Healthcare of Ontario Pension Plan Trust Fund Lowers Position in Banc of California, Inc. $BANC

Healthcare of Ontario Pension Plan Trust Fund decreased its stake in shares of Banc of California, Inc. (NYSE:BANC) by 37.4% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 273,567 shares of the bank’s stock after selling 163,235 shares during the period. Healthcare of Ontario Pension Plan Trust Fund’s holdings in Banc of California were worth $4,809,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of BANC. Triumph Capital Management acquired a new position in shares of Banc of California in the 3rd quarter valued at $25,000. Navalign LLC acquired a new stake in shares of Banc of California during the 4th quarter worth $27,000. Orion Capital Management LLC purchased a new position in shares of Banc of California in the 4th quarter worth $35,000. Advisory Services Network LLC acquired a new position in Banc of California in the third quarter valued at $36,000. Finally, EverSource Wealth Advisors LLC grew its position in Banc of California by 38.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,023 shares of the bank’s stock valued at $39,000 after acquiring an additional 564 shares during the period. Hedge funds and other institutional investors own 86.88% of the company’s stock.

Banc of California Stock Performance

Banc of California stock opened at $18.59 on Thursday. The firm has a market capitalization of $2.87 billion, a PE ratio of 14.19 and a beta of 0.73. Banc of California, Inc. has a one year low of $13.96 and a one year high of $21.93. The stock’s 50 day moving average price is $20.10 and its 200 day moving average price is $19.30. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.89 and a current ratio of 0.89.

Banc of California (NYSE:BANC) last issued its quarterly earnings data on Wednesday, July 29th. The bank reported ($1.61) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($2.01). The firm had revenue of $164.05 million during the quarter, compared to analyst estimates of $295.32 million. Banc of California had a net margin of 13.58% and a return on equity of 9.25%. The firm’s revenue was down 94.0% compared to the same quarter last year. During the same period last year, the business earned $0.31 EPS. As a group, sell-side analysts expect that Banc of California, Inc. will post 1.71 EPS for the current fiscal year.

Banc of California Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th were paid a $0.12 dividend. The ex-dividend date was Monday, June 15th. This represents a $0.48 annualized dividend and a dividend yield of 2.6%. Banc of California’s dividend payout ratio is 36.64%.

Wall Street Analyst Weigh In

Several brokerages have commented on BANC. Piper Sandler upped their price target on Banc of California from $22.00 to $23.00 and gave the stock an “overweight” rating in a research note on Monday, April 27th. DA Davidson reaffirmed a “buy” rating and issued a $24.00 price objective on shares of Banc of California in a research note on Tuesday, April 28th. Weiss Ratings cut Banc of California from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, June 4th. Wells Fargo & Company raised their price target on shares of Banc of California from $22.00 to $23.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Finally, Barclays reduced their price target on shares of Banc of California from $25.00 to $23.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, Banc of California has a consensus rating of “Buy” and a consensus target price of $22.69.

Key Banc of California News

Here are the key news stories impacting Banc of California this week:

• Positive Sentiment: Management highlighted 9% annualized average loan growth and 12% annualized deposit growth. Deposits increased by $799 million, or 2.9%, during the quarter, while average loans rose by $556.1 million, or 2.3%, indicating continued underlying franchise expansion. Banc of California Second-Quarter Results
• Positive Sentiment: The company repositioned $2.3 billion of securities, initiated sales of approximately $827 million in loans and retired $385 million of subordinated debt. Banc of California said the moves should enhance its long-term earnings profile and reduce balance-sheet inefficiencies. Banc of California Q2 Earnings Call Transcript
• Neutral Sentiment: Despite the reported loss, estimated Tier 1 and CET1 capital ratios were 11.67% and 9.25%, respectively. Book value per share was $18.38 and tangible book value per share was $16.44 at June 30, providing context for the bank’s capital position after the restructuring.
• Negative Sentiment: Banc of California reported a net loss available to common stockholders of $251.3 million, or $1.61 per diluted share, compared with a consensus estimate of $0.40 EPS and year-ago earnings of $0.31 per share. Banc of California Q2 Earnings Miss Estimates
• Negative Sentiment: Revenue fell sharply to $16.4 million from $286.9 million in the first quarter and was down 94% year over year. The securities repositioning generated a $256.7 million pretax loss, making the quarter’s results substantially weaker than expected and weighing on investor sentiment.

Banc of California Profile

Banc of California, N.A. is a full-service commercial bank headquartered in Santa Ana, California, offering a broad spectrum of banking products and services to corporate and individual customers. The bank focuses on serving middle-market businesses, professional service firms, real estate investors and developers, and entrepreneurs throughout California. Its core offerings include deposit accounts, treasury management services, commercial real estate lending, equipment finance, lines of credit and Small Business Administration lending, complemented by cash management and online banking solutions.

Operating a network of branches and lending offices concentrated in both Southern and Northern California, Banc of California seeks to support local businesses and communities with personalized service and regional expertise.