Banc of California (BANC) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 2.34%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.01
• Revenue Growth: 20.64%
• EPS Growth: N/A
• Country: US
• Employees: 1,903
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.38
• Shares Outstanding: 150,826,370
• 10 Day Avg. Volume: 2,502,837
• 30 Day Avg. Volume: 3,193,516
• PEG Ratio: -0.20
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 40.48
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 15.93
• 1Y Price Target: $20.69
• Price Target Upside: 12.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $19.50 ▲(5.81% Upside)

Banc of California's overall stock score is driven by strong earnings growth and positive sentiment from the latest earnings call. The technical indicators support a bullish trend, while the valuation remains fair. Financial performance shows moderate health with areas for improvement in revenue consistency and leverage.

Positive Factors

Earnings Growth

Strong EPS growth indicates robust operational performance and effective cost management, enhancing long-term profitability and shareholder value.

Net Interest Margin Expansion

Expanding net interest margins suggest improved profitability from core banking operations, supporting sustainable earnings growth.

Improved Deposit Trends

Growth in noninterest-bearing deposits reduces funding costs, enhancing net interest income and supporting financial stability.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth can hinder long-term planning and investment, impacting the company's ability to sustain competitive advantages.

Rising Classified Loan Balances

An increase in classified loans may indicate potential credit risk, affecting asset quality and requiring more stringent risk management.

Moderate Leverage

Moderate leverage can limit financial flexibility and increase risk during economic downturns, impacting long-term financial health.

Banc of California Business Overview & Revenue Model

Company Description

Banc of California (BANC) is a financial services company based in the United States, primarily engaged in commercial banking. The bank offers a wide range of financial products and services, including commercial real estate loans, construction loans, residential mortgages, and various deposit account services. It serves a diverse clientele, including small to medium-sized businesses and individual consumers, predominantly in California and neighboring states. Banc of California focuses on providing tailored financial solutions to meet the unique needs of its customers, alongside a commitment to community engagement and economic development.

How the Company Makes Money

Banc of California generates revenue primarily through interest income from loans and fees associated with its banking services. The bank's key revenue streams include net interest income from its portfolio of commercial and residential loans, as well as service fees from deposit accounts and transaction services. Additionally, Banc of California may earn income through investment securities and other financial products offered to customers. Strategic partnerships with local businesses and involvement in community development projects also enhance its earnings potential by fostering stronger client relationships and increasing its loan origination capabilities.

Banc of California Financial Statement Overview

Summary

Banc of California demonstrates moderate financial health with stable profitability margins and a balanced asset structure. While cash flow generation is strong, past inconsistencies in revenue growth and profitability, along with moderate leverage, suggest areas for improvement.

Income Statement

Banc of California shows a moderate revenue growth rate of 2.16% in the TTM, with a gross profit margin of 56.46% and a net profit margin of 11.58%. The EBIT and EBITDA margins are healthy at 15.73% and 20.50%, respectively. However, the revenue growth has been inconsistent over the years, and the company experienced significant losses in 2023, impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 0.85, indicating a moderate level of leverage. Return on equity is relatively low at 5.99%, suggesting limited profitability from shareholders' equity. The equity ratio is stable, reflecting a balanced asset structure. However, the fluctuating debt levels and past negative ROE pose potential risks.

Cash Flow

Free cash flow growth is strong at 11.33% in the TTM, and the free cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting income to cash.

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	1.02B	943.09M	226.38M	1.32B	1.44B	214.44M
EBITDA	369.20M	290.06M	-2.12B	664.97M	917.67M	32.18M
Net Income	208.50M	126.89M	-1.90B	423.61M	606.96M	12.57M
Balance Sheet
Total Assets	34.01B	33.54B	38.53B	41.23B	9.43B	7.88B
Cash, Cash Equivalents and Short-Term Investments	4.82B	4.75B	7.72B	7.08B	1.54B	1.45B
Total Debt	2.96B	2.33B	3.85B	2.63B	816.12M	816.76M
Total Liabilities	30.55B	30.04B	35.14B	37.28B	8.36B	6.98B
Stockholders Equity	3.47B	3.50B	3.39B	3.95B	1.07B	897.21M
Cash Flow
Free Cash Flow	226.20M	64.33M	120.55M	581.11M	454.91M	69.77M
Operating Cash Flow	233.31M	77.37M	135.77M	701.97M	502.96M	74.86M
Investing Cash Flow	-858.76M	1.89B	12.61B	-3.57B	-5.71B	-266.92M
Financing Cash Flow	469.48M	-4.84B	-9.61B	1.05B	6.11B	39.40M

Banc of California Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 18.43 is above the 20-day moving average (MA) of 17.22, above the 50-day MA of 17.01, and above the 200-day MA of 15.01, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.72 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
PFS	74 Outperform	$2.51B	9.80	9.51%	4.99%	38.34%	89.73%
BANC	73 Outperform	$2.86B	17.93	5.99%	2.34%	20.64%	―
FFBC	72 Outperform	$2.47B	9.29	10.16%	4.12%	5.15%	16.42%
BOH	71 Outperform	$2.64B	16.25	10.65%	4.22%	3.40%	23.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBCF	62 Neutral	$2.66B	17.94	6.33%	2.29%	6.83%	23.44%
PRK	61 Neutral	$2.49B	14.27	13.69%	3.03%	6.29%	28.28%

Banc of California Corporate Events

Banc of California’s Earnings Call Highlights Growth and Optimism

Banc of California’s recent earnings call exuded a positive sentiment, driven by notable growth in earnings per share, successful share repurchase activities, and improved deposit trends. Despite some concerns regarding a decline in total loans and an increase in classified loan balances, the overall financial health and performance improvements of the company contributed to an optimistic outlook.

Banc of California Reports Strong Q3 2025 Earnings

Banc of California reported a significant increase in net earnings for the third quarter of 2025, with diluted earnings per share rising to $0.38 from $0.12 in the previous quarter. The company achieved a 5% growth in total revenue and a 17% increase in pre-tax pre-provision income, driven by strong net interest income and expense discipline. The bank also saw a 9% annualized growth in noninterest-bearing deposits and maintained stable credit quality metrics. The results reflect the company’s strategic focus on enhancing profitability and strengthening its balance sheet, positioning it well for continued growth.

The most recent analyst rating on (BANC) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Banc of California stock, see the BANC Stock Forecast page.