Banc of California, Inc. reported net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter ended December 31, 2024. This marks a significant improvement from a net loss of $1.2 million, or $0.01 per diluted common share, in the third quarter of 2024. For the full year 2024, net income was $87.1 million, or $0.52 per diluted common share, with adjusted net income reaching $135.4 million, or $0.80 per diluted common share.
Net interest income increased by $3.1 million quarter-over-quarter to $235.3 million, driven by lower interest expense on interest-bearing liabilities. The net interest margin expanded by 11 basis points to 3.04% in the fourth quarter, benefiting from a 27 basis point decrease in the cost of average total funding. The average total cost of funds declined to 2.55%, primarily due to lower market interest rates and the paydown of higher-cost brokered deposits.
Noninterest expense decreased by $14.8 million quarter-over-quarter to $181.4 million, reflecting additional cost savings. Noninterest income saw a substantial increase of $44.4 million to $29.0 million, mainly due to a $59.5 million decrease in loss on sale of securities compared to the prior quarter.
The CET1 capital ratio improved to 10.55% from 10.45% in the third quarter, and tangible book value per share increased to $15.72. The company also provided an update on the Southern California wildfires, confirming a $1 million donation to its relief fund and no material impact on its loan portfolio or facilities.
For 2025, Banc of California targets mid to high single-digit loan growth, driven by commercial loans, and mid to high single-digit deposit growth, with noninterest-bearing deposits targeted to exceed 30% of total deposits. The company aims to strengthen core earnings power through prudent expense management and revenue diversification.
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