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.

Rewards

Earnings are forecast to grow 104.83% per year

Risk Analysis

No risks detected for BANC from our risk checks.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

BANC

-0.3%

US Banks

1.7%

US Market


1 Year Return

15.3%

BANC

15.3%

US Banks

23.2%

US Market

Return vs Industry: BANC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: BANC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BANCIndustryMarket
7 Day2.2%-0.3%1.7%
30 Day1.2%-2.0%4.2%
90 Day17.2%9.1%11.9%
1 Year17.7%15.3%18.6%15.3%25.8%23.2%
3 Year15.7%7.4%34.3%24.8%52.8%42.9%
5 Year91.5%66.6%85.7%64.8%75.2%55.8%

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?

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BANC ($17.1) is trading above our estimate of fair value ($7.77)

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 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 (1.2x) compared to the US Banks industry average (1.2x).


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?

104.8%

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 (1.7%).

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 (4.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BANC's revenue (4.6% 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 (6.1%).


Next Steps

Past Performance

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

-12.4%

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 -12.4% 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 (27.1%).


Return on Equity

High ROE: BANC has a negative Return on Equity (2.25%), as it is currently unprofitable.


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 0.5x 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 (0.71%)


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: BANC's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: BANC's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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

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 (26.5% payout ratio).


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?

1.7yrs

Average management tenure


CEO

Jared Wolff (49yo)

0.8yrs

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

1.7yrs

Average Tenure

51yo

Average Age

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


Board Age and Tenure

2.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BANC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$177,34018 Dec 19
James Barker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,820
Max PriceUS$16.39
BuyUS$250,50803 Dec 19
Jared Wolff
EntityIndividual
Role
Chief Executive Officer
President
Shares16,500
Max PriceUS$15.18

Ownership Breakdown

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


Management Team

  • Lynn Hopkins (51yo)

    CFO & Executive VP

    • Tenure: 0.08yrs
  • Jared Wolff (49yo)

    President

    • Tenure: 0.8yrs
  • Kris Gagnon (67yo)

    Executive VP & Chief Credit Officer

    • Tenure: 1.9yrs
    • Compensation: US$903.25k
  • Mike Smith (52yo)

    Chief Accounting Officer

    • Tenure: 1.3yrs
  • Diane Summers

    • Tenure: 1.9yrs
  • Doug Rosenthal

    Senior VP & Relationship Manager

    • Tenure: 1.8yrs
  • Jay Sanders

    President of Private & Specialty Banking

    • Tenure: 3.3yrs
  • Joubin Rahimi

    Senior Vice President of Private Banking

    • Tenure: 1.8yrs
  • Jim Hazboun

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.7yrs
  • Ido Dotan (39yo)

    Executive VP

    • Tenure: 0.7yrs

Board Members

  • Bonnie Hill (78yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$190.00k
  • Walter Wycoff (61yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$199.39k
  • Bob Sznewajs (72yo)

    Independent Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$291.97k
  • Jonah Schnel (46yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$212.84k
  • Rich Lashley (60yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$210.00k
  • Jared Wolff (49yo)

    President

    • Tenure: 0.8yrs
  • Mary Curran (62yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$197.51k
  • Conan Barker

    Director

    • Tenure: 0.2yrs
  • Barbara Fallon-Walsh (66yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$102.93k
  • Andrew Thau

    Director

    • Tenure: 0.2yrs

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$882.329m
  • 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 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 Analysis2020/01/17 01:38
End of Day Share Price2020/01/16 00:00
Earnings2019/09/30
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.