BANC - Banc of California: Priced Below Tangible Book Value Unfairly
2024-06-11 12:18:15 ET
Summary
- Banc of California and PacWest merger created the third largest bank in California with over 70 branches and a focus on improving profitability.
- Asset analysis shows a stable loan portfolio with potential for improved profitability through new loan production and asset repricing opportunities.
- Liability analysis highlights a decrease in deposit costs and borrowing, with a focus on growing non-interest-bearing deposits to fuel profitability and improve net interest margin.
The merger between Banc of California and PacWest created a bank with more than 70 branches scattered throughout California and the third largest in the state based on total assets. The deal was finalized last Nov. 30, and since then a gradual plan to restructure the balance sheet has begun: assets of $6 billion have been sold and borrowings have been reduced by $9 billion....
Banc of California: Priced Below Tangible Book Value Unfairly