Banc of California, Inc. (NYSE:BANC) Q3 2022 Earnings Conference Call October 20, 2022 1:00 PM ET
Company Participants
Jared Wolff - President, Chief Executive Officer
Lynn Hopkins - Chief Financial Officer
Conference Call Participants
Timur Braziler - Wells Fargo
David Feaster - Raymond James
Gary Tenner - D.A. Davidson
Kelly Motta - KBW
Operator
Hello and welcome to backup California's Third Quarter Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity. [Operator Instructions] Today's call is being recorded and a copy of the recording will be available later today on the company's Investor Relations website.
Today's presentation will also include non-GAAP measures. The reconciliation for these and additional required information is available in the earnings press release, which is available on the company's Investor Relations website. The reference presentation is also available on the company's Investor Relations website.
Before we begin, we would like to direct everyone to the company's safe harbor statement on forward-looking statements included in both the earnings release and the earnings presentation.
I would like to now turn the conference call over to Mr. Jared Wolff, Banc of California's President and Chief Executive Officer. Please go ahead, sir.
Jared Wolff
Good morning, and welcome to Banc of California's third quarter earnings call. Joining me on today's call is Lynn Hopkins, our Chief Financial Officer, who will talk in more detail about our quarterly results.
During the third quarter, we continued to capitalize on the core strength of our franchise, which is our ability to deliver on clients' needs in our markets in an exceptional way. This enables us to consistently add new commercial clients and expand existing relationships, which resulted in growth of noninterest-bearing deposits despite a rapidly rising rate environment that has put a premium on low-cost deposits.
The rapid increase in rates and expectation of further rate increases has made for a challenging operating environment, but our core earnings power demonstrated our ability to continue to drive earnings despite a slightly smaller balance sheet, which was primarily a result of lower warehouse balances.
Our strong earnings power, combined with the actions we took during the first quarter to mitigate the impact of rising rates on our investment portfolio resulted in growth in tangible book value per share this quarter, excluding the impact of the Deepstack acquisition and even as we continue to implement our stock repurchase program.
We recorded another quarter of core double-digit annualized loan growth, excluding warehouse. At the start of the quarter, we continue to see the same level of business development momentum that we experienced in the second quarter.