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LOS ANGELES - Banc of California , Inc. (NYSE: NYSE:BANC) reported fourth quarter earnings that beat analyst estimates, sending shares up 2.74% in early trading on Thursday.
The bank holding company posted net earnings of $56.9 million, or $0.28 per diluted share, for the fourth quarter of 2024.
This compares to a net loss of $482.9 million, or $4.55 per share, in the same quarter last year. Analysts had expected earnings of $0.23 per share.
Revenue for the quarter came in at $264.3 million, below the consensus estimate of $272.7 million. However, net interest income increased to $235.3 million from $151.1 million in Q4 2023.
"Our strong fourth quarter results reflect continued momentum and consistent execution by our team," said Jared Wolff, President & CEO of Banc of California. "During the quarter, we achieved additional cost savings as well as a significant decline in our funding costs driven by our targeted reduction in deposit costs and the balance sheet repositioning actions that we completed earlier in the year."
The bank's net interest margin expanded 11 basis points from the previous quarter to 3.04%. Total (EPA:TTEF) loans increased 4.3% annualized to $23.8 billion, driven by growth in warehouse lending, equity funds, and residential mortgage loan portfolios.
Banc of California maintained strong capital ratios, with its CET1 ratio improving to 10.55% from 10.46% in the third quarter. The bank's tangible book value per share increased to $15.72 from $15.63 at the end of Q3.
Looking ahead, Wolff said the bank is "well positioned to continue adding to our client base and expanding relationships with existing clients" in 2025.
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