NYSE$BANC

Banc Of California · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Banc of California reported a net loss for the third quarter of 2024, but adjusted net earnings showed a profit, driven by balance sheet repositioning and strategic actions.

Banc of California reported a net loss of $1.2 million for Q3 2024, or a loss of $0.01 per diluted common share. However, on an adjusted basis, net earnings were $41.4 million, or $0.25 per diluted common share. The results were impacted by $60 million in pre-tax losses from repositioning a portion of the securities portfolio. The company highlighted strategic balance sheet repositioning actions, including the sale of Civic loans and the reduction of higher-cost funding, which led to net interest margin expansion and an increased tangible book value per share.

  • Closed the sale of $1.95 billion of Civic loans in July, generating net proceeds of $1.91 billion, increasing capital ratios and liquidity.
  • Repositioned $742 million of available-for-sale securities, resulting in a pre-tax loss of $60 million, but expected to increase interest income by approximately $4.8 million per quarter.
  • Net interest margin increased to 2.93%, up 13 basis points from the second quarter, driven by lower funding costs.
  • Total noninterest expense decreased to $196.2 million, down $7.4 million, or 4%, from the second quarter, achieving Q4 2024 cost targets ahead of schedule.

Headline financials

Total Revenue

$431M

Previous: $120M+259.5%
EPS

-$0.01

Previous: $0.30-103.3%
Net interest margin

2.9%

Previous: 3.2%-8.2%
Tier 1 risk-based capital ratio

12.9%

Previous: 12.2%+5.6%
Total risk-based capital ratio

17.0%

Previous: 14.5%+17.3%
Tier 1 leverage ratio

9.8%

Previous: 10.2%-3.2%
Capital Expenditures

-$8.91M

Previous: -$7.88M-13.1%
Free Cash Flow

-$129K

Previous: $34.7M-100.4%
Net Income

$8.78M

Previous: $42.6M-79.4%
Operating Income

$173M

Previous: $46.7M+271.3%
Gross Profit

$422M

Previous: $115M+267.4%
Cash & Equivalents

$2.3B

Previous: $311M+640.3%
Total Assets

$33.4B

Previous: $9.25B+261.5%
Stock-Based Comp

$5.45M

Previous: $1.58M+244.4%

Revenue & EPS history

Banc of California · Revenue · Quarterly

$431M

Q3 2024+259.5%vs Q3 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Banc of California is shifting its focus from internal infrastructure to external growth, capitalizing on its strengthened franchise and balance sheet. The company aims to expand existing relationships and attract new clients, expecting profitable growth as economic conditions improve.

Tailwinds

  • Strategic balance sheet repositioning actions completed.
  • Civic loans sale positively impacted capital and liquidity.
  • Higher cost funding significantly reduced.
  • Net interest margin expansion achieved.
  • Tangible book value per share and capital position increased.

Headwinds

  • Changes in general economic conditions
  • Changes in the interest rate environment
  • Credit risks of lending activities
  • Fluctuations in the demand for loans
  • Quality and composition of our securities portfolio

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 2024

Historical avgQ3 2024

+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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