Banc of California (NYSE:BANC) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Banc of California (NYSE:BANC) announced its quarterly earnings data on Tuesday. The bank reported $0.46 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.01, Zacks reports. The business had revenue of $303.07 million during the quarter, compared to analyst estimates of $306.27 million. Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The company’s revenue was up 5.6% on a year-over-year basis. During the same period last year, the firm posted $0.38 EPS.

Banc of California Stock Down 0.2%

NYSE BANC traded down $0.04 during midday trading on Thursday, hitting $18.43. 1,016,360 shares of the company traded hands, compared to its average volume of 2,832,843. Banc of California has a 52 week low of $16.12 and a 52 week high of $21.93. The company’s 50-day simple moving average is $18.03 and its 200-day simple moving average is $18.97. The company has a market cap of $2.92 billion, a PE ratio of -43.94 and a beta of 0.77. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.89 and a quick ratio of 0.86.

Banc of California Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th were issued a dividend of $0.12 per share. The ex-dividend date was Tuesday, September 15th. This represents a $0.48 dividend on an annualized basis and a yield of 2.6%. Banc of California’s dividend payout ratio is currently -114.29%.

Insider Transactions at Banc of California

In related news, General Counsel Ido Dotan sold 10,541 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $18.30, for a total transaction of $192,900.30. Following the completion of the transaction, the general counsel owned 45,702 shares in the company, valued at $836,346.60. The trade was a 18.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Olivia Lindsay sold 6,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $19.50, for a total value of $117,000.00. Following the transaction, the insider owned 32,842 shares in the company, valued at approximately $640,419. This trade represents a 15.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.78% of the stock is currently owned by company insiders.

Trending Headlines about Banc of California

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

• Positive Sentiment: Q3 earnings beat expectations: Diluted EPS was $0.46, up 21% year over year from $0.38 and ahead of the $0.45 analyst consensus. Net earnings available to common shareholders rose to $73.1 million. Banc of California Tops Q3 Earnings Estimates
• Positive Sentiment: Operating performance improved: Total revenue increased approximately 6% year over year to about $303 million, while pre-tax, pre-provision income climbed 16% to $118.4 million. Loans held for investment grew by $379.7 million to $24.6 billion, and deposits increased to $28.3 billion. Banc of California Reports Q3 EPS and Revenue Growth
• Positive Sentiment: Constructive fourth-quarter outlook: Management forecast fourth-quarter pre-tax, pre-provision income of $125 million to $130 million, above the third-quarter result, and guided to a net interest margin of 3.35% to 3.40%, slightly above the 3.34% reported for Q3. Banc of California Q4 Guidance
• Neutral Sentiment: Capital remained sound, with the common equity Tier 1 ratio improving 45 basis points sequentially to 9.70%. Analysts and management characterized the earnings call as signaling improving momentum, although investors may continue to focus on balance-sheet execution and valuation. Banc of California Earnings Call Highlights
• Negative Sentiment: Revenue missed estimates: Quarterly revenue of roughly $303 million was below the approximately $306 million consensus forecast. That miss, combined with a still-negative reported net margin, may explain why the stock has not responded more strongly to the EPS beat. Banc of California Q3 Sales

Analyst Upgrades and Downgrades

BANC has been the topic of a number of recent research reports. Piper Sandler decreased their price objective on Banc of California from $23.00 to $22.00 and set an “overweight” rating on the stock in a research report on Thursday, October 1st. Wells Fargo & Company dropped their target price on Banc of California from $23.00 to $22.00 and set an “overweight” rating for the company in a report on Wednesday, September 30th. UBS Group assumed coverage on Banc of California in a report on Monday, September 14th. They issued a “neutral” rating and a $20.00 target price for the company. Barclays boosted their target price on Banc of California from $22.00 to $23.00 and gave the company an “overweight” rating in a research report on Monday, October 5th. Finally, JPMorgan Chase & Co. increased their price target on Banc of California from $22.00 to $24.00 and gave the company an “overweight” rating in a report on Wednesday, July 1st. Seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $22.50.

Banc of California Company Profile

Banc of California, Inc is a bank holding company whose principal subsidiary, Banc of California, N.A., provides banking and financial services to businesses, professionals, nonprofit organizations and individuals. The bank operates as a full-service commercial bank, offering deposit accounts, commercial and consumer loans, home lending, treasury management, cash-management services and online and mobile banking.

The company primarily serves customers throughout California, with operations and relationships extending into select western markets.