10-Q · May 8, 2026
Banc of California reported Q1 2026 diluted EPS of $0.39, slightly exceeding the $0.38 consensus estimate. Total revenue was $251.6 million, missing the expected $290.7 million due to a decrease in both net interest…
Earnings analysis · 10-Q
BANC earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Banc of California reported a sharply weaker Q2, with diluted EPS of $(1.61) versus $0.12 a year earlier and revenue of $250.51 million versus $453 million in 2025 Q2. Results were dominated by a $256.749 million…
Read full summary
Banc of California reported a sharply weaker Q2, with diluted EPS of $(1.61) versus $0.12 a year earlier and revenue of $250.51 million versus $453 million in 2025 Q2. Results were dominated by a $256.749 million securities loss, a $160.0 million credit-loss provision, and annualized net charge-offs of 2.54%. The balance-sheet repositioning improved primary liquidity and reduced criticized loans, but it also compressed capital ratios, increased secured borrowings, and left nonperforming assets at $220.0 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.61
What stood out
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Revenue and EPS deteriorated sharply
Reported revenue was $250.51 million, down from $453 million in 2025 Q2 and $443 million in 2026 Q1. Diluted EPS was $(1.61), versus $0.12 in 2025 Q2 and $0.39 in 2026 Q1.
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Securities repositioning completed
The balance-sheet repositioning eliminated the HTM portfolio: HTM securities declined by $2.309 billion to $0, while AFS securities increased by $2.030 billion to $4.484 billion at June 30, 2026.
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Deposits grew modestly
Total deposits increased $277.8 million to $28.121 billion from December 31, 2025, led by $229.8 million of higher interest-bearing checking and $218.7 million of higher money-market balances.
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Liquidity position strengthened
Primary liquidity increased $1.8 billion to $6.205 billion, or 17.7% of total assets, while total available liquidity was $14.1 billion at June 30, 2026.
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Commercial lending mix expanded
Commercial HFI loans increased $135.2 million to $9.112 billion, with lender finance up $393.7 million to $2.017 billion and equity fund loans up $184.2 million to $1.504 billion.
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Criticized loans decreased
Classified loans declined $217.5 million to $582.8 million and special-mention loans declined $158.1 million to $300.5 million, primarily reflecting the transfer of loans into the targeted HFS sale process.
What to watch
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Large securities repositioning loss
The company recorded a $256.749 million pre-tax loss on AFS securities in Q2 2026, and total noninterest income became a $234.096 million loss versus $35.328 million of income in Q1 2026.
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Credit costs and charge-offs spiked
Q2 provision for credit losses was $160.0 million, including a $162.0 million addition to the allowance for loan and lease losses. Annualized net charge-offs rose to 2.54% from 0.23% in Q1 2026.
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Nonperforming assets increased
Nonperforming loans increased $44.5 million to $203.7 million, while nonperforming assets rose to $220.0 million from $176.3 million at December 31, 2025.
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Loan-sale execution risk
The targeted sale process transferred $827.0 million of loans from HFI to HFS, which increased HFS loans to $915.2 million and generated a $12.544 million HFS loss in Q2.
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Capital ratios compressed
Consolidated CET1 declined to 9.25% from 10.01% at December 31, 2025, and total capital declined to 14.31% from 16.31%, reflecting the strategic balance-sheet actions.
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Greater reliance on secured funding
Secondary liquidity declined $1.9 billion to $7.905 billion, while borrowings increased $396.5 million to $2.460 billion, including $2.350 billion of FHLB advances.
Management's outlook
No explicit numeric revenue or EPS guidance is provided in the 10-Q. Management states that holding-company cash and anticipated future bank dividends are expected to fund cash-flow needs over the next 12 months; total available liquidity was $14.1 billion at June 30, 2026, versus $7.6 billion of uninsured and uncollateralized deposits.
Earlier filings 4
10-Q · November 10, 2025
Banc of California reported a strong quarter with diluted EPS of $0.38 and net earnings of $69,629 (thousands) for Q3 2025, driven by higher net interest income of $253,444 (thousands) and a rebound in noninterest…
10-Q · November 7, 2022
Q3 2022 results show NII-driven revenue growth and modest net income improvement but EPS declined. Net interest income rose materially year-over-year while the company moved a large portion of its securities portfolio…
10-Q · November 8, 2021
Banc of California reported a stronger quarter with net income of $23,170 (thousands) and diluted EPS of $0.42 for Q3 2021, up from $15,913 and $0.24 in Q3 2020. Net interest income rose to $62,976 (thousands) while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.