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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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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