Banc of California, Inc.: 2Q26: Near-Term Setback To Improve L-T Earnings Power With Outlook of Core Franchise Fully Intact; OW

研报英文原文证据摘录

Banc of California, Inc.: 2Q26: Near-Term Setback To Improve L-T Earnings Power With Outlook of Core Franchise Fully Intact; OW

J P M O R G A N North America Equity Research

30 July 2026

Banc of California, Inc. Overweight

BANC, BANC US

2Q26: Near-Term Setback To Improve L-T Earnings Price (29 Jul 26):$18.59

Power With Outlook of Core Franchise Fully Intact; OW ▼Price Target (Dec-27):$22.00 Prior (Dec-27):$24.00

With Banc of California announcing as part of 2Q26 earnings that it had undertaken

multiple balance sheet actions during the quarter which included a securities U.S. Mid and Small Cap Banks

repositioning, a loan sale, and a retirement of subdebt, these actions contributed to Anthony Elian, CFA AC

the company posting 2Q26 GAAP EPS loss of -$1.61. When we combine this with (1-212) 622-5067

market speculation on potential M&A which did not materialize, we were not anthony.elian@jpmorgan.com

surprised to see BANC shares underperform yesterday (BANC: -12.2%; KRX: - Michael Pietrini

0.6%). With Banc of California describing these balance sheet actions as removing (1-212) 622-0618

michael.pietrini@jpmorgan.com

“weights” from the franchise—which on a core basis is still posting strong growth J.P. Morgan Securities LLC

metrics in areas including loan production/growth and deposit growth—we

applaud management for executing on these actions despite the near-term hit Key Changes (FYE Dec)

to TBV. Following the balance sheet actions as well as expenses appearing to be Prev Cur Δ

well-controlled, our above consensus estimates incorporate a modestly higher Adj. EPS - 26E ($) 1.77 1.71 -3.3%

NIM forecast though this is partially offset by zeroing out our buyback

Quarterly Forecasts (FYE Dec)

assumptions in 2H26 until the CET1 ratio reaches 10% sometime in early 2027.

Adj.