BANC OF CALIFORNIA, INC. has recently released its latest 10-Q report. Banc of California, Inc. is the Maryland-based holding company for Banc of California, a California state-chartered bank and Federal Reserve member founded in 1941 and headquartered in Los Angeles. The bank provides deposit products, real estate and commercial lending, consumer loans, treasury and payment services, and investment management through 77 branches in California plus locations in Denver and Durham, along with regional offices nationwide.
In Item 2, management said the six months ended June 30, 2026 were shaped by several balance-sheet moves. The company repositioned $2.3 billion of lower-yielding held-to-maturity securities, transferred $827.0 million of selected commercial real estate and multi-family construction loans from held-for-investment to held-for-sale, and redeemed $385.0 million of subordinated debt before a higher-rate reset.
The securities repositioning involved moving the $2.3 billion portfolio to available-for-sale, selling substantially all of the transferred securities, and redeploying part of the proceeds into higher-yielding, shorter-duration available-for-sale securities. The loan transfer was part of a targeted sale process, and the company said it entered into agreements in July 2026 to sell those loans.
The company also extended its $300 million stock repurchase program through March 16, 2027. During the first six months of 2026, it repurchased about 1.7 million shares of common and common equivalent stock for $31.9 million at a weighted-average price of $18.68 per share, leaving $82.6 million authorized for future repurchases as of June 30, 2026.
The quarter itself was marked by a sharp swing in profitability. Banc of California reported a net loss of $241.3 million for the three months ended June 30, 2026, compared with net earnings of $71.95 million in the prior quarter and $28.39 million a year earlier. For the first half of 2026, the company recorded a net loss of $169.4 million versus net earnings of $81.95 million in the first half of 2025.
On a non-GAAP basis, return on average tangible common equity was negative 36.18% for the second quarter of 2026, compared with 9.91% in the first quarter and 3.70% in the second quarter of 2025. For the six-month period, ROATCE was negative 13.30%, versus 5.59% a year earlier.
Capital metrics also moved lower. Stockholders’ equity stood at $3.41 billion at June 30, 2026, down from $3.54 billion at December 31, 2025. Tangible common equity was $2.60 billion, compared with $2.72 billion at year-end 2025, while tangible book value per common share fell to $16.44 from $17.51. Common and equivalent shares outstanding rose to 158.43 million from 155.53 million. As a result of these announcements, the company's shares have moved -1.42% on the market, and are now trading at a price of $18.73. For the full picture, make sure to review BANC OF CALIFORNIA, INC.'s 10-Q report.
