Banc of California , Inc. (NYSE:BANC), a commercial bank headquartered in Maryland, has announced the departure of Monica Sparks, the Executive Vice President and Chief Accounting Officer of both the company and its wholly owned subsidiary, Banc of California. Sparks will continue her duties until September 19, 2024, to facilitate a smooth transition.
Following Sparks' resignation, the company has appointed Jeffrey Krumpoch as the Interim Chief Accounting Officer, effective immediately after Sparks' departure. Krumpoch, 68, joined the company after the merger with PacWest Bancorp, which was completed on November 30, 2023.
He has been with PacWest Bancorp since 2002 and served as Corporate Controller prior to the merger. Krumpoch, who holds an MBA from Wayne State University, will receive a one-time cash bonus of $35,000 in connection with his new appointment.
The company has stated that there are no familial relationships or arrangements between Krumpoch and any other persons that would require disclosure under SEC regulations.
This executive change comes at a time when Banc of California continues to navigate the competitive banking landscape. The company's shares are listed on the New York Stock Exchange under the ticker BANC, along with its depositary shares representing interest in its Series F preferred stock (NYSE:BANC/PF).
In other recent news, Banc of California has announced dividends on its common and preferred stock, as declared by the company's Board of Directors. Common stockholders are set to receive a $0.10 per share dividend, while holders of the 7.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series F, will receive a $0.4845 per depositary share.
The company has also highlighted its Dividend Reinvestment Plan (DRIP), which allows common stockholders to purchase additional shares at a 3% discount from the market price.
The bank has reported an increase in its provisions for potential loan defaults in the second quarter, influenced by increased reserves for office loans.
This is in response to a tightened financial environment for borrowers and heightened concerns over potential bank defaults. Despite these concerns, Banc of California reported a profit available to common shareholders of $20.4 million, or 12 cents per share, during the second quarter.
Truist Securities has revised the bank's core earnings per share (EPS) estimates for 2024 and 2025, leading to an increase in the stock price target for Banc of California to $15.00. The revised EPS estimates are primarily due to anticipated lower net interest income, resulting from a smaller balance sheet and limited net interest margin expansion, as well as higher operating expenses.
In the second quarter, Banc of California announced the successful completion of a core system conversion and the sale of its CIVIC loan portfolio, freeing up $100 million in Tier 1 capital. The bank reported earnings per share of $0.12, with improvements in net interest income and margin.
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