Banc of California (BANC) Misses Q2 Earnings and Revenue Estimates
Banc of California (BANC) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.32 per share a year ago.
Analysts Estimate Banc of California (BANC) to Report a Decline in Earnings: What to Look Out for
Banc of California (BANC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Banc of California: Opportunity Amidst The Noise
Banc of California has been busy since closing the PacWest deal, including billions of dollars of balance sheet restructuring in Q1 that meaningfully reduces funding costs. I expect above-average growth in 2025 driven by balance sheet restructuring, NIM improvement, and cost synergies from the PacWest deal. Long-term core earnings growth should grow at 5-6%, driving a fair value above $15, and the shares also appear undervalued on ROTCE-driven P/TBV, with a potential fair value of $18.50-$20.
Banc of California: 0.75x Book Value, Soaring NII, 3.1% Dividend (Rating Upgrade)
Banc of California shares are undervalued, trading below book value, with potential for upside due to balance sheet restructuring and growth in the net interest margin. The lender's net interest margin increased to 2.66% in Q1'24, driven by a reduction in high cost wholesale funding. Despite risks to interest rates, Banc of California is a bargain and offers investors significant revaluation potential.
Banc of California: Priced Below Tangible Book Value Unfairly
Banc of California and PacWest merger created the third largest bank in California with over 70 branches and a focus on improving profitability. Asset analysis shows a stable loan portfolio with potential for improved profitability through new loan production and asset repricing opportunities. Liability analysis highlights a decrease in deposit costs and borrowing, with a focus on growing non-interest-bearing deposits to fuel profitability and improve net interest margin.
Swiss National Bank Boosts Stake in Banc of California, Inc. (NYSE:BANC)
Swiss National Bank grew its stake in shares of Banc of California, Inc. (NYSE:BANC – Free Report) by 156.8% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 295,114 shares of the bank’s stock after buying an additional 180,214 shares during the period. Swiss National Bank owned 0.51% of Banc of California worth $3,963,000 at the end of the most recent reporting period. A number of other institutional investors also recently made changes to their positions in BANC. Victory Capital Management Inc. grew its stake in Banc of California by 69.7% in the 3rd quarter. Victory Capital Management Inc. now owns 1,876,594 shares of the bank’s stock worth $23,232,000 after acquiring an additional 770,938 shares during the period. Brandywine Global Investment Management LLC grew its position in shares of Banc of California by 290.3% in the third quarter. Brandywine Global Investment Management LLC now owns 727,452 shares of the bank’s stock valued at $9,006,000 after purchasing an additional 541,052 shares during the period. Massachusetts Financial Services Co. MA acquired a new position in Banc of California in the third quarter valued at $6,366,000. One Fin Capital Management LP purchased a new position in Banc of California during the third quarter worth about $5,132,000. Finally, South Dakota Investment Council boosted its stake in Banc of California by 238.8% in the 4th quarter. South Dakota Investment Council now owns 571,063 shares of the bank’s stock worth $7,669,000 after buying an additional 402,498 shares during the last quarter. 86.88% of the stock is owned by institutional investors and hedge funds. Insider Buying and Selling at Banc of California In other Banc of California news, Director Richard J. Lashley bought 10,000 shares of the company’s stock in a transaction dated Thursday, February 29th. The shares were acquired at an average cost of $21.40 per share, with a total value of $214,000.00. Following the completion of the transaction, the director now owns 10,000 shares in the company, valued at $214,000. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In other Banc of California news, CEO Jared M. Wolff bought 7,130 shares of the business’s stock in a transaction on Thursday, April 25th. The shares were bought at an average cost of $13.98 per share, with a total value of $99,677.40. Following the transaction, the chief executive officer now directly owns 268,695 shares in the company, valued at approximately $3,756,356.10. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard J. Lashley purchased 10,000 shares of the firm’s stock in a transaction dated Thursday, February 29th. The shares were bought at an average cost of $21.40 per share, with a total value of $214,000.00. Following the transaction, the director now directly owns 10,000 shares of the company’s stock, valued at approximately $214,000. The disclosure for this purchase can be found here. 7.37% of the stock is currently owned by corporate insiders. Banc of California Stock Performance Shares of NYSE:BANC opened at $14.59 on Monday. The business’s 50-day simple moving average is $14.42 and its 200 day simple moving average is $13.64. The company has a market cap of $2.29 billion, a P/E ratio of -4.38 and a beta of 1.17. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.89 and a current ratio of 0.89. Banc of California, Inc. has a one year low of $9.96 and a one year high of $16.08. Banc of California (NYSE:BANC – Get Free Report) last posted its quarterly earnings data on Tuesday, April 23rd. The bank reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.07). The firm had revenue of $522.57 million for the quarter, compared to analysts’ expectations of $296.02 million. Banc of California had a negative net margin of 29.10% and a positive return on equity of 2.25%. During the same quarter in the prior year, the business earned $0.37 EPS. On average, sell-side analysts forecast that Banc of California, Inc. will post 1.14 earnings per share for the current fiscal year. Banc of California Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Shareholders of record on Friday, June 14th will be given a $0.10 dividend. The ex-dividend date is Friday, June 14th. This represents a $0.40 dividend on an annualized basis and a yield of 2.74%. Banc of California’s payout ratio is currently -12.01%. Wall Street Analysts Forecast Growth A number of research analysts have recently commented on the stock. StockNews.com raised shares of Banc of California to a “sell” rating in a research note on Thursday, April 25th. Truist Financial cut their price target on shares of Banc of California from $16.00 to $15.00 and set a “hold” rating on the stock in a research note on Thursday, April 25th. Stephens lowered their price objective on shares of Banc of California from $16.00 to $15.00 and set an “equal weight” rating for the company in a research note on Tuesday, May 14th. Piper Sandler cut their target price on Banc of California from $20.00 to $19.00 and set an “overweight” rating on the stock in a research report on Monday, May 13th. Finally, Wedbush lowered their price target on Banc of California from $16.00 to $15.00 and set a “neutral” rating for the company in a research report on Wednesday, April 24th. One research analyst has rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $16.31. View Our Latest Stock Analysis on BANC Banc of California Profile (Free Report) Banc of California, Inc operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes.
