Banc of California: Reactionary Selloff Creates Buying Opportunity

Jeremy LaKosh 6.22K Followers Follow Summary Banc of California shares dropped after Q2 losses tied to securities repositioning, but I view this as a strong entry point. BANC sold $2.3B in low-yield securities and $825M in CRE loans, improving forward earnings potential and reducing interest rate risk. Deposits rose 2.9% in Q2, while the loan-to-deposit ratio fell to 85%, lowering reliance on costly external financing. With a forward P/E under 10x and 1.16x tangible book value, BANC offers compelling value despite near-term NPA risks. Getty Images Introduction Banc of California ( BANC ) is a regional bank based out of California but with branches in Colorado and North Carolina. Last week, the bank’s second quarter earnings sent shares 12% lower as investors digested securities repositioning that swung This article was written by Jeremy LaKosh 6.22K Followers Follow Other writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois. Analyst’s Disclosure: I/we have a beneficial long position in the shares of BANC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.