Banc of California, Inc. reported a significant increase in its financial performance for the third quarter of 2025, with net earnings available to common and equivalent stockholders reaching $69.6 million, or $0.38 per diluted share. This marks a substantial rise from the $28.4 million, or $0.12 per diluted share, reported in the previous quarter. The company's total revenue for the quarter was $287.7 million, reflecting a 5% increase from the prior quarter, driven by strong net interest income growth and margin expansion. Net interest income rose to $253.4 million, up from $240.2 million in the second quarter, primarily due to higher yields on loans and leases.
In comparison to the same period last year, Banc of California's net earnings for the nine months ended September 30, 2025, totaled $151.6 million, a notable increase from $70.0 million in 2024. The increase in net interest income for the nine-month period was attributed to a decrease in interest expenses on deposits and borrowings, alongside a rise in interest income from investment securities. The net interest margin improved to 3.13%, up 34 basis points year-over-year, indicating effective management of interest rate risk and funding costs.
Operationally, the company has made strategic moves, including the initiation of a loan sale process that involved transferring approximately $506.7 million of loans to held for sale. As of September 30, 2025, the company liquidated $263.5 million of these loans, with $180.9 million remaining to be sold. The allowance for credit losses increased to $270.7 million, or 1.12% of total loans and leases, reflecting proactive measures in response to credit quality assessments.
Banc of California's total assets grew to $34.0 billion, up from $33.5 billion at the end of 2024, with total loans and leases held for investment increasing to $24.1 billion. The company maintained a strong capital position, with a Tier 1 capital ratio of 12.56% and a common equity tier 1 capital ratio of 10.14%, both well above regulatory requirements. Looking ahead, the company remains focused on enhancing its core deposit base and managing its interest rate risk effectively, while continuing to monitor economic conditions that may impact its operations.
About BANC OF CALIFORNIA, INC.
Banc of California, Inc. is a relationship-focused commercial bank serving small to middle-market and venture-backed businesses. It offers diverse loan and deposit products, treasury management, and payment processing services through its subsidiaries. Operating primarily in California, Colorado, and North Carolina, the bank emphasizes personalized service, flexible financing solutions, and technology-driven platforms to support business clients, homeowner associations, and community associations nationwide. Its business model centers on strong client relationships and tailored financial services.
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