Q2 2024 Banc of California Inc Earnings Call Transcript
Key Points
- Successful core system conversion with minimal disruptions, integrating nearly 20,000 clients and over 55,000 accounts.
- Completed the sale of approximately $1.95 billion of CIVIC loans, freeing up approximately $100 million in Tier 1 capital.
- Paid down $1 billion in higher-cost BTFP funding, contributing to net interest margin (NIM) expansion.
- Generated $230 million in new non-interest bearing deposits from new relationships in just two quarters.
- Originated over $1 billion in loan commitments during the second quarter alone.
- Net charge-offs were elevated in the second quarter due to charge-offs related to the CIVIC portfolio and several commercial real estate loans.
- Increase in criticized and classified loans due to downgrading several rate-sensitive loans.
- Non-interest income was down from the prior quarter, primarily due to lower levels of other income from mark-to-market adjustments.
- Total non-interest expense was impacted by several items, including adjustments to acquisition-related costs and continued elevation in FDIC expenses.
- The overall climate for lending remains sluggish, with traditional real estate lending showing lower momentum.
Good day and welcome to the Banc of California's second quarter of 2024 earnings conference call. (Operator Instructions). Please also note that this event is being recorded today. I would now like to turn the conference over to Ann DeVries, Head of Investor Relations. Please go ahead.
Good morning, and thank you for joining Banc of California's second quarter earnings call. Today's call is being recorded and a copy of the recording will be available later today on our Investor Relations website.
Today's presentation will also include non-GAAP measures. The reconciliations for these measures and additional required information is available in the earnings press release and earnings presentation, which are available on our Investor Relations website.
Before we begin, we would like to remind everyone that today's call may include forward-looking statements, which are subject to risks, uncertainties and other factors outside of our control and actual results may differ materially.
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