Banc of California (BANC) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: 2.41%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.23
• Revenue Growth: 49.10%
• EPS Growth: N/A
• Country: US
• Employees: 1,903
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.12
• Shares Outstanding: 147,301,060
• 10 Day Avg. Volume: 2,431,469
• 30 Day Avg. Volume: 2,044,256
• 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: 2.04
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 5.75
• Enterprise Value/Ebitda: 17.15
• 1Y Price Target: $18.17
• Price Target Upside: 9.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $18.00 ▲(8.37% Upside)

Banc of California's overall stock score is driven by strong earnings call results and positive technical indicators, despite a mixed financial performance and high valuation. The company's robust loan production and improved credit quality metrics are significant strengths, while the high P/E ratio and challenges in cash conversion are areas of concern.

Positive Factors

Loan Production

Strong loan production indicates effective market penetration and demand for the bank's lending services, supporting long-term revenue growth.

Credit Quality

Improved credit quality metrics reduce risk and enhance financial stability, supporting sustainable profitability and risk management.

Net Interest Income

Rising net interest income reflects effective asset-liability management and enhances the bank's core profitability, contributing to long-term financial health.

Negative Factors

Revenue Decline

A decline in revenue can indicate challenges in maintaining market share or pricing power, potentially impacting future growth and profitability.

Cash Conversion Challenges

Difficulties in cash conversion may strain liquidity and limit the bank's ability to invest in growth opportunities or manage financial obligations.

Loan Sales Impact

The impact of loan sales on earnings can create volatility in financial results, affecting predictability and long-term financial planning.

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: 16.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 16.61 is below the 20-day moving average (MA) of 16.68, above the 50-day MA of 15.69, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 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	79 Outperform	2.56B	11.04	8.53%	4.91%	66.96%	67.27%
FFBC	77 Outperform	2.49B	10.40	9.33%	3.76%	4.62%	2.69%
SBCF	75 Outperform	2.68B	18.73	6.11%	2.36%	5.70%	18.72%
PRK	73 Outperform	2.67B	16.15	12.17%	2.88%	10.28%	22.73%
BOH	71 Outperform	2.63B	17.34	9.82%	4.27%	2.74%	7.24%
BANC	71 Outperform	$2.63B	25.87	4.32%	2.41%	49.10%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Banc of California Corporate Events

Banc of California Reports Strong Q2 2025 Results

Banc of California reported its second quarter results for 2025, highlighting a 9% annualized loan growth and net earnings of $18.4 million. The company also achieved a 3% increase in total revenue and a 6% rise in pre-tax pre-provision income from the previous quarter. The bank’s strategic repositioning through loan sales improved its credit profile, while maintaining strong capital ratios and increasing book value per share. The results reflect the company’s robust growth trajectory and market share expansion in key verticals, positioning it for continued profitability and shareholder value.