Banc of California Q4 2023 GAAP Earnings $(4.55) Compared With $0.50 YoY, Net Interest Income Totals $151.05M Compared With $322.94M
Portfolio Pulse from Benzinga Newsdesk
Banc of California reported a Q4 2023 GAAP loss of $4.55 per share compared to a profit of $0.50 per share in the previous year. Net interest income was $151.05M, down from $322.94M. The quarter included significant costs related to its merger with PacWest Bancorp, including losses on security sales, merger costs, an FDIC special assessment, and credit provision on acquired loans. Additional expenses were incurred from a borrowing facility, termination fees, the HOA business, and other nonrecurring expenses.
January 25, 2024 | 11:16 am
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NEGATIVE IMPACT
Banc of California's Q4 earnings were significantly impacted by the merger with PacWest Bancorp, resulting in a substantial loss per share and a decrease in net interest income.
The reported loss and decrease in net interest income are substantial and directly related to the merger with PacWest Bancorp. The short-term impact is likely negative due to the significant costs incurred, which may concern investors about the immediate financial health of the bank.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
PacWest Bancorp's recent merger with Banc of California has led to significant one-time costs that negatively impacted Banc of California's Q4 earnings.
Although the article focuses on Banc of California's financials, the merger with PacWest Bancorp is a shared endeavor, and the costs reflected in BANC's earnings are likely to have a mirrored impact on PACW's financials in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 80