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Jun 30, 2022
Banc of California Q2 2022 Earnings Report
Reported strong profitability, $1.2 billion in loan fundings, and net interest margin expansion.
Key Takeaways
Banc of California reported a solid operating performance for Q2 2022, with net income of $26.7 million, or $0.43 per diluted common share. The company saw strong loan production of $1.2 billion, funded with a low-cost deposit base, and a net interest margin of 3.58%, up 7 basis points from the prior quarter.
Adjusted EPS was $0.45.
Pre-tax pre-provision return on average assets increased to 1.58%, up from 1.54% in the prior quarter.
Net interest margin increased by 7 basis points to 3.58% from the prior quarter.
The company repurchased $38.9 million of common stock during the quarter.
Banc of California
Banc of California
Forward Guidance
Banc of California anticipates continued loan growth and net interest margin expansion in the second half of the year, driven by a strong loan pipeline and a rising interest rate environment.
Positive Outlook
- Loan pipeline remains strong, indicating continued loan growth.
- Asset sensitive balance sheet will benefit from the rising rate environment.
- Anticipates further expansion of operating leverage.
- Expects additional expansion in net interest margin.
- Positioned to continue delivering strong financial results for the benefit of shareholders.
Challenges Ahead
- Rising inflation
- Higher oil prices
- Ongoing supply chain issues
- Military conflict between Russia and Ukraine
- Uncertainty related to the COVID-19 pandemic