Banc of California Reports Third Quarter 2020 Financial Results
SANTA ANA, Calif.–(BUSINESS WIRE)–Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders for the third quarter of 2020 of $12.1 million, or diluted earnings per common share of $0.24.
Highlights for the third quarter included:
- Noninterest-bearing deposit balances increased $59.2 million during the quarter and represented 24% of total deposits at September 30, 2020, up from 19% a year earlier
- Total checking balances increased $257.7 million during the quarter and represented 58% of total deposits at September 30, 2020, up from 45% a year earlier
- Net interest margin remained stable at 3.09%
- Average cost of total deposits declined 20 basis points from the prior quarter to 0.51%, with period-end cost of deposits at 0.39%
- Total deferrals/forbearances declined to $282.5 million at September 30, 2020 from $604.2 million
- Allowance for credit losses remained strong at 1.66% of total loans
- Common Equity Tier 1 capital at 11.64%
Jared Wolff, President & CEO of Banc of California, commented, “Our third quarter results reflect the growing earnings momentum that we have been building following nearly 18 months of restructuring our operations. Our strong execution on the strategies we have identified to enhance the value of our franchise continued to result in positive trends on many fronts including a further reduction in our cost of deposits, a stable net interest margin, and improved operating efficiencies. These efforts translated into a significant improvement in earnings and pre-tax pre-provision income.”
“Our business development efforts continue to gain traction despite the impact of the COVID-19 pandemic. We are consistently adding new commercial banking relationships, which resulted in our fifth consecutive quarter of demand deposit account growth and further improvement in our mix of deposits. The commercial banking team we have built is also effectively bringing in new, high quality commercial loans to offset the planned run-off of our single-family residential portfolio. As a result, we saw an increase in total loan balances in the third quarter, while our mix of loans continued to shift more towards relationship-based business loans.”
“We believe that we continue to have many levers to pull that will further improve our financial performance. While the ongoing pandemic creates a level of near-term uncertainty, we believe that over the longer-term, we are very well positioned to generate earning asset growth, expand our net interest margin, realize additional operating leverage, and deliver a higher level of earnings and returns for our shareholders as the economy strengthens,” said Mr. Wolff.
Lynn Hopkins, Chief Financial Officer of Banc of California, said, “We are very pleased with our third quarter performance and results which are a reflection of executing on our strategic vision. Our net interest margin remained unchanged at 3.09% as we successfully lowered our average cost of funds 21 basis points which helped absorb the decrease in our average earning assets yield. Our period end total deposits costs also fell 20 basis points to 39 basis points. Our loan portfolio remains well-positioned as it is heavily weighted towards real estate loans with low loan-to-values and we saw lower levels of loans on deferment and forbearance. Our allowance for credit losses to total loans was 1.66% and is a reflection of the considerable uncertainty of the timing and magnitude of the impact of the pandemic. Nonetheless, we are confident in our ability to continue to execute on our initiatives and optimize our capital in ways that will be accretive to earnings and create further value for our shareholders.”
Income Statement Highlights
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
||||||||||||||
|
|
($ in thousands) |
||||||||||||||||||||||||||
|
Total interest and dividend income |
$ |
69,666 |
$ |
72,697 |
|
$ |
74,714 |
|
$ |
83,702 |
|
$ |
92,657 |
|
$ |
217,077 |
|
$ |
307,409 |
|
|||||||
|
Total interest expense |
13,811 |
17,382 |
|
22,853 |
|
27,042 |
|
33,742 |
|
54,046 |
|
115,906 |
|
||||||||||||||
|
Net interest income |
55,855 |
55,315 |
|
51,861 |
|
56,660 |
|
58,915 |
|
163,031 |
|
191,503 |
|
||||||||||||||
|
Total noninterest income |
3,954 |
5,528 |
|
2,061 |
|
4,930 |
|
3,181 |
|
11,543 |
|
7,186 |
|
||||||||||||||
|
Total revenue |
59,809 |
60,843 |
|
53,922 |
|
61,590 |
|
62,096 |
|
174,574 |
|
198,689 |
|
||||||||||||||
|
Total noninterest expense |
40,394 |
72,770 |
|
46,919 |
|
47,483 |
|
43,240 |
|
160,083 |
|
148,989 |
|
||||||||||||||
|
Pre-tax / pre-provision income (loss) |
19,415 |
(11,927 |
) |
7,003 |
|
14,107 |
|
18,856 |
|
14,491 |
|
49,700 |
|
||||||||||||||
|
Provision for (reversal of) credit losses |
1,141 |
11,826 |
|
15,761 |
|
(2,976 |
) |
38,607 |
|
28,728 |
|
38,805 |
|
||||||||||||||
|
Income tax expense (benefit) |
2,361 |
(5,304 |
) |
(2,165 |
) |
2,811 |
|
(5,619 |
) |
(5,108 |
) |
1,408 |
|
||||||||||||||
|
Net income (loss) |
$ |
15,913 |
$ |
(18,449 |
) |
$ |
(6,593 |
) |
$ |
14,272 |
|
$ |
(14,132 |
) |
$ |
(9,129 |
) |
$ |
9,487 |
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net income (loss) available to common stockholders(1) |
$ |
12,084 |
$ |
(21,936 |
) |
$ |
(9,694 |
) |
$ |
10,415 |
|
$ |
(22,722 |
) |
$ |
(19,265 |
) |
$ |
(8,015 |
) |
|||||||
|
(1) |
Balance represents the net income (loss) available to common stockholders after subtracting preferred stock dividends, income allocated to participating securities, participating securities dividends and impact of preferred stock redemption from net income (loss). Refer to the Statement of Operations for additional detail on these amounts. |
|
Net interest income
Q3-2020 vs Q2–2020
Net interest income increased $0.5 million to $55.9 million for the third quarter due mostly to lower funding costs, offset by lower yields on interest-earning assets. Compared to the prior quarter, average interest-earning assets declined by $14.4 million to $7.18 billion, due to lower average loans of $174.0 million, offset by higher average securities of $126.8 million and other interest-earning assets of $32.8 million. During the third quarter, average deposits increased $164.3 million, consisting of higher average interest-bearing deposits of $156.6 million and higher average noninterest-bearing deposits of $7.7 million. Average FHLB advances decreased $211.0 million due to current quarter deposit growth and the impact of the early payoff of $100.0 million in FHLB advances at the end of the second quarter.
The net interest margin remained unchanged compared to the prior quarter at 3.09% for the third quarter as the average cost of funds decreased 21 basis points, offset by a 20 basis point decrease in the average earning-assets yield. The yield on average interest-earning assets decreased to 3.86% for the third quarter from 4.06% for the second quarter due to lower yields on most interest-earning asset classes and the change in the mix of interest-earning assets. The average yield on loans declined only 2 basis points to 4.46% during the third quarter as higher prepayment penalty fees and PPP fee income helped to offset the decreases in loan yields due to the mix of loans and lower interest rate environment. The third quarter includes $2.1 million of PPP fee income, which increased the net interest margin by 11 basis points, compared to $1.7 million in the second quarter which increased the net interest margin by 10 basis points. The average yield on securities decreased 69 basis points to 2.26% due mostly to a 106 basis point decrease in the collateralized loan obligations (CLOs) yield to 2.16% for the third quarter from 3.22% for the second quarter as these securities reprice quarterly.
The average cost of funds decreased 21 basis points to 0.82% for the third quarter from 1.03% for the second quarter. This decrease was driven by the lower average cost of interest-bearing liabilities and improved funding mix, including higher average noninterest-bearing deposits during the third quarter. We continue to reduce our reliance on high cost transaction accounts, non-brokered certificates of deposits, and wholesale funds as we continue to execute on our relationship-focused business banking strategy. The average cost of interest-bearing liabilities decreased 27 basis points to 1.02% for the third quarter from 1.29% for the second quarter due to actively managing down the cost of interest-bearing deposits into the current rate environment. The average cost of interest-bearing deposits declined 27 basis points to 0.66% for the third quarter from 0.93% for the prior quarter. Additionally, average noninterest-bearing deposits increased by $7.7 million and represented 22.9% of total average deposits in the third quarter compared to 23.4% of total average deposits for the second quarter. Our total cost of average deposits decreased 20 basis points to 0.51% for the third quarter. The spot rate of total deposits at the end of the third quarter of 2020 was 0.39%.
YTD 2020 vs YTD 2019
Net interest income for the nine months ended September 30, 2020 decreased $28.5 million to $163.0 million from $191.5 million for the same 2019 period. Net interest income was impacted by the overall decrease in market interest rates between periods and lower average interest-earning assets, as a result of targeted sales of securities and loans during 2019, in line with our strategy of remixing the loan portfolio towards relationship-based lending, offset by a higher net interest margin. For the nine months ended September 30, 2020, average interest-earning assets declined $1.87 billion to $7.14 billion, and the net interest margin increased 21 basis points to 3.05% for the nine months ended September 30, 2020 compared to 2.84% for the same 2019 period.
Our average yield on interest-earning assets decreased 50 basis points to 4.06% for the nine months ended September 30, 2020 as compared to 4.56% during the same 2019 period. The decrease in yield was primarily attributable to lower average yields on the loan and securities portfolios. Our average yield on loans was 4.50% for the nine months ended September 30, 2020, compared to 4.77% for the same 2019 period, primarily due to lower market interest rates and a lower percentage of higher-yielding commercial and industrial balances in the portfolio. Our average yield on securities decreased 109 basis points due mostly to CLOs repricing into the lower rate environment and a decrease in average CLO balances.
The average cost of funds decreased to 1.08% for the nine months ended September 30, 2020 from 1.83% for the same 2019 period. This decrease was driven by the lower average cost of interest-bearing liabilities and the improved funding mix, including higher average noninterest-bearing deposits. The 74 basis point decline in the average cost of interest-bearing liabilities to 1.34% for the nine months ended September 30, 2020 from 2.08% for the same 2019 period was driven by the lower average cost of interest-bearing deposits as they reprice into the lower interest rate environment and the lower average cost of FHLB term advances resulting from maturities and early repayments during the year and as a result of the refinancing of advances during the second quarter of 2020. The average cost of interest-bearing deposits declined 89 basis points to 0.98% from the prior period due to actively managing down deposit rates in response to the interest rate cuts by the Federal Reserve in March of 2020 and a lower reliance on brokered deposits. Additionally, average noninterest-bearing deposits increased by $245.8 million when compared to the same 2019 period. Our cost of average total deposits decreased 83 basis points to 0.76% for the nine months ended September 30, 2020 when compared to the same 2019 period.
Provision for credit losses
Q3-2020 vs Q2–2020
The provision for credit losses totaled $1.1 million for the third quarter, compared to $11.8 million for the second quarter. The third quarter provision for credit losses is comprised of $0.9 million in general reserves and $1.2 million related to specific reserves, offset by provision release of $1.0 million related to unfunded commitments. The general provision is due to changes in key macro-economic forecast variables, such as unemployment and gross domestic product, improved credit quality metrics, and higher period end loan balances of $50.3 million.
YTD 2020 vs YTD 2019
During the nine months ended September 30, 2020, the provision for credit losses totaled $28.7 million under the CECL model, compared to $38.8 million under the incurred loss model during 2019. The lower provision for credit losses was primarily the result of lower net charge-offs and lower period end loan balances of $705.3 million, offset by increases from using the new CECL model, the estimated future impact of the health crisis on our loans, and higher specific reserves.
Noninterest income
Q3-2020 vs Q2–2020
Noninterest income decreased $1.6 million, or 28%, to $4.0 million for the third quarter due mostly to lower gains on sale of securities. The second quarter of 2020 included a $2.0 million gain on the sale of $20.7 million in securities; there were no sales of securities in the third quarter. The third quarter included a $0.3 million gain on sale of $17.8 million in single-family residential mortgage loans held for sale; there were no sales of loans during second quarter of 2020.
YTD 2020 vs YTD 2019
Noninterest income for the nine months ended September 30, 2020 increased $4.4 million, or 60.6%, to $11.5 million compared to the prior year. The increase was primarily attributable to (i) higher net gain on sale of investment securities of $6.9 million, and (ii) higher other income of $7.4 million as the third quarter of 2019 included a previously reported $9.6 million realized loss from interest rate swap agreements entered into in order to offset variability in the fair value of the Freddie Mac securitization completed during the third quarter of 2019. These increases were partially offset by (i) lower net gain on sale of loans of $8.4 million as the third quarter of 2019 included a $9.0 million realized gain from the aforementioned securitization, (ii) a $1.6 million loss due to decreases in the fair value of loans held for sale, and (iii) lower customer fees of $0.7 million.
Noninterest expense
Q3-2020 vs Q2–2020
Noninterest expense decreased $32.4 million to $40.4 million for the third quarter compared to the prior quarter. The decrease was primarily due to the second quarter of 2020 including a $26.8 million charge related to the termination of the LAFC naming rights agreements and a $2.5 million debt extinguishment fee, included in all other expenses, associated with the early repayment of certain FHLB term advances. There were no similar expenses during the third quarter. In addition, noninterest expense decreased during the quarter due to (i) lower salaries and benefits expense of $1.0 million due mostly to lower incentive accruals, (ii) a larger gain on investments in alternative energy partnerships of $1.3 million, and (iii) lower advertising costs of $0.9 million due to the termination of the LAFC naming rights agreements. These decreases were partially offset by higher professional fees of $0.6 million. Total operating costs, defined as noninterest expense adjusted for certain non-core items (refer to section Non-GAAP Measures), decreased $2.1 million to $40.7 million for the third quarter compared to $42.8 million for the prior quarter.
YTD 2020 vs YTD 2019
Noninterest expense for the nine months ended September 30, 2020 increased $11.1 million, or 7.4%, to $160.1 million compared to the prior year. The increase was primarily due to: (i) the aforementioned $26.8 million one-time charge related to the termination of our LAFC naming rights agreements, (ii) a $2.5 million debt extinguishment fee, included in all other expenses, associated with the early repayment of certain FHLB term advances, and (iii) higher professional fees of $6.1 million, due to overall reductions in recoveries of $18.4 million related to indemnified legal fees for resolved legal proceedings and various other litigations. These increases were offset by: (i) $4.0 million in lower consulting fees for bank projects and initiatives, (ii) lower salaries and benefits expense of $10.9 million resulting from lower headcount, (iii) lower advertising costs of $3.1 million due to the termination of our LAFC naming rights agreements and reductions in overall events and media spending, and (iv) lower regulatory assessments of $3.9 million due to changes in our asset size and an FDIC assessment credit.
Income taxes
Q3-2020 vs Q2–2020
Income tax expense totaled $2.4 million for the third quarter resulting in an effective tax rate of 12.9% compared to a $5.3 million benefit for the second quarter resulting in an effective tax rate of 22.3%. Based on our actual and projected level of earnings and permanent tax differences for 2020, our estimated effective tax rate for the full year was refined this quarter to a negative tax rate ranging from approximately 10% to 15%. As a result of the change, we expect our fourth quarter effective tax rate to be approximately 25%.
YTD 2020 vs YTD 2019
Income tax benefit totaled $5.1 million for the nine months ended September 30, 2020, representing an effective tax rate of 35.9%, compared to a $1.4 million expense and an effective tax rate of 12.9% for nine months ended September 30, 2019.
Balance Sheet
At September 30, 2020, total assets were $7.74 billion, which represented a linked-quarter decrease of $32.0 million. The following table shows selected balance sheet line items as of the dates indicated.
|
|
As of and for the Three Months Ended |
|
Amount Change |
|||||||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
Q3-20 vs. Q2-20 |
|
Q3-20 vs. Q3-19 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
($ in thousands) |
|||||||||||||||||||||||||||
|
Total assets |
$ |
7,738,106 |
|
$ |
7,770,138 |
|
$ |
7,662,607 |
|
$ |
7,828,410 |
|
$ |
8,625,337 |
|
$ |
(32,032 |
) |
$ |
(887,231 |
) |
|||||||
|
Securities available-for-sale |
$ |
1,245,867 |
|
$ |
1,176,029 |
|
$ |
969,427 |
|
$ |
912,580 |
|
$ |
775,662 |
|
$ |
69,838 |
|
$ |
470,205 |
|
|||||||
|
Loans held-for-investment |
$ |
5,678,002 |
|
$ |
5,627,696 |
|
$ |
5,667,464 |
|
$ |
5,951,885 |
|
$ |
6,383,259 |
|
$ |
50,306 |
|
$ |
(705,257 |
) |
|||||||
|
Loans held-for-sale |
$ |
1,849 |
|
$ |
19,768 |
|
$ |
20,234 |
|
$ |
22,642 |
|
$ |
23,936 |
|
$ |
(17,919 |
) |
$ |
(22,087 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Demand deposits |
$ |
3,495,859 |
|
$ |
3,238,202 |
|
$ |
2,828,470 |
|
$ |
2,622,398 |
|
$ |
2,602,011 |
|
$ |
257,657 |
|
$ |
893,848 |
|
|||||||
|
Other core deposits |
2,446,593 |
|
2,619,502 |
|
2,515,703 |
|
2,794,769 |
|
3,074,936 |
|
(172,909 |
) |
(628,343 |
) |
||||||||||||||
|
Brokered deposits |
89,814 |
|
179,761 |
|
218,665 |
|
10,000 |
|
93,111 |
|
(89,947 |
) |
(3,297 |
) |
||||||||||||||
|
Total Deposits |
$ |
6,032,266 |
|
$ |
6,037,465 |
|
$ |
5,562,838 |
|
$ |
5,427,167 |
|
$ |
5,770,058 |
|
$ |
(5,199 |
) |
$ |
262,208 |
|
|||||||
|
As percentage of total deposits |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Demand deposits |
57.95 |
% |
53.64 |
% |
50.85 |
% |
48.32 |
% |
45.10 |
% |
4.31 |
% |
12.85 |
% |
||||||||||||||
|
Other core deposits |
40.56 |
% |
43.39 |
% |
45.22 |
% |
51.50 |
% |
53.29 |
% |
(2.83 |
)% |
(12.73 |
)% |
||||||||||||||
|
Brokered deposits |
1.49 |
% |
2.98 |
% |
3.93 |
% |
0.18 |
% |
1.61 |
% |
(1.49 |
)% |
(0.12 |
)% |
||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Average loan yield |
4.46 |
% |
4.48 |
% |
4.56 |
% |
4.71 |
% |
4.75 |
% |
(0.02 |
)% |
(0.29 |
)% |
||||||||||||||
|
Average cost of interest-bearing deposits |
0.66 |
% |
0.93 |
% |
1.41 |
% |
1.57 |
% |
1.78 |
% |
(0.27 |
)% |
(1.12 |
)% |
||||||||||||||
|
Average cost of total deposits |
0.51 |
% |
0.71 |
% |
1.11 |
% |
1.27 |
% |
1.48 |
% |
(0.20 |
)% |
(0.97 |
)% |
||||||||||||||
Investments
Securities available-for-sale increased $69.8 million to $1.25 billion at September 30, 2020 due to purchases of $48.5 million and lower unrealized net losses of $23.9 million. The decrease in the unrealized net losses was due mostly to credit spreads tightening during the quarter for a positive change on the pricing of the CLOs and corporate debt securities. Securities purchased included municipal bonds, government agency securities and floating rate SBA pool securities. There were no sales of securities during the third quarter. As of September 30, 2020, our securities portfolio included $685.9 million of CLOs, $325.8 million of agency securities, $69.2 million of municipal securities, $146.9 million of corporate debt securities, and $17.8 million of SBA pool securities. The CLO portfolio, which is comprised only of AA and AAA rated securities, represented 55.1% of the total securities portfolio and the carrying value included an unrealized net loss of $17.7 million at September 30, 2020 compared to an unrealized net loss of $35.3 million at June 30, 2020.
Loans
The following table sets forth the composition, by loan category, of our loan portfolio as of the dates indicated:
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||||
|
|
($ in thousands) |
|||||||||||||||||||
|
Composition of held-for-investment loans |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Commercial real estate |
$ |
826,683 |
|
|
$ |
822,694 |
|
|
$ |
810,024 |
|
|
$ |
818,817 |
|
|
$ |
891,029 |
|
|
|
Multifamily |
1,476,803 |
|
|
1,434,071 |
|
|
1,466,083 |
|
|
1,494,528 |
|
|
1,563,757 |
|
||||||
|
Construction |
197,629 |
|
|
212,979 |
|
|
227,947 |
|
|
231,350 |
|
|
228,561 |
|
||||||
|
Commercial and industrial |
1,586,824 |
|
|
1,436,990 |
|
|
1,578,223 |
|
|
1,691,270 |
|
|
1,789,478 |
|
||||||
|
SBA |
320,573 |
|
|
310,784 |
|
|
70,583 |
|
|
70,981 |
|
|
75,359 |
|
||||||
|
Total commercial loans |
4,408,512 |
|
|
4,217,518 |
|
|
4,152,860 |
|
|
4,306,946 |
|
|
4,548,184 |
|
||||||
|
Single-family residential mortgage |
1,234,479 |
|
|
1,370,785 |
|
|
1,467,375 |
|
|
1,590,774 |
|
|
1,775,953 |
|
||||||
|
Other consumer |
35,011 |
|
|
39,393 |
|
|
47,229 |
|
|
54,165 |
|
|
59,122 |
|
||||||
|
Total consumer loans |
1,269,490 |
|
|
1,410,178 |
|
|
1,514,604 |
|
|
1,644,939 |
|
|
1,835,075 |
|
||||||
|
Total gross loans |
$ |
5,678,002 |
|
|
$ |
5,627,696 |
|
|
$ |
5,667,464 |
|
|
$ |
5,951,885 |
|
|
$ |
6,383,259 |
|
|
|
Composition percentage of held-for-investment loans |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Commercial real estate |
14.6 |
% |
|
14.6 |
% |
|
14.3 |
% |
|
13.8 |
% |
|
14.0 |
% |
||||||
|
Multifamily |
26.0 |
% |
|
25.5 |
% |
|
25.9 |
% |
|
25.1 |
% |
|
24.5 |
% |
||||||
|
Construction |
3.5 |
% |
|
3.8 |
% |
|
4.0 |
% |
|
3.9 |
% |
|
3.6 |
% |
||||||
|
Commercial and industrial |
28.0 |
% |
|
25.5 |
% |
|
27.9 |
% |
|
28.4 |
% |
|
28.0 |
% |
||||||
|
SBA |
5.6 |
% |
|
5.5 |
% |
|
1.2 |
% |
|
1.2 |
% |
|
1.2 |
% |
||||||
|
Total commercial loans |
77.7 |
% |
|
74.9 |
% |
|
73.3 |
% |
|
72.4 |
% |
|
71.3 |
% |
||||||
|
Single-family residential mortgage |
21.7 |
% |
|
24.4 |
% |
|
25.9 |
% |
|
26.7 |
% |
|
27.8 |
% |
||||||
|
Other consumer |
0.6 |
% |
|
0.7 |
% |
|
0.8 |
% |
|
0.9 |
% |
|
0.9 |
% |
||||||
|
Total consumer loans |
22.3 |
% |
|
25.1 |
% |
|
26.7 |
% |
|
27.6 |
% |
|
28.7 |
% |
||||||
|
Total gross loans |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
||||||
Held-for-investment loans increased $50.3 million to $5.68 billion from the prior quarter, resulting from higher commercial and industrial (C&I) loans of $149.8 million due, in part, to increased utilization of credit facilities, and higher multifamily loans of $42.7 million. These increases were offset partially by lower single-family residential mortgage loans of $136.3 million and construction loans of $15.4 million. The decline in single-family residential is attributed to payoffs as the loans refinance away in the lower rate environment. The decline in construction loans is attributed to general fluctuations in volume and certain payoffs. At September 30, 2020, SBA loans included $255.8 million of PPP loans, net of fees.
We continue to focus the real estate loan portfolio toward relationship-based multifamily, bridge, light infill construction, and commercial real estate loans. Currently, loans secured by residential real estate (single-family, multifamily, single-family construction, and warehouse credit facilities) represent approximately 67% of our total loans outstanding.
The C&I portfolio has limited exposure to certain business sectors undergoing severe stress. The C&I industry concentrations in dollars and as a percentage of total outstanding C&I loan balances are summarized below:
|
|
September 30, 2020 |
||||||
|
|
Amount |
|
% of Portfolio |
||||
|
|
($ in thousands) |
||||||
|
C&I Portfolio by Industry |
|
|
|
||||
|
Finance and insurance (includes Warehouse lending) |
$ |
932,887 |
|
|
59 |
% |
|
|
Real estate and rental leasing |
204,182 |
|
|
13 |
% |
||
|
Gas stations |
70,630 |
|
|
4 |
% |
||
|
Manufacturing |
50,747 |
|
|
3 |
% |
||
|
Healthcare |
67,789 |
|
|
4 |
% |
||
|
Wholesale trade |
40,232 |
|
|
3 |
% |
||
|
Other retail trade |
37,157 |
|
|
2 |
% |
||
|
Television/motion pictures |
31,310 |
|
|
2 |
% |
||
|
Food services |
29,835 |
|
|
2 |
% |
||
|
Professional services |
13,878 |
|
|
1 |
% |
||
|
Transportation |
5,480 |
|
|
— |
% |
||
|
Accommodations |
1,473 |
|
|
— |
% |
||
|
All other |
101,224 |
|
|
6 |
% |
||
|
Total |
$ |
1,586,824 |
|
|
100 |
% |
|
Deposits
The following table sets forth the composition of our deposits at the dates indicated.
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||||
|
|
($ in thousands) |
|||||||||||||||||||
|
Composition of deposits |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Noninterest-bearing checking |
$ |
1,450,744 |
|
|
$ |
1,391,504 |
|
|
$ |
1,256,081 |
|
|
$ |
1,088,516 |
|
|
$ |
1,107,442 |
|
|
|
Interest-bearing checking |
2,045,115 |
|
|
1,846,698 |
|
|
1,572,389 |
|
|
1,533,882 |
|
|
1,503,208 |
|
||||||
|
Money market |
689,769 |
|
|
765,854 |
|
|
575,820 |
|
|
715,479 |
|
|
695,530 |
|
||||||
|
Savings |
946,293 |
|
|
939,018 |
|
|
877,947 |
|
|
885,246 |
|
|
1,042,162 |
|
||||||
|
Non-brokered certificates of deposit |
820,531 |
|
|
924,630 |
|
|
1,071,936 |
|
|
1,204,044 |
|
|
1,367,284 |
|
||||||
|
Brokered certificates of deposit |
79,814 |
|
|
169,761 |
|
|
208,665 |
|
|
— |
|
|
54,432 |
|
||||||
|
Total deposits |
$ |
6,032,266 |
|
|
$ |
6,037,465 |
|
|
$ |
5,562,838 |
|
|
$ |
5,427,167 |
|
|
$ |
5,770,058 |
|
|
|
Composition percentage of deposits |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Noninterest-bearing checking |
24.1 |
% |
|
23.0 |
% |
|
22.6 |
% |
|
20.1 |
% |
|
19.2 |
% |
||||||
|
Interest-bearing checking |
33.9 |
% |
|
30.6 |
% |
|
28.3 |
% |
|
28.2 |
% |
|
26.1 |
% |
||||||
|
Money market |
11.4 |
% |
|
12.7 |
% |
|
10.3 |
% |
|
13.2 |
% |
|
12.0 |
% |
||||||
|
Savings |
15.7 |
% |
|
15.6 |
% |
|
15.8 |
% |
|
16.3 |
% |
|
18.1 |
% |
||||||
|
Non-brokered certificates of deposit |
13.6 |
% |
|
15.3 |
% |
|
19.3 |
% |
|
22.2 |
% |
|
23.7 |
% |
||||||
|
Brokered certificates of deposit |
1.3 |
% |
|
2.8 |
% |
|
3.7 |
% |
|
— |
% |
|
0.9 |
% |
||||||
|
Total deposits |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
||||||
Contacts
Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (949) 385-8700
Lynn Hopkins, (949) 265-6599