NYSE$BANC

Banc Of California · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Banc of California's financial performance was reported for Q4 2021, including net income and key metrics.

Banc of California reported a net income of $5.8 million for the fourth quarter of 2021, with earnings per diluted common share at $0.07. The quarter's results were impacted by merger costs and provision for credit losses related to the Pacific Mercantile Bancorp acquisition. The bank completed the acquisition and system conversion during the quarter, which contributed to an increase in total assets and deposits.

  • Completed the acquisition of Pacific Mercantile Bancorp on October 18, 2021, adding $1.54 billion in total assets.
  • Return on average assets was 0.24%.
  • Net interest margin was 3.28%, consistent with the prior quarter.
  • Noninterest-bearing deposit balances represented 37% of total deposits as of December 31, 2021.

Headline financials

Total Revenue

$73M

Previous: $61.6M+18.6%
EPS (adj)

$0.23

Previous: $0.35-34.3%
Net interest margin

3.3%

Previous: 3.4%-3.0%
Common equity tier 1 capital ratio

11.4%

Previous: 11.2%+1.7%
Return on average assets

0.2%

Previous: 1.1%-78.4%
Capital Expenditures

$554K

No prior period
Free Cash Flow

$29.5M

No prior period
Net Income

$5.75M

Previous: $21.7M-73.5%
Operating Income

$8.51M

Previous: $28.6M-70.2%
Gross Profit

$77.9M

No prior period
Cash & Equivalents

$228M

Previous: $221M+3.2%
Total Assets

$9.39B

Previous: $7.88B+19.3%
Stock-Based Comp

$1.31M

No prior period

Revenue & EPS history

Banc of California · Revenue · Quarterly

$73M

Q4 2021+18.6%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Banc of California anticipates continued growth in revenue, earnings per share, and franchise value, driven by business development, the Pacific Mercantile acquisition, and asset sensitivity.

Tailwinds

  • Good loan demand and high quality lending opportunities are expected to persist.
  • The deposit gathering engine is expected to continue funding loans with low-cost core deposits.
  • Continued momentum in business development is anticipated.
  • The Pacific Mercantile acquisition is expected to have a positive impact.
  • An increasing level of asset sensitivity is expected to contribute to growth.

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 2021

Historical avgQ4 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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