Banc of California (BANC): Assessing Valuation After Strong Q3 Earnings Beat and Buyback Completion

Banc of California (BANC) grabbed investor attention after reporting third-quarter results that topped expectations on both earnings and revenue. The bank also finalized a large buyback program and maintained strong credit quality metrics.

See our latest analysis for Banc of California.

Banc of California’s third-quarter results didn’t just turn heads; they appeared to energize the market. The company’s robust earnings recovery, completion of a new share buyback, and recent plans to expand its downtown Los Angeles presence coincided with momentum in the stock. The 1-year total shareholder return stands at 14.6%, and the 90-day share price return reached 12.4%, suggesting renewed investor optimism around future prospects.

If this streak of positive momentum has you searching for what else is catching investors’ attention, now is the perfect time to discover fast growing stocks with high insider ownership

With shares still trading below many analysts’ price targets and a robust earnings rebound just posted, the question for investors is clear: Is Banc of California undervalued, or has the market already priced in this growth?

Most Popular Narrative: 12.7% Undervalued

With the most recent fair value estimate at $19.45, shares trading at $16.98 indicate that Banc of California may still have meaningful upside, especially given solid earnings momentum. This valuation is anchored in detailed projections about profitability and operational improvements that set the stock apart from the broader bank sector.

The successful merger integration with Pacific Western Bank is unlocking cost synergies, revenue cross-sell opportunities, and scale benefits, which are already contributing to tangible book value expansion and margin improvement. These factors are also likely to further boost future profitability.

Read the complete narrative.

Are you curious which single financial transformation could send profits soaring? Only one core operating shift sits behind this impressive fair value calculation. Uncover the narrative’s bolder forecasts by reading on to discover the key numbers analysts believe set Banc of California apart from the crowd.

Result: Fair Value of $19.45 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, as slower than expected loan or deposit growth and lingering integration costs could limit the upside for Banc of California shares.

Find out about the key risks to this Banc of California narrative.

Another View: Looking at Market Comparisons

While the fair value approach suggests Banc of California is undervalued, comparing its price-to-earnings ratio tells a more mixed story. The stock trades at 15.6x earnings, higher than the sector average of 11.2x but just below its fair ratio of 16.3x. This suggests valuation risk if sector sentiment weakens, or opportunity if multiples revert higher. Could the market be too optimistic, or is there room to run?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Banc of California Narrative

If you’re inspired to dig deeper or have a different view of Banc of California’s story, crafting a data-driven narrative takes just a few minutes. Do it your way

A great starting point for your Banc of California research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready for Smarter Investment Moves?

Don't miss your chance to get ahead. Simply Wall Street’s custom stock screeners reveal ideas you may have overlooked but could reshape your portfolio's potential. Check them out now:

• Boost your returns by tapping into the potential of steady yield opportunities using these 17 dividend stocks with yields > 3% for stocks with attractive payouts and robust fundamentals.
• Catch the momentum behind emerging tech trends by starting with these 27 AI penny stocks and see which companies are redefining industries with artificial intelligence.
• Uncover hidden gems trading below fair value by using these 877 undervalued stocks based on cash flows and position yourself ahead of the market.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com