Banc of California: Consider The Post-Merger Preferred Stock For Income

Summary

• Banc of California completed a merger with PacWest Bancorp, becoming the third-largest bank headquartered in California. The merger included the sale of $1.9 billion in assets and a $400 equity infusion.
• The Preferred was originally issued by PacWest. Both the Banc of California and the preferred stock are reviewed. Its desirability as an investment is compared to alternate preferred stocks.
• The preferred stock has a call date of 9/1/27 and can be called early if Tier 1 capital rules change.
• My comfort level is strong enough, with the yield and potential YTC, to rate the BANC-F as a Buy.
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Pioneertown, CA

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.