Banc of California (BANC) in Irvine reported better-than-expected quarterly earnings that reflected recent acquisitions.
The $2.5 billion-asset company had a profit of $4.4 million, or 36 cents a share, in the second quarter, after reporting a $739,000 loss a year earlier. The results topped the expectations of analysts polled by Bloomberg by 13 cents.
Loans rose 52% from a year earlier, to $1.6 million, reflecting the company's purchases of Beach Business Bank and Gateway Bancorp. Net interest income rose 156% from the second quarter of 2012, to $26 million. The net interest margin expanded by 60 basis points from a year earlier, to 3.90%.
Noninterest income rose 398% from a year earlier, to $26 million.
Noninterest expenses increased 298% from the second quarter of 2012, to $39.6 million, reflecting increases in employee salary and benefits. The loan-loss provision was $1.9 million in the second quarter, against $279,000 a year earlier. The company recorded $954,000 in net chargeoffs in the second quarter, versus just $4,000 a year earlier.
Banc of California, the holding company for Pacific Trust Bank and Beach Business Bank, has made big changes in the past year. Last week, Pacific Trust Bank, of Los Angeles, announced it had agreed to pay $10 billion for mortgage business CS Financial. In July, the company changed its name from First PacTrust to Banc of California.