--- title: "Banc of California | 8-K: FY2026 Q2 Revenue: USD 16.41 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294191714.md" datetime: "2026-07-29T10:34:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294191714.md) - [en](https://longbridge.com/en/news/294191714.md) - [zh-HK](https://longbridge.com/zh-HK/news/294191714.md) generator: "portal-rs" --- # Banc of California | 8-K: FY2026 Q2 Revenue: USD 16.41 M Revenue: As of FY2026 Q2, the actual value is USD 16.41 M. EPS: As of FY2026 Q2, the actual value is USD -1.61, missing the estimate of USD 0.3967. EBIT: As of FY2026 Q2, the actual value is USD -321.99 M. #### Second Quarter 2026 Financial Results Overview Banc of California, Inc. reported a net loss available to common and equivalent stockholders of - $251.3 million for the second quarter ended June 30, 2026, with a diluted loss per common share of - $1.61. #### Operational Performance Pre-Tax Pre-Provision (PTPP) income was - $173.5 million in Q2 2026, compared to $105.6 million in Q1 2026 and $87.0 million in Q2 2025. Net earnings for Q2 2026 were - $241.3 million, a decrease from $72.0 million in Q1 2026 and $28.4 million in Q2 2025. Return on Average Assets (ROAA) was -2.79% in Q2 2026, down from 0.86% in Q1 2026 and 0.69% in Q2 2025. Return on Average Tangible Common Equity (ROATCE) was -36.18% in Q2 2026, compared to 9.91% in Q1 2026 and 8.34% in Q2 2025. Total revenue in Q2 2026 was $16.4 million, significantly lower than $286.9 million in Q1 2026 and $272.8 million in Q2 2025. #### Net Interest Income and Margin Net interest income decreased by $1.1 million to $250.5 million for the second quarter of 2026, down from $251.6 million in the first quarter of 2026, primarily due to an $8.3 million increase in total interest expense, partially offset by a $7.2 million increase in total interest income. For the six months ended June 30, 2026, net interest income increased $29.5 million to $502.1 million compared to $472.6 million for the same period in 2025. The net interest margin for the second quarter was 3.13%, an 11 basis point decrease from 3.24% in the first quarter, but up 3 basis points year-over-year from 3.10% in Q2 2025. The year-to-date net interest margin was 3.18%, up 9 basis points from 3.09% in the prior year period. #### Provision for Credit Losses The provision for credit losses was $161.8 million for the second quarter of 2026, significantly higher than $9.8 million in the first quarter and $39.1 million in Q2 2025. This increase was mainly driven by - $161.6 million of charge-offs and the impact of transferring $827.0 million of loans to held for sale. For the six months ended June 30, 2026, the provision for credit losses was $171.6 million, compared to $48.4 million for the same period in 2025. Net charge-offs were $160.3 million in Q2 2026, primarily driven by loans transferred to held-for-sale (HFS). #### Noninterest Income and Expense Total noninterest income resulted in a loss of - $234.1 million for the second quarter of 2026, a decrease of - $269.4 million from $35.3 million in the first quarter, primarily due to a - $256.7 million pre-tax loss on securities available-for-sale and a - $12.5 million loss from the lower of cost or market adjustment on held for sale loans. Total noninterest expense increased by $8.5 million to $189.9 million in the second quarter from $181.4 million in the first quarter, driven by a $7.7 million increase in insurance and assessment costs and a $5.0 million increase in other expense. Total noninterest expense in Q2 2026 compared to $185.9 million in Q2 2025. #### Balance Sheet Highlights Total assets were $35.0 billion at June 30, 2026, up from $34,724 million in Q1 2026 and $34,250 million in Q2 2025. Total deposits increased by $799.0 million to $28.1 billion at June 30, 2026, from $27.3 billion at March 31, 2026. Total end-of-period deposits increased 12% annualized, reaching $28,121 million in Q2 2026, up from $27,322 million in Q1 2026 and $27,528 million in Q2 2025. Average loans increased $556.1 million, or 2.3%, during the second quarter. Loans held for sale increased by $656.1 million to $915.2 million at June 30, 2026. Borrowings decreased by - $90.9 million to $2.5 billion. Subordinated debt decreased to $573.6 million at June 30, 2026, from $954.1 million at March 31, 2026, following the redemption of $385.0 million. Total stockholders’ equity decreased by - $143.2 million to $3.4 billion. #### Credit Quality Credit quality metrics showed improvement from the first quarter, with classified loans and leases and special mention loans and leases as a percentage of total loans held for investment declining by 99 basis points and 154 basis points, respectively. Total delinquent loans and leases were $173.7 million at June 30, 2026, down from $345.1 million at March 31, 2026. Nonperforming loans and leases increased to $203.7 million from $185.7 million. Nonperforming assets were $220.0 million, or 0.63% of total assets, compared to $203.8 million, or 0.59% of total assets, as of March 31, 2026. Net charge-offs were 2.54% of average loans and leases (annualized) for the second quarter. The allowance for credit losses (ACL) totaled $276.2 million, or 1.14% of total loans and leases at June 30, 2026. The economic coverage ratio was 1.63% of total loans and leases. #### Capital Ratios Banc of California, Inc.’s preliminary capital ratios at June 30, 2026, included a total risk-based capital ratio of 14.31%, a Tier 1 risk-based capital ratio of 11.67%, a Common equity tier 1 capital ratio of 9.25%, and a Tier 1 leverage ratio of 8.89%. These ratios exceeded the regulatory thresholds for “well capitalized” banks. The CET1 ratio was 9.25% in Q2 2026, down from 10.18% in Q1 2026 and 9.95% in Q2 2025. The TCE ratio was 7.50% in Q2 2026, compared to 7.97% in Q1 2026 and 7.65% in Q2 2025. #### Liquidity Cash and cash equivalents totaled $2.8 billion at June 30, 2026, an increase of $600.8 million from March 31, 2026. Total available liquidity, including immediately available cash and cash equivalents, total available borrowing capacity, and unpledged AFS securities, was $14.1 billion at the end of the second quarter. #### Outlook / Guidance Banc of California, Inc. anticipates that strategic actions will immediately improve net interest margin, support higher recurring earnings, and accelerate organic capital generation. The net interest margin is expected to increase to approximately 3.30% upon the closing of the targeted loan sale, with the CET 1 ratio projected to rise to about 9.45-9.50% after the loan sale closes and further to approximately 9.50-9.60% by the end of the third quarter. The company provided an updated outlook for 2026, anticipating a Net Interest Margin (NIM) of 3.30-3.40% by year-end, a Return on Average Assets (ROAA) of 0.95-1.00%, and a Return on Average Tangible Common Equity (ROATCE) of 11.5-12.5% by year-end, with Pre-Tax Pre-Provision (PTPP) income projected to be $125-$130 million for Q4 2026. ### Related Stocks - [BANC.US](https://longbridge.com/en/quote/BANC.US.md) ## Related News & Research - [Banc of California (NYSE:BANC) Releases Earnings Results, Beats Estimates By $0.01 EPS](https://longbridge.com/en/news/283727491.md) - [Banc of California Reports Q2 Loss, Strategic Repositioning](https://longbridge.com/en/news/294196199.md) - [Did Sluggish Net Interest Income Growth Just Shift Truist Financial's (TFC) Investment Narrative?](https://longbridge.com/en/news/296099795.md) - [New to The Street's 1-800-FLOWERS.COM (NASDAQ: FLWS) Interview Surpasses 1 Million Views as Audience Continues to Grow](https://longbridge.com/en/news/296378412.md) - [US Plains HRW Wheat-Basis flat-higher amid selling uptick](https://longbridge.com/en/news/296536429.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**