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Banc of California
(NYSE:BANC)
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Rating:58Neutral
Price Target:
$19.50
â–¼(-8.36% Downside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improving underlying financial performance and cash generation following the 2023 downturn, supported by constructive earnings-call guidance for higher NIM, stronger profitability metrics, and improving credit/capital trends. These positives are moderated by weak technicals (price below major moving averages), balance-sheet/earnings volatility, and near-term headline risk from one-time losses and loan-sale execution.
Positive Factors
Improving Cash Generation
Operating cash flow rose in 2025 and again in 2026 TTM, and free cash flow is broadly in line with reported earnings (FCF/net income ~0.93). That sustained cash conversion improves funding self-sufficiency, supports capital rebuild and cushions execution of strategic initiatives over the next 2–6 months.
Negative Factors
Elevated Leverage
Leverage increased to roughly parity with equity (debt-to-equity ~1.0) after prior stress in 2023. Higher leverage reduces capital flexibility, raises sensitivity to funding shocks, and can slow CET1 recovery, making the bank more exposed to downside over the next several quarters.
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Positive Factors
Negative Factors
Improving Cash Generation
Operating cash flow rose in 2025 and again in 2026 TTM, and free cash flow is broadly in line with reported earnings (FCF/net income ~0.93). That sustained cash conversion improves funding self-sufficiency, supports capital rebuild and cushions execution of strategic initiatives over the next 2–6 months.
Read all positive factors
Banc of California (BANC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.95B
Dividend Yield2.3%
Average Volume (3M)2.86M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-12.95%
EPS Growth-161.72%
CountryUS
Employees1,904
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.32
Shares Outstanding153,724,800
10 Day Avg. Volume3,037,429
30 Day Avg. Volume2,859,091
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.85
Price to Sales (P/S)1.66
P/FCF Ratio12.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.43Price Target Upside5.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.14
Revenue Forecast (FY)$1.19B
Banc of California Business Overview & Revenue Model
Company Description
Banc of California, Inc. is a financial holding company that, through its subsidiary Banc of California, National Association, delivers a full spectrum of banking products and services across the United States. The company's offerings encompass a ...
How the Company Makes Money
Banc of California primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated by earning interest on loans and interest-earning assets (such as investment securities and interest-bearing cash...
Banc of California Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call describes a quarter of strategic balance-sheet repositioning that produced meaningful long-term benefits (276 bps yield pickup on redeployed securities, clearer funding cost pathway, improved credit metrics, strong loan and deposit growth) but generated large one-time accounting losses and elevated provisioning in the reported quarter. Management presented clear targets (NIM ~3.30%+ in Q3, Q4 pretax pre-provision income of $125M–$130M, CET1 trajectory to >10% by early 2027), emphasized that the adverse reported results are largely nonrecurring, and highlighted quick tangible book earn-back (≈1.4 years). Given the strategic rationale, improved recurring NII prospects, and material improvements in credit metrics and capital outlook outweighing the one-time reported hits, overall tone is constructive.Positive Updates
Strong Loan and Deposit Growth
9% annualized loan growth and 12% annualized deposit growth in the quarter; $2.8 billion of loan production; company guiding to mid-single-digit loan growth for the year and indicating it may outpace that target.
Negative Updates
Large One-Time Accounting Loss and Reported Net Loss
Reported net loss available to common and equivalent shareholders of $251.3 million, or $1.61 per diluted share, driven primarily by a $256.7 million pretax loss on sale of securities after transferring HTM securities to AFS and subsequent sale.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Loan and Deposit Growth
9% annualized loan growth and 12% annualized deposit growth in the quarter; $2.8 billion of loan production; company guiding to mid-single-digit loan growth for the year and indicating it may outpace that target.
Read all positive updates
Company Guidance
Management guided that after closing the targeted ~$825M loan sale and fully reinvesting the proceeds from the $2.3B securities repositioning (securities sold at ~2.1% yield, $1.7B reinvested at a 4.87% weighted yield — a 276 bp pickup, ~$100M left to invest), they expect net interest margin to be around 3.30% on a go‑forward basis with year‑end NIM guidance of 3.30%–3.40% and further expansion in H2; Q4 pretax, pre‑provision income is targeted at $125M–$130M, ROTCE is targeted roughly 11.5%–12.5% by year‑end, and loan growth is expected in the mid‑single digits (Q2: 9% annualized, $2.8B new production) with deposits running ~12% annualized and cumulative new noninterest‑bearing deposits of ~$1.2B. They expect capital to build to ~9.5%–9.6% CET1 in Q3, ~9.8%–9.9% by year‑end and above 10% in early 2027 (CET1 was 9.25% at 6/30), with a possible ~60 bp uplift from regulatory reform and a tangible‑book earn‑back of ~1.4 years; management also highlighted improving credit metrics (special mention loans -56%, classified loans -31%, delinquents -50%), an ACL ratio of 1.14%, a normalized provision run‑rate of roughly $9M–$12M/quarter, and Q2 cost of deposits/cost of funds of 1.80% and 2.14%.Banc of California Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
57
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.81B | 1.87B | 1.50B | 1.61B | 1.34B |
| Gross Profit | 1.09B | 1.06B | 943.09M | 226.38M | 1.32B | 1.44B |
| EBITDA | 416.73M | 397.16M | 290.06M | -2.12B | 664.97M | 917.67M |
| Net Income | 247.36M | 228.97M | 126.89M | -1.90B | 423.61M | 606.96M |
Balance Sheet | ||||||
| Total Assets | 34.72B | 34.80B | 33.54B | 38.53B | 41.23B | 9.43B |
| Cash, Cash Equivalents and Short-Term Investments | 253.92M | 7.23B | 4.75B | 7.72B | 7.08B | 1.54B |
| Total Debt | 3.51B | 3.02B | 2.33B | 3.85B | 2.63B | 816.12M |
| Total Liabilities | 31.17B | 31.26B | 30.04B | 35.14B | 37.28B | 8.36B |
| Stockholders Equity | 3.55B | 3.54B | 3.50B | 3.39B | 3.95B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 266.77M | 234.77M | 64.33M | 120.55M | 581.11M | 454.91M |
| Operating Cash Flow | 289.46M | 255.60M | 77.37M | 135.77M | 701.97M | 502.96M |
| Investing Cash Flow | -1.13B | -1.48B | 1.89B | 12.61B | -3.57B | -5.71B |
| Financing Cash Flow | 716.55M | 1.03B | -4.84B | -9.61B | 1.05B | 6.10B |
Banc of California Technical Analysis
Negative
21.28
Price Trends
20.02
Negative
19.00
Positive
18.77
Positive
Market Momentum
0.41
Negative
58.58
Neutral
62.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANC, the sentiment is Negative. The current price of 21.28 is above the 20-day moving average (MA) of 20.60, above the 50-day MA of 20.02, and above the 200-day MA of 18.77, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BANC.
Banc of California Risk Analysis
Banc of California disclosed 43 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $3.55B | 11.79 | 10.07% | 2.96% | 11.65% | 13.28% | |
76 Outperform | $3.15B | 14.77 | 12.78% | 3.33% | 1.90% | 41.02% | |
76 Outperform | $3.77B | 18.50 | 12.46% | 2.96% | 11.59% | 8.54% | |
75 Outperform | $3.22B | 10.28 | 11.00% | 4.02% | 3.73% | 35.18% | |
71 Outperform | $3.38B | 46.32 | 5.61% | 2.24% | 23.80% | -0.77% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $2.95B | -46.71 | -0.62% | 2.07% | -12.95% | -161.72% |
* Financial Sector Average
BANC
Banc of California
19.15
5.11
36.44%
BOH
Bank Of Hawaii
79.90
19.73
32.78%
FFBC
First Financial Bancorp
33.83
10.80
46.90%
PRK
Park National
208.15
53.56
34.65%
PFS
Provident Financial Services
24.68
7.36
42.51%
SBCF
Seacoast Banking Of Florida
34.74
7.35
26.85%
Banc of California Corporate Events
Business Operations and StrategyFinancial Disclosures
Banc of California Reports Q2 Loss, Strategic Repositioning
Negative
Jul 29, 2026
In a press release dated July 29, 2026, Banc of California reported second quarter 2026 results marked by a net loss of $251.3 million, or $(1.61) per diluted share, driven by significant one-time charges. Despite the loss, the bank delivered 2.3%...
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.