Banc of California(US:BANC)2025-04-23 20:27Financial Performance - Banc of California reported diluted earnings per share of $0.26 for Q1 2025, down from $0.28 in Q4 2024, with net earnings available to common stockholders at $43.6 million[3]. - Net earnings for Q1 2025 were $53,568,000, a decrease of 5.2% from $56,919,000 in Q4 2024 and an increase of 73.5% from $30,852,000 in Q1 2024[56]. - The return on average assets for Q1 2025 was 0.65%, down from 0.67% in Q4 2024 and up from 0.33% in Q1 2024[58]. - The efficiency ratio improved to 66.35% in Q1 2025 from 68.63% in Q4 2024 and 76.87% in Q1 2024[58]. - Total revenue for Q1 2025 was $266,014,000, compared to $264,274,000 in Q4 2024 and $262,918,000 in Q1 2024, indicating stable revenue generation[81]. Loan and Deposit Growth - Total loans reached $24.1 billion, reflecting a 6% annualized growth, driven by increases in nearly all loan segments, particularly in commercial and industrial portfolios[6]. - New loan originations totaled $2.6 billion with a weighted average interest rate of 7.20%[6]. - Loans and leases held for investment increased by $344.9 million to $24.1 billion in Q1-2025, with loan originations totaling $2.6 billion[25]. - Total deposits remained relatively stable, with a slight increase of $1.3 million to $27.2 billion compared to Q4-2024[20]. - Total deposits remained mostly flat at $27.2 billion as of March 31, 2025, compared to $27.2 billion at December 31, 2024[36]. Credit Quality and Losses - The provision for credit losses was $9.3 million in Q1 2025, down from $12.8 million in Q4 2024, reflecting improved credit quality with net charge-offs at 0.24% of average loans[14]. - As of March 31, 2025, total delinquent loans and leases increased to $200.6 million, up from $180.2 million at December 31, 2024, representing an increase of 11.4%[28]. - Nonperforming loans and leases rose to $213.5 million at March 31, 2025, compared to $189.6 million at December 31, 2024, marking an increase of 12.6%[29]. - The allowance for loan and lease losses decreased to $234.986 million at March 31, 2025, from $239.360 million at December 31, 2024, a decline of 1.6%[32]. - The annualized net charge-offs to average loans and leases was 0.24% for the first quarter, down from 0.45% for the fourth quarter of 2024[35]. Stockholder Equity and Repurchase Program - The company announced an increase in its stock repurchase program from $150 million to $300 million, having repurchased $38.5 million of common stock at an average price of $14.36 per share during Q1[4]. - Total stockholders' equity increased by $21.7 million to $3.5 billion, driven by net earnings of $53.6 million[41]. - Book value per common share rose to $18.17 at March 31, 2025, compared to $17.78 at December 31, 2024[41]. - The company reported a total of 166,403,086 common shares outstanding as of March 31, 2025, down from 168,825,656 shares as of December 31, 2024[54]. Interest Income and Margin - Total interest income for Q1 2025 was $406,655,000, a decrease of 4.2% from $424,519,000 in Q4 2024 and a decrease of 15.0% from $478,704,000 in Q1 2024[56]. - Net interest income after provision for credit losses was $223,064,000, slightly up from $222,484,000 in Q4 2024 and up from $219,102,000 in Q1 2024[56]. - Net interest margin improved to 3.08%, up 4 basis points from 3.04% in Q4 2024, primarily due to lower average costs of deposits[10]. - The average yield on loans and leases decreased to 5.90% in Q1 2025 from 6.01% in Q4 2024 and 6.08% in Q1 2024[58]. Economic and Market Risks - The company highlighted risks including economic downturns, interest rate fluctuations, and credit risks that could impact future performance[49]. - The company enhanced its credit monitoring process to proactively manage potential risks amid economic uncertainty[26].