Banc of California (BANC) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 2.03%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.97
• 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: 1,694,738
• 30 Day Avg. Volume: 1,989,438
• 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: 1.92
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 15.93
• 1Y Price Target: $22.94
• Price Target Upside: 16.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $21.00 ▲(6.54% Upside)

Banc of California's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting growth in earnings per share and strategic share repurchases. Financial performance is moderate, with stable profitability but past inconsistencies. Valuation is fair, supporting the stock's potential for continued growth.

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 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: 19.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 19.71 is above the 20-day moving average (MA) of 19.02, above the 50-day MA of 17.68, and above the 200-day MA of 15.31, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 63.49 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
FFBC	80 Outperform	$2.59B	9.75	10.16%	3.73%	5.15%	16.42%
PFS	80 Outperform	$2.73B	10.64	9.51%	4.59%	38.34%	89.73%
PRK	73 Outperform	$2.61B	14.94	13.69%	2.90%	6.29%	28.28%
BANC	71 Outperform	$3.06B	19.18	5.99%	2.03%	20.64%	―
BOH	71 Outperform	$2.82B	17.36	10.65%	3.95%	3.40%	23.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBCF	62 Neutral	$3.11B	18.89	6.33%	2.29%	6.83%	23.44%

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.