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- **EPS Growth**: Q3 EPS up 23% QoQ to $0.38, with ROTE at 9.87% (231 bps YoY improvement). Full-year EPS growth of nearly 50% since Q1.
- **Share Buybacks**: $185M repurchased under $300M authorization, maintaining CET1 at 10.14%.
- **NIM Expansion**: 3.22% NIM (3.18% exit rate), driven by loan remixing and repricing. Expect further expansion in 2025.
- **Credit Quality**: ACL at 1.12%, criticized loans down 4% QoQ. Classified loans up due to timing, but all performing.
- **Strategic Moves**: Avoiding office and government-related lending, focusing on multifamily and C&amp;I. Dynamic deposit management to reduce costs.

**【CEO Summary Section】**
- **Strong Earnings Growth**: Q3 EPS of $0.38, up 23% QoQ, with ROTE improving to 9.87% (231 bps YoY). Full-year EPS growth of nearly 50% since Q1.
- **Share Buybacks**: Repurchased 2.2M shares ($185M total) under $300M authorization, maintaining CET1 at 10.14%.
- **Deposit Strategy**: Core deposits up 9% (noninterest-bearing), reducing broker deposits by 16% QoQ, lowering cost of deposits to 2.08%.
- **Loan Production**: $2.1B in loans, excluding $346M SFR purchases. Total loans down 1.6% due to paydowns, but core portfolio stable.
- **Credit Quality**: ACL at 1.12% of loans, criticized loans down 4% QoQ. Classified loans up due to timing and procedural changes, but all performing.

**【CFO Financial Commentary】**
- **Net Interest Income**: $253M (+5% QoQ), NIM 3.22% (3.18% exit rate). Expect further expansion from loan remixing and repricing.
- **Noninterest Income**: $34.3M (+5% QoQ), stable at $10-12M/month run rate.
- **Expense Control**: $185.7M flat QoQ, efficiency ratio 58% (down 300 bps). 2025 guidance for mid-single-digit loan growth and 3.20-3.30% NIM.
- **Credit Reserves**: ACL at 1.12%, consistent with prudent management.

**【Q&A Highlights】**
- **Credit Quality**: $50M CRE loan classified due to timing, but all loans performing. NDFI lending at <5% of portfolio, with negligible historical losses.
- **NIM Outlook**: Neutral balance sheet, ECR benefits offset liability sensitivity. 2025 NIM target 3.20-3.30%, 2026 guidance to follow.
- **Deposit Growth**: Focus on noninterest-bearing deposits, managing HOA ECR costs dynamically.
- **Strategic Lending**: Avoiding office and government-related properties, focusing on multifamily and C&amp;I.
- **Buybacks**: Opportunistic at $13.59 avg price, maintaining CET1 >10%.
- **Expense Management**: Tight control on headcount and projects, leveraging technology for efficiency.

Banc of California, Inc. (BANC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BANC

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