Banc of California (BANC) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: 2.65%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.31
• Revenue Growth: 121.00%
• EPS Growth: N/A
• Country: US
• Employees: 1,903
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 147,140,410
• 10 Day Avg. Volume: 2,834,156
• 30 Day Avg. Volume: 2,395,957
• PEG Ratio: 0.60
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.39
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: -0.71
• 1Y Price Target: $17.88
• Price Target Upside: 18.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $15.00 ▼(-0.46%Downside)

Banc of California's stock score reflects a combination of recovering financial performance and strategic corporate moves enhancing governance and liquidity. Despite economic uncertainties and moderate technical momentum, the company's valuation and dividend yield provide a balanced investment case.

Positive Factors

Management Strategy

Management has been actively repurchasing shares, taking advantage of the recent pullback.

Market Potential

Banc of California has an opportunity to grow its franchise significantly with its presence in Los Angeles County, which has $500B of deposits, presenting a substantial market potential.

Valuation

Shares are trading at 84% of tangible book value, indicating potential value for investors.

Negative Factors

Credit Risk

Credit concerns were noted due to negative risk migration and an increase in classified loans by 35%.

Financial Performance

Earnings per share of $0.22 missed expectations, reflecting weaker performance in revenue and expenses.

Profitability

The 4Q25 return on average tangible common equity estimate is below the company's target, reflecting below peer profitability.

Banc of California Business Overview & Revenue Model

Company Description

Banc of California, Inc. (BANC) is a financial holding company that primarily operates through its subsidiary, Banc of California, N.A. The company is headquartered in Santa Ana, California, and serves the diverse financial needs of businesses, entrepreneurs, and individuals throughout Southern California. Banc of California offers a broad range of financial services, including personal banking, business banking, and commercial banking solutions. Its core products and services include checking and savings accounts, loans, treasury management, and merchant services.

How the Company Makes Money

Banc of California generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from fees and service charges. The bank offers various types of loans, including commercial real estate loans, commercial and industrial loans, residential mortgage loans, and consumer loans, which are significant contributors to its interest income. Additionally, the bank earns money from fees associated with deposit accounts, transaction processing, and other financial services. Banc of California's earnings are further supported by strategic partnerships and a focus on community banking initiatives, which help to expand its customer base and foster long-term client relationships.

Banc of California Financial Statement Overview

Summary

Banc of California's financials show a recovery trajectory with improved profitability margins and cash flow generation. Despite recent revenue decline, operational efficiency has rebounded, and the balance sheet remains solid with controlled leverage.

Income Statement

Banc of California shows a mixed performance on its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 52.6%, indicating a strong ability to cover costs, although it has decreased compared to previous years. The net profit margin has improved to 8.3% after a challenging period in 2023, reflecting better operational efficiency. Revenue growth rate between 2024 and the TTM period is negative at -3.7%, indicating a recent decline in revenue. EBIT and EBITDA margins are positive, showcasing operational profitability recovery, yet they remain below historical highs.

Balance Sheet

The balance sheet of Banc of California presents a stable financial position with a debt-to-equity ratio of 0.74, which indicates a moderate level of leverage. The return on equity (ROE) for the TTM period is 4.2%, demonstrating modest equity returns compared to historical highs. The equity ratio is 10.4%, suggesting a conservative capital structure. While equity has grown, total assets have slightly decreased, reflecting strategic asset management.

Cash Flow

The cash flow statement shows a solid free cash flow growth rate of 166.5% in the TTM period, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio is 1.21, indicating that cash generation aligns closely with net income. The free cash flow to net income ratio is 1.15, showing adequate cash conversion. Despite recent improvements, historical fluctuations in cash flow stability warrant cautious optimism.

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

Banc of California Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.07
• 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 15.07 is above the 20-day moving average (MA) of 14.58, above the 50-day MA of 14.16, and above the 200-day MA of 14.67, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 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
FRME	79 Outperform	$2.42B	11.69	9.16%	3.40%	1.42%	2.67%
PFS	77 Outperform	$2.39B	16.51	6.77%	5.24%	80.24%	-30.60%
WAFD	77 Outperform	$2.38B	11.35	7.59%	3.53%	8.74%	5.16%
FFBC	76 Outperform	$2.36B	10.25	9.58%	4.83%	8.05%	-3.31%
BKU	76 Outperform	$2.86B	11.82	8.63%	3.85%	-0.61%	39.49%
Sector *	68 Neutral	$16.93B	11.67	9.79%	3.89%	11.83%	-7.56%
BANC	66 Neutral	$2.37B	23.11	4.33%	2.65%	121.00%	―

Banc of California Corporate Events

Banc of California Appoints New Board Leadership

On May 7, 2025, Banc of California‘s Board of Directors unanimously elected CEO Jared M. Wolff as the chair of the Board, and John M. Eggemeyer as vice chair and lead independent director. This leadership change signifies a strategic move to strengthen the company’s governance and potentially enhance its market position.

Banc of California Boosts Stock Buyback Program

Banc of California reported its first quarter 2025 financial results, highlighting a diluted earnings per share of $0.26 and a 6% annualized loan growth. The company also announced an increase in its stock buyback program to $300 million, reflecting its strong liquidity and capital position. The bank’s net interest margin improved, and it maintained high liquidity levels, with a significant increase in book value per share. Despite economic uncertainties, Banc of California continues to leverage its market strength to support loan and deposit growth while managing expenses effectively.