Banc of California (NYSE:BANC) - Share price, News & Analysis

BANC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	1/6

BANC Stock Overview

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.

Rewards

Trading at 54.6% below our estimate of its fair value

Earnings are forecast to grow 4.46% per year

Earnings grew by 424.4% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Banc of California Competitors

Signature Bank

NasdaqGS:SBNY

US$12.3b

Webster Financial

NYSE:WBS

US$8.3b

Prosperity Bancshares

NYSE:PB

US$6.5b

F.N.B

NYSE:FNB

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Banc of California
Historical stock prices
Current Share Price	US$18.44
52 Week High	US$22.09
52 Week Low	US$15.40
Beta	1.46
1 Month Change	-1.92%
3 Month Change	-4.01%
1 Year Change	6.16%
3 Year Change	35.09%
5 Year Change	-9.16%
Change since IPO	29.59%

Recent News & Updates

May 16

Banc of California (NYSE:BANC) Is Due To Pay A Dividend Of US$0.06

Banc of California, Inc. ( NYSE:BANC ) has announced that it will pay a dividend of US$0.06 per share on the 1st of...

Shareholder Returns

	BANC	US Banks	US Market
7D	2.2%	3.9%	1.0%
1Y	6.2%	-15.0%	-15.1%

Return vs Industry: BANC exceeded the US Banks industry which returned -15.5% over the past year.

Return vs Market: BANC exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is BANC's price volatile compared to industry and market?
BANC volatility
BANC Average Weekly Movement	5.0%
Banks Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: BANC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BANC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1941	670	Jared Wolff	https://bancofcal.com

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 products, including checking, savings, money market, retirement, and interest-bearing and noninterest-bearing demand accounts, as well as certificate of deposits. It also provides various commercial and consumer loan products, such as commercial and industrial loans; commercial real estate and multifamily loans; construction loans; single family residential mortgage loans; warehouse and indirect/direct leveraged lending; home equity lines of credit; small business administration loans; and other consumer loans.

Banc of California Fundamentals Summary

How do Banc of California's earnings and revenue compare to its market cap?
BANC fundamental statistics
Market Cap	US$1.13b
Earnings (TTM)	US$86.08m
Revenue (TTM)	US$320.02m

13.2x

P/E Ratio

1.2x

P/B Ratio

Is BANC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BANC income statement (TTM)
Revenue	US$320.02m
Cost of Revenue	US$0
Gross Profit	US$320.02m
Other Expenses	US$233.94m
Earnings	US$86.08m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.40
Gross Margin	100.00%
Net Profit Margin	26.90%
Debt/Equity Ratio	104.4%

How did BANC perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

16%

Payout Ratio

Does BANC pay a reliable dividends?

See BANC dividend history and benchmarks

When do you need to buy BANC by to receive an upcoming dividend?
Banc of California dividend dates
Ex Dividend Date	Jun 14 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	18 days
Days until Dividend pay date	35 days

Does BANC pay a reliable dividends?

See BANC dividend history and benchmarks

Valuation

Is Banc of California undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BANC ($18.44) is trading below our estimate of fair value ($40.61)

Significantly Below Fair Value: BANC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BANC is poor value based on its Price-To-Earnings Ratio (13.2x) compared to the US Banks industry average (9.7x).

PE vs Market: BANC is good value based on its Price-To-Earnings Ratio (13.2x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: BANC is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: BANC's Price-To-Book Ratio (1.2x) is in line with the US Banks industry average.

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANC's forecast earnings growth (4.5% per year) is above the savings rate (1.9%).

Earnings vs Market: BANC's earnings (4.5% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: BANC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BANC's revenue (9.4% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: BANC's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BANC's Return on Equity is forecast to be low in 3 years time (11.3%).

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BANC has high quality earnings.

Growing Profit Margin: BANC's current net profit margins (26.9%) are higher than last year (7%).

Past Earnings Growth Analysis

Earnings Trend: BANC's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: BANC's earnings growth over the past year (424.4%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: BANC earnings growth over the past year (424.4%) exceeded the Banks industry 20.8%.

Return on Equity

High ROE: BANC's Return on Equity (9.9%) is considered low.

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BANC's Assets to Equity ratio (9.8x) is low.

Allowance for Bad Loans: BANC has a sufficient allowance for bad loans (171%).

Low Risk Liabilities: 87% of BANC's liabilities are made up of primarily low risk sources of funding.

Loan Level: BANC has an appropriate level of Loans to Assets ratio (77%).

Low Risk Deposits: BANC's Loans to Deposits ratio (98%) is appropriate.

Level of Bad Loans: BANC has an appropriate level of bad loans (0.7%).

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.30%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BANC's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: BANC's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

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

Earnings Coverage: With its low payout ratio (15.6%), BANC's dividend payments are well covered by earnings.

Future Payout to Shareholders

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

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Jared Wolff (51 yo)

3.17yrs

Tenure

US$2,703,890

Compensation

Mr. Jared M. Wolff is President and Chief Executive Officer of Banc of California, Inc. and director since March 18, 2019 and joined it in 2019. Mr. Wolff also serves as Chairman of the Board of Banc of Ca...

CEO Compensation Analysis

Compensation vs Market: Jared's total compensation ($USD2.70M) is below average for companies of similar size in the US market ($USD3.95M).

Compensation vs Earnings: Jared's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BANC's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: BANC's board of directors are considered experienced (3.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31