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Investing.com - Stephens raised its price target on Southern California Bancorp (NASDAQ:BCAL) to $19.00 from $18.00 on Tuesday, while maintaining an Equal Weight rating on the stock. Currently trading at $16.07, the $520.88M market cap bank shows mixed signals according to InvestingPro data, with analysts’ targets ranging from $18 to $19.
The bank reported second-quarter operating earnings per share of $0.41, which aligned with Street expectations and exceeded Stephens’ forecast by $0.02. With impressive revenue growth of 42.6% and a P/E ratio of 16.1, InvestingPro analysis reveals the company maintains a GOOD financial health score. Southern California Bancorp made significant progress in balance sheet repositioning following its CALB merger, reducing sponsor loans to 1.4% of total loans and brokered deposits to 0.1% of total deposits, down from 6% in the third quarter of 2024.
Credit metrics showed notable improvement with classified loans decreasing 27% quarter-over-quarter. While net charge-offs were elevated during the quarter, Stephens attributed this to accelerated balance sheet repositioning and noted that original marks appear conservative.
The bank paid off $18 million of subordinated debt in the second quarter, with Stephens expecting an additional approximately $20 million to be paid off during the third quarter, which should benefit the net interest margin.
Following the quarterly results, Stephens updated its 2026 operating earnings per share forecast for Southern California Bancorp to $1.58, down from its previous estimate of $1.67.
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