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Banc of California Inc. (BANC)
NYSE:BANC
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Banc of California
(NYSE:BANC)
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Rating:69Neutral
Price Target:
$22.00
▲(10.11% Upside)
The score is driven primarily by moderate financial performance (solid margins and cash generation but inconsistent growth and modest ROE), supported by favorable technicals (price above key moving averages with positive MACD). Valuation is middle-of-the-road, while the latest earnings call adds a notable positive boost due to EPS and net interest margin improvement plus capital actions, tempered by loan and classified-loan watch items.
Positive Factors
Earnings Growth
The significant growth in earnings per share indicates strong operational performance and effective cost management, enhancing long-term profitability.
Deposit Growth
Growth in noninterest-bearing deposits reduces funding costs and enhances net interest margin, supporting sustainable earnings growth.
Net Interest Margin Expansion
Expansion of net interest margin reflects improved pricing power and cost efficiency, bolstering long-term revenue generation.
Negative Factors
Loan Decline
A decrease in total loans can limit future interest income growth, potentially impacting long-term revenue stability.
Classified Loan Increase
An increase in classified loans may signal rising credit risk, which could affect future asset quality and financial stability.
Revenue Growth Inconsistency
Inconsistent revenue growth can hinder strategic planning and investor confidence, impacting long-term business prospects.
Banc of California (BANC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.11B
Dividend Yield2.03%
Average Volume (3M)1.87M
Price to Earnings (P/E)17.1
Beta (1Y)0.95
Revenue Growth20.64%
EPS GrowthN/A
CountryUS
Employees1,903
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.42
Shares Outstanding150,826,370
10 Day Avg. Volume2,217,046
30 Day Avg. Volume1,869,258
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.74
Price to Sales (P/S)1.39
P/FCF Ratio40.48
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit3.75
Enterprise Value/Ebitda10.33
Forecast
1Y Price Target
$23.50Price Target Upside17.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Banc of California Business Overview & Revenue Model
Company DescriptionBanc 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 MoneyBanc 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 Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based momentum: strong loan production and unfunded commitments, meaningful NIB deposit growth, margin expansion, improved efficiency, substantial EPS and tangible book value gains, and clear 2026 guidance for solid NII and PTPP growth. Near-term challenges noted include timing-related muted Q4 NII and yields, temporary funding through broker deposits, some one-off credit items that have largely been resolved, and planned incremental expense and provisioning as the bank scales. On balance, the positive operating trends, capital returns, and forward guidance outweigh the transitory headwinds.Q4-2025 Updates
Positive Updates
Strong Loan Production (Full Year)
Loan production disbursements of $9.6 billion in FY2025, up 31% year-over-year, demonstrating sizable origination momentum across C&I, venture, equipment finance, warehouse, fund finance and lender finance businesses.
Robust Q4 Loan and Pipeline Growth
Q4 loan disbursements of $2.7 billion, up 32% sequentially (15% annualized loan growth for the quarter). Unfunded new commitments rose 90% quarter-over-quarter to $1.7 billion, positioning balance sheet for further growth.
Non-Interest-Bearing Deposit Gains
Added nearly 2,500 new NIB accounts and ~$530 million of new NIB deposit balances; achieved ~10.5% annualized NIB deposit growth for 2025 and generated 11% annualized NIB growth in Q4, helping reduce funding costs and improve liquidity.
Margin Expansion and Lower Deposit Costs
Net interest margin (spot) improved to 3.22% at Dec 31 (Q4 NIM 3.20%), full-year margin expansion of ~30 basis points driven by a 47 basis-point decline in deposit costs; Q4 cost of deposits declined 19 basis points to 1.89% (spot 1.81%).
Improved Profitability and EPS Growth (FY and Q4)
Adjusted EPS for FY2025 was $1.35, up 69% year-over-year. Q4 net income available to shareholders was $67.4 million (EPS $0.42), up 11% sequentially from $0.38, reflecting positive operating leverage.
Efficiency and Expense Improvement
Expenses declined 7% year-over-year (FY), non-interest expense in Q4 was $180.6 million (down 3% QoQ), and adjusted efficiency ratio improved materially (full-year adjusted efficiency dropped nearly 900 basis points; Q4 adjusted efficiency 55.6%, down 266 bps QoQ).
Strong Credit Metrics and Provisioning Discipline
Nonperforming and special mention loan balances each decreased 9% QoQ. Allowance for credit losses was 1.12% of total loans and economic coverage 1.62%; net charge-offs remained very minimal in Q4.
Capital Return and Tangible Book Value Growth
Repurchased 13.6 million shares (8% of common) at a weighted-average price of $13.59; tangible book value per share grew 11% in FY2025 with substantial Q4 contribution, signaling strong capital generation.
Positive Forward Guidance for 2026
Management expects 2026 full-year net interest income to increase 10–12%, projects pretax pre-provision income growth of 20–25% for 2026, and forecasts mid-single-digit loan and deposit growth for the year while targeting expense growth of 3–3.5%.
Portfolio Repricing and Repricing Upside
Weighted average coupon of $2.5 billion of loans maturing/resetting over next year is 4.7% vs Q4 average new production rate of 6.83%; multifamily portfolio (~25% of loans, ~$3.2B) has sizable repricing/maturity over next 2.5 years offering additional margin upside.
Product Diversification and SFR Program
Single-family residential (SFR) purchases were slightly north of $250 million in Q4 (net SFR increase ~$216 million). SFR portfolio (mostly 30-year fixed, owner-occupied) is performing well, providing diversification vs floating-rate exposure.
Negative Updates
Timing Impact on Q4 NII and Yields
Late-quarter loan growth had minimal impact on Q4 net interest income and yields; average loan yield declined to 5.83% in Q4 from 6.05% in Q3 and spot loan yield of 5.75% (impacted by Fed cuts and higher floating-rate mix), muting near-term NII.
Floating-Rate Loan and Rate-Sensitivity Risks
Floating-rate loans increased to 39% of total loans, making loan yields more sensitive to Fed moves; while ALM is portrayed as NII-neutral, balance sheet remains liability-sensitive overall due to rate-sensitive ECR costs on HOA deposits.
Credit Noise and One-Off Delinquencies/Classifications
Delinquency rose during the quarter due to two loans totaling $36 million (became current in January); classified loans temporarily increased driven by a nearly $50 million CRE loan with delayed closing (loan subsequently paid off).
Provisioning and Expense Headwinds
Provision expense was $12.5 million in Q4 driven by loan growth and risk-rating updates. Management also expects expenses to rise 3–3.5% in 2026 as investments in talent and technology continue, adding near-term cost pressure.
NII Muted in Q4
Net interest income in Q4 was down modestly quarter-over-quarter; lower loan income was driven by timing of loan growth, rate cuts on floating-rate loans, and lower accretion versus elevated Q3 accretion.
Use of Short-Term Broker Deposits
Management temporarily increased short-term broker deposits during Q4 to fund late-quarter loan originations, indicating short-term funding pressure during peak origination activity.
Non-Interest Income Volatility
Non-interest income is described as lumpy—Q4 non-interest income rose 21% sequentially to $41.6 million driven by a lease residual gain and market-sensitive items, but the variability creates earnings unpredictability.
Preferred Stock Drag Until Maturity
Outstanding preferred stock represents a material earnings drag (management cited ~$0.15–$0.20 EPS benefit when it is retired); this preferred funding cost remains a headwind until maturity (planned in 2027).
Company Guidance
Management guided 2026 to a 10–12% increase in net interest income (including baseline accretion) and forecast pretax, pre‑provision income to grow 20–25%, with loans expected to rise in the mid‑single digits and deposits also in the mid‑single digits; they expect NIM expansion (spot NIM 3.22% at 12/31 vs 3.18% 9/30, with typical quarterly NIM gains of ~3–4 bps), noted the full‑quarter benefit of Q4 loan originations would add about $13M of loan interest income before funding costs, and highlighted that Q4 new production averaged 6.83% while spot loan yield was 5.75% and 39% of loans are floating; expense growth is guided to +3–3.5% from 2025, non‑interest income run‑rate is ~$11–12M/month, allowance for credit losses is 1.12% of loans (economic coverage 1.62%), Q4 provision was $12.5M, and management assumes no additional Fed cuts in the baseline (noting each 25 bp cut would reduce ECR pretax expense by ~ $6M and they expect ~50% deposit beta, having recently achieved ~60%).Banc of California Financial Statement Overview
Summary
Moderate overall fundamentals: healthy profitability margins and solid free cash flow generation, but revenue growth has been inconsistent and the company had significant losses in 2023. Leverage is moderate (debt-to-equity 0.85) and ROE is relatively low (5.99%), limiting the score despite improving operating performance.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.65
Positive
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.60
Neutral
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.70
Positive
| 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
Neutral
19.98
Price Trends
19.46
Positive
18.12
Positive
16.22
Positive
Market Momentum
0.20
Positive
49.73
Neutral
21.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANC, the sentiment is Neutral. The current price of 19.98 is below the 20-day moving average (MA) of 20.26, above the 50-day MA of 19.46, and above the 200-day MA of 16.22, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BANC.
Banc of California Risk Analysis
Banc of California disclosed 49 risk factors in its most recent earnings report. Banc of California reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banc of California Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.00B | 10.80 | 9.82% | 3.79% | 5.15% | 16.42% | |
76 Outperform | $2.89B | 9.93 | 10.72% | 4.69% | 38.34% | 89.73% | |
71 Outperform | $2.98B | 16.15 | 11.70% | 3.99% | 3.40% | 23.04% | |
69 Neutral | $3.11B | 17.08 | 6.50% | 2.03% | 20.64% | ― | |
68 Neutral | $2.62B | 14.67 | 13.69% | 2.96% | 6.29% | 28.28% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $3.27B | 21.16 | 6.33% | 2.25% | 6.83% | 23.44% |
* Financial Sector Average
BANC
Banc of California
19.98
4.63
30.19%
BOH
Bank Of Hawaii
74.78
4.49
6.39%
FFBC
First Financial Bancorp
28.74
2.37
9.00%
PRK
Park National
162.94
1.85
1.15%
PFS
Provident Financial Services
22.14
4.83
27.90%
SBCF
Seacoast Banking Of Florida
33.44
6.36
23.48%
Banc of California Corporate Events
Business Operations and StrategyFinancial Disclosures
Banc of California Reports Strong Q4 2025 Earnings Growth
Positive
Jan 21, 2026
On January 21, 2026, Banc of California reported that for the fourth quarter of 2025 it generated net earnings available to common and equivalent stockholders of $67.4 million, or $0.42 per diluted share, up from $0.38 in the third quarter, while full-year 2025 diluted earnings per share rose to $1.17 from $0.52 in 2024, or $1.35 on an adjusted basis. The bank posted 15% annualized loan growth for the quarter and 6% year-over-year, with $2.7 billion in fourth-quarter loan production and $9.6 billion for the year, alongside 11% annualized growth in noninterest-bearing deposits, an expanded net interest margin of 3.20% for the quarter and 3.15% for the year, and a 10% sequential increase in pre-tax pre-provision income to $112.3 million as noninterest expenses declined and the efficiency ratio improved. Credit quality showed notable improvement, with year-over-year reductions in nonperforming, criticized and special mention loans as a share of total loans, while capital ratios remained well above “well capitalized” regulatory thresholds and book value and tangible book value per share rose to $19.56 and $17.51, respectively. Management framed 2025 as a year of strong execution marked by scaling the franchise, strengthening the balance sheet, and enhancing core profitability, with CEO Jared Wolff highlighting disciplined expense control, double-digit returns on average tangible common equity, and late-quarter loan growth that is expected to support continued earnings momentum into 2026.
The most recent analyst rating on (BANC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Banc of California stock, see the BANC Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Banc of California Reports Strong Q3 2025 Earnings
Positive
Oct 22, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.