Banc of California (BANC) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 2.34%
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.20
• Revenue Growth: 20.61%
• EPS Growth: N/A
• Country: US
• Employees: 1,903
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.38
• Shares Outstanding: 147,301,060
• 10 Day Avg. Volume: 3,354,643
• 30 Day Avg. Volume: 4,173,918
• 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: 2.23
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 18.79
• 1Y Price Target: $20.69
• Price Target Upside: 20.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $18.00 ▲(5.26% Upside)

Banc of California's overall stock score is driven by a positive earnings call sentiment and stable financial performance. The valuation is fair, and technical indicators suggest a neutral trend. The company's strong earnings growth and strategic share repurchase program are significant positives, while challenges in revenue growth and cash conversion are areas to watch.

Positive Factors

Earnings Growth

The significant growth in earnings per share indicates strong operational performance and effective cost management, which are crucial for long-term profitability and shareholder value.

Net Interest Margin Expansion

Expansion in net interest margin reflects the company's ability to optimize its interest income relative to interest expenses, enhancing profitability and financial stability over time.

Improved Deposit Trends

Growth in core deposits reduces reliance on brokered deposits, lowering funding costs and improving the bank's liquidity position, which is beneficial for long-term growth and stability.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in maintaining market share or pricing power, potentially impacting future growth and profitability if not addressed.

Decline in Total Loans

A decrease in total loans may indicate reduced lending activity or demand, which can affect interest income and overall financial performance if the trend continues.

Classified Loan Balances Increase

An increase in classified loans suggests potential credit quality issues, which could lead to higher provisions for loan losses and impact profitability if not managed effectively.

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 fees associated with its financial services. The bank earns interest income by providing various types of loans, such as commercial real estate loans, construction loans, and consumer loans, which are typically repaid with interest over time. Additionally, Banc of California collects fees from services such as treasury management, merchant services, and investment advisory. The bank may also generate non-interest income through its mortgage origination and servicing operations. Strategic partnerships with real estate developers and other businesses help to enhance its lending activities and expand its client base, contributing further to its earnings.

Banc of California Financial Statement Overview

Summary

Banc of California demonstrates a mixed financial performance. The income statement shows improved profitability despite recent revenue declines. The balance sheet is stable with manageable leverage and a solid equity base. Cash flow generation has improved, though there are challenges in converting income into cash. Overall, the company is on a stable financial footing with areas for improvement in revenue growth and cash conversion.

Income Statement

The income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 52.99%, but revenue has declined by 2.21% compared to the previous period. Net profit margin improved to 8.38% from 6.78% in the last annual report, indicating better profitability. However, the revenue growth rate has been inconsistent, with a recent decline after previous growth. EBIT and EBITDA margins have improved, suggesting operational efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.84, which is manageable for a regional bank. Return on equity is modest at 4.24%, indicating moderate profitability. The equity ratio stands at 10.01%, showing a solid equity base relative to total assets. The company has reduced its debt levels from previous periods, enhancing financial stability.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth at 17.85% TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.74%, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 98.76%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.87B	1.50B	1.61B	1.34B	309.48M
Gross Profit	934.20M	943.09M	226.38M	1.32B	1.44B	214.44M
EBITDA	312.98M	290.06M	-2.12B	664.97M	917.67M	32.18M
Net Income	147.66M	126.89M	-1.90B	423.61M	606.96M	12.57M
Balance Sheet
Total Assets	34.25B	33.54B	38.53B	41.23B	9.43B	7.91B
Cash, Cash Equivalents and Short-Term Investments	2.47B	4.75B	7.72B	7.08B	1.54B	1.45B
Total Debt	2.87B	2.33B	3.85B	2.63B	816.12M	816.76M
Total Liabilities	30.82B	30.04B	35.14B	37.28B	8.36B	6.98B
Stockholders Equity	3.43B	3.50B	3.39B	3.95B	1.07B	897.21M
Cash Flow
Free Cash Flow	201.97M	64.33M	120.55M	581.11M	454.91M	69.77M
Operating Cash Flow	204.50M	77.37M	135.77M	701.97M	502.96M	74.86M
Investing Cash Flow	513.74M	1.89B	12.61B	-3.57B	-5.71B	-266.92M
Financing Cash Flow	-1.06B	-4.84B	-9.61B	1.05B	6.11B	39.40M

Banc of California Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 17.1 is above the 20-day moving average (MA) of 16.82, above the 50-day MA of 16.82, and above the 200-day MA of 14.90, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 is Neutral, 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	$2.39B	9.31	9.51%	5.19%	38.35%	89.73%
FFBC	72 Outperform	$2.36B	8.88	10.16%	4.12%	5.15%	16.42%
BOH	71 Outperform	$2.57B	15.78	10.65%	4.38%	3.40%	23.04%
BANC	68 Neutral	$2.64B	16.31	5.99%	2.34%	20.61%	―
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	$2.50B	14.31	13.69%	2.99%	6.29%	28.28%

Banc of California Corporate Events

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.

Banc of California’s Earnings Call Highlights Strategic Growth

The recent earnings call for Banc of California Inc. painted a picture of robust financial health, underscored by strategic loan growth and a positive outlook for continued profitability. Despite facing increased noninterest expenses and a significant provision related to loan sales, the overall sentiment was optimistic, with the company expecting sustained growth and profitability in the coming quarters.