Stock of the Day - September 11, 2019

Banc of California (BANC)

$21.23

-$0.25 (-1.2%)

Market Cap: $3.27B

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes.

It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.

Today's Trend

Banc of California (BANC) — Investors are reacting to mixed Q1 results and upbeat forward commentary. The bank beat EPS expectations but missed revenue targets; management reaffirmed 2026 growth targets, announced planned debt redemption and expects modest net interest margin expansion. Upgrades and a higher price target from JPMorgan provide additional upside, while the revenue miss and mixed metrics are likely limiting gains, which helps explain today's downward drift.

JPMorgan raised its price target to $22 and upgraded BANC to Overweight, implying ~17% upside from current levels — a catalyst for investor demand. Benzinga: JPMorgan raises price target
Management reaffirmed its 2026 growth outlook and announced plans to redeem certain debt, which should improve capital structure and signal confidence in cash flow. MSN: Banc of California reaffirms 2026 growth outlook, plans debt redemption
Company reaffirmed 20–25% pretax pre-provision income growth and expects 3–4 bps quarterly NIM expansion — a clear operating-profitability target that supports medium-term earnings upside. MSN: Pretax pre-provision income growth reaffirmed
Q1 EPS of $0.39 beat consensus (~$0.38) and showed year-over-year improvement, supporting valuation metrics (P/E ~14x). Yahoo Finance: Q1 earnings highlights
Earnings call transcript and presentation are available for investors who want line-by-line details on loan growth, deposit trends and expense outlook. Useful for modeling but not an immediate catalyst. Seeking Alpha: Earnings call transcript
Company-provided earnings presentation summarizes results and guidance assumptions; helpful for verifying management math and assumptions. Seeking Alpha: Earnings presentation
Coverage pieces comparing peers (e.g., Bread Financial) note solid Q1 performances across some regional names — context for sector sentiment but not specific to BANC's valuation. MSN: Bread Financial and Banc of California post solid Q1 gains
Revenue missed expectations in Q1, which raises questions about top-line momentum and may cap multiple expansion despite the EPS beat. Yahoo Finance: Misses Q1 sales expectations
Analyst and press notes highlight mixed metrics (better EPS but weaker revenue), creating uncertainty around sustainable growth versus one-time items — a reason some investors remain cautious. Zacks: Key metrics analysis

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Banc of California (BANC)

About Banc of California

Today's Trend

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