Banc of California (NYSE:BANC) Issues Quarterly Earnings Results, Misses Estimates By $2.01 EPS

Banc of California (NYSE:BANC) issued its quarterly earnings results on Wednesday. The bank reported ($1.61) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($2.01), FiscalAI reports. Banc of California had a net margin of 13.58% and a return on equity of 9.25%. Banc of California’s revenue was down 94.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.31 EPS.

Banc of California Price Performance

Shares of NYSE:BANC traded down $2.04 on Wednesday, hitting $19.14. The stock had a trading volume of 4,432,508 shares, compared to its average volume of 2,948,237. Banc of California has a twelve month low of $13.96 and a twelve month high of $21.93. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89. The firm’s 50 day moving average price is $20.11 and its 200-day moving average price is $19.31. The company has a market capitalization of $2.95 billion, a price-to-earnings ratio of 14.65 and a beta of 0.73.

Banc of California Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Monday, June 15th were issued a dividend of $0.12 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.5%. Banc of California’s dividend payout ratio (DPR) is presently 36.64%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BANC. Wells Fargo & Company lifted their price objective on Banc of California from $22.00 to $23.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Barclays reduced their target price on Banc of California from $25.00 to $23.00 and set an “overweight” rating for the company in a research report on Tuesday, April 7th. Weiss Ratings downgraded shares of Banc of California from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, June 4th. JPMorgan Chase & Co. boosted their price target on shares of Banc of California from $22.00 to $24.00 and gave the company an “overweight” rating in a report on Wednesday, July 1st. Finally, DA Davidson restated a “buy” rating and issued a $24.00 price objective on shares of Banc of California in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $22.69.

Hedge Funds Weigh In On Banc of California

Institutional investors have recently added to or reduced their stakes in the company. Triumph Capital Management acquired a new position in Banc of California in the third quarter valued at about $25,000. Advisory Services Network LLC acquired a new stake in shares of Banc of California during the third quarter worth approximately $36,000. Meeder Asset Management Inc. acquired a new position in shares of Banc of California in the 4th quarter worth approximately $44,000. Danske Bank A S bought a new stake in Banc of California during the 3rd quarter worth approximately $70,000. Finally, Arax Advisory Partners increased its holdings in Banc of California by 165.3% during the 4th quarter. Arax Advisory Partners now owns 3,829 shares of the bank’s stock valued at $74,000 after purchasing an additional 2,386 shares in the last quarter. 86.88% of the stock is owned by institutional investors.

More Banc of California News

Here are the key news stories impacting Banc of California this week:

• Positive Sentiment: Management reported 9% annualized average loan growth and 12% annualized deposit growth. Deposits increased by $799 million, or 2.9%, during the quarter, while average loans grew by $556.1 million, or 2.3%. Banc of California Second Quarter Financial Results
• Positive Sentiment: The bank said its balance-sheet repositioning should enhance long-term earnings. It retired $385 million of subordinated debt and ended the quarter with an estimated Tier 1 capital ratio of 11.67% and CET1 ratio of 9.25%, providing support for its capital position. Banc of California Reports Q2 Loss and Strategic Repositioning
• Neutral Sentiment: The company repositioned $2.3 billion of securities and began a targeted sale process for $827 million of loans. Book value per share was $18.38 and tangible book value per share was $16.44 at June 30, but the transition created significant near-term volatility. Banc of California Posts Q2 Net Loss
• Negative Sentiment: BANC reported a $251.3 million net loss available to common shareholders, or $1.61 per diluted share, versus analyst expectations of approximately $0.40 in earnings and $0.31 of EPS a year earlier. The securities repositioning generated a $256.7 million pretax loss. Banc of California Q2 Earnings Miss Estimates
• Negative Sentiment: Quarterly revenue fell to $16.4 million from $286.9 million in the prior quarter and declined 94% year over year, adding to concerns about the bank’s near-term profitability. Banc of California Posts Q2 Net Loss

About Banc of California

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.