Banc of California announced that it will extend its $300 million stock repurchase program through March 16, 2027, and that it intends to redeem the entire outstanding $385 million aggregate principal amount of its 3.25% fixed‑to‑floating‑rate subordinated notes due 2031.
The buyback program, originally launched on March 17, 2025 and upsized to $300 million in April 2025, has already seen $217 million of shares repurchased. $31 million of those purchases occurred in 2026, leaving roughly $83 million of the program’s authorized amount available for future repurchases. Extending the program signals management’s confidence in the firm’s valuation and provides a disciplined mechanism for returning excess capital to shareholders.
The subordinated notes, issued by Pacific Western Bank, reset to a floating rate (three‑month term SOFR plus 252 basis points) on May 1, 2026, and are redeemable in whole or in part beginning that date. Banc plans to redeem the notes at 100 % of principal plus accrued and unpaid interest, a move that will reduce long‑term debt and lower interest expense, thereby improving the bank’s funding profile and capital structure.
Banc’s recent earnings reinforce the rationale for these capital‑allocation actions. In Q4 2025 the bank reported diluted earnings per share of $0.42, up 11 % quarter‑over‑quarter, and a full‑year diluted EPS of $1.17. Net interest margin expanded to 3.22 % in both Q3 and Q4 2025, reflecting a favorable mix of loan growth and disciplined cost management. CEO Jared Wolff said, “Extending our stock repurchase program enables us to continue returning excess capital to stockholders through disciplined share repurchases. At the same time, retiring higher‑cost subordinated debt improves our funding profile, reduces interest expense, and strengthens our overall capital structure. Together, these actions demonstrate our continued commitment to prudent capital management and delivering sustainable long‑term returns to our stockholders.”
The capital‑allocation strategy fits within Banc’s broader post‑merger framework. The bank completed a merger with PacWest Bancorp in November 2023, which expanded its balance sheet and market reach. Banc continues to focus on relationship‑based banking for small‑ and middle‑market businesses, entrepreneurs, and venture‑backed companies in California’s diverse economy. By extending the buyback program and redeeming higher‑cost debt, Banc is positioning itself to fund future growth initiatives while maintaining a strong capital position.
Overall, the extension of the share repurchase program and the redemption of the 2031 subordinated notes enhance Banc of California’s financial flexibility, reduce interest‑bearing debt, and reinforce management’s commitment to returning value to shareholders while supporting the bank’s long‑term growth strategy.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.