Overview

• Banc of California Q2 adjusted EPS of $0.31 beats analyst expectations

• Company reports 9% annualized loan growth, driven by lender and fund finance

• Credit quality metrics improved due to strategic loan sales and transfers

Outlook

• Company expects durable, profitable growth through strong market position and efficiency

• Banc of California anticipates continued robust loan origination pipeline

• Company confident in driving long-term shareholder value

Result Drivers

• LOAN GROWTH - 9% annualized loan growth driven by lender finance, fund finance, and purchased single-family residential loans

• NET INTEREST INCOME - Increase due to higher average yield on loans and leases, with flat cost of funds

• CREDIT QUALITY - Improved metrics due to strategic loan sales and transfers, reducing nonperforming and classified loans

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $17.50, about 13.9% above its July 22 closing price of $15.07

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

Press Release: ID:nBw79YNsLa

(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.)