Financial Data and Key Metrics Changes - The company reported a CET1 ratio above the 10% target, achieving nearly $15 in tangible book value, surpassing previous guidance of the mid-to-low $14 range [5][6] - The estimated spot rate for loan yields was 6.18%, with a net interest margin of 2.75%, up from 1.69% in the previous quarter [11][12] - The company expects the net interest margin to approach 3% in the first quarter of 2024 due to improvements in earning asset yields and a reduction in the cost of funds [12][13] Business Line Data and Key Metrics Changes - The company completed the sale of approximately $6 billion in assets, including a $1.7 billion SFR portfolio and $700 million of the multifamily portfolio, which contributed to a significant reduction in higher-cost wholesale funding [7][8] - The company retained a portion of its multifamily portfolio, which has attractive yields, indicating a strategic decision to maintain well-performing loans [9] Market Data and Key Metrics Changes - The company is now the third largest bank headquartered in California, with a strong presence across the state and a focus on serving businesses with tailored solutions [6][7] - The company has started to regain operating deposit accounts from former PacWest clients, indicating a recovery in client relationships post-merger [10] Company Strategy and Development Direction - The company aims to optimize its balance sheet and enhance profitability through strategic asset sales and a focus on low-cost deposits [9][19] - The company is organized around community banking and specialty alliances, providing a range of financial services tailored to specific industries [16][17] - The company sees significant opportunities in the California banking market due to competitors exiting or reducing their presence, allowing for the acquisition of new client relationships [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality of the loan portfolio, stating that the merger process allowed for a thorough review and resolution of weaker credits [21] - The company anticipates a reasonable level of loan demand and expects total loan balances to be flat to slightly down by the end of 2024, with growth expected in 2025 as economic conditions improve [20][21] - Management highlighted the importance of maintaining a strong focus on profitability, regardless of balance sheet size [31] Other Important Information - The company expects to achieve cost savings from the merger throughout 2024, with a target OpEx ratio of approximately 2% of total assets by the fourth quarter of 2024 [14][15] - The company is actively working on its payments ecosystem, which includes merchant processing and issuing credit cards, with expectations for meaningful contributions to fee income in the future [70][71] Q&A Session Summary Question: What are the expectations for expenses in the upcoming quarter? - Management indicated that the OpEx ratio is expected to be between 210% and 220% in the first quarter, with ongoing initiatives to realize cost savings throughout the year [24][25] Question: How should we think about overall average earning assets this year? - Management expects earning assets to remain relatively flat, with potential for slight reductions as liquidity is deployed against high-cost deposits [30][31] Question: What is the appetite for a buyback given the current capital levels? - Management stated that once sufficient excess capital is built up, various options, including share buybacks, will be considered [34] Question: How do you plan to manage deposit levels throughout the year? - Management emphasized the importance of non-interest bearing deposits and maintaining a loan-to-deposit ratio below 90%, with initiatives in place to grow non-interest bearing deposits [36][38] Question: Can you elaborate on the types of talent being added to the company? - Management mentioned the addition of leaders in various areas, including venture banking and corporate communications, while managing expenses within targets [40] Question: What is the expected contribution from the payments business? - Management indicated that the payments business is expected to contribute meaningfully to fee income in 2024, with ongoing developments in merchant processing and credit card issuance [70][71]

Draft v4.5 1/21/24 Investor Presentation 2023 Fourth Quarter Results Forward Looking Statements This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words or phrases such as "believe," "will," "should," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," "strategy," or similar expressions are intended to identify these forward-looking statements ...

For the quarter ended December 2023, Banc of California (BANC) reported revenue of $193.06 million, up 145% over the same period last year. EPS came in at -$0.46, compared to $0.45 in the year-ago quarter.The reported revenue represents a surprise of +23.13% over the Zacks Consensus Estimate of $156.8 million. With the consensus EPS estimate being -$0.32, the EPS surprise was -43.75%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to W ...

Banc of California (BANC) came out with a quarterly loss of $0.46 per share versus the Zacks Consensus Estimate of a loss of $0.32. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -43.75%. A quarter ago, it was expected that this banking service and lending company would post earnings of $0.31 per share when it actually produced earnings of $0.30, delivering a surprise of -3.23%.Over the last ...

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC): $38.5B Total Assets $17.12 Book Value Per Share $14.96 Tangible Book Value Per Share(1) 10.12% CET1 Ratio 26% Noninterest-Bearing Deposits Banc of California, Inc. (NYSE: BANC) (“Banc of California”), parent of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the fourth quarter and year ended December 31, 2023. On November 30, 2023, Banc of California and PacWest Bancorp clo ...

Wall Street analysts expect Banc of California (BANC) to post quarterly loss of $0.32 per share in its upcoming report, which indicates a year-over-year decline of 171.1%. Revenues are expected to be $156.8 million, up 99% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 3.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timef ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------| | | ...

Banc of California, Inc. (NASDAQ:PACW) Q3 2023 Results Conference Call October 24, 2023 10:00 AM ET Company Participants Jared Wolff - Chairman, President and Chief Executive Officer Joe Kauder - Chief Financial Officer Bill Black - Head of Strategy, PacWest Conference Call Participants Timur Braziler - Wells Fargo Matthew Clark - Piper Sandler Gary Tenner - D.A. Davidson Kelly Motta - KBW Andrew Terrell - Stephens David Feaster - Raymond James Operator Hello, and welcome to Banc of California's Third Quart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------| | | | For ...

Banc of California, Inc. (NYSE:BANC) Q2 2023 Earnings Call Transcript July 26, 2023 12:00 PM ET Company Participants Jared Wolff - President and Chief Executive Officer Joseph Kauder - Chief Financial Officer Paul Taylor - President and Chief Executive Officer of PacWest Kevin Thompson - EVP, Chief Financial Officer of PacWest Conference Call Participants Matthew Clark - Piper Sandler Christopher McGratty - KBW Andrew Terrell - Stephens Gary Tenner - D.A. Davidson Timothy Coffey - Janney Kelly Motta - KBW T ...