Banc of California in Irvine reported a jump in second-quarter profits, fueled by strong growth in its loan portfolio.
The $4.4 billion-asset bank earned $8.1 million in the quarter that ended June 30, up 86% from the same period last year. Earnings were 27 cents per share, beating an estimate of analysts polled by Bloomberg by 11 cents.
Net interest income climbed 65%, to $35.6 million, as total loans increased 61%, to $2.6 billion. That growth was aided substantially by its October acquisition of the $1.1 billion-asset Private Bank of California in Century City.
Revenue from fees and service charges also contributed to the second-quarter earnings. Noninterest income rose 36%, to $35.4 million, driven by strong gains in fees from mortgage banking.
Operating expenses were $60.5 million, up 53% from last year, due primarily to higher salary costs that came with the Private Bank acquisition.
Since 2012, it has purchased three banks, an asset manager and a mortgage lender. It also recently announced plans to buy 20 branches from Popular of Puerto Rico, which is selling many of its holdings on the mainland.