Banc of California (BANC) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 2.84%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.28
• Revenue Growth: 121.00%
• EPS Growth: N/A
• Country: US
• Employees: 1,903
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.26
• Shares Outstanding: 147,140,410
• 10 Day Avg. Volume: 2,437,107
• 30 Day Avg. Volume: 1,850,530
• PEG Ratio: 0.57
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.67
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: -0.69
• 1Y Price Target: $17.63
• Price Target Upside: 25.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $15.00 ▲(6.76%Upside)

Banc of California's stock score reflects a combination of recovering financial performance and strategic corporate moves enhancing governance and liquidity. Despite economic uncertainties and moderate technical momentum, the company's valuation and dividend yield provide a balanced investment case.

Positive Factors

Growth Potential

Banc of California has an opportunity to grow its franchise significantly with its presence in Los Angeles County, which has $500B of deposits, presenting a substantial market potential.

Market Position

The PPBI deal showcases Banc of California's value in the Southern California market and increases its scarcity value.

Valuation

Shares are trading at 84% of tangible book value, indicating potential value for investors.

Negative Factors

Credit Concerns

Credit concerns were noted due to negative risk migration and an increase in classified loans by 35%.

Earnings Performance

Earnings per share of $0.22 missed expectations, reflecting weaker performance in revenue and expenses.

Profitability Outlook

The 4Q25 return on average tangible common equity estimate is below the company's target, reflecting below peer profitability.

Banc of California Business Overview & Revenue Model

Company Description

Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. The company offers deposit products, including checking, savings, money market, retirement, and interest-bearing and noninterest-bearing demand accounts, as well as certificate of deposits. It also provides various commercial and consumer loan products, such as commercial and industrial loans; commercial real estate and multifamily loans; construction loans; single family residential mortgage loans; warehouse and indirect/direct leveraged lending; home equity lines of credit; small business administration loans; and other consumer loans. In addition, the company offers automated bill payment, cash and treasury management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and internet banking services; and master demand accounts, interest rate swaps, and safe deposit boxes. Further, it invests in collateralized loan obligations, agency securities, municipal bonds, agency residential mortgage-backed securities, and corporate debt securities. As of December 31, 2020, the company operated 29 full-service branches in Southern California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California.

How the Company Makes Money

Banc of California generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from fees and service charges. The bank offers various types of loans, including commercial real estate loans, commercial and industrial loans, residential mortgage loans, and consumer loans, which are significant contributors to its interest income. Additionally, the bank earns money from fees associated with deposit accounts, transaction processing, and other financial services. Banc of California's earnings are further supported by strategic partnerships and a focus on community banking initiatives, which help to expand its customer base and foster long-term client relationships.

Banc of California Financial Statement Overview

Summary

Banc of California's financials show a recovery trajectory with improved profitability margins and cash flow generation. Despite recent revenue decline, operational efficiency has rebounded, and the balance sheet remains solid with controlled leverage.

Income Statement

Banc of California shows a mixed performance on its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 52.6%, indicating a strong ability to cover costs, although it has decreased compared to previous years. The net profit margin has improved to 8.3% after a challenging period in 2023, reflecting better operational efficiency. Revenue growth rate between 2024 and the TTM period is negative at -3.7%, indicating a recent decline in revenue. EBIT and EBITDA margins are positive, showcasing operational profitability recovery, yet they remain below historical highs.

Balance Sheet

The balance sheet of Banc of California presents a stable financial position with a debt-to-equity ratio of 0.74, which indicates a moderate level of leverage. The return on equity (ROE) for the TTM period is 4.2%, demonstrating modest equity returns compared to historical highs. The equity ratio is 10.4%, suggesting a conservative capital structure. While equity has grown, total assets have slightly decreased, reflecting strategic asset management.

Cash Flow

The cash flow statement shows a solid free cash flow growth rate of 166.5% in the TTM period, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio is 1.21, indicating that cash generation aligns closely with net income. The free cash flow to net income ratio is 1.15, showing adequate cash conversion. Despite recent improvements, historical fluctuations in cash flow stability warrant cautious optimism.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.87B	1.50B	1.61B	1.34B	309.48M
Gross Profit	948.45M	943.09M	226.38M	1.32B	1.44B	214.44M
EBITDA	316.32M	290.06M	-2.12B	664.97M	917.67M	32.18M
Net Income	149.60M	126.89M	-1.90B	423.61M	606.96M	12.57M
Balance Sheet
Total Assets	33.78B	33.54B	38.53B	41.23B	9.43B	7.91B
Cash, Cash Equivalents and Short-Term Investments	2.34B	4.75B	7.72B	7.08B	1.54B	1.45B
Total Debt	2.62B	2.33B	3.85B	2.63B	816.12M	816.76M
Total Liabilities	30.26B	30.04B	35.14B	37.28B	8.36B	6.98B
Stockholders Equity	3.52B	3.50B	3.39B	3.95B	1.07B	897.21M
Cash Flow
Free Cash Flow	171.38M	64.33M	120.55M	581.11M	454.91M	69.77M
Operating Cash Flow	180.89M	77.37M	135.77M	701.97M	502.96M	74.86M
Investing Cash Flow	1.40B	1.89B	12.61B	-3.57B	-5.71B	-266.92M
Financing Cash Flow	-2.32B	-4.84B	-9.61B	1.05B	6.11B	39.40M

Banc of California Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANC, the sentiment is Positive. The current price of 14.05 is above the 20-day moving average (MA) of 13.80, above the 50-day MA of 13.74, and below the 200-day MA of 14.63, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BANC.

Banc of California Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFBC	76 Outperform	$2.33B	10.13	9.58%	3.94%	8.05%	-3.31%
PFS	73 Outperform	$2.31B	15.97	6.77%	5.42%	80.24%	-30.60%
BKU	71 Outperform	$2.68B	11.09	8.63%	3.48%	-0.61%	39.49%
FRME	71 Outperform	$2.25B	10.88	9.16%	3.72%	1.42%	2.67%
WAFD	71 Outperform	$2.35B	11.11	7.70%	3.68%	24.53%	0.16%
BANC	66 Neutral	$2.21B	21.63	4.33%	2.84%	121.00%	―
Sector *	62 Neutral	AU$9.98B	8.01	10.79%	5.19%	32.02%	38.31%

Banc of California Corporate Events

Banc of California Appoints New Board Leadership

On May 7, 2025, Banc of California‘s Board of Directors unanimously elected CEO Jared M. Wolff as the chair of the Board, and John M. Eggemeyer as vice chair and lead independent director. This leadership change signifies a strategic move to strengthen the company’s governance and potentially enhance its market position.

Banc of California Boosts Stock Buyback Program

Banc of California reported its first quarter 2025 financial results, highlighting a diluted earnings per share of $0.26 and a 6% annualized loan growth. The company also announced an increase in its stock buyback program to $300 million, reflecting its strong liquidity and capital position. The bank’s net interest margin improved, and it maintained high liquidity levels, with a significant increase in book value per share. Despite economic uncertainties, Banc of California continues to leverage its market strength to support loan and deposit growth while managing expenses effectively.