NYSE$BANC

Banc Of California · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported net income of $23.2 million and diluted earnings per common share of $0.42 for the third quarter of 2021.

Banc of California reported a strong third quarter in 2021, with net income reaching $23.2 million and diluted earnings per share at $0.42. The company saw annualized loan growth of 16% excluding PPP loans, and a decrease in the cost of deposits, showcasing improved profitability and operating leverage.

  • Return on average assets of 1.13%.
  • Annualized loan growth, excluding PPP, of 16%.
  • Period-end total cost of deposits decreased to 0.08%.
  • Noninterest-bearing deposit balances represented 32% of total deposits.

Headline financials

Total Revenue

$68.5M

Previous: $59.8M+14.5%
EPS (adj)

$0.38

Previous: $0.24+58.3%
Net interest margin

3.3%

Previous: 3.1%+6.1%
Common equity tier 1 capital ratio

10.9%

Previous: 11.6%-6.4%
Efficiency ratio

55.2%

No prior period
Capital Expenditures

-$2.26M

Previous: -$4.55M+50.4%
Free Cash Flow

$20.9M

Previous: $11.4M+84.0%
Net Income

$23.2M

Previous: $15.9M+45.6%
Operating Income

$48.5M

Previous: $22.9M+111.6%
Gross Profit

$67.3M

Previous: $58.7M+14.8%
Cash & Equivalents

$186M

Previous: $292M-36.5%
Total Assets

$8.28B

Previous: $7.74B+7.0%

Revenue & EPS history

Banc of California · Revenue · Quarterly

$68.5M

Q3 2021+14.5%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Banc of California anticipates continued positive trends and improved profitability, driven by strong loan and deposit pipelines. The upcoming system conversion for Pacific Mercantile is expected to further enhance earnings, with most cost savings in place by the end of the year, positioning the company for higher earnings and returns in 2022.

Tailwinds

  • Strong loan and deposit pipelines expected to continue.
  • Pacific Mercantile system conversion planned for November.
  • Most cost savings from Pacific Mercantile acquisition expected by year-end.
  • Accretive benefits of Pacific Mercantile transaction to be fully realized starting in 2022.
  • Well-positioned to continue delivering a higher level of earnings and returns.

Headwinds

  • No specific negative forward guidance was provided in the earnings report.
  • No specific negative forward guidance was provided in the earnings report.
  • No specific negative forward guidance was provided in the earnings report.
  • No specific negative forward guidance was provided in the earnings report.
  • No specific negative forward guidance was provided in the earnings report.

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 Q3 2021

Historical avgQ3 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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