# Banc of California Q3 2026 Earnings Boost

> Banc of California reports 21% higher earnings per share and improved net interest margin after strategic balance sheet repositioning.
- Title: Banc of California Q3 2026 Earnings Boost · The Motley Fool
- Summary: Banc of California reports 21% higher earnings per share and improved net interest margin after strategic balance sheet repositioning. Banc of California's…
- Keywords: banc of california, q3 2026, earnings call, net interest margin, strategic balance sheet repositioning, diluted eps, common equity tier 1 ratio, net interest income, finance, money, Banc, California
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/banc-of-california-banc-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T18:59:45+00:00
- Read time: 2 min
- Topics: banc of california, q3 2026, earnings call, net interest margin, strategic balance sheet repositioning, diluted eps, common equity tier 1 ratio, net interest income, finance, money
## Q3 Earnings Results
Diluted EPS increased 21% year over year to $0.46.
## Net Interest Margin Expansion
Net interest margin expanded 21 basis points to 3.34% following strategic balance sheet repositioning.
## Net Interest Income Growth
Net interest income rose 9% from second quarter to $272.4 million.
## Pretax Preprovision Income
Pretax preprovision income grew 16% year over year to $118.4 million.
## Total Revenue Growth
Total revenue increased 6% year over year to $303.8 million.
## Loan Production
Loan production reached $2.6 billion with weighted average interest rate of 6.58%.
## Core Deposits Growth
Core deposits increased by approximately $515 million during the quarter.
## Brokered Deposits Reduction
Brokered deposits decreased by approximately $375 million as management reduced wholesale funding reliance.
## Common Equity Tier 1 Ratio
Common equity tier 1 ratio increased 45 basis points to 9.7%.
## Efficiency Ratio Improvement
Efficiency ratio improved from 67.2% to 59.1% as revenue grew while expenses remained flat.
## Q4 Pretax Preprovision Guidance
Q4 pretax preprovision income expected between $125 million and $130 million.
## Q4 Net Interest Margin Guidance
Q4 net interest margin guidance narrowed to 3.35%-3.40%.
## Subordinated Debt Redemption
Subordinated debt redemption executed for $385 million to avoid higher contractual interest rate reset.
## Return on Average Tangible Common Equity
Return on average tangible common equity increased over 200 basis points since first quarter.
## Available-for-Sale Securities Yield
Available-for-sale securities yield increased 23 basis points to 4.58%.
## Classified Loans Improvement
Classified loans reached five-quarter lows as nonperforming assets declined.
## Net Charge-Offs
Net charge-offs amounted to $17.3 million representing 0.27% of average loans.
## Tangible Book Value Per Share
Tangible book value per share decreased to $16.09 from $16.44 at June 30.
## HOA Deposits
HOA deposits held approximately $4 billion in balances.
## Targeted Loan Sales
Targeted loan sales of $525 million completed during the quarter.
## Key takeaway

Banc of California's Q3 2026 earnings show 21% year-over-year EPS growth and 3.34% net interest margin expansion from strategic balance sheet changes.