Banc of California’s core banking business appears unfazed by the controversy that cost its CEO his job earlier this month.
The Irvine, Calif., company on Monday reported that its fourth-quarter net income jumped 75% from a year earlier, to $28.2 million, or 54 cents a share. The results reflected increased mortgage banking income and proceeds from the sale of $865 million in loans.
The loan sale included $18 million in nonperforming credits, which helped reduce the $11 billion-asset company’ nonperforming assets down to $17.4 million, or 0.16% of total assets, compared to $46.2 million and 0.56% at the end of 2015.
Deposits increased 44% to $9.1 billion. Total loans rose 16% from a year earlier to $6 billion, though they fell 8% from the third quarter due to the loan sale.
Full-year earnings rose 86% to $115.4 million. The company’s return on average assets was 1.1%; return on average common tangible equity was 17.3%. Banc of California should exceed those targets again in 2017, interim CEO Hugh Boyle said in a press release.
“Our objectives for 2017 are focused on four key pillars: responsible and disciplined growth, strong and stable asset quality, focus and optimization of our business, and strong corporate governance,” Boyle said. “We are confident that we can continue to execute and deliver strong financial returns for shareholders.”
Former chairman and chief executive officer Steven Sugarman resigned earlier this month in a move that happened less than two weeks after the Securities and Exchange Commission launched an investigation into prior statements by the company.