Banc of California (BANC) Misses Q1 EPS by 15c

Banc of California (NYSE: BANC) reported Q1 EPS of $0.23, $0.15 worse than the analyst estimate of $0.38.

• Completed the sale of our Banc Home Loans mortgage banking division and sold $38 million of mortgage servicing rights on $3.9 billion in unpaid balances to Caliber Home Loans, thereby lowering volatile gain on sale revenues and furthering our transition to a commercial bank.
• Increased commercial loan balances by $187 million, or 5%, from the prior quarter, and by $933 million, or 30%, from a year ago. Commercial loans now represent 66% of total loans held for investment, up from 56% a year ago.
• Held for investment loan balances increased by $71 million, or 1%, during the quarter to $6.1 billion. The Company transferred $242 million of residential mortgage and multi-family loans to held-for-sale, which were subsequently sold during the quarter. Excluding these transfers, held for investment loan balances increased by $313 million, or 5%, from the prior quarter.
• Net interest margin expanded to 3.19% for the first quarter, an increase of 6 bps compared to the prior quarter.
• Asset quality remained strong as nonperforming assets to total assets totaled just 0.18%.
• Common equity tier 1 capital ratio was flat from the prior quarter at 9.4%.
• On April 27, the Board announced the hiring of Doug Bowers as President and Chief Executive Officer, effective on May 8.

For earnings history and earnings-related data on Banc of California (BANC) click here.

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