Banc of California reports Q1 adjusted EPS 19c, consensus 22c

Reports Q1 loan loss provision $10M from $3M last year. Tangible book value per share increased to $15.07 compared to $14.96 at December 31, 2023. Tier 1 leverage ratio of 9.14% at March 31, 2024 vs. 8.33% at March 31,2023. CEO Jared Wolff commented, “Our first full quarter results as a combined company reflect strong execution on the key initiatives that will lead to achieving the profitability targets we set for Q4 2024. We began to realize the benefits of the balance sheet repositioning following the closing of the merger and generated a significantly higher level of net interest income and significantly lower operating expenses. Our deposit gathering engine generated an increase in noninterest-bearing deposits during the first quarter, which contributed to a lower average cost of deposits and the expansion in our net interest margin. We are positioned with a strong balance sheet that has good levels of capital, liquidity, and loan loss reserves, and a stable loan portfolio. While remaining disciplined and conservative in new loan originations, core loans grew 4% annualized in the quarter, offset by runoff in our discontinued portfolio. We are benefitting from our market position, seeing good opportunities to bring over new banking relationships that provide both operating deposit accounts and high-quality loans. We remain on track with our initiatives to reduce both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets.”