PL Capital Advisors Raises Stake in Banc of California (BANC) to 6.7%; Seeks to Speak with Management

October 24, 2016 3:57 PM EDT

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In a 13D filing on BANC OF CALIFORNIA (NYSE: BANC), hedge fund PL Capital Advisors, LLC disclosed a 6.7%, or 3,296,719 share, stake in the company. This is up 39.28% from the 2,366,919 shares held at the end of the latest quarter ending September 30, 2016.

From the filing:

This is the Reporting Person’s initial Schedule 13D filing. The Reporting Persons previously were required to file a Schedule 13D to report their holdings of Common Stock, but then ceased to report on Schedule 13D as they held less than 5% of the outstanding shares of Common Stock. So, the Reporting Persons ceased to mandatorily report their holdings of Common Stock on Schedule 13D, while their holdings did not exceed 5%. Now that their holdings again exceed 5% they are filing this initial Schedule 13D.

In the aggregate, the Reporting Persons hold 6.7% of the Banc of California’s Common Stock, based upon the Company’s outstanding shares as of July 28, 2016. The Reporting Persons acquired the Common Stock because they believed the Common Stock was undervalued at the time of purchase.

The Reporting Persons have significant concerns and questions about the Company’s corporate governance, capital management, transparency and executive compensation plans, many of which have been communicated to the management and board of the Company over the past three years. Although the management and board of directors of Banc of California have in the past refused the Reporting Persons’ requests to meet, it is the Reporting Persons intent to engage in a dialogue with the management and board of the Company to address these concerns and questions. If needed, the Reporting Persons will assert one or more of the stockholder rights afforded shareholders by the governing documents of the Banc of Califormia.

Richard Lashley, a principal of the PL Capital Group, sent a letter dated October 21, 2016 to Mr. Steven Sugarman, President & CEO of the Company. A copy of the letter is attached as Exhibit 99.2 to this Schedule 13D.

Richard Lashley, a principal of the PL Capital Group, sent a letter dated October 17, 2016 to Mr. Steven Sugarman, President & CEO of the Company. A copy of the letter is attached as Exhibit 99.3 to this Schedule 13D.

The letter is embedded below and the pdf file is here.


For more notable holders of BANC OF CALIFORNIA stock click here.



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Related Categories

13Ds, Hedge Funds

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13D, PL Capital, Richard Lashley

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