Banc of California Q2 adjusted EPS beats estimates, loans grow 9%
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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | $0.31 | $0.26 (11 Analysts) |
Q2 EPS |
| $0.12 |
|
Q2 Adjusted Net Income |
| $48.40 mln |
|
Q2 Net Income |
| $28.38 mln |
|
Q2 Net Interest Income |
| $240.22 mln |
|
Q2 Credit Loss Provision |
| $39.10 mln |
|
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
