IRVINE, Calif.--(BUSINESS WIRE)-- Banc of California, Inc. (NYSE: BANC) today reported net income of $15.9 million and net income available to common shareholders of $13.1 million, or $0.32 per diluted common share for the quarter ended June 30, 2015. This compares to net income available to common shareholders of $11.7 million, or $0.29 per diluted common share, for the quarter ended March 31, 2015, and net income available to common shareholders of $7.2 million, or $0.27 per diluted common share, for the year ago quarter ended June 30, 2014.

“Second quarter performance was highlighted by record net income as well as record loan originations of $1.9 billion,” said Steven Sugarman, President and Chief Executive Officer. “We are seeing continued progress realizing the financial returns from the investments we have made in our people, products and infrastructure over the past few years. We continue to remain optimistic about our position as California’s Bank and we are committed to realizing increasing returns for shareholders.”

The Company’s consolidated assets totaled $6.4 billion at June 30, 2015, an increase of $0.3 billion compared to the prior quarter, and an increase of $2.1 billion compared to a year ago. Return on average assets for the second quarter was 1.0%, and return on average tangible common equity was 15% for the second quarter.

Total loans and leases, representing both loans held for investment and held for sale, of $5.2 billion at June 30, 2015 increased by $45 million compared to the prior quarter, and have increased by $1.5 billion compared to the year ago quarter. Loan growth during the second quarter was muted by the sale of $214 million of multifamily loan balances during the quarter. Second quarter origination volumes increased to a record $1.9 billion. Held for investment loan balances increased by $539 million from the prior quarter, as a result of growth in the C&I, CRE and residential portfolios and the transfer of $475 million of jumbo mortgages from held for sale to held for investment during the second quarter.

Total deposits of $5.1 billion at June 30, 2015 increased by $243 million, or 5%, compared to the prior quarter, and have increased by $1.8 billion, or 53%, compared to the year ago quarter. Noninterest-bearing deposits increased by $132 million, or 18%, compared to the prior quarter, and have increased by $472 million, or 116%, compared to the year ago quarter.

Total revenue of $120.8 million for the second quarter increased by $22.8 million, or 23%, compared with the prior quarter, and increased by $49.9 million, or 70%, compared to the year ago quarter.

Second quarter net interest income of $54.1 million increased by $2.1 million, or 4%, from the prior quarter, and increased by $18.5 million, or 52%, compared to the year ago quarter.

The consolidated net interest margin for the second quarter was 3.64%, a decrease of 5 basis points from 3.69% reported in the prior quarter, largely driven by increased interest expense associated with the April debt offering. The net interest margin for Banc of California, N.A. was 3.92% for the second quarter, an increase of 8 basis points from the prior quarter. Cost of total deposits for the second quarter was 0.50%, down 4 basis points from the prior quarter.

Noninterest income for the second quarter totaled $66.7 million, including $9.9 million related to the sale of the Costa Mesa building, compared to $46.0 million for the prior quarter and $35.4 million for the year ago quarter. Mortgage banking income totaled $39.4 million for the second quarter, compared to $37.9 million for the prior quarter and $26.1 million for the year ago quarter. Agency and conforming origination and sales volumes increased from the prior quarter, while the gain on sale margin compressed from the prior quarter, contributing to net higher mortgage banking income for the second quarter.

Total noninterest expense for the first quarter totaled $87.9 million, an increase of $12.0 million compared to the prior quarter. Higher noninterest expense during the second quarter included approximately $2.3 million of non-recurring costs related to the sale of the Costa Mesa building as well as $4.8 million of higher volume and bonus-related compensation expense, primarily as a result of increased origination volumes and profitability.

The Company’s allowance for loan and lease losses (ALLL) ended the quarter at $34.8 million, and equaled 1.27% of originated loans, and represented a coverage ratio of 81% of nonperforming loans at June 30, 2015. Second quarter provision for loan losses was $5.5 million, which included a one-time provision of $4.5 million to establish an initial ALLL for the loans transferred to held for investment during the quarter. The ratio of delinquent non-PCI loans to total non-PCI loans equaled 1.66% for the second quarter, flat from the prior quarter, and down from 2.69% a year ago. The ratio of nonperforming assets to total assets stood at 0.66% for the second quarter. Net charge offs for the second quarter were less than $0.1 million, relatively flat from $0.1 million during the prior quarter.

The Company remains well-capitalized with a Tier 1 Risk-Based Capital Ratio of 13.2%, a Tier 1 Leverage Ratio of 9.6%, Common Equity Tier 1 Capital Ratio of 9.0%, and a Tangible Equity to Tangible Assets Ratio (TE/TA) of 9.1%, as of June 30, 2015. The Tier 1 Leverage Ratio for Banc of California, N.A. increased from 9.5% to 10.3% as of June 30, 2015.

The Company will host a conference call to discuss its second quarter financial results at 8:00 a.m. Pacific Time (PT) on Thursday, July 30, 2015. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 7245884. A live audio webcast will also be available and the webcast link will be posted on the Company’s website under the Investors section. The slide presentation for the call will also be available on the Company's website prior to the call.

About Banc of California, Inc.

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

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Banc of California, Inc.
Consolidated Statements of Financial Condition
(Dollars in thousands)
(Unaudited)
			June 30,					March 31,					December 31,					September 30,					June 30,
			2015					2015					2014					2014					2014
ASSETS
Cash and cash equivalents			$	458,990				$	265,402				$	231,199				$	184,985				$	258,051
Time deposits in financial institutions				1,900					1,900					1,900					1,900					2,145
Securities available for sale				487,293					393,586					345,695					310,385					233,013
Securities held to maturity				53,414					-					-					-					-
Loans held for sale				746,651					1,240,942					1,187,090					1,127,339					1,095,741
Loans and leases receivable				4,473,095					3,933,715					3,949,122					2,712,068					2,602,213
Allowance for loan and lease losses				(34,787	)				(29,345	)				(29,480	)				(25,283	)				(22,627	)
Federal Home Loan Bank and other bank stock				34,187					39,844					42,241					35,432					34,392
Servicing rights, net				34,942					21,829					19,566					11,745					10,191
Other real estate owned, net				50					498					423					605					605
Premises and equipment, net				35,229					78,285					78,685					67,323					67,457
Goodwill				31,591					31,591					31,591					31,591					32,150
Other intangible assets, net				21,905					23,708					25,252					10,829					10,959
Deferred income tax (1)				12,081					14,157					16,373					8,663					2,546
Income tax receivable				3,091					-					-					-					-
Bank-owned life insurance investment				19,201					19,154					19,095					19,038					18,984
Other assets (1)				59,049					62,089					52,545					41,206					40,511
Total assets			$	6,437,882				$	6,097,355				$	5,971,297				$	4,537,826				$	4,386,331
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits			$	867,930				$	749,129				$	662,295				$	457,743				$	408,404
Interest-bearing deposits				4,184,260					4,112,863					4,009,536					3,173,967					2,938,951
Deposits held for sale				52,820					-					-					-					-
Total deposits				5,105,010					4,861,992					4,671,831					3,631,710					3,347,355
Advances from Federal Home Loan Bank				350,000					545,000					633,000					305,000					450,000
Other borrowings				-					15,000					-					-					-
Notes payable, net				264,077					92,668					93,569					95,549					96,481
Reserve for loss reimbursements on sold loans				9,411					8,432					8,303					7,045					6,174
Income taxes payable				-					4,488					56					2,158					31
Accrued expenses and other liabilities				75,502					55,615					61,223					49,653					47,163
Total liabilities				5,804,000					5,583,195					5,467,982					4,091,115					3,947,204
Commitments and contingent liabilities
Preferred stock, Series A, non-cumulative perpetual preferred stock				31,934					31,934					31,934					31,934					31,934
Preferred stock, Series B, non-cumulative perpetual preferred stock				10,000					10,000					10,000					10,000					10,000
Preferred stock, Series C, 8.00% non-cumulative perpetual preferred stock				37,943					37,943					37,943					37,943					37,943
Preferred stock, Series D, 7.375% non-cumulative perpetual preferred stock				110,873					-					-					-					-
Common stock				372					367					358					297					287
Common stock, class B non-voting non-convertible				-					-					6					6					6
Additional paid-in capital				425,784					424,636					422,910					371,738					369,530
Retained earnings (1)				45,494					36,880					29,589					24,692					18,588
Treasury stock				(29,070	)				(29,798	)				(29,798	)				(29,798	)				(29,652	)
Accumulated other comprehensive (loss)/income, net				552					2,198					373					(101	)				491
Total stockholders’ equity				633,882					514,160					503,315					446,711					439,127
Total liabilities and stockholders’ equity			$	6,437,882				$	6,097,355				$	5,971,297				$	4,537,826				$	4,386,331

(1)

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

Banc of California, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended																					Six Months Ended
			June 30,				March 31,				December 31,					September 30,				June 30,				June 30,				June 30,
			2015				2015				2014					2014				2014				2015				2014
Interest and dividend income
Loans, including fees			$	60,699			$	58,155			$	52,599				$	44,555			$	42,077			$	118,854			$	83,607
Securities				2,119				1,927				1,781					1,460				993				4,046				1,917
Dividends and other interest-earning assets				2,026				698				700					634				564				2,724				886
Total interest and dividend income				64,844				60,780				55,080					46,649				43,634				125,624				86,410
Interest expense
Deposits				6,165				6,361				6,440					6,165				6,071				12,526				11,806
Federal Home Loan Bank advances				290				353				210					118				99				643				199
Notes payable and other interest-bearing liabilities				4,285				2,069				2,099					2,180				1,889				6,354				3,645
Total interest expense				10,740				8,783				8,749					8,463				8,059				19,523				15,650
Net interest income				54,104				51,997				46,331					38,186				35,575				106,101				70,760
Provision for loan and lease losses				5,474				-				4,159					2,780				2,108				5,474				4,037
Net interest income after provision for loan and lease losses				48,630				51,997				42,172					35,406				33,467				100,627				66,723
Noninterest income
Customer service fees				1,072				910				651					230				356				1,982				609
Net gain on sale of loans				7,838				4,472				3,927					10,260				3,038				12,310				5,641
Mortgage banking income				39,403				37,933				25,030					26,943				26,133				77,336				43,457
Advisory service fees				4,435				1,197				6,722					3,264				1,808				5,632				2,918
Loan brokerage income				661				1,141				2,314					2,033				2,416				1,802				4,327
Gain on sale of building				9,919				-				-					-				-				9,919				-
All other income				3,365				327				2,245					1,368				1,621				3,692				3,698
Total noninterest income				66,693				45,980				40,889					44,098				35,372				112,673				60,650
Noninterest expense
Salaries and employee benefits				56,120				49,771				47,974					41,094				39,130				105,891				73,811
Occupancy and equipment				10,325				9,771				9,512					7,969				7,425				20,096				15,962
Professional fees				6,689				3,435				7,096					4,758				3,528				10,124				7,393
Data processing				2,075				1,835				1,884					1,286				1,270				3,910				2,061
Amortization of intangible assets				1,545				1,544				1,306					890				944				3,089				1,883
All other expenses (1)				11,166				9,523				10,448					11,357				8,007				20,689				16,788
Total noninterest expense				87,920				75,879				78,220					67,354				60,304				163,799				117,898
Income before income taxes				27,403				22,098				4,841					12,150				8,535				49,501				9,475
Income tax (benefit) expense (1)				11,479				9,524				(5,269	)				903				436				21,003				627
Net income				15,924				12,574				10,110					11,247				8,099				28,498				8,848
Preferred stock dividends				2,843				910				910					910				910				3,753				1,820
Net income available to common stockholders			$	13,081			$	11,664			$	9,200				$	10,337			$	7,189			$	24,745			$	7,028
Basic earnings per total common share			$	0.33			$	0.30			$	0.25				$	0.31			$	0.27			$	0.62			$	0.30
Diluted earnings per total common share			$	0.32			$	0.29			$	0.25				$	0.31			$	0.27			$	0.62			$	0.30

(1)

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

Banc of California, Inc.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
			Three Months Ended																									Six Months Ended
			June 30,					March 31,					December 31,					September 30,					June 30,					June 30,					June 30,
			2015					2015					2014					2014					2014					2015					2014
Average balances:
Total assets			$	6,253,350				$	5,931,426				$	5,223,463				$	4,391,523				$	4,034,447				$	6,093,277				$	3,882,154
Total gross loans and leases				5,254,729					5,139,399					4,534,428					3,829,204					3,553,693					5,197,382					3,422,420
Investment Securities				402,366					354,475					310,454					257,067					168,230					378,553					165,633
Total interest earning assets				5,967,200					5,713,766					5,033,973					4,228,555					3,858,772					5,841,183					3,714,235
Total interest-bearing deposits				4,078,540					4,085,673					3,699,464					3,070,130					2,855,650					4,082,087					2,724,992
Total borrowings				635,460					583,979					406,531					378,671					319,774					609,862					335,117
Total interest bearing liabilities				4,714,000					4,669,652					4,105,995					3,448,801					3,175,424					4,691,949					3,060,109
Total stockholders’ equity				630,547					517,335					487,578					449,392					385,098					574,254					357,511
Profitability and other ratios:
Return on average assets (1)				1.02	%				0.86	%				0.77	%				1.02	%				0.81	%				0.94	%				0.46	%
Return on average equity (1)				10.13	%				9.86	%				8.23	%				9.93	%				8.44	%				10.01	%				4.99	%
Dividend payout ratio (2)				36.36	%				40.00	%				48.00	%				38.71	%				44.44	%				38.71	%				80.00	%
Net interest spread				3.45	%				3.55	%				3.49	%				3.41	%				3.52	%				3.50	%				3.66	%
Net interest margin (1)				3.64	%				3.69	%				3.65	%				3.58	%				3.70	%				3.66	%				3.84	%
Noninterest income to total revenue (3)				55.21	%				46.93	%				46.88	%				53.59	%				49.86	%				51.50	%				46.15	%
Noninterest income to average total assets (1)				4.28	%				3.14	%				3.11	%				3.98	%				3.52	%				3.73	%				3.15	%
Noninterest expense to average total assets (1)				5.64	%				5.19	%				5.94	%				6.08	%				6.00	%				5.42	%				6.12	%
Efficiency ratio (4)				72.78	%				77.45	%				89.68	%				81.86	%				85.00	%				74.87	%				89.72	%
Average held for investment loans and leases to average deposits				79.87	%				81.72	%				79.08	%				75.39	%				74.60	%				74.60	%				74.60	%
Average investment securities to average total assets				6.43	%				5.98	%				5.94	%				5.85	%				4.17	%				6.21	%				4.27	%
Average stockholders’ equity to average total assets				10.08	%				8.72	%				9.33	%				10.23	%				9.55	%				9.42	%				9.21	%
Allowance for loan and lease losses (ALLL):
Balance at beginning of period			$	29,345				$	29,480				$	25,283				$	22,627				$	20,003				$	29,480				$	18,805
Loans and leases charged off				(79	)				(357	)				(25	)				(312	)				(383	)				(436	)				(586	)
Recoveries of loans and leases previously charged off				47					222					63					96					641					269					1,076
Transfer of loans from (to) held-for-sale				-					-					-					92					258					-					(705	)
Provision for loan and lease losses				5,474					-					4,159					2,780					2,108					5,474					4,037
Balance at end of period			$	34,787				$	29,345				$	29,480				$	25,283				$	22,627				$	34,787				$	22,627
Reserve for loss on repurchased loans
Balance at beginning of period			$	8,432				$	8,303				$	7,045				$	6,174				$	5,866				$	8,303				$	5,427
Provision for loan repurchases				1,573					1,328					1,149					1,556					968					2,901					1,539
Payment made for loss reimbursement on sold loans				(594	)				(1,199	)				109					(685	)				(660	)				(1,793	)				(792	)
Balance at end of period			$	9,411				$	8,432				$	8,303				$	7,045				$	6,174				$	9,411				$	6,174

(1)		Ratios are presented on an annualized basis.
(2)		Dividends declared per common share divided by basic earnings per share.
(3)		Total revenue is equal to the sum of net interest income before provision and noninterest income.
(4)		The ratios were calculated by dividing noninterest expense by the sum of net interest income before provision for loan and lease losses and noninterest income.

Banc of California, Inc.
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
			June 30,					March 31,					December 31,					September 30,					June 30,
			2015					2015					2014					2014					2014
Asset quality information and ratios:
30 to 89 days delinquent, excluding PCI loans			$	46,820				$	40,641				$	40,694				$	35,531				$	44,894
90+ days delinquent, excluding PCI loans				22,855					20,538					16,835					15,672					16,925
Total delinquent loans, excluding PCI loans				69,675					61,179					57,529					51,203					61,819
PCI loans, 30 to 89 days delinquent				17,351					16,375					17,641					18,743					25,109
PCI loans, 90+ days delinquent				8,648					6,986					5,761					4,017					12,398
Total delinquent PCI loans				25,999					23,361					23,402					22,760					37,507
Total delinquent loans			$	95,674				$	84,540				$	80,931				$	73,963				$	99,326
Total delinquent non-PCI loans to total non-PCI loans				1.66	%				1.66	%				1.55	%				2.08	%				2.69	%
Total delinquent loans to gross loans				2.14	%				2.15	%				2.05	%				2.73	%				3.82	%
Non-performing loans, excluding PCI loans			$	42,708				$	42,754				$	38,381				$	38,333				$	41,611
90+ days delinquent and still accruing loans, excluding PCI loans				-					-					-					-					-
Other real estate owned				50					498					423					605					605
Non-performing assets			$	42,758				$	43,252				$	38,804				$	38,938				$	42,216
ALLL to non-performing loans				81.45	%				68.64	%				76.81	%				65.96	%				54.38	%
Non-performing loans to gross loans				0.95	%				1.09	%				0.97	%				1.41	%				1.60	%
Non-performing assets to total assets				0.66	%				0.71	%				0.65	%				0.86	%				0.96	%
Troubled Debt Restructurings (TDRs)
Performing TDRs			$	7,402				$	7,431				$	6,346				$	5,071				$	4,853
Non-performing TDRs				1,937					1,964					1,665					2,860					1,879
Total TDRs			$	9,339				$	9,395				$	8,011				$	7,931				$	6,732

Banc of California, Inc.
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
			June 30,					March 31,					December 31,					September 30,					June 30,
			2015					2015					2014					2014					2014
Loan and lease breakdown by ALLL evaluation type:
Originated loans and leases
Individually evaluated for impairment			$	31,791				$	29,301				$	29,287				$	29,030				$	29,763
Collectively evaluated for impairment				2,489,347					1,947,212					1,892,240					1,668,004					1,447,077
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment				8					2,818					4,191					8,004					6,173
Collectively evaluated for impairment				1,294,384					1,358,184					1,411,927					377,554					409,745
Seasoned SFR mortgage loan pools - non-impaired				391,193					354,402					364,580					376,575					404,398
Acquired with deteriorated credit quality				266,372					241,798					246,897					252,901					305,057
Total loans			$	4,473,095				$	3,933,715				$	3,949,122				$	2,712,068				$	2,602,213
ALLL breakdown:
Originated loans and leases
Individually evaluated for impairment			$	686				$	1,199				$	1,288				$	517				$	309
Collectively evaluated for impairment				31,440					25,474					25,263					22,011					19,427
Acquired loans through business acquisitions - non-impaired
Individually evaluated for impairment				-					-					-					7					-
Collectively evaluated for impairment				2,455					2,466					2,906					2,748					2,570
Seasoned SFR mortgage loan pools - non-impaired				-					-					-					-					-
Acquired with deteriorated credit quality				206					206					23					-					321
Total ALLL			$	34,787				$	29,345				$	29,480				$	25,283				$	22,627
Discount on Purchased/Acquired Loans:
Acquired loans through business acquisitions - non-impaired			$	15,245				$	16,877				$	17,866				$	6,512				$	6,536
Seasoned SFR mortgage loan pools - non-impaired				29,201					28,967					29,955					30,811					33,044
Acquired with deteriorated credit quality				52,394					53,381					55,865					57,961					84,876
Total Discount			$	96,840				$	99,225				$	103,686				$	95,284				$	124,456
Ratios:
To originated loans:
Individually evaluated for impairment				2.16	%				4.09	%				4.40	%				1.78	%				1.04	%
Collectively evaluated for impairment				1.26	%				1.31	%				1.34	%				1.32	%				1.34	%
Total ALLL				1.27	%				1.35	%				1.38	%				1.33	%				1.34	%
To originated and acquired non-impaired loans:
Individually evaluated for impairment				2.16	%				3.73	%				3.85	%				1.41	%				0.86	%
Collectively evaluated for impairment				0.90	%				0.85	%				0.85	%				1.21	%				1.18	%
Total ALLL				0.91	%				0.87	%				0.88	%				1.21	%				1.18	%
Total ALLL and discount (1)				1.31	%				1.38	%				1.42	%				1.53	%				1.52	%
To total loans:
Individually evaluated for impairment				2.16	%				3.73	%				3.85	%				1.41	%				0.86	%
Collectively evaluated for impairment				0.81	%				0.76	%				0.77	%				1.02	%				0.97	%
Total ALLL				0.78	%				0.75	%				0.75	%				0.93	%				0.87	%
Total ALLL and discount (1)				2.94	%				3.27	%				3.37	%				4.45	%				5.65	%

(1)

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

Banc of California, Inc.
Selected Financial Data, Continued
(Dollars in thousands)
(Unaudited)
			June 30,					March 31,					December 31,					September 30,					June 30,
			2015					2015					2014					2014					2014
Composition of held for investment loans and leases
Commercial real estate			$	807,146				$	975,734				$	999,857				$	521,867				$	535,744
Multi-family				696,768					940,053					955,683					367,364					234,179
Construction				32,022					38,081					42,198					25,997					30,761
Commercial and industrial				771,477					489,229					490,900					366,416					368,540
SBA				56,887					48,254					36,155					25,729					28,684
Lease financing				131,189					102,012					85,749					72,027					57,754
Total commercial loans				2,495,489					2,593,363					2,610,542					1,379,400					1,255,662
Single family residential mortgage				1,840,924					1,169,134					1,171,662					1,191,021					1,212,813
Other consumer				136,682					171,218					166,918					141,647					133,738
Total consumer loans				1,977,606					1,340,352					1,338,580					1,332,668					1,346,551
Total gross loans and leases			$	4,473,095				$	3,933,715				$	3,949,122				$	2,712,068				$	2,602,213
Composition percentage of held for investment loans and leases
Commercial real estate				18.0	%				24.8	%				25.3	%				19.2	%				20.6	%
Multi-family				15.6	%				23.9	%				24.2	%				13.5	%				9.0	%
Construction				0.7	%				1.0	%				1.1	%				1.0	%				1.2	%
Commercial and industrial				17.2	%				12.4	%				12.4	%				13.5	%				14.2	%
SBA				1.3	%				1.2	%				0.9	%				0.9	%				1.1	%
Lease financing				2.9	%				2.6	%				2.2	%				2.7	%				2.2	%
Total commercial loans				55.7	%				65.9	%				66.1	%				50.8	%				48.3	%
Single family residential mortgage				41.2	%				29.7	%				29.7	%				44.0	%				46.6	%
Other consumer				3.1	%				4.4	%				4.2	%				5.2	%				5.1	%
Total consumer loans				44.3	%				34.1	%				33.9	%				49.2	%				51.7	%
Total gross loans and leases				100.0	%				100.0	%				100.0	%				100.0	%				100.0	%
Composition of deposits
Noninterest-bearing checking			$	880,766				$	749,129				$	662,295				$	457,743				$	408,404
Interest-bearing checking				1,002,443					1,032,482					1,054,828					779,704					688,699
Money market				1,393,751					1,136,562					1,074,432					769,291					618,231
Savings				843,274					898,483					985,646					932,133					985,028
Certificates of deposit				984,776					1,045,336					894,630					692,839					646,993
Total deposits			$	5,105,010				$	4,861,992				$	4,671,831				$	3,631,710				$	3,347,355
Composition percentage of deposits
Noninterest-bearing checking				17.3	%				15.4	%				14.2	%				12.6	%				12.2	%
Interest-bearing checking				19.6	%				21.2	%				22.6	%				21.5	%				20.6	%
Money market				27.3	%				23.4	%				23.0	%				21.2	%				18.5	%
Savings				16.5	%				18.5	%				21.1	%				25.6	%				29.4	%
Certificates of deposit				19.3	%				21.5	%				19.1	%				19.1	%				19.3	%
Total deposits				100.0	%				100.0	%				100.0	%				100.0	%				100.0	%

Banc of California, Inc.
Average Balance, Average Yield Earned, and Average Cost Paid
(Dollars in thousands)
(Unaudited)
			Three Months Ended
			June 30, 2015													March 31, 2015													December 31, 2014
			Average									Yield				Average									Yield				Average									Yield
			Balance					Interest				/ Cost				Balance					Interest				/ Cost				Balance					Interest				/ Cost
Interest earning assets:
Loans held for sale and SFR mortgage			$	1,959,738				$	18,984			3.89	%			$	1,868,085				$	17,477			3.79	%			$	1,778,112				$	16,741			3.74	%
Seasoned SFR mortgage loan pools				591,460					9,690			6.57	%				591,724					9,413			6.45	%				606,879					9,605			6.28	%
Commercial real estate, multi-family, and construction				1,848,780					21,552			4.68	%				1,956,830					22,508			4.66	%				1,486,406					17,993			4.80	%
Commercial and industrial, SBA, and lease financing				697,291					8,871			5.10	%				572,726					7,239			5.13	%				523,194					6,192			4.70	%
Other consumer				157,460					1,602			4.08	%				150,034					1,518			4.10	%				139,837					2,068			5.87	%
Gross loans and leases				5,254,729					60,699			4.63	%				5,139,399					58,155			4.59	%				4,534,428					52,599			4.60	%
Securities				402,366					2,119			2.11	%				354,475					1,927			2.20	%				310,454					1,781			2.28	%
Other interest-earning assets				310,105					2,026			2.62	%				219,892					698			1.29	%				189,091					700			1.47	%
Total interest-earning assets				5,967,200					64,844			4.36	%				5,713,766					60,780			4.31	%				5,033,973					55,080			4.34	%
Allowance for loan and lease losses				(29,445	)												(29,623	)												(26,105	)
BOLI and non-interest earning assets				315,595													247,283													215,595
Total assets			$	6,253,350												$	5,931,426												$	5,223,463
Interest-bearing liabilities:
Savings			$	867,532				$	1,606			0.74	%			$	945,530				$	1,748			0.75	%			$	960,253				$	1,963			0.81	%
Interest-bearing checking				1,012,211					1,996			0.79	%				1,042,895					2,041			0.79	%				937,623					2,078			0.88	%
Money market				1,142,858					1,028			0.36	%				1,092,987					958			0.36	%				964,414					841			0.35	%
Certificates of deposit				1,055,939					1,535			0.58	%				1,004,261					1,614			0.65	%				837,174					1,558			0.74	%
Total interest-bearing deposits				4,078,540					6,165			0.61	%				4,085,673					6,361			0.63	%				3,699,464					6,440			0.69	%
FHLB advances				375,385					290			0.31	%				487,600					353			0.29	%				307,859					210			0.27	%
Long-term debt and other interest-bearing liabilities				260,075					4,285			6.61	%				96,379					2,069			8.71	%				98,672					2,099			8.44	%
Total interest-bearing liabilities				4,714,000					10,740			0.91	%				4,669,652					8,783			0.76	%				4,105,995					8,749			0.85	%
Noninterest-bearing deposits				859,420													682,492													577,623
Non-interest-bearing liabilities				49,383													61,947													52,267
Total liabilities				5,622,803													5,414,091													4,735,885
Total stockholders’ equity				630,547													517,335													487,578
Total liabilities and stockholders’ equity			$	6,253,350												$	5,931,426												$	5,223,463
Net interest income/spread								$	54,104			3.45	%								$	51,997			3.55	%								$	46,331			3.49	%
Net interest margin												3.64	%												3.69	%												3.65	%
Ratio of interest-earning assets to interest-bearing liabilities				126.58	%												122.36	%												122.60	%
Total deposits			$	4,937,960				$	6,165			0.50	%			$	4,768,165				$	6,361			0.54	%			$	4,277,087				$	6,440			0.60	%
Total funding (1)			$	5,573,420				$	10,740			0.77	%			$	5,352,144				$	8,783			0.67	%			$	4,683,618				$	8,749			0.76	%

(1)

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

Banc of California, Inc.
Average Balance, Average Yield Earned, and Average Cost Paid, Continued
(Dollars in thousands)
(Unaudited)
			Three Months Ended
			September 30, 2014													June 30, 2014
			Average									Yield				Average									Yield
			Balance					Interest				/ Cost				Balance					Interest				/ Cost
Interest earning assets:
Loans held for sale and SFR mortgage			$	1,757,890				$	16,979			3.83	%			$	1,590,982				$	15,158			3.82	%
Seasoned SFR mortgage loan pools				675,083					11,753			6.91	%				701,006					11,723			6.71	%
Commercial real estate, multi-family, and construction				827,934					9,592			4.60	%				734,472					8,689			4.75	%
Commercial and industrial, SBA, and lease financing				451,992					5,060			4.44	%				418,170					5,413			5.19	%
Other consumer				116,305					1,171			3.99	%				109,063					1,094			4.02	%
Gross loans and leases				3,829,204					44,555			4.62	%				3,553,693					42,077			4.75	%
Securities				257,067					1,460			2.25	%				168,230					993			2.37	%
Other interest-earning assets				142,284					634			1.77	%				136,849					564			1.65	%
Total interest-earning assets				4,228,555					46,649			4.38	%				3,858,772					43,634			4.54	%
Allowance for loan and lease losses				(23,266	)												(20,567	)
BOLI and non-interest earning assets				186,234													196,242
Total assets			$	4,391,523												$	4,034,447
Interest-bearing liabilities:
Savings			$	953,925				$	2,215			0.92	%			$	990,894				$	2,425			0.98	%
Interest-bearing checking				745,635					2,037			1.08	%				660,341					1,864			1.13	%
Money market				681,576					673			0.39	%				603,917					639			0.42	%
Certificates of deposit				688,994					1,240			0.71	%				600,498					1,143			0.76	%
Total interest-bearing deposits				3,070,130					6,165			0.80	%				2,855,650					6,071			0.85	%
FHLB advances				276,739					118			0.17	%				226,429					99			0.18	%
Long-term debt and other interest-bearing liabilities				101,932					2,180			8.48	%				93,345					1,889			8.12	%
Total interest-bearing liabilities				3,448,801					8,463			0.97	%				3,175,424					8,059			1.02	%
Noninterest-bearing deposits				448,825													428,221
Non-interest-bearing liabilities				44,505													45,704
Total liabilities				3,942,131													3,649,349
Total stockholders’ equity				449,392													385,098
Total liabilities and stockholders’ equity			$	4,391,523												$	4,034,447
Net interest income/spread								$	38,186			3.41	%								$	35,575			3.52	%
Net interest margin												3.58	%												3.70	%
Ratio of interest-earning assets to interest-bearing liabilities				122.61	%												121.52	%
Total deposits			$	3,518,955				$	6,165			0.70	%			$	3,283,871				$	6,071			0.74	%
Total funding (1)			$	3,897,626				$	8,463			0.88	%			$	3,603,645				$	8,059			0.90	%

(1)

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

Banc of California, Inc.
Average Balance, Average Yield Earned, and Average Cost Paid, Continued
(Dollars in thousands)
(Unaudited)
			Six Months Ended
			June 30, 2015													June 30, 2014
			Average									Yield				Average									Yield
			Balance					Interest				/ Cost				Balance					Interest				/ Cost
Interest earning assets:
Loans held for sale and SFR mortgage			$	1,914,165				$	36,461			3.84	%			$	1,494,850				$	28,549			3.85	%
Seasoned SFR mortgage loan pools				591,591					19,103			6.51	%				725,960					24,795			6.89	%
Commercial real estate, multi-family, and construction				1,902,507					44,060			4.67	%				709,407					16,909			4.81	%
Commercial and industrial, SBA, and lease financing				635,353					16,110			5.11	%				388,089					11,306			5.87	%
Other consumer				153,766					3,120			4.09	%				104,114					2,048			3.97	%
Gross loans and leases				5,197,382					118,854			4.61	%				3,422,420					83,607			4.93	%
Securities				378,553					4,046			2.16	%				165,633					1,917			2.33	%
Other interest-earning assets				265,248					2,724			2.07	%				126,182					886			1.42	%
Total interest-earning assets				5,841,183					125,624			4.34	%				3,714,235					86,410			4.69	%
Allowance for loan and lease losses				(29,533	)												(19,983	)
BOLI and non-interest earning assets				281,627													187,902
Total assets			$	6,093,277												$	3,882,154
Interest-bearing liabilities:
Savings			$	906,316				$	3,354			0.75	%			$	978,695				$	4,942			1.02	%
Interest-bearing checking				1,027,468					4,037			0.79	%				626,919					3,515			1.13	%
Money market				1,118,060					1,986			0.36	%				559,769					1,275			0.46	%
Certificates of deposit				1,030,243					3,149			0.62	%				559,609					2,074			0.75	%
Total interest-bearing deposits				4,082,087					12,526			0.62	%				2,724,992					11,806			0.87	%
FHLB advances				431,182					643			0.30	%				242,928					199			0.17	%
Long-term debt and other interest-bearing liabilities				178,680					6,354			7.17	%				92,189					3,645			7.97	%
Total interest-bearing liabilities				4,691,949					19,523			0.84	%				3,060,109					15,650			1.03	%
Noninterest-bearing deposits				771,445													422,181
Non-interest-bearing liabilities				55,629													42,353
Total liabilities				5,519,023													3,524,643
Total stockholders’ equity				574,254													357,511
Total liabilities and stockholders’ equity			$	6,093,277												$	3,882,154
Net interest income/spread								$	106,101			3.50	%								$	70,760			3.66	%
Net interest margin												3.66	%												3.84	%
Ratio of interest-earning assets to interest-bearing liabilities
Total deposits			$	4,853,532				$	12,526			0.52	%			$	3,147,173				$	11,806			0.76	%
Total funding (1)			$	5,463,394				$	19,523			0.72	%			$	3,482,290				$	15,650			0.91	%

(1)

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

Banc of California, Inc.
Capital Ratios
(Unaudited)
			June 30,				March 31,				December 31,				September 30,				June 30,
			2015				2015 (1)				2014				2014				2014
Capital Ratios:
Banc of California, Inc.
Total risk-based capital ratio:			14.01	%			11.55	%			11.28	%			14.97	%			15.19	%
Tier 1 risk-based capital ratio:			13.19	%			10.83	%			10.54	%			14.03	%			14.10	%
Common equity tier 1 capital ratio (1)			8.96	%			9.01	%			N/A				N/A				N/A
Tier 1 leverage ratio:			9.55	%			7.99	%			8.57	%			9.28	%			9.89	%
Banc of California, NA
Total risk-based capital ratio:			14.86	%			13.58	%			12.04	%			15.75	%			14.88	%
Tier 1 risk-based capital ratio:			14.04	%			12.86	%			11.29	%			14.80	%			13.79	%
Common equity tier 1 capital ratio (1)			14.04	%			12.86	%			N/A				N/A				N/A
Tier 1 leverage ratio:			10.26	%			9.49	%			9.17	%			9.80	%			9.72	%

(1)

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

Banc of California, Inc.
Non-GAAP Measures
(Dollars in thousands, except per share data)
(Unaudited)
Non-GAAP performance measure:
Tangible common equity to tangible assets ratio and return on average tangible common equity are supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP measures are used by management in the analysis of Banc of California, Inc.’s capital strength and performance of businesses. Tangible equity is calculated by subtracting goodwill and other intangible assets from total stockholders' equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Banc of California, Inc. This disclosure should not be viewed as a substitution for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The following tables reconcile this non-GAAP performance measures to the GAAP performance measures for the periods indicated:
			June 30,					March 31,					December 31,					September 30,					June 30,
			2015					2015					2014					2014					2014
Tangible common equity to tangible assets ratio
Total assets			$	6,437,882				$	6,097,355				$	5,971,297				$	4,537,826				$	4,386,331
Less goodwill				(31,591	)				(31,591	)				(31,591	)				(31,591	)				(32,150	)
Less other intangible assets				(21,905	)				(23,708	)				(25,252	)				(10,829	)				(10,959	)
Tangible assets			$	6,384,386				$	6,042,056				$	5,914,454				$	4,495,406				$	4,343,222
Total stockholders' equity			$	633,882				$	514,160				$	503,315				$	446,711				$	439,127
Less preferred stock				(190,750	)				(79,877	)				(79,877	)				(79,877	)				(79,877	)
Less goodwill				(31,591	)				(31,591	)				(31,591	)				(31,591	)				(32,150	)
Less other intangible assets				(21,905	)				(23,708	)				(25,252	)				(10,829	)				(10,959	)
Tangible common equity			$	389,636				$	378,984				$	366,595				$	324,414				$	316,141
Total stockholders' equity to total assets				9.85	%				8.43	%				8.43	%				9.84	%				10.01	%
Tangible common equity to tangible assets				6.10	%				6.27	%				6.20	%				7.22	%				7.28	%
Common stock outstanding				35,647,476					35,063,199					34,190,740					28,023,701					27,032,464
Class B non-voting non-convertible common stock outstanding				-					11					609,195					602,783					596,018
Total common stock outstanding				35,647,476					35,063,210					34,799,935					28,626,484					27,628,482
Minimum number of shares issuable under purchase contracts (1)				2,883,892					2,984,367					3,215,538					4,198,425					5,101,326
Total common stock outstanding and shares issuable under purchase contracts				38,531,368					38,047,577					38,015,473					32,824,909					32,729,808
(1) Purchase contracts relating to the tangible equity units
Tangible common equity per common stock			$	10.93				$	10.81				$	10.53				$	11.33				$	11.44
Book value per common stock			$	12.43				$	12.39				$	12.17				$	12.81				$	13.00
Tangible equity per common stock and shares issuable under purchase contracts			$	10.11				$	9.96				$	9.64				$	9.88				$	9.66
Book value per common stock and shares issuable under purchase contracts			$	11.50				$	11.41				$	11.14				$	11.18				$	10.98

Banc of California, Inc.
Non-GAAP Measures, Continued
(Dollars in thousands, except per share data)
(Unaudited)
			Three Months Ended																									Six Months Ended
			June 30,					March 31,					December 31,					September 30,					June 30,					June 30,					June 30,
			2015					2015					2014					2014					2014					2015					2014
Return on tangible common equity
Average total stockholders' equity			$	630,547				$	517,335				$	487,578				$	449,392				$	385,098				$	574,254				$	357,511
Less average preferred stock				(182,233	)				(79,877	)				(79,877	)				(79,877	)				(79,877	)				(131,338	)				(79,877	)
Less average goodwill				(31,591	)				(31,591	)				(33,129	)				(32,209	)				(33,020	)				(31,591	)				(31,978	)
Less average other intangible assets				(23,032	)				(24,720	)				(13,611	)				(10,634	)				(10,871	)				(23,871	)				(11,349	)
Average tangible common equity			$	393,691				$	381,147				$	360,961				$	326,672				$	261,330				$	387,454				$	234,307
Net income			$	15,924				$	12,574				$	10,110				$	11,247				$	8,099				$	28,498				$	8,848
Less preferred stock dividends				(2,843	)				(910	)				(910	)				(910	)				(910	)				(3,753	)				(1,820	)
Add tax-effected amortization of intangible assets (1)				1,004					1,004					849					579					614					2,008					1,224
Add tax-effected impairment on intangible assets (1)				168					-					31					-					-					168					-
Net income available to common stockholders			$	14,253				$	12,668				$	10,080				$	10,916				$	7,803				$	26,921				$	8,252
(1) Utilized a 35% effective tax rate
Return on average equity				10.13	%				9.86	%				8.23	%				9.93	%				8.44	%				10.01	%				4.99	%
Return on average tangible common equity				14.52	%				13.48	%				11.08	%				13.26	%				11.98	%				14.01	%				7.10	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006759/en/

INVESTOR RELATIONS INQUIRIES:

Banc of California, Inc.

Timothy Sedabres, 855-361-2262

or

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David Herbst, 213-973-4113 x101

Source: Banc of California, Inc.