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Jun 30, 2023
Banc of California Q2 2023 Earnings Report
Reported solid earnings and stable deposits.
Key Takeaways
Banc of California reported a net income of $17.9 million, or $0.31 per diluted common share, for Q2 2023. The company saw interest income growth and stable overall deposits, while also announcing a transformational merger agreement with PacWest Bancorp.
Interest income increased by $9.2 million, or 9%, from the prior quarter.
Overall deposits remained stable, decreasing approximately 1% on average and period-end balances.
Noninterest-bearing deposit growth from new clients contributed inflows of $74.8 million.
Noninterest expenses decreased by $2.1 million, or 4%, from the prior quarter.
Forward Guidance
Banc of California expects earnings growth in the future, with positive trends in noninterest-bearing deposit inflows and higher end-of-period loan balances. The merger with PacWest is expected to accelerate opportunities for new clients and banking talent.
Positive Outlook
- Earnings growth is expected ahead.
- Net interest margin in June was 13 basis points higher than the margin for the entire second quarter.
- Positive trends in noninterest-bearing deposit inflows are expected to continue.
- End-of-period loan balances are higher than average balances for the quarter.
- The merger with PacWest will accelerate opportunities for adding new clients and banking talent.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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