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    Banc of California, Inc. Reports First Quarter Diluted Earnings per Share of $0.26 and Loan Growth of 6% Annualized in the First Quarter; Upsizes Stock Buyback Program to $300 Million

    4/23/25 4:15:00 PM ET
    $BANC
    Major Banks
    Finance
    Get the next $BANC alert in real time by email

    Banc of California, Inc. (NYSE:BANC):

    $0.26

    Earnings Per Share

     

    $18.17

    Book Value Per Share

     

    $16.12

    Tangible Book Value

    Per Share(1)

     

     

    10.43%

    CET1 Ratio

     

     

    6%

    Annualized Loan Growth

    Banc of California, Inc. (NYSE:BANC) ("Banc of California" or the "Company"), the parent company of wholly-owned subsidiary Banc of California (the "Bank"), today reported financial results for the first quarter ended March 31, 2025. The Company reported net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter of 2025. This compares to net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter of 2024.

    The Company also announced today an upsize of its stock repurchase program, first announced on March 17, 2025, from $150 million to $300 million, inclusive of $150.0 million purchased through April 21, 2025, and expanded to cover both the Company's common stock and depositary shares representing its preferred stock.

    First Quarter of 2025 Financial Highlights:

    • Total loans of $24.1 billion grew by 6% annualized or $344.9 million from 4Q24 driven by increases in nearly all loan segments and highlighted by commercial and industrial ("C&I") growth in the lender finance, fund finance, and warehouse loan portfolios.
    • New loan originations totaled $2.6 billion including production, purchased loans, and unfunded new commitments with a weighted average interest rate on production of 7.20%.
    • Repurchase of $38.5 million of common stock with a weighted average price per share of $14.36 during the first quarter, and $150.0 million with a weighted average price per share of $13.05 cumulatively through April 21, 2025, or 6.8% of common shares outstanding as of March 17, 2025, the date that the $150 million authorization was announced.
    • Net interest margin up 4 basis points vs 4Q24 to 3.08% mainly driven by lower average costs of deposits.
    • Average total cost of deposits declined by 14 basis points to 2.12% vs 4Q24.
    • Average noninterest-bearing deposits stable at 29% of average total deposits.
    • High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $15.1 billion at March 31, 2025, which was 2.1 times greater than uninsured and uncollateralized deposits.
    • Strong capital ratios(1) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.83% Tier 1 capital ratio and 10.43% CET 1 capital ratio.
    • Continued growth in book value per share to $18.17, up 2.2% vs 4Q24 and tangible book value per share(2) to $16.12, up 2.5% vs 4Q24
    • Strong credit quality with low net charge-offs at 0.24% of average loans and leases. Appropriate credit reserves with the ACL ratio mostly flat at 1.10% of total loans and leases and the economic coverage ratio(2) at 1.66%.
    (1)

    Capital ratio for March 31, 2025 is preliminary

    (2)

    Non-GAAP measure; refer to section "Non-GAAP Measures"

    Jared Wolff, President & CEO of Banc of California, commented, "Our first quarter results came in as expected, with positive trends in our core earnings drivers including net interest margin expansion, solid loan growth, and prudent expense management. We have continued to capitalize on our strong market position to bring in new attractive client relationships, providing us with high quality lending opportunities and stable deposits. As a result, both book value and tangible book value per share increased, and liquidity levels remained high. Given our healthy capital and liquidity position, and our commitment to delivering excellent, sustainable returns to our shareholders, we announced an opportunistic share buyback program in mid-March and have repurchased 6.8% of our shares as of April 21."

    Mr. Wolff continued, "While the economic outlook remains uncertain, demand in our key markets continues to support expansion in our net interest margin, loan and deposit growth, and improvement in operating efficiency as we grow revenue while managing our expense levels. Our capital, liquidity, and credit loss coverage positions remain healthy, allowing us to operate comfortably under a variety of economic scenarios, including the market volatility we are currently experiencing. We remain committed to leveraging our position of strength to serve our customers and help them navigate successfully through these volatile times."

    INCOME STATEMENT HIGHLIGHTS

     

    Three Months Ended

     

    March 31,

     

    December 31,

     

    March 31,

    Summary Income Statement

    2025

     

    2024

     

    2024

     

    (In thousands)

    Total interest income

    $

    406,655

     

    $

    424,519

     

     

    $

    478,704

     

    Total interest expense

     

    174,291

     

     

    189,234

     

     

     

    249,602

     

    Net interest income

     

    232,364

     

     

    235,285

     

     

     

    229,102

     

    Provision for credit losses

     

    9,300

     

     

    12,801

     

     

     

    10,000

     

    Gain (loss) on sale of loans

     

    211

     

     

    20

     

     

     

    (448

    )

    Loss on sale of securities

     

    —

     

     

    (454

    )

     

     

    —

     

    Other noninterest income

     

    33,439

     

     

    29,423

     

     

     

    34,264

     

    Total noninterest income

     

    33,650

     

     

    28,989

     

     

     

    33,816

     

    Total revenue

     

    266,014

     

     

    264,274

     

     

     

    262,918

     

    Acquisition, integration and reorganization costs

     

    —

     

     

    (1,023

    )

     

     

    —

     

    Other noninterest expense

     

    183,653

     

     

    182,393

     

     

     

    210,518

     

    Total noninterest expense

     

    183,653

     

     

    181,370

     

     

     

    210,518

     

    Earnings before income taxes

     

    73,061

     

     

    70,103

     

     

     

    42,400

     

    Income tax expense

     

    19,493

     

     

    13,184

     

     

     

    11,548

     

    Net earnings

     

    53,568

     

     

    56,919

     

     

     

    30,852

     

    Preferred stock dividends

     

    9,947

     

     

    9,947

     

     

     

    9,947

     

    Net earnings available to common and equivalent stockholders

    $

    43,621

     

    $

    46,972

     

     

    $

    20,905

     

     

     

     

     

     

     

    Diluted earnings per share

    $

    0.26

     

    $

    0.28

     

     

    $

    0.12

     

    Net Interest Income and Margin

    Q1-2025 vs Q4-2024

    Net interest income decreased by $2.9 million to $232.4 million for the first quarter from $235.3 million for the fourth quarter attributable primarily to the following:

    • A decrease of $11.2 million in interest income from loans due primarily to lower day count, lower loan prepayments, and lower market interest rates reflective of a full quarter impact of the 50 basis points federal funds rate cuts in the fourth quarter.
    • A decrease of $6.8 million in interest income from deposits in financial institutions driven by lower balances, as we maintained a lower cash target level in the first quarter, and lower market interest rates.

    This was partially offset by:

    • A decrease of $13.6 million in interest expense due primarily to lower interest paid on interest-bearing deposits as a result of deposit rate repricing driven by the federal funds rate cuts in the fourth quarter and lower day count.
    • A decrease of $1.4 million in interest expense paid on our borrowings and subordinated debt driven by lower market interest rates.

    The net interest margin was 3.08% for the first quarter compared to 3.04% for the fourth quarter. Our net interest margin increased by 4 basis points primarily driven by lower average total cost of funds, offset partially by lower average yield on interest-earning assets as described below:

    • The average total cost of funds decreased by 13 basis points to 2.42% for the first quarter compared to 2.55% for the fourth quarter due mainly to lower market interest rates and a lower average balance of interest-bearing deposits, offset partially by a lower balance of average noninterest-bearing deposits. The average cost of deposits decreased by 14 basis points to 2.12% in the first quarter from 2.26% for the fourth quarter reflecting a full quarter impact of the federal funds rate cuts. Average total deposits decreased by $247.0 million, with average noninterest-bearing deposits decreasing by $190.9 million for the first quarter compared to the fourth quarter, and average interest-bearing deposits decreasing by $56.1 million for those same comparative periods. Average noninterest-bearing deposits represented 29% of average total deposits in both the first quarter and the fourth quarter.
    • The average yield on interest-earning assets decreased by 9 basis points to 5.39% for the first quarter compared to 5.48% for the fourth quarter due mainly to the average yield on deposits in financial institutions decreasing by 33 basis points and the average yield on loans and leases decreasing by 11 basis points, offset partially by the average yield on investment securities increasing by 5 basis points. The average yield on deposits in financial institutions was 4.41% for the first quarter compared to 4.74% for the fourth quarter, driven by the federal funds rate cuts as described above. The average yield on loans and leases was 5.90% for the first quarter compared to 6.01% for the fourth quarter due primarily to aforementioned lower loan prepayments and lower market interest rates. These decreases were partially offset by an increase in the average yield on investment securities, which was 3.24% in the first quarter compared to 3.19% in the fourth quarter as we continued to benefit from the balance sheet repositioning actions taken in 2024 and the purchase of and reinvestment into higher-yielding securities. Additionally, average deposits in financial institutions decreased by $386.6 million to $2.1 billion in the first quarter from $2.5 billion in the fourth quarter as we maintained a lower cash target level.

     

    Three Months Ended

    Increase (Decrease)

     

    March 31, 2025

    December 31, 2024

     

    QoQ

    Summary

     

    Interest

    Average

     

    Interest

    Average

     

     

    Average

    Average Balance

    Average

    Income/

    Yield/

    Average

    Income/

    Yield/

     

    Average

    Yield/

    and Yield/Cost Data

    Balance

    Expense

    Cost

    Balance

    Expense

    Cost

     

    Balance

    Cost

     

    (Dollars in thousands)

    Assets:

     

     

     

     

     

     

     

     

     

    Loans and leases(1)

    $

    23,788,647

    $

    346,103

    5.90 %

     

    $

    23,649,271

    $

    357,303

    6.01 %

     

    $

    139,376

     

    (0.11)%

    Investment securities

     

    4,734,037

     

    37,862

    3.24 %

     

     

    4,700,742

     

    37,743

    3.19 %

     

     

    33,295

     

    0.05 %

    Deposits in financial institutions

     

    2,088,139

     

    22,690

    4.41 %

     

    2,474,732

     

    29,473

    4.74 %

     

     

    (386,593

    )

    (0.33)%

    Total interest-earning assets

    $

    30,610,823

    $

    406,655

    5.39 %

    $

    30,824,745

    $

    424,519

    5.48 %

     

    $

    (213,922

    )

    (0.09)%

     

     

     

     

     

     

     

     

     

     

    Liabilities:

     

     

     

     

     

     

     

     

     

     

    Noninterest-bearing demand deposits

    $

    7,714,830

     

     

     

    $

    7,905,750

     

     

     

    $

    (190,920

    )

     

    Total interest-bearing deposits

     

    19,206,084

    $

    140,530

    2.97 %

     

     

    19,262,178

    $

    154,085

    3.18 %

     

     

    (56,094

    )

    (0.21)%

    Total deposits

    $

    26,920,914

     

    140,530

    2.12 %

    $

    27,167,928

     

    154,085

    2.26 %

     

    $

    (247,014

    )

    (0.14)%

     

     

     

     

     

     

     

     

     

     

    Total interest-bearing liabilities

    $

    21,546,621

    $

    174,291

    3.28 %

    $

    21,603,479

    $

    189,234

    3.48 %

     

    $

    (56,858

    )

    (0.20)%

     

     

     

     

     

     

     

     

     

     

    Net interest income(1)

     

    $

    232,364

     

     

     

    $

    235,285

     

     

     

     

    Net interest margin

     

     

    3.08 %

     

     

    3.04 %

     

     

    0.04 %

     

     

     

     

     

     

     

     

     

     

    Total funds(2)

    $

    29,261,451

    $

    174,291

    2.42 %

     

    $

    29,509,229

    $

    189,234

    2.55 %

     

    $

    (247,778

    )

    (0.13)%

    ______________

    (1)

    Includes net loan discount accretion of $16.0 million and $20.7 million for the three months ended March 31, 2025 and December 31, 2024.

    (2)

    Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

    Provision For Credit Losses

    Q1-2025 vs Q4-2024

    The provision for credit losses was $9.3 million for the first quarter compared to $12.8 million for the fourth quarter. The first quarter provision included a $9.7 million provision for loan losses and a $0.5 million provision for unfunded loan commitments, offset partially by a $0.9 million reversal of the provision for credit losses related to held-to-maturity ("HTM") securities. The first quarter provision for loans and unfunded loan commitments was primarily driven by net charge-off activity experienced during the quarter, partially offset by lower specific reserves and changes in portfolio mix driven by growth in loan segments with low expected credit losses.

    The fourth quarter provision included an $11.5 million provision for loan losses and a $1.5 million provision for unfunded loan commitments, offset partially by a $0.2 million reversal of the provision for credit losses related to available-for-sale ("AFS") securities. The fourth quarter provision for loans and unfunded loan commitments was driven primarily by net charge-off activity during the quarter.

    Noninterest Income

    Q1-2025 vs Q4-2024

    Noninterest income increased by $4.7 million to $33.7 million for the first quarter from $29.0 million for the fourth quarter due mainly to a $2.3 million increase in dividends and gains on equity investments, a $1.7 million increase in other commissions and fees, and a $0.8 million increase in other income. The increase in dividends and gains on equity investments was due to higher gains from Small Business Investment Company ("SBIC") investments. The increase in other commissions and fees was due to higher loan-related fee income and higher customer service fees. The increase in other income was mainly driven by a $0.7 million increase in the fair value mark on credit-linked notes.

    Noninterest Expense

    Q1-2025 vs Q4-2024

    Noninterest expense increased by $2.3 million to $183.7 million for the first quarter from $181.4 million for the fourth quarter due mainly to increases of $8.8 million in compensation expenses and $3.9 million in other expenses, offset partially by decreases of $3.9 million in customer related expenses, $3.9 million in insurance and assessments expenses, and $1.6 million in loan expense. The increase in compensation was primarily due to seasonality as resets of accruals for incentive compensation, payroll taxes and benefits occur during the first quarter of the year. The increase in other expenses was primarily due to higher donations including a $1.0 million donation to the Banc of California Wildfire Relief and Recovery Fund. The decrease in customer related expenses was driven by lower earnings credit rate expenses which were impacted by the lower federal funds rate. The decrease in insurance and assessments expense was mainly due to a lower FDIC assessment and FDIC expense true-ups. The decrease in loan expenses was mostly attributable to lower legal fees driven by higher recoveries in the first quarter.

    Income Taxes

    Q1-2025 vs Q4-2024

    Income tax expense of $19.5 million was recorded for the first quarter resulting in an effective tax rate of 26.7% compared to income tax expense of $13.2 million for the fourth quarter and an effective tax rate of 18.8%. The lower fourth quarter effective tax rate was due primarily to tax benefits resulting from recording deferred tax assets at higher state tax rates.

    BALANCE SHEET HIGHLIGHTS

     

    March 31,

     

    December 31,

     

    March 31,

     

    Increase (Decrease)

    Selected Balance Sheet Items

    2025

     

    2024

     

    2024

     

    QoQ

     

    YoY

     

    (In thousands)

    Cash and cash equivalents

    $

    2,343,889

     

    $

    2,502,212

     

    $

    3,085,228

     

    $

    (158,323

    )

     

    $

    (741,339

    )

    Securities available-for-sale

     

    2,334,058

     

     

    2,246,839

     

     

    2,286,682

     

     

    87,219

     

     

     

    47,376

     

    Securities held-to-maturity

     

    2,311,912

     

     

    2,306,149

     

     

    2,291,984

     

     

    5,763

     

     

     

    19,928

     

    Loans held for sale

     

    25,797

     

     

    26,331

     

     

    80,752

     

     

    (534

    )

     

     

    (54,955

    )

    Loans and leases held for investment

     

    24,126,527

     

     

    23,781,663

     

     

    25,473,022

     

     

    344,864

     

     

     

    (1,346,495

    )

    Total assets

     

    33,779,918

     

     

    33,542,864

     

     

    36,073,516

     

     

    237,054

     

     

     

    (2,293,598

    )

     

     

     

     

     

     

     

     

     

     

    Noninterest-bearing deposits

    $

    7,593,950

     

    $

    7,719,913

     

    $

    7,833,608

     

    $

    (125,963

    )

     

    $

    (239,658

    )

    Total deposits

     

    27,193,191

     

     

    27,191,909

     

     

    28,892,407

     

     

    1,282

     

     

     

    (1,699,216

    )

    Borrowings

     

    1,670,782

     

     

    1,391,814

     

     

    2,139,498

     

     

    278,968

     

     

     

    (468,716

    )

    Total liabilities

     

    30,258,262

     

     

    30,042,915

     

     

    32,679,366

     

     

    215,347

     

     

     

    (2,421,104

    )

    Total stockholders' equity

     

    3,521,656

     

     

    3,499,949

     

     

    3,394,150

     

     

    21,707

     

     

     

    127,506

     

    Securities

    AFS securities increased by $87.2 million during the first quarter to $2.3 billion at March 31, 2025. AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $172.5 million. These AFS unrealized net losses related primarily to changes in overall interest rates and spreads and the resulting impact on valuations.

    The balance of HTM securities increased by $5.8 million in the first quarter to $2.3 billion at March 31, 2025. As of March 31, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $151.9 million remaining from the balance established at the time of transfer from AFS on June 1, 2022.

    Loans and Leases

    The following table sets forth the composition, by loan category, of our loan and lease portfolio held for investment as of the dates indicated:

     

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

     

    2025

     

    2024

     

    2024

     

    2024

     

    2024

     

    (Dollars in thousands)

    Composition of Loans and Leases

     

     

     

     

     

     

     

     

     

    Real estate mortgage:

     

     

     

     

     

     

     

     

     

    Commercial

    $

    4,489,543

     

     

    $

    4,578,772

     

     

    $

    4,557,939

     

     

    $

    4,722,585

     

     

    $

    4,896,544

     

    Multi-family

     

    6,216,084

     

     

     

    6,041,713

     

     

     

    6,009,280

     

     

     

    5,984,930

     

     

     

    6,121,472

     

    Other residential

     

    2,787,031

     

     

     

    2,807,174

     

     

     

    2,767,187

     

     

     

    2,866,085

     

     

     

    4,949,383

     

    Total real estate mortgage

     

    13,492,658

     

     

     

    13,427,659

     

     

     

    13,334,406

     

     

     

    13,573,600

     

     

     

    15,967,399

     

    Real estate construction and land:

     

     

     

     

     

     

     

     

     

    Commercial

     

    733,684

     

     

     

    799,131

     

     

     

    836,902

     

     

     

    784,166

     

     

     

    775,021

     

    Residential

     

    2,127,354

     

     

     

    2,373,162

     

     

     

    2,622,507

     

     

     

    2,573,431

     

     

     

    2,470,333

     

    Total real estate construction and land

     

    2,861,038

     

     

     

    3,172,293

     

     

     

    3,459,409

     

     

     

    3,357,597

     

     

     

    3,245,354

     

    Total real estate

     

    16,353,696

     

     

     

    16,599,952

     

     

     

    16,793,815

     

     

     

    16,931,197

     

     

     

    19,212,753

     

    Commercial:

     

     

     

     

     

     

     

     

     

    Asset-based

     

    2,305,325

     

     

     

    2,087,969

     

     

     

    2,115,311

     

     

     

    1,968,713

     

     

     

    2,061,016

     

    Venture capital

     

    1,733,074

     

     

     

    1,537,776

     

     

     

    1,353,626

     

     

     

    1,456,122

     

     

     

    1,513,641

     

    Other commercial

     

    3,340,400

     

     

     

    3,153,084

     

     

     

    2,850,535

     

     

     

    2,446,974

     

     

     

    2,245,910

     

    Total commercial

     

    7,378,799

     

     

     

    6,778,829

     

     

     

    6,319,472

     

     

     

    5,871,809

     

     

     

    5,820,567

     

    Consumer

     

    394,032

     

     

     

    402,882

     

     

     

    414,490

     

     

     

    425,903

     

     

     

    439,702

     

    Total loans and leases held for investment

    $

    24,126,527

     

     

    $

    23,781,663

     

     

    $

    23,527,777

     

     

    $

    23,228,909

     

     

    $

    25,473,022

     

     

     

     

     

     

     

     

     

     

     

    Total unfunded loan commitments

    $

    4,858,960

     

     

    $

    4,887,690

     

     

    $

    5,008,449

     

     

    $

    5,256,473

     

     

    $

    5,482,672

     

     

     

     

     

     

     

     

     

     

     

    Composition as % of Total

     

     

     

     

     

     

     

     

     

    Loans and Leases

     

     

     

     

     

     

     

     

     

    Real estate mortgage:

     

     

     

     

     

     

     

     

     

    Commercial

     

    19

    %

     

     

    19

    %

     

     

    19

    %

     

     

    20

    %

     

     

    19

    %

    Multi-family

     

    26

    %

     

     

    26

    %

     

     

    25

    %

     

     

    26

    %

     

     

    24

    %

    Other residential

     

    11

    %

     

     

    12

    %

     

     

    12

    %

     

     

    12

    %

     

     

    19

    %

    Total real estate mortgage

     

    56

    %

     

     

    57

    %

     

     

    56

    %

     

     

    58

    %

     

     

    62

    %

    Real estate construction and land:

     

     

     

     

     

     

     

     

     

    Commercial

     

    3

    %

     

     

    3

    %

     

     

    4

    %

     

     

    4

    %

     

     

    3

    %

    Residential

     

    9

    %

     

     

    10

    %

     

     

    11

    %

     

     

    11

    %

     

     

    10

    %

    Total real estate construction and land

     

    12

    %

     

     

    13

    %

     

     

    15

    %

     

     

    15

    %

     

     

    13

    %

    Total real estate

     

    68

    %

     

     

    70

    %

     

     

    71

    %

     

     

    73

    %

     

     

    75

    %

    Commercial:

     

     

     

     

     

     

     

     

     

    Asset-based

     

    9

    %

     

     

    9

    %

     

     

    9

    %

     

     

    8

    %

     

     

    8

    %

    Venture capital

     

    7

    %

     

     

    6

    %

     

     

    6

    %

     

     

    6

    %

     

     

    6

    %

    Other commercial

     

    14

    %

     

     

    13

    %

     

     

    12

    %

     

     

    11

    %

     

     

    9

    %

    Total commercial

     

    30

    %

     

     

    28

    %

     

     

    27

    %

     

     

    25

    %

     

     

    23

    %

    Consumer

     

    2

    %

     

     

    2

    %

     

     

    2

    %

     

     

    2

    %

     

     

    2

    %

    Total loans and leases held for investment

     

    100

    %

     

     

    100

    %

     

     

    100

    %

     

     

    100

    %

     

     

    100

    %

    Total loans and leases held for investment increased by $344.9 million in the first quarter and totaled $24.1 billion at March 31, 2025. The increase in loans and leases held for investment was due primarily to increased balances in the asset-based, venture capital, other commercial, and multi-family loan portfolios, offset partially by a decrease in the real estate construction and land loan segment, and the commercial real estate mortgage and other residential real estate mortgage loan portfolios. Loan originations including production, purchased loans, and unfunded new commitments were $2.6 billion in the first quarter, most of which onboarded towards the end of the quarter, with a weighted average interest rate on production of 7.20%.

    Credit Quality

     

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

    Asset Quality Information and Ratios

    2025

     

    2024

     

    2024

     

    2024

     

    2024

     

    (Dollars in thousands)

    Delinquent loans and leases held for investment:

     

     

     

     

     

     

     

     

     

    30 to 89 days delinquent

    $

    100,664

     

     

    $

    91,347

     

     

    $

    52,927

     

     

    $

    27,962

     

     

    $

    178,421

     

    90+ days delinquent

     

    99,976

     

     

     

    88,846

     

     

     

    72,037

     

     

     

    55,792

     

     

     

    57,573

     

    Total delinquent loans and leases

    $

    200,640

     

     

    $

    180,193

     

     

    $

    124,964

     

     

    $

    83,754

     

     

    $

    235,994

     

     

     

     

     

     

     

     

     

     

     

    Total delinquent loans and leases to loans and leases held for investment

     

    0.83

    %

     

     

    0.76

    %

     

     

    0.53

    %

     

     

    0.36

    %

     

     

    0.93

    %

     

     

     

     

     

     

     

     

     

     

    Nonperforming assets, excluding loans held for sale:

     

     

     

     

     

     

     

     

     

    Nonaccrual loans and leases

    $

    213,480

     

     

    $

    189,605

     

     

    $

    168,341

     

     

    $

    117,070

     

     

    $

    145,785

     

    90+ days delinquent loans and still accruing

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    —

     

    Total nonperforming loans and leases ("NPLs")

     

    213,480

     

     

     

    189,605

     

     

     

    168,341

     

     

     

    117,070

     

     

     

    145,785

     

    Foreclosed assets, net

     

    5,474

     

     

     

    9,734

     

     

     

    8,661

     

     

     

    13,302

     

     

     

    12,488

     

    Total nonperforming assets ("NPAs")

    $

    218,954

     

     

    $

    199,339

     

     

    $

    177,002

     

     

    $

    130,372

     

     

    $

    158,273

     

     

     

     

     

     

     

     

     

     

     

    Classified loans and leases held for investment

    $

    764,723

     

     

    $

    563,502

     

     

    $

    533,591

     

     

    $

    415,498

     

     

    $

    366,729

     

    Allowance for loan and lease losses

    $

    234,986

     

     

    $

    239,360

     

     

    $

    254,345

     

     

    $

    247,762

     

     

    $

    291,503

     

    Allowance for loan and lease losses to NPLs

     

    110.07

    %

     

     

    126.24

    %

     

     

    151.09

    %

     

     

    211.64

    %

     

     

    199.95

    %

    NPLs to loans and leases held for investment

     

    0.88

    %

     

     

    0.80

    %

     

     

    0.72

    %

     

     

    0.50

    %

     

     

    0.57

    %

    NPAs to total assets

     

    0.65

    %

     

     

    0.59

    %

     

     

    0.53

    %

     

     

    0.37

    %

     

     

    0.44

    %

    Classified loans and leases to loans and leases held for investment

     

    3.17

    %

     

     

    2.37

    %

     

     

    2.27

    %

     

     

    1.79

    %

     

     

    1.44

    %

    The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, and robust credit metrics. In light of the current economic uncertainty, we enhanced our credit monitoring process to more proactively manage potential risks. In the first quarter, credit downgrades were primarily driven by rate-sensitive loans in the higher interest rate environment, although these loans are well-collateralized with low loan-to-value ("LTV") ratios that we believe mitigates the risk of potential losses. Classified inflows were mainly driven by migration of rate-sensitive multifamily loans, all of which remain current, maintain strong collateral values, and are in attractive California locations. Nonperforming and delinquent loan inflows in the quarter were mainly driven by one commercial real estate loan which is full recourse to the guarantor and we believe has adequate collateral coverage.

    At March 31, 2025, total delinquent loans and leases were $200.6 million, compared to $180.2 million at December 31, 2024. The $20.4 million increase in total delinquent loans was due mainly to an increase in the 30 to 89 days delinquent category of $27.0 million in commercial real estate mortgage loans, offset partially by decreases of $8.6 million in multi-family real estate mortgage loans and $5.5 million in venture capital loans. In the 90 or more days delinquent category, there was a $14.9 million increase in commercial real estate mortgage loans, offset partially by decreases of $2.6 million in other residential real estate mortgage loans and $2.4 million in other commercial loans. Total delinquent loans and leases as a percentage of loans and leases held for investment increased to 0.83% at March 31, 2025, compared to 0.76% at December 31, 2024.

    At March 31, 2025, nonperforming loans and leases were $213.5 million, compared to $189.6 million at December 31, 2024. During the first quarter, nonperforming loans and leases increased by $23.9 million due to additions of $67.8 million, offset partially by charge-offs of $12.6 million and payoffs, paydowns, and other reductions of $31.3 million. The addition to nonperforming loans and leases was mainly related to the one commercial real estate loan as described above.

    Nonperforming loans and leases as a percentage of loans and leases held for investment increased to 0.88% at March 31, 2025 compared to 0.80% at December 31, 2024.

    At March 31, 2025, nonperforming assets were $219.0 million, or 0.65% of total assets, compared to $199.3 million, or 0.59% of total assets, as of December 31, 2024. At March 31, 2025, nonperforming assets included $5.5 million of foreclosed assets, consisting primarily of single-family residences.

    Allowance for Credit Losses – Loans

     

    Three Months Ended

     

    March 31,

     

    December 31,

     

    March 31,

    Allowance for Credit Losses - Loans

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

    Allowance for loan and lease losses ("ALLL"):

     

     

     

     

     

    Balance at beginning of period

    $

    239,360

     

     

    $

    254,345

     

     

    $

    281,687

     

    Charge-offs

     

    (16,551

    )

     

     

    (27,696

    )

     

     

    (5,014

    )

    Recoveries

     

    2,477

     

     

     

    1,211

     

     

     

    3,830

     

    Net charge-offs

     

    (14,074

    )

     

     

    (26,485

    )

     

     

    (1,184

    )

    Provision for loan losses

     

    9,700

     

     

     

    11,500

     

     

     

    11,000

     

    Balance at end of period

    $

    234,986

     

     

    $

    239,360

     

     

    $

    291,503

     

     

     

     

     

     

     

    Reserve for unfunded loan commitments ("RUC"):

     

     

     

     

     

    Balance at beginning of period

    $

    29,071

     

     

    $

    27,571

     

     

    $

    29,571

     

    Provision for credit losses

     

    500

     

     

     

    1,500

     

     

     

    (1,000

    )

    Balance at end of period

    $

    29,571

     

     

    $

    29,071

     

     

    $

    28,571

     

     

     

     

     

     

     

    Allowance for credit losses ("ACL") - Loans:

     

     

     

     

     

    Balance at beginning of period

    $

    268,431

     

     

    $

    281,916

     

     

    $

    311,258

     

    Charge-offs

     

    (16,551

    )

     

     

    (27,696

    )

     

     

    (5,014

    )

    Recoveries

     

    2,477

     

     

     

    1,211

     

     

     

    3,830

     

    Net charge-offs

     

    (14,074

    )

     

     

    (26,485

    )

     

     

    (1,184

    )

    Provision for credit losses

     

    10,200

     

     

     

    13,000

     

     

     

    10,000

     

    Balance at end of period

    $

    264,557

     

     

    $

    268,431

     

     

    $

    320,074

     

     

     

     

     

     

     

    ALLL to loans and leases held for investment

     

    0.97

    %

     

     

    1.01

    %

     

     

    1.14

    %

    ACL to loans and leases held for investment

     

    1.10

    %

     

     

    1.13

    %

     

     

    1.26

    %

    ACL to NPLs

     

    123.93

    %

     

     

    141.57

    %

     

     

    219.55

    %

    ACL to NPAs

     

    120.83

    %

     

     

    134.66

    %

     

     

    202.23

    %

    Annualized net charge-offs to average loans and leases

     

    0.24

    %

     

     

    0.45

    %

     

     

    0.02

    %

    The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $264.6 million, or 1.10% of total loans and leases, at March 31, 2025, compared to $268.4 million, or 1.13% of total loans and leases, at December 31, 2024. The $3.9 million decrease in the allowance was due to net charge-offs of $14.1 million, offset partially by a $10.2 million provision. The decrease in the ACL coverage ratio was driven by improvement in the economic forecast compared to the fourth quarter, a shift in the portfolio mix driven by growth in loan categories with lower expected losses, and the impact of charge-offs, offset partially by the impact of changes in risk ratings in the venture lending and commercial construction loan portfolios.

    Our ability to absorb credit losses is also bolstered by (i) $115.2 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.3 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $20.9 million on approximately $1.5 billion of purchased loans without credit deterioration that were originated by Banc of California prior to the merger. When the loss coverage from the credit-linked notes and unearned credit marks is added to our allowance for credit losses, this provides additional economic coverage on top of our ACL ratio. We refer to this adjusted ACL ratio as our economic coverage ratio(1), which equaled 1.66% of total loans and leases at March 31, 2025 compared to 1.72% at December 31, 2024.

    The ACL coverage of nonperforming loans and leases was 124% at March 31, 2025 compared to 142% at December 31, 2024.

    Net charge-offs were 0.24% of average loans and leases (annualized) for the first quarter, compared to 0.45% for the fourth quarter. The decrease in net charge-offs in the first quarter was attributable primarily to two commercial loans, one loan secured by an office property and another commercial real estate loan. One of the charge-offs recognized during the quarter was specifically reserved for in December 2024.

    (1) Non-GAAP measure; refer to section "Non-GAAP Measures"

    Deposits and Client Investment Funds

    The following table sets forth the composition of our deposits at the dates indicated:

     

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

     

    2025

     

    2024

     

    2024

     

    2024

     

    2024

     

    (Dollars in thousands)

    Composition of Deposits

     

     

     

     

     

     

     

     

     

    Noninterest-bearing checking

    $

    7,593,950

     

     

    $

    7,719,913

     

     

    $

    7,811,796

     

     

    $

    7,825,007

     

     

    $

    7,833,608

     

    Interest-bearing:

     

     

     

     

     

     

     

     

     

    Checking

     

    7,747,051

     

     

     

    7,610,705

     

     

     

    7,539,899

     

     

     

    7,309,833

     

     

     

    7,836,097

     

    Money market

     

    5,367,788

     

     

     

    5,361,635

     

     

     

    5,039,607

     

     

     

    4,837,025

     

     

     

    5,020,110

     

    Savings

     

    1,999,062

     

     

     

    1,933,232

     

     

     

    1,992,364

     

     

     

    2,040,461

     

     

     

    2,016,398

     

    Time deposits:

     

     

     

     

     

     

     

     

     

    Non-brokered

     

    2,490,639

     

     

     

    2,488,217

     

     

     

    2,451,340

     

     

     

    2,758,067

     

     

     

    2,761,836

     

    Brokered

     

    1,994,701

     

     

     

    2,078,207

     

     

     

    1,993,263

     

     

     

    4,034,057

     

     

     

    3,424,358

     

    Total time deposits

     

    4,485,340

     

     

     

    4,566,424

     

     

     

    4,444,603

     

     

     

    6,792,124

     

     

     

    6,186,194

     

    Total interest-bearing

     

    19,599,241

     

     

     

    19,471,996

     

     

     

    19,016,473

     

     

     

    20,979,443

     

     

     

    21,058,799

     

    Total deposits

    $

    27,193,191

     

     

    $

    27,191,909

     

     

    $

    26,828,269

     

     

    $

    28,804,450

     

     

    $

    28,892,407

     

     

     

     

     

     

     

     

     

     

     

    Composition as % of

     

     

     

     

     

     

     

     

     

    Total Deposits

     

     

     

     

     

     

     

     

     

    Noninterest-bearing checking

     

    28

    %

     

     

    28

    %

     

     

    29

    %

     

     

    27

    %

     

     

    27

    %

    Interest-bearing:

     

     

     

     

     

     

     

     

     

    Checking

     

    29

    %

     

     

    28

    %

     

     

    28

    %

     

     

    25

    %

     

     

    27

    %

    Money market

     

    20

    %

     

     

    20

    %

     

     

    19

    %

     

     

    17

    %

     

     

    17

    %

    Savings

     

    7

    %

     

     

    7

    %

     

     

    7

    %

     

     

    7

    %

     

     

    7

    %

    Time deposits:

     

     

     

     

     

     

     

     

     

    Non-brokered

     

    9

    %

     

     

    9

    %

     

     

    9

    %

     

     

    10

    %

     

     

    10

    %

    Brokered

     

    7

    %

     

     

    8

    %

     

     

    8

    %

     

     

    14

    %

     

     

    12

    %

    Total time deposits

     

    16

    %

     

     

    17

    %

     

     

    17

    %

     

     

    24

    %

     

     

    22

    %

    Total interest-bearing

     

    72

    %

     

     

    72

    %

     

     

    71

    %

     

     

    73

    %

     

     

    73

    %

    Total deposits

     

    100

    %

     

     

    100

    %

     

     

    100

    %

     

     

    100

    %

     

     

    100

    %

    Total deposits remained mostly flat in the first quarter from the fourth quarter and totaled $27.2 billion at March 31, 2025.

    Noninterest-bearing checking totaled $7.6 billion and represented 28% of total deposits at March 31, 2025, compared to $7.7 billion, or 28% of total deposits, at December 31, 2024.

    Uninsured and uncollateralized deposits of $7.4 billion represented 27% of total deposits at March 31, 2025 compared to uninsured and uncollateralized deposits of $7.2 billion, or 26% of total deposits, at December 31, 2024.

    In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These alternative options include investments managed by BofCal Asset Management Inc. ("BAM"), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $1.6 billion as of March 31, 2025, of which $813.2 million was managed by BAM.

    Borrowings

    Borrowings increased by $279.0 million to $1.7 billion at March 31, 2025 from $1.4 billion at December 31, 2024 due to higher short-term borrowings.

    Equity

    During the first quarter, total stockholders' equity increased by $21.7 million to $3.5 billion and tangible common equity(1) increased by $28.7 million to $2.7 billion at March 31, 2025. The increase in total stockholders' equity for the first quarter resulted primarily from net earnings of $53.6 million and a decrease in the unrealized after-tax net loss in AOCI for AFS and HTM securities of $33.5 million, offset partially by the repurchase of common stock of $38.5 million and common and preferred stock dividends of $27.3 million.

    At March 31, 2025, book value per common share increased to $18.17 compared to $17.78 at December 31, 2024, and tangible book value per common share(1) increased to $16.12 compared to $15.72 at December 31, 2024.

    During the first quarter of 2025, common stock repurchased under the Company's stock repurchase program authorized on March 17, 2025 totaled 2,684,823 shares at a weighted average price per share of $14.36, or $38.5 million. Through April 21, 2025, repurchases of Company common stock totaled 11,494,637 shares at a weighted average price of $13.05 per share, or $150.0 million.

    The Company also announced today an upsize of its stock repurchase program, first announced on March 17, 2025, from $150 million to $300 million, inclusive of $150.0 million purchased through April 21, 2025, and expanded to cover both the Company's common stock and depositary shares representing its preferred stock. As before, the repurchase authorization expires in March 2026. Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by the Company's management and in accordance with the regulations of the Securities and Exchange Commission (the "SEC"). The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, market conditions, and corporate and regulatory requirements.

    (1) Non-GAAP measure; refer to section "Non-GAAP Measures"

    CAPITAL AND LIQUIDITY

    Capital ratios remain strong with total risk-based capital at 16.90% and a tier 1 leverage ratio of 10.19% at March 31, 2025.

    The following table sets forth our regulatory capital ratios as of the dates indicated:

     

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

     

    2025

     

    2024

     

    2024

     

    2024

     

    2024

    Capital Ratios(1)

     

     

     

     

     

     

     

     

     

    Banc of California, Inc.

     

     

     

     

     

     

     

     

     

    Total risk-based capital ratio

    16.90 %

     

    17.05 %

     

    17.00 %

     

    16.57 %

     

    16.40 %

    Tier 1 risk-based capital ratio

    12.83 %

     

    12.97 %

     

    12.88 %

     

    12.62 %

     

    12.38 %

    Common equity tier 1 capital ratio

    10.43 %

     

    10.55 %

     

    10.46 %

     

    10.27 %

     

    10.09 %

    Tier 1 leverage ratio

    10.19 %

     

    10.15 %

     

    9.83 %

     

    9.51 %

     

    9.12 %

     

     

     

     

     

     

     

     

     

     

    Banc of California

     

     

     

     

     

     

     

     

     

    Total risk-based capital ratio

    16.19 %

     

    16.65 %

     

    16.61 %

     

    16.19 %

     

    15.88 %

    Tier 1 risk-based capital ratio

    13.72 %

     

    14.17 %

     

    14.08 %

     

    13.77 %

     

    13.34 %

    Common equity tier 1 capital ratio

    13.72 %

     

    14.17 %

     

    14.08 %

     

    13.77 %

     

    13.34 %

    Tier 1 leverage ratio

    10.88 %

     

    11.08 %

     

    10.74 %

     

    10.38 %

     

    9.84 %

    ______________

    (1) March 31, 2025 capital ratios are preliminary.

    At March 31, 2025, cash and cash equivalents decreased by $158.3 million to $2.3 billion from $2.5 billion at December 31, 2024 as we maintained a lower cash target level in the first quarter.

    Our immediately available cash and cash equivalents excluding restricted cash were $2.2 billion. Combined with total available borrowing capacity of $10.8 billion and unpledged AFS securities of $2.1 billion, total available liquidity was $15.1 billion at the end of the first quarter.

    Conference Call

    The Company will host a conference call to discuss its first quarter 2025 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 24, 2025. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 8785621. A live audio webcast will also be available, and the webcast link will be posted on the Company's Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company's Investor Relations website at www.bancofcal.com/investor or by dialing (877) 344-7529 and referencing event code 8013520.

    About Banc of California, Inc.

    Banc of California, Inc. (NYSE:BANC) is a bank holding company with over $33 billion in assets and the parent company of Banc of California. Banc of California is one of the nation's premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 80 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at www.bancofcal.com.

    Forward-Looking Statements

    This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as "believe," "will," "should," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," "strategy," or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. 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 SEC. The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

    Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of tariffs, supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company's acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and from time to time in other documents that we file with or furnish to the SEC.

    Non-GAAP Financial Measures

    Included in this press release are certain non-GAAP financial measures, such as tangible common equity, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, efficiency ratio, and economic coverage ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the "Non-GAAP Measures" section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

     

    BANC OF CALIFORNIA, INC.

    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

     

     

     

     

     

     

     

     

     

     

     

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

     

    2025

     

    2024

     

    2024

     

    2024

     

    2024

    ASSETS:

    (Dollars in thousands)

    Cash and due from banks

    $

    215,591

     

     

    $

    192,006

     

     

    $

    251,869

     

     

    $

    203,467

     

     

    $

    199,922

     

    Interest-earning deposits in financial institutions

     

    2,128,298

     

     

     

    2,310,206

     

     

     

    2,302,358

     

     

     

    2,495,343

     

     

     

    2,885,306

     

    Total cash and cash equivalents

     

    2,343,889

     

     

     

    2,502,212

     

     

     

    2,554,227

     

     

     

    2,698,810

     

     

     

    3,085,228

     

     

     

     

     

     

     

     

     

     

     

    Securities available-for-sale

     

    2,334,058

     

     

     

    2,246,839

     

     

     

    2,300,284

     

     

     

    2,244,031

     

     

     

    2,286,682

     

    Securities held-to-maturity

     

    2,311,912

     

     

     

    2,306,149

     

     

     

    2,301,263

     

     

     

    2,296,708

     

     

     

    2,291,984

     

    FRB and FHLB stock

     

    155,330

     

     

     

    147,773

     

     

     

    145,123

     

     

     

    132,380

     

     

     

    129,314

     

    Total investment securities

     

    4,801,300

     

     

     

    4,700,761

     

     

     

    4,746,670

     

     

     

    4,673,119

     

     

     

    4,707,980

     

     

     

     

     

     

     

     

     

     

     

    Loans held for sale

     

    25,797

     

     

     

    26,331

     

     

     

    28,639

     

     

     

    1,935,455

     

     

     

    80,752

     

     

     

     

     

     

     

     

     

     

     

    Loans and leases held for investment

     

    24,126,527

     

     

     

    23,781,663

     

     

     

    23,527,777

     

     

     

    23,228,909

     

     

     

    25,473,022

     

    Allowance for loan and lease losses

     

    (234,986

    )

     

     

    (239,360

    )

     

     

    (254,345

    )

     

     

    (247,762

    )

     

     

    (291,503

    )

    Total loans and leases held for investment, net

     

    23,891,541

     

     

     

    23,542,303

     

     

     

    23,273,432

     

     

     

    22,981,147

     

     

     

    25,181,519

     

     

     

     

     

     

     

     

     

     

     

    Equipment leased to others under operating leases

     

    295,032

     

     

     

    307,188

     

     

     

    314,998

     

     

     

    335,968

     

     

     

    339,925

     

    Premises and equipment, net

     

    140,347

     

     

     

    142,546

     

     

     

    143,200

     

     

     

    145,734

     

     

     

    144,912

     

    Bank owned life insurance

     

    342,810

     

     

     

    339,517

     

     

     

    343,212

     

     

     

    341,779

     

     

     

    341,806

     

    Goodwill

     

    214,521

     

     

     

    214,521

     

     

     

    216,770

     

     

     

    215,925

     

     

     

    198,627

     

    Intangible assets, net

     

    125,937

     

     

     

    132,944

     

     

     

    140,562

     

     

     

    148,894

     

     

     

    157,226

     

    Deferred tax asset, net

     

    702,323

     

     

     

    720,587

     

     

     

    706,849

     

     

     

    738,534

     

     

     

    741,158

     

    Other assets

     

    896,421

     

     

     

    913,954

     

     

     

    964,054

     

     

     

    1,028,474

     

     

     

    1,094,383

     

    Total assets

    $

    33,779,918

     

     

    $

    33,542,864

     

     

    $

    33,432,613

     

     

    $

    35,243,839

     

     

    $

    36,073,516

     

     

     

     

     

     

     

     

     

     

     

    LIABILITIES:

     

     

     

     

     

     

     

     

     

    Noninterest-bearing deposits

    $

    7,593,950

     

     

    $

    7,719,913

     

     

    $

    7,811,796

     

     

    $

    7,825,007

     

     

    $

    7,833,608

     

    Interest-bearing deposits

     

    19,599,241

     

     

     

    19,471,996

     

     

     

    19,016,473

     

     

     

    20,979,443

     

     

     

    21,058,799

     

    Total deposits

     

    27,193,191

     

     

     

    27,191,909

     

     

     

    26,828,269

     

     

     

    28,804,450

     

     

     

    28,892,407

     

    Borrowings

     

    1,670,782

     

     

     

    1,391,814

     

     

     

    1,591,833

     

     

     

    1,440,875

     

     

     

    2,139,498

     

    Subordinated debt

     

    944,908

     

     

     

    941,923

     

     

     

    942,151

     

     

     

    939,287

     

     

     

    937,717

     

    Accrued interest payable and other liabilities

     

    449,381

     

     

     

    517,269

     

     

     

    574,162

     

     

     

    651,379

     

     

     

    709,744

     

    Total liabilities

     

    30,258,262

     

     

     

    30,042,915

     

     

     

    29,936,415

     

     

     

    31,835,991

     

     

     

    32,679,366

     

     

     

     

     

     

     

     

     

     

     

    STOCKHOLDERS' EQUITY:

     

     

     

     

     

     

     

     

     

    Preferred stock

     

    498,516

     

     

     

    498,516

     

     

     

    498,516

     

     

     

    498,516

     

     

     

    498,516

     

    Common stock

     

    1,561

     

     

     

    1,586

     

     

     

    1,586

     

     

     

    1,583

     

     

     

    1,583

     

    Class B non-voting common stock

     

    5

     

     

     

    5

     

     

     

    5

     

     

     

    5

     

     

     

    5

     

    Non-voting common stock equivalents

     

    98

     

     

     

    98

     

     

     

    98

     

     

     

    101

     

     

     

    101

     

    Additional paid-in-capital

     

    3,732,376

     

     

     

    3,785,725

     

     

     

    3,802,314

     

     

     

    3,813,312

     

     

     

    3,827,777

     

    Retained deficit

     

    (387,580

    )

     

     

    (431,201

    )

     

     

    (478,173

    )

     

     

    (477,010

    )

     

     

    (497,396

    )

    Accumulated other comprehensive loss, net

     

    (323,320

    )

     

     

    (354,780

    )

     

     

    (328,148

    )

     

     

    (428,659

    )

     

     

    (436,436

    )

    Total stockholders' equity

     

    3,521,656

     

     

     

    3,499,949

     

     

     

    3,496,198

     

     

     

    3,407,848

     

     

     

    3,394,150

     

    Total liabilities and stockholders' equity

    $

    33,779,918

     

     

    $

    33,542,864

     

     

    $

    33,432,613

     

     

    $

    35,243,839

     

     

    $

    36,073,516

     

     

     

     

     

     

     

     

     

     

     

    Common shares outstanding (1)

     

    166,403,086

     

     

     

    168,825,656

     

     

     

    168,879,566

     

     

     

    168,875,712

     

     

     

    169,013,629

     

    ______________

    (1) Common shares outstanding include non-voting common equivalents that are participating securities.

    BANC OF CALIFORNIA, INC.

    CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

     

     

     

     

     

     

     

    Three Months Ended

     

    March 31,

     

    December 31,

     

    March 31,

     

    2025

     

    2024

     

    2024

     

    (In thousands, except per share amounts)

    Interest income:

     

     

     

     

     

    Loans and leases

    $

    346,103

     

     

    $

    357,303

     

     

    $

    385,465

     

    Investment securities

     

    37,862

     

     

     

    37,743

     

     

     

    34,303

     

    Deposits in financial institutions

     

    22,690

     

     

     

    29,473

     

     

     

    58,936

     

    Total interest income

     

    406,655

     

     

     

    424,519

     

     

     

    478,704

     

    Interest expense:

     

     

     

     

     

    Deposits

     

    140,530

     

     

     

    154,085

     

     

     

    194,807

     

    Borrowings

     

    18,421

     

     

     

    18,993

     

     

     

    38,124

     

    Subordinated debt

     

    15,340

     

     

     

    16,156

     

     

     

    16,671

     

    Total interest expense

     

    174,291

     

     

     

    189,234

     

     

     

    249,602

     

    Net interest income

     

    232,364

     

     

     

    235,285

     

     

     

    229,102

     

    Provision for credit losses

     

    9,300

     

     

     

    12,801

     

     

     

    10,000

     

    Net interest income after provision for credit losses

     

    223,064

     

     

     

    222,484

     

     

     

    219,102

     

    Noninterest income:

     

     

     

     

     

    Service charges on deposit accounts

     

    4,543

     

     

     

    4,770

     

     

     

    4,705

     

    Other commissions and fees

     

    9,958

     

     

     

    8,231

     

     

     

    8,142

     

    Leased equipment income

     

    10,784

     

     

     

    10,730

     

     

     

    11,716

     

    Gain (loss) on sale of loans and leases

     

    211

     

     

     

    20

     

     

     

    (448

    )

    Loss on sale of securities

     

    —

     

     

     

    (454

    )

     

     

    —

     

    Dividends and gains on equity investments

     

    2,323

     

     

     

    18

     

     

     

    3,068

     

    Warrant (loss) income

     

    (295

    )

     

     

    343

     

     

     

    178

     

    LOCOM HFS adjustment

     

    —

     

     

     

    (3

    )

     

     

    330

     

    Other income

     

    6,126

     

     

     

    5,334

     

     

     

    6,125

     

    Total noninterest income

     

    33,650

     

     

     

    28,989

     

     

     

    33,816

     

    Noninterest expense:

     

     

     

     

     

    Compensation

     

    86,417

     

     

     

    77,661

     

     

     

    92,236

     

    Occupancy

     

    15,010

     

     

     

    15,678

     

     

     

    17,968

     

    Information technology and data processing

     

    15,099

     

     

     

    14,546

     

     

     

    15,418

     

    Other professional services

     

    4,513

     

     

     

    5,498

     

     

     

    5,075

     

    Insurance and assessments

     

    7,283

     

     

     

    11,179

     

     

     

    20,461

     

    Intangible asset amortization

     

    7,160

     

     

     

    7,770

     

     

     

    8,404

     

    Leased equipment depreciation

     

    6,741

     

     

     

    7,096

     

     

     

    7,520

     

    Acquisition, integration and reorganization costs

     

    —

     

     

     

    (1,023

    )

     

     

    —

     

    Customer related expense

     

    27,751

     

     

     

    31,672

     

     

     

    30,919

     

    Loan expense

     

    2,930

     

     

     

    4,489

     

     

     

    4,491

     

    Other expense

     

    10,749

     

     

     

    6,804

     

     

     

    8,026

     

    Total noninterest expense

     

    183,653

     

     

     

    181,370

     

     

     

    210,518

     

    Earnings before income taxes

     

    73,061

     

     

     

    70,103

     

     

     

    42,400

     

    Income tax expense

     

    19,493

     

     

     

    13,184

     

     

     

    11,548

     

    Net earnings

     

    53,568

     

     

     

    56,919

     

     

     

    30,852

     

    Preferred stock dividends

     

    9,947

     

     

     

    9,947

     

     

     

    9,947

     

    Net earnings available to common and equivalent stockholders

    $

    43,621

     

     

    $

    46,972

     

     

    $

    20,905

     

    Earnings per common share:

     

     

     

     

     

    Basic

    $

    0.26

     

     

    $

    0.28

     

     

    $

    0.12

     

    Diluted

    $

    0.26

     

     

    $

    0.28

     

     

    $

    0.12

     

    Weighted average number of common shares (1) outstanding:

     

     

     

     

     

    Basic

     

    168,495

     

     

     

    168,604

     

     

     

    168,143

     

    Diluted

     

    169,434

     

     

     

    169,732

     

     

     

    168,143

     

    ______________

    (1) Common shares outstanding include non-voting common equivalents that are participating securities.

     

    BANC OF CALIFORNIA, INC.

    SELECTED FINANCIAL DATA

    (UNAUDITED)

     

     

     

     

     

     

     

    Three Months Ended

     

    March 31,

     

    December 31,

     

    March 31,

    Profitability and Other Ratios

    2025

     

    2024

     

    2024

    Return on average assets (1)

    0.65 %

     

    0.67 %

     

    0.33 %

    Adjusted ROAA (1)(2)

    0.65 %

     

    0.67 %

     

    0.37 %

    Return on average equity (1)

    6.16 %

     

    6.50 %

     

    3.66 %

    Return on average tangible common equity (1)(2)

    7.56 %

     

    7.35 %

     

    4.36 %

    Adjusted return on average tangible common equity (1)(2)

    7.56 %

     

    7.35 %

     

    4.92 %

    Dividend payout ratio (3)

    36.46 %

     

    35.71 %

     

    83.33 %

    Average yield on loans and leases (1)

    5.90 %

     

    6.01 %

     

    6.08 %

    Average yield on interest-earning assets (1)

    5.39 %

     

    5.48 %

     

    5.56 %

    Average cost of interest-bearing deposits (1)

    2.97 %

     

    3.18 %

     

    3.60 %

    Average total cost of deposits (1)

    2.12 %

     

    2.26 %

     

    2.66 %

    Average cost of interest-bearing liabilities (1)

    3.28 %

     

    3.48 %

     

    3.92 %

    Average total cost of funds (1)

    2.42 %

     

    2.55 %

     

    3.02 %

    Net interest spread

    2.11 %

     

    2.00 %

     

    1.64 %

    Net interest margin (1)

    3.08 %

     

    3.04 %

     

    2.66 %

    Noninterest income to total revenue (4)

    12.65 %

    10.97 %

    12.86 %

    Noninterest expense to average total assets (1)

    2.24 %

     

    2.15 %

     

    2.26 %

    Noninterest expense to total revenue (4)

    69.04 %

     

    68.63 %

     

    80.07 %

    Efficiency ratio (2)(5)

    66.35 %

     

    65.96 %

     

    76.87 %

    Loans to deposits ratio

    88.82 %

     

    87.56 %

     

    88.44 %

    Average loans and leases to average deposits

    88.36 %

     

    87.05 %

     

    86.65 %

    Average investment securities to average total assets

    14.21 %

     

    14.01 %

     

    12.58 %

    Average stockholders' equity to average total assets

    10.58 %

     

    10.39 %

     

    9.03 %

    ______________

    (1) Annualized.

    (2) Non-GAAP measure.

    (3) Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.

    (4) Total revenue equals the sum of net interest income and noninterest income.

    (5) Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (less gain (loss) on sale of securities).

     

    BANC OF CALIFORNIA, INC.

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

    (UNAUDITED)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    March 31, 2025

     

    December 31, 2024

     

    March 31, 2024

     

     

    Interest

    Average

     

     

    Interest

    Average

     

     

    Interest

    Average

     

    Average

    Income/

    Yield/

     

    Average

    Income/

    Yield/

     

    Average

    Income/

    Yield/

     

    Balance

    Expense

    Cost

     

    Balance

    Expense

    Cost

     

    Balance

    Expense

    Cost

     

    (Dollars in thousands)

    Assets:

     

     

     

     

     

     

     

     

     

     

     

    Loans and leases (1)

    $

    23,788,647

    $

    346,103

    5.90 %

     

    $

    23,649,271

    $

    357,303

    6.01 %

     

    $

    25,518,590

    $

    385,465

    6.08 %

    Investment securities

     

    4,734,037

     

    37,862

    3.24 %

     

     

    4,700,742

     

    37,743

    3.19 %

     

     

    4,721,556

     

    34,303

    2.92 %

    Deposits in financial institutions

     

    2,088,139

     

    22,690

    4.41 %

     

     

    2,474,732

     

    29,473

    4.74 %

     

     

    4,374,968

     

    58,936

    5.42 %

    Total interest-earning assets

     

    30,610,823

     

    406,655

    5.39 %

     

     

    30,824,745

     

    424,519

    5.48 %

     

     

    34,615,114

     

    478,704

    5.56 %

    Other assets

     

    2,697,562

     

     

     

     

    2,737,283

     

     

     

     

    2,925,593

     

     

    Total assets

    $

    33,308,385

     

     

     

    $

    33,562,028

     

     

     

    $

    37,540,707

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Liabilities and Stockholders' Equity:

     

     

     

     

     

     

     

     

     

     

     

    Interest checking

    $

    7,343,451

     

    47,879

    2.64 %

     

    $

    7,659,320

     

    56,408

    2.93 %

     

    $

    7,883,177

     

    61,549

    3.14 %

    Money market

     

    5,415,716

     

    33,003

    2.47 %

     

     

    5,003,118

     

    31,688

    2.52 %

     

     

    5,737,837

     

    41,351

    2.90 %

    Savings

     

    1,948,649

     

    12,857

    2.68 %

     

     

    1,954,625

     

    14,255

    2.90 %

     

     

    2,036,129

     

    18,030

    3.56 %

    Time

     

    4,498,268

     

    46,791

    4.22 %

     

     

    4,645,115

     

    51,734

    4.43 %

     

     

    6,108,321

     

    73,877

    4.86 %

    Total interest-bearing deposits

     

    19,206,084

     

    140,530

    2.97 %

     

     

    19,262,178

     

    154,085

    3.18 %

     

     

    21,765,464

     

    194,807

    3.60 %

    Borrowings

     

    1,397,720

     

    18,421

    5.34 %

     

     

    1,399,080

     

    18,993

    5.40 %

     

     

    2,892,406

     

    38,124

    5.30 %

    Subordinated debt

     

    942,817

     

    15,340

    6.60 %

     

     

    942,221

     

    16,156

    6.82 %

     

     

    937,005

     

    16,671

    7.16 %

    Total interest-bearing liabilities

     

    21,546,621

     

    174,291

    3.28 %

     

     

    21,603,479

     

    189,234

    3.48 %

     

     

    25,594,875

     

    249,602

    3.92 %

    Noninterest-bearing demand deposits

     

    7,714,830

     

     

     

     

    7,905,750

     

     

     

     

    7,685,027

     

     

    Other liabilities

     

    522,753

     

     

     

     

    566,635

     

     

     

     

    870,273

     

     

    Total liabilities

     

    29,784,204

     

     

     

     

    30,075,864

     

     

     

     

    34,150,175

     

     

    Stockholders' equity

     

    3,524,181

     

     

     

     

    3,486,164

     

     

     

     

    3,390,532

     

     

    Total liabilities and stockholders' equity

    $

    33,308,385

     

     

     

    $

    33,562,028

     

     

     

    $

    37,540,707

     

     

    Net interest income (1)

     

    $

    232,364

     

     

     

    $

    235,285

     

     

     

    $

    229,102

     

    Net interest spread

     

     

    2.11 %

     

     

     

    2.00 %

     

     

     

    1.64 %

    Net interest margin

     

     

    3.08 %

     

     

     

    3.04 %

     

     

     

    2.66 %

     

     

     

     

     

     

     

     

     

     

     

     

    Total deposits (2)

    $

    26,920,914

    $

    140,530

    2.12 %

     

    $

    27,167,928

    $

    154,085

    2.26 %

     

    $

    29,450,491

    $

    194,807

    2.66 %

    Total funds (3)

    $

    29,261,451

    $

    174,291

    2.42 %

     

    $

    29,509,229

    $

    189,234

    2.55 %

     

    $

    33,279,902

    $

    249,602

    3.02 %

    ______________

    (1) Includes net loan discount accretion of $16.0 million, $20.7 million, and $22.4 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024.

    (2) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.

    (3) Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted return on average assets, efficiency ratio, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.

    Tangible common equity is calculated by subtracting preferred stock, as applicable, from total common equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and any goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets, any goodwill impairment, and any unusual one-time items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

    Adjusted return on average assets ("Adjusted ROAA") is calculated by dividing annualized adjusted net earnings, after adjustment for any unusual one-time items, by average assets.

    Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net interest income and noninterest income, less gain (loss) on sale of securities).

    Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases held for investment.

    Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

     

     

     

     

     

     

     

     

     

    Tangible Common Equity

    March 31,

     

    December 31,

     

    September 30,

     

    June 30,

     

    March 31,

    and Tangible Book Value Per Share

    2025

     

    2024

     

    2024

     

    2024

     

    2024

     

    (Dollars in thousands, except per share amounts)

    Stockholders' equity

    $

    3,521,656

     

    $

    3,499,949

     

    $

    3,496,198

     

    $

    3,407,848

     

    $

    3,394,150

    Less: Preferred stock

     

    498,516

     

     

    498,516

     

     

    498,516

     

     

    498,516

     

     

    498,516

    Total common equity

     

    3,023,140

     

     

    3,001,433

     

     

    2,997,682

     

     

    2,909,332

     

     

    2,895,634

    Less: Intangible assets

     

    340,458

     

     

    347,465

     

     

    357,332

     

     

    364,819

     

     

    355,853

    Tangible common equity

     

    2,682,682

     

     

    2,653,968

     

     

    2,640,350

     

     

    2,544,513

     

     

    2,539,781

     

     

     

     

     

     

     

     

     

     

    Book value per common share (1)

    $

    18.17

     

    $

    17.78

     

    $

    17.75

     

    $

    17.23

     

    $

    17.13

    Tangible book value per common share (2)

    $

    16.12

     

    $

    15.72

     

    $

    15.63

     

    $

    15.07

     

    $

    15.03

    Common shares outstanding (3)

     

    166,403,086

     

     

    168,825,656

     

     

    168,879,566

     

     

    168,875,712

     

     

    169,013,629

    ______________

    (1) Total common equity divided by common shares outstanding.

    (2) Tangible common equity divided by common shares outstanding.

    (3) Common shares outstanding include non-voting common equivalents that are participating securities.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

     

     

     

     

     

     

    Three Months Ended

    Return on Average Tangible

    March 31,

     

    December 31,

     

    March 31,

    Common Equity ("ROATCE")

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

    Net earnings

    $

    53,568

     

     

    $

    56,919

     

     

    $

    30,852

     

     

     

     

     

     

     

    Earnings before income taxes

    $

    73,061

     

     

    $

    70,103

     

     

    $

    42,400

     

    Add: Intangible asset amortization

     

    7,160

     

     

     

    7,770

     

     

     

    8,404

     

    Adjusted earnings before income taxes used for ROATCE

     

    80,221

     

     

     

    77,873

     

     

     

    50,804

     

    Adjusted income tax expense (1)

     

    20,296

     

     

     

    19,281

     

     

     

    13,412

     

    Adjusted net earnings for ROATCE

     

    59,925

     

     

     

    58,592

     

     

     

    37,392

     

    Less: Preferred stock dividends

     

    9,947

     

     

     

    9,947

     

     

     

    9,947

     

    Adjusted net earnings available to common and equivalent stockholders for ROATCE

    $

    49,978

     

     

    $

    48,645

     

     

    $

    27,445

     

     

     

     

     

     

     

    Average stockholders' equity

    $

    3,524,181

     

     

    $

    3,486,164

     

     

    $

    3,390,532

     

    Less: Average goodwill and intangible assets

     

    344,610

     

     

     

    352,907

     

     

     

    360,680

     

    Less: Average preferred stock

     

    498,516

     

     

     

    498,516

     

     

     

    498,516

     

    Average tangible common equity

    $

    2,681,055

     

     

    $

    2,634,741

     

     

    $

    2,531,336

     

     

     

     

     

     

     

    Return on average equity (2)

     

    6.16

    %

     

     

    6.50

    %

     

     

    3.66

    %

    ROATCE (3)

     

    7.56

    %

     

     

    7.35

    %

     

     

    4.36

    %

    ______________

    (1) Effective tax rates of 25.30%, 24.76%, and 26.40% used for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

    (2) Annualized net earnings divided by average stockholders' equity.

    (3) Annualized adjusted net earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

     

     

     

     

     

     

    Three Months Ended

    Adjusted Return on Average

    March 31,

     

    December 31,

     

    March 31,

    Tangible Common Equity ("ROATCE")

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

    Net earnings

    $

    53,568

     

     

    $

    56,919

     

     

    $

    30,852

     

     

     

     

     

     

     

    Earnings before income taxes

    $

    73,061

     

     

    $

    70,103

     

     

    $

    42,400

     

    Add: Intangible asset amortization

     

    7,160

     

     

     

    7,770

     

     

     

    8,404

     

    Add: FDIC special assessment

     

    —

     

     

     

    —

     

     

     

    4,814

     

    Adjusted earnings before income taxes used for adjusted ROATCE

     

    80,221

     

     

     

    77,873

     

     

     

    55,618

     

    Adjusted income tax expense (1)

     

    20,296

     

     

     

    19,281

     

     

     

    14,683

     

    Adjusted net earnings for adjusted ROATCE

     

    59,925

     

     

     

    58,592

     

     

     

    40,935

     

    Less: Preferred stock dividends

     

    9,947

     

     

     

    9,947

     

     

     

    9,947

     

    Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE

    $

    49,978

     

     

    $

    48,645

     

     

    $

    30,988

     

     

     

     

     

     

     

    Average stockholders' equity

    $

    3,524,181

     

     

    $

    3,486,164

     

     

    $

    3,390,532

     

    Less: Average goodwill and intangible assets

     

    344,610

     

     

     

    352,907

     

     

     

    360,680

     

    Less: Average preferred stock

     

    498,516

     

     

     

    498,516

     

     

     

    498,516

     

    Average tangible common equity

    $

    2,681,055

     

     

    $

    2,634,741

     

     

    $

    2,531,336

     

     

     

     

     

     

     

    Adjusted ROATCE (2)

     

    7.56

    %

     

     

    7.35

    %

     

     

    4.92

    %

    ______________

    (1) Effective tax rates of 25.30%, 24.76%, and 26.40% used for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

    (2) Annualized adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

     

     

     

     

     

     

    Three Months Ended

    Return on Average Assets ("ROAA")

    March 31,

     

    December 31,

     

    March 31,

    and Adjusted Return on Average Assets

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

    Net earnings

    $

    53,568

     

     

    $

    56,919

     

     

    $

    30,852

     

     

     

     

     

     

     

    Earnings before income taxes

    $

    73,061

     

     

    $

    70,103

     

     

    $

    42,400

     

    Add: FDIC special assessment

     

    —

     

     

     

    —

     

     

     

    4,814

     

    Adjusted earnings before income taxes

     

    73,061

     

     

     

    70,103

     

     

     

    47,214

     

    Adjusted income tax expense (1)

     

    19,493

     

     

     

    13,184

     

     

     

    12,464

     

    Adjusted net earnings

     

    53,568

     

     

     

    56,919

     

     

     

    34,750

     

     

     

     

     

     

     

    Average total assets

    $

    33,308,385

     

     

    $

    33,562,028

     

     

    $

    37,540,707

     

    Return on average assets ("ROAA") (2)

     

    0.65

    %

     

     

    0.67

    %

     

     

    0.33

    %

    Adjusted ROAA (3)

     

    0.65

    %

     

     

    0.67

    %

     

     

    0.37

    %

    ______________

    (1) Effective tax rates of 25.30%, 24.76%, and 26.40% used for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

    (2) Annualized net earnings divided by average assets.

    (3) Annualized adjusted net earnings divided by average assets.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

    Three Months Ended

     

    March 31,

     

    December 31,

     

    March 31,

    Efficiency Ratio

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

    Noninterest expense

    $

    183,653

     

     

    $

    181,370

     

     

    $

    210,518

     

    Less: Intangible asset amortization

     

    (7,160

    )

     

     

    (7,770

    )

     

     

    (8,404

    )

    Less: Acquisition, integration, and reorganization costs

     

    —

     

     

     

    1,023

     

     

     

    —

     

    Noninterest expense used for efficiency ratio

    $

    176,493

     

     

    $

    174,623

     

     

    $

    202,114

     

     

     

     

     

     

     

    Net interest income

    $

    232,364

     

     

    $

    235,285

     

     

    $

    229,102

     

    Noninterest income

     

    33,650

     

     

     

    28,989

     

     

     

    33,816

     

    Total revenue

     

    266,014

     

     

     

    264,274

     

     

     

    262,918

     

    Add: Loss on sale of securities

     

    —

     

     

     

    454

     

     

     

    —

     

    Total revenue used for efficiency ratio

    $

    266,014

     

     

    $

    264,728

     

     

    $

    262,918

     

     

     

     

     

     

     

    Noninterest expense to total revenue

     

    69.04

    %

     

     

    68.63

    %

     

     

    80.07

    %

    Efficiency ratio (1)

     

    66.35

    %

     

     

    65.96

    %

     

     

    76.87

    %

    ______________

    (1) Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.

     

    BANC OF CALIFORNIA, INC.

    NON-GAAP MEASURES

    (UNAUDITED)

     

    March 31,

     

    December 31,

     

    March 31,

    Economic Coverage Ratio

    2025

     

    2024

     

    2024

     

    (Dollars in thousands)

     

     

     

     

     

     

    Allowance for credit losses ("ACL")

    $

    264,557

     

     

    $

    268,431

     

     

    $

    320,074

     

    Add: Unearned credit mark from purchase accounting (1)

     

    20,870

     

     

     

    22,473

     

     

     

    28,980

     

    Add: Credit-linked notes (2)

     

    115,188

     

     

     

    116,991

     

     

     

    122,782

     

    Adjusted allowance for credit losses

    $

    400,615

     

     

    $

    407,895

     

     

    $

    471,836

     

     

     

     

     

     

     

    Loans and leases held for investment

    $

    24,126,527

     

     

    $

    23,781,663

     

     

    $

    25,473,022

     

     

     

     

     

     

     

    ACL to loans and leases held for investment (3)

     

    1.10

    %

     

     

    1.13

    %

     

     

    1.26

    %

     

     

     

     

     

     

    Economic coverage ratio (4)

     

    1.66

    %

     

     

    1.72

    %

     

     

    1.85

    %

    ______________

    (1) Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with non-PCD loans (purchased loans without credit deterioration at the time of purchase).

    (2) Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.

    (3) Allowance for credit losses divided by loans and leases held for investment.

    (4) Adjusted allowance for credit losses divided by loans and leases held for investment.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250422912344/en/

    Investor Relations Inquiries:

    Banc of California, Inc.

    (855) 361-2262

    Jared Wolff, (310) 424-1230

    Joe Kauder, (310) 844-5224

    Ann DeVries, (646) 376-7011

    Media Contact:

    Debora Vrana, Banc of California

    (213) 533-3122

    [email protected]

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