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 products, real estate lending, commercial lending, consumer loans, treasury management, and payment processing services. It operates 77 full-service branches in California, plus locations in Denver and Durham, and also serves clients through regional offices nationwide.
Management said the second quarter was marked by several balance-sheet moves: it 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 the $2.3 billion portfolio to available-for-sale, selling substantially all of it, and redeploying part of the proceeds into higher-yielding, shorter-duration available-for-sale securities. The loan transfer was followed by agreements in July 2026 to sell those loans.
The company also extended its $300 million stock repurchase program through March 16, 2027. In 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.
The quarter’s non-GAAP figures showed a sharp swing in profitability. Banc of California reported a net loss of $241.3 million in the second quarter of 2026, compared with net income of $71.95 million in the first quarter of 2026 and $28.39 million in the second quarter of 2025. For the first half of 2026, net loss was $169.4 million, versus net income of $81.95 million in the first half of 2025.
Return on average equity fell to a negative 27.31% in the second quarter from 8.22% in the prior quarter and 3.32% a year earlier. Return on average tangible common equity was negative 36.18% in the second quarter, compared with 9.91% in the first quarter and 3.70% in the year-earlier quarter. For the first half, ROATCE was negative 13.30%, versus 5.59% in the first half of 2025.
At June 30, 2026, stockholders’ equity stood at $3.41 billion, down from $3.54 billion at December 31, 2025. Common equity was $2.91 billion, compared with $3.04 billion at year-end, while tangible common equity declined to $2.60 billion from $2.72 billion. Book value per common share fell to $18.38 from $19.56, and tangible book value per common share dropped to $16.44 from $17.51. Common and equivalent shares outstanding rose to 158.4 million from 155.5 million. As a result of these announcements, the company's shares have moved -1.42% on the market, and are now trading at a price of $18.73. For the full picture, make sure to review BANC OF CALIFORNIA, INC.'s 10-Q report.
