Banc of California reported a net income of $28.2 million, or $0.17 per diluted common share, for Q1 2024, a significant improvement compared to the net loss in Q4 2023. The company benefited from balance sheet repositioning, leading to increased net interest income and lower operating expenses. Deposits saw a positive shift with noninterest-bearing deposits increasing.
Net interest income increased by $88.1 million, or 58%, to $239.1 million.
Net interest margin increased by 109 basis points to 2.78% from 1.69% in the previous quarter.
Noninterest expenses decreased by over $41 million to $210.5 million, excluding merger costs.
Available liquidity and unused borrowing capacity reached $16.8 billion, 2.4 times greater than uninsured deposits.
Banc of California is on track to achieve its profitability targets by Q4 2024, driven by balance sheet repositioning, lower operating expenses, and deposit growth.
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