Banc of California, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in total assets, which fell to $33.4 billion from $38.5 billion at the end of 2023. Total deposits also declined to $26.8 billion from $30.4 billion, while borrowings decreased to $1.6 billion from $2.9 billion. Despite these reductions, total stockholders' equity increased slightly to $3.5 billion from $3.4 billion.

For the three months ended September 30, 2024, total interest income was $446.9 million, a slight decrease from $462.6 million in the previous quarter but comparable to $446.1 million in the same quarter of the previous year. Net interest income rose to $232.2 million, up from $229.5 million in the previous quarter and significantly higher than $130.7 million a year earlier. However, earnings before income taxes dropped to $11.5 million from $44.6 million in the previous quarter, while net earnings fell to $8.8 million from $30.3 million.

The company reported a net loss available to common stockholders of $1.2 million for the quarter, contrasting with earnings of $20.4 million in the previous quarter and a loss of $33.3 million in the same quarter last year. Basic and diluted earnings per share for the quarter were $(0.01), compared to $0.12 in the previous quarter and $(0.42) a year ago.

For the nine months ended September 30, 2024, Banc of California reported total interest income of $1.4 billion, down from $1.5 billion in the same period of 2023. However, net earnings improved to $70.0 million, a significant recovery from a net loss of $1.4 billion in the prior year. The company also noted a substantial reduction in goodwill impairment, which was $0 for the current period compared to $1.4 billion in the previous year.

Strategically, Banc of California completed a merger with PacWest Bancorp on November 30, 2023, which was accounted for as a reverse merger. This merger has positioned Banc of California as a more significant player in the banking sector, with a focus on relationship-based business banking for small to middle-market businesses. The merger included a $400 million equity capital raise, enhancing the company's financial stability.

Overall, while Banc of California faced challenges with declining deposits and assets, it demonstrated improved profitability metrics and strategic growth through its recent merger, setting a foundation for future performance.