4. Banc of California, Inc. (NYSE:BANC)
Number of Hedge Fund Holders: 18
Share Price as of the Close of July 31: $13.98
Banc of California, Inc. (NYSE:BANC) is an American financial services company that offers a wide range of banking services, including commercial & business banking, specialty banking, and personal banking. Banks can be a promising investment, particularly in strong economies. When consumers are spending confidently and unemployment rates are low, banks often see increased profits and manage to keep loan defaults under control. In addition, banks are also known for their generous dividends. In 2023, the sector provided record dividends and was responsible for half of the global dividend growth.
Banc of California, Inc. (NYSE:BANC) recently announced its second quarter 2024 earnings and showed impressive growth from the prior year period. The bank generated nearly $260 million in revenues, up significantly from $58 million in the same period last year. Its net interest income came in at $230 million, growing from $186 million in the second quarter of 2023. In the second quarter, the company continued to make significant strides in implementing its plan, enhancing its franchise, and boosting core earnings power. It further lowered its cost of funds, increased the net interest margin, and grew average noninterest-bearing deposits despite a challenging interest rate environment. The company is on target with its controllable cost savings and is committed to developing a valuable long-term franchise with a strong deposit base and core operations.
2016 was a pivotal year for Banc of California, Inc. (NYSE:BANC), as it surpassed $10 billion in assets under management—a significant achievement for a bank that had less than $1 billion in assets just five years earlier. This milestone impressed investors, leading to a surge in the stock price to a post-recession high of around $22 per share. It also saw an increase in insider purchases during this period. The company has come a long way since then. At the end of 2023, the bank had nearly $39 billion in assets under management.
Banc of California, Inc. (NYSE:BANC), one of the best dividend stocks on our list, has been paying regular dividends to shareholders since 2003. The company currently pays a quarterly dividend of $0.10 per share and has a dividend yield of 3.11%, as of August 1.
Banc of California, Inc. (NYSE:BANC) was included in 18 hedge fund portfolios at the end of Q1 2024, compared with 21 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of roughly $230 million. With over 6 million shares, Centerbridge Partners was the company’s leading stakeholder in Q1.
