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 Analysis

Flawless balance sheet with reasonable 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

Stable Share Price: BANC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.8%

BANC

-14.6%

US Banks

-11.2%

US Market


1 Year Return

-12.4%

BANC

-6.1%

US Banks

4.1%

US Market

Return vs Industry: BANC underperformed the US Banks industry which returned -3.1% over the past year.

Return vs Market: BANC underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

BANCIndustryMarket
7 Day-9.8%-14.6%-11.2%
30 Day-6.3%-14.0%-9.5%
90 Day-0.2%-15.3%-5.4%
1 Year-10.5%-12.4%-3.4%-6.1%6.2%4.1%
3 Year-18.6%-24.5%3.9%-3.5%30.3%21.9%
5 Year52.6%32.7%47.6%31.0%55.0%38.0%

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 compared to its fair value and its price relative to the market?

295.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BANC ($16.14) is trading above our estimate of fair value ($7.57)

Significantly Below Fair Value: BANC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BANC is poor value based on its PE Ratio (311.4x) compared to the Banks industry average (11.9x).

PE vs Market: BANC is poor value based on its PE Ratio (311.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: BANC is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: BANC is overvalued based on its PB Ratio (1.1x) compared to the US Banks industry average (1.1x).


Next Steps

Future Growth

How is Banc of California forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

76.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANC's forecast earnings growth (76.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BANC's earnings (76.5% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: BANC's revenue (11.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BANC's revenue (11.2% 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 (5.4%).


Next Steps

Past Performance

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

-20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BANC has a large one-off gain of $5.3M impacting its December 31 2019 financial results.

Growing Profit Margin: BANC's current net profit margins (1.2%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: BANC's earnings have declined by -20.3% 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 (-86.6%) over the past year, making it difficult to compare to the Banks industry average (11.9%).


Return on Equity

High ROE: BANC's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


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 0.3x 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 (0.73%)


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Banc of California before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%4.1%industryaverage3.3%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: BANC's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: BANC's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (598.1%), BANC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BANC's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Jared Wolff (49yo)

0.9yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jared Wolff
President0.9yrsno data0.32% $2.7m
Lynn Hopkins
CFO & Executive VP0.2yrsno datano data
Michael Smith
Chief Accounting Officer1.4yrsno data0.0090% $74.3k
Ido Dotan
Executive VP0.8yrsno datano data
Jim Hazboun
Executive VP & Chief Human Resources Officer1.8yrsno datano data
Jay Sanders
President of Private & Specialty Banking3.3yrsno datano data
Joubin Rahimi
Senior Vice President of Private Banking1.9yrsno datano data
Douglas Rosenthal
Senior VP & Relationship Manager1.8yrsno datano data
Lynn Sullivan
Executive VP0.8yrsno datano data
Robert Dyck
Executive VP & Chief Credit Officer0.08yrsno datano data

1.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: BANC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jared Wolff
President0.9yrsno data0.32% $2.7m
Bonnie Hill
Independent Director2.7yrsUS$190.00k0.020% $166.5k
Walter Wycoff
Independent Director2.9yrsUS$199.39k0.14% $1.1m
Robert Sznewajs
Independent Chairman of the Board3.1yrsUS$291.97k0.074% $611.6k
Jonah Schnel
Independent Director6.8yrsUS$212.84k0.096% $792.1k
Richard Lashley
Independent Director2.9yrsUS$210.00k0.060% $489.1k
Mary Curran
Independent Director2.7yrsUS$197.51k0.023% $191.1k
James Barker
Director0.3yrsno data0.028% $229.6k
Barbara Fallon-Walsh
Independent Director1.4yrsUS$102.93k0.0072% $59.1k
Andrew Thau
Director0.3yrsno data0.00014% $1.1k

2.7yrs

Average Tenure

61.5yo

Average Age

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


Ownership

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


Insider Trading Volume

Insider Buying: BANC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$821.381m
  • Shares outstanding: 50.89m
  • 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 products, including checking, savings, money market, retirement, and interest and noninterest-bearing demand accounts, as well as certificates of deposit. It also provides various commercial and consumer loan products, such as commercial and industrial loans; commercial real estate loans; multifamily loans; construction and renovation loans; single family residential mortgage loans; warehouse loans; asset, insurance, or security-backed loans; home equity lines of credit; consumer and business lines of credit; small business administration loans; and other consumer loans. In addition, the company offers automated bill payment, cash and treasury management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and Internet banking services; and master demand accounts, interest rate swaps, and safe deposit boxes. As of December 31, 2018, it operated 32 full service branches in San Diego, Orange, Santa Barbara, and Los Angeles counties in California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 01:18
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.