BANC OF CALIFORNIA, INC. (NYSE:BANC) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05 Costs Associated with Exit or Disposal Activities.
On June26, 2018, Banc of California, Inc. (the “Company”) began advising affected employees of its plan, to which it committed on June22, 2018, to reduce the Company’s workforce by approximately 9% of total staffing. In addition, the Company expects to reduce the use of third party advisors during the third quarter of 2018, with each of these actions intended to align the Company’s cost structure with its focused commercial banking platform. The plan is expected to be substantially completed by the end of the third quarter of 2018 and fully completed during the fourth quarter of 2018.
The Company expects to recognize annual savings of approximately $15million from the reduction in force and reduction in use of third party advisors. The expense savings are expected to be realized, on a go forward basis, consistent with the execution of the plan. The Company expects to incur one-time severance-related costs in the second quarter of 2018 of between $4million and $5million, pre-tax, as a result of the reduction in force. Additional one-time severance costs may be recognized in the third and fourth quarters of 2018, consistent with executing the plan.
Item 2.05 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June26, 2018, Lawrence Gee, the Company’s Senior Vice President and Chief Accounting Officer, notified the Company of his intention to resign from his position, effective August10, 2018. The Company intends to conduct a search for a new Chief Accounting Officer. If a successor is not appointed prior to August10, 2018, Mr.Gee’s duties and responsibilities as the Company’s principal accounting officer will be assumed on an interim basis by John A. Bogler, age52, the Company’s Executive Vice President and Chief Financial Officer, who will continue to also serve as the Company’s principal financial officer. There are no arrangements or understandings between Mr.Bogler and any other person required to be disclosed to Item401(b) of RegulationS-K and Mr.Bogler has no family relationships required to be disclosed to Item401(d) of RegulationS-K. Information regarding Mr.Bogler’s business experience required to be disclosed to Item401(e) of Regulation S-K and regarding transactions with the Company required to be disclosed to Item404(a) of RegulationS-K is contained in the definitive proxy statement filed by the Company with the Securities and Exchange Commission on April19, 2018 under the headings “Executive Officers” and “Transactions with Related Persons,” respectively, and is incorporated herein by reference.
This Current Report on Form8-K includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and the Company undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
About BANC OF CALIFORNIA, INC. (NYSE:BANC)
Banc of California, Inc. provides banking services to California’s diverse businesses, entrepreneurs and homeowners. The Bank was formed through the merger of four of Southern California’s community banking franchises. The Bank offers a range of financial services to meet the banking and financial needs of the communities it serves, with operations conducted through over 100 banking offices across California and across the West. The Bank’s deposit 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, Automated Clearing House (ACH) origination, wire transfer, direct deposit and safe deposit boxes.