Banc of California, Inc. (BANC) has announced a net income of $46.97 million, or $0.28 per share, for the fourth quarter, a significant turnaround from a net loss of $492.9 million, or $4.55 per share, reported in the same period the previous year. This improvement is largely attributed to a substantial reduction in losses from the sale of securities. The company's earnings exceeded analysts' expectations, causing its share price to rise by over 3 percent in pre-market trading.
In this quarter, the average forecast from nine analysts was $0.23 per share. It is important to note that analysts typically adjust their estimates to exclude certain special items.
The loss from the sale of securities was reported at $454,000 in the latest quarter, a considerable improvement from the $442.41 million loss incurred in the prior year.
Net interest income saw an increase, rising to $235.29 million from $151.05 million year-over-year.
Non-interest income amounted to $28.99 million, in stark contrast to a loss of $400.4 million recorded in the previous year.
The company generated revenue of $264.27 million, transitioning from a loss of $249.35 million in the prior year. This was slightly below the consensus estimate of $273.39 million.
The provision for credit losses significantly dropped to $12.8 million from $47 million last year.
Earlier, Banc of California's shares closed at $16.07, reflecting a 1.29 percent decline on Wednesday. Over the past year, the stock has fluctuated between $11.88 and $18.08.
