Banc of California, Inc. reported net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter ended March 31, 2025. This compares to $47.0 million, or $0.28 per diluted common share, in the fourth quarter of 2024. The results were in line with the company's expectations, showing positive trends in core earnings drivers.
Net interest income decreased by $2.9 million quarter-over-quarter to $232.4 million, primarily due to lower day count and reduced loan prepayments. However, the net interest margin expanded by 4 basis points to 3.08%, driven by a lower average total cost of funds. The average total cost of deposits declined to 2.12%, down 54 basis points from a year prior.
Loans and leases held for investment increased by $344.9 million in the first quarter to $24.1 billion, representing 6% annualized growth. New loan production totaled $2.6 billion with a weighted average interest rate of 7.20%, which is accretive to the overall portfolio yield. Noninterest expense increased by $2.3 million to $183.7 million, primarily due to seasonal compensation resets and a $1.0 million donation to the Wildfire Relief and Recovery Fund.
The company also announced an upsize of its stock repurchase program from $150 million to $300 million, inclusive of $150.0 million purchased through April 21, 2025. The program was expanded to cover both common stock and depositary shares representing preferred stock. This action reflects the company's healthy capital and liquidity position and its commitment to delivering sustainable returns to shareholders.
Credit quality metrics showed an uptick, with nonaccrual loans increasing to $213.5 million, mainly due to a single commercial real estate hotel loan. Classified loans increased to $764.7 million, largely from multi-family loans. Management attributes these increases to a conservative risk rating posture, with 84% of inflows to classified loans being current.
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