Banc of California closed the books on a tumultuous first quarter, reporting lower net income that reflected restructuring charges and higher credit costs.
The $11.1 billion-asset company said in a press release Wednesday that its quarterly earnings fell 20% from a year earlier to $12.1 million. The results included $5.2 million in charges following the company’s decision to sell its mortgage business and lay off about 140 employees.
The loan-loss provision totaled $2.6 million, a big increase from the $321,000 set aside a year earlier.
Revenue increased by 8% as higher net interest income offset a decline in securities gains. The company also recorded $3.4 million in gains from loan sales.
Commercial loans rose 30% to $4 billion, accounting for about two-thirds of the company’s overall portfolio. Deposits grew 26% to $8.6 billion, though non-interest-bearing deposits fell 9% to $1.27 billion.
Despite the higher provision, Banc of California reported significant improvement in credit quality. Nonperforming loans were down more than 60% to $16.2 million, or 0.27% of total loans.
"Our first quarter results marked the successful execution of a series of strategic actions for the company to ensure we continue to drive long-term shareholder value," Francisco Turner, Banc of California’s interim president, said in the release. "We have charted a path toward a strategic transformation of our business into a commercial banking franchise.”
The first-quarter was turbulent for Banc of California in terms of leadership.
Steven Sugarman
In March, the company
Banc of California said last month that it had
