Banc of California (NYSE:BANC) Releases Quarterly Earnings Results, Misses Expectations By $2.01 EPS

Banc of California (NYSE:BANC) issued its quarterly earnings data 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%. The firm had revenue of $164.05 million for the quarter, compared to analysts’ expectations of $295.32 million. During the same period in the prior year, the firm posted $0.31 EPS. Banc of California’s revenue was down 94.0% on a year-over-year basis.

Banc of California Stock Down 12.2%

Shares of Banc of California stock opened at $18.59 on Thursday. The company’s 50 day moving average price is $20.10 and its 200-day moving average price is $19.30. Banc of California has a 52-week low of $13.96 and a 52-week high of $21.93. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89. The stock has a market capitalization of $2.87 billion, a price-to-earnings ratio of 14.19 and a beta of 0.73.

Banc of California Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Monday, June 15th. Banc of California’s dividend payout ratio is 36.64%.

Key Stories Impacting Banc of California

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

• Positive Sentiment: Management expects the repositioning to improve future earnings, targeting a 3.30%-3.40% net interest margin and $125 million-$130 million in fourth-quarter pretax, pre-provision income. Banc of California targets fourth-quarter net interest margin and pretax income
• Positive Sentiment: Despite the restructuring, average loans increased $556.1 million, or 2.3%, deposits rose $799 million, or 2.9%, and the company reported 9% annualized loan growth and 12% annualized deposit growth. Book value was $18.38 per share, while estimated Tier 1 and CET1 capital ratios were 11.67% and 9.25%, respectively. Banc of California second-quarter results and strategic repositioning
• Neutral Sentiment: The bank is repositioning its balance sheet through a $2.3 billion securities transaction, a planned sale of $827 million in loans and the retirement of $385 million of subordinated debt. Management views the moves as a way to enhance long-term earnings, but investors must weigh the near-term costs and execution risk. Banc of California stock falls after balance-sheet changes
• Negative Sentiment: Banc of California reported a $251.3 million net loss available to common shareholders, or a loss of $1.61 per diluted share, versus analysts’ expected profit of approximately $0.40 per share. Revenue was $164.05 million, well below the $295.32 million consensus estimate and sharply lower year over year. Banc of California shares gap down on disappointing earnings
• Negative Sentiment: The securities repositioning generated a $256.7 million pretax loss, making the quarter’s results look particularly weak and raising concerns about near-term profitability. The earnings miss prompted the stock to gap lower as investors focused on the magnitude of the loss rather than the bank’s growth metrics. Banc of California takes a large second-quarter loss due to restructuring

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of BANC. Triumph Capital Management raised its position in shares of Banc of California by 32.8% during the fourth quarter. Triumph Capital Management now owns 2,025 shares of the bank’s stock valued at $39,000 after buying an additional 500 shares during the last quarter. CIBC Asset Management Inc boosted its holdings in shares of Banc of California by 4.5% during the 4th quarter. CIBC Asset Management Inc now owns 14,652 shares of the bank’s stock valued at $283,000 after purchasing an additional 637 shares during the last quarter. Maryland State Retirement & Pension System grew its position in shares of Banc of California by 4.2% during the fourth quarter. Maryland State Retirement & Pension System now owns 19,630 shares of the bank’s stock valued at $379,000 after purchasing an additional 783 shares in the last quarter. Amundi increased its holdings in shares of Banc of California by 5.6% in the third quarter. Amundi now owns 23,048 shares of the bank’s stock worth $410,000 after purchasing an additional 1,222 shares during the last quarter. Finally, LPL Financial LLC lifted its position in shares of Banc of California by 7.1% in the fourth quarter. LPL Financial LLC now owns 20,004 shares of the bank’s stock worth $386,000 after buying an additional 1,322 shares in the last quarter. Institutional investors own 86.88% of the company’s stock.

Wall Street Analysts Forecast Growth

BANC has been the topic of a number of research analyst reports. Barclays decreased their price target on shares of Banc of California from $25.00 to $23.00 and set an “overweight” rating on the stock in a report on Tuesday, April 7th. Weiss Ratings downgraded Banc of California from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on Banc of California from $22.00 to $24.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 1st. Wells Fargo & Company upped their price objective on Banc of California from $22.00 to $23.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Finally, DA Davidson reissued a “buy” rating and set a $24.00 price objective on shares of Banc of California in a report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $22.69.

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.