BANC

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Second Quarter 2026 Results

Press Release

Banc of California, Inc. Reports Second Quarter 2026 Financial Results and Announces Strategic Balance Sheet

Repositioning to Enhance Long-Term Earnings

Company Release – 7/29/2026

Quarter Results

9%

Loan Average

Annualized Growth

12%

Deposit Annualized

Growth

$2.3 billion

Securities Repositioning

$18.38

Book Value Per Share

$16.44

Tangible Book Value

Per Share(1)

$(1.61)

Loss Per Share

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the

parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the second quarter ended

June 30, 2026.

During the second quarter, the Company completed a strategic reallocation of capital toward higher return opportunities to further

strengthen long-term earnings, expand net interest margin, and increase balance sheet flexibility. The Company took three specific actions

including (i) the repositioning of $2.3 billion of lower-yielding securities, (ii) initiating the sale of $827.0 million of selected commercial

real estate and multi-family construction loans, and (iii) the retirement of $385.0 million of subordinated debt prior to higher contractual

interest reset.

The Company transferred $2.3 billion of lower-yielding held-to-maturity securities to available-for-sale, and subsequently sold and

redeployed a portion of the proceeds into higher-yielding, shorter-duration available-for-sale securities. The securities repositioning

generated a 276 basis point yield pickup on redeployed balances, reduced portfolio duration, and improved the risk-weighted asset profile

of the securities portfolio, all while maintaining capital ratios significantly above “well capitalized” regulatory thresholds.

The Company also commenced a targeted sale process of $827.0 million of commercial real estate and multi-family construction loans to

reduce selected credit exposures and lower the potential for future credit-related earnings volatility. Following a competitive loan sale

process, the Company has entered into purchase and sale agreements for the loans transferred to held-for-sale during the quarter and

expects the transactions to close in the third quarter. In addition, the Company retired $385.0 million of subordinated debt prior to a

significantly higher interest rate reset. Taken together, these actions are expected to immediately improve net interest margin, support

higher recurring earnings, and accelerate organic capital generation.

The Company reported a net loss available to common and equivalent stockholders of $251.3 million, or $(1.61) per diluted common

share, reflecting the near-term impact of these strategic actions.

Jared Wolff, Chairman & CEO of Banc of California, commented, “During the second quarter, we made a strategic decision to reallocate

capital toward opportunities that we believe will enhance long-term returns for our shareholders. We implemented that strategy through

three complementary actions including a securities repositioning, a targeted loan sale and the retirement of higher-cost subordinated debt,

that together create a more efficient balance sheet and position the Company for even stronger long-term financial performance."

Mr. Wolff continued, "These actions resulted in significant one-time charges, but they increase our long-term earnings power, improve

capital efficiency and provide greater financial flexibility to support future growth. Just as importantly, they allow us to focus our capital

on the businesses, clients and markets where we see the greatest opportunities to create shareholder value.”

(1) Non-GAAP measure; refer to section 'Non-GAAP Measures'

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Second Quarter 2026 Financial Highlights:

•Executed a securities repositioning to drive higher recurring earnings power, including the sale of $2.3 billion of lower-yielding

securities and partial redeployment of $1.7 billion into higher-yielding shorter-duration securities, with the remaining proceeds

expected to be invested in the third quarter of 2026. The repositioning generated a 276 basis point yield pickup on redeployed balances

and resulted in a $256.7 million pre-tax loss on securities.

•Commenced a targeted loan sale process involving $827.0 million of loans to reduce selected exposures, enhance capital efficiency,

and improve the risk profile of the loan portfolio. Total provision expense of $161.8 million includes the impact of transferring these

loans to held for sale at the lower of cost or market value.

•Retired $385.0 million of subordinated debt prior to a significantly higher interest rate reset, reducing future funding costs and

supporting stronger pre-tax pre-provision earnings.

•Average loans increased $556.1 million, or 2.3%, during the quarter, driven by $2.8 billion of loan production and

disburseme

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Banc of California, Inc. Reports First Quarter Diluted Earnings per Share of $0.39, Up 50% Year over Year;

Net Interest Margin Expands to 3.24%; Positive Operating Leverage Continues

Company Release – 4/22/2026

Quarter Highlights

$0.39

Earnings Per Share

$19.80

Book Value Per Share

$17.77

Tangible Book Value

Per Share(1)

3.24%

Net Interest Margin

4%

Loan Average Annualized Growth

4%

Noninterest-bearing Deposit Average Annualized Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2026. The Company reported net earnings available to common and equivalent stockholders of $62.0 million, or $0.39 per diluted common share, for the first quarter of 2026, compared to $67.4 million, or $0.42 per diluted common share for the fourth quarter of 2025.

During the quarter, the Company extended its existing $300 million stock repurchase program through March 2027 and announced plans to redeem $385 million of subordinated debt, reflecting continued capital flexibility and commitment to creating value for our shareholders.

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our first quarter results reflect disciplined execution and continued strength in our core earnings drivers. We delivered positive operating leverage and significant earnings growth year over year, supported by net interest margin expansion, disciplined expense management, and continued progress in improving the mix and earnings power of the balance sheet. Supported by our healthy capital and liquidity position, we also efficiently deployed capital through opportunistic share repurchases and announced the redemption of subordinated debt. As we look ahead, we are well positioned for continued earnings growth, supported by strong pipelines, embedded asset repricing opportunities, and our attractive market position.”

First Quarter 2026 Financial Highlights:

•Total revenue of $286.9 million, up 8% year over year, with pre-tax pre-provision income(1) of $105.6 million, up 28% year over year.

•Net interest margin expanded 4 basis points to 3.24% compared to fourth quarter 2025, driven by an 11 basis point decline in deposit costs.

•Average total deposits increased by $103.4 million, and average noninterest-bearing deposits grew $81.2 million to 28.9% of average total deposits.

•First quarter loan production and disbursements totaled $2.1 billion, with a weighted average interest rate on production of 6.65%, supporting our balance sheet remixing and providing embedded earnings upside as higher-rate production replaces lower-yielding fixed-rate and hybrid loans.

•Average total loans increased $267.5 million.

•Total noninterest expense of $181.4 million, down 1% year over year.

•Maintained allowance for credit losses coverage of 1.12% of total loans held for investment.

•Repurchased $31.9 million of common stock and common equivalent stock at a weighted average price per share of $18.68.

•Growth in book value per share to $19.80 and tangible book value per share(1) to $17.77, up 9% and 10% year over year, respectively.

•Healthy capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.54% Tier 1 capital ratio and 10.18% CET 1 capital ratio.

(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

(2)Capital ratios for March 31, 2026 are preliminary

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INCOME STATEMENT HIGHLIGHTS

Three Months Ended

March 31,December 31,March 31,

Summary Income Statement202620252025

(In thousands)

Total interest income$407,442 $416,948 $406,655

Total interest expense155,825 165,586 174,291

Net interest income251,617 251,362 232,364

Provision for credit losses9,800 12,500 9,300

Gain on sale of loans7 18 211

Other noninterest income35,321 41,553 33,439

Total noninterest income35,328 41,571 33,650

Total revenue286,945 292,933 266,014

Total noninterest expense181,391 180,644 183,653

Earnings before income taxes95,754 99,789 73,061

Income tax expense23,802 22,398 19,493

Net earnings71,952 77,391 53,568

Preferred stock dividends9,947 9,947 9,947

Net earnings available to common

and equivalent stockholders$62,005 $67,444 $43,621

Diluted earnings per share$0.39 $0.42 $0.26

Net Interest Income and Margin

First Quarter of 2026 Compared to Fourth Quarter of 2025

Net interest income increased by $0.3 million to $251.6 million for the first quarter, up from $251.4 million in the fourth quarter. This increase was primarily driven by a $9.7 million decrease in interest expense on deposits, reflecting lower interest rates due to the full quarter impact of the federal funds rate cuts of 50 basis points in the fourth quarter and two fewer days in the quarter. Additionally, interest income from investment securities

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Banc of California, Inc. Reports Fourth Quarter Diluted Earnings per Share of $0.42, Up 11% Quarter over Quarter; Full Year Diluted Earnings per Share of $1.17, Significant Growth Year over Year

Company Release – 1/21/2026

Quarter Highlights

$0.42

Earnings Per Share

$19.56

Book Value Per Share

$17.51

Tangible Book Value

Per Share(1)

15%

Loan Annualized Growth

11%

Noninterest-bearing Deposits Annualized Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the fourth quarter and year ended December 31, 2025. The Company reported net earnings available to common and equivalent stockholders of $67.4 million, or $0.42 per diluted common share, for the fourth quarter of 2025, compared to $59.7 million, or $0.38 per diluted common share for the third quarter of 2025. For the full year 2025, net earnings available to common and equivalent stockholders of $189.2 million, or $1.17 per diluted common share, compared to $87.1 million, or $0.52 per diluted common share for the full year 2024. On an adjusted basis, net earnings available to common and equivalent stockholders of $218.2 million, or $1.35 per diluted common share, compared to $135.4 million, or $0.80 per diluted common share for the full year 2024.(1)

Fourth Quarter and Full Year 2025 Financial Highlights:

•Total loans and leases of $25.2 billion increased by 15% for the quarter annualized and 6% year over year.

•Fourth quarter loan production and disbursements totaled $2.7 billion with a weighted average interest rate on production of 6.83%, and heavily concentrated toward the end of the quarter. Full year loan production and disbursements of $9.6 billion, up 31% year over year.

•Noninterest-bearing deposits of $7.8 billion increased by 11% annualized from 3Q25, representing 28% of total deposits.

•Net interest margin of 3.20% for the quarter, and 3.15% for the year reflecting a 30 basis point expansion year over year, driven by improved funding mix and lower deposit costs. Late fourth quarter loan production will have a full quarter benefit to net interest income in 1Q26.

•Total revenue of $292.9 million increased over 2% and pre-tax pre-provision income(1) of $112.3 million increased 10% from 3Q25 reflecting improved operating leverage.

•Noninterest expenses of $180.6 million decreased by $5.0 million from 3Q25 contributing to an efficiency ratio(1) decrease to 59.35% from 62.05% in 3Q25.

•Credit quality metrics stable with quarter-over-quarter reductions in nonperforming, criticized, and special mention loans and leases, as a percentage of total loans and leases held for investment, of 8 basis points, 24 basis points, and 27 basis points, respectively. On a year-over-year basis, there were reductions in nonperforming, criticized, and special mention loans and leases, as a percentage of total loans and leases held for investment, of 16 basis points, 195 basis points, and 278 basis points, respectively.

•Stable capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.34% Tier 1 capital ratio and 10.01% CET 1 capital ratio and continued growth in book value per share to $19.56, up 2% vs 3Q25, and tangible book value per share(1) to $17.51, up 3% vs 3Q25.

(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

(2)Capital ratios for December 31, 2025 are preliminary

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Jared Wolff, Chairman & CEO of Banc of California, commented, “Our fourth quarter results capped a year of strong execution, reflect the continued momentum of our core earnings engine, and validate our ongoing business strategy. During the quarter we delivered double-digit annualized loan and noninterest-bearing deposit growth, and achieved double-digit return on average tangible common equity, all while maintaining disciplined expense management and stable credit quality. These results underscore the strength of our franchise and our ability to consistently deliver profitable growth.”

Mr. Wolff continued, “Throughout 2025, we made significant progress scaling our franchise, strengthening our balance sheet, and improving our core profitability drivers. We grew operating leverage, improved credit metrics, and delivered a meaningful increase in tangible book value per share while opportunistically returning capital to shareholders. As we look ahead into 2026, we believe we are well positioned to continue building on this momentum. Our fourth quarter loan growth came later in the quarter, which should provide a tailwind for the first quarter 2026. With our strong market position, talented teams, and continued execution, we expect 2026 to be another strong year for Banc of California.”

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INCOME STATEMENT HIGHLIGHTS

Three Months EndedYear Ended

December 31,September 30,December 31,

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Banc of California, Inc. Reports Diluted Earnings per Share of $0.38 for the Third Quarter

Company Release – 10/22/2025

$0.38

Earnings Per Share

$19.09

Book Value Per Share

$16.99

Tangible Book Value

Per Share(1)

5%

Total Revenue Growth

17%

Pre-Tax Pre-Provision Income Growth(1)

9%

Noninterest-bearing

Deposits Annualized Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the third quarter ended September 30, 2025. The Company reported net earnings available to common and equivalent stockholders of $59.7 million, or $0.38 per diluted common share, for the third quarter of 2025. This compares to net earnings available to common and equivalent stockholders of $18.4 million, or $0.12 per diluted common share, for the second quarter of 2025. On an adjusted basis, net earnings available to common and equivalent stockholders were $48.4 million for the second quarter of 2025, or $0.31 per diluted common share.(1) The second quarter of 2025 included provision expense, net of tax, of an additional $20.2 million taken during the quarter as a result of transferring $506.7 million of loans to held for sale at their estimated fair value. The second quarter also included a one-time non-cash income tax expense of $9.8 million primarily due to the revaluation of deferred tax assets related to California state tax changes passed as part of the 2025 California budget.

Third Quarter of 2025 Financial Highlights:

•Total revenue of $287.7 million increased over 5% and pre-tax pre-provision income(1) of $102.0 million increased 17% from 2Q25 driven by strong net interest income growth, margin expansion, and continued expense discipline.

•Net interest margin up 12 basis points from 2Q25 to 3.22% driven by a higher average yield on loans and leases increasing by 12 basis points and lower cost of funds decreasing by 5 basis points from 2Q25.

•Noninterest-bearing deposits of $7.6 billion increased 9% annualized from 2Q25. Noninterest-bearing deposits represented 28% of total deposits at the end of the third quarter, up from 27% at the end of the second quarter.

•Loan production and disbursements totaled $2.1 billion with a weighted average interest rate on production of 7.08%.

•Liquidated $263.5 million of held for sale commercial real estate loans through strategic loan sales and payoffs.

•Credit quality metrics remained stable with 4% reduction in criticized loans from 2Q25. The allowance for credit losses ratio increased to 1.12%, up from 1.07% in 2Q25.

•Noninterest expenses of $185.7 million remained flat from 2Q25 resulting in an efficiency ratio(1) decrease to 62.05% from 65.50% in 2Q25.

•Repurchases of 2.2 million shares of common and common equivalent stock at a weighted average price per share of $16.48, or $35.5 million in the aggregate, during the third quarter, and 13.6 million shares of common stock at a weighted average price per share of $13.59, or $185.5 million in the aggregate, year-to-date.

•Strong capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.56% Tier 1 capital ratio and 10.14% CET 1 capital ratio and continued growth in book value per share to $19.09, up 3% vs 2Q25, and tangible book value per share(1) to $16.99, up 3% vs 2Q25.

(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

(2)Capital ratios for September 30, 2025 are preliminary

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Jared Wolff, Chairman & CEO of Banc of California, commented, “Our third quarter results reflect the strength of our core earnings engine and the disciplined execution of our business plan by our teams. We continued to deliver double digit earnings growth on an adjusted basis, expanded operating leverage, and meaningfully improved profitability. We further strengthened our balance sheet with higher capital levels, strong loan production, growth in relationship deposits, and proactive credit management. As we continue to remix the balance sheet, we expect further earnings growth.”

Mr. Wolff added: “Our teams remain focused on executing our strategy, deepening client relationships, and optimizing our balance sheet. Given our attractive footprint and strong position in key markets, we believe we are uniquely positioned to continue this momentum. Looking ahead, we see a good pipeline for the fourth quarter and remain confident that our disciplined approach positions us well to drive profitable, long-term growth, and create value for our shareholders.”

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INCOME STATEMENT HIGHLIGHTS

Three Months EndedNine Months Ended

September 30,June 30,September 30,September 30,

Summary Income Statement20252025202420252024

(In thousands)

Total interest income$432,541 $420,509 $446,893 $1,259,705 $1,388,186

Total interest expense179,097 180,293 214,718 533,681 6

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Banc of California, Inc. Reports Second Quarter Results and 9% Annualized Loan Growth

Company Release – 7/23/2025

$0.12

Earnings Per Share

$0.31

Adjusted Earnings

Per Share(1)

$18.58

Book Value Per Share

$16.46

Tangible Book Value

Per Share(1)

9.92%

CET1 Ratio

9%

Annualized Loan Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the second quarter ended June 30, 2025. The Company reported net earnings available to common and equivalent stockholders of $18.4 million, or $0.12 per diluted common share, for the second quarter of 2025. On an adjusted basis, net earnings available to common and equivalent stockholders were $48.4 million for the quarter, or $0.31 per diluted common share.(1) This compares to net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter of 2025. The second quarter included provision expense, net of tax, of an additional $20.2 million taken during the quarter as a result of transferring $506.7 million of loans to held for sale at their estimated fair value. The second quarter also included a one-time non-cash income tax expense of $9.8 million primarily due to the revaluation of deferred tax assets related to California state tax changes passed as part of the 2025 California budget.

Second Quarter of 2025 Financial Highlights:

•Total revenue of $272.8 million increased 3% and pre-tax pre-provision income of $87.0 million increased 6% from 1Q25 driven by solid loan growth combined with continued prudent expense management.

•Total loans of $24.7 billion increased by 2%, or 9% annualized, from 1Q25 driven by growth in lender finance, fund finance, and purchased single-family residential loans.

•Strong loan originations totaled $2.2 billion including production, purchased loans, and unfunded new commitments with a weighted average interest rate on production of 7.29%.

•Total deposits of $27.5 billion increased by 1%, and interest-bearing deposits of $20.1 billion increased by 2% from 1Q25.

•Net interest margin up 2 basis points vs 1Q25 to 3.10% driven by a higher average yield on loans and leases increasing by 3 basis points and flat cost of funds from 1Q25.

•Commenced sale process for $506.7 million of loans with expected proceeds net of reserve release of 95%. Completed sales for $30.5 million of such loans. The remaining $476.2 million was transferred to held for sale at a lower of cost or market value of $441.2 million.

•Credit quality metrics improved substantially primarily due to the transfer of loans to held for sale in connection with the pending strategic loan sales. Nonperforming, classified, and special mention loans and leases, as a percentage of total loans and leases held for investment, declined by 19 basis points, 46 basis points, and 115 basis points, respectively, from 1Q25.

•Results include $9.8 million of one-time non-cash income tax expense largely driven by the reevaluation of deferred tax assets due to California state tax changes enacted under the 2025 budget.

•Repurchases of 8.8 million shares of common stock at a weighted average price per share of $12.65, or $111.5 million in the aggregate, during the second quarter, and 11.5 million shares of common stock at a weighted average price per share of $13.05, or $150.0 million in the aggregate, in the first half of the year. As of June 30, 2025, the Company had $150.0 million remaining under the current stock repurchase authorization.

(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

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•Strong capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.30% Tier 1 capital ratio and 9.92% CET 1 capital ratio and continued growth in book value per share to $18.58, up 2% vs 1Q25 and tangible book value per share(2) to $16.46, up 2% vs 1Q25.

(2)Capital ratios for June 30, 2025 are preliminary

•

Jared Wolff, President & CEO of Banc of California, commented, “Our second quarter results reflect the strength of our core earnings engine and our disciplined execution. We delivered double digit growth in adjusted earnings per share, our third consecutive quarter of strong loan growth, expanded net interest income, and grew pre-tax pre-provision profitability, all while proactively managing credit risk. The decisive actions we took to reposition a portion of our balance sheet—through the opportunistic sale of select CRE loans—have enhanced our credit profile and strengthened our balance sheet, positioning us to continue generating consistent and high quality earnings. We have increased tangible book value per share for five straight quarters. With a healthy capital base, improving credit metrics, and a robust pipeline of high-qualit

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Banc of California, Inc. Reports First Quarter Diluted Earnings per Share of $0.26 and Loan Growth of 6% Annualized in the First Quarter; Upsizes Stock Buyback Program to $300 Million

Company Release – 4/23/2025

$0.26

Earnings Per Share

$18.17

Book Value Per Share

$16.12

Tangible Book Value

Per Share(1)

10.43%

CET1 Ratio

6%

Annualized Loan Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2025. The Company reported net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter of 2025. This compares to net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter of 2024.

The Company also announced today an upsize of its stock repurchase program, first announced on March 17, 2025, from $150 million to $300 million, inclusive of $150.0 million purchased through April 21, 2025, and expanded to cover both the Company's common stock and depositary shares representing its preferred stock.

First Quarter of 2025 Financial Highlights:

•Total loans of $24.1 billion grew by 6% annualized or $344.9 million from 4Q24 driven by increases in nearly all loan segments and highlighted by commercial and industrial ("C&I") growth in the lender finance, fund finance, and warehouse loan portfolios.

•New loan originations totaled $2.6 billion including production, purchased loans, and unfunded new commitments with a weighted average interest rate on production of 7.20%.

•Repurchase of $38.5 million of common stock with a weighted average price per share of $14.36 during the first quarter, and $150.0 million with a weighted average price per share of $13.05 cumulatively through April 21, 2025, or 6.8% of common shares outstanding as of March 17, 2025, the date that the $150 million authorization was announced.

•Net interest margin up 4 basis points vs 4Q24 to 3.08% mainly driven by lower average costs of deposits.

•Average total cost of deposits declined by 14 basis points to 2.12% vs 4Q24.

•Average noninterest-bearing deposits stable at 29% of average total deposits.

•High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $15.1 billion at March 31, 2025, which was 2.1 times greater than uninsured and uncollateralized deposits.

•Strong capital ratios(1) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.83% Tier 1 capital ratio and 10.43% CET 1 capital ratio.

•Continued growth in book value per share to $18.17, up 2.2% vs 4Q24 and tangible book value per share(2) to $16.12, up 2.5% vs 4Q24

•Strong credit quality with low net charge-offs at 0.24% of average loans and leases. Appropriate credit reserves with the ACL ratio mostly flat at 1.10% of total loans and leases and the economic coverage ratio(2) at 1.66%.

(1)Capital ratio for March 31, 2025 is preliminary

(2)Non-GAAP measure; refer to section 'Non-GAAP Measures'

1

Jared Wolff, President & CEO of Banc of California, commented, “Our first quarter results came in as expected, with positive trends in our core earnings drivers including net interest margin expansion, solid loan growth, and prudent expense management. We have continued to capitalize on our strong market position to bring in new attractive client relationships, providing us with high quality lending opportunities and stable deposits. As a result, both book value and tangible book value per share increased, and liquidity levels remained high. Given our healthy capital and liquidity position, and our commitment to delivering excellent, sustainable returns to our shareholders, we announced an opportunistic share buyback program in mid-March and have repurchased 6.8% of our shares as of April 21."

Mr. Wolff continued, “While the economic outlook remains uncertain, demand in our key markets continues to support expansion in our net interest margin, loan and deposit growth, and improvement in operating efficiency as we grow revenue while managing our expense levels. Our capital, liquidity, and credit loss coverage positions remain healthy, allowing us to operate comfortably under a variety of economic scenarios, including the market volatility we are currently experiencing. We remain committed to leveraging our position of strength to serve our customers and help them navigate successfully through these volatile times.”

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INCOME STATEMENT HIGHLIGHTS

Three Months Ended

March 31,December 31,March 31,

Summary Income Statement202520242024

(In thousands)

Total interest income$406,655 $424,519 $478,704

Total interest expense174,291 189,234 249,602

Net interest income232,364 235,285 229,102

Pro

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EXHIBIT 99.1

Exhibit 99.1

Banc of California, Inc. Reports Fourth Quarter Diluted Earnings per Share of $0.28, Reflecting Strong Year-Over-Year Net Interest Margin Expansion and Lower Noninterest Expenses

Company Release –  1/23/2025

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the fourth quarter and year ended December 31, 2024. The Company reported net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter of 2024. This compares to a net loss available to common and equivalent stockholders of $1.2 million, or a loss of $0.01 per diluted common share, for the third quarter of 2024. On an adjusted basis, net earnings available to common and equivalent stockholders were $41.4 million, or $0.25 per diluted common share for the third quarter.(1) The third quarter of 2024 included $60 million of pre-tax losses from repositioning a portion of the securities portfolio. For the full year 2024, we reported net income available to common and equivalent shareholders of $87.1 million, or $0.52 per diluted common share. On an adjusted basis, net income available to common and equivalent shareholders was $135.4 million, or $0.80 per diluted common shares.(1)

Update on Southern California Wildfires

The recent wildfires in Southern California have been devastating, severely impacting Los Angeles and the surrounding areas – home to our headquarters and where many of our clients and team members live and work. To support the recovery efforts, our charitable foundation has launched the Banc of California Wildfire Relief and Recovery Fund, which is dedicated to aiding relief efforts and rebuilding our community. To further our commitment, we have donated $1 million to the relief fund, standing in solidarity with Angelenos as we work together to rebuild and restore what has been lost. To date, we are not aware of any material impact on our loan portfolio, collateral or any of our facilities due to the Southern California wildfires. We are currently aware of four commercial properties and three residential properties that have been damaged or destroyed but all such collateral has insurance coverage in place and will continue to monitor and assess for potential exposure.

Financial Highlights for the Fourth Quarter and 2024 Fiscal Year

•

Net interest margin expansion of 11 basis points vs 3Q24 to 3.04% and 135 basis points year-over-year, driven by lower funding costs

•

Lowered funding costs by 27 basis points vs 3Q24 and 113 basis points year-over-year, reflecting benefits of prior balance sheet repositioning actions and improved funding mix

•

Average noninterest-bearing deposits grew to 29.1% of average total deposits, up from 27.7% in 3Q24 and 22.6% in 4Q23, driven by relationship-focused deposit growth strategy

1

•

Total loans of $23.8 billion grew 4.3% annualized or $254 million from 3Q24, driven by growth in warehouse lending, equity funds, and residential mortgage loan portfolios

•

Total noninterest expense declined 7.6% vs 3Q24 to $181.4 million and 50.1% year-over-year, driven by strong efficiency gains and achievement of our merger cost savings target. This reflects a 35.7% decrease in adjusted noninterest expense(1) year-over-year excluding acquisition, integration and reorganization costs and normalizing 4Q23 to include combined company expenses for a full quarter and incentive compensation adjusted to target.

•

Strengthened capital ratios with CET1 capital ratio(2) up 9 basis points vs 3Q24 to 10.55% and 41 basis points year-over year

•

Growth in book value per share to $17.78 and tangible book value per share(1) to $15.72

(1)

Non-GAAP measure; refer to section 'Non-GAAP Measures'

(2)

Capital ratio for 12/31/2024 is preliminary

Jared Wolff, President & CEO of Banc of California, commented, “Our strong fourth quarter results reflect continued momentum and consistent execution by our team. During the quarter, we achieved additional cost savings as well as a significant decline in our funding costs driven by our targeted reduction in deposit costs and the balance sheet repositioning actions that we completed earlier in the year. These actions helped drive an expansion in our net interest margin and increases in our net income, earnings per share, and level of returns.”

Mr. Wolff continued, “During the course of 2024, we made significant strides in strengthening our balance sheet and core earnings power. We believe we are well positioned to continue adding to our client base and expanding relationships with existing clients. Given the positive economic outlook, and the solid gains in loans and deposits generated by our teams in the fourth quarter, we believe we are well positioned to generate further

EX-99.1

2 ef20037541_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

Banc of California, Inc. Reports Third Quarter 2024 Financial Results Which Include Balance Sheet Repositioning

Company Release – 10/22/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the third quarter ended September 30, 2024. The Company reported a net loss available to common and equivalent stockholders of $1.2 million, or a loss of $0.01 per diluted common share, for the third quarter of 2024. On an adjusted basis, net earnings available to common and equivalent stockholders were $41.4 million, or $0.25 per diluted common share.(1) This compares to net earnings available to common and equivalent stockholders of $20.4 million, or $0.12 per diluted common share, for the second quarter of 2024. The third quarter of 2024 includes $60 million of pre-tax losses from repositioning a portion of the securities portfolio.

Third quarter highlights include:

•

Closed the sale of $1.95 billion of Civic loans in July which generated net proceeds of $1.91 billion. This sale increased our capital ratios and liquidity and allowed us to reposition a portion of our securities portfolio in Q3 and pay down higher-cost brokered deposits and borrowings.

•

Repositioned $742 million of available-for-sale securities resulting in a pre-tax loss of $60 million. Sold $742 million of securities with a weighted average yield of 2.94% and purchased $724 million of securities with a weighted average yield of 5.65%. Expected to increase interest income by approximately $4.8 million per quarter.

•

Net interest margin of 2.93%, an increase of 13 basis points from 2.80% in the second quarter, driven mainly by lower funding costs.

•

Average total cost of deposits and average total cost of funds decreased by 6 basis points and 13 basis points, respectively, to 2.54% and 2.82%. The declines in deposit and funding costs were driven mainly by the maturity of brokered time deposits (which decreased by $2.0 billion in the third quarter), while the $545 million payoff of Bank Term Funding Program borrowings also contributed to the decline in funding costs.

•

Average noninterest-bearing deposits increased to 28% of average total deposits for the third quarter, up from 27% in the second quarter.

•

Achieved Q4 2024 cost targets ahead of schedule with total noninterest expense of $196.2 million for the third quarter, down $7.4 million, or 4%, from the second quarter.

•

Strong capital ratios well above the regulatory “well capitalized” thresholds at September 30, 2024, including an estimated 16.98% Total risk-based capital ratio, 12.87% Tier 1 capital ratio, 10.45% CET1 capital ratio, and 9.83% Tier 1 leverage ratio.

1

•

Book value per share increased to $17.75 and tangible book value per share(1) increased to $15.63.

(1)

Non-GAAP measure; refer to section ‘Non-GAAP Measures’

Jared Wolff, President & CEO of Banc of California, commented, “During the third quarter, we made significant progress growing our core earnings and we achieved our year-end targets for net interest margin, noninterest expenses, and balance sheet metrics a quarter early. We strengthened our franchise through several strategic balance sheet repositioning actions including completing the sale of $1.95 billion of Civic loans, which had a positive impact on our capital and liquidity. We leveraged the proceeds and capital to reposition a portion of our securities portfolio and significantly reduce higher cost funding, which resulted in strong net interest margin expansion and increased our tangible book value per share and capital position. Furthermore, we continued to make solid progress reducing noninterest expenses, completed our core system conversion successfully, and consolidated 12 branches during the quarter.”

Mr. Wolff continued, “With these major balance sheet and operational initiatives behind us, Banc of California is now at an inflection point, shifting our focus from transforming our internal infrastructure to external growth. We are capitalizing on the strength of the franchise and balance sheet we have built and the exceptional customer experience we can offer to expand existing relationships and add attractive new client relationships. As economic conditions improve, we believe we are well positioned to increase our market share, expand our client roster, generate profitable growth and continue to enhance the long-term value of our franchise.”

2

INCOME STATEMENT HIGHLIGHTS

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

Summary Income Statement

2024

2024

2023

2024

2023

(In thousands)

Total interest income

$

446,893

$

462,589

$

446,084

$

1,388,186

$

1,503,760

Total interest expense

214,718

233,101

315,355

697,421

907,683

Net inter

EX-99.1

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EXHIBIT 99.1

Exhibit 99.1

Banc of California, Inc. Reports Second Quarter 2024 Financial Results

Company Release - 7/23/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the second quarter ended June 30, 2024. The Company recorded net earnings available to common and equivalent stockholders of $20.4 million, or $0.12 per diluted common share, for the second quarter of 2024. This compares to net earnings available to common and equivalent stockholders of $20.9 million, or $0.12 per diluted common share, for the first quarter of 2024.

Second quarter highlights include:

•

Average noninterest-bearing deposits higher by $196.5 million, or 3%, in the second quarter.

•

Net interest margin of 2.80%, an increase of 14 basis points from 2.66% in the first quarter.

•

Average total cost of deposits decreased by 6 basis points to 2.60% for the second quarter compared to 2.66% in the first quarter and average total cost of funds decreased by 7 basis points to 2.95% for the second quarter compared to 3.02% in the first quarter.

•

High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $16.9 billion at June 30, 2024, which was 2.5 times greater than uninsured and uncollateralized deposits.

•

Transferred $1.95 billion of CIVIC business-purpose residential loans with a fair value of $1.91 billion to held for sale at June 30, 2024. Sale closed on July 18, 2024, resulting in immediate increases in liquidity and capital ratios.

•

Nonperforming assets decreased to 0.37% of total assets at June 30, 2024, compared to 0.44% at March 31, 2024, primarily due to the loans transferred to held for sale.

•

Strong capital ratios well above the regulatory thresholds for "well capitalized" banks at June 30, 2024, including an estimated 16.57% Total risk-based capital ratio, 12.62% Tier 1 capital ratio, 10.27% CET1 capital ratio, and 9.51% Tier 1 leverage ratio.

•

Book value per share increased to $17.23 and tangible book value per share(1) increased to $15.07.

•

Successful core systems conversion completed on July 21, 2024.

(1)

Non-GAAP measure; refer to section 'Non-GAAP Measures'

1

Subsequent to quarter-end, Banc of California closed on the sale of $1.95 billion of CIVIC loans which had been moved to held for sale during the second quarter. The loan sale generated net proceeds of $1.91 billion and is expected to increase our CET 1 capital ratio by more than 30 basis points. We intend to use the proceeds primarily to pay down higher-cost brokered deposits and borrowings.

Jared Wolff, President & CEO of Banc of California, commented, “During the second quarter, we continued to make solid progress executing on our plan, strengthening our franchise, and improving our core earnings power. We further reduced our cost of funds, expanded the net interest margin, and grew average noninterest-bearing deposits in a rate environment that has remained challenging. We are on track with respect to controllable cost savings and are focused on building a valuable franchise for the long term with an enviable deposit base and core franchise.”

Mr. Wolff continued, “This is a transformational year for our company and we will remain focused on optimizing our business to drive long-term sustainable growth and profitability. Our recently completed sale of $1.95 billion of CIVIC loans positively impacts our capital and liquidity ratios, which we will leverage to further reposition our balance sheet and optimize core earnings power. We are well-positioned to continue improving profitability through net interest margin expansion and our expense reduction initiatives. I am thrilled about the opportunities ahead of us to leverage our strong market position and deliver our exceptional customer experience and unique platform to our expanded customer base.”

Mr. Wolff added, “Thanks to the tireless efforts and dedication of our team, we successfully completed our core system conversion this past weekend. We are now operating on a single system across our entire platform and we are now able to serve our clients in all our markets as the combined Banc of California.”

2

INCOME STATEMENT HIGHLIGHTS

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

Summary Income Statement

2024

2024

2023

2024

2023

(In thousands)

Total interest income

$

462,589

$

478,704

$

539,888

$

941,293

$

1,057,676

Total interest expense

233,101

249,602

353,812

482,703

592,328

Net interest income

229,488

229,102

186,076

458,590

465,348

Provision for credit losses

11,000

10,000

2,000

21,000

5,000

Gain (loss) on sale of loans

1,135

(448

)

(158,881

)

687

(155,919

)

Other noninterest income

28,657

34,264

30,799

62,921

64,228

Total noninterest income (loss)

2

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EXHIBIT 99.1

Exhibit 99.1

Banc of California, Inc. Reports First Quarter 2024 Financial Results with Improved Profitability and Strengthened Balance Sheet

Company Release - 4/23/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2024. The Company recorded net earnings available to common and equivalent stockholders of $28.2 million, or $0.17 per diluted common share, for the first quarter of 2024. On an adjusted basis, excluding the FDIC special assessment accrued for the first quarter, net earnings available to common and equivalent stockholders was $31.7 million, or $0.19 per diluted common share(1). This compares to a net loss of $492.9 million, or a loss of $4.55 per diluted common share, for the fourth quarter of 2023. The fourth quarter of 2023 included pre-tax amounts of $442.4 million of losses on security sales relating to our balance sheet repositioning strategy, merger costs of $111.8 million, and an FDIC special assessment of $32.7 million.

First quarter highlights include:

•

Net interest income increased by $88.1 million, or 58%, in the first quarter to $239.1 million, reflecting the benefits of our balance sheet repositioning which continued into the first quarter.

•

Net interest margin of 2.78%, an increase of 109 basis points from 1.69% in the fourth quarter.

•

The average total cost of deposits decreased by 28 basis points to 2.66% for the first quarter compared to 2.94% in the fourth quarter.

•

Improved overall deposit mix, with noninterest-bearing deposits increasing over $59 million in the first quarter and the noninterest-bearing percentage of total deposits increasing from 26% at December 31, 2023 to 27% at March 31, 2024.

•

Noninterest expenses declined by over $41 million to $210.5 million (excluding merger costs).

•

High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $16.8 billion at March 31, 2024, which was 2.4 times greater than uninsured and uncollateralized deposits.

•

Allowance for credit losses of 1.26% at March 31, 2024, up from 1.22% at December 31, 2023, after a first quarter provision for credit losses of $10.0 million.

•

Net charge-offs of $1.2 million, or 2 basis

points of average loans and leases.

•

Strong capital ratios well above the regulatory thresholds for "well capitalized" banks at March 31, 2024, including an estimated 16.43% Total risk-based capital ratio, 12.41% Tier 1 capital ratio, 10.12% CET1 capital ratio, and 9.14% Tier 1 leverage ratio.

1

•

Book value per share increased to $17.18 and tangible book value per share(1) increased to $15.07.

(1)

Non-GAAP measure; refer to section 'Non-GAAP Measures'

Jared Wolff, President & CEO of Banc of California, commented, “Our first full quarter results as a combined company reflect strong execution on the key initiatives that will lead to achieving the profitability targets we set for the fourth quarter of 2024. We began to realize the benefits of the balance sheet repositioning following the closing of the merger and generated a significantly higher level of net interest income and significantly lower operating expenses. Our deposit gathering engine generated an increase in noninterest-bearing deposits during the first quarter, which contributed to a lower average cost of deposits and the expansion in our net interest margin.”

Mr. Wolff continued, “We are positioned with a strong balance sheet that has good levels of capital, liquidity, and loan loss reserves, and a stable loan portfolio. While remaining disciplined and conservative in new loan originations, core loans grew 4% annualized in the quarter, offset by runoff in our discontinued portfolio.  We are benefitting from our market position, seeing good opportunities to bring over new banking relationships that provide both operating deposit accounts and high-quality loans. We remain on track with our initiatives to reduce both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets.”

2

INCOME STATEMENT HIGHLIGHTS

Three Months Ended

March 31,

December 31,

March 31,

Summary Income Statement

2024

2023

2023

(In thousands)

Total interest income

$

488,750

$

467,240

$

517,788

Total interest expense

249,602

316,189

238,516

Net interest income

239,148

151,051

279,272

Provision for credit losses

10,000

47,000

3,000

(Loss) gain on sale of loans

(448

)

(3,526

)

2,962

Loss on sale of securities

-

(442,413

)

-

Other noninterest income

34,264

45,537

33,429

Total noninterest income (loss)

33,816

(400,402

)

36,391

Total revenue

272,964

(249,351

)

315,663

Goodwill impairment

-

-

1,376,736

Acquisition, integration and reorganizat

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EXHIBIT 99.1

Exhibit 99.1

Banc of California, Inc. Reports Fourth Quarter 2023 Financial Results Following Completion of Transformational Merger with PacWest Bancorp

Company Release - 1/25/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California”), parent of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the fourth quarter and year ended December 31, 2023. On November 30, 2023, Banc of California and PacWest Bancorp closed their transformational merger, creating California’s premier business bank. As of December 31, 2023, Banc of California had total assets of $38.5 billion.

Fourth quarter highlights include:

●As a result of the impact of the merger and the balance sheet repositioning, total assets of $38.5 billion increased $1.7 billion and total loans increased $3.6 billion, or 16% from the prior quarter, resulting in a year-end loans to deposits ratio of 84%.

●Total deposits of $30.4 billion increased $3.8 billion, an increase of 14% from the prior quarter, and noninterest-bearing deposits of $7.8 billion increased $2.2 billion, or 39% from the prior quarter. Borrowings decreased $3.4 billion, or 54% from the prior quarter.

“Following the merger with PacWest, we have created California’s premier relationship-focused business bank.”

–   Jared Wolff

President & CEO

●Completed asset sales of $6.1 billion and completed paydown of $8.6 billion high-cost funding related to the balance sheet repositioning, which improved the mix of earning assets and reduced higher cost funding. Wholesale fundings as a percentage of total assets down to 17%, compared to 28% in the prior quarter.

●Improved overall deposit mix, with the period-end noninterest-bearing deposit percentage increasing from 21% of total deposits at the prior quarter-end to 26% at year-end and brokered time deposits decreasing from 15% of total deposits at the prior quarter-end to 12% at year-end.

●Significant decrease in unrealized losses on securities, with unrealized losses in accumulated other comprehensive income (“AOCI”) of $434 million at year-end compared to $879 million at the prior quarter-end, resulting from security sales and decreased market forward rates in the fourth quarter.

●High liquidity levels, with immediately available on-balance sheet liquidity and unused borrowing capacity of $17.2 billion, which was 2.5 times greater than uninsured and uncollateralized deposits. Cash as a percentage of total assets was 14%, down from 17% in the prior quarter.

1

●Strong capital ratios well above the regulatory thresholds for "well capitalized" banks, including an estimated 16.40% Total risk-based capital ratio, 12.42% Tier 1 capital ratio, 10.12% CET1 capital ratio and 9.00% Tier 1 leverage ratio.

●Allowance for credit losses of 1.22%, up from 1.15% at the prior quarter-end after a provision for credit losses of $47.0 million, which includes a $22.2 million initial provision related to non-purchased credit deteriorated (“non-PCD”) loan balances.

●Strong credit quality, with year-end nonperforming loans to total loans at 0.29%, down from 0.57% at the prior quarter-end.

●Increased stockholders’ equity as a result of the merger, with total stockholders’ equity increasing by $1.0 billion in the fourth quarter resulting in book value per share of $17.12 and tangible book value per share(1) of $14.96.

(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

Jared Wolff, President & CEO of Banc of California, commented, "Since closing our transformational merger with PacWest Bancorp on November 30, 2023, we have made excellent progress on the integration and the balance sheet repositioning actions that we indicated at the time of the merger announcement. As a result, we have created the well capitalized, highly-liquid financial institution we envisioned, with significant earnings potential and a strong position in key California markets.”

Mr. Wolff continued, “As we move through 2024, we will realize more of the benefits of our balance sheet repositioning, which will positively impact our net interest margin, as well as steadily reduce our noninterest expense as we complete the system conversion in the second quarter of 2024 and consolidate some of our branches that are in close proximity to each other. While we will remain conservative in our new loan production until economic conditions improve, we are already seeing the positive benefits of being a larger, stronger financial institution on our business development efforts. Given the strength of our franchise and the superior level of service, solutions and expertise that we can provide, we believe we have great opportunities to consistently add attractive client relationships that provide both operating deposit accounts and high quality loans, particularly given the significant changes we have seen over the past two years in the California banking landscap

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EX-99.1

Document

Banc of California Reports Net Income of $42.6 million, with Stable Deposit Mix and Improved Net Interest Margin in Third Quarter 2023 Financial Results

SANTA ANA, Calif., (October 24, 2023) — Banc of California, Inc. (NYSE: BANC) (“Banc of California”) today reported net income of $42.6 million, or $0.74 per diluted common share, for the third quarter of 2023. This compares to net income of $17.9 million, or $0.31 per diluted common share for the second quarter of 2023. On an adjusted basis, net income was $17.1 million for the quarter, or $0.30 per diluted common share.(1) This compares to adjusted net income of $18.4 million, or $0.32 per diluted common share, for the second quarter of 2023.(1) The third quarter of 2023 included a $46.2 million pre-tax mark-to-market gain on derivative instruments used to hedge the interest rate risk associated with various assets on the Company’s balance sheet, in anticipation of the anticipated sale of such assets in connection with the proposed merger with PacWest Bancorp (“PacWest”). The gain was partly offset by $9.3 million of other transaction costs.

Third quarter highlights:

•Net income of $42.6 million, or $0.74 per diluted common share, up 138% from the prior quarter as the bank strategically positioned the balance sheet ahead of the merger, which included a $46.2 million gain from derivative instruments, partly offset by $9.3 million of transaction costs.

•Stable overall deposit mix, with the period-end noninterest-bearing deposit percentage consistent with the prior quarter at 36% of total deposits.

•Addition of new clients with noninterest-bearing deposits, which contributed inflows of $52.2 million in the quarter and $201.5 million year-to-date.

•Net interest margin improvement of 8 basis points from 3.11% to 3.19% in comparison to the prior quarter, as the increase in the yield on loans and securities exceeded the increase in the cost of funds.

•Disciplined noninterest expense management, with total noninterest expense of $56.2 million reflecting an increase of $7.0 million over the prior quarter. Excluding the impact of $9.3 million of merger-related expenses, adjusted noninterest expense(1) decreased $2.2 million to $46.2 million for the third quarter.

•High liquidity levels, with immediately available on-balance sheet liquidity and unused borrowing capacity of $3.67 billion. Available liquidity was 2.1 times the level of uninsured and uncollateralized deposits, which was consistent with the prior quarter.

•Strong capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 14.48% Total risk-based capital ratio, 12.19% Tier 1 capital ratio, 12.19% CET1 capital ratio and 10.15% Tier 1 leverage ratio.

•Low unrealized losses relative to capital, with AFS unrealized pre-tax losses of $51.9 million on securities of $915.1 million, representing 3.9% of CET1 capital. Total AFS and HTM unrealized pre-tax losses of $129.9 million on total securities of $1.24 billion represented 9.8% of CET1 capital.

•Continued growth in book value and tangible book value, with book value per share of $17.44, up from $16.67, and tangible book value per share of $15.34, up from $14.56.(1)

Jared Wolff, Chairman, President & CEO of Banc of California, commented, "Our third quarter results reflect the impact of our strategic approach to positioning our balance sheet ahead of our merger with PacWest, continuing to bring new relationships to the bank, limiting reliance on high cost deposits, effectively hedging interest rate risk on our balance sheet, and accelerating the resolution of certain acquired credits. Due in large part to this strategic approach, we generated net income of $42.6 million during the quarter, which resulted in increases in all of our capital ratios, a 4.6% increase in our book value per share and a 5.4% increase in our tangible book value per share. We also continue to be active in our new business development efforts with $201.5 million in noninterest-bearing deposits added from new commercial relationships year-to-date.”

Mr. Wolff continued, “As announced last week, we are very pleased to have received regulatory approval for the merger. We expect to close the merger on or about November 30, 2023. We remain focused on our overall strategy for the combined company which includes a strong, liquid balance sheet with strong credit, ample reserves and capital, and growth centered around relationship banking and high quality commercial clients. Our two organizations have made significant progress on our

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

(2)Capital ratios are preliminary.

1

integration planning that will enable our combined institution post-closing to immediately focus on the strategic market opportunities presented by our merger, generate long-term profitable growth, and further enhance the value of our franchise.”

Prop

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EX-99.1

Document

Banc of California Reports Solid Earnings and Stable Deposits in Second Quarter 2023 Financial Results

The Company Also Announced in a Separate Release that it has

Entered into a Transformational Merger Agreement with PacWest

Bancorp, Including Committed Capital Raise of $400 Million

Transaction Also Expected to be Immediately Accretive to

Tangible Book Value Per Share and to 2024 Estimated EPS

SANTA ANA, Calif., (July 25, 2023) — Banc of California, Inc. (NYSE: BANC) today reported net income of $17.9 million, or $0.31 per diluted common share, for the second quarter of 2023. This compares to net income of $20.3 million, or $0.34 per diluted common share for the first quarter of 2023. On an adjusted basis, net income was $18.4 million for the quarter, or $0.32 per diluted common share.(1) This compares to adjusted net income of $21.7 million, or $0.37 per diluted common share, for the first quarter of 2023.(1)

Second quarter highlights:

•Interest income growth, up $9.2 million or 9% from the prior quarter due to higher interest rates and changes in the portfolio as new originations have higher yields than payoffs. Overall, net interest income was down $3.4 million or 5% from the prior quarter due to higher funding costs, changes in the balance sheet mix and the impact of the strategy to hold extra liquidity, which resulted in higher short-term borrowings from the FHLB and FRB.

•Stable overall deposits, down approximately 1% on average and period-end balances, with the period-end noninterest-bearing percentage stable at approximately 36% quarter over quarter.

•Noninterest-bearing deposit growth from new clients, which contributed inflows of $74.8 million in the quarter, consistent with the prior quarter’s growth and up 13% over the same period last year.

•Loan growth, up $101.8 million or 1% from the prior quarter and 6% annualized, highlighted by core commercial and industrial growth of $64 million or 6% and increased warehouse utilization.

•Lower noninterest expenses, which declined $2.1 million or 4% from the prior quarter due primarily to lower losses in alternative energy partnerships and compensation expenses.

•High liquidity levels, with immediately available on-balance sheet liquidity and unused borrowing capacity of $3.9 billion. Available liquidity was 2.2 times the level of uninsured and uncollateralized deposits, which was consistent with the prior quarter.

•Low unrealized losses, with AFS unrealized losses of $54.1 million on securities of $922.1 million, representing 4.3% of CET1 capital. Total AFS and HTM unrealized losses of $115.5 million on total securities of $1.25 billion represented 9.1% of CET1 capital.

•Strong capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 14.26% Total risk-based capital ratio, 11.88% Tier 1 capital ratio, 11.88% CET1 capital ratio and 9.54% Tier 1 leverage ratio.

•Other performance highlights as follows:

◦Book value per share of $16.67, up from $16.33

◦Tangible common equity per share of $14.56, up from $14.26(1)

◦Repurchased $16.0 million of common stock during the quarter and $21.1 million during the six months ended June 30, 2023

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

(2)Capital ratios are preliminary.

1

Jared Wolff, Chairman, President & CEO of Banc of California, commented, "We are very excited to announce our merger with PacWest Bancorp. This is a reflection of the strength of the franchise we have built and our continued ability to create value for our stockholders. Our second quarter results reflect strong performance in several areas. Notwithstanding an uncertain economic landscape, our team did an exceptional job to bring in nearly $75 million of noninterest-bearing deposits from new relationships, maintaining ending and average noninterest-bearing deposits at 36%, in line with noninterest-bearing deposits at the end of first quarter. Loan growth came in above expectation in core C&I, and expenses remain well-controlled. Our margin reflected excess cash balances held for a good part of the quarter, but our June margin of 3.24% is more representative of where we expect to see our margin in the quarter ahead. Due to our solid financial performance and prudent balance sheet management, we increased our tangible common equity ratio to more than 9%, grew our tangible book value per share by 2.1% and repurchased $16.0 million of our common stock at well below tangible book value per share.”

Mr. Wolff continued, “We expect to see earnings growth ahead. As noted, we exited the second quarter with a 13 basis points higher net interest margin in the month of June than our margin for the entire second quarter. We continue to experience positive trends in noninterest-bearing deposit inflows, and higher end-of-period loan balances than average balances for the quarter. Over the longer term, we believe we are

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Banc of California Reports Solid Earnings and Strong Balance Sheet in First Quarter 2023 Financial Results

SANTA ANA, Calif., (April 20, 2023) — Banc of California, Inc. (NYSE: BANC) today reported net income of $20.3 million, or $0.34 per diluted common share, for the first quarter of 2023. This compares to net income of $21.5 million, or $0.36 per diluted common share for the fourth quarter of 2022. On an adjusted basis, net income was $21.7 million for the quarter, or $0.37 per diluted common share.(1) This compares to adjusted net income of $26.8 million, or $0.45 per diluted common share, for the fourth quarter of 2022, which excluded a pre-tax loss on sale of securities of $7.7 million.(1)

First quarter highlights:

•Diversified core deposit base with noninterest-bearing deposits representing 38% of average deposits and 36% at quarter end. Uninsured and uncollateralized deposits comprised 27% of total deposits.

•Significant available excess liquidity with immediately available on-balance sheet liquidity and unused borrowing capacity of $4.0 billion, including $1.0 billion in cash. Available liquidity was 2.2 times the level of uninsured and uncollateralized deposits.

•Low unrealized losses in the securities portfolio, with unrealized losses of $46.8 million on AFS securities of $958.4 million, representing 3.8% of CET1 capital(1).

•High capital ratios(2) projected to remain well above the regulatory thresholds for "well capitalized" banks, including an estimated 14.06% total risk-based capital ratio, 11.66% Tier 1 capital ratio, 11.66% CET1 capital ratio and 9.71% Tier 1 leverage ratio.

•Stable asset quality as total delinquent loans decreased 20%, or 25 bps, to 1.03% and classified assets also decreased 20%, or 33 bps, to 1.34% from the prior quarter. Total net charge-offs for the quarter were 0.22% of average loans. The ACL ratio remained relatively flat at 1.27% of total loans and 158% of nonperforming assets.

•Other performance highlights as follows:

◦Return on average assets of 0.88% and adjusted return on average assets of 0.94%(1)

◦Book value per share of $16.33, up from $16.26

◦Tangible common equity per share of $14.26, up from $14.19(1)

◦Repurchased $5.2 million of common stock through March 31 and $10.0 million total as of April 12

◦Increased the quarterly dividend 67% to $0.10 per share

◦Net deposit outflow in the first quarter of only 2%

Jared Wolff, President & CEO of Banc of California, commented, "The strength of the franchise and balance sheet we have built over the past four years has enabled us to effectively manage through the recent turmoil in the banking industry. As a true relationship-focused commercial bank, we are deeply connected to our clients through the expertise and services that we provide. As a result, our deposit base remained stable and resilient over the past several weeks with noninterest-bearing deposits averaging 38% for the quarter, and we experienced only a two-percent decline in the quarter in total deposits with seasonal outflows we typically see in the first quarter. We also had a net increase in commercial deposit accounts and our deposit pipeline of business accounts remains strong."

Mr. Wolff continued, “Additionally, the proactive steps we took over the past several quarters to manage and reposition our securities portfolio has resulted in low levels of unrealized losses despite the rapidly rising rate environment. With our high levels of capital and liquidity, alongside stable deposits, we opportunistically repurchased 1% of our shares through mid-April under our recently announced buy-back authorization. We remain focused on building shareholder value in the current environment by continuing to bring in new client relationships, optimizing liquidity sources, managing expenses, preserving credit quality, and effectively using our significant excess capital.”

Raymond Rindone, Interim Chief Financial Officer of Banc of California, said, “Our total available primary and secondary liquidity was just over $4.0 billion or 2.2 times our uninsured and uncollateralized deposits, with $1.0 billion of cash at quarter end. While the deposit base has been largely stable since the recent banking industry disruption, we increased our level of overnight borrowings and added some short-term brokered deposits to increase our liquidity. While these actions had an impact on our level of profitability and net interest margin in the first quarter, we believe it was prudent from a risk management perspective. The short-term nature of this additional liquidity gives us flexibility to quickly make adjustments in our liability mix as market conditions evolve. In addition, we saw positive credit quality trends in the loan portfolio as noted by the decline in delinquencies and classified assets during the first quarter.”

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

(2)Capital ratios are pre

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Banc of California Reports Record Net Income in 2022

SANTA ANA, Calif., (January 19, 2023) — Banc of California, Inc. (NYSE: BANC) today reported net income of $21.5 million, or $0.36 per diluted common share, for the fourth quarter of 2022. This compares to net income of $24.2 million, or $0.40 per diluted common share for the third quarter of 2022. The fourth quarter included a pre-tax loss on sale of securities of $7.7 million. On an adjusted basis, net income was $26.8 million for the quarter, or $0.45 per diluted common share. This compares to adjusted net income of $26.7 million, or $0.44 per diluted common share, for the third quarter of 2022. For the full year 2022, the Company reported record net income available to common shareholders of $115.8 million, or $1.89 per diluted common share. This compares to net income available to common shareholders of $50.6 million, or $0.95 per diluted common share in 2021. On an adjusted basis, net income available to common shareholders was $128.4 million, or $2.10 per diluted common share. Net income and adjusted net income available to common shareholders for 2022 included a pre-tax $31.3 million recovery from the settlement of a previously charged-off loan.(1)

Fourth quarter highlights(1):

•Diluted EPS of $0.36 and adjusted diluted EPS of $0.45

•Noninterest-bearing deposits represented 41% of average deposits, up from 38%

•Period-end noninterest bearing deposits at 39%, stable with prior quarter

•Net interest margin of 3.69%, an increase of 11 basis points

•Return on average assets of 0.92% and adjusted return on average assets of 1.15%

•Total ACL coverage ratio of 1.28%

•Book value per share of $16.26, up from $15.83

•Tangible common equity per share of $14.19, up from $13.79

•Repurchased $18.9 million of common stock representing 2% of the shares outstanding at the end of the third quarter

Full year highlights(1):

•Diluted EPS of $1.89 and adjusted diluted EPS of $2.10

•Noninterest-bearing deposits represented 39% of average deposits compared to 30% in the prior year

•Net interest margin of 3.59%, an increase of 33 basis points

•Return on average assets of 1.29% and adjusted return on average assets of 1.39%

•Book value per share of $16.26, up from $15.48

•Tangible common equity per share of $14.19, up from $13.88

•Completed $75.0 million in common stock repurchases representing 7% of the shares outstanding at the end of the prior year

•$31.3 million pre-tax recovery from the settlement of a previously charged-off loan

•Redeemed all Series E Preferred Stock for total consideration of $98.7 million with annual savings of $6.9 million

•Completed the acquisition of Deepstack Technologies on September 15, 2022

Jared Wolff, President & CEO of Banc of California, commented, "During the fourth quarter, we capitalized on our strong, stable deposit base and slightly asset sensitive balance sheet to continue generating solid core earnings while being selective in our new loan production given the macroeconomic uncertainty. As a result, while we had a slightly smaller average balance sheet in the fourth quarter, our core earnings were consistent with the prior quarter and we generated a significant increase in our tangible book value per share."

Mr. Wolff continued, “With the strong deposit base we have built, conservatively underwritten loan portfolio, and high capital ratios, we are well positioned to continue generating strong financial results for our shareholders and effectively managing through the economic uncertainty. While maintaining disciplined expense management, we continue to take a long-term approach and opportunistically invest in areas that will strengthen our franchise. We believe these investments, along with the

(1)Adjusted financial metrics represent non-GAAP measures; refer to section 'Non-GAAP Measures'

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high performing team and culture that we have built, will allow us to continue to gain market share and enhance franchise value.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “With noninterest-bearing deposits averaging 41% of total deposits in the fourth quarter, combined with the balance sheet management actions we took earlier in the year to manage our funding costs, our net interest margin increased 11 basis points from the prior quarter and contributed to our strong financial performance. Our healthy capital ratios enabled us to take advantage of higher interest rates and reposition a portion of our securities portfolio. During the fourth quarter, we sold approximately $119 million of lower-yielding securities for a loss of $7.7 million and reinvested the proceeds into securities with a higher average yield of over 230 basis points, which will contribute to our future earnings growth. Our adjusted diluted earnings per share were $0.45 for the fourth quarter when adjusting for the loss on sale of securities, net indemnified legal co

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Banc of California Reports Strong Profitability and Continued Growth in Noninterest-bearing Deposits for Third Quarter 2022

SANTA ANA, Calif., (October 20, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income and net income available to common stockholders of $24.2 million, or $0.40 per diluted common share, for the third quarter of 2022. This compares to net income and net income available to common stockholders of $26.7 million, or $0.43 per diluted common share, for the second quarter of 2022. The third quarter includes pre-tax transaction costs of $2.1 million related to the Deepstack acquisition.

Third quarter highlights:

•Acquisition of Deepstack Technologies completed on September 15, 2022

•Adjusted diluted EPS of $0.44

•Return on average assets of 1.02%

•Adjusted return on average assets of 1.13%

•Pre-tax pre-provision return on average assets of 1.44%

•Adjusted pre-tax pre-provision return on average assets of 1.59%

•Net interest margin of 3.58%

•Noninterest-bearing deposits increased $117.0 million or 17% annualized to represent 40% of total quarter end deposits

•Average cost of total deposits of 0.47%

•Allowance for credit losses at 1.36% of total loans and 232% of non-performing loans, up from 1.34% and 224% in the prior quarter

•Repurchased $13.0 million of common stock during the quarter and $63.7 million cumulatively this year through October 18

Jared Wolff, President & CEO of Banc of California, commented, "During the third quarter, we executed further on the areas that drive franchise value. Our stable noninterest-bearing deposit base continued to expand, as noninterest-bearing deposits grew $117.0 million hitting 40% of total deposits at the end of the quarter. Our margin held up, even as we locked in some longer-term fixed-rate funding, and core loan growth outside of warehouse continued at a double digit annualized pace. Our core earnings power remained consistent in a challenging operating environment and we expect our asset sensitivity to support earnings growth going forward."

Mr. Wolff continued, “While we continued to deliver strong financial results for shareholders in the third quarter, we also took another significant step in building long-term franchise value with our acquisition of Deepstack Technologies and entry into the payments processing business. Our payments business adds a high value solution that will further enhance the banking experience we provide to clients, and as we scale this business over the next few years, we expect it to become a consistent source of high margin fee income and noninterest-bearing deposits that will be another catalyst for generating consistent and profitable growth.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “During the third quarter, our net interest margin remained constant as we managed changes in the mix of earning assets, including lower warehouse balances, and the mix of funding sources as we strategically replaced certain higher costing deposits with longer-term fixed-rate funding. We believe our longer-term fixed-rate funding and noninterest-bearing deposits growth will improve our ability to manage our funding costs and expand our margin as we expect to see rising interest rates. In an operating environment that makes it challenging for banks to grow tangible book value, excluding our use of capital from the acquisition of Deepstack, we have protected and grown our tangible book value while also repurchasing 5% of our common shares this year. We also saw positive trends in credit quality with declines in non-performing loans and non-performing assets.”

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Acquisition of Deepstack Technologies

On September 15, 2022, the Company completed its acquisition of the payments platform and technology of Global Payroll Gateway, Inc. and its wholly owned subsidiary, Deepstack Technologies, LLC (collectively, "Deepstack") for $24 million in cash and stock. Deepstack is a differentiated software-led and e-commerce payments platform that provides clients with payment solutions, including merchant processing, payments acceptance and disbursements, tokenization, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services. Deepstack advances Banc of California's goal to be the hub of the financial services ecosystem for clients while creating another driver of profitable long-term growth and franchise value including:

•Scalable, meaningful fee-based income

•New clients in verticals attractive to Banc of California

•New source of noninterest-bearing deposits

The Deepstack acquisition is accounted for as a business combination under U.S. GAAP and initial estimates of the fair value of identifiable intangible assets acquired are reflected in the Company's balance sheet as of September 30, 2022.

Income Statement Highlights

Three Months EndedNine Months Ended

September 30, 2022June

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Banc of California Reports Strong Profitability, $1.2 Billion in Loan Fundings, and Net Interest Margin Expansion for Second Quarter 2022

SANTA ANA, Calif., (July 21, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income and net income available to common stockholders of $26.7 million, or $0.43 per diluted common share, for the second quarter of 2022. This compares to net income of $48.5 million and net income available to common stockholders of $43.3 million, or $0.69 per diluted common share, for the first quarter of 2022. The first quarter of 2022 net income available to common stockholders included a $31.3 million pre-tax recovery from the settlement of a previously charged-off loan and a $3.7 million after-tax charge related to the redemption of Series E Preferred Stock.

Second quarter highlights:

•Adjusted EPS of $0.45

•Pre-tax pre-provision return on average assets of 1.58%, up from 1.54% in the prior quarter

•Net interest margin of 3.58%, an increase of 7 basis points from the prior quarter

•Average noninterest-bearing deposits of 38%, flat with the prior quarter

•Tangible book value per share of $14.05, flat with the prior quarter

•Average cost of total deposits of 0.17%, an increase of 9 basis points from the prior quarter

•Allowance for credit losses at 1.34% of total loans and 224% of non-performing loans, up from 1.32% and 181% in the prior quarter

•Repurchased $38.9 million of common stock during the quarter and $51.9 million cumulatively through July 20

Jared Wolff, President & CEO of Banc of California, commented, “We delivered another quarter of solid operating performance which is a good representation of our strong commercial banking franchise: well diversified, robust loan production funded with a low-cost deposit base; disciplined expense control; and solid asset quality in our conservatively underwritten, well secured loan portfolio. We capitalized on the resilient economic conditions and loan demand we are experiencing in California to generate $1.2 billion in loan fundings during the second quarter, which was the highest level of fundings in over 3 years.

Mr. Wolff continued, “Although interest rates have increased, our loan pipeline remains strong, which should result in continued loan growth in the second half of the year, as well as further expansion of our operating leverage. We believe that our asset sensitive balance sheet will benefit from the rising rate environment and position us to continue delivering strong financial results for the benefit of shareholders.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “During the second quarter, our net interest margin increased seven basis points. We believe our current loan pipeline reflects the higher interest rate environment, which should lead to additional expansion in our net interest margin going forward, providing us with another catalyst for driving further increases in earnings per share and our level of returns.”

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Income Statement Highlights

Three Months EndedSix Months Ended

June 30, 2022March 31, 2022December 31, 2021September 30, 2021June 30, 2021June 30, 2022June 30, 2021

($ in thousands)

Total interest and dividend income$88,418 $84,269 $81,573 $71,791 $69,677 $172,687 $138,295

Total interest expense10,119 7,828 8,534 8,815 9,830 17,947 20,532

Net interest income78,299 76,441 73,039 62,976 59,847 154,740 117,763

Total noninterest income7,186 5,910 5,605 5,519 3,443 13,096 8,252

Total revenue85,485 82,351 78,644 68,495 63,290 167,836 126,015

Total noninterest expense48,612 46,596 58,872 37,811 39,832 95,208 86,995

Pre-tax / pre-provision income(1)

36,873 35,755 19,772 30,684 23,458 72,628 39,020

Provision for (reversal of) credit losses— (31,542)11,262 (1,147)(2,154)(31,542)(3,261)

Income tax expense10,161 18,785 2,759 8,661 6,562 28,946 8,856

Net income$26,712 $48,512 $5,751 $23,170 $19,050 $75,224 $33,425

Net income available to common stockholders(2) $26,712 $43,345 $4,024 $21,443 $17,323 $70,057 $25,088

(1)Non-GAAP Measure

(2)Balance represents the net income available to common stockholders after subtracting preferred stock dividends, income allocated to participating securities, participating securities dividends, and impact of preferred stock redemption from net income. Refer to the Statements of Operations for additional detail on these amounts.

Net interest income

Q2-2022 vs Q1-2022

Net interest income increased $1.9 million to $78.3 million for the second quarter due to higher yield on interest-earning assets, offset by lower average interest-earning assets and higher average interest-bearing liabilities balances and costs.

The net interest margin increased 7 basis points to 3.58% for the second quarter as the average interest-earning assets yield increased 17 basis points and the cost of average total funding increased 10 basis points. The yield on average interest-earning asse

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Banc of California Reports $0.69 EPS for First Quarter 2022

SANTA ANA, Calif., (April 21, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income of $48.5 million and net income available to common stockholders of $43.3 million, or $0.69 per diluted common share for the first quarter of 2022. This compares to net income of $5.8 million and net income available to common stockholders of $4.0 million, or $0.07 per diluted common share, for the fourth quarter of 2021. The first quarter of 2022 net income available to common stockholders included a $31.3 million pre-tax recovery from the settlement of a previously charged-off loan and a $3.7 million after-tax charge related to the redemption of Series E Preferred Stock. The fourth quarter of 2021 included $13.5 million of pre-tax merger costs and $11.3 million of provision for credit losses for the loans acquired in the Pacific Mercantile Bancorp (PMB) acquisition.

First quarter highlights:

•Return on average assets of 2.09%, up from 0.24% in the prior quarter

•Pre-tax pre-provision return on average assets of 1.54%, up from 0.84% in the prior quarter

•Adjusted pre-tax pre-provision return on average assets of 1.55%, up from 1.39% in the prior quarter

•Net interest margin of 3.51%, an increase of 23 basis points from the prior quarter

•Noninterest-bearing deposits represented 40% of total deposits at March 31, 2022, up from 28% a year earlier

•Average cost of total deposits of 0.08%, a 3 basis point decrease from the prior quarter

•Redemption of all Series E Preferred Stock for total consideration of $98.7 million

•Repurchase of $4.3 million of common stock under a $75 million authorization announced on March 15, 2022

•Allowance for credit losses at 1.32% of total loans and 181% of non-performing loans

•Common Equity Tier 1 capital at 11.39%

Jared Wolff, President & CEO of Banc of California, commented, “We had a terrific first quarter with strong financial performance across the board that demonstrated the momentum of our franchise: high quality loan growth; solid inflows of noninterest-bearing deposits; net interest margin expansion; higher levels of noninterest income; and strong asset quality. Our core earnings continue to grow via both our organic loan generation as well as the accretive benefits of the Pacific Mercantile Bancorp acquisition.”

Mr. Wolff continued, “Since the start of the year, our loan pipeline has been steadily building and is now more than twice as large as it was at the beginning of the second quarter of 2021, with good contributions coming from all asset classes and markets. Given our strong loan pipeline, our asset sensitive position that will benefit from higher interest rates, and the operating leverage we are realizing as we grow our balance sheet, we see many catalysts for driving further growth in earnings and returns as we move through 2022.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “During the first quarter, we were able to successfully execute on a number of initiatives that positively impact shareholder value including recovering approximately $31 million from a previously charged-off loan, announcing a $75 million common stock repurchase program, and redeeming our Series E Preferred Stock which will add approximately $7 million annually to our net income available to common stockholders.”

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Income Statement Highlights

Three Months Ended

March 31, 2022December 31, 2021September 30, 2021June 30, 2021March 31, 2021

($ in thousands)

Total interest and dividend income$84,269 $81,573 $71,791 $69,677 $68,618

Total interest expense7,828 8,534 8,815 9,830 10,702

Net interest income76,441 73,039 62,976 59,847 57,916

Total noninterest income5,910 4,860 5,519 4,170 4,381

Total revenue82,351 77,899 68,495 64,017 62,297

Total noninterest expense46,596 58,127 37,811 40,559 46,735

Pre-tax / pre-provision income(1)

35,755 19,772 30,684 23,458 15,562

(Reversal of) provision for credit losses(31,542)11,262 (1,147)(2,154)(1,107)

Income tax expense18,785 2,759 8,661 6,562 2,294

Net income$48,512 $5,751 $23,170 $19,050 $14,375

Net income available to common stockholders(2) $43,345 $4,024 $21,443 $17,323 $7,825

(1)Non-GAAP Measure

(2)Balance represents the net income available to common stockholders after subtracting preferred stock dividends, income allocated to participating securities, participating securities dividends, and impact of preferred stock redemption from net income. Refer to the Statements of Operations for additional detail on these amounts.

Net interest income

Q1-2022 vs Q4-2021

Net interest income increased $3.4 million to $76.4 million for the first quarter due to higher yield on interest-earning assets and lower average balances and costs of interest-bearing liabilities, partially offset by lower average interest-earning assets.

The net interest margin increased 23 basis points to 3.51% for

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Banc of California Reports Fourth Quarter 2021 Financial Results

SANTA ANA, Calif., (January 25, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income of $5.8 million and net income available to common stockholders for the fourth quarter of 2021 of $4.0 million, or $0.07 per diluted common share. This compares to net income of $23.2 million and net income available to common stockholders of $21.4 million, or $0.42 per diluted common share, for the third quarter. The fourth quarter of 2021 included $13.5 million of pre-tax merger costs and $11.3 million of provision for credit losses for the loans acquired in the Pacific Mercantile Bancorp acquisition. For the year ended December 31, 2021, net income totaled $62.3 million and net income available to common stockholders totaled $50.6 million, or $0.95 per diluted common share. The year-to-date results for 2021 included $27.1 million of pre-tax merger costs and provision for credit losses related to the acquisition of Pacific Mercantile Bancorp.

Fourth quarter summary:

•Completed the acquisition of Pacific Mercantile Bancorp (the "PMB Acquisition") on October 18, 2021, for total purchase consideration of $225.4 million, adding $1.54 billion in total assets, $962.9 million in loans and $1.28 billion in deposits at acquisition date

•Completed the system conversion for the PMB Acquisition in November 2021

•Return on average assets of 0.24%

•Adjusted pre-tax pre-provision return on average assets of 1.39%, up from 1.34% in the prior quarter

•Net interest margin of 3.28%, flat with the prior quarter

•Average cost of total deposits of 0.11%, a 4 basis point decrease from the previous quarter

•Noninterest-bearing deposit balances represented 37% of total deposits at December 31, 2021, up from 26% a year earlier

•Allowance for credit losses at 1.35% of total loans and 187% of non-performing loans

•Non-performing loans increased 15.2% to $52.6 million as a result of loans acquired in the PMB Acquisition

•Common Equity Tier 1 capital at 11.38%

Jared Wolff, President & CEO of Banc of California, commented, “Our continued organic growth and initial benefits of the Pacific Mercantile Bancorp acquisition combined to produce a significant improvement in our core earnings power during the fourth quarter, with our adjusted pre-tax pre-provision income increasing 18% from the prior quarter and our adjusted pre-tax pre-provision return on average assets increasing 5 basis points to 1.39%. We finished the year with one of our largest quarters of loan fundings, with well balanced production across markets, asset classes and industries, while our deposit mix continued to improve with noninterest-bearing deposits increasing to 37% of total deposits at the end of 2021 and our spot rate cost of deposits declining to 0.07%.”

Mr. Wolff continued, “We continue to see good loan demand and high quality lending opportunities, and the deposit gathering engine we have built enables us to fund these loans with low-cost core deposits. With the combination of our continued momentum in business development, the positive impact of the Pacific Mercantile acquisition, and our increasing level of asset sensitivity, we believe we are very well positioned to deliver continued growth in revenue, earnings per share and franchise value.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “Excluding the loans added from the Pacific Mercantile acquisition, we saw continued improvement in our asset quality with non-performing loans declining 32% from the end of the prior quarter, while criticized and classified loans declined 23%. Given the strength of our balance sheet and capital ratios, we remain in good position to redeem our Series E Preferred Stock during the first half of 2022, subject to regulatory approval, which will provide another catalyst for earnings growth going forward.”

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Pacific Mercantile Bancorp Acquisition

On October 18, 2021, we acquired Pacific Mercantile Bancorp pursuant to an Agreement and Plan of Merger dated as of March 22, 2021. As a result of the PMB Acquisition, we issued approximately 11.9 million shares and $3.2 million in cash for total consideration of $225.4 million. We acquired $1.54 billion in total assets, including $962.9 million in loans, $1.3 billion in deposits, $17.5 million in trust preferred securities, and $57.2 million of goodwill. The PMB Acquisition reduced our tangible book value per share by approximately $0.10. The system conversion was completed in November 2021.

Income Statement Highlights

Three Months EndedYear Ended

December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020December 31, 2021December 31, 2020

($ in thousands)

Total interest and dividend income$81,573 $71,791 $69,677 $68,618 $73,530 $291,659 $290,607

Total interest expense8,534 8,815 9,830 10,702 11,967 37,881 66,013

Net interest income73,039 62,

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Banc of California Reports Third Quarter 2021 Financial Results

SANTA ANA, Calif., (October 21, 2021) — Banc of California, Inc. (NYSE: BANC) today reported net income of $23.2 million and net income available to common stockholders for the third quarter of 2021 of $21.4 million, or diluted earnings per common share of $0.42.

Highlights for the third quarter included:

•Return on average assets of 1.13%

•Annualized loan growth, excluding PPP, of 16%

•Period-end total cost of deposits of 0.08%, a 12 basis point decrease from the end of the second quarter

•Average cost of total deposits of 0.15%, an 8 basis point decrease from the previous quarter

•Net interest margin of 3.28%, a 1 basis point increase from the previous quarter

•Noninterest-bearing deposit balances represented 32% of total deposits at September 30, 2021, up from 24% a year earlier

•Allowance for credit losses at 1.26% of total loans and 173% of non-performing loans

•Total deferrals/forbearances declined to $54.2 million at September 30, 2021 from $86.6 million at June 30, 2021

•Common Equity Tier 1 capital at 10.89%

Jared Wolff, President & CEO of Banc of California, commented, “Our third quarter results demonstrate the greater earnings power and improved profitability we have generated over the past two years as we continue to accelerate our growth in earning assets and increase operating leverage. Our teams continue to bring in high quality relationships throughout California and we are seeing a significant increase in commercial & industrial loan production, which helped generate a 16% annualized increase in total loans, excluding Paycheck Protection Program loans. Our deposit engine also continues to be highly productive in attracting new clients and expanding relationships with existing clients, which resulted in a 17% increase in noninterest-bearing deposits from the end of the prior quarter.”

Mr. Wolff continued, “Our loan and deposit pipelines remain strong and we expect to see a continuation of the positive trends that have led to our improved profitability. The system conversion for Pacific Mercantile is planned for November and we expect to have most of the cost savings in place by the end of the year. This will put us on track to fully realize the accretive benefits of this transaction starting in 2022. Combined with the strong organic growth that we are generating, we are well-positioned to continue delivering a higher level of earnings and returns.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “We continue to execute well on our strategic initiatives, which is resulting in positive trends across most of our key metrics. Our cost of deposits continues to decline, our net interest margin is increasing, our efficiency ratio is improving, and our non-performing loans are declining. We continue to have a high level of liquidity, capital and reserves, which positions us well to continue supporting the profitable growth of our franchise. Along with our continued organic growth and the synergies to be realized from the Pacific Mercantile Bancorp acquisition, we also have additional opportunities to reduce our deposit costs as we continue to improve our mix of deposits and, subject to regulatory approval, redeem preferred stock that will further accelerate earnings growth.”

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Merger with Pacific Mercantile Bancorp

On October 18, 2021, the Company completed the acquisition of Pacific Mercantile Bancorp (“PMBC”), pursuant to which PMBC merged (the “Merger”) with and into the Company, with the Company as the surviving corporation.

Under the terms and conditions of the Merger Agreement, each outstanding share of PMBC common stock was converted into the right to receive 0.5 of a share of the Company's common stock. This resulted in the issuance of 11,856,713 shares of BOC common stock with an estimated fair value of $222.2 million based upon the $18.74 closing price of BANC’s common stock on October 18, 2021. In addition, at the effective time of the Merger, the Company paid cash for all outstanding PMBC share-based awards, including stock options and outstanding shares subject to unvested restricted stock awards for a total paid in cash at closing of $3.2 million based upon the volume weighted average common stock price of BANC on each of the last 20 trading days ending on the fifth trading day prior to the closing of the Merger. The aggregate purchase price totaled $225.4 million.

At September 30, 2021, PMBC had total gross loans of $982.4 million and total assets of $1.49 billion. Total deposits were $1.29 billion at September 30, 2021.

Income Statement Highlights

Three Months EndedNine Months Ended

September 30, 2021June 30, 2021March 31, 2021December 31, 2020September 30, 2020September 30, 2021September 30, 2020

($ in thousands)

Total interest and dividend income$71,791 $69,677 $68,618 $73,530 $69,666 $210,086 $217,077

Total interes