Highlights

  • Q3 2026 net earnings available to common stockholders were $73.1 million, or $0.46 per diluted share, versus $0.38 in 2025.
  • The second quarter net loss available to common stockholders was $251.3 million, reflecting the previously announced strategic balance sheet repositioning.
  • Net interest income was $272.4 million, net interest margin was 3.34%, and estimated CET1 capital ratio was 9.70%.
  • The bank sold approximately $525 million of targeted loans in the third quarter and $235 million on October 21, 2026.

Banc of California (NYSE:BANC) shares were trading at USD 18.26 on October 28, 2026, up 0.11%, with a relative volume at time of 3.46. The Los Angeles-based bank holding company reported third quarter 2026 results on October 27, 2026, including effects of its second quarter balance sheet repositioning and loan sales.

Banc of California, Inc. is a Maryland corporation and a bank holding company, with Banc of California as its wholly owned subsidiary. The company describes itself as a relationship-based business bank serving small, middle-market and venture-backed businesses, with a Private Banking division for individuals and families. It operates 76 full-service branches in California and in Denver, Colorado, and Durham, North Carolina, along with regional offices nationwide. The company reported assets of over $34 billion.

Third Quarter 2026 Results

Banc of California reported net earnings available to common and equivalent stockholders of $73.1 million, or $0.46 per diluted common share, for the quarter ended September 30, 2026. That compares with $59.7 million, or $0.38 per diluted common share, for the third quarter of 2025. For the second quarter of 2026, it reported a net loss available to common and equivalent stockholders of $251.3 million, or $(1.61) per diluted common share.

Total revenue was $303.8 million, and pre-tax pre-provision income, a non-GAAP measure, was $118.4 million. Noninterest expense was $185.4 million. Net interest income was $272,442 thousand, compared with $250,501 thousand in the second quarter, and net interest margin was 3.34%, compared with 3.13%. The provision for credit losses was $10,400 thousand, compared with $161,780 thousand in the second quarter and $9,700 thousand a year earlier. Loss on loans and leases held for sale was $4,199 thousand.

For the nine months ended September 30, 2026, the provision for credit losses was $181,980 thousand, compared with $58,100 thousand.

Balance Sheet, Credit Quality and Capital

Total assets were $34,965,495 thousand at September 30, 2026, and total deposits were $28,260,309 thousand. Loans and leases held for investment increased $379.7 million, with $2.6 billion of loan production and disbursements at a weighted average rate of 6.58%.

Nonperforming loans and leases were $177.2 million, compared with $203.7 million at June 30, 2026. Nonperforming assets were $198.7 million, or 0.57% of total assets. Nonperforming and classified loans and leases as a percentage of loans and leases held for investment declined by 12 basis points and 35 basis points, respectively.

Estimated capital ratios, which are preliminary, were a Tier 1 capital ratio of 12.10% and a CET1 capital ratio of 9.70%, up 43 and 45 basis points from the prior quarter.

Loan Sales and Repositioning

During the second quarter of 2026, the company entered into targeted loan sales relating to $827 million of commercial real estate and construction loans. Approximately $525 million were sold during the third quarter, and $235 million were sold on October 21, 2026. A further $65 million were removed before sale after construction was completed and the loan converted to permanent financing. The company anticipates selling its remaining held for sale loan portfolio over the next several quarters.

Chairman and Chief Executive Officer Jared Wolff said the company expects further improvement in profitability in the fourth quarter as it realizes a full quarter of earnings from its securities reinvestment and additional benefits from the completed loan sales.

Updated 2026 Outlook

The investor presentation gave an updated outlook. For the fourth quarter of 2026, the company guides to pre-tax pre-provision income of $125-$130 million, net interest margin of 3.35%-3.40% (originally 3.30%-3.40%) and CET1 of 9.8%-9.9%. It anticipates achieving CET1 of 10.0%+ in the first quarter of 2027.

For full-year 2026, the company revised its noninterest expense growth guidance to approximately 1.0%, from an original 3.0%-3.5%.