BANC · Banc Of California, Inc. Q2 FY2026 earnings call record财报电话会记录

“Before we begin, we would like to remind everyone that today's call will include forward-looking statements, including statements about our targets, goals, strategies, and outlook for 2026 and beyond, which are subject to risks, uncertainties, and other factors outside of our control, and actual results may differ materially.”

“At a time when many banks are managing margin pressure, this strategic repositioning puts us in a favorable position with early benefits to net interest margin already visible.”

“Together with the securities repositioning and the impact of the anticipated loan sales, supports immediate expansion of net interest margin, higher recurring earnings, and accelerated organic capital generation.”

“Our expected capital generation, combined with a larger earnings base and stronger margin trajectory, gives us greater flexibility as we evaluate future capital allocation, including for the potential to redeem our preferred stock in 2027.”

“The reported loss reflects the near-term accounting impact of the securities repositioning, the targeted loan sale process, and the retirement of subordinated debt.”

“In addition to the yield pickup, the repositioning provides further balance sheet efficiency by taking duration of the overall securities portfolio down from five years to four years, and also lowers the risk weighting profile of the portfolio from 19.5% to 9.5%.”

“Net interest income of $250.5 million was down from the first quarter, partially due to non-accrual loan interest reversals, which negatively impacted interest income by $5 million.”

“On the funding side, the total cost of deposits increased two basis points to 1.80%, while total cost of funds increased four basis points to 2.14% due to the dynamics I mentioned earlier around late quarter deposit growth and subordinated debt replacement funding.”

“As the remaining securities proceeds are invested and the targeted loan sale closes, we expect the go-forward margin to come in around 3.30%.”

“These are generally rate-sensitive customers that don't have a huge relationship with us.”

“We made an active campaign to retain those customers, and our teams through the branches and otherwise have done an outstanding job of executing on that.”

“There was $827 million on the loan sale, and those are for the most part, 100% or, in some cases, even a little bit over 100% risk-weighted.”