Banc of California’ mission and vision guide its strategic plan. The
Company is focused on California and core banking products and services designed
to cater to the unique needs of Californias diverse private businesses, entrepreneurs
and communities.
As part of delivering on our value proposition to clients, we offer a variety
of financial products and services designed around our target client in order
to serve all of their banking and financial needs. This includes both deposit
products offered through the Companys multiple channels that include retail
banking, business banking and private banking, as well as lending products including
residential mortgage lending, commercial lending, commercial real estate lending,
multifamily lending, and specialty lending including Small Business Administration
(SBA) lending, commercial specialty finance and construction lending.
The Bank’s deposit and banking product and service offerings include checking,
savings, money market, certificates of deposit, retirement accounts as well
as online, telephone, and mobile banking, automated bill payment, cash and treasury
management, master demand accounts, foreign exchange, interest rate swaps, trust
services, card payment services, remote and mobile deposit capture, ACH origination,
wire transfer, direct deposit, and safe deposit boxes. Bank customers also have
the ability to access their accounts through a nationwide network of over 55,000
surcharge-free ATMs.
Our operations are managed based on the operating results of four reportable
segments: Commercial Banking, Mortgage Banking, Financial Advisory, and Corporate/Other.
Our chief operating decision-maker uses financial information from our four
reportable segments to make operating and strategic decisions. For financial
information about our reportable segments,
The Company offers a number of commercial and consumer loan products, including
commercial and industrial loans, commercial real estate loans, multi-family
loans, SBA guaranteed business loans, construction and renovation loans, lease
financing, single family residential (SFR) mortgage loans, warehouse loans,
asset-, insurance- or security-backed loans, home equity lines of credit (HELOCs),
consumer and business lines of credit, and other consumer loans.
Legal lending limits are calculated in conformance with OCC regulations, which
prohibit a national bank from lending to any one individual or entity or its
related interests on any amount that exceeds 15 percent of the bank’s
capital and surplus, plus an additional 10 percent of the bank’s capital
and surplus, if the amount that exceeds the bank’s 15 percent general
limit is fully secured by readily marketable collateral.
Commercial and industrial loans are made to finance operations, provide working
capital, or to finance the purchase of assets, equipment or inventory. A borrower’s
cash flow from operations is generally the primary source of repayment. Accordingly,
our policies provide specific guidelines regarding debt coverage and other financial
ratios. Commercial and industrial loans include lines of credit and commercial
term loans. Lines of credit are extended to businesses or individuals based
on the financial strength and integrity of the borrower and guarantor(s) and
generally are collateralized by short-term assets such as accounts receivable,
inventory, equipment or real estate and have a maturity of one year or less.
Commercial term loans are typically made to finance the acquisition of fixed
assets or refinance short-term debt originally used to purchase fixed assets.
Commercial term loans generally have terms of one to five years. They may be
collateralized by the asset being acquired or other available assets.
Commercial real estate and multi-family real estate loans are secured primarily
by multi-family dwellings, industrial/warehouse buildings, anchored and non-anchored
retail centers, office buildings and hospitality properties, on a limited basis,
primarily located in the Company’s market area, and throughout the West
Coast.
The Company’s loans secured by multi-family and commercial real estate
are originated with either a fixed or adjustable interest rate. The interest
rate on adjustable-rate loans is based on a variety of indices, generally determined
through negotiation with the borrower. LTV ratios on these loans typically do
not exceed 75 percent of the appraised value of the property securing the loan.
These loans typically require monthly payments, may contain balloon payments
and generally have maximum maturities of 30 years.
The Company provides numerous SBA loan products through the Bank. The Bank’s
Preferred Lender Program (PLP) status generally gives it the authority to make
the final credit decision and have most servicing and liquidation authority.
Commercial equipment leasing and financing was introduced as a product in the
third quarter of 2012 to meet the needs of small and medium-sized businesses
for growth through investments in commercial equipment. The Company provides
full payout capital leases and equipment finance agreements for essential use
equipment to small and medium sized business nationally. The terms are 1 to
7 years in length and generally provide more flexibility to meet the equipment
obsolescence needs of small and medium sized businesses than traditional business
loans.
Our construction loans primarily relates to single family residential properties.
The Company may in the future originate or purchase loans or participations
in construction, renovation and rehabilitation loans on residential, multi-family
and/or commercial real estate properties.
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