Banc of California (NYSE: BANC) reported Q2 EPS of $0.18, $0.03 better than the analyst estimate of $0.15.

Highlights for the second quarter included:

• Strong Core Deposit Growth: Core deposits grew by $357 million allowing for the reduction of brokered deposits by $332 million and the reduction of FHLB advances by $100 million.
• Organic Loan Growth: Held for investment loans increased by $105 million during the quarter to $7.0 billion. Annualized growth in the portfolio is 11% for the first half of 2018.
  • Gross loan commitment originations totaled $765 million for the second quarter at an average production yield of 5.05%.
• Continuation of Balance Sheet Re-Mix: Reduced securities by $127 million, or 5%, driven by the continued reduction of Collateralized Loan Obligations (\"CLO\"). Additionally, the Company completed the sale of mortgage servicing rights (\"MSRs\") totaling $3 million.
• Bolstered Talent: Added key leadership talent in Jim Hazboun as Chief Human Resources Officer.
• Disciplined Expense Management: Second quarter noninterest expense totaled $62.5 million. Previously announced expense reduction initiative expected to reduce noninterest expense by approximately $15 million annually.
• Strong Credit Performance: Non-performing assets of 0.22% and total delinquencies declined to 0.38%. Net charge-offs totaled $738,000 and included $372,000 related to the sale of a performing loan. The ALLL / total loan ratio was 0.81% at quarter end, up from 0.79% at the prior quarter end and up from 0.71% a year ago.
• Strong Capital Ratios: Common equity tier 1 capital ratio of 9.90%, compared to 9.83% a year ago.

"We continue to be very focused on our strategic plan and the second quarter saw yet more progress," said Doug Bowers, President and Chief Executive Officer of Banc of California. "We are seeing early signs of core deposit growth with balances increasing $357 million for the quarter or 25% annualized. Alongside varying key metrics, we remain committed to achieving operational efficiencies as noninterest expense, excluding non-recurring items, once again declined. Credit quality also remained very strong with non-performing assets to total assets at 0.22%."

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