Banc of California’s Q4 Earnings Call: Our Top 5 Analyst Questions

Regional bank Banc of California reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 10.7% year on year to $292.9 million. Its non-GAAP profit of $0.42 per share was 13.7% above analysts’ consensus estimates.

Banc of California (BANC) Q4 CY2025 Highlights:

• Net Interest Income: $416.9 million vs analyst estimates of $255.9 million (77.2% year-on-year growth, 62.9% beat)
• Net Interest Margin: 3.2% vs analyst estimates of 3.2% (in line)
• Revenue: $292.9 million vs analyst estimates of $289.1 million (10.7% year-on-year growth, 1.3% beat)
• Efficiency Ratio: 59.4% vs analyst estimates of 64.4% (505.5 basis point beat)
• Adjusted EPS: $0.42 vs analyst estimates of $0.37 (13.7% beat)
• Tangible Book Value per Share: $17.51 vs analyst estimates of $17.27 (11.2% year-on-year growth, 1.4% beat)
• Market Capitalization: $3.14 billion

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our fourth quarter results capped a year of strong execution, reflect the continued momentum of our core earnings engine, and validate our ongoing business strategy. During the quarter we delivered double-digit annualized loan and noninterest-bearing deposit growth, and achieved double-digit return on average tangible common equity, all while maintaining disciplined expense management and stable credit quality. These results underscore the strength of our franchise and our ability to consistently deliver profitable growth.”

Company Overview

Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Unfortunately, Banc of California struggled to consistently increase demand as its $1.12 billion of revenue for the trailing 12 months was close to its revenue five years ago. This was below our standards and suggests it’s a low quality business.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Banc of California’s annualized revenue growth of 7.5% over the last two years is above its five-year trend, but we were still disappointed by the results.

This quarter, Banc of California reported year-on-year revenue growth of 10.7%, and its $292.9 million of revenue exceeded Wall Street’s estimates by 1.3%.

Net interest income made up 88.3% of the company’s total revenue during the last five years, meaning Banc of California barely relies on non-interest income to drive its overall growth.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.

Banc of California’s TBVPS declined at a 3.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 7.9% annually over the last two years from $15.04 to $17.51 per share.

Over the next 12 months, Consensus estimates call for Banc of California’s TBVPS to grow by 7.7% to $18.86, paltry growth rate.

Key Takeaways from Banc of California’s Q4 Results

We were impressed by how significantly Banc of California blew past analysts’ net interest income expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The market seemed to be hoping for more, and the stock traded down 5% to $20.04 immediately following the results.

Big picture, is Banc of California a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).

Regional bank Banc of California will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.

Banc of California beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $287.7 million, up 4% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

Is Banc of California a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Banc of California’s revenue to grow 9.2% year on year to $289.1 million, slowing from the 42.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Banc of California has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Banc of California’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. First Horizon delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 3.2%, and BOK Financial reported revenues up 12.7%, topping estimates by 7.6%. First Horizon traded up 102% following the results.

Read our full analysis of First Horizon’s results here and BOK Financial’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Banc of California is up 4.5% during the same time and is heading into earnings with an average analyst price target of $22.32 (compared to the current share price of $20.80).

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at regional banks stocks, starting with FirstSun Capital Bancorp .

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.7% on average since the latest earnings results.

FirstSun Capital Bancorp

Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.

FirstSun Capital Bancorp reported revenues of $97.19 million, up 4.2% year on year. This print fell short of analysts’ expectations by 8.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and EPS estimates.

Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $38.91.

Read our full report on FirstSun Capital Bancorp here, it’s free.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19.5% since reporting. It currently trades at $78.37.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.6% since the results and currently trades at $69.81.

Read our full analysis of The Bancorp’s results here.

Fifth Third Bancorp

Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.

Fifth Third Bancorp reported revenues of $2.31 billion, up 6.4% year on year. This number beat analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter as it also put up a narrow beat of analysts’ tangible book value per share estimates.

The stock is up 22% since reporting and currently trades at $49.26.

Read our full, actionable report on Fifth Third Bancorp here, it’s free.

Banc of California

Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.

Banc of California reported revenues of $287.7 million, up 4% year on year. This print topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The stock is up 18.9% since reporting and currently trades at $20.07.

Read our full, actionable report on Banc of California here, it’s free.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at The Bancorp and the best and worst performers in the regional banks industry.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 98 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year. This print fell short of analysts’ expectations by 9.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

“We had another successful quarter as we continue to build new Fintech capabilities and implement and expand partner programs,” said Damian Kozlowski, CEO of The Bancorp.

The Bancorp delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 8.3% since reporting and currently trades at $70.82.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19% since reporting. It currently trades at $78.00.

ServisFirst Bancshares

Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.

ServisFirst Bancshares reported revenues of $144.1 million, up 16.5% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 3.3% since the results and currently trades at $73.80.

Read our full analysis of ServisFirst Bancshares’s results here.

Banc of California

Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.

Banc of California reported revenues of $287.7 million, up 4% year on year. This number topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The stock is up 16.6% since reporting and currently trades at $19.68.

Read our full, actionable report on Banc of California here, it’s free for active Edge members.

First Financial Bancorp

Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.

First Financial Bancorp reported revenues of $234.4 million, up 9.3% year on year. This print beat analysts’ expectations by 2.7%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 6.1% since reporting and currently trades at $25.80.

Read our full, actionable report on First Financial Bancorp here, it’s free for active Edge members.