁽³⁾

216.67%

108.33%

56.52%

92.86%

56.52%

Net interest spread

2.74%

2.79%

2.92%

2.90%

3.03%

Net interest margin⁽¹⁾

2.98%

3.01%

3.15%

3.09%

3.19%

Noninterest income to total revenue ⁽⁴⁾

12.73%

8.07%

19.86%

20.20%

41.62%

Noninterest income to average total assets⁽¹⁾

0.41%

0.25%

0.74%

0.74%

2.16%

Noninterest expense to average total assets⁽¹⁾

2.36%

2.59%

3.10%

3.68%

4.52%

Efficiency ratio⁽⁵⁾

72.87%

83.37%

83.36%

100.10%

86.87%

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

65.70%

75.46%

72.49%

80.51%

78.76%

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

94.87%

86.09%

77.33%

73.54%

68.33%

Average investment securities to average total assets

24.60%

26.10%

27.64%

28.09%

30.18%

Average stockholders' equity to average total assets

9.94%

9.98%

9.95%

9.48%

8.95%

Allowance for loan and lease losses (ALLL)

Balance at beginning of period

$        49,333

$        45,072

$          42,385

$          42,736

$        40,444

Loans and leases charged off

(14,639)

(1,367)

(959)

(2,898)

(357)

Recoveries

570

576

85

44

66

Provision for loan and lease losses

19,499

5,052

3,561

2,503

2,583

Balance at end of period

$        54,763

$        49,333

$          45,072

$          42,385

$        42,736

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

0.84%

0.05%

0.06%

0.19%

0.02%

Reserve for loss on repurchased loans

Balance at beginning of period

$          6,306

$          6,173

$            8,028

$          8,118

$          7,974

Provision (reversal) for loan repurchases

(1,786)

(326)

(651)

270

517

Utilization of reserve for loan repurchases

(1,094)

(301)

(1,204)

(360)

(373)

Other adjustments

-

760

-

-

-

Balance at end of period

$          3,426

$          6,306

$            6,173

$          8,028

$          8,118

(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.

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

March 31,

December 31,

September 30,

June 30,

March 31,

2018

2017

2017

2017

2017

Asset quality information and ratios

Delinquent loans and leases held-for-investment

30 to 89 days delinquent, excluding purchased credit impaired (PCI) loans

$        31,936

$        32,087

$          20,286

$          23,305

$        22,596

90+ days delinquent, excluding PCI loans

11,526

9,542

11,150

6,508

9,802

Total delinquent loans, excluding PCI loans

43,462

41,629

31,436

29,813

32,398

PCI loans, 30 to 89 days delinquent

-

-

-

343

16,410

PCI loans, 90+ days delinquent

-

-

-

807

4,943

Total delinquent PCI loans

-

-

-

1,150

21,353

Total delinquent loans

$        43,462

$        41,629

$          31,436

$          30,963

$        53,751

Total delinquent non-PCI loans to total non-PCI loans

0.63%

0.63%

0.50%

0.50%

0.54%

Total delinquent loans and leases to total loans and leases

0.63%

0.63%

0.50%

0.52%

0.88%

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

Non-performing loans and leases, excluding PCI loans

$        21,220

$        19,382

$          12,275

$            9,064

$        16,222

90+ days delinquent and still accruing loans and leases, excluding PCI loans  

-

-

-

-

-

Other real estate owned

1,024

1,796

3,682

3,267

3,345

Non-performing assets

$        22,244

$        21,178

$          15,957

$          12,331

$        19,567

ALLL to non-performing loans and leases

258.07%

254.53%

367.19%

467.62%

263.44%

Non-performing loans and leases to total loans and leases

0.31%

0.29%

0.20%

0.15%

0.27%

Non-performing assets to total assets

0.22%

0.21%

0.16%

0.12%

0.18%

Troubled debt restructurings (TDRs)

Performing TDRs

$          5,787

$          5,646

$            5,668

$            4,579

$          4,309

Non-performing TDRs

2,632

2,675

-

1,125

1,144

Total TDRs

$          8,419

$          8,321

$            5,668

$            5,704

$          5,453

Loans and leases and ALLL by loan origination type

Loan and lease breakdown by origination type

Originated loans and leases

$   6,295,843

$   5,988,101

$     5,488,018

$     5,159,823

$   5,109,175

Acquired loans not impaired at acquisition

634,664

671,306

738,879

792,213

834,983

Seasoned SFR mortgage loan pools - non-impaired

-

-

-

-

21,464

Acquired with deteriorated credit quality

-

-

-

4,301

139,699

Total loans and leases

$   6,930,507

$   6,659,407

$     6,226,897

$     5,956,337

$   6,105,321

ALLL breakdown by origination type

Originated loans and leases

$        53,605

$        48,110

$          43,723

$          41,090

$        41,221

Acquired loans not impaired at acquisition

1,158

1,223

1,349

1,271

1,234

Seasoned SFR mortgage loan pools - non-impaired

-

-

-

-

120

Acquired with deteriorated credit quality

-

-

-

24

161

Total ALLL

$        54,763

$        49,333

$          45,072

$          42,385

$        42,736

Discount on Purchased/Acquired Loans

Acquired loans not impaired at acquisition

$        14,255

$        14,943

$          15,983

$          15,446

$        16,275

Seasoned SFR mortgage loan pools - non-impaired

-

-

-

-

1,219

Acquired with deteriorated credit quality

-

-

-

1,754

21,538

Total Discount

$        14,255

$        14,943

$          15,983

$          17,200

$        39,032

Percentage of ALLL to:

Originated loans and leases:

0.85%

0.80%

0.80%

0.80%

0.81%

Originated loans and leases and acquired loans not impaired at acquisition:

0.79%

0.74%

0.72%

0.71%

0.71%

Total loans and leases

0.79%

0.74%

0.72%

0.71%

0.70%

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

March 31,

December 31,

September 30,

June 30,

March 31,

2018

2017

2017

2017

2017

Composition of held-for-investment loans and leases

Commercial real estate

$      773,193

$      717,415

$        713,120

$        716,771

$      750,592

Multifamily

1,944,082

1,816,141

1,617,890

1,545,888

1,449,715

Construction

200,766

182,960

176,397

156,246

142,164

Commercial and industrial

1,638,559

1,701,951

1,602,805

1,560,916

1,585,656

SBA

79,022

78,699

78,604

77,254

76,040

Lease financing

3

13

91

173

285

Total commercial loans

4,635,625

4,497,179

4,188,907

4,057,248

4,004,452

Single family residential mortgage

2,201,358

2,055,649

1,920,310

1,778,536

1,975,055

Other consumer

93,524

106,579

117,680

120,553

125,814

Total consumer loans

2,294,882

2,162,228

2,037,990

1,899,089

2,100,869

Total gross loans and leases

$   6,930,507

$   6,659,407

$     6,226,897

$     5,956,337

$   6,105,321

Composition percentage of held-for-investment loans and leases

Commercial real estate

11.2%

10.8%

11.5%

12.0%

12.3%

Multifamily

28.1%

27.3%

26.0%

26.0%

23.7%

Construction

2.9%

2.7%

2.8%

2.6%

2.3%

Commercial and industrial

23.6%

25.5%

25.7%

26.2%

26.1%

SBA

1.1%

1.2%

1.3%

1.3%

1.2%

Lease financing

0.0%

0.0%

0.0%

0.0%

0.0%

Total commercial loans

66.9%

67.5%

67.3%

68.1%

65.6%

Single family residential mortgage

31.8%

30.9%

30.8%

29.9%

32.3%

Other consumer

1.3%

1.6%

1.9%

2.0%

2.1%

Total consumer loans

33.1%

32.5%

32.7%

31.9%

34.4%

Total gross loans and leases

100.0%

100.0%

100.0%

100.0%

100.0%

Composition of deposits

Noninterest-bearing checking

$   1,039,116

$   1,071,608

$     1,075,782

$     1,138,095

$   1,273,649

Interest-bearing checking

1,864,629

2,089,016

2,011,943

2,058,130

1,998,778

Money market

1,091,735

1,146,859

1,728,937

2,265,380

2,610,376

Savings

1,051,267

1,059,628

945,699

985,001

1,008,218

Certificates of deposit

2,063,418

1,925,792

1,641,232

1,598,305

1,706,672

Total deposits

$   7,110,165

$   7,292,903

$     7,403,593

$     8,044,911

$   8,597,693

Composition percentage of deposits

Noninterest-bearing checking

14.6%

14.7%

14.5%

14.1%

14.8%

Interest-bearing checking

26.2%

28.7%

27.2%

25.6%

23.2%

Money market

15.4%

15.7%

23.3%

28.2%

30.4%

Savings

14.8%

14.5%

12.8%

12.2%

11.7%

Certificates of deposit

29.0%

26.4%

22.2%

19.9%

19.9%

Total deposits

100.0%

100.0%

100.0%

100.0%

100.0%

Capital Ratios

Banc of California, Inc.

Total risk-based capital ratio

14.60%

14.56%

14.48%

14.39%

13.72%

Tier 1 risk-based capital ratio

13.74%

13.79%

13.77%

13.72%

13.08%

Common equity tier 1 capital ratio

9.80%

9.92%

9.91%

9.83%

9.37%

Tier 1 leverage ratio

9.21%

9.39%

9.55%

8.93%

8.51%

Banc of California, NA

Total risk-based capital ratio

16.53%

16.56%

16.39%

16.13%

15.11%

Tier 1 risk-based capital ratio

15.67%

15.78%

15.68%

15.45%

14.48%

Common equity tier 1 capital ratio

15.67%

15.78%

15.68%

15.45%

14.48%

Tier 1 leverage ratio

10.50%

10.67%

10.88%

10.05%

9.43%

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid 

(Dollars in thousands)

(Unaudited)

Three Months Ended

March 31, 2018

December 31, 2017

September 30, 2017

Average

Yield 

Average

Yield 

Average

Yield 

Balance

Interest

/ Cost

Balance

Interest

/ Cost

Balance

Interest

/ Cost

Interest earning assets

Loans held-for-sale ⁽¹⁾

$        97,095

$      297

1.24%

$      127,139

$      363

1.13%

$      246,675

$   2,319

3.73%

SFR mortgage

2,122,666

21,352

4.08%

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

2,856,290

31,439

4.46%

2,613,940

29,696

4.51%

2,494,284

28,659

4.56%

Commercial and industrial, SBA, and lease financing

1,625,549

20,850

5.20%

1,630,886

20,989

5.11%

1,553,816

20,141

5.14%

Other consumer

103,676

1,160

4.54%

107,664

1,233

4.54%

114,569

1,363

4.72%

Gross loans and leases

6,805,276

75,098

4.48%

6,437,383

71,768

4.42%

6,268,915

71,125

4.50%

Securities

2,525,220

21,631

3.47%

2,653,838

23,170

3.46%

2,791,585

24,337

3.46%

Other interest-earning assets

407,064

2,164

2.16%

548,171

2,292

1.66%

519,593

2,206

1.68%

Total interest-earning assets

9,737,560

98,893

4.12%

9,639,392

97,230

4.00%

9,580,093

97,668

4.04%

Allowance for loan and lease losses

(49,257)

(45,681)

(42,696)

BOLI and non-interest earning assets

574,930

572,692

563,784

Total assets

$ 10,263,233

$ 10,166,403

$ 10,101,181

Interest-bearing liabilities

Savings

$   1,055,338

3,300

1.27%

$   1,019,659

2,947

1.15%

$      968,158

2,263

0.93%

Interest-bearing checking

1,976,160

4,108

0.84%

2,082,677

4,267

0.81%

2,037,729

3,871

0.75%

Money market

1,076,117

2,834

1.07%

1,294,537

3,262

1.00%

1,935,262

5,095

1.04%

Certificates of deposit

1,906,556

6,553

1.39%

1,822,010

5,568

1.21%

1,560,078

4,239

1.08%

Total interest-bearing deposits

6,014,171

16,795

1.13%

6,218,883

16,044

1.02%

6,501,227

15,468

0.94%

FHLB advances

1,711,089

7,392

1.75%

1,448,326

5,402

1.48%

962,391

3,352

1.38%

Securities sold under repurchase agreements

119,543

750

2.54%

33,513

194

2.30%

88,810

500

2.23%

Long-term debt and other interest-bearing liabilities

174,424

2,332

5.42%

174,066

2,344

5.34%

173,772

2,395

5.47%

Total interest-bearing liabilities

8,019,227

27,269

1.38%

7,874,788

23,984

1.21%

7,726,200

21,715

1.12%

Noninterest-bearing deposits

1,056,700

1,110,815

1,178,062

Non-interest-bearing liabilities

167,345

166,432

191,457

Total liabilities

9,243,272

9,152,035

9,095,719

Total stockholders' equity

1,019,961

1,014,368

1,005,462

Total liabilities and stockholders' equity

$ 10,263,233

$ 10,166,403

$ 10,101,181

Net interest income/spread

$ 71,624

2.74%

$ 73,246

2.79%

$ 75,953

2.92%

Net interest margin

2.98%

3.01%

3.15%

Ratio of interest-earning assets to interest-bearing liabilities

121.43%

122.41%

123.99%

Total deposits

$   7,070,871

$ 16,795

0.96%

$   7,329,698

$ 16,044

0.87%

$   7,679,289

$ 15,468

0.80%

Total funding ⁽²⁾

$   9,075,927

$ 27,269

1.22%

$   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

Banc of California, Inc.

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

(Dollars in thousands)

(Unaudited)

Three Months Ended

June 30, 2017

March 31, 2017

Average

Yield 

Average

Yield 

Balance

Interest

/ Cost

Balance

Interest

/ Cost

Interest earning assets

Loans held-for-sale ⁽¹⁾

$      575,669

$   4,876

3.40%

$      699,671

$   6,111

3.54%

SFR mortgage

1,832,524

18,006

3.94%

1,963,861

19,105

3.95%

Seasoned SFR mortgage loan pools

151,759

2,121

5.61%

154,736

2,145

5.62%

Commercial real estate, multifamily, and construction

2,394,487

27,038

4.53%

2,336,323

26,393

4.58%

Commercial and industrial, SBA, and lease financing

1,565,583

18,991

4.87%

1,508,756

17,751

4.77%

Other consumer

119,644

1,425

4.78%

121,666

1,268

4.23%

Gross loans and leases

6,639,666

72,457

4.38%

6,785,013

72,773

4.35%

Securities

3,004,551

24,996

3.34%

3,376,698

27,239

3.27%

Other interest-earning assets

517,349

1,783

1.38%

500,123

2,096

1.70%

Total interest-earning assets

10,161,566

99,236

3.92%

10,661,834

102,108

3.88%

Allowance for loan and lease losses

(42,896)

(41,285)

BOLI and non-interest earning assets

578,333

568,257

Total assets

$ 10,697,003

$ 11,188,806

Interest-bearing liabilities

Savings

$   1,002,797

2,262

0.90%

$   1,042,031

2,292

0.89%

Interest-bearing checking

2,013,751

3,609

0.72%

2,008,828

3,414

0.69%

Money market

2,359,173

5,482

0.93%

2,735,810

4,691

0.70%

Certificates of deposit

1,606,270

3,589

0.90%

1,937,392

3,563

0.75%

Total interest-bearing deposits

6,981,991

14,942

0.86%

7,724,061

13,960

0.73%

FHLB advances

990,780

2,774

1.12%

812,444

1,423

0.71%

Securities sold under repurchase agreements

34,298

180

2.11%

2,123

6

1.15%

Long-term debt and other interest-bearing liabilities

240,201

3,044

5.08%

244,040

2,972

4.94%

Total interest-bearing liabilities

8,247,270

20,940

1.02%

8,782,668

18,361

0.85%

Noninterest-bearing deposits

1,261,338

1,181,279

Non-interest-bearing liabilities

174,128

223,075

Total liabilities

9,682,736

10,187,022

Total stockholders' equity

1,014,267

1,001,784

Total liabilities and stockholders' equity

$ 10,697,003

$ 11,188,806

Net interest income/spread

$ 78,296

2.90%

$ 83,747

3.03%

Net interest margin

3.09%

3.19%