NYSE$BANC

Banc Of California · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported net income of $21.7 million and diluted earnings per common share of $0.35.

Banc of California reported a strong fourth quarter in 2020, with significant growth in pre-tax pre-provision income, net income, and earnings per share, driven by lowering deposit costs, controlling noninterest expense, and increasing quality earning assets, resulting in a return on average assets of over 1.0%.

  • Return on average assets was 1.11%.
  • Net interest margin increased to 3.38%, a 29 basis points increase from the prior quarter.
  • Average cost of total deposits decreased to 0.36%, a 15 basis points decrease from the prior quarter.
  • Non-performing loans decreased 45% to $36.6 million, representing 0.62% of total loans.

Headline financials

Total Revenue

$61.6M

Previous: $56.7M+8.7%
EPS (adj)

$0.35

Previous: $0.20+75.0%
Net interest margin

3.4%

Previous: 3.1%+9.4%
Common equity tier 1 capital ratio

11.2%

No prior period
Return on average assets

1.1%

No prior period
Net Income

$21.7M

Previous: $14.3M+52.1%
Operating Income

$28.6M

No prior period
Cash & Equivalents

$221M

Previous: $373M-40.9%
Total Assets

$7.88B

Previous: $7.83B+0.6%

Revenue & EPS history

Banc of California · Revenue · Quarterly

$61.6M

Q4 2020+8.7%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

While the operating environment remains uncertain as Banc of California begins 2021, the company is confident in its ability to continue executing well on strategies that drive earnings growth and franchise value, expecting to generate balance sheet growth while protecting net interest margin and managing expenses to improve operating leverage.

Tailwinds

  • Ability to continue to execute well on the strategies that are driving earnings growth and franchise value.
  • Generate balance sheet growth.
  • Protect net interest margin.
  • Manage expenses.
  • Improve operating leverage over the course of 2021.

Headwinds

  • Operating environment remains uncertain as we begin 2021.
  • The foreseeable future continues to be uncertain with respect to the rollout of the approved vaccines for COVID-19.
  • Lack of clarity regarding the impact of the most recent government stimulus.
  • The continued unknown impact of the COVID-19 pandemic on the economy and certain industry segments.
  • The unknown benefit from Federal Reserve and other government actions.

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 Q4 2020

Historical avgQ4 2020

+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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