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    Banc Of California (BANC) Could Be 17% Undervalued After Mixed Earnings

    Simply Wall St·10/28/2026 08:23:08
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    Quarterly strength and year to date weakness in focus

    Banc of California (BANC) has become a talking point after its third quarter 2026 report showed higher net interest income and net income, while the nine month figures told a very different story.

    For the quarter ended September 30, 2026, the bank reported net interest income of US$272.44 million, compared with US$253.44 million a year earlier. Net income for the same period was US$83.06 million, compared with US$69.63 million in the prior year quarter, with basic and diluted earnings per share from continuing operations at US$0.46, versus US$0.38 a year ago.

    Over the first nine months of 2026, net interest income reached US$774.56 million, compared with US$726.02 million in the same period of 2025. The headline result across those nine months was a net loss of US$86.34 million, compared with net income of US$151.58 million a year earlier, with basic and diluted loss per share from continuing operations at US$0.74, compared with earnings per share of US$0.75 in the prior year period.

    The latest earnings release has arrived after a stretch where Banc of California’s share price return has slipped 6.22% year to date, even as the stock has produced a 9.02% total shareholder return over one year and a very large 3 year total shareholder return of 83.70%. This suggests recent momentum has cooled compared with its longer record.

    Scan how Banc of California compares with other regional banking plays that pair earnings power with balance-sheet quality through our hand picked list of solid balance sheet and fundamentals (24 results).

    Banc of California has risen on stronger quarterly earnings, even as the year-to-date share price remains in decline. Is more of the potential rerating still ahead, or already behind?

    Most Popular Narrative: 17% Undervalued

    Banc of California closed at $18.24, compared with a widely followed fair value estimate of $21.83 that applies a 7.82% discount rate to future expectations. That gap frames a story where earnings repair, merger execution and credit outcomes do a lot of heavy lifting in how investors judge the stock.

    The successful merger integration with Pacific Western Bank is unlocking cost synergies, revenue cross-sell opportunities, and scale benefits, which are already contributing to tangible book value expansion and margin improvement and are likely to further boost future profitability.

    See why 4 investors see Banc of California as 16% undervalued.

    Result: Fair Value of $21.83 (UNDERVALUED)

    Still, reliance on Southern California commercial real estate and higher deposit costs could pressure Banc of California’s credit metrics and keep valuation expectations in check.

    Find out about the key risks to this Banc of California narrative.

    Next Steps

    Mixed signals on Banc of California so far. If you want to move quickly and rely on your own judgement, start by weighing the 2 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Banc of California?

    If Banc of California has your attention, do not stop here. Use the same disciplined lens to scout other opportunities that might suit your portfolio.