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Net Loss (GAAP): $0.01 per share for the third quarter.
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Adjusted Earnings Per Share: $0.25 for the third quarter.
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Net Interest Income: $232 million, slightly up from the prior quarter.
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Net Interest Margin: Increased 13 basis points to 2.93%.
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Cost of Funds: Declined from 2.95% to 2.82%.
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Yield on Average Earning Assets: Decreased from 5.65% to 5.63%.
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Total Non-Interest Expense: $196.2 million, a decrease of $7.4 million from the prior quarter.
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Loan Production and Line Utilization: $1.8 billion, outpaced paydowns of $1.5 billion.
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Yield on New Loan Production: Increased to 8.29% from 7.80% last quarter.
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Net Charge-Offs: $2.4 million or 0.04% of loans.
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Reserves: 1.2% of total loans.
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Economic Coverage Ratio: Above 1.8% of total loans.
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Total Loans Held for Investment: Increased by approximately $300 million.
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Total Deposits: Declined due to reduction in broker deposits.
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Non-Interest-Bearing Deposits: Grew to 29% of total deposits.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Banc of California Inc (NYSE:BANC) successfully sold $1.95 billion of Civic loans at 98% of par, which helped reposition their balance sheet.
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The company achieved a significant reduction in non-interest expenses, reaching their target range of $195 million to $200 million a quarter earlier than expected.
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Net interest margin expanded by 13 basis points to 2.93%, driven by strategic balance sheet actions.
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Banc of California Inc (NYSE:BANC) completed a core system conversion, consolidating over 20,000 customers onto a single platform, enhancing operational efficiency.
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The company reported strong growth in new client relationships, adding over 1,700 new relationships in the past three quarters.
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Banc of California Inc (NYSE:BANC) reported a net loss of $0.01 per share for the third quarter, impacted by a $60 million loss from securities repositioning.
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The company experienced an increase in classified loans, reflecting a cautious approach to credit management in a challenging economic environment.
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Despite efforts, the overall loan growth was modest, with industry activity levels remaining tepid.
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There was some volatility in non-interest-bearing deposits, which remained flat from the previous quarter.
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The commercial real estate market remains uncertain, prompting a cautious and conservative approach to portfolio management.
Q: What is the outlook for ECR deposits, and do you expect any growth? A: Jared Wolff, CEO, stated that they fully expect to grow their HOA balances, with a focus on bringing over new HOA relationships to the bank. The all-in cost of deposits, including the ECR component, is a little over 3%, and there is an opportunity to reduce these costs as rates decrease.