Banc of California, Inc. reported its financial results for the second quarter of 2025, revealing a net earnings of $28.4 million, or $0.12 per diluted share, a decrease from $53.6 million, or $0.26 per diluted share, in the previous quarter. The company’s total revenue for the quarter was $272.8 million, reflecting a 3% increase from the first quarter, driven by solid loan growth and effective expense management. However, the provision for credit losses surged to $39.1 million, significantly higher than the $9.3 million recorded in the first quarter, primarily due to a strategic loan sale process that involved transferring $506.7 million of loans to held for sale.
In terms of operational metrics, total loans and leases held for investment increased by $464.2 million to $24.2 billion as of June 30, 2025, compared to $23.8 billion at the end of 2024. This growth was attributed to increases in various loan categories, including venture capital and asset-based loans. The company also reported a total deposit increase of $336.5 million, reaching $27.5 billion, with interest-bearing deposits rising by 2%. The net interest margin improved slightly to 3.10%, up 2 basis points from the previous quarter, supported by a higher average yield on loans.
Banc of California's strategic initiatives included the commencement of a loan sale process, which resulted in the recognition of charge-offs totaling $36.9 million. The company’s credit quality metrics showed improvement, with nonperforming loans decreasing to $167.5 million from $189.6 million at the end of 2024. The allowance for credit losses stood at $229.3 million, down from $239.4 million in the previous quarter, reflecting the impact of the loan sales and charge-offs.
Looking ahead, Banc of California remains focused on maintaining strong capital ratios, with a Tier 1 capital ratio of 12.34% and a common equity tier 1 capital ratio of 9.95%, both well above regulatory requirements. The company has also authorized a stock repurchase program of up to $300 million, with $150 million remaining as of June 30, 2025. Management anticipates continued growth in its loan portfolio and is committed to prudent risk management practices to navigate potential economic challenges.
About BANC OF CALIFORNIA, INC.
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