Banc of California, Inc.

AI-generated fair value estimate for this company.

Method: Excess-return (Gordon-growth residual income) model on tangible book value: Value = TBVPS x (ROTCE - g) / (Ke - g). TBVPS = $16.44 (Q2 2026, post securities repositioning). Normalized ROTCE = 12.0% (midpoint of management's 11.5%-12.5% Q4 2026 exit-rate target). Cost of equity (Ke) = 10.5%. Long-run sustainable growth (g) = 5.0%. Implied justified P/TBV = (0.12-0.05)/(0.105-0.05) = 1.27x; 1.27 x $16.44 = ~$20.9/sh.

Reasoning: BANC is a bank whose value depends on the spread between return on tangible equity and cost of equity applied to a compounding tangible book base, not unlevered free cash flow, so an excess-return/residual-income model on TBV is the standard framework; the Q2 2026 GAAP loss reflects one-time repositioning charges, so normalized exit-rate ROTCE guidance is used instead.