Banc Of California Inc Stock Price, News & Analysis

Banc of California (NYSE: BANC) reported Q4 2024 net earnings of $47.0 million, or $0.28 per diluted share, compared to a Q3 2024 net loss of $1.2 million. Full-year 2024 net income was $87.1 million, or $0.52 per diluted share.

Key Q4 highlights include net interest margin expansion of 11 basis points to 3.04%, total loans growth of 4.3% annualized to $23.8 billion, and noninterest expense decline of 7.6% to $181.4 million. The company strengthened its CET1 capital ratio to 10.55% and increased book value per share to $17.78.

Notable improvements include lower funding costs by 27 basis points versus Q3, growth in average noninterest-bearing deposits to 29.1% of total deposits, and achievement of merger cost savings targets. The company's balance sheet shows total assets of $33.5 billion, with total deposits of $27.2 billion and total stockholders' equity of $3.5 billion.

Banc of California (NYSE: BANC) has launched the Banc of California Wildfire Relief & Recovery Fund with a $1 million initial donation to support communities affected by Los Angeles area wildfires. The fund will address immediate disaster relief needs and long-term rebuilding of communities, homes, businesses, and infrastructure.

The bank will establish an advisory board of business and civic leaders to guide fund allocation and develop specific lending programs for recovery efforts. The initiative includes matching employee donations and accepting public contributions through their website at Bancofcal.com/SoCalRelief.

Regarding wildfire impact, the bank reports that while some employees have been displaced and are receiving support, only two branches are temporarily closed. Four commercial and three residential properties in their loan portfolio have been damaged or destroyed, though all have insurance coverage. The bank states no material impact on its loan portfolio has been observed to date.

Banc of California (NYSE: BANC) has scheduled its fourth quarter and fiscal year 2024 earnings release for Thursday, January 23, 2025. The company will host a conference call at 10:00 a.m. Pacific Time on the same day to discuss the financial results.

Interested participants can join the conference call by dialing (888) 317-6003 with event code 4964279. The company will provide a live audio webcast and slide presentation on its investor relations website. An audio archive will be available within 24 hours after the call conclusion.

Banc of California has renewed its title sponsorship of the SoCal Venture Pipeline for a third consecutive year. The Pipeline, which improves access to institutional capital for Southern California-based founders seeking Seed and Series A funding, has attracted nearly 800 applicants since June 2021. Of the 88 accepted companies, 24 have secured funding totaling $112 million, and three found acquirers. The program serves as the primary sourcing engine for the Alliance's Catalyst Fund, which has invested in four SoCal-based startups. The Pipeline's portfolio reflects regional diversity, with 40% women-led and 60% minority-led companies across various industries including AI, cleantech, and software.

Banc of California (NYSE: BANC) has declared quarterly dividends for both common and preferred stockholders. Common stockholders will receive $0.10 per share, payable January 2, 2025, with a record date of December 16, 2024. Preferred stockholders of Series F shares will receive $0.4845 per depositary share, payable December 2, 2024, with a record date of November 21, 2024. The company offers a Dividend Reinvestment Plan (DRIP) allowing common stockholders to acquire additional shares at a 3% discount from market price.

Banc of California (NYSE: BANC) reported a net loss of $1.2 million, or $0.01 per diluted share, for Q3 2024. Adjusted earnings were $41.4 million, or $0.25 per diluted share. Key highlights include:

- Closed sale of $1.95 billion Civic loans, generating $1.91 billion in net proceeds
- Repositioned $742 million of securities, resulting in a $60 million pre-tax loss
- Net interest margin increased to 2.93%, up 13 basis points from Q2
- Average noninterest-bearing deposits increased to 28% of total deposits
- Achieved Q4 2024 cost targets early, with noninterest expenses down 4% to $196.2 million
- Strong capital ratios, including 10.45% CET1 ratio
- Book value per share increased to $17.75

The company is now focusing on external growth after completing major balance sheet and operational initiatives.

Banc of California (NYSE: BANC) has announced its schedule for the release of 2024 third quarter financial results. The company will release the results on Tuesday, October 22, 2024, followed by a conference call at 10:00 a.m. Pacific Time on the same day to discuss the results.

Interested parties can join the conference call by dialing (888) 317-6003 and using the event code 6084667. A live audio webcast and slide presentation will be available on the company's investor relations website prior to the call. An audio archive of the conference call will be accessible on the website within 24 hours after the call concludes.

Banc of California, a subsidiary of Banc of California, Inc. (NYSE: BANC), has appointed Ken McMullen as Executive Vice President and Treasurer. McMullen, reporting to CFO Joe Kauder, will oversee the bank's corporate treasury function, including the corporate investment portfolio, balance sheet, funding and capital strategies, and interest rate risk and liquidity management.

McMullen brings over 30 years of financial services experience, having previously served as Treasurer for BNP Paribas USA, Inc., Executive Vice President and Treasurer of Bank of the West, and most recently as Treasurer at Varo Bank. CEO Jared Wolff emphasized that this hire reflects the bank's ability to attract top talent as it continues to grow.

Banc of California (NYSE: BANC) has expanded its Specialty Finance team with key appointments, signaling a strategic move to bolster its lending capabilities. Chris Hague joins as Executive Vice President and Head of Specialty Finance, overseeing Lender Finance, Asset-Based Lending, and Corporate Asset Finance and Commercial Aviation. The bank has also welcomed back several industry veterans, including Jeff Galle, Scott Lisman, and Thomas Scott, to grow its Lender Finance portfolio.

Notably, Banc of California repurchased over $350 million of loans at par that were previously sold by PacWest prior to their merger. This move, along with the experienced team additions, positions the bank for significant growth in specialty lending, particularly in the small- and middle-market ABL sectors.