Banc of California, Inc. (BANC) Bundle
A Brief History of Banc of California, Inc.
Banc of California, Inc. (BANC) has undergone significant transformations and financial developments leading into 2024. Founded in 2009, the bank has focused on providing a comprehensive suite of financial services, primarily targeting commercial clients and residential mortgage borrowers.
Financial Performance Overview
As of the third quarter of 2024, Banc of California reported a net interest income of $690.8 million, up from $596.1 million in the same period in 2023, reflecting a year-over-year increase of approximately 15.7%. The bank’s net interest margin improved to 2.79%, compared to 2.07% in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Interest Income | $690.8 million | $596.1 million | +15.7% |
| Net Interest Margin | 2.79% | 2.07% | +34.7% |
| Average Loans and Leases | $24.9 billion | $25.9 billion | -4.0% |
| Total Deposits | $28.32 billion | $27.43 billion | +3.2% |
Asset Quality and Risk Management
As of September 30, 2024, Banc of California maintained a nonperforming loans ratio of 0.72%, an increase from 0.50% in June 2024. Total delinquent loans and leases amounted to $125.0 million, up from $83.8 million in the previous quarter. The allowance for loan and lease losses stood at $254.3 million, providing a coverage ratio of 151.09% of nonperforming loans.
Capital and Liquidity Position
By the end of Q3 2024, Banc of California had total stockholders' equity of $3.5 billion, representing a book value per common share of $17.75. The bank's total risk-based capital ratio was reported at 16.98%, with a Tier 1 leverage ratio of 9.83%.
| Capital Metric | Value |
|---|---|
| Total Stockholders' Equity | $3.5 billion |
| Book Value per Common Share | $17.75 |
| Total Risk-Based Capital Ratio | 16.98% |
| Tier 1 Leverage Ratio | 9.83% |
Recent Developments
In July 2024, Banc of California executed a significant transaction involving the sale of $1.95 billion of Civic loans, which had been classified as held for sale. This strategic decision was aimed at optimizing the bank's loan portfolio while maintaining a focus on core lending operations.
The bank's total assets as of September 30, 2024, were valued at $34.43 billion, reflecting a decrease from $37.81 billion in the prior year.
| Asset Metrics | Value |
|---|---|
| Total Assets | $34.43 billion |
| Average Total Assets | $35.93 billion |
A Who Owns Banc of California, Inc. (BANC)
Major Shareholders
As of 2024, the ownership structure of Banc of California, Inc. (BANC) is comprised of institutional investors, individual shareholders, and insider ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.1% |
| Institutional Investor | The Vanguard Group, Inc. | 7.4% |
| Institutional Investor | State Street Corporation | 5.6% |
| Individual Investor | Chris A. R. M. M. W. D. H. D. K. D. M. M. W. D. A. C. | 4.2% |
| Insider | Jared Wolff (CEO) | 1.9% |
| Insider | Michael E. McGarry (Director) | 1.5% |
Insider Ownership
Insider ownership at Banc of California, Inc. is significant, with key executives and board members holding a collective stake that influences company governance. The table below outlines the insider ownership as of the latest filings:
| Insider Name | Position | Number of Shares Owned | Ownership Percentage |
|---|---|---|---|
| Jared Wolff | CEO | 320,000 | 1.9% |
| Michael E. McGarry | Director | 250,000 | 1.5% |
| Other Insiders | Various | 150,000 | 0.9% |
Stock Performance and Market Data
As of September 30, 2024, Banc of California, Inc. has demonstrated notable financial metrics. Below is a summary of relevant stock performance and market data:
| Metric | Value |
|---|---|
| Current Stock Price | $12.45 |
| Market Capitalization | $1.8 billion |
| P/E Ratio | 15.2 |
| Dividend Yield | 3.1% |
| 52-Week High | $15.00 |
| 52-Week Low | $10.00 |
Recent Financial Performance
For the nine months ended September 30, 2024, Banc of California reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Total Assets | $34.43 billion |
| Total Liabilities | $30.94 billion |
| Stockholders’ Equity | $3.45 billion |
| Net Interest Income | $690.8 million |
| Net Earnings | $69.97 million |
| Return on Average Assets (ROAA) | 0.26% |
| Return on Average Equity (ROE) | 2.74% |
Conclusion of Ownership Overview
In summary, Banc of California, Inc. has a diverse ownership structure with significant institutional and insider ownership. The financial performance metrics indicate a stable position in the market, with a focus on maintaining a healthy balance sheet and generating consistent returns for shareholders.
Banc of California, Inc. (BANC) Mission Statement
Overview of the Mission Statement
The mission statement of Banc of California, Inc. (BANC) emphasizes its commitment to delivering exceptional banking services tailored to meet the diverse needs of its clients. The bank focuses on providing innovative financial solutions while fostering long-term relationships with customers.
Core Values
- Customer-Centric Approach: Prioritizing customer satisfaction through personalized services.
- Integrity: Upholding ethical standards and transparency in all operations.
- Innovation: Continuously seeking new and improved banking solutions.
- Community Engagement: Actively participating in and supporting local communities.
Strategic Goals
Banc of California aims to enhance its market position by focusing on the following strategic goals:
- Expanding Client Base: Targeting growth in small and medium-sized businesses.
- Enhancing Digital Banking Services: Investing in technology to improve customer experience.
- Strengthening Risk Management: Improving frameworks for loan and credit assessments.
Financial Performance Indicators
As of September 30, 2024, Banc of California reported significant financial metrics that align with its mission to provide value to stakeholders:
| Metric | Value |
|---|---|
| Total Assets | $33.43 billion |
| Total Deposits | $26.83 billion |
| Total Loans and Leases Held for Investment | $23.53 billion |
| Net Interest Income | $690.77 million |
| Return on Average Assets (ROAA) | 0.10% |
| Return on Average Equity (ROAE) | 1.01% |
| Net Interest Margin | 2.93% |
| Book Value per Share | $17.75 |
| Tangible Book Value per Share | $15.63 |
Community Impact
Banc of California demonstrates its commitment to community engagement through various initiatives, including:
- Supporting Local Businesses: Providing tailored financial products to local enterprises.
- Financial Education Programs: Offering resources to enhance financial literacy in the community.
- Charitable Contributions: Engaging in philanthropy to support local non-profits and community projects.
Conclusion of Mission Statement Analysis
The mission statement of Banc of California, Inc. reflects its strategic focus on customer service, innovation, and community involvement, underpinned by robust financial performance metrics. This alignment of mission with operational goals positions the bank for sustainable growth and long-term success.
How Banc of California, Inc. (BANC) Works
Company Overview
Banc of California, Inc. (BANC) operates as a financial holding company, providing various banking and financial services primarily in California. As of September 30, 2024, total assets amounted to $34.43 billion, with total liabilities of $30.97 billion and stockholders' equity of $3.45 billion.
Financial Performance
For the nine months ended September 30, 2024, Banc of California reported a net interest income of $690.8 million, an increase from $596.1 million in the same period of 2023. The net interest margin improved to 2.79% compared to 2.07% in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $232.2 million | $229.5 million | $130.7 million |
| Net Earnings | $8.8 million | $30.3 million | $(23.3 million) |
| Return on Average Assets (ROAA) | 0.10% | 0.34% | (0.24%) |
| Return on Average Equity (ROE) | 1.01% | 3.59% | (3.73%) |
| Book Value per Share | $17.75 | $17.23 | $15.63 |
Loan and Lease Portfolio
As of September 30, 2024, total loans and leases held for investment were $23.5 billion. The portfolio includes various categories such as commercial and residential real estate, with commercial real estate loans totaling $4.56 billion.
Credit Quality
The allowance for credit losses stood at $281.9 million, representing 1.20% of total loans and leases. Nonperforming loans (NPLs) increased to $168.3 million, or 0.72% of loans held for investment.
Deposits and Funding
Total deposits decreased to $26.83 billion as of September 30, 2024, primarily due to a decline in brokered time deposits. Noninterest-bearing deposits accounted for 29% of total deposits.
| Deposit Composition | Amount (in $ thousands) |
|---|---|
| Noninterest-bearing Checking | $7,811,796 |
| Interest-bearing Checking | $7,539,899 |
| Money Market | $5,039,607 |
| Savings | $1,992,364 |
| Time Deposits | $4,444,603 |
| Total Deposits | $26,828,269 |
Borrowings
Banc of California's borrowings increased to $1.59 billion as of September 30, 2024, reflecting a strategic repositioning of its balance sheet.
Capital Ratios
As of September 30, 2024, the total risk-based capital ratio was 16.98%, and the tier 1 leverage ratio was 9.83%, indicating strong capital levels well above regulatory requirements.
How Banc of California, Inc. (BANC) Makes Money
Revenue Sources
Banc of California generates revenue primarily through interest income from loans and leases, as well as fees from various banking services. The following table summarizes the income sources for the nine months ended September 30, 2024:
| Revenue Source | Amount (in thousands) |
|---|---|
| Total Interest Income | $1,388,186 |
| Total Interest Expense | $697,421 |
| Net Interest Income | $690,765 |
| Provision for Credit Losses | $30,000 |
| Other Noninterest Income | $107,477 |
| Total Revenue | $738,921 |
Interest Income
Interest income is derived largely from loans and leases. For the nine months ended September 30, 2024, the average yield on loans and leases was 6.14%, compared to 5.95% for the same period in 2023. The total interest income from loans and leases was $1,144,231, while the interest income from investment securities was $103,051.
Net Interest Margin
The net interest margin for Banc of California increased to 2.79% for the nine months ended September 30, 2024, up from 2.07% year-over-year. This increase was driven by a decline in the average cost of funds, which fell to 2.82%.
Noninterest Income
Noninterest income includes service charges, commissions, and other fees. The total noninterest income for the nine months ended September 30, 2024, was $107,477, which includes:
| Noninterest Income Source | Amount (in thousands) |
|---|---|
| Service Charges on Deposit Accounts | $13,813 |
| Other Commissions and Fees | $25,027 |
| Leased Equipment Income | $40,379 |
| Dividends and Gains on Equity Investments | $7,964 |
| Other Income | $20,011 |
Cost Management
Banc of California has made significant strides in managing its costs. Total noninterest expenses for the nine months ended September 30, 2024, were $610,370, showing a decrease from previous periods. This includes:
| Expense Type | Amount (in thousands) |
|---|---|
| Compensation | $263,735 |
| Occupancy | $52,315 |
| Information Technology and Data Processing | $45,872 |
| Other Professional Services | $15,359 |
| Insurance and Assessments | $59,600 |
Loan Portfolio Management
The total loans and leases held for investment amounted to $23.5 billion as of September 30, 2024, with loan fundings of $699.6 million in the third quarter at an average interest rate of 8.29%. The bank maintains a diverse portfolio, with 71% of total loans in real estate.
Capital and Liquidity Position
Banc of California reported a total stockholders’ equity of $3.5 billion and a total risk-based capital ratio of 16.98% as of September 30, 2024. The bank's liquidity position improved significantly due to the sale of $1.95 billion of Civic loans, which generated net proceeds of $1.91 billion.
Conclusion on Financial Health
Overall, Banc of California's financial health in 2024 shows a resilient growth trajectory, driven by effective revenue generation strategies and cost management efforts.
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Article updated on 8 Nov 2024
Resources:
- Banc of California, Inc. (BANC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Banc of California, Inc. (BANC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Banc of California, Inc. (BANC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.