The stock prices of some of the largest publicly traded banks in Los Angeles County have been up and down amid recent announcements from the financial institutions.
For example, when Brentwood-based Banc of California Inc. announced after the market closed on Oct. 1 that Ken McMullen joined the bank as treasurer and executive vice president, its stock price went down by 1.1% the following day to close at $13.89.
Shares closed at $14.01 on Oct. 10 on the New York Stock Exchange.
When East West Bancorp Inc. in Pasadena, announced on the morning of Sept. 9 that it was marking 25 years on the Nasdaq, its share price climbed by nearly 2%, from a close on Sept. 6 of $78.73 to a close of $80.14 on Sept. 9.
The stock closed at $85.11 on Oct. 10 on the Nasdaq market.
And when American Business Bank in downtown reported its quarterly earnings before the market opened on July 29, its share price closed by nearly 1% higher at $ 36.30 from the close on July 26 of $36. The stock price then got knocked around for the next two and a half months, moving from $34.60 to close at $38 on Oct. 8, $1 off the 52-week high price of $39 reached at the end of January.
The stock closed at $37.88 on Oct. 9 on the over the counter market.
Banks see increase in share price this year
As of the close on Oct. 9 of $37.88, American Business Bank’s stock price has improved by about 6% since the beginning of the year when its shares closed on Jan. 2 at $35.70.
In its most recent earnings, the bank reported net income of $9.5 million ($1.02 a share) for the quarter ended June 30, an increase of 2% compared to the net income of $9.3 million ($1.01) in the same period of the previous year. Total assets increased by a fraction of a percent from the second quarter of the prior year to $3.9 billion.
Leon Blankstein, the bank’s chief executive, said that the key to its success is bringing in new clients.
“We currently have a strong deposit pipeline of new customers and new relationships who joined the Bank recently that will drive growth in the last half of the year,” Blankstein said in a statement. “Additionally, the potential for a reduction in interest rates by the Federal Reserve in the last half of the year could relieve some of the upward pressure on the cost of deposits.”
The Fed on Sept. 18 cut the interest rate by a half-percentage point, to a range of 4.75% to 5% from its 23-year high of 5.25% to 5.50%. It was the first rate reduction since March 2020. Another cut is expected.
East West Bancorp and Banc of California also reported their quarterly results at the end of July.
For the second quarter ending June 30, East West reported on July 23 net income of $288 million ($2.06 a share), compared with net income of $312 million ($2.20) in the same period of the previous year. Total assets increased by nearly 6% from the second quarter of the prior year to $72.5 billion.
Dominic Ng, chief executive of East West Bancorp, said that he was confident that the bank’s diversified lending approach and disciplined underwriting and monitoring standards will serve it well through the cycle.
“East West continues to operate from a position of capital strength and remains committed to delivering top-tier shareholder returns,” Ng said in a statement.
The bank’s stock price has increased by nearly 20% from the start of the year when it closed at $71.34 on Jan. 2 and as of Oct. 9 when it closed at $85.27.
Banc of California reported on July 23 net income of $20.4 million (12 cents a share) for the quarter ending June 30. That is a significant improvement from the net loss of $207 million ($2.67) in the same period of the previous year. Total assets decreased by 8% from the second quarter of the prior year to $35.2 billion.
The bank had a year-to-date increase of 8% from the close on Jan. 2 of $13.01 and the close of $14.07 on Oct. 9.
Other publicly traded banks in Los Angeles County include RBB Bancorp in the City West neighborhood north of downtown, Hanmi Financial Corp. in Koreatown, Cathay General Bancorp in Chinatown, Hope Bancorp Inc. in Koreatown, Broadway Financial Corp. in Hancock Park and Preferred Bank in downtown.
