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

by · The Markets Daily

Banc of California (NYSE:BANC – Get Free Report) issued its earnings results on Tuesday. The bank reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.01, Zacks reports. Banc of California had a negative net margin of 1.44% and a positive return on equity of 7.98%. The business had revenue of $303.07 million during the quarter, compared to analysts’ expectations of $306.27 million. During the same quarter in the prior year, the business posted $0.38 EPS. The company’s revenue for the quarter was up 5.6% on a year-over-year basis.

Banc of California Price Performance

Shares of BANC stock traded up $0.27 during trading hours on Tuesday, hitting $18.26. The company’s stock had a trading volume of 3,191,329 shares, compared to its average volume of 2,833,578. The business has a fifty day moving average of $18.08 and a 200-day moving average of $18.99. The stock has a market cap of $2.89 billion, a price-to-earnings ratio of -43.48 and a beta of 0.77. Banc of California has a twelve month low of $16.12 and a twelve month high of $21.93. The company has a current ratio of 0.89, a quick ratio of 0.86 and a debt-to-equity ratio of 0.20.

Banc of California Announces Dividend

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

Key Stories Impacting Banc of California

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

  • Positive Sentiment: Q3 earnings exceeded expectations: Banc of California reported diluted earnings per share of $0.46, up 21% from $0.38 a year earlier and ahead of the $0.45 Zacks consensus estimate. Some market data feeds reported adjusted EPS of $0.55, also above expectations. Banc of California Tops Q3 Earnings Estimates
  • Positive Sentiment: Profitability and operating performance improved: Net earnings available to common stockholders rose to $73.1 million from $59.7 million, while total revenue increased 6% year over year to approximately $303.8 million. Pre-tax, pre-provision income climbed 16% to $118.4 million. Banc of California Reports Third-Quarter Results
  • Positive Sentiment: Loans, deposits and capital strengthened: Loans held for investment increased by $379.7 million to $24.6 billion, deposits rose to $28.3 billion, and the CET1 capital ratio improved to 9.70%. These trends support loan growth and financial stability. Banc of California Advances Earnings
  • Neutral Sentiment: Private-banking expansion: The company launched a private-banking arm aimed at attracting wealthy Los Angeles-area clients. The initiative could create longer-term fee and deposit opportunities, but near-term financial benefits remain uncertain. Banc of California Launches Private Banking Arm
  • Negative Sentiment: Revenue narrowly missed some estimates: Reported revenue of roughly $303 million was below the approximately $306 million consensus cited by MarketBeat, limiting the upside from the earnings beat. Banc of California Posts Q3 Sales

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. boosted their price target on shares of Banc of California from $22.00 to $24.00 and gave the company an “overweight” rating in a research report on Wednesday, July 1st. Piper Sandler dropped their price objective on Banc of California from $23.00 to $22.00 and set an “overweight” rating on the stock in a report on Thursday, October 1st. UBS Group began coverage on Banc of California in a research report on Monday, September 14th. They set a “neutral” rating and a $20.00 target price on the stock. Citigroup reduced their target price on Banc of California from $23.50 to $22.00 and set a “buy” rating for the company in a report on Friday, July 31st. Finally, Wells Fargo & Company decreased their target price on Banc of California from $23.00 to $22.00 and set an “overweight” rating for the company in a research report on Wednesday, September 30th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $22.50.

Get Our Latest Stock Analysis on Banc of California

Insider Buying and Selling

In other Banc of California news, General Counsel Ido Dotan sold 10,541 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $18.30, for a total transaction of $192,900.30. Following the sale, the general counsel owned 45,702 shares in the company, valued at approximately $836,346.60. This represents a 18.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Olivia I. Lindsay sold 6,000 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $19.50, for a total value of $117,000.00. Following the transaction, the insider directly owned 32,842 shares of the company’s stock, valued at $640,419. The trade was a 15.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 2.78% of the company’s stock.

Banc of California Company Profile

(Get Free Report)

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

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

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