BANC OF CALIFORNIA, INC. has recently released its 10-Q report for the six months ended June 30, 2026. The company is the holding company for Banc of California, a California state-chartered bank that provides deposit, lending, treasury management, and payment services. Its business is centered on small and middle-market businesses, venture-backed companies, nonprofits, and high-net-worth clients, with 77 full-service branches in California plus locations in Denver and Durham.
Management said the quarter was shaped by several balance-sheet moves. In the second quarter, the company repositioned $2.3 billion of lower-yielding held-to-maturity securities, transferred $827.0 million of selected commercial real estate and multi-family construction loans from held-for-investment to held-for-sale, and redeemed $385.0 million of subordinated debt before a higher-rate reset.
The securities repositioning involved transferring $2.3 billion of HTM securities to AFS, selling substantially all of the transferred securities, and redeploying part of the proceeds into higher-yielding, shorter-duration AFS securities. The loan-sale process moved $827.0 million of loans to HFS, with agreements to sell those loans signed in July 2026.
The company also extended its $300 million stock repurchase program through March 16, 2027. During the first six months of 2026, it repurchased about 1.7 million shares for $31.9 million at a weighted-average price of $18.68 per share, leaving $82.6 million available under the authorization at June 30, 2026.
Results reflected a sharp swing in profitability. For the second quarter, Banc of California reported a net loss of $241.3 million, compared with net income of $71.95 million in the first quarter and $28.39 million in the second quarter of 2025. For the first half of 2026, the company posted a net loss of $169.4 million, versus net income of $81.95 million in the first half of 2025.
On a non-GAAP basis, return on average tangible common equity was negative 36.18% in the second quarter and negative 13.30% for the first half of 2026. Return on average equity was negative 27.31% in the second quarter and negative 9.63% for the six-month period.
At June 30, 2026, stockholders’ equity stood at $3.41 billion, down from $3.54 billion at December 31, 2025. Tangible common equity was $2.60 billion, compared with $2.72 billion at year-end, while tangible book value per common share fell to $16.44 from $17.51. Common and equivalent shares outstanding rose to 158.4 million from 155.5 million. The market has reacted to these announcements by moving the company's shares -1.42% to a price of $18.73. Check out the company's full 10-Q submission here.
