Shares of financial holding company Banc of California, Inc. (BANC) gained 2.7% to close at $16.94 on Thursday after the company reported better-than-expected second-quarter financial results. The bank operates more than 30 branches across Southern California.
Earnings per share (EPS) stood at $0.35, beating the Street’s estimates of $0.28. Total revenue amounted to $64 million, surpassing analysts’ expectations of $58.95 million.
Net interest income increased $1.9 million quarter-over-quarter to $59.8 million, while noninterest income declined $211 thousand to $4.2 million. (See Banc of California stock chart on TipRanks)
The President and CEO of Banc of California, Jared Wolff, said, “We believe that we are well-positioned to deliver continued organic balance sheet growth and even greater profitability in the second half of the year, barring any setbacks to the economic recovery. We will also benefit from the significant earnings accretion that we expect from the Pacific Mercantile Bancorp acquisition, which we anticipate to close during the third quarter. We now have visibility on cost savings of at least 40%, with substantially all of the savings expected to be realized by the end of this year.”
On July 7, Stephens analyst Andrew Terrell initiated coverage on the stock with a Hold rating and a price target of $19 (12.2% upside potential). The analyst said, “The company has taken impressive steps over the past several years in improving the balance sheet and the profitability of the franchise.”
Overall, the stock has a Moderate Buy consensus based on 1 Buy and 2 Holds. The average Banc of California price target of $20 implies 18.1% upside potential. Shares have gained 54.6% over the past year.
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