Large Banks

Banc of California

2/1/19: Banc's turnaround isn't happening as expected.

Banc reported December quarter earnings of $0.13 per share, $0.10 below analyst forecasts, and up $0.01 vs. year-ago. Return on equity (tangible) 4.19% vs. 3.84%. Net interest income down 3% vs. year-ago to $70.682 million. Net interest margin 2.93% vs. 3.15%. Non-interest income down 57% to $2.448 million. Ending loan and deposit balances $7.701 billion, up 16%, and $7.917 billion, up 9% vs. year-ago. Non-performing loans even with year-ago at 0.29% of total loans. Book value down 4% to $14.10 per share. Higher loan and deposit balances didn't translate to earnings growth. Mixed, but mostly disappointing numbers.

Expected FY 12/2019 EPS Growth: 132% FY 2019 P/E: 11

Background
When we added BANC, it operated full service banks in San Diego, Orange and Los Angeles counties as well as loan production offices in a variety of states. In February 2017, BANC sold its mortgage loan business.

Quarterly Reports

September '18: EPS (adjusted) $0.22, down $0.02 vs. year-ago. Return on equity (tangible) 2.49% vs. 7.16%. Net interest income down 6% vs. year-ago to $71.322 million. Net interest margin 2.93% vs. 3.15%. Non-interest income down 74% to $4.824 million. Ending loan and deposit balances $7.402 billion, even with year-ago, and $7.253 billion, up 16% vs. year-ago. Non-performing loans 0.35% of total loans vs. 0.20%. Book value $14.13 vs. year-ago $14.74.

June '18: EPS 0.18, up 29%. Return on equity (tangible) 6.03% vs. 4.51%. Net interest income down 4% vs. year-ago to $72.764 million. Net interest margin 3.01% vs. 3.09%. Non-interest income up 41% to $8.061 million. Ending loan and deposit balances $7.036 billion, up 18%, and $7.136 billion, down 11%. Non-performing loans 0.38% of total loans vs. 0.58%. Book value $14.24 vs. $14.54.

March '18: EPS $0.06 vs. $0.23. Return on equity (tangible) 2.37% vs. 7.76%. Net interest income down 11% vs. year-ago to $71.438 million. Net interest margin 2.98% vs. 3.19%. Non-interest income down 42% to $8.582 million. Ending loan and deposit balances $6.930 billion, up 14% and $7.110 billion, down 3%. Non-performing loans 0.31% of total loans vs. 0.27%. Book value even with year-ago at $14.33 per share.

September '17: EPS (continuing) $0.25, down 34%. Return on equity (tangible) 7.16% vs. 19.51%. Net interest income down 9% to $75.036 million. Net interest margin 3.15% vs. 3.32%. Non-interest income down 20% to $18.365 million. Ending loan and deposit balances $6.627 billion, down 5% and $7.404 billion, down 18%. Non-performing loans 0.20% of total loans vs. 0.54%. Book value up 5% to $14.74 per share. Numbers reflect strategy to overhaul balance sheet by "de-risking" loan portfolio and cutting "brokered and other high-rate and high-volatility deposits." In August, Banc hired a new with nearly 30 years experience in banking and financial services. In April, Banc appointed Doug Bowers to its CEO position, replacing a temporary CEO appointed in January after its previous CEO resigned under pressure. Bowers was CEO of Square 1 Bank until it was by PacWest Bancorp in 2015.

December '17: EPS (continuing) $0.11 vs. year-ago $0.36. Return on equity (tangible) 3.84% vs. 17.30%. Net interest income down 12% vs. year-ago to $73.173 million. Net interest margin 3.01% vs. 3.13%. Non-interest income down 82% to $5.695 million. Ending loan and deposit balances $6.659 billion, up 10% and $7.293 billion, down 20% vs. year-ago. Non-performing loans 0.29% of total loans vs. 0.25%. Book value up 3% to $14.69 per share.

June '17: EPS (continuing) $0.20, down 33%. Return on equity (tangible) 4.51% vs. 15.65%. Net interest income down 2% vs. year-ago to $75.500 million. Net interest margin 3.09% vs. 3.39%. Non-interest income down 75% to $5.707 million. Ending loan and deposit balances $5.956 billion, down 4% and $8.045 billion, up 1%. Non-performing loans 0.15% of total loans vs. 0.72%. Book value up 8% to $14.54 per share. Sale of mortgage banking unit triggered drop in non-interest income..

March '17: EPS $0.23, down $0.03. Return on equity (tangible) 7.76% vs. 14.46%. Net interest income up 20% to $80.481 million. Net interest margin 3.19% vs. 3.39%. Non-interest income down 30% to $14.903 million. Ending loan and deposit balances $6.105 billion, up 12% and $8.598 billion, up 26% vs. year-ago. Non-performing loans 0.27% of total loans vs. year-ago 0.81%. Book value up 12% to $14.37 per share. Sale of mortgage banking unit during quarter made year-ago comparisons less meaningful. Independent inquiry initiated by Banc of California found that there was no evidence of "inappropriate relationships with third parties." However, the inquiry also found that bank had misstated certain facts in an October 18, 2016 press release. As a result, Steven Sugarman resigned his positions as CEO and Board Chairman. In February, sold home loan business. Sale cut operating offices by 60%, and cut headcount by 50%. In January, dividend up 8% ($0.01) to $0.13.

December '16: EPS $0.54, up 38%. Return on equity (tangible) 17.30% vs. 16.57%. Net interest income up 40% vs. year-ago to $87.058 million. Net interest margin 3.13% vs. 3.39%. Non-interest income up 40% to $79.687 million. Ending loan and deposit balances $6.035 billion, up 16% and $9.142 billion, up 45% vs. year-ago. Non-performing loans 0.25% of total loans vs. 0.87%. Book value up 17% to $14.25 per share.

September '16: EPS $0.59, up 103%. Return on equity (tangible) 19.51% vs. 12.25%. Net interest income up 57% to $86.961 million. Net interest margin 3.32% vs. 3.42%. Non-interest income up 47% to $74.630 million. Ending loan and deposit balances $6.569 billion, up 39% and $9.078 billion, up 67%. Non-performing loans 0.54% of total loans vs. 0.96%. Book value up 18% to $14.12 per share.

June '16: EPS (adjusted) $0.46, up 44%. Return on equity (tangible) 15.65% vs. 14.52%. Net interest income up 50% to $81.037 million. Net interest margin 3.39% vs. 3.66%. Non-interest income down 2% to $65.604 million. Ending loan and deposit balances $6.236 billion, up 39% and $7.929 billion, up 55% vs. year-ago. Non-performing loans 0.72% of total loans vs. 0.95%. Book value up 17% to $13.51 per share. Sold 5.25 million new shares at $19.05.

March '16: EPS $0.36, up 24%. Return on equity (tangible) 14.5% vs. 13.5%. Net interest income up 35% to $70.41 million. Net interest margin 3.39% vs. 3.69%. Non-interest income up 13% to $55.96 million. Ending loan and deposit balances $5.463 billion, up 39% and $6.838 billion, up 41%. Non-performing loans 0.81% of total loans vs. 1.09%. Book value up 3% to $12.65 per share. Sold 5.6 million new shares at $14.50/share, and 5.0 million new preferred shares at $25.

December '15: EPS $0.39, up 56%. Return on equity (tangible) 16.6% vs. 11.1%. Net interest income up 34% to $62.07 million. Net interest margin 3.39%. Non-interest income up 39% to $56.82 million. Ending loan and deposit balances $5.184 billion, up 31% and $6.303 billion, up 35%. Non-performing loans 0.87% of total loans vs. 0.97%. Book value even at $12.14 per share.

September '15: EPS $0.29, down 6%. Return on equity (tangible) 12.3% vs. 13.3%. Net interest income up 45% to $55.55 million. Net interest margin 3.42% vs. 3.58%. Non-interest income up 15% to $50.73 million. Ending loan and deposit balances $4.730 billion, up 74% and $5.422 billion, up 49%. Non-performing loans 0.96% of total loans vs. year-ago 1.41%. Book value $11.74 per vs. $11.18.

Bank of Nova Scotia

Sold, August 2013.

During the financial crisis, the U.S. government forced U.S.-based banks to stop paying meaningful dividends. We replaced them with Canadian banks, which were relatively untouched by the mortgage loan shenanigans that triggered the near financial meltdown in the U.S. Now, U.S. banks have recovered and many are on dividend growth tracks. By contrast, the Canadian economy, which is powered by its energy reserves, is weakening along with oil and nat-gas prices. Consequently, we're selling our Canadian banks, Bank of Nova Scotia and Canadian Imperial Bank, and replacing them with U.S. banks.

In July, Scotia's September 2011 deal to acquire 20% of Bank of Guangzhou in China for $700 million was vetoed by Chinese authorities. Guangzhou, with a population of 13 million, is 75 miles northwest of Hong Kong.

In May, Scotia said that its CEO, Rick Waugh is retiring after 10 years as CEO and 43 years at the bank. Scotia's president, Brian Porter, who has been at Scotia for 32 years, will take over as CEO on November 1.

Expected FY 10/2013 EPS Growth: 8% Div/EPS Ratio: 45%

Background
Although founded in Nova Scotia, the Bank of Nova Scotia moved its corporate headquarters to Toronto in 1900. Canada's third largest bank, Scotia has been aggressively expanding into the Caribbean, Latin America, and Asia. Foreign operations account for more than 30% of profits and provide more growth potential than domestic operations.

Quarterly Reports

April '13: EPS (adjusted) $1.24, up 7% vs. year-ago. Net interest income up 12% vs. year-ago $2.784 billion. Net interest margin 2.31% vs. year-ago 2.37%. Deposits up 12% vs. to $517.9 billion. Total loans up 17% to $394.7 billion. Impaired loans 0.44% of total loans vs. year-ago 0.57%. Non-interest income up 10% to $2.517 billion. Tier 1 capital ratio 10.7%, vs. year-ago 12.2% (6%+ ratios are okay and higher is better). In March, dividend up 5% to C$0.60.

January '13: EPS (adjusted) $1.27, up 4%. Net interest income up 17% vs. to $2.771 billion. Net interest margin 2.30% vs. 2.25%. Deposits up 13% to $512.6 billion. Total loans up 17% to $388.6 billion. Impaired loans 0.48% of total loans vs. 0.52%. Non-interest income up 20% to $2.354 billion. Tier 1 capital ratio 13.5% vs. 13.2%. Completed acquisition of ING Bank of Canada from Dutch parent, ING Groep NV.ING operated as an online-only bank in Canada.

October '12: EPS (adjusted) $1.21, up 22%. Net interest income up 11% vs. to $2.580 billion. Net interest margin 2.35% vs. 2.26%. Deposits up 10% to $463.6 billion. Total loans up 2% to $367.3 billion. Impaired loans 0.53% of total loans vs. 0.58%. Non-interest income up 20% to $2.354 billion. Tier 1 capital ratio 13.6%, vs. 12.2%. Raised $1.7 billion selling 33.35 million new shares at $52.00. Agreed to acquire 51% stake in Colombia's fourth largest pension fund company. In August, dividend up 4% to $0.57.

July '12: EPS (continuing) $1.22, up 11%. Counting non-recurring, EPS $1.69. Net interest income up 12% to $2.567 billion. Non-interest income up 46% to $.945 billion. Deposits up 11% to $461.0 billion. Total loans up 12% to $356.6 billion. Core banking margin 2.33% vs. $2.31%. Impaired loans 0.55% of total loans vs. 0.66%. Tier 1 capital ratio 12.6% vs. 12.3%. Book value $28.29 vs. 23.59.

April '12: EPS (adjusted) $1.15 vs. $1.39. Net interest income up 16% vs. to $2.48 billion. Deposits up 10% to $460.9 billion. Total loans up 11% to $345.1 billion. Core banking margin 2.37% vs. $2.30%. Impaired loans 0.57% of total loans vs. 0.70%. Tier 1 capital ratio 12.2% vs. 12.0%. Completed acquisition of Howard Weil, a U.S.-based energy investment boutique firm. Raised $1.66 billion by selling 33 million new shares at $50.25 per share.

January '12: EPS $1.20, up 11%. Net interest income up 5% to $2.38 billion. Deposits up 13% to $451.6 billion. Total loans up 10% to $341.2 billion. Net interest margin 2.03% vs. $2.07%. Impaired loans 0.55% of total loans. Tier 1 capital ratio 11.4% vs. 11.8%. Completed acquisition of 51% interest in Banco Colpatria, Columbia's fifth largest bank.

October '11: EPS $1.07, up 7%. Net interest income up 7% to $2.40 billion. Deposits up 10% to $396.4 billion. Total loans up 5% to $306.9 billion. Net interest margin 1.63% vs. $1.75%. Impaired loans 0.85% of total loans vs. 1.04. Tier 1 capital ratio 12.2% vs. 11.8%. Agreed to buy Dresdner Bank Brazil, a wholesale bank.

July '11: EPS $1.11, up 13%. Net interest income up 9% to C$2.36 billion. Deposits up 7% to C$390.2 billion. Total loans up 5% to C$301.1 billion. Net interest margin 1.67% vs. $1.68%. Impaired loans 0.92% of total loans vs. 0.91. Tier 1 capital ratio 12.3% vs. 11.7%. Completed purchase of Nuevo Banco Comercial, Uruguay's fourth largest private bank.

April '11: EPS $1.36, up 31%. Net interest income up 8% to C$2.21 billion. Deposits up 7% to C$396.1 billion. Total loans up 5% to C$294.4 billion. Net interest margin 1.68% vs. $1.73% (higher is better). Impaired loans 0.98% of total loans vs. year-ago 0.88%. Tier 1 capital ratio 12.0% vs. 11.2%. In March, dividend up 6% to C$0.52.

January '11: EPS C$1.07, up 18%. Net interest income up 7% to C$2.30 billion. Deposits up 3% to C$374.9 billion. Total loans up 6% to C$292.2 billion. Net interest margin 1.75% vs. $1.76%. Impaired loans 1.01% of total loans vs. 0.97%. Tier 1 capital ratio 11.8% vs. 11.2%. Completed acquisition of Royal Bank of Scotland's corporate and commercial offices in Chile, and the 82% that it didn't own of Dundee Wealth Management in Canada. Agreed to acquire Nuevo Banco Comercial, Uruguay's fourth-largest private bank, and Pronto!, the country's third-largest consumer finance company.

October '10: EPS C$1.00, up 19%. Operating cash flow C$1.092 billion ($1.05/share) vs. minus -$1.515 billion. Net interest income up 7% to C$2.24 billion. Deposits up 3% to C$361.7 billion. Total loans up 6% to C$291.8 billion. Net interest margin 1.75% vs. $1.74%. Impaired loans 1.04% of total loans, vs. 0.93%. Tier 1 capital ratio 11.8% vs. 10.7%. Agreed to acquire "The Waterfront Group," a Canadian investment advisor targeting wealthy families. Raised $1.25 billion by selling notes paying 2.05% maturing in 2015, and $2.5 billion selling bonds also maturing in 2015 and paying 0.573% above U.S. Treasuries.

July '10: EPS C$0.98, up 13%. Net interest income even at C$2.24 billion. Deposits up 9% to C$366.2 billion. Total loans up 4% to C$286.5 billion. Net interest margin 1.68% vs. $1.76%. Impaired loans 0.91% of total loans, even. Tier 1 capital ratio 11.7% vs. 10.4%. Raised C$2.5 billion by selling bonds paying 1.45% and maturing in July 2013.

April '10: EPS $1.02, up 26%. Net interest income C$2.06 billion, down 1%. Deposits up 7% to C$371.2 billion. Total loans down 8% to C$281.3 billion. Net interest margin 1.73% vs. $1.71%. Impaired loans 0.88% of total loans vs. 0.71%. Tier 1 capital ratio 11.2% vs. 9.6%. In an FDIC brokered transaction, took over R-G Premier Bank of Puerto Rico. Raised $265 million via preferred stock sale. Scotia's 49% owned Thailand's Thanachart Bank acquired 48% of rival Siam City Bank. Bought Royal Bank of Scotland's wholesale banking operations in Columbia.

January '10: EPS C$0.90 vs. C$0.80. Net interest income C$2.15 billion, up 2%. Deposits up 5% to C$365.0 billion, and total loans down 12% to C$275.8 billion. Net interest margin 1.76% vs. $1.52%. Impaired loans 0.97% of total loans vs. 0.51%. Tier 1 capital ratio 11.2%. Increased holding in Xi'an City Commercial Bank in Western China to 14.8% Raised $4.0 billion by selling notes maturing in 2013 and in 2015.

October '09: EPS C$0.83 vs. C$0.28. Net interest income C$2.10 billion, +8%. Deposits +1% to C$350.4 billion, and total loans -8% to C$275.9 billion. Net interest margin 1.74% vs. $1.68%. Impaired loans 0.93% of total loans vs. 0.40%. Tier 1 capital ratio 10.7%.

July '09: EPS C$0.87 vs. $0.98. Net interest income C$2.18 billion, +12%. Non-interest income C$1.599 billion vs. $1.325 billion. Deposits even at C$333.7 billion. Total loans -6% to C$268.1 billion. Net interest margin 1.76% vs. $1.79%. Impaired loans 0.94% of total loans vs. year-ago 0.36%. Tier 1 capital ratio 10.4%.

April '09: EPS C$0.81 vs. $0.98. Net interest income C$2.09 billion, +11%. Non-interest income C$1.432 billion vs. $1.199 billion. Deposits +8% to C$346.9 billion, total loans +8% to C$296.7 billion. Net interest margin 1.71% vs. $1.76%. Impaired loans 0.73% of total loans vs. year-ago 0.32%. Tier 1 capital ratio 9.6%.

January '09: EPS C$0.80 vs. C$0.82. Net interest income C$1.97 billion, +8%. Non-interest income C$1.385 billion. Deposits +9% to C$346.6 billion, total loans +17% to C$304.3 billion. Net interest margin 1.58% vs. $1.75%. Raised C$325 million selling 13 million preferred shares at $25.

October '08: EPS C$0.28 vs. C$0.95. Excluding loan loss provisions, EPS C$0.93. Net interest income even at C$1.95 billion. Non-interest income -61% to C$850 million. Deposits +20% to C$346.6 billion. Total loans +26% to C$300.6 billion. Net interest margin 1.68% vs. $1.87%. Purchased 37% stake in CI Financial Income Fund, Canada's third largest mutual fund company. Completed acquisition of E-Trade's Canadian operations. Deal with Bank of Beijing to acquire 33% stake in China based Fund Management Company to be established. Joint venture will market mutual funds to retail and institutional customers.

July '08: EPS C$0.98 vs. $1.02. Net interest income +7% to C$1.95 billion. Deposits +16% to C$332.5 billion and total loans +22% to C$283.7 billion. Net interest margin 1.79% vs. 1.86%. Impaired loans up 73% to $1.01 billion. Acquired 48% stake in private Peruvian pension fund. In May, dividend up 4% to C$0.49.

April '08: EPS C$0.97, -6%. Net interest income +4% to C$1.87 billion. Deposits +11% to C$322.4 billion and total loans +18% to C$267.9 billion. Net interest margin 1.76% vs. 1.93%.

January '08: EPS C$0.82, -19%. Revenues -8% to C$2.96 billion. Net interest income +3% to C$1.93 billion. Deposits +19% to C$316.8 billion and total loans +17% to C$260.5 billion. Net interest margin 1.79% vs. 1.91%. Acquired of controlling interest in Dominican Republic pension fund administrator. Received approvals to open office in Moscow. Acquired bank in Chile. In December, dividend +2% to C$0.47.

October '07: EPS 0.95, up 7%. Revenues +7% to $3.08 billion. Net interest income +4% to $1.716 billion. Net interest margin 1.87% vs. 1.89%. Total loans +12% to $238.7 billion, deposits u+9% to $288.5 billion.

Canadian Imperial Bank of Commerce

Sold 7/13

In June, the issuer of the Aeroplan credit card, Aimia, Inc., has made a deal with Toronto Dominion bank to replace Canadian Imperial as the issuer of the Aeroplan card. Analysts say the the loss of the popular rewards card could cut Canadian Imperial's earnings by as much as 10%.

In May, CIBC raised its quarterly dividend by 2% to C$0.96 per share.

In April, CIBC bought Atlantic Trust Private Wealth Management for $210 million from Invesco. Atlantic Trust manages $20 billion for high-net-worth clients in 12 U.S. metropolitan areas.

Expected FY 10/2013 EPS Growth: 5% Div/EPS Ratio: 43%

Background
CIBC, Canada's fifth largest bank, operates more than 1,000 domestic branches. CIBC has two major operating units. Retail markets, which accounts for around 75% of profits, offers the usual banking services. Its wholesale banking unit, CIBC World Markets, offers merchant and investment banking and capital market services to corporate, institutional, and government clients. In 2011, CIBC acquired a 41% stake in U.S.-based asset management firm American Century Investments.

Quarterly Reports

April '13: EPS (adjusted) $2.12, up 6% vs. year-ago. Net interest income up 1% to $1.823 billion. Net interest margin 1.85% vs. year-ago 1.82%. Deposits up 3% to $307.4 billion. Total loans flat at $251.3 billion. Loan loss ratio 0.47% vs. year-ago 0.53%. Non-interest income down 1% to $1.316 billion. Tier 1 capital ratio 12.4% vs. year-ago 14.1%. Previous Quarterly Reports

January '13: EPS (continuing) $2.15, up 11% vs. year-ago. Net interest income up 1% to $1.855 billion. Net interest margin 1.83% vs. year-ago 1.85%. Deposits up 3% to $306.3 billion. Total loans flat at $251.1 billion. Loan loss ratio 0.42% vs. 0.54%. Non-interest income up 1% to $1.326 billion. Tier 1 capital ratio 12.4%.

October '12: EPS (adjusted) $2.04, up 13%. Net interest income up 14% to $2.016 billion. Net interest margin 2.00% vs. 1.77% Deposits up 4% to $300.3 billion. Total loans up 2% to $252.7 billion. Loan loss ratio 0.53% vs. 0.52%. Non-interest income down 19% to $1.143 billion. Tier 1 capital ratio 13.8%, even. Acquired Houston-based energy advisory firm specializing in acquisitions and divestitures in the exploration and production sector, and a Canadian private wealth business. In August, dividend up 4% to $0.94.

July '12: EPS (adjusted) $2.06, up 4%. Net interest income up 1% to $1.883 billion. Deposits up 3% to $254.0 billion. Total loans up 4% to $253.6 billion. Net interest margin 1.87% vs. $1.76%. Non-interest income down 6% to $1.266 billion. Tier 1 capital ratio 14.1%, even with year-ago.

April '12: EPS (adjusted) $2.00, up 9%. Net interest income up 1% to $1.753 billion. Deposits up 3% to $244.2 billion. Total loans up 5% to $251.5 billion. Net interest margin 1.82% vs. $1.79%. Non-interest income up 7% to $1.331 billion. Tier 1 capital ratio 14.1% vs. 14.7%.

January '12: EPS (adjusted) $1.97, down $0.07. Net interest income up 4% to $1.842 billion. Deposits down 1% to $243.2 billion. Total loans up 1% to $250.7 billion. Net interest margin 1.85% vs. $1.84%. Non-interest income down 1% to $1.32 billion. Tier 1 capital ratio 14.3%.

October '11: EPS (continuing) $1.85, up 11%. Net interest income down 2% to $1.605 billion. Deposits up 4% to $255.4 billion. Total loans up 5% to $185.0 billion. Net interest margin 1.74% vs. $1.83%. Non-interest income down 1% to $1.60 billion. Tier 1 capital ratio 14.7% vs. 13.9%. Completed acquisition of 41% interest in U.S.-based asset manager American Century Investments. In August, dividend up 3% to C$0.90.

July '11: EPS $1.89, up 24%. Net interest income up 4% to C$1.607 billion. Deposits up 10% to C$261.3 billion. Total loans up 5% to C$193.6 billion. Net interest margin 1.72% vs. $1.74%. Non-interest income $1.45 billion, up 12%. Impaired loans 0.91% of total loans. Tier 1 capital ratio 14.6% vs. 14.2%.

April '11: EPS $1.60, up $0.01. Net interest income up 2% to C$1.53 billion. Deposits up 22% to C$278.6 billion. Total loans up 2% to C$188.2 billion. Net interest margin 1.70% vs. $1.84%. Non-interest income down 4% to $1.36 billion. Impaired loans 0.93% of total loans. Tier 1 capital ratio 14.7% vs. 13.7%.

Citizens Financial

Quarterly Reports

December '20: EPS (adjusted) $1.04, up 5%. Net interest income down 1% to $1.129 billion. Non-interest income up 17% to $578 million. Net interest margin 2.75% vs. 3.04%. Tangible book value up 2% to $32.72 per share.

September '20: EPS (adjusted) $0.73, down 26%. Net interest income down 1.6% to $1.137 billion. Non-interest income up 33% to $654 million. Net interest margin 2.82% vs. 3.10%. Tangible book value up 2% to $32.24 per share.

June '20: EPS (adjusted) $0.55 vs. $0.96. Net interest income down 0.5% to $1.160 billion. Non-interest income up 28% to $590 million. Net interest margin 2.88% vs. 3.21%. Non-accrual loans 0.79% of total vs.0.62%. Tangible book value up 4% to $32.13 per share. In May, sold 400,000 preferred shares paying 5.65% at $1,000 per share.

March '20: EPS (adjusted) of $0.94, up $0.01. Net interest income even at $1.16 billion. Non-interest income up 15% to $497 million. Net interest margin 3.09% vs. 3.21%. Non-accrual loans 0.61% of total. Tangible book value up 8% to $31.97 per share.

First Republic Bank

Quarterly Reports

December '20: EPS $1.60, up 15%. Net interest income up 24% to $892.7 million. Net interest margin 2.73% vs. 2.71%. Non-interest income up 19% to $187.6 million. Ending loan and deposit balances $110.7 billion, up 22%, and $114.9 billion, up 28%. Wealth Management assets up 29% vs. year-ago to $194.5 billion. Non-performing assets 0.13% of total assets vs. year-ago 0.12%. Tangible book value up 14% to $57.30 per share. In December, sold 1.8 million new shares at $132.22.

September '20: EPS $1.61, up 23%. Net interest income up 20% to $830.3 million. Net interest margin 2.71% vs. 2.80%. Non-interest income down 10% to $131.6 million. Ending loan and deposit balances $102.7 billion, up 19%, and $104.4 billion, up 22%. Wealth Management assets up 20% vs. year-ago to $168.2 billion. Non-performing assets 0.12% of total assets, even with year-ago. Tangible book value up 13% to $55.00 per share.

June '20: EPS $1.40, up 13%. Net interest income up 17% to $787.4 million. Net interest margin 2.70% vs. 2.97%. Non-interest income down 10% to $131.6 million. Ending loan and deposit balances $97.9 billion, up 19%, and $98.5 billion, up 18%. Wealth Management assets up 13% to $155.8 billion. Non-performing assets 0.13% of total assets vs. 0.14%. Tangible book value up 12% to $53.46 per share. Provisions for credit losses up 46% to $31.1 million. In April, dividend up 5% to $0.20.

March '20: EPS $1.20, down 5% vs. year-ago. Net interest income up 11% to $752.1 million. Net interest margin 2.74% vs. 2.73%. Non-interest income up 24% to $164.0 million. Ending loan and deposit balances $95.3 billion, up 23%, and $93.7 billion, up 15%. Wealth Management assets down 1% vs. year-ago to $137.9 billion. Non-performing assets 0.10% of total assets vs. 0.05%. Tangible book value up 12% to $52.40 per share. Provisions for credit losses up 346% vs. year-ago to $62.4 million.

December '19: EPS $1.39, up 8%. Revenues up 8% to $877.5 million. Net interest income up 8% to $844 million. Net interest margin 2.73% vs. 2.98%. Non-interest income up 10% to $157.3 million. Ending loan and deposit balances $90.3 billion, up 20%, and $90.1 billion, up 18%. Wealth Management assets up 20% to $151.0 billion. Non-performing assets 0.12% of total assets vs. 0.05%. Tangible book value up 11% to $50.24 per share.

September '19: EPS $1.31, up 10%. Revenues up 9% to $837.2 million. Net interest income up 10% to $695.0 million. Net interest margin 2.80% vs. 2.94%. Non-interest income up 6% to $142.2 million. Ending loan and deposit balances $86.3 billion, up 19%, and $85.7 billion, up 15%. Wealth Management assets up 7% to $140.2 billion. Non-performing assets 0.12% of total assets vs. 0.04%. Tangible book value up 11% to $48.84 per share.

June '19: EPS $1.24, up 3%. Revenues up 10% to $819.4 million. Net interest income up 10% to $674.0 million. Net interest margin 2.85% vs. 2.97%. Non-interest income up 10% to $145.4 million. Ending loan and deposit balances $82.2 billion, up 19%, and $83.4 billion, up 15%. Wealth Management assets down 2% to $137.6 billion. Non-performing assets even with year-ago at 0.14% of total assets. Tangible book value up 13% to $47.64 per share. In April, First Republic raised its quarterly dividend by 6% to $0.19 per share.

March '19: EPS $1.26, up 12%. Revenues up 12% to $807.4 million. Net interest income up 15% to $675.0 million. Net interest margin 2.97% vs. 2.98%. Non-interest income down 1% to $132.3 million. Ending loan and deposit balances $77.3 billion, up 19%, and $86.6 billion, up 15%. Wealth Management assets up 24% t0 $139.9 billion. Non-performing assets even with year-ago at 0.05% of total assets. Tangible book value up 13% to $46.81 per share.

December '18: EPS $1.29, up 17%. Revenues up 16% to $810.8 million. Net interest income up 17% to $667.2 million. Net interest margin 2.98% vs. 3.08%. Non-interest income up 10% to $143.5 million. Ending loan and deposit balances $75.9 billion, up 21%, and $79.1 billion, up 15%. Wealth Management assets up 18% t0 $126.2 billion. Non-performing assets 0.05% of total assets, vs. 0.04%. Tangible book value up 12% to $46.26 per share.

September '18: EPS $1.19, up 4%. Revenues up 15% to $768.8 million. Net interest income up 15% to $634.5 million. Net interest margin 2.94% vs. 3.09%. Non-interest income up 13% to $134.4 million. Ending loan and deposit balances $72.3 billion, up 22%, and $74.8 billion, up 14%. Wealth Management assets up 29% t0 $131.0 billion. Non-performing assets 0.04% of total assets, even with year-ago. Tangible book value up 13% to $44.00 per share. Sold 2.3 million new shares at $102 per share.

June '18: EPS $1.20, up 13%. Revenues up 16% to $744.1 million. Net interest income up 15% to $611.7 million. Net interest margin 2.95% vs. 2.97%. Non-interest income up 21% to $132.4 million. Ending loan and deposit balances $69.1 billion, up 20%, and $72.8 billion, up 15%. Wealth Management assets up 27% t0 $121.1 billion. Non-performing assets 0.05% of total assets vs. 0.05%. Tangible book value up 11% to $42.15 per share. In April, dividend up 6% ($0.01) to $0.18.

March '18: EPS $1.13, up 12%. Revenues up 20% to $720.9 million. Net interest income up 18% to $587.8 million. Net interest margin 2.97% vs. 3.08%. Non-interest income up 31% to $133.1 million. Ending loan and deposit balances $64.8 billion, up 21%, and $71.3 billion, up 16%. Wealth Management assets up 25% t0 $113.0 billion. Non-performing assets 0.05% of total assets vs. year-ago 0.07%. Tangible book value up 12% to $41.46 per share.

December '17: EPS $1.10, up 7%. Revenues up 17% to $699.2 million. Net interest income up 16% to $568.9 million. Net interest margin 3.08% vs. 3.09%. Non-interest income up 20% to $130.3 million. Ending loan and deposit balances $62.8 billion, up 21%, and $68.9 billion, up 17%. Wealth Management assets up 6% t0 $107.0 billion. Non-performing assets 0.04% of total assets vs. 0.06%. Tangible book value up 14% to $40.43 per share. In October, sold 2.3 million new shares at $99.26 per share.

September '17: EPS $1.14, up 14%. Revenues up 20% to $670.3 million. Net interest income up 20% to $551.0 million. Net interest margin 3.09% vs. 3.16%. Non-interest income up 23% to $119.3 million. Ending loan and deposit balances $59.125 billion, up 19%, and $65.436 billion, up 19%. Non-performing assets 0.04% of total assets vs. 0.08%. Tangible book value up 16% to $38.90 per share.

June '17: EPS $1.06, up 9%. Revenues up 20% to $641.3illion. Net interest income up 21% to $532.0 million. Net interest margin 3.16% vs. 3.13%. Non-interest income up 17% to $109.4 million. Ending loan and deposit balances $57.8 billion, up 21%, and $63.3 billion, up 24%. Non-performing assets 0.06% of total assets vs. 0.07%. Tangible book value up 16% to $37.83 per share. In April, dividend up 6% ($0.01) to $0.17.

March '17: EPS $1.01, up 9%. Revenues up 16% to $601.1 million. Net interest income up 18% to $499.7 million. Net interest margin 3.13% vs. 3.16%. Non-interest income up 7% to $101.5 million. Ending loan and deposit balances $53.9 billion, up 19%, and $61.2 billion, up 20%. Non-performing assets 0.07% of total assets vs. 0.10%. Tangible book value up 20% to $37.16. Sold 2.875 million new shares at $95.00.

December '16: EPS $1.03, up 23%. Revenues up 21% to $599.5 million. Core net interest income up 38% to $594.9 million. Core net interest margin 3.08% vs. 3.02%. Non-interest income up 21% to $108.8 million. Ending loan and deposit balances $51.702 billion, up 17%, and $58.602 billion, up 22%. Non-performing assets 0.07% of total assets vs. 0.12%. Tangible book value up 17% to $35.35 per share. Acquired Gradifi, a 2014 startup that provides systems to facilitate employer contributions to their employee's student loan balances.

September '16: EPS $1.00, 22%. Revenues up 19% to $558 million. Core net interest income up 20% to $497.2 million. Core net interest margin 3.11% vs. 3.16%. Non-interest income up 22% to $97.3 million. Ending loan and deposit balances $49.9 billion, up 18%, and $55.1 billion, up 24%. Non-performing assets 0.08% of total assets. Tangible book value up 15% to $33.41 per share.

June '16: EPS (adjusted) $0.89, up 11%. Revenues up 18% to $535.1 million. Core net interest income up 23% to $475.9 million. Core net interest margin 3.16% vs. 3.12%. Non-interest income up 16% to $93.5 million. Ending loan and deposit balances $47.6 billion, up 16%, and $51.2 billion, up 22%. Non-performing assets 0.09% of total assets vs. year-ago 0.11%. Tangible book value up 14% to $33.53 per share.. Sold 2.9 million new shares at $71.20. In April, dividend up 7% to $0.16.

March '16: EPS $0.88, up 24%. Revenues up 23% to $519.6 million. Core net interest income up 25% to $456.3 million. Core net interest margin 3.14% vs. 3.02%. Non-interest income up 27% to $95.3 million. Ending loan and deposit balances $45.4 billion, up 16%, and $50.9 billion, up 28%. Non-performing assets 0.10% of total assets, even. Tangible book value up 11% to $31.05 per share. Raised $150 million by selling preferred shares paying 5.5%.

December '15: EPS (core) $0.82, up 22%. Core net interest income up 21% to $394.7 million. Core net interest margin 3.02% vs. 3.09%. Non-interest income up 19% to $90.2 million. Ending loan and deposit balances $44.1 billion, up 16%, and $47.9 billion, up 8%. Non-performing assets 0.12% of total assets vs. 0.10%. Tangible book value up 14% to $30.16 per share. Sold 3.45 million new shares at $66.33/share.

September '15: EPS (core) $0.79, up 11%. Core net interest income up 18% to $379.2 million. Core net interest margin 3.09% vs. 3.09%. Non-interest income even at $79.7 million. Ending loan and deposit balances $42.4 billion, up 16%, and $44.3 billion, up 6%. Non-performing assets 0.10% of total assets vs. year-ago 0.11%. Tangible book value up 14% to $29.43/share.

Huntington Bancshares

March '21: EPS $0.48 $0.03. Net interest income up 23% to $972 million. Net interest margin 3.48% vs. 3.14%. Non-interest income up 9% to $395 million. Ending loan and deposit balances $80.3 billion, up 6%, and $99.3 billion, up 20%. Tangible book value up 4% to $8.64 per share.

December '20: EPS $0.27, down $.01. Net interest income up 6% to $830 million. Net interest margin 2.94% vs. 3.12%. Non-interest income up 10% to $409 million. Ending loan and deposit balances $81.6 billion, up 8%, and $96.5 billion, up 17%.

JP Morgan Chase

2/1/15: JP Morgan has reported disappointing numbers for several quarters, and is now trading roughly even with where we added it to the portfolio in August 2013. It's time to move on.

JP Morgan reported December 2014 quarter earnings of $1.19 per share, $0.12 below analyst forecasts and down from $1.30 in the year-ago quarter. Total net revenues fell 3% to $22.512 billion. Consumer & Community Banking income down 11% to $2.179 billion. Asset Management Income down 7% to $540 million. Mortgage banking income down 43% to $338 million. Ending loan and deposit balances $757.336 billion, up 3% and $1,363 billion, up 6% vs. year-ago. Return on tangible equity 11% vs. year-ago 14%. Tangible book value $44.69 per share vs. $40.81. Disappointing numbers. Earnings included $990 million ($0.26/share) legal expense.

In November, U.S., Swiss and British regulators fined JP Morgan about $1 billion ($0.27 per share) for participating in a foreign currency price fixing scheme.

Expected FY 12/2015 EPS Growth: 9% Div/EPS Ratio: 28%

Background
JPM is a global financial services firm with operations in more than 50 countries. Businesses include investment banking, retail banking, consumer lending, commercial banking, and wealth management.

Quarterly Reports

September '14: EPS $1.36, vs. year-ago -$0.17 loss. Total net revenues up 5% to $24.248 billion. Net interest income up 3% to $11.107 billion. Interest rate spread (margin) 2.11% vs. 2.08%. Non-interest revenues up 6% to $13.139 billion. Consumer & Community Banking income down 9% to $2.468 billion. Corporate & Investment Bank income down 34% to $1.485 billion. Commercial Banking income down 2% to $649 million. Asset Management Income up 20% to $572 million. Mortgage income up 7% to $903 million. Ending loan and deposit balances $743.257 billion, up 2% and $1,334 billion, up 4% vs. year-ago. Return on tangible equity 13% vs. year-ago -2%. Tangible book value $44.13 per share vs. $39.51. Sold health savings account business for undisclosed price. Said planned to sell about 50% of the companies held by its private equity business, One Equity Partners.

June '14: EPS $1.46, down 9%. Total net revenues down 3% to $24.454 billion. Net interest income down 2% to $7.0 billion. Interest rate spread (margin) 2.23% vs. 2.31%. Non-interest revenues down 9% to $4.5 billion. Consumer & Community Banking income down 21% to $2.443 billion. Corporate & Investment Bank income down 31% to $1.963 billion. Commercial Banking income up 8% to $658 million. Asset Management Income up 10% to $552 million. Ending loan and deposit balances $746.98 billion, up 3% and $1,320 billion, up 10%. Return on tangible equity 14% vs 17%. Tangible book value $43.17 per share vs. $39.97. In April, dividend up 5% to $0.40.

March '14: EPS $1.28, down 19%. Total revenues down 8% to $22.993 billion. Net interest income down 3% to $10.667 billion. Interest rate spread (margin) 2.11% vs. 2.27%. Non-interest revenues down 14% to $12.326 billion. Credit card income down 1% to $1.408 billion. Mortgage banking income $114 million vs. year-ago $673 million. Ending loan and deposit balances $730.97 billion and $1,283 billion. Return on tangible equity 13% vs. year-ago 17%. Tangible book value $41.73 per share vs. $39.54. Agreed to sell physical commodities business to Mercuria Energy Group for $3.5 billion in cash. The deal was consistent with JPM's new-found religion of focusing on its core business of lending instead of speculating in raw materials.

December '13: EPS (adjusted) of $1.40 per share, up 4%. Total revenues down 2% to $23.156 billion. Net interest income down 2% to $10.907 billion. Non-interest revenues down 2% to $12.531 billion. Credit card income up 4% to $1.582 billion. Mortgage banking income down 46% to $1.089 billion. Ending loan and deposit balances $738.4 billion and $1,288 billion. Return on equity 10% vs. 11%. Tangible book value $40.51 per share vs. $38.75. Agreed to pay a group of 21 major institutional investors $4.5 billion to settle claims related to mortgages sold to those investors by JPM and Bear Stearns in 2005-2008. Announced a $13 billion agreement with the government to settle claims related to mortgage securities.

September '13: EPS (continuing) $1.42, up $0.02. Counting litigation expense and reserves for litigation loss, EPS -$0.17 per share. Total revenues down 8% to $23.880 billion. Net interest income down 2% to $11.0 billion. Non-interest revenues down 12% to $12.9 billion. Credit card sales volume up 111% to $107.0 billion. Mortgage banking income up 13% to $705 million. Ending loan and deposit balances $728.7 billion and $1,281 billion. Return on equity -1% vs. 12%. Tangible book value $39.51 per share vs. $37.53. Agreed to pay $920 million ($0.24 per share) in fines to settle lawsuits with various U.S. government agencies related to the "London Whale" case.

June '13: EPS $1.60, up 32%. Total revenues up 14% to $25.211 billion. Net interest income down 4% to $10.704 billion. Non-interest revenues up 31% to $14.507 billion. Credit card income up 10% to $1.503 billion. Mortgage fees up 25% to $1.819 billion. Ending loan and deposit balances $725.6 billion and $1,203 billion. Return on equity 13% vs. year-ago 11%. Tangible book value $40.04 per share vs. $35.71.

March '13: EPS $1.59 per share, up 34%. Total revenues down 3% to $25.122 billion. Net interest income down 6% to $10.933 billion. Non-interest revenues down 1% to $14.189 billion. Credit card income up 8% to $1.316 billion. Mortgage fees down 28% to $1.452 billion. Ending loan and deposit balances $728.9 billion and $1,303 billion. Return on equity was 13% vs. 11%. Tangible book value $39.54 per share vs. $34.79.

Moelis & Co.

1/20: Moelis fundamental outlook has worsened substantially over the past few months and no turnaround is in sight. We're selling.

At a financial services conference, Moelis' CEO Ken Moelis said would raise compensation to his investment bankers to around 65% of revenue vs. current 58%. Moelis' share price dropped around 6% on that news.

Background
Moelis, an April 2014 IPO, is an investment bank that provides advisory services to corporations involved in mergers and acquisitions, financing and restructuring, etc. Moelis, growing earnings mid-single digits, is a modest growth story. However, it is a serious dividend payer. Starting with a $0.20 per share quarterly payout in July 2014, it raised its dividend by 50% in July 2015, by 7% in July 2016, and by 16% to $0.37 per share in January 2017. What's more, it paid a $1.00 per share special dividend in November 2014, $0.80 in February 2016 and a $1.25 special in January 2017.

Quarterly Reports

September '19: EPS(adjusted) $0.76, up 23% vs. year-ago. Revenues up 12% to $231.7 million. Operating margin 30.6% of revenues vs. year-ago 25.5% (higher is better).

June '19: EPS $0.56, down 28% vs. year-ago. Revenues down 30% to $153.5 million. Operating margin 22.1% of revenues vs. year-ago 25.2%. Fewer closed transactions accounted for the weak results. Expects next two quarters "much stronger" than last two quarters. In February, declared $1.25 per share special dividend and raised quarterly payout by 6% to $0.50.

March '19: EPS (adjusted) $0.27 vs. $0.84. Revenues down 37% to $137.8 million. Operating margin 7.0% of revenues vs. 25.1%.

December '18: EPS (adjusted) 0.77 per share, up 48%. Revenues up 41% to $238.3 million. Operating margin (adj) 28.9% of revenues vs. 31.6%.

September '18: EPS (adjusted) $0.62, up 9%. Revenues up 22% to $207.7 million. Operating margin (adj) 20.4% of revenues vs. 21.3%. In July, special $1.50 per share dividend, in addition to regular $0.47 per share quarterly payout. The $1.50 per share special was Moelis' second $1.50 special dividend declared in 2018. Both payouts went ex-dividend in August.

June '18: EPS (adjusted) $0.78, up 18% vs. year-ago. EPS included $0.11 per share of tax benefits, all of which may not be recurring. Revenues up 28% to $220.4 million. Operating margin 25.2% of revenues vs. year-ago 24.8%.

March '18: EPS (adjusted) $0.65 (excluding tax benefit), up 20%. Revenues up 27% to $219.4 million. Operating margin 26.2% of revenues vs. 27.4%. Sold 5 million new shares at $51 per share. In February, dividend up 27% to $0.47, and declared $1.50 per-share special dividend.

December '17: EPS (adjusted) $0.52, down 21%. Revenues down 17% to $169.2 million. Operating margin 22.9% of revenues vs. 30.1%. Said quarterly revenues and income fluctuate with depending closed transactions and not necessarily representative of future results. In any case, 26% dividend hike and $1.50 per share special payout were nice touches.

September '17: EPS (adjusted) $0.57, up 30%. Revenues up 13% to $170.0 million. Operating margin 22.9% of sales vs. 26.6%. Sold six million new shares at $42, used funds to repurchase same number of shares from certain Managing Directors and former employees.

June '17: EPS $0.66, up 89%. Revenues up 31% to $172.1 million. Operating margin 34.9% vs. 24.9%. In June, declared $1.00 per share special dividend. Previous specials included $1.00 in November 2014, $0.80 in February 2016, and $1.25 in December 2016.

March '17: EPS (adjusted) $0.47 (excl. $0.07/s tax benefit), up 28%. Revenues up 37% to $173.3 million. Operating margin 24.8% of sales vs. 22.9%). Selected to be adviser by Saudi Aramco on what is expected to be the world's biggest IPO (around $2 trillion). Moelis will be the internal independent adviser and provide counsel on selection of underwriters. Sold 5.75 million new shares at $32.75. In January, dividend up 16% to $0.37.

December '16: EPS (adjusted) $0.66, up 27%. Revenues up 17% to $204.6 million. In December, declared $1.25 per share special dividend, payable in January '17. \

September '16: EPS (adjusted) $0.44. down 2%. Revenues down 1% to $150.7 million. Dividend up 7% to $0.32.

June '16: EPS (adjusted) EPS (adjusted) $0.35, down 5%. Revenues up 5% to $131.7 million.

PacWest Bancorp

12/1/17 PacWest Bancorp hasn't produced the returns we expected when we added it to this portfolio in July 2015, and we're not seeing any signs pointing to improvement on the horizon.

Expected FY 12/2017 EPS Growth: -4% EPS Payout Ratio: 67%

Background
PacWest, a Los Angeles-based bank, operates Pacific Western Bank with 80 full service branches in California and lending offices nationwide. PacWest has grown rapidly by acquisition. In April 2014, it more than doubled in size by merging with CapitalSource, also a Los Angeles-based bank.

Quarterly Reports

September '17: EPS $0.84, up 9% vs. year-ago. Return on tangible equity 16.85% vs. 16.15%. Net interest income up 3% to $241.7 million. Net interest margin 5.08% vs. 5.26%. Non-interest income up 17% to $31.4 million. Ending loan and deposit balances $15.691 billion, up 8% and $16.773 billion, up 7%. Non-performing assets 1.08% of total loans vs. year-ago 1.27%. Tangible book value up 4% to $19.84/share.

June '17: EPS $0.77, up 13%. Return on tangible equity 16.1% vs. 14.6%. Net interest income up 8% to $242.5 million. Net interest margin 5.21% vs. 5.33%. Non-interest income up 60% to $35.3 million. Ending loan and deposit balances $15.543 billion, up 6% and $16.875 billion, up 11%. Non-performing assets 1.20% of total loans vs. 0.99%. Tangible book value up 3% to $19.40/share. Paid $705 million in cash and stock to acquire CU Bancorp, which operated California United Bank with nine branches in Los Angeles, Orange, Ventura and San Bernardino counties.

March '17: EPS $0.65, down 12%. Return on tangible equity 13.9% vs. 16.5%. Net interest income down 5% to $232.5 million. Net interest margin 5.16% vs. 5.53%. Non-interest income down 2% to $35.1 million. Ending loan and deposit balances $15.556 billion, up 7% and $16.331 billion, up 6%. Non-performing assets 1.20% of total loans vs. 1.05%. Tangible book value up 3% to $18.95/share.

December '16: EPS $0.71, up $0.01. Return on tangible equity 14.9% vs. 13.1%. Net interest income up 22% to $234.6 million. Net interest margin 5.47% vs. 5.22%. Non-interest income up 3% to $28.9 million. Ending loan and deposit balances $15.455 billion, up 10% and $15.871 billion, up 1%. Non-performing assets 1.19% of total loans vs. 1.08%. Tangible book value up 5% to $18.71/share. Agreed to sell two branches, one in Laguna Hills, CA, and the other in Seal Beach, CA.

September '16: EPS $0.77, up 13%. Return on tangible equity 16.15% vs. 15.09%. Net interest income up 22% to $234.6 million. Net interest margin 5.26% vs. 5.46%. Non-interest income up 71% to $26.9 million. Ending loan and deposit balances $14.595 billion, up 18% and $15.646 billion, up 29%. Non-performing assets 1.27% of total loans vs. 0.99%. Tangible book value up 7% to $19.12/share.

June '16: EPS $0.68, up 11% vs. Return on tangible equity 14.61% vs. 15.52%. Net interest income up 10% to $223.7 million. Net interest margin 5.33% vs. 5.83%. Non-interest income up 13% to $22.1 million. Ending loan and deposit balances $14.641 billion, up 22% and $15.148 billion, up 20%. Non-performing assets 0.99% of total loans vs. year-ago 1.40%. Tangible book value up 7% to $18.83/share.

March '16: EPS $0.74, up 23%. Return on tangible equity 16.45% vs. 16.50%. Net interest income up 23% to $244.6 million. Net interest margin 5.53% vs. 5.89%. Non-interest income up 65% to $34.5 million. Ending loan and deposit balances $14.483 billion, up 18% and $15.441 billion, up 29%. Non-performing assets 1.05% of total loans vs. year-ago 1.45%. Tangible book value up 6% to $18.33/share.

December '15: EPS (adjusted) $0.70, up 11%. Return on equity (tangible) 13.1% vs. 16.0%. Net interest income up 35% to $229.2 million. Net interest margin 5.22% vs. 5.86%. Non-interest income up 121% to $28.058 million. Ending loan and deposit balances $14.031 billion, up 18% and $15.666 billion, up 33%. Non-performing assets 1.08% of total loans vs. 1.28%. Book value up 8% to $36.22. Completed acquisition of technology and life sciences startup financing specialist Square 1 Financial. Deal made PacWest a player in the tech lending sector which had been dominated by Silicon Valley Bank.

September '15: EPS (adjusted) $0.63, down $0.02. Return on equity 7.73% vs. 7.13%. Net interest income up 2% to $192.5 million. Net interest margin 5.46% vs. 5.76%. Non-interest income down 3% to $15.758 million. Ending loan and deposit balances $12.452 billion, up 3% and $12.116 billion, up 5%. Non-performing assets 1.14% of total loans vs. year-ago 1.15%. Book value up 3% to $34.76.

June '15: EPS (adjusted) $0.70, and up 11%. Return on equity 9.6% vs. 2.7%. Net interest income up 5% to $202.6 million. Net interest margin 5.83% vs. 6.24%. Non-interest income $19.623 million, up 131%. Ending loan and deposit balances $12.034 billion, up 8% and $12.582 billion, up 7%. Non-performing assets 1.40% of total loans vs. 1.39%. Book value $36.46 vs. $33.37.

March '15: EPS (adjusted) $0.61, up 30%. Net interest margin 5.89%. Net interest income $199.1 million. Non-interest income $20.871 million. Ending loan balance $12.1272 billion, deposits $11.934 billion. Non-performing loans 1.61% of total loans. Book value $34.29 vs. $18.21.

December '14: EPS (adjusted) $0.66, up 35%. Net interest margin 5.86%. Net interest income $169.2 million. Non-interest income $12.703 million. Ending loan balance $11.882 billion, deposits $11.755 billion. Non-performing loans 1.28% of total loans. Book value $33.69 per share vs. $17.66. In November, dividend up 100% to $0.50.

United Community Financial

10/19: Sell.

United Community Financial has agreed to be acquired by First Defiance Financial (FDEF), headquartered in Defiance,Ohio, which operates First Federal Bank of the Midwest and First Insurance Group. In an all-stock transaction, United Community shareholders will receive 0.3715 shares of First Defiance common stock for each United Community share. Based on First Defiance's recent $27.34 trading price, that values United Community's takeover price at $10.16 per share.

United Community Financial reports September quarter results after the bell on October 22. The conference call is set for 10 am Eastern on October 23. Since the bank has agreed to be acquired, the September quarter results are academic.

In July, United Community raised its quarterly dividend by 14% to $0.08 per share.

Background
Operates as Home Savings Bank headquartered in Youngstown, Ohio with 35 retail banking offices, 12 loan production centers & 3 wealth management offices in Ohio, Pennsylvania & West Virginia. Suffered major real estate loan losses in 2008 and operations were controlled by various federal regulators from 8/08 until 3/14. New CEO took over in 3/14. In January 2016, acquired James & Sons Insurance, a retail agency headquartered in Youngstown, Ohio. Converted from Savings & Loan to bank in January 2017. In January 2017, acquired Ohio Legacy, which operated four Premier Bank & Trust offices in Ohio.

Quarterly Reports

June '19: EPS $0.215, up 13% vs. year-ago. Net interest income up 3% to $22.1 million. Net interest margin 3.33% vs. 3.36%. Non-interest income up 14% to $6.7 million. Ending loan and deposit balances $2.292 billion, up 5%, and $2.259 billion, up 6%. Non-performing assets 0.48% of total assets vs. 0.634%. Tangible book value up 3% to $6.11 per share.

March '19: EPS $0.18, up 3%. Net interest income up 7% (adjusted) to $22.3 million. Net interest margin 3.38% vs. 3.47%. Non-interest income up 4% to $6.1 million. Ending loan and deposit balances $2.216 billion, up 8%, and $2.290 billion, up 11%. Non-performing assets 0.34% of total assets vs. 0.65%. Tangible book value up 9% to $5.95 per share.

December '18: EPS $0.19, up 111%. Net interest income up 13% to $23.494 million. Net interest margin 3.33% vs. 3.45%. Non-interest income down 14% to $5.585 million. Ending loan and deposit balances $2.811 billion, up 19%, and $2.213 billion, up 13%. Non-performing assets 0.27% of total assets vs. 0.64%. Tangible book value up 7% to $5.81 per share.

September '18: EPS $0.19, up 26%. In July, dividend up 17% to $0.07, which was 75% above year-ago payout.

June '18: EPS $0.19, up 17%. Net interest income up 4% to $21.295 million. Net interest margin 3.36% vs. 3.47%. Non-interest income down 17% to $5.852 million. Ending loan and deposit balances $2.167 billion, up 13%, and $2.096 billion, up 10%. Non-performing assets 0.57% of total assets vs. 0.72%. Tangible book value up 6% to $5.56 per share.

March '18: EPS $0.17 vs. year-ago #0.03. Net interest income up 17% to $21.533 million. Net interest margin 3.47% vs. 3.28%. Non-interest income up 8% to $5.819 million. Ending loan and deposit balances $2.061 billion, up 12%, and $2.067 billion, up 9%. Non-performing asset 0.65% of total assets vs. year-ago 0.74%. Tangible book value up 7% to $5.45 per share. In January, dividend up 50% to $0.06 per share.

December '17: EPS $0.09 vs. year-ago #0.11. Net interest income up 27% to $21.101 million. Net interest margin 3.43% vs. 3.25%. Non-interest income up 15% to $6.460 million. Ending loan and deposit balances $2.000 billion, up 33%, and $1.957 billion, up 29%. Non-performing asset 0.64% of total assets vs. year-ago 0.94%. Tangible book value up 2% to $5.41 per share.

Wells Fargo

4/1/16: Large banks won't boost profits meaningfully until interest rates rise, and that isn't happening.

In February, Wells agreed to pay $1.2 billion to the U.S. government to resolve civil claims related to its FHA lending program between 2001 and 2010. The U.S. Department of Justice had sued Wells, saying it failed to report more than 6,000 loans that did not meet requirements for insurance under the FHA, and failed to properly review early payment defaults.

Expected FY 12/2016 EPS Growth: 4% EPS Payout Ratio: 36%

Background
A U.S. focused financial services firm that offers retail and commercial banking, insurance, investments, mortgages, and consumer finance services. Wells Fargo acquired Wachovia Bank in 2008 making it a coast-to-coast banking franchise with about 9,000 banking stores and 12,000 ATMs serving 23 million retail households.

Quarterly Reports

December '15: EPS $1.03, up 1% vs. year-ago. Revenues up 1% to $21.6 billion. Return on equity 12.0% vs. year-ago 12.8%. Net interest income up 4% to $11.588 billion. Net interest margin 2.92% vs. 3.04%. Ending loan and deposit balances $916.6 billion, up 6% and $1,223 billion, up 5%. Non-performing assets 1.40% of total loans vs. 1.79%. Book value $33.81 per share vs. $32.19. Agreed to acquire General Electric's Commercial Distribution Finance unit which offered inventory financing services to manufacturers and retailers.

September '15: EPS $1.05, up 3%. Revenues up 3% to $21.9 billion. Return on equity 12.6% vs. year-ago 13.1%. Net interest income up 5% to $11.457 billion. Net interest margin 2.96% vs. 3.06%. Ending loan and deposit balances $891.6 billion, up 6% and $1.202 billion, also up 6%. Non-performing assets 1.47% of total loans vs. year-ago 2.11%. Book value $32.96 per share vs. $31.55.

June '15: EPS $1.03, up $0.02. Revenues up 1% to $21.3 billion. Return on equity 12.7% vs. 13.4%. Net interest income up 4% to $11.270 billion. Net interest margin 2.97% vs. 3.15%. Ending loan and deposit balances $888.5 billion, up 7% and $1.186 billion. Non-performing assets 1.62% of total loans vs. 2.18%. Book value $32.96 per share vs. $31.18. Agreed to purchase $9.0 billion of commercial real estate loans in the US, UK, and Canada from General Electric. In April, dividend up 7% to $0.375.

March '15: EPS $1.04, down $0.01. Revenues up 3% to $21.278 billion. Return on equity 13.2% vs. 14.4%. Net interest income up 3% to $10.986 billion. Net interest margin 2.95% vs. 3.20%. Ending loan and deposit balances $861.2 billion, up 4% and $1.087 billion, up 9%. Non-performing assets 1.45% of total loans vs. 2.27%. Book value $32.70 per share vs. $30.48.

December '14: EPS $1.02, up $0.02. Revenues up 4% to $21.4 billion. Net interest income up 2% to $11.2 billion. Net interest margin 3.04% vs. 3.11%. Ending loan and deposit balances $862.5 billion, up 5% and $1.054 billion, up 8%. Book value $32.19 per share vs. $29.48.

September '14: EPS $1.02, up 3% vs. year-ago. Total revenues up 4% to $21.2 billion. Net interest income up 2% vs. year-ago to $10.841 billion. Net interest margin 3.06% vs. 3.39%. Non-interest income up 6% to $10.272 billion. Ending loan and deposit balances $838.9 billion, up 4% and $1.131 billion, up 9% vs. year-ago. Credit card income up 8% to $875 million. Mortgage banking income up 2% to $1.633 billion. Return on equity 13.10% vs. 14.07%. Non-performing assets 2.11% of total loans. Book value $31.55 per share vs. $28.98.

June '14: EPS $1.01, up 3%. Total revenues down 1% to $21.1 billion. Net interest income flat at $10.791 billion. Net interest margin 3.15% vs. 3.47%. Non-interest income down 3% to $10.275 billion. Credit card income up 4% to $847 million. Mortgage banking income down 39% to $1.723 billion. Return on equity 13.40% vs. 14.02%. Non-performing assets 2.18% of total loans. Book value $31.18 per share vs. $28.26. In April, quarterly dividend up 17% to $0.35.

March '14: EPS $1.05, up 14%. Total revenues down 3% to $20.6 billion. Net interest income up 1% to $10.615 billion. Net interest margin 3.20% vs. 3.49%. Non-interest income down 7% to $10.010 billion. Credit card income up 6% to $784 million. Mortgage banking income down 46% to $1.510 billion. Return on equity 14.35% vs. year-ago 13.59%. Non-performing assets 2.27% of total loans vs. 2.87%. Book value $30.48 per share vs. $28.27.

December '13: EPS $1.00, up 10%. Total revenues down 5% to $20.7 billion. Net interest income up 2% to $10.803 billion. Net interest margin 3.26% vs. 3.39%. Non-interest income down 13% to $9.862 billion. Credit card income up 12% to $827 million. Mortgage banking income down 49% to $1.570 billion. Ending loan and deposit balances $825.8 billion and $980.1 billion. Return on equity 13.81% vs. 13.35%. Non-performing assets 2.37% of total loans. Book value $29.48 per share vs. $27.64. Agreed to pay Fannie Mae $541 million to settle claims related to defective home mortgages sold to Fannie Mae prior to 2009.

September '13: EPS $0.99, up 13%. Total revenues down 3% to $20.478 billion. Net interest income down 1% to $10.748 billion. Non-interest income down 4% to $9.730 billion. Credit card income up 9% to $813 million. Mortgage banking income down 43% to $1.608 billion. Ending loan and deposit balances $812.2 million and $1.042 billion. Return on equity 14.07% vs. 13.38%. Book value $28.98 per share vs. $27.10. Agreed to pay U.S. $869 million to settle claims that Wachovia, which Wells acquired in 2008, sold fraudulent loans to Freddie Mac.

June '13: EPS $0.98, up 20%. Total revenues flat at $21.378 billion. Net interest income up 4% to $11.827 billion. Non-interest income up 4% to $10.628 billion. Credit card income up 15% to $813 million. Mortgage fees down 3% to $2.802 billion. Ending loan and deposit balances $1.022 billion and $802.0 million. Return on equity 14.02% vs. 12.86%. Book value $28.26 per share vs. $26.06.

March '13: EPS 0.92, up 23%. Total revenues down 2% to $21.259 billion. Net interest income down 4% to $10.499 billion. Non-interest income flat at $10.760 billion. Credit card income up 13% to $738 million. Mortgage fees down 3% to $2.794 billion. Ending loan and deposit balances $800.0 million and $1.011 billion. Return on equity 13.59% vs. 12.14%. Book value $28.27 vs. $25.45. In January, dividend up 14% to $0.25.

Return to U.S. Banks