Banc of California, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $53.6 million, or $0.26 per diluted share, compared to $56.9 million, or $0.28 per diluted share, in the previous quarter. This marks a significant increase from the $30.9 million, or $0.12 per diluted share, reported in the same quarter of the previous year. The company's total interest income for the quarter was $406.7 million, down from $424.5 million in the fourth quarter of 2024, primarily due to a decrease in interest income from loans and deposits.
Total loans and leases held for investment increased by $344.9 million to $24.1 billion, driven by growth in commercial and industrial loans, particularly in lender finance and equity fund loans. New loan originations totaled $2.6 billion, with a weighted average interest rate of 7.20%. The company also repurchased $38.5 million of its common stock during the quarter, part of a broader $150 million stock repurchase program announced in March 2025. The net interest margin improved to 3.08%, up from 3.04% in the previous quarter, reflecting a decrease in the average cost of deposits.
Banc of California's total assets rose to $33.8 billion, an increase of $237.1 million from the end of 2024. The company reported a slight increase in total deposits, which remained stable at $27.2 billion. Noninterest-bearing deposits accounted for 28% of total deposits, consistent with the previous quarter. The allowance for credit losses decreased to $235 million, reflecting a provision of $9.7 million for the quarter, offset by net charge-offs of $14.1 million.
The company continues to maintain strong capital ratios, with a Tier 1 capital ratio of 12.86% and a common equity Tier 1 capital ratio of 10.45%, both well above regulatory requirements. Looking ahead, Banc of California remains focused on managing its liquidity and credit quality while navigating the current economic environment, which includes potential risks related to interest rates and market conditions. The company is committed to its strategy of growing its core deposit base and enhancing its loan portfolio while maintaining a strong capital position.
About BANC OF CALIFORNIA, INC.
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