Banc of California (BANC) Q1 2026 earnings summary

Executive summary

• Diluted EPS rose 50% year-over-year to $0.39, with net earnings of $62.0 million for Q1 2026, reflecting strong core earnings and positive operating leverage.

• Net interest margin expanded to 3.24%, driven by lower deposit costs, improved funding mix, and disciplined expense management.

• Total revenue increased 8% year-over-year to $286.9 million; pre-tax pre-provision income up 28% year-over-year.

• Book value per share grew to $19.80, and tangible book value per share to $17.77, up 9% and 10% year-over-year, respectively.

• Repurchased $31.9 million of common stock at an average price of $18.68 per share and announced $385 million subordinated debt redemption.

Financial highlights

• Net interest income was $251.6 million, up 8% year-over-year, supported by lower deposit costs and higher securities income.

• Noninterest income was $35.3 million, flat sequentially excluding a prior lease gain, with commissions and fees rising $1.5 million quarter-over-quarter.

• Noninterest expense was $181.4 million, flat sequentially and down 1% year-over-year, reflecting lower customer-related and leased equipment expenses.

• Return on average tangible common equity was 9.91%; return on average assets was 0.86%.

• Tangible book value per share increased to $17.77, up 10% year-over-year.

Outlook and guidance

• FY 2026 guidance reaffirmed: targeting mid-single-digit growth in loans and deposits, ROAA of 1.1%+, ROTCE of 13%+, and CET1 ratio of 10%+.

• Pre-tax pre-provision income expected to grow 20–25% year-over-year; noninterest expense to rise 3.0–3.5%.

• NIM expected to expand by 3-4 basis points per quarter, with no Fed rate cuts assumed in outlook.

• Management expects continued earnings growth, supported by strong pipelines and asset repricing opportunities.

• Embedded earnings upside from repricing $3.2 billion of multifamily loans over 2.5 years.