Regional bank Banc of California (NYSE: BANC) met Wall Street’s revenue expectations in Q3 2026, with revenue up 5.6% year on year to $303.8 million. Its GAAP profit of $0.46 per share was in line with analysts’ consensus estimates.

For more on Banc of California, read the full research report for free.

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our third quarter results demonstrate the stronger earnings foundation we have created through our second quarter strategic balance sheet repositioning and continued execution across our business. Compared to the first quarter, before the repositioning, diluted earnings per share increased 18%, total revenue increased 6% and pre-tax pre-provision income increased 12%. We also grew deposits, reduced our reliance on brokered funding and increased our CET1 ratio by 45 basis points from the second quarter.”

Revenue growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management and trading operations provide additional income. Banc of California struggled to consistently generate demand over the last five years as its revenue dropped at a 1.4% annual rate. That underwhelming result suggests poor business quality.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Banc of California’s annualized revenue growth of 9% over the last two years is above its five-year trend, a positive sign. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Banc of California grew its revenue by 5.6% year on year, and its $303.8 million of revenue was in line with Wall Street’s consensus estimates.

Net interest income made up 88.8% of the company’s total revenue during the last five years, meaning Banc of California barely relies on non-interest income to drive its overall growth.

The market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

Tangible book value per share (TBVPS)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.

Banc of California’s TBVPS declined at a 6.9% annual rate over the last five years. However, TBVPS growth has accelerated recently, growing by 1.4% annually over the last two years from $15.66 to $16.09 per share.

Over the next 12 months, consensus estimates call for Banc of California’s TBVPS to grow by 15.3% to $18.56, a solid growth rate.

Key takeaways from Banc of California’s Q3 results

With tangible book value per share missing expectations and EPS only matching Wall Street’s consensus estimates, Banc of California’s Q3 offered few positives. It was a quarter that could have been better. Shares edged higher 1.3% to $18.50 immediately after the results.

Is Banc of California a buy right now? When making that decision, it’s important to consider its valuation, business qualities and what has happened in the latest quarter. Read the full research report here (it’s free).