Banc of California

Q2 FY2026 EarningsQ2 FY26 results significantly missed consensus estimates due to aggressive strategic balance sheet actions. Reported GAAP EPS of -$1.61 was well below the $0.40 mean consensus, primarily driven by a $256.7M pre-tax loss from the repositioning of $2.3B in securities and a $161.8M provision for credit losses. Despite the GAAP loss, Net Interest Margin (NIM) of 3.13% was slightly below the 3.25% expectation, while the securities reset is expected to yield a 276bps pickup on redeployed balances in future periods.