Banc of California (NYSE:BANC) Posts Earnings Results, Misses Estimates By $2.01 EPS

Banc of California (NYSE:BANC) announced its earnings results on Wednesday. The bank reported ($1.61) EPS for the quarter, missing the consensus estimate of $0.40 by ($2.01), FiscalAI reports. Banc of California had a net margin of 13.58% and a return on equity of 9.25%. Banc of California’s quarterly revenue was down 94.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.31 earnings per share.

Banc of California Stock Down 9.6%

NYSE BANC traded down $2.02 during trading hours on Wednesday, hitting $19.16. The company’s stock had a trading volume of 4,578,605 shares, compared to its average volume of 2,949,103. The company has a market capitalization of $2.95 billion, a PE ratio of 14.62 and a beta of 0.73. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.31. Banc of California has a 52 week low of $13.96 and a 52 week high of $21.93. The company’s 50-day simple moving average is $20.11 and its two-hundred day simple moving average is $19.31.

Banc of California Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Monday, June 15th were issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Monday, June 15th. Banc of California’s dividend payout ratio is currently 36.64%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Piper Sandler boosted their price objective on Banc of California from $22.00 to $23.00 and gave the company an “overweight” rating in a research note on Monday, April 27th. DA Davidson reaffirmed a “buy” rating and set a $24.00 price objective on shares of Banc of California in a research report on Tuesday, April 28th. Barclays lowered their price objective on shares of Banc of California from $25.00 to $23.00 and set an “overweight” rating for the company in a research note on Tuesday, April 7th. Wells Fargo & Company increased their price objective on shares of Banc of California from $22.00 to $23.00 and gave the stock an “overweight” rating in a research report on Monday, July 6th. Finally, JPMorgan Chase & Co. boosted their target price on Banc of California from $22.00 to $24.00 and gave the company an “overweight” rating in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $22.69.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of BANC. Invesco Ltd. grew its holdings in Banc of California by 3.1% during the fourth quarter. Invesco Ltd. now owns 6,010,260 shares of the bank’s stock worth $115,938,000 after buying an additional 181,029 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Banc of California by 16.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 5,863,656 shares of the bank’s stock worth $113,111,000 after acquiring an additional 810,254 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Banc of California by 8.5% in the first quarter. Goldman Sachs Group Inc. now owns 3,796,996 shares of the bank’s stock valued at $53,879,000 after purchasing an additional 297,680 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Banc of California by 243.9% in the third quarter. Bank of America Corp DE now owns 3,430,938 shares of the bank’s stock valued at $56,782,000 after purchasing an additional 2,433,394 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Banc of California by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 3,099,394 shares of the bank’s stock valued at $59,796,000 after purchasing an additional 32,085 shares in the last quarter. Institutional investors own 86.88% of the company’s stock.

Banc of California News Summary

Here are the key news stories impacting Banc of California this week:

• Positive Sentiment: Management reported 9% annualized average loan growth and 12% annualized deposit growth. Deposits increased by $799 million, or 2.9%, during the quarter, while average loans grew by $556.1 million, or 2.3%. Banc of California Second Quarter Financial Results
• Positive Sentiment: The bank said its balance-sheet repositioning should enhance long-term earnings. It retired $385 million of subordinated debt and ended the quarter with an estimated Tier 1 capital ratio of 11.67% and CET1 ratio of 9.25%, providing support for its capital position. Banc of California Reports Q2 Loss and Strategic Repositioning
• Neutral Sentiment: The company repositioned $2.3 billion of securities and began a targeted sale process for $827 million of loans. Book value per share was $18.38 and tangible book value per share was $16.44 at June 30, but the transition created significant near-term volatility. Banc of California Posts Q2 Net Loss
• Negative Sentiment: BANC reported a $251.3 million net loss available to common shareholders, or $1.61 per diluted share, versus analyst expectations of approximately $0.40 in earnings and $0.31 of EPS a year earlier. The securities repositioning generated a $256.7 million pretax loss. Banc of California Q2 Earnings Miss Estimates
• Negative Sentiment: Quarterly revenue fell to $16.4 million from $286.9 million in the prior quarter and declined 94% year over year, adding to concerns about the bank’s near-term profitability. Banc of California Posts Q2 Net Loss

About Banc of California

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.