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Banc of California Inc. (DE:FPB)
FRANKFURT:FPB
Germany Market
EarningsQ2 2026 Earnings Report

Banc of California (FPB) Q2 2026 Earnings Report

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DE:FPB Q2 2026 EPS Results

Actual EPS-€1.44
Consensus EPS€0.35
Beat/MissMissed by -€1.79
One Year Ago EPS€0.11

DE:FPB Q2 2026 Revenue Results

Actual Revenue€161.10M
Expected Revenue€263.57M
Beat/MissMissed by -€102.47M
YoY Revenue Growth-60.17%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
DE:FPB Upcoming Earnings
Banc of California's next earnings date is estimated for October 27, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

DE:FPB Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call describes a quarter of strategic balance-sheet repositioning that produced meaningful long-term benefits (276 bps yield pickup on redeployed securities, clearer funding cost pathway, improved credit metrics, strong loan and deposit growth) but generated large one-time accounting losses and elevated provisioning in the reported quarter. Management presented clear targets (NIM ~3.30%+ in Q3, Q4 pretax pre-provision income of $125M–$130M, CET1 trajectory to >10% by early 2027), emphasized that the adverse reported results are largely nonrecurring, and highlighted quick tangible book earn-back (≈1.4 years). Given the strategic rationale, improved recurring NII prospects, and material improvements in credit metrics and capital outlook outweighing the one-time reported hits, overall tone is constructive.
Company Guidance
Management guided that after closing the targeted ~$825M loan sale and fully reinvesting the proceeds from the $2.3B securities repositioning (securities sold at ~2.1% yield, $1.7B reinvested at a 4.87% weighted yield — a 276 bp pickup, ~$100M left to invest), they expect net interest margin to be around 3.30% on a go‑forward basis with year‑end NIM guidance of 3.30%–3.40% and further expansion in H2; Q4 pretax, pre‑provision income is targeted at $125M–$130M, ROTCE is targeted roughly 11.5%–12.5% by year‑end, and loan growth is expected in the mid‑single digits (Q2: 9% annualized, $2.8B new production) with deposits running ~12% annualized and cumulative new noninterest‑bearing deposits of ~$1.2B. They expect capital to build to ~9.5%–9.6% CET1 in Q3, ~9.8%–9.9% by year‑end and above 10% in early 2027 (CET1 was 9.25% at 6/30), with a possible ~60 bp uplift from regulatory reform and a tangible‑book earn‑back of ~1.4 years; management also highlighted improving credit metrics (special mention loans -56%, classified loans -31%, delinquents -50%), an ACL ratio of 1.14%, a normalized provision run‑rate of roughly $9M–$12M/quarter, and Q2 cost of deposits/cost of funds of 1.80% and 2.14%.
Strong Loan and Deposit Growth
9% annualized loan growth and 12% annualized deposit growth in the quarter; $2.8 billion of loan production; company guiding to mid-single-digit loan growth for the year and indicating it may outpace that target.
Securities Repositioning and Yield Pickup
Sold $2.3 billion of lower-yielding held-to-maturity securities and redeployed $1.7 billion to date at a weighted average yield of 4.87%, representing a 276 basis point yield pickup versus the sold securities (average yield ~2.1%); securities portfolio duration reduced from 5 to 4 years and risk weighting lowered from 19.5% to 9.5%.
Net Interest Margin Outlook and Early Improvement
Reported NIM was 3.13% (down 11 bps QoQ, with ~7 bps due to nonaccrual interest). Management expects NIM to be ~3.30% after loan sale close and full reinvestment and to expand further in H2; year-end NIM target 3.30%–3.40%.
Recurring Net Interest Income and Loan Production Pricing
New production pricing remained attractive at 6.39%, supporting portfolio remix to higher-return loans; average loan yield (excluding nonaccrual impact) trending higher with production helping boost future recurring NII.
Credit Metrics Improved Meaningfully Quarter-over-Quarter
Special mention loans declined 56%, classified loans declined 31%, and delinquent loans declined 50% QoQ; nonperforming loan reduction expected further when one sold loan (~$34M) clears off the books.
Capital Build and CET1 Guidance
CET1 was 9.25% at June 30 and is expected to rise to ~9.5%–9.6% in Q3, ~9.8%–9.9% by year-end and above 10% in early 2027 (assuming no regulatory capital reform); targeted loan sale alone should add ~30 bps to CET1.
Accelerated Organic Capital Generation and TBV Earn-Back
Management expects tangible book value earn-back from the repositioning to be short (~1.4 years) given the large yield pickup and redeployment; retirement of $385M subordinated debt reduces future funding costs and supports capital generation.
Stable Core Noninterest Income and Expense Discipline
Excluding one-time items, noninterest income was $35.2M (roughly consistent with prior quarters and ~ $11M–$12M/month run rate); management expects operating leverage to strengthen and expense levels to be flat-to-down in H2 versus Q2, coming in well below the earlier 3% FY guidance.

DE:FPB Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 27, 2026
2026 (Q3)
0.40 / -
0.339―
2026 (Q2)
0.35 / -1.44
0.107-1441.67% (-1.54)
2026 (Q1)
0.34 / 0.35
0.23250.00% (+0.12)
2025 (Q4)
0.33 / 0.37
0.2550.00% (+0.12)
2025 (Q3)
0.29 / 0.34
-0.0093900.00% (+0.35)
2025 (Q2)
0.23 / 0.11
0.1070.00% (0.00)
2025 (Q1)
0.21 / 0.23
0.15252.94% (+0.08)
2024 (Q4)
0.21 / 0.25
-4.061106.15% (+4.31)
2024 (Q3)
0.13 / >-0.01
0.66-101.35% (-0.67)
2024 (Q2)
0.17 / 0.11
0.277-61.29% (-0.17)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed