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Los Angeles-based Banc of California reported an unexpected $251.3 million loss Wednesday among its second-quarter results.
The loss comes at the confluence of three moves the bank defended as better for its long-term health.
The bank initiated the sale of $827 million in commercial real estate and multifamily construction loans. That maneuver was meant to "reduce selected credit exposures and lower the potential for future credit-related earnings volatility," Banc of California said. Transactions of loans transferred to held-for-sale during the second quarter should close in the third, the bank said. Buyers were not disclosed.
Banc of California also retired $385 million in subordinated debt ahead of "a significantly higher interest rate reset," the lender disclosed Wednesday.
#banc #california #loss #second
Los Angeles-based Banc of California reported an unexpected $251.3 million loss Wednesday among its second-quarter results.
The loss comes at the confluence of three moves the bank defended as better for its long-term health.
The bank initiated the sale of $827 million in commercial real estate and multifamily construction loans. That maneuver was meant to "reduce selected credit exposures and lower the potential for future credit-related earnings volatility," Banc of California said. Transactions of loans transferred to held-for-sale during the second quarter should close in the third, the bank said. Buyers were not disclosed.
Banc of California also retired $385 million in subordinated debt ahead of "a significantly higher interest rate reset," the lender disclosed Wednesday.
#banc #california #loss #second
3 days ago
