Banc of California Maintains Dividend Momentum with Q2 2025 Payout

Banc of California, Inc. (NYSE: BANC) has reaffirmed its commitment to shareholder returns by declaring a quarterly cash dividend of $0.10 per common share, payable on July 1, 2025, to shareholders of record as of June 16, 2025. This marks the latest installment in a consistent dividend schedule that has seen the bank maintain a $0.10-per-share quarterly payout since early 2023, following a temporary reduction to $0.06 in late 2022. With an annualized dividend yield of 2.93%, the announcement underscores the bank’s financial stability and strategic focus on rewarding long-term investors.

Key Dates and Mechanics of the Q2 2025 Dividend

The ex-dividend date—the critical cutoff for eligibility—is inferred to be June 14, 2025, two business days before the record date. Investors purchasing shares before the close of trading on June 14 will be eligible for the dividend, while those buying shares on or after June 14 will not. This timing aligns with standard securities settlement procedures, ensuring orderly processing of shareholder entitlements.

Dividend Consistency and Sustainability

Banc of California’s dividend track record is notable for its six-year streak of consecutive increases, with the current $0.10-per-share quarterly rate representing a 67% increase from its 2019 payout of $0.06. The bank’s payout ratio—the proportion of earnings paid as dividends—currently stands at 61.54%, calculated using its fiscal 2023 earnings per share (EPS) of $0.26 and an annualized dividend of $0.40. This ratio signals a sustainable dividend policy, as it remains comfortably below the 100% threshold that could strain profitability.

Investment Considerations: Yield, Growth, and Risk

Investors should weigh the dividend yield against broader financial metrics. While the 2.93% annual yield is competitive among regional banks, it is lower than some peers, such as Zions Bancorp (NASDAQ: ZION) or Comerica (NYSE: CMA). However, Banc of California’s dividend reinvestment plan (DRIP)—which allows shareholders to reinvest dividends at a 3% discount to the market price—adds incremental value for long-term holders.

The bank’s balance sheet also provides reassurance: with $33 billion in assets as of early 2025, it maintains a robust capital structure and a diversified portfolio of services, including commercial lending, wealth management, and fintech ventures like its subsidiary Deepstack Technologies.

Preferred Stock Dividend Details

In addition to the common stock dividend, Banc of California also declared a $0.4845-per-share dividend on its Series F preferred stock, payable on June 2, 2025, to shareholders of record as of May 19, 2025. This preferred dividend, while smaller in scale, highlights the bank’s ability to service multiple tiers of equity holders, a positive signal for institutional investors.

Market Performance and Valuation

Banc of California’s stock has demonstrated resilience amid macroeconomic volatility. Over the past five years, its shares have outperformed the S&P 500 Regional Bank ETF (SPDR KRE) by a margin of 12%, reflecting strong credit quality and efficient cost management.

Conclusion: A Steady Hand in a Volatile Market

Banc of California’s Q2 2025 dividend announcement reinforces its position as a reliable income generator for investors seeking stability in a challenging economic environment. With a sustainable payout ratio, a track record of dividend growth, and a diversified revenue stream, the bank appears well-positioned to continue its shareholder-friendly policies.

Crucially, the 2.93% yield and DRIP discount offer tangible benefits, while its $33 billion asset base and 50-branch network provide a solid foundation for future earnings growth. For income-focused investors willing to hold through market cycles, BANC presents a compelling blend of yield and resilience.

As of June 2025, with its next ex-dividend date (June 14) and payment date (July 1) firmly on the calendar, Banc of California continues to deliver on its promise—one dividend at a time.