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Banc of California Q3 EPS rises on higher net interest income

By Reuters News


Overview

  • US regional bank's Q3 diluted EPS rose 21% yr/yr to $0.46

  • Q3 total revenue increased 6% yr/yr, driven by higher net interest income

  • Company says strategic balance sheet repositioning drove higher earnings and positive operating leverage


Outlook

  • Company expects further improvement in profitability in the fourth quarter

  • Banc of California anticipates selling remaining held-for-sale loan portfolio over next several quarters

  • Company focused on disciplined loan growth, relationship deposits and capital generation to deliver sustainable earnings growth


Result Drivers

  • BALANCE SHEET REPOSITIONING - Co said second quarter strategic balance sheet repositioning and reinvestment into higher-yielding assets contributed to increased net interest income and margin in Q3

  • LOAN GROWTH - Co said growth in other residential real estate mortgage loans, asset-based lending, and other commercial portfolios contributed to higher loans and leases held for investment in Q3

  • DEPOSIT INCREASE - Co said average deposits increased $565.3 million in Q3, supporting reduced wholesale funding


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.46

Q3 Net Interest Income

$272.44 mln

Q3 Credit Loss Provision

$10.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Banc of California, Inc. is $22.00, about 22.3% above its October 26 closing price of $17.99

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 27 - Central Bancompany Q3 net income rises 20% on higher net interest income

  • Oct 27 - Hanmi Financial Q3 profit rises as higher net interest income offsets loan charge-off

  • Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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