NYSE$BANC

Banc Of California · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported net income of $19.1 million and diluted earnings per common share of $0.34.

Banc of California reported a strong second quarter with net income of $19.1 million and diluted earnings per common share of $0.34. Total loan production reached $904.1 million, and the net interest margin expanded to 3.27%.

  • Return on average assets of 0.98%.
  • Total loan production of $904.1 million.
  • Period-end total cost of deposits of 0.20%.
  • Net interest margin expanded to 3.27%.

Headline financials

Total Revenue

$64M

Previous: $60.8M+5.2%
EPS (adj)

$0.32

Previous: -$0.44+172.7%
Net interest margin

3.3%

No prior period
ACL to loans and leases held for investment

1.3%

No prior period
Total risk-based capital ratio

15.3%

No prior period
Tier 1 leverage ratio

9.9%

No prior period
Capital Expenditures

-$1.72M

Previous: -$3.47M+50.4%
Free Cash Flow

$17.3M

Previous: -$21.9M+179.1%
Net Income

$19.1M

Previous: -$18.4M+203.3%
Operating Income

$39.6M

Previous: $10.2M+286.9%
Gross Profit

$61.9M

Previous: $49M+26.2%
Cash & Equivalents

$163M

Previous: $421M-61.2%
Total Assets

$8.03B

Previous: $7.77B+3.3%

Revenue & EPS history

Banc of California · Revenue · Quarterly

$64M

Q2 2021+5.2%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Banc of California anticipates continued organic balance sheet growth and greater profitability in the second half of the year, with significant earnings accretion expected from the Pacific Mercantile Bancorp acquisition, anticipated to close during the third quarter. Cost savings of at least 40% are expected, substantially realized by year-end.

Tailwinds

  • Continued organic balance sheet growth expected.
  • Greater profitability anticipated in the second half of the year.
  • Significant earnings accretion expected from the Pacific Mercantile Bancorp acquisition.
  • Anticipate closing the Pacific Mercantile Bancorp acquisition during the third quarter.
  • Visibility on cost savings of at least 40%.

Headwinds

  • Potential setbacks to the economic recovery could impact performance.
  • Uncertainty regarding the impact of inflation.
  • COVID-19 variants pose a risk to the economic recovery.
  • Ultimate pace of the recovery is uncertain.
  • Integration of Pacific Mercantile Bancorp may present unforeseen challenges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.2%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+21.2%

Q3 2016

Best reaction

-11.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%+2.7%+2.3%
Q4 2025-1.7%-4.5%-4.9%
Q3 2025-2.0%+1.6%+5.2%
Q2 2025-1.5%-0.4%+5.4%
Q1 2025-1.9%-1.5%+0.1%
Q4 2024-2.3%-0.1%-6.7%
Q3 2024+3.3%+2.8%+10.5%
Q2 2024-11.8%-1.9%-5.1%
Q1 2024-0.8%+0.8%-3.0%
Q4 2023+10.5%+11.3%+9.6%
Q3 2023-4.8%-4.0%+10.4%
Q2 2023+11.9%+10.0%-7.1%
Q1 2023-1.5%-7.1%-11.3%
Q4 2022-0.2%-2.6%+6.3%
Q3 2022-8.2%-5.4%-2.9%
Q2 2022-5.9%-3.6%-1.4%
Q1 2022-2.1%-2.5%-6.7%
Q4 2021-6.0%-7.2%-7.3%
Q3 2021+5.0%+9.3%+11.9%
Q2 2021+5.2%+5.5%+7.5%
Q1 2021-1.7%-1.5%-0.1%
Q4 2020-0.3%-1.1%+6.4%
Q3 2020+7.2%+2.3%+15.6%
Q2 2020+7.7%+7.7%+9.9%
Q1 2020-3.3%-9.7%+1.6%
Q4 2019-3.9%-3.2%-2.1%
Q3 2019-7.6%-7.3%-0.2%
Q2 2019+4.2%+6.7%-3.8%
Q1 2019-1.1%-0.8%-9.0%
Q4 2018-1.0%+0.0%+8.9%
Q3 2018-4.1%-0.1%+7.5%
Q2 2018+7.0%+7.0%+6.4%
Q1 2018+3.8%+1.4%+6.5%
Q4 2017-4.8%-9.2%-5.5%
Q3 2017+5.9%+2.7%+2.2%
Q2 2017-2.9%+0.2%-8.3%
Q1 2017-6.5%-2.1%-0.9%
Q4 2016+6.8%+10.5%+38.9%
Q3 2016+21.2%+15.7%+31.4%
Q2 2016+4.9%+11.7%+10.4%
Q1 2016+3.0%
Q4 2015+9.3%
Q3 2015+1.5%
Q2 2015-4.3%
Q1 2015-1.8%
Q4 2014+3.5%
Q3 2014+0.6%
Q2 2014+8.3%
Q1 2014+2.4%
Q4 2013-2.5%
Q3 2013-6.3%
Q2 2013-2.0%
Q1 2013+7.4%
Q4 2012+1.7%
Q3 2012-0.3%
Q2 2012+0.3%
Q1 2012+0.7%
Q1 2011+0.7%
Q4 2011+0.6%
Q4 2009+0.6%
Q3 2010-2.3%
Q3 2011-2.3%
Q2 2010-9.1%
Q2 2011-9.1%
Q4 2010-9.1%
Q1 2010+5.1%

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