A cooperative rate cycle, benign credit, and an improving economy are all generally good for banks, and that at least partly explains why regional banks are up about 50% since mid-2024. With expectations higher in general, I believe individual storiesAnalyst’s Disclosure: I/we have a beneficial long position in the shares of JPM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ...

announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share on its outstanding common stock, representing a 20% increase to the most recent dividend declaration. The dividend will be payable April 1, 2026, to stockholders of record as of March 16, 2026. "The increase in our quarterly dividend reflects the strength of our financial performance and the confidence we have in ou. LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the "Company†) (NYSE: BANC) ...

Financial Data and Key Metrics Changes - The company reported net income available to shareholders of $67.4 million, or $0.42 per diluted share, which was up 11% from $0.38 per diluted share in the third quarter [15] - Net interest income was $251.4 million, down modestly from the prior quarter due to the timing of loan growth and lower loan income from rate cuts [15][16] - Adjusted EPS grew 69% year over year to $1.35, and tangible book value per share increased by 11% [7][15] Business Line Data and Key Metrics Changes - Loan production disbursements were $9.6 billion, up 31% from 2024, with Q4 loan production at $2.7 billion, up 32% quarter over quarter [6][9] - Non-interest-bearing (NIB) deposit accounts increased by nearly 2,500, with new NIB deposit balances growing by approximately $530 million [7] - The adjusted efficiency ratio improved to 55.6%, down 266 basis points from the prior quarter [22] Market Data and Key Metrics Changes - The company achieved double-digit return on average tangible common equity of 10.75%, an increase of 319 basis points since the start of the year [8] - The annualized growth in NIB deposits for the second half of 2025 was 10.5%, reflecting the success of the relationship-driven deposit strategy [9] - Total loan balances were $25.2 billion, up 15% on an annualized basis for the quarter and 6% for the year [18] Company Strategy and Development Direction - The company aims to continue building on its momentum by focusing on high-quality, consistent, and sustainable earnings growth while maintaining disciplined expense management [25] - The strategy includes investing in technology and talent to support long-term growth, as well as capitalizing on dislocation in the California banking landscape [26] - The company plans to maintain a strong balance sheet and deploy capital strategically to drive long-term value [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent high-quality earnings growth and long-term value for shareholders in 2026 and beyond [12][24] - The company expects net interest income to increase by 10%-12% in 2026, driven by loan growth and margin expansion [16] - Management noted that the economic environment remains favorable, with expectations for continued strong loan production activity in 2026 [10][11] Other Important Information - The company returned significant capital to shareholders by repurchasing 13.6 million shares, or 8% of its common stock outstanding [7] - Non-interest income was $41.6 million, up 21% sequentially, driven by gains on the sale of lease residuals and higher market-sensitive income [20] - The provision expense for the quarter was $12.5 million, largely driven by strong loan portfolio growth [23] Q&A Session Summary Question: Inquiry on net interest income and margin trajectory - Management indicated that net interest margin typically expands a couple of basis points each quarter and would likely benefit from improved economic activity if rates are cut [29][30] Question: Clarification on NII growth guidance - The guidance for NII growth of 10%-12% includes baseline accretion, with expectations for accelerated accretion as loans mature [35][37] Question: Loan growth specifics and market conditions - Management noted that loan growth was broad-based, with significant contributions from single-family purchases and strong production across various business units [44][46] Question: Expense growth expectations - Management confirmed that the expense growth guidance of 3%-3.5% does not contemplate any future rate cuts, reflecting a conservative approach [68][70] Question: Strategic investments and hiring plans - Management emphasized ongoing investments in technology and talent to support growth, with plans for significant hiring in 2026 [54][79]

Financial Data and Key Metrics Changes - The company reported net income available to shareholders of $67.4 million, or $0.42 per diluted share, which was up 11% from $0.38 per diluted share in the third quarter [15] - Net interest income was $251.4 million, down modestly from the prior quarter due to the timing of loan growth and lower loan income [15][16] - Adjusted EPS grew 69% year over year to $1.35, and tangible book value per share increased by 11% [7][15] Business Line Data and Key Metrics Changes - Loan production disbursements were $9.6 billion, up 31% from 2024, with Q4 loan production at $2.7 billion, up 32% quarter over quarter [6][9] - Non-interest-bearing (NIB) deposit accounts increased by nearly 2,500, with new NIB deposit balances growing by approximately $530 million [7] - The adjusted efficiency ratio improved to 55.6%, down 266 basis points from the prior quarter [22] Market Data and Key Metrics Changes - The company achieved double-digit return on average tangible common equity of 10.75%, an increase of 319 basis points since the start of the year [8] - The annualized growth in NIB deposits for the second half of 2025 was 10.5%, reflecting the success of the relationship-driven deposit strategy [9] - Average yield on loans declined to 5.83% from 6.05% in Q3, influenced by Fed rate cuts [17] Company Strategy and Development Direction - The company aims to continue building on its momentum by focusing on high-quality, consistent, and sustainable earnings growth while investing in technology and talent [25][26] - The management highlighted the importance of capitalizing on dislocation in the California banking landscape and recent bank M&A activity to attract new clients [26] - The company plans to maintain disciplined expense management while targeting a 3%-3.5% increase in expenses for 2026 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent high-quality earnings growth and long-term value for shareholders in 2026 and beyond [12][25] - The company expects net interest income to increase by 10%-12% in 2026, driven by loan growth and margin expansion [16] - Management noted that credit quality trends were positive, with most credit metrics improving during the quarter [11] Other Important Information - The company repurchased 13.6 million shares, or 8% of its common stock outstanding, at a weighted average price of $1.359 [7] - Non-interest income was $41.6 million, up 21% sequentially, driven by gains on the sale of lease residuals and higher market-sensitive income [20] - The company maintained its allowance for credit losses at 1.12% of total loans, with minimal net charge-offs [23] Q&A Session Summary Question: Inquiry on net interest income and net interest margin trajectory - Management indicated that typically, the margin expands a couple of basis points every quarter and would likely expand faster if rates are cut [29][30] Question: Clarification on NII growth guidance - The guidance for NII growth of 10%-12% includes baseline accretion, with expectations for future accretion to materialize as loans mature [35][37] Question: Loan growth specifics and market conditions - Management noted that loan growth was broad-based, with significant contributions from single-family purchases and other business lines [44][46] Question: Expense growth expectations and investments - Management confirmed that the expense growth guidance of 3%-3.5% does not contemplate any future rate cuts and reflects the impact of recent Fed rate cuts [68][70] Question: Capital management and buyback strategy - Management stated that a 10% CET1 ratio should be considered a floor, with plans for an active buyback program when opportunities arise [108][110]

Financial Data and Key Metrics Changes - The company reported net income available to shareholders of $67.4 million, or $0.42 per diluted share, which was up 11% from $0.38 per diluted share in the third quarter [13] - Net interest income was $251.4 million, down modestly from the prior quarter due to the timing of loan growth and lower loan income [13] - Adjusted EPS grew 69% year over year, and tangible book value per share increased by 11% [6][11] Business Line Data and Key Metrics Changes - Loan production disbursements were $9.6 billion, up 31% from 2024, with Q4 loan production at $2.7 billion, up 32% quarter over quarter [5][8] - Non-interest-bearing (NIB) deposit accounts increased by nearly 2,500, with new NIB deposit balances of nearly $530 million, approaching 30% of total deposits [6][8] - The adjusted efficiency ratio improved to 55.6%, down 266 basis points from the prior quarter [20] Market Data and Key Metrics Changes - The company achieved a double-digit return on average tangible common equity of 10.75%, an increase of 319 basis points since the start of the year [7] - The average yield on loans declined to 5.83% compared to 6.05% in Q3, reflecting the impact of Fed rate cuts [16] - Total loan balances were $25.2 billion, up 15% on an annualized basis for the quarter and 6% for the year [17] Company Strategy and Development Direction - The company aims to continue building on its momentum by focusing on high-quality, consistent, and sustainable earnings growth while maintaining disciplined expense management [23] - The strategy includes investing in technology and talent to support long-term growth and capitalizing on opportunities arising from disruptions in the California banking landscape [24] - The company plans to achieve full-year net interest income growth of 10%-12% from 2025 and expects pre-tax, pre-provision income to grow 20%-25% [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent high-quality earnings growth and long-term value for shareholders in 2026 and beyond [12][23] - The company anticipates that loan production activity will remain healthy across all business units, with strong pipelines and continued positive trends in credit quality [9][10] - Management noted that the economic environment and potential Fed rate cuts could provide additional tailwinds for growth [28] Other Important Information - The company returned significant capital to shareholders by repurchasing 13.6 million shares, or 8% of its common stock outstanding [6] - Non-interest income was $41.6 million, up 21% sequentially, driven by gains on the sale of lease residuals and higher market-sensitive income [19] - The company maintained its allowance for credit losses at 1.12% of total loans, with minimal net charge-offs [21] Q&A Session Summary Question: What is the trajectory for net interest margin (NIM) and net interest income (NII) if the Fed cuts rates? - Management indicated that typically, the margin expands a couple of basis points each quarter, and a rate cut could lead to faster margin expansion [27][28] Question: Is the NII growth guidance of 10%-12% including accretion? - The guidance includes baseline accretion, but there is little expectation for accelerated accretion [32] Question: Can you clarify the base for the pre-tax, pre-provision income growth guidance? - The base is the full-year 2025 results [34] Question: What is the outlook for loan growth in 2026? - The company expects mid-single-digit loan growth, with strong performance anticipated across all business lines [17][19] Question: How does the company view its expense growth in 2026? - The company is targeting a 3%-3.5% increase in expenses, reflecting a conservative approach while allowing for necessary investments [20][42] Question: What is the expected impact of Fed rate cuts on expenses and investments? - Management believes that any efficiencies gained from rate cuts would drop to the bottom line rather than being absorbed by increased spending [91]

Investor Presentation Fourth Quarter and Full Year 2025 Results Forward-Looking Statements and Other Matters This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios, and other non-historical statements, including statements in the "2026 Strategi ...

Core Viewpoint - Banc of California, Inc. (BANC) has demonstrated strong financial performance, surpassing earnings and revenue estimates, indicating growth potential in the regional banking sector [2][3][4]. Financial Performance - BANC reported earnings per share (EPS) of $0.42 for the quarter ending January 21, 2026, exceeding the estimated $0.36 and showing a significant improvement from $0.28 in the same quarter last year [2][6]. - The company's revenue for the quarter was approximately $292.9 million, surpassing the estimated $291.1 million and marking a 10.9% increase year-over-year [3][6]. - BANC has consistently exceeded consensus EPS estimates over the past four quarters, reflecting strong operational performance [4]. Financial Ratios - The company's book value per share is $19.56, with a tangible book value per share of $17.51 [4]. - BANC's market valuation includes a price-to-earnings (P/E) ratio of approximately 15.90 and a price-to-sales ratio of about 1.85 [5][6]. - The debt-to-equity ratio stands at approximately 0.85, indicating financial stability, while the current ratio is around 0.18, suggesting the ability to cover short-term liabilities [5].

Core Insights - Banc of California reported revenue of $292.93 million for Q4 2025, a year-over-year increase of 10.9% and a surprise of +0.07% over the Zacks Consensus Estimate [1] - The EPS for the same period was $0.42, compared to $0.28 a year ago, representing a surprise of +10.53% over the consensus estimate of $0.38 [1] Financial Performance Metrics - Annualized net loan charge-offs to average total loans held-for-investment were 0%, better than the estimated 0.1% [4] - Efficiency Ratio was reported at 59.4%, compared to the average estimate of 62.6% [4] - Net Interest Margin was 3.2%, matching the average estimate [4] - Average Balance of total interest-earning assets was $31.17 billion, below the estimated $31.68 billion [4] - Total Nonperforming loans were $159.17 million, compared to the estimated $179.21 million [4] - Total Nonperforming assets were $176.28 million, better than the estimated $184.36 million [4] - Total NonInterest Income was $41.57 million, exceeding the average estimate of $34.73 million [4] - Net Interest Income was $251.36 million, slightly below the estimated $258 million [4] - Service charges on deposit accounts were $5.04 million, compared to the estimated $5.19 million [4] - Leased equipment income was $16.38 million, significantly higher than the estimated $10.53 million [4] - Other commissions and fees were $9.52 million, slightly below the estimated $9.71 million [4] Stock Performance - Shares of Banc of California returned +2.7% over the past month, outperforming the Zacks S&P 500 composite, which changed by -0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

分组1 - Banc of California reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and up from $0.28 per share a year ago, representing an earnings surprise of +10.53% [1] - The company posted revenues of $292.93 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.07%, and an increase from year-ago revenues of $264.27 million [2] - Banc of California has outperformed the S&P 500, with shares increasing about 4.8% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $292.47 million, and for the current fiscal year, it is $1.73 on revenues of $1.22 billion [7] - The Zacks Industry Rank for Banks - Southwest is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - ACNB, another stock in the same industry, is expected to report quarterly earnings of $1.26 per share, reflecting a year-over-year change of +63.6% [9]

Financial Performance - Banc of California reported diluted earnings per share of $0.42 for Q4 2025, an 11% increase quarter over quarter, and $1.17 for the full year 2025, a significant growth from $0.52 in 2024[1] - Total revenue for Q4 2025 was $292.9 million, a 2% increase from Q3 2025, with pre-tax pre-provision income rising 10%[2] - Noninterest income increased by $65 million to $142.1 million for the year ended December 31, 2025, compared to $77.1 million for 2024[25] - Net earnings for Q4 2025 were $77,391,000, representing a 11.3% increase from $69,629,000 in Q3 2025[66] - Adjusted net earnings available to common and equivalent stockholders for Q4 2025 were $72,409 thousand, up from $64,884 thousand in Q3 2025, a growth of 2.4%[90] - Total revenues for the three months ended December 31, 2025, were $292,933 thousand, compared to $287,729 thousand in the previous quarter and $264,274 thousand in the same quarter of 2024[96] Loan and Deposit Growth - Total loans and leases reached $25.2 billion, reflecting a 15% annualized growth for the quarter and a 6% increase year over year[2] - Fourth quarter loan production totaled $2.7 billion, with a full year production of $9.6 billion, marking a 31% year-over-year increase[2] - Total loans and leases increased by $1.4 billion year over year, reaching $25.2 billion as of December 31, 2025[30] - Total deposits increased by $658.6 million to $27.8 billion at December 31, 2025, driven by a $439.6 million increase in interest-bearing deposits and a $219.0 million increase in noninterest-bearing deposits[46] - Noninterest-bearing checking deposits totaled $7.8 billion, or 28% of total deposits, at December 31, 2025, unchanged from September 30, 2025[47] Credit Quality and Allowance for Losses - Credit quality metrics showed reductions in nonperforming, criticized, and special mention loans, with year-over-year improvements of 16 basis points, 195 basis points, and 278 basis points, respectively[2] - The provision for credit losses for the year ended December 31, 2025, was $70.6 million, compared to $42.8 million for 2024, reflecting an increase in loan losses and unfunded loan commitments[21] - The allowance for loan and lease losses was $245.6 million at December 31, 2025, representing 154.31% of nonperforming loans[37] - The allowance for credit losses on loans totaled $280.5 million, or 1.12% of total loans and leases, at December 31, 2025, up from $270.7 million at September 30, 2025[42] Capital Ratios and Stockholder Equity - The company maintained strong capital ratios, with an estimated Tier 1 capital ratio of 12.34% and a CET 1 capital ratio of 10.01%[2] - Total stockholders' equity increased by $74.5 million to $3.5 billion at December 31, 2025, primarily due to net earnings of $77.4 million[50] - The total risk-based capital ratio was 16.31% at December 31, 2025, down from 16.69% at September 30, 2025[52] - Total common equity increased to $3,042,761 thousand as of December 31, 2025, up from $2,968,223 thousand in the previous quarter, representing a growth of 2.5%[84] Operational Efficiency - Noninterest expenses decreased by $5.0 million from Q3 2025, contributing to an efficiency ratio improvement to 59.35%[2] - The efficiency ratio improved to 59.35% in Q4 2025, down from 62.05% in Q3 2025[69] - The average yield on interest-earning assets declined by 18 basis points to 5.40%, primarily due to a decline in the average yield on loans and leases[14] Market Position and Future Outlook - Banc of California expects continued growth in 2026, supported by strong market position and operational execution[3] - The company emphasizes the importance of maintaining a strong core deposit base, particularly in a rising interest rate environment[59] - Forward-looking statements indicate expectations regarding business performance, liquidity, and capital ratios, subject to various risks and uncertainties[57] Miscellaneous - Banc of California, Inc. has over $34 billion in assets, making it one of the largest independent banks headquartered in Los Angeles[56] - The bank operates 79 full-service branches across California, Denver, and Durham, providing a broad range of loan and deposit products[56] - The company will host a conference call on January 22, 2026, to discuss its fourth quarter and full year 2025 financial results[55] - Non-GAAP financial measures are included in the press release to provide additional insights into the company's financial performance[60] - Risks include changes in economic conditions, interest rates, credit risks, and potential impacts from regulatory changes[59]