Banc of California Reports $20.4M Net Earnings

By Tamara Parker • Tuesday, July 23 08:10 • Permanent Link

Banc of California, Inc. (NYSE: BANC) has reported its financial results for the second quarter ended June 30, 2024. The company recorded net earnings available to common and equivalent stockholders of $20.4 million, or $0.12 per diluted common share, for the second quarter of 2024, compared to net earnings of $20.9 million, or $0.12 per diluted common share, for the first quarter of 2024.

Here are some key highlights:

Average noninterest-bearing deposits were higher by $196.5 million, or 3%, in the second quarter.
Net interest margin increased to 2.80%, up 14 basis points from 2.66% in the first quarter.
Average total cost of deposits decreased by 6 basis points to 2.60% for the second quarter compared to 2.66% in the first quarter, and average total cost of funds decreased by 7 basis points to 2.95% for the second quarter compared to 3.02% in the first quarter.
The company had high liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $16.9 billion at June 30, 2024.
Nonperforming assets decreased to 0.37% of total assets at June 30, 2024, compared to 0.44% at March 31, 2024.
Strong capital ratios well above the regulatory thresholds for "well capitalized" banks were reported at June 30, 2024.

The company completed a successful core systems conversion on July 21, 2024.

In terms of income statement highlights for the second quarter, total interest income was $462.6 million, compared to $478.7 million in the first quarter. Total interest expense was $233.1 million, compared to $249.6 million in the first quarter. Net interest income increased by $0.4 million to $229.5 million for the second quarter from $229.1 million for the first quarter.

Provision for credit losses was $11.0 million for the second quarter, compared to $10.0 million for the first quarter. For the six months ended June 30, 2024, the provision for credit losses increased to $21.0 million compared to $5.0 million for the same period in 2023.

Noninterest income decreased by $4.0 million to $29.8 million for the second quarter, and noninterest expense decreased by $6.9 million to $203.6 million for the second quarter.

The market has reacted to these announcements by moving the company's shares 2.0% to a price of $14.68. Check out the company's full 8-K submission here.

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