BANC OF CALIFORNIA (BANCL) has reported 12.63 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $17.20 million in the quarter, compared with $19.69 million for the same period last year.

Revenue during the quarter grew 5.32 percent to $92.80 million from $88.11 million in the previous year period. Net interest income for the quarter rose 19.69 percent over the prior year period to $80.48 million. Non-interest income for the quarter fell 29.68 percent over the last year period to $14.90 million.

BANC OF CALIFORNIA has made provision of $2.58 million for loan losses during the quarter, up 704.67 percent from $0.32 million in the same period last year.

Net interest margin contracted 20 basis points to 3.19 percent in the quarter from 3.39 percent in the last year period. Efficiency ratio for the quarter deteriorated to 78.76 percent from 72.81 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.

"Our core commercial banking business continued to expand during the first quarter as we saw strong loan originations and net commercial loan growth of 5% for the quarter," said Hugh Boyle, Interim chief executive officer and Chief Risk Officer of Banc of California. "We delivered on many of the items we outlined earlier this year, including responsible and disciplined growth, strong and stable asset quality, focus and optimization of our business, and strong corporate governance. During the first quarter, we accelerated and completed a number of strategic actions designed to better position the Company to deliver core, sustainable earnings. As a result of these actions, our first quarter financial results included various non-recurring items, both related to the sale of the Banc Home Loans Division, as well as related to corporate restructuring efforts tied to our efficiency improvement initiatives. The Company has materially improved our corporate governance during the quarter by separating the CEO and Chairman of the Board roles, adopting a more rigorous related party transaction policy, issuing pay-for-performance measures for executive management and announcing new board members who deepen our risk management, governance and shareholder representation at the board level.”

Investments stood at $3,297.81 million as on Mar. 31, 2017, up 25.58 percent or $671.84 million from year-ago. Shareholders equity stood at $985.75 million as on Mar. 31, 2017, up 13.63 percent or $118.22 million from year-ago.

Return on average assets moved down 28 basis points to 0.62 percent in the quarter from 0.90 percent in the last year period. At the same time, return on average equity decreased 342 basis points to 6.96 percent in the quarter from 10.38 percent in the last year period.

Nonperforming assets moved down 56.07 percent or $24.97 million to $19.57 million on Mar. 31, 2017 from $44.54 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.18 percent in the quarter, down from 0.46 percent in the last year period.

Equity to assets ratio was 8.92 percent for the quarter, down from 9.02 percent for the previous year quarter. Average equity to average assets ratio was 8.95 percent for the quarter, up from 8.64 percent for the previous year quarter.