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.
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Banc of California in Irvine has changed its bylaws to allow for majority voting for directors.
July 1 -
Banc of Californias shareholders delivered a pair of rebukes for the Irvine companys management.
May 19 -
The $8.2 billion-asset company will issue about 4.9 million shares at $14.50 apiece, according to a news release Thursday.
March 3 -
Banc of California in Irvine is expanding its commercial bank by starting units specializing in health care, municipals and nonprofit banking.
April 20
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.
