NYSE:BANC

Stock Analysis Report

Executive Summary

Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Banc of California's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

BANC

1.4%

US Banks

1.0%

US Market


1 Year Return

-21.9%

BANC

0.2%

US Banks

6.7%

US Market

Return vs Industry: BANC underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: BANC underperformed the US Market which returned 6.7% over the past year.


Share holder returns

BANCIndustryMarket
7 Day2.5%1.4%1.0%
30 Day-3.0%-2.6%-1.8%
90 Day3.3%0.8%-1.8%
1 Year-19.8%-21.9%3.1%0.2%9.1%6.7%
3 Year-2.7%-10.1%52.0%41.5%46.1%36.6%
5 Year44.9%25.1%69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

How volatile is Banc of California's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banc of California undervalued based on future cash flows and its price relative to the stock market?

30.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BANC ($14.26) is trading above our estimate of fair value ($4.42)

Significantly Undervalued: BANC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BANC is poor value based on its PE Ratio (30.4x) compared to the Banks industry average (12.5x).

PE vs Market: BANC is poor value based on its PE Ratio (30.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: BANC is good value based on its PEG Ratio (0.4x)


Price Based on Value of Assets

PB vs Industry: BANC is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Banc of California expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

84.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BANC's forecast earnings growth (84.1% per year) is above the savings rate (2.7%).

Earnings vs Market: BANC's earnings (84.1% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BANC's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BANC's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if BANC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Banc of California performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BANC's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: BANC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BANC had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: BANC's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: BANC's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BANC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Banc of California's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BANC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BANC's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: BANC's level of assets compared to its equity is low.

Allowance for Bad Loans: BANC has a sufficient allowance for bad loans.

Low Risk Liabilities: BANC's liabilities are made up of primarily low risk sources of funding.

Loan Level: BANC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BANC's loans are broadly funded by customer deposits.

Level of Bad Loans: BANC has an appropriate level of bad loans (0.43%)


Next Steps

Dividend

What is Banc of California's current dividend yield, its reliability and sustainability?

1.96%

Expected Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years2.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BANC's dividend (1.68%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BANC's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: BANC's dividend payments have been volatile in the past 10 years.

Growing Dividend: BANC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.9%), BANC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Banc of California's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Jared Wolff (49yo)

0.6yrs

Tenure

0

Mr. Jared M. Wolff is President and Chief Executive Officer of Banc of California, Inc., and a director of the Company since March 2019. Mr. Wolff also serves as Chairman of the Board of Banc of California ...


Management Age and Tenure

1.5yrs

Average Tenure

50yo

Average Age

Experienced Management: BANC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BANC's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$31,22010 Dec 18
Mary Curran
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.61
BuyUS$75,90006 Nov 18
Michael Smith
EntityIndividual
Shares4,600
Max PriceUS$16.50

Ownership Breakdown


Management Team

  • Jared Wolff (49yo)

    President

    • Tenure: 0.6yrs
  • John Bogler (53yo)

    Executive VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$1.09m
  • Lynn Sullivan (50yo)

    Executive VP

    • Tenure: 0.4yrs
  • Kris Gagnon (67yo)

    Executive VP & Chief Credit Officer

    • Tenure: 1.7yrs
    • Compensation: US$903.25k
  • Diane Summers

    • Tenure: 1.7yrs
  • Doug Rosenthal

    Senior VP & Relationship Manager

    • Tenure: 1.5yrs
  • Jay Sanders

    President of Private & Specialty Banking

    • Tenure: 3yrs
  • Joubin Rahimi

    Senior Vice President of Private Banking

    • Tenure: 1.6yrs
  • Jim Hazboun

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.4yrs
  • Ido Dotan (39yo)

    Executive VP

    • Tenure: 0.4yrs

Board Members

  • Bonnie Hill (78yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$190.00k
  • Walter Wycoff (61yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$199.39k
  • Bob Sznewajs (72yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$291.97k
  • Jonah Schnel (46yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$212.84k
  • Rich Lashley (60yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$210.00k
  • Jared Wolff (49yo)

    President

    • Tenure: 0.6yrs
  • Mary Curran (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$197.51k
  • Marjorie Bowen (54yo)

    Director Nominee

    • Tenure: 0yrs
  • Halle Benett (52yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$213.26k
  • Barbara Fallon-Walsh (66yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$102.93k

Company Information

Banc of California, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banc of California, Inc.
  • Ticker: BANC
  • Exchange: NYSE
  • Founded: 1941
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$725.550m
  • Shares outstanding: 50.88m
  • Website: https://www.bancofcal.com

Number of Employees


Location

  • Banc of California, Inc.
  • 3 MacArthur Place
  • Santa Ana
  • California
  • 92707
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BANCNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2002
FPBDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2002
BANC.PRDNYSE (New York Stock Exchange)DEP SHS SER-DUSUSDApr 2015
BANC.PRENYSE (New York Stock Exchange)DEP SHS REPSTGUSUSDFeb 2016

Biography

Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. The company offers deposit produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:35
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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