Banc of California's second-quarter profits soared on stronger lending and credit quality.
The $10.2 billion-asset company's net income rose 66% from a year earlier to $26.5 million, it said in a news release Thursday.
Net interest income rose 50% to $81 million as total loans increased 39.4% to $6.2 billion. The biggest gains came in multifamily, construction, commercial-and-industrial and single-family mortgage lending.
Meanwhile, the provision for loan losses fell to $1.8 million from $5.5 million.
Deposits rose 55.3% to $7.9 million.
Those positives were offset by a 1.6% dip in noninterest income to $65.6 million, and the net interest margin fell to 3.39% from 3.64%. Moreover, noninterest expenses rose 13.8% to $100 million.
Banc of California, based in Irvine, has plans for further growth. It started units to specialize in health care, municipals and nonprofit banking that are expected to start operations the second half of the year.
The company raised $100 million in a secondary offering, redeemed $85 million of senior notes and increased its line of credit to $75 million in the second quarter, the release said.