Banc of California falls after raising loan-loss provisions amid CRE worries

Banc of California

23/07/2024 13:56

** Shares of Banc of California  BANC.N  fall ~8% to $13.51
premarket 
    ** BANC hikes its provisions for credit losses to $11 mln vs
$2 mln in year-ago period 
    ** Lender says hike driven by higher net charge-offs and
higher qualitative reserves for office loans and other
concentrations of credit 
    ** However, BANC adds commercial loan charge-offs in the
quarter were not indicative of overall portfolio performance
    ** Office loans within the commercial real estate sector at
regional banks have been central to investor worries since
stress earlier this year at peer New York Community Bancorp
 NYCB.N 
    ** Banks across the industry have hiked provisions for
office buildings, which continue to remain empty post-pandemic,
while higher interest rates keep options to refinance the
properties in check 
    ** Office loans at BANC account for 6.7% of its total CRE
loan book and 3.9% of all loans 
    ** As of last close, stock was up 9% YTD

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))