What Happened?
Shares of regional bank Banc of California (NYSE: BANC) fell 4.7% in the afternoon session after the company reported its second-quarter 2025 financial results, which showed flat reported earnings per share due to a significant loss from strategic loan sales.
While the bank highlighted a 158% year-over-year surge in adjusted earnings per share to $0.31, its reported earnings per share of $0.12 remained unchanged from the prior year. This figure missed the analyst consensus estimate of $0.27 per share. The discrepancy was largely attributed to a pre-tax loss of $26.3 million resulting from the strategic sale of loans. Despite a slight improvement in the bank's net interest margin, investors appeared to focus on the flat reported earnings and the loss from the asset sale, which contributed to the stock's negative performance.
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What Is The Market Telling Us
Banc of California’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Banc of California is down 4% since the beginning of the year, and at $14.64 per share, it is trading 17.6% below its 52-week high of $17.77 from November 2024. Investors who bought $1,000 worth of Banc of California’s shares at the IPO in November 2023 would now be looking at an investment worth $1,177.
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