Banc of California, Inc. (NYSE:BANC) Q1 2022 Earnings Conference Call April 21, 2022 1:00 PM ET
Company Participants
Jared Wolff - President and CEO
Lynn Hopkins - CFO
Conference Call Participants
Timur Braziler - Wells Fargo
Matthew Clark - Piper Sandler
Gary Tenner - D.A. Davidson
David Feaster - Raymond James
Kelly Motta - KBW
Andrew Terrell - Stephens
Operator
Hello, and welcome to Banc of California's First Quarter Earnings Conference call. [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 including in both the Earnings Release and the Earnings Presentation.
I would like to now turn the conference 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 first 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.
We had a great start to the year with many positive trends in actions that have continued to drive our financial performance forward high quality loan growth, solid inflows of noninterest-bearing deposits, margin expansion, higher levels of noninterest income and strong asset quality. These efforts directly resulted in an increase in our adjusted pretax, pre-provision income, which was up 10% from the prior quarter. While our adjusted pre-tax pre-provision return on average assets increased 16 basis points to 1.55%.
The increased level of returns reflects our franchise momentum, representing both our ability to continue generating profitable organic growth and the accretive benefits of the Pacific Mercantile acquisition. As always we will also remain focused on growing and deploying capital to enhance our franchise value.
As previously reported, we recovered over $31 million related to a loan previously charged off in 2019, which contributed to growth in our tangible book value. We also successfully redeemed all of our Series E preferred stock in the quarter, an authorized and initiated an opportunistic stock repurchase program.