Banc of California: Preferred Remains Attractive For Income

Carlton Getz, CFA
3.2K Followers

Summary

  • Banc of California inherited PacWest's preferred shares in its acquisition in late 2023.
  • Banc of California has a different asset mix than PacWest but our assessment is that it has similarly robust adjusted capital levels.
  • The majority of appreciation has already occurred by the preferred shares remain attractive from an income and total return perspective.

A US Dollar symbol made of wood with leaves growing from it.

Richard Drury

Banc of California (BANC) acquired PacWest Bancorp on November 30, 2023. The bank subsequently implemented a number of changes to the loan and securities portfolio, realizing losses along the way, and eliminating less desirable assets. In the acquisition, Banc of California also

This article was written by

3.2K Followers
The author writes on behalf of Winter Harbor Capital, a private fund, and oversees private portfolios for individual and institutional clients. The author founded an investment company in 1995 with the view that a value oriented investment philosophy focused on intrinsic value and long term opportunities could generate superior absolute returns over time, leading to portfolios with unusual investment tenure sometimes exceeding 10 years. In addition to stints in micro and small capitalization research at Wasatch Advisors in Salt Lake City and in private banking with J.P. Morgan Private Bank in New York City, the author is a registered investment advisor, licensed professional engineer, and graduate of the Darden School at the University of Virginia.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BANC.PR.F either through stock ownership, options, or other derivatives. 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.

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