Banc of California (BANC) Q4 Revenue Beats, Stock Falls 5%

Banc of California (NYSE:BANC) reported Q4 CY2025 revenue of $292.9 million, up 10.7% year-over-year and surpassing estimates by 1.3%, driven by strong net interest income growth. Non-GAAP EPS of $0.42 exceeded consensus by 13.7%, but shares dropped 5% to $20.04 post-earnings. CEO Jared Wolff highlighted double-digit loan and noninterest-bearing deposit growth, along with a double-digit return on tangible common equity, citing disciplined expense management and stable credit quality. Net interest income accounted for 88.3% of total revenue over the past five years, reflecting its core earnings model. Tangible book value per share rose to $17.51, up 7.9% annually over two years, though five-year annualized growth was negative 3.9%. Analysts project 7.7% TBVPS growth over the next 12 months. Despite near-term momentum, revenue of $1.12 billion over the trailing 12 months remains flat compared to five years ago, raising concerns about long-term scalability.