Banc of California, Inc. has recently released its 10-Q report, providing an insight into the company's financial performance for the three months ended March 31, 2024. Banc of California, Inc. operates as the bank holding company for Banc of California, offering various banking products and services in California. The company's offerings include deposit products, real estate loans, commercial loans, consumer loans, international banking, and cash and treasury management services. Banc of California, Inc. serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, professionals, and high-net worth individuals.
In the ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS section, the company highlights several factors that influenced its financial condition and results of operations for the quarter. These factors include changes in general economic conditions, interest rate environment, credit risks of lending activities, demand for loans, quality and composition of the securities portfolio, and legislative or regulatory changes. The company also discusses the impact of the PacWest Bancorp merger, which was completed on November 30, 2023, and the balance sheet repositioning strategy implemented in connection with the merger.
As of March 31, 2024, Banc of California, Inc. reported total assets of $36.1 billion, including $25.6 billion of total loans and leases, net of deferred fees, $2.3 billion of securities available-for-sale, $2.3 billion of securities held-to-maturity, and $2.9 billion of interest-earning deposits in financial institutions. This represented a decrease of $2.5 billion in total assets since year-end, primarily due to a decrease in interest-earning deposits in financial institutions. The company reported total liabilities of $32.7 billion, including total deposits of $28.9 billion and borrowings of $2.1 billion, reflecting a decrease of $2.5 billion in total liabilities since year-end, mainly due to a decrease in deposits and borrowings. Banc of California, Inc. had total stockholders' equity of $3.4 billion at March 31, 2024, consistent with the equity reported at December 31, 2023.
The company's net earnings for the first quarter of 2024 were mostly offset by dividends declared and paid. Banc of California, Inc. reported consolidated common equity Tier 1 (CET1), Tier 1 capital, and Total capital ratios of 10.09%, 12.38%, and 16.40% at March 31, 2024.
Moreover, the report discusses the completion of the PacWest Bancorp merger, the equity capital raise, and the balance sheet repositioning strategy, which involved the sale of assets totaling $6.1 billion and the paydown of $8.6 billion of high-cost liabilities. The company also provides insights into its key performance indicators, including net interest income, net interest margin, tax equivalent net interest income, tax equivalent net interest margin, and loan and lease production.
The 10-Q report provides a comprehensive overview of Banc of California, Inc.'s financial performance, strategic initiatives, and key factors impacting its operations in the first quarter of 2024. As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $15.08. For more information, read the company's full 10-Q submission here.
