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Banc of California in Irvine reported strong earnings growth in the third quarter thanks to a massive surge in fees from the sale of loans.
October 30 -
Steven Sugarman, chief executive at Banc of California, recently completed a large branch acquisition after a public battle with an advocacy group. In a recent interview, he discussed that process as well as the bank's busy year both the good and the bad.
November 18 -
Banc of California in Irvine is working to address material weaknesses in its internal controls.
August 20
Banc of California in Irvine got a shot in the arm from its acquisition of 20 Popular Community Bank branches in the fourth quarter.
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Expansion came at some cost. Noninterest expenses jumped 37%, to $78.4 million, which included approximately $5.9 million of nonrecurring costs from the Popular transaction as well as an increase of $2.1 million of ongoing operating expenses from the acquired branches. Higher salary and benefits expenses also contributed to that increase.
However, the now $6 billion-asset company had a strong quarter overall. Net income tripled from a year earlier, to $10.2 million. Earnings per share of 25 cents beat the estimates of analysts polled by Bloomberg by 8 cents.
Noninterest income rose 18%, to $40.9 million, as advisory service fees, customer service fees, mortgage banking income and loan brokerage income increased.
Net interest income rose 39%, to $46.3 million, even though net interest margin shrank 25 basis points, to 3.65%.
The company recorded a loan loss provision of $4.2 million in the fourth quarter, compared to $1.8 million a year earlier, due to its increase in loans.