NYSE:BANC

Stock Analysis Report

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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. More Details


Snowflake Analysis

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

Stable Share Price: BANC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: BANC's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

BANC

-0.3%

US Banks

0.7%

US Market


1 Year Return

-11.1%

BANC

-16.2%

US Banks

22.2%

US Market

Return vs Industry: BANC exceeded the US Banks industry which returned -16.6% over the past year.

Return vs Market: BANC underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

BANCIndustryMarket
7 Day-0.9%-0.3%0.7%
30 Day12.4%20.3%11.8%
90 Day15.2%19.7%8.6%
1 Year-9.3%-11.1%-13.1%-16.2%25.0%22.2%
3 Year-29.6%-34.5%-3.8%-11.8%49.4%39.5%
5 Year13.1%-0.4%42.5%24.8%100.2%78.1%

Long-Term 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?

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BANC ($14.11) is trading above our estimate of fair value ($4.71)

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


Price To Earnings Ratio

PE vs Industry: BANC is unprofitable, so we can't compare its PE Ratio to the US Banks industry average.

PE vs Market: BANC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BANC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BANC is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.9x).


Next Steps

Future Growth

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

110.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: BANC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BANC's is expected to become profitable in the next 3 years.

Revenue vs Market: BANC's revenue (6.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BANC's revenue (6.7% 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 (6.4%).


Next Steps

Past Performance

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

-45.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BANC is currently unprofitable.

Growing Profit Margin: BANC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BANC is unprofitable, and losses have increased over the past 5 years at a rate of 45.4% per year.

Accelerating Growth: Unable to compare BANC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BANC is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-4.1%).


Return on Equity

High ROE: BANC has a negative Return on Equity (0.59%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: BANC's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: BANC has a sufficient allowance for bad loans (136%).

Low Risk Liabilities: 88% 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 (72%).

Low Risk Deposits: BANC's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: BANC has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BANC's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: BANC's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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: BANC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BANC's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jared Wolff (50 yo)

1.75yrs

Tenure

US$5,058,275

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Jared's total compensation ($USD5.06M) is above average for companies of similar size in the US market ($USD2.60M).

Compensation vs Earnings: Insufficient data to compare Jared's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jared Wolff
President1.75yrsUS$5.06m0.33%
$ 2.3m
Lynn Hopkins
CFO & Executive VP1yrUS$431.59kno data
Michael Smith
Senior VP2.25yrsUS$561.46k0.0062%
$ 43.1k
Lynn Sullivan
Executive VP & Chief Risk Officer1.58yrsUS$1.06m0.019%
$ 129.6k
Ido Dotan
Executive VP1.58yrsUS$673.63kno data
Jay Sanders
President of Private & Specialty Banking4.17yrsno datano data
Joubin Rahimi
Senior Vice President of Private Banking2.75yrsno datano data
Douglas Rosenthal
Senior VP & Relationship Manager2.67yrsno datano data
Christine Martin
Executive Vice President of Treasury Management1.33yrsno datano data
Robert Dyck
Executive VP & Chief Credit Officer0.92yrno datano data
Hamid Hussain
President of Real Estate & Commercial Bankingno datano datano data
John Sotoodeh
President of Community & Business Bankingno datano datano data

1.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: BANC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jared Wolff
President1.75yrsUS$5.06m0.33%
$ 2.3m
Bonnie Hill
Independent Director3.5yrsUS$163.86k0.021%
$ 142.0k
Walter Wycoff
Independent Director3.83yrsUS$165.45k0.14%
$ 963.8k
Robert Sznewajs
Independent Chairman of the Board3.92yrsUS$246.85k0.10%
$ 722.5k
Jonah Schnel
Independent Director7.67yrsUS$170.65k0.098%
$ 675.3k
Richard Lashley
Independent Director3.83yrsUS$176.56k0.060%
$ 416.9k
Mary Curran
Independent Director3.5yrsUS$171.81k0.045%
$ 311.8k
Marjorie Bowen
Director Nomineeno datano datano data
James Barker
Independent Director1.08yrsUS$61.71k0.072%
$ 498.3k
Barbara Fallon-Walsh
Independent Director2.25yrsUS$167.90k0.0074%
$ 50.9k
Andrew Thau
Independent Director1.08yrsUS$60.76k0.00014%
$ 967.8

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: BANC's board of directors are considered experienced (3.5 years average tenure).


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$691.306m
  • Shares outstanding: 50.24m
  • Website: https://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 Analysis2020/12/02 23:02
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
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.