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

LOS ANGELES--(BUSINESS WIRE)-- Banc of California, Inc. (NYSE: BANC):

		$19.09		5%
		Book Value Per Share		Total Revenue Growth
$0.38						9%
Earnings Per Share		$16.99		17%		Noninterest-bearing
		Tangible Book Value		Pre-Tax Pre-Provision		Deposits Annualized Growth
		Per Share(1)		Income Growth(1)

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

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.”

INCOME STATEMENT HIGHLIGHTS
	Three Months Ended											Nine Months Ended
	September 30,				June 30,			September 30,				September 30,
Summary Income Statement	2025				2025			2024				2025				2024
	(In thousands)
Total interest income	$	432,541			$	420,509		$	446,893			$	1,259,705			$	1,388,186
Total interest expense		179,097				180,293			214,718				533,681				697,421
Net interest income		253,444				240,216			232,175				726,024				690,765
Provision for credit losses		9,700				39,100			9,000				58,100				30,000
(Loss) gain on sale of loans		(374	)			30			(62	)			(133	)			625
Loss on sale of securities		—				—			(59,946	)			—				(59,946	)
Other noninterest income		34,659				32,603			44,556				100,701				107,477
Total noninterest income		34,285				32,633			(15,452	)			100,568				48,156
Total revenue		287,729				272,849			216,723				826,592				738,921
Acquisition, integration and reorganization costs		—				—			(510	)			—				(13,160	)
Other noninterest expense		185,684				185,869			196,719				555,206				623,530
Total noninterest expense		185,684				185,869			196,209				555,206				610,370
Earnings before income taxes		92,345				47,880			11,514				213,286				98,551
Income tax expense		22,716				19,495			2,730				61,704				28,582
Net earnings		69,629				28,385			8,784				151,582				69,969
Preferred stock dividends		9,947				9,947			9,947				29,841				29,841
Net earnings (loss) available to common and equivalent stockholders	$	59,682			$	18,438		$	(1,163	)		$	121,741			$	40,128
Diluted earnings (loss) per share	$	0.38			$	0.12		$	(0.01	)		$	0.75			$	0.24

Net Interest Income and Margin

Third Quarter of 2025 Compared to Second Quarter of 2025

Net interest income increased by $13.2 million to $253.4 million for the third quarter from $240.2 million for the second quarter, attributable primarily to the following:

• An increase of $10.4 million in interest income from loans due to higher average yield driven mainly by higher rate on new loan production, a higher day count, and higher income from loan payoffs, including the payoff of a large commercial real estate loan.

• A decrease of $1.9 million in interest expense on deposits due primarily to lower average balances largely driven by lower brokered deposits and lower interest rates, partially offset by a higher day count.

• An increase of $0.9 million in interest income from deposits in financial institutions driven mainly by higher average balances and a higher day count, partially offset by lower interest rates.

The net interest margin was 3.22% for the third quarter, up 12 basis points from 3.10% for the second quarter, primarily driven by a higher average yield on interest-earning assets. The average yield on interest-earning assets increased to 5.50% from 5.42%, reflecting a 12 basis point increase in the average yield on loans and leases to 6.05%, largely due to the higher income related to loan payoffs discussed above.

The average total cost of funds was 2.37% for the third quarter, down 5 basis points from 2.42% for the second quarter, driven by lower deposit and borrowing costs and a favorable shift in the funding mix. Brokered deposits decreased as strong customer deposit inflows in the third quarter were used to reduce higher-cost funding sources. As a result, the average total cost of deposits decreased by 5 basis points to 2.08% from 2.13%, while the average cost of borrowings declined by 17 basis points to 4.76%.

Average total deposits decreased by $12.9 million, with a $112.1 million decrease in average interest-bearing deposits partially offset by a $99.2 million increase in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.2% of average total deposits in the third quarter, up from 27.8% in the second quarter.

	Three Months Ended																		Increase (Decrease)
	September 30, 2025									June 30, 2025									QoQ
Summary				Interest			Average						Interest			Average							Average
Average Balance	Average			Income/			Yield/			Average			Income/			Yield/			Average				Yield/
and Yield/Cost Data	Balance			Expense			Cost			Balance			Expense			Cost			Balance				Cost
	(Dollars in thousands)
Assets:
Loans and leases(1)	$	24,458,255		$	372,723		6.05	%		$	24,504,319		$	362,303		5.93	%		$	(46,064	)		0.12	%
Investment securities		4,782,070			38,291		3.18	%			4,719,954			37,616		3.20	%			62,116			(0.02	)%
Deposits in financial institutions		1,958,011			21,527		4.36	%			1,872,736			20,590		4.41	%			85,275			(0.05	)%
Total interest-earning assets	$	31,198,336		$	432,541		5.50	%		$	31,097,009		$	420,509		5.42	%		$	101,327			0.08	%
Liabilities:
Noninterest-bearing demand deposits	$	7,683,136								$	7,583,894								$	99,242
Total interest-bearing deposits		19,608,906		$	143,074		2.89	%			19,721,040		$	144,940		2.95	%			(112,134	)		(0.06	)%
Total deposits	$	27,292,042			143,074		2.08	%		$	27,304,934			144,940		2.13	%		$	(12,892	)		(0.05	)%
Total interest-bearing liabilities	$	22,264,293		$	179,097		3.19	%		$	22,296,364		$	180,293		3.24	%		$	(32,071	)		(0.05	)%
Net interest income(1)				$	253,444								$	240,216
Net interest margin							3.22	%								3.10	%						0.12	%
Total funds(2)	$	29,947,429		$	179,097		2.37	%		$	29,880,258		$	180,293		2.42	%		$	67,171			(0.05	)%

______________
(1)		Includes net loan discount accretion of $19.3 million and $16.1 million for the three months ended September 30, 2025 and June 30, 2025.
(2)		Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

YTD September 30, 2025 vs YTD September 30, 2024

Net interest income increased by $35.3 million to $726.0 million for the nine months ended September 30, 2025 from $690.8 million for the nine months ended September 30, 2024 attributable primarily to the following:

• A decrease of $133.4 million in interest expense on deposits due primarily to lower interest paid on interest-bearing deposits as a result of deposit rate repricing driven by the 100 basis points of federal funds rate cuts in the second half of 2024 and lower average balances due mainly to the paydown of brokered deposits.

• A decrease of $30.4 million in interest expense on borrowings and subordinated debt driven by lower average balances resulting from the payoff of higher-cost borrowings in 2024, which were partially replaced with lower-cost long-term FHLB advances and lower market interest rates.

• An increase of $10.7 million in interest income from investment securities reflecting the benefits from 2024 balance sheet repositioning actions and reinvestment in higher-yield securities.

This was offset partially by:

• A decrease of $76.1 million in interest income from deposits in financial institutions driven by lower balances, as we maintained a lower cash target level and lower market interest rates.

• A decrease of $63.1 million in interest income from loans due primarily to lower market interest rates reflective of federal funds rate cuts, lower average balances attributable mainly to the sale in July 2024 of $1.95 billion of Civic loans, and by lower net loan discount accretion income.

The net interest margin was 3.13% for the nine months ended September 30, 2025, up 34 basis points from 2.79% for the nine months ended September 30, 2024. The year-over-year improvement was primarily driven by a 53 basis point decrease in the average total cost of funds to 2.40%, offset partially by a 17 basis point decrease in the average yield on interest-earning assets to 5.44%.

The average total cost of funds decreased by 53 basis points to 2.40%, driven by lower market interest rates and a shift in mix. The average cost of deposits declined by 49 basis points to 2.11%, reflecting the impact of federal funds rate cuts in the second half of 2024. Average total deposits decreased by $1.7 billion year over year, including a $1.5 billion reduction in average interest-bearing deposits and a $144.0 million decrease in average noninterest-bearing deposits. Despite this decline, average noninterest-bearing deposits represented 28.2% of average total deposits for the nine months ended September 30, 2025, up from 27.0% for the comparable period in 2024. The average cost of borrowings also decreased by 75 basis points to 4.99%, reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost long-term FHLB advances.

The average yield on interest-earning assets declined by 17 basis points to 5.44%, due primarily to a 102 basis point decrease in the average yield on deposits in financial institutions, and an 18 basis point decline in the average yield on loans and leases, offset partially by a 27 basis point increase in the average yield on investment securities. The average yield on deposits in financial institutions decreased to 4.39% from 5.41% driven by the federal funds rate cuts described above, while the average yield on loans and leases decreased to 5.96% from 6.14%, driven by lower net loan discount accretion income and market rates. The average yield on investment securities increased to 3.21% from 2.94%, reflecting continued benefits from the 2024 balance sheet repositioning actions and reinvestment into higher-yield assets.

	Nine Months Ended																		Increase (Decrease)
	September 30, 2025									September 30, 2024									YoY
Summary				Interest			Average						Interest			Average							Average
Average Balance	Average			Income/			Yield/			Average			Income/			Yield/			Average				Yield/
and Yield/Cost Data	Balance			Expense			Cost			Balance			Expense			Cost			Balance				Cost
	(Dollars in thousands)
Assets:
Loans and leases(1)	$	24,252,860		$	1,081,129		5.96	%		$	24,878,682		$	1,144,231		6.14	%		$	(625,822	)		(0.18	)%
Investment securities		4,745,530			113,769		3.21	%			4,681,872			103,051		2.94	%			63,658			0.27	%
Deposits in financial institutions		1,972,486			64,807		4.39	%			3,479,130			140,904		5.41	%			(1,506,644	)		(1.02	)%
Total interest-earning assets	$	30,970,876		$	1,259,705		5.44	%		$	33,039,684		$	1,388,186		5.61	%		$	(2,068,808	)		(0.17	)%
Liabilities:
Noninterest-bearing demand deposits	$	7,660,504								$	7,804,534								$	(144,030	)
Total interest-bearing deposits		19,513,486		$	428,544		2.94	%			21,048,955		$	561,899		3.57	%			(1,535,469	)		(0.63	)%
Total deposits	$	27,173,990			428,544		2.11	%		$	28,853,489			561,899		2.60	%		$	(1,679,499	)		(0.49	)%
Total interest-bearing liabilities	$	22,038,389		$	533,681		3.24	%		$	23,974,047		$	697,421		3.89	%		$	(1,935,658	)		(0.65	)%
Net interest income(1)				$	726,024								$	690,765
Net interest margin							3.13	%								2.79	%						0.34	%
Total funds(2)	$	29,698,893		$	533,681		2.40	%		$	31,778,581		$	697,421		2.93	%		$	(2,079,688	)		(0.53	)%

______________
(1)		Includes net loan discount accretion of $51.5 million and $67.3 million for the nine months ended September 30, 2025 and 2024.
(2)		Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

Provision For Credit Losses

Third Quarter of 2025 Compared to Second Quarter of 2025

The provision for credit losses was $9.7 million for the third quarter compared to $39.1 million for the second quarter. The third quarter provision included a provision for loan losses of $8.7 million and a $1.0 million provision for unfunded loan commitments.

The third quarter provision for loan losses and unfunded loan commitments reflected changes in loan risk ratings, new originations, changes in the macroeconomic outlook, and higher unfunded commitments, partially offset by net recoveries and a lower qualitative reserve driven by lower balances in commercial real estate loans secured by office properties compared to the prior quarter.

The second quarter provision included a $38.6 million provision for loan losses and a $0.9 million provision for credit losses related to investment securities, offset by a $0.4 million reversal of the provision for unfunded loan commitments.

The second quarter provision for loan losses included $26.3 million related to loans transferred to held for sale ("HFS") for the pending strategic loan sales. The remaining $12.3 million increase in provision for loan losses was primarily driven by net charge-off activity experienced during the quarter, and an increase in the reserve driven by the updated economic forecast.

YTD September 30, 2025 vs YTD September 30, 2024

The provision for credit losses was $58.1 million for the nine months ended September 30, 2025, compared to $30.0 million for the nine months ended September 30, 2024. The provision for the 2025 period primarily included a provision for loan losses of $57.0 million and a provision for unfunded loan commitments of $1.2 million.

The provision for the 2025 period included $26.3 million related to loans transferred to HFS, as described above. The remaining increase in the provision for loan losses and unfunded loan commitments was primarily driven by net charge-off activity experienced in the first half of the year, with additional impacts from changes in loan risk ratings. These were offset partially by lower specific reserves and a favorable shift in the portfolio mix due to growth in loan segments with lower expected credit losses.

The provision for loan losses and unfunded loan commitments for the 2024 period included a $32.0 million provision for loan losses and a $2.0 million reversal of the provision for unfunded loan commitments. The provision for the 2024 period was generally due to higher net charge-offs and higher qualitative reserves, offset partially by the reserves released for the Civic loans transferred to HFS in the second quarter of 2024 and sold in the third quarter of 2024.

Noninterest Income

Third Quarter of 2025 Compared to Second Quarter of 2025

Noninterest income increased by $1.7 million to $34.3 million for the third quarter from $32.6 million for the second quarter due mainly to a $2.4 million increase in dividends and gains on equity investments, offset partially by a $0.8 million decrease in warrant income. The increase in dividends and gains on equity investments was primarily related to fair value gains in the third quarter on Small Business Investment Company (“SBIC”) investments compared to fair value losses in the second quarter. The decrease in warrant income was driven by lower gains from warrant exercises.

YTD September 30, 2025 vs YTD September 30, 2024

Noninterest income increased by $52.4 million to $100.6 million for the nine months ended September 30, 2025 from $48.2 million for the nine months ended September 30, 2024. The prior year period included a $59.9 million loss on the sale of $742 million of securities executed as part of a balance sheet repositioning initiative, which was partially offset by a $9.0 million decrease in leased equipment income, as the prior year benefited from higher gains from early lease terminations and sale of leased assets.

Noninterest Expense

Third Quarter of 2025 Compared to Second Quarter of 2025

Noninterest expense remained relatively flat at $185.7 million for the third quarter compared to $185.9 million for the second quarter.

YTD September 30, 2025 vs YTD September 30, 2024

Noninterest expense decreased by $55.2 million to $555.2 million for the nine months ended September 30, 2025 due mainly to decreases of $33.9 million in insurance and assessments, $17.2 million in customer related expenses, $6.4 million in occupancy expense, and $10.7 million in all of the other expense categories, offset partially by an increase of $13.2 million in acquisition, integration and reorganization costs. Insurance and assessment decreased primarily due to incremental FDIC special assessments recorded in 2024, which reflected higher assessment rates. Customer related expense decreased due to lower earnings credit rate expenses, driven by the lower federal funds rate. Occupancy expense decreased as a result of cost savings from branch consolidations following the PacWest Bancorp merger. Acquisition, integration and reorganization costs of $13.2 million in 2024 reflected adjustments to the merger-related accruals, as actual expenses were lower than previously estimated.

Income Taxes

Third Quarter of 2025 Compared to Second Quarter of 2025

Income tax expense of $22.7 million was recorded for the third quarter resulting in an effective tax rate of 24.6% compared to income tax expense of $19.5 million and an effective tax rate of 40.7% for the second quarter.

The higher effective tax rate in the second quarter of 2025 included a one-time non-cash income tax expense of $9.8 million due primarily to the revaluation of deferred tax assets related to the California state tax changes passed as part of the 2025 California budget enacted on June 30, 2025 and effective retroactively to January 1, 2025.

YTD September 30, 2025 vs YTD September 30, 2024

Income tax expense of $61.7 million was recorded for the nine months ended September 30, 2025, resulting in an effective tax rate of 28.9% compared to income tax expense of $28.6 million and an effective tax rate of 29.0% for the comparable period in 2024.

BALANCE SHEET HIGHLIGHTS
	September 30,			June 30,			September 30,			Increase (Decrease)
Selected Balance Sheet Items	2025			2025			2024			QoQ				YoY
	(In thousands)
Cash and cash equivalents	$	2,398,265		$	2,353,552		$	2,554,227		$	44,713			$	(155,962	)
Securities available-for-sale		2,426,734			2,246,174			2,300,284			180,560				126,450
Securities held-to-maturity		2,303,657			2,316,725			2,301,263			(13,068	)			2,394
Loans held for sale		211,454			465,571			28,639			(254,117	)			182,815
Loans and leases held for investment		24,110,642			24,245,893			23,527,777			(135,251	)			582,865
Total loans and leases		24,322,096			24,711,464			23,556,416			(389,368	)			765,680
Total assets		34,012,965			34,250,453			33,432,613			(237,488	)			580,352
Noninterest-bearing deposits	$	7,603,748		$	7,441,116		$	7,811,796		$	162,632			$	(208,048	)
Total deposits		27,184,765			27,528,433			26,828,269			(343,668	)			356,496
Borrowings		2,005,022			1,917,180			1,591,833			87,842				413,189
Total liabilities		30,546,226			30,823,610			29,936,415			(277,384	)			609,811
Total stockholders' equity		3,466,739			3,426,843			3,496,198			39,896				(29,459	)

Securities

Securities available-for-sale ("AFS") increased by $180.6 million during the third quarter to $2.4 billion at September 30, 2025. The increase was primarily driven by $277.6 million of purchases and a $25.8 million increase in the fair value of AFS securities, offset partially by $110.4 million of principal paydowns, $10.6 million of maturities, and $1.8 million of net amortization. As of September 30, 2025, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $147.9 million, down from $166.6 million at June 30, 2025. AFS securities recorded lower unrealized net losses quarter-over-quarter, driven by a slight decline in interest rates, which positively impacted fair values.

The balance of securities held-to-maturity ("HTM") decreased by $13.1 million in the third quarter to $2.3 billion at September 30, 2025. As of September 30, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $139.7 million remaining from the balance established at the time of transfer from AFS.

Loans and Leases

The following table sets forth the composition, by loan category, of our loan and lease portfolio held for investment as of the dates indicated:

	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
	(Dollars in thousands)
Composition of Loans and Leases
Real estate mortgage:
Commercial	$	4,292,625			$	4,369,401			$	4,489,543			$	4,578,772			$	4,557,939
Multi-family		6,124,673				6,280,791				6,216,084				6,041,713				6,009,280
Other residential		3,162,564				3,157,616				2,787,031				2,807,174				2,767,187
Total real estate mortgage		13,579,862				13,807,808				13,492,658				13,427,659				13,334,406
Real estate construction and land:
Commercial		395,150				381,449				733,684				799,131				836,902
Residential		1,759,676				1,920,642				2,127,354				2,373,162				2,622,507
Total real estate construction and land		2,154,826				2,302,091				2,861,038				3,172,293				3,459,409
Total real estate		15,734,688				16,109,899				16,353,696				16,599,952				16,793,815
Commercial:
Asset-based		2,742,519				2,462,351				2,305,325				2,087,969				2,115,311
Venture capital		1,907,601				2,002,601				1,733,074				1,537,776				1,353,626
Other commercial		3,356,537				3,288,305				3,340,400				3,153,084				2,850,535
Total commercial		8,006,657				7,753,257				7,378,799				6,778,829				6,319,472
Consumer		369,297				382,737				394,032				402,882				414,490
Total loans and leases held for investment	$	24,110,642			$	24,245,893			$	24,126,527			$	23,781,663			$	23,527,777
Total unfunded loan commitments	$	4,822,917			$	4,673,596			$	4,858,960			$	4,887,690			$	5,008,449
Composition as % of Total Loans and Leases
Real estate mortgage:
Commercial		18	%			18	%			19	%			19	%			19	%
Multi-family		25	%			26	%			26	%			26	%			25	%
Other residential		13	%			13	%			11	%			12	%			12	%
Total real estate mortgage		56	%			57	%			56	%			57	%			56	%
Real estate construction and land:
Commercial		2	%			1	%			3	%			3	%			4	%
Residential		7	%			8	%			9	%			10	%			11	%
Total real estate construction and land		9	%			9	%			12	%			13	%			15	%
Total real estate		65	%			66	%			68	%			70	%			71	%
Commercial:
Asset-based		11	%			10	%			9	%			9	%			9	%
Venture capital		8	%			8	%			7	%			6	%			6	%
Other commercial		14	%			14	%			14	%			13	%			12	%
Total commercial		33	%			32	%			30	%			28	%			27	%
Consumer		2	%			2	%			2	%			2	%			2	%
Total loans and leases held for investment		100	%			100	%			100	%			100	%			100	%

Total loans and leases held for investment decreased by $135.3 million in the third quarter and totaled $24.1 billion at September 30, 2025. The decrease in loans and leases held for investment was due primarily to decreased balances in residential real estate construction and land loans, multi-family loans, and venture capital loans, offset partially by an increase in asset-based loans. Loan production and disbursements totaled $2.1 billion in the third quarter with a weighted average interest rate on production of 7.08%.

Total loans and leases held for sale decreased by $254.1 million in the third quarter and totaled $211.5 million at September 30, 2025. The decrease in loans held for sale primarily reflects the sale of loans that were transferred to held for sale in the second quarter, as well as loan payoffs.

Credit Quality
	September 30,				June 30,				March 31,				December 31,				September 30,
Asset Quality Information and Ratios	2025				2025				2025				2024				2024
	(Dollars in thousands)
Delinquent loans and leases held for investment:
30 to 89 days delinquent	$	56,416			$	53,900			$	100,664			$	91,347			$	52,927
90+ days delinquent		104,952				95,566				99,976				88,846				72,037
Total delinquent loans and leases	$	161,368			$	149,466			$	200,640			$	180,193			$	124,964
Total delinquent loans and leases to loans and leases held for investment		0.67	%			0.62	%			0.83	%			0.76	%			0.53	%
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases	$	174,541			$	167,516			$	213,480			$	189,605			$	168,341
90+ days delinquent loans and still accruing		—				—				—				—				—
Total nonperforming loans and leases ("NPLs")		174,541				167,516				213,480				189,605				168,341
Foreclosed assets, net		4,790				7,806				5,474				9,734				8,661
Total nonperforming assets ("NPAs")	$	179,331			$	175,322			$	218,954			$	199,339			$	177,002
Classified loans and leases held for investment	$	763,582			$	656,556			$	764,723			$	563,502			$	533,591
Special mention loans and leases held for investment		505,979				661,568				937,014				1,097,315				711,888
Criticized loans and leases held for investment	$	1,269,561			$	1,318,124			$	1,701,737			$	1,660,817			$	1,245,479
Allowance for loan and lease losses	$	240,501			$	229,344			$	234,986			$	239,360			$	254,345
Allowance for loan and lease losses to NPLs		137.79	%			136.91	%			110.07	%			126.24	%			151.09	%
NPLs to loans and leases held for investment		0.72	%			0.69	%			0.88	%			0.80	%			0.72	%
NPAs to total assets		0.53	%			0.51	%			0.65	%			0.59	%			0.53	%
Classified loans and leases to loans and leases held for investment		3.17	%			2.71	%			3.17	%			2.37	%			2.27	%
Special mention loans and leases to loans and leases held for investment		2.10	%			2.73	%			3.88	%			4.61	%			3.03	%

The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, and robust credit metrics. Credit quality metrics remained stable in the third quarter, with 4% reduction in criticized loans from the second quarter driven by special mention loans decreasing 24% to 2.10% of total loans held for investment, partially offset by an increase in classified loans, which increased to 3.17% largely due to a risk rating framework update within the Venture Banking loan portfolio. Classified loans also included a $49.6 million commercial real estate loan which became classified in the third quarter. Subsequent to quarter end, the borrower entered into a contract to sell the underlying property at a price above our loan amount. The sale is expected to close in the fourth quarter.

At September 30, 2025, total delinquent loans and leases were $161.4 million, compared to $149.5 million at June 30, 2025. The $11.9 million increase in total delinquent loans was driven by higher balances in both the 30 to 89 days and the 90 or more days delinquent categories. The 30 to 89 days delinquent category increased by $3.7 million in other commercial loans. In the 90 or more days delinquent category, there were increases of $26.6 million in other residential real estate mortgage loans and $4.8 million in commercial real estate mortgage loans, offset partially by a decrease of $21.7 million in multi-family loans. Total delinquent loans and leases as a percentage of loans and leases held for investment increased to 0.67% at September 30, 2025 from 0.62% at June 30, 2025.

At September 30, 2025, nonperforming loans and leases were $174.5 million, compared to $167.5 million at June 30, 2025. During the third quarter, nonperforming loans and leases increased by $7.0 million due to additions of $40.0 million, offset partially by payoffs and paydowns of $27.4 million, transfers to accrual status of $3.0 million, and charge-offs of $2.7 million.

Nonperforming loans and leases as a percentage of loans and leases held for investment increased to 0.72% at September 30, 2025 from 0.69% at June 30, 2025.

At September 30, 2025, nonperforming assets were $179.3 million, or 0.53% of total assets, compared to $175.3 million, or 0.51% of total assets, as of June 30, 2025. At September 30, 2025, nonperforming assets included $4.8 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
Allowance for Credit Losses - Loans	2025				2025				2024				2025				2024
	(Dollars in thousands)
Allowance for loan and lease losses ("ALLL"):
Balance at beginning of period	$	229,344			$	234,986			$	247,762			$	239,360			$	281,687
Charge-offs		(6,465	)			(46,948	)			(4,163	)			(69,964	)			(67,247	)
Recoveries		8,922				2,726				1,746				14,125				7,905
Net recoveries (charge-offs)		2,457				(44,222	)			(2,417	)			(55,839	)			(59,342	)
Provision for loan losses		8,700				38,580				9,000				56,980				32,000
Balance at end of period	$	240,501			$	229,344			$	254,345			$	240,501			$	254,345
Reserve for unfunded loan commitments ("RUC"):
Balance at beginning of period	$	29,221			$	29,571			$	27,571			$	29,071			$	29,571
Provision for credit losses		1,000				(350	)			—				1,150				(2,000	)
Balance at end of period	$	30,221			$	29,221			$	27,571			$	30,221			$	27,571
Allowance for credit losses ("ACL") - Loans:
Balance at beginning of period	$	258,565			$	264,557			$	275,333			$	268,431			$	311,258
Charge-offs		(6,465	)			(46,948	)			(4,163	)			(69,964	)			(67,247	)
Recoveries		8,922				2,726				1,746				14,125				7,905
Net recoveries (charge-offs)		2,457				(44,222	)			(2,417	)			(55,839	)			(59,342	)
Provision for credit losses		9,700				38,230				9,000				58,130				30,000
Balance at end of period	$	270,722			$	258,565			$	281,916			$	270,722			$	281,916
ALLL to loans and leases held for investment		1.00	%			0.95	%			1.08	%			1.00	%			1.08	%
ACL to loans and leases held for investment		1.12	%			1.07	%			1.20	%			1.12	%			1.20	%
ACL to NPLs		155.11	%			154.35	%			167.47	%			155.11	%			167.47	%
ACL to NPAs		150.96	%			147.48	%			159.27	%			150.96	%			159.27	%
Annualized net (recoveries) charge-offs to average loans and leases		(0.04	)%			0.72	%			0.04	%			0.31	%			0.32	%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $270.7 million, or 1.12% of total loans and leases, at September 30, 2025, compared to $258.6 million, or 1.07% of total loans and leases, at June 30, 2025. The $12.2 million increase in the allowance was driven by a $9.7 million provision and net recoveries of $2.5 million, and the ACL coverage ratio increased by 5 basis points driven by the higher allowance balance and lower loan balances of $135.3 million.

During the third quarter, we recorded a provision of $9.7 million that consisted of an $8.7 million provision associated with the ALLL and a $1.0 million provision associated with the RUC commitments.

Our ability to absorb credit losses is also bolstered by (i) $110.5 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.2 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $17.5 million on approximately $1.4 billion of purchased loans without credit deterioration. When the loss coverage from the credit-linked notes and unearned credit marks is added to our allowance for credit losses, this provides additional economic coverage on top of our ACL ratio. We refer to this adjusted ACL ratio as our economic coverage ratio⁽¹⁾, which equaled 1.65% of total loans and leases at September 30, 2025 compared to 1.61% at June 30, 2025.

The ACL coverage of nonperforming loans and leases was 155% at September 30, 2025 compared to 154% at June 30, 2025.

Net recoveries were 0.04% of average loans and leases (annualized) for the third quarter, compared to net charge-offs of 0.72% for the second quarter. The improvement in the third quarter was primarily attributable to $2.8 million of net recoveries related to commercial loans and $1.4 million related to real estate construction loans.

(1)

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

Deposits and Client Investment Funds

The following table sets forth the composition of our deposits at the dates indicated:

	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
	(Dollars in thousands)
Composition of Deposits
Noninterest-bearing checking	$	7,603,748			$	7,441,116			$	7,593,950			$	7,719,913			$	7,811,796
Interest-bearing:
Checking		7,930,951				7,974,452				7,747,051				7,610,705				7,539,899
Money market		4,974,177				5,375,080				5,367,788				5,361,635				5,039,607
Savings		1,949,369				1,932,906				1,999,062				1,933,232				1,992,364
Time deposits:
Non-brokered		2,468,017				2,492,890				2,490,639				2,488,217				2,451,340
Brokered		2,258,503				2,311,989				1,994,701				2,078,207				1,993,263
Total time deposits		4,726,520				4,804,879				4,485,340				4,566,424				4,444,603
Total interest-bearing		19,581,017				20,087,317				19,599,241				19,471,996				19,016,473
Total deposits	$	27,184,765			$	27,528,433			$	27,193,191			$	27,191,909			$	26,828,269
Composition as % of Total Deposits
Noninterest-bearing checking		28	%			27	%			28	%			28	%			29	%
Interest-bearing:
Checking		29	%			29	%			29	%			28	%			28	%
Money market		19	%			20	%			20	%			20	%			19	%
Savings		7	%			7	%			7	%			7	%			7	%
Time deposits:
Non-brokered		9	%			9	%			9	%			9	%			9	%
Brokered		8	%			8	%			7	%			8	%			8	%
Total time deposits		17	%			17	%			16	%			17	%			17	%
Total interest-bearing		72	%			73	%			72	%			72	%			71	%
Total deposits		100	%			100	%			100	%			100	%			100	%

Total deposits decreased by $343.7 million to $27.2 billion at September 30, 2025 from $27.5 billion at June 30, 2025, driven by a decrease in interest-bearing deposits of $506.3 million, offset partially by an increase in noninterest-bearing deposits of $162.6 million. Interest-bearing deposits decreased due mainly to lower balances in money market accounts of $400.9 million, lower brokered and non-brokered time deposits of $78.4 million, and lower checking accounts of $43.5 million, offset partially by higher savings accounts of $16.5 million.

At September 30, 2025, noninterest-bearing checking deposits totaled $7.6 billion, or 28% of total deposits, compared to $7.4 billion, or 27% of total deposits, at June 30, 2025.

At September 30, 2025, uninsured and uncollateralized deposits totaled $7.6 billion, or 28% of total deposits, compared to $7.6 billion, or 27% of total deposits, at June 30, 2025.

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These off-balance sheet client funds totaled $1.1 billion as of September 30, 2025, compared to $1.5 billion as of June 30, 2025.

Borrowings

Borrowings increased by $87.8 million to $2.0 billion at September 30, 2025 from $1.9 billion at June 30, 2025, mainly due to higher overnight and short-term borrowings.

Equity

During the third quarter, total stockholders’ equity increased by $39.9 million to $3.5 billion and tangible common equity⁽¹⁾ increased by $46.9 million to $2.6 billion at September 30, 2025. The increase in total stockholders’ equity for the third quarter resulted primarily from net earnings of $69.6 million, a decrease in the net after-tax net loss in AOCI for AFS and HTM securities of $25.0 million, and share-based award compensation of $6.1 million, offset partially by the repurchase of common and common equivalent stock of $35.5 million and common and preferred stock dividends of $26.1 million.

At September 30, 2025, book value per common share increased to $19.09 compared to $18.58 at June 30, 2025, and tangible book value per common share⁽¹⁾ increased to $16.99 compared to $16.46 at June 30, 2025.

During the third quarter of 2025, common and common equivalent stock repurchased under the Company's stock repurchase program totaled 2,153,792 shares at a weighted average price per share of $16.48, or $35.5 million in the aggregate. For the nine-month period ended September 30, 2025, repurchases of Company common and common equivalent stock totaled 13,648,429 shares at a weighted average price per share of $13.59, or $185.5 million in the aggregate. As of September 30, 2025, the Company had $114.5 million remaining under the current stock repurchase authorization.

(1)

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

CAPITAL AND LIQUIDITY

The following table sets forth our regulatory capital ratios as of the dates indicated:

	September 30,			June 30,			March 31,			December 31,			September 30,
	2025			2025			2025			2024			2024
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	16.69	%		16.37	%		16.93	%		17.05	%		17.00	%
Tier 1 risk-based capital ratio	12.56	%		12.34	%		12.86	%		12.97	%		12.88	%
Common equity tier 1 capital ratio	10.14	%		9.95	%		10.45	%		10.55	%		10.46	%
Tier 1 leverage ratio	9.77	%		9.74	%		10.19	%		10.15	%		9.83	%
Banc of California
Total risk-based capital ratio	15.94	%		15.65	%		16.22	%		16.65	%		16.61	%
Tier 1 risk-based capital ratio	13.42	%		13.21	%		13.74	%		14.17	%		14.08	%
Common equity tier 1 capital ratio	13.42	%		13.21	%		13.74	%		14.17	%		14.08	%
Tier 1 leverage ratio	10.44	%		10.42	%		10.88	%		11.08	%		10.74	%

______________
(1)		September 30, 2025 capital ratios are preliminary.

At September 30, 2025, cash and cash equivalents totaled $2.4 billion, up $44.7 million from June 30, 2025.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.2 billion. Combined with total available borrowing capacity of $10.3 billion and unpledged AFS securities of $2.2 billion, total available liquidity was $14.8 billion at the end of the third quarter.

Conference Call

The Company will host a conference call to discuss its third quarter 2025 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, October 23, 2025. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5396883. A live audio webcast will also be available, and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (877) 344-7529 and referencing event code 2897660.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. Member FDIC. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of tariffs, supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales or may not be able to execute anticipated asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and from time to time in other documents that we file with or furnish to the SEC.

Non-GAAP Financial Measures

Included in this press release are certain non-GAAP financial measures, such as tangible common equity, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted net earnings, adjusted return on average assets, pre-tax pre-provision income, efficiency ratio, and economic coverage ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
	September 30,				June 30,				March 31,				December 31,				September 30,
	2025				2025				2025				2024				2024
ASSETS:	(Dollars in thousands)
Cash and due from banks	$	205,364			$	222,210			$	215,591			$	192,006			$	251,869
Interest-earning deposits in financial institutions		2,192,901				2,131,342				2,128,298				2,310,206				2,302,358
Total cash and cash equivalents		2,398,265				2,353,552				2,343,889				2,502,212				2,554,227
Securities available-for-sale		2,426,734				2,246,174				2,334,058				2,246,839				2,300,284
Securities held-to-maturity		2,303,657				2,316,725				2,311,912				2,306,149				2,301,263
FRB and FHLB stock		159,337				162,243				155,330				147,773				145,123
Total investment securities		4,889,728				4,725,142				4,801,300				4,700,761				4,746,670
Loans held for sale		211,454				465,571				25,797				26,331				28,639
Loans and leases held for investment		24,110,642				24,245,893				24,126,527				23,781,663				23,527,777
Allowance for loan and lease losses		(240,501	)			(229,344	)			(234,986	)			(239,360	)			(254,345	)
Total loans and leases held for investment, net		23,870,141				24,016,549				23,891,541				23,542,303				23,273,432
Equipment leased to others under operating leases		280,872				288,692				295,032				307,188				314,998
Premises and equipment, net		132,766				138,032				140,347				142,546				143,200
Bank owned life insurance		348,051				346,142				342,810				339,517				343,212
Goodwill		214,521				214,521				214,521				214,521				216,770
Intangible assets, net		111,923				118,930				125,937				132,944				140,562
Deferred tax asset, net		672,159				691,535				702,323				720,587				706,849
Other assets		883,085				891,787				896,421				913,954				964,054
Total assets	$	34,012,965			$	34,250,453			$	33,779,918			$	33,542,864			$	33,432,613
LIABILITIES:
Noninterest-bearing deposits	$	7,603,748			$	7,441,116			$	7,593,950			$	7,719,913			$	7,811,796
Interest-bearing deposits		19,581,017				20,087,317				19,599,241				19,471,996				19,016,473
Total deposits		27,184,765				27,528,433				27,193,191				27,191,909				26,828,269
Borrowings		2,005,022				1,917,180				1,670,782				1,391,814				1,591,833
Subordinated debt		950,888				949,213				944,908				941,923				942,151
Accrued interest payable and other liabilities		405,551				428,784				449,381				517,269				574,162
Total liabilities		30,546,226				30,823,610				30,258,262				30,042,915				29,936,415
STOCKHOLDERS' EQUITY:
Preferred stock		498,516				498,516				498,516				498,516				498,516
Common stock		1,509				1,474				1,561				1,586				1,586
Class B non-voting common stock		5				5				5				5				5
Non-voting common stock equivalents		41				98				98				98				98
Additional paid-in-capital		3,563,145				3,609,109				3,732,376				3,785,725				3,802,314
Retained deficit		(309,460	)			(369,142	)			(387,580	)			(431,201	)			(478,173	)
Accumulated other comprehensive loss, net		(287,017	)			(313,217	)			(323,320	)			(354,780	)			(328,148	)
Total stockholders’ equity		3,466,739				3,426,843				3,521,656				3,499,949				3,496,198
Total liabilities and stockholders’ equity	$	34,012,965			$	34,250,453			$	33,779,918			$	33,542,864			$	33,432,613
Common shares outstanding (1)		155,522,693				157,647,137				166,403,086				168,825,656				168,879,566

______________
(1)		Common shares outstanding include non-voting common stock equivalents that are participating securities.

BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
	2025				2025				2024				2025				2024
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	372,723			$	362,303			$	369,913			$	1,081,129			$	1,144,231
Investment securities		38,291				37,616				34,912				113,769				103,051
Deposits in financial institutions		21,527				20,590				42,068				64,807				140,904
Total interest income		432,541				420,509				446,893				1,259,705				1,388,186
Interest expense:
Deposits		143,074				144,940				180,986				428,544				561,899
Borrowings		20,461				20,021				16,970				58,903				85,405
Subordinated debt		15,562				15,332				16,762				46,234				50,117
Total interest expense		179,097				180,293				214,718				533,681				697,421
Net interest income		253,444				240,216				232,175				726,024				690,765
Provision for credit losses		9,700				39,100				9,000				58,100				30,000
Net interest income after provision for credit losses		243,744				201,116				223,175				667,924				660,765
Noninterest income:
Service charges on deposit accounts		5,109				4,456				4,568				14,108				13,813
Commissions and fees		9,514				9,641				8,256				29,113				25,027
Leased equipment income		10,321				10,231				17,176				31,336				40,379
(Loss) gain on sale of loans and leases		(374	)			30				(62	)			(133	)			625
Loss on sale of securities		—				—				(59,946	)			—				(59,946	)
Dividends and gains (losses) on equity investments		2,291				(114	)			3,730				4,500				7,964
Warrant income		433				1,227				211				1,365				65
LOCOM HFS adjustment		—				(9	)			(74	)			(9	)			218
Other income		6,991				7,171				10,689				20,288				20,011
Total noninterest income		34,285				32,633				(15,452	)			100,568				48,156
Noninterest expense:
Compensation		88,865				88,362				85,585				263,644				263,735
Occupancy		15,415				15,473				16,892				45,898				52,315
Information technology and data processing		13,535				13,073				14,995				41,707				45,872
Other professional services		5,394				6,406				5,101				16,313				15,359
Insurance and assessments		8,994				9,403				12,708				25,680				59,600
Intangible asset amortization		7,160				7,159				8,485				21,479				25,373
Leased equipment depreciation		6,750				6,700				7,144				20,191				22,175
Acquisition, integration and reorganization costs		—				—				(510	)			—				(13,160	)
Customer related expense		26,227				26,577				34,475				80,555				97,799
Loan expense		4,947				4,050				3,994				11,927				12,817
Other expense		8,397				8,666				7,340				27,812				28,485
Total noninterest expense		185,684				185,869				196,209				555,206				610,370
Earnings before income taxes		92,345				47,880				11,514				213,286				98,551
Income tax expense		22,716				19,495				2,730				61,704				28,582
Net earnings		69,629				28,385				8,784				151,582				69,969
Preferred stock dividends		9,947				9,947				9,947				29,841				29,841
Net earnings (loss) available to common and equivalent stockholders	$	59,682			$	18,438			$	(1,163	)		$	121,741			$	40,128
Earnings (loss) per common share:
Basic	$	0.38			$	0.12			$	(0.01	)		$	0.75			$	0.24
Diluted	$	0.38			$	0.12			$	(0.01	)		$	0.75			$	0.24
Weighted average number of common shares (1) outstanding:
Basic		157,104				158,354				168,583				161,276				168,386
Diluted		159,051				158,462				168,583				161,993				168,386

______________
(1)		Common shares outstanding include non-voting common stock equivalents that are participating securities.

BANC OF CALIFORNIA, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Profitability and Other Ratios	2025			2025			2024			2025			2024
Return on average assets (1)	0.82	%		0.34	%		0.10	%		0.60	%		0.26	%
Adjusted ROAA (1)(2)	0.82	%		0.69	%		0.59	%		0.72	%		0.41	%
Return on average equity (1)	8.04	%		3.32	%		1.01	%		5.85	%		2.74	%
Return on average tangible common equity (1)(2)	9.87	%		3.70	%		0.70	%		6.99	%		3.13	%
Adjusted return on average tangible common equity (1)(2)	9.87	%		8.34	%		7.30	%		8.46	%		5.12	%
Dividend payout ratio (3)	26.32	%		83.33	%		(1000.00	)%		40.00	%		125.00	%
Average yield on loans and leases (1)	6.05	%		5.93	%		6.18	%		5.96	%		6.14	%
Average yield on interest-earning assets (1)	5.50	%		5.42	%		5.63	%		5.44	%		5.61	%
Average cost of interest-bearing deposits (1)	2.89	%		2.95	%		3.52	%		2.94	%		3.57	%
Average total cost of deposits (1)	2.08	%		2.13	%		2.54	%		2.11	%		2.60	%
Average cost of interest-bearing liabilities (1)	3.19	%		3.24	%		3.80	%		3.24	%		3.89	%
Average total cost of funds (1)	2.37	%		2.42	%		2.82	%		2.40	%		2.93	%
Net interest spread	2.31	%		2.18	%		1.83	%		2.20	%		1.72	%
Net interest margin (1)	3.22	%		3.10	%		2.93	%		3.13	%		2.79	%
Noninterest income to total revenue (4)	11.92	%		11.96	%		(7.13	)%		12.17	%		6.52	%
Noninterest expense to average total assets (1)	2.18	%		2.21	%		2.27	%		2.21	%		2.27	%
Noninterest expense to total revenue (4)	64.53	%		68.12	%		90.53	%		67.17	%		82.60	%
Efficiency ratio (2)(5)	62.05	%		65.50	%		68.04	%		64.57	%		74.88	%
Loans to deposits ratio	89.47	%		89.77	%		87.80	%		89.47	%		87.80	%
Average loans and leases to average deposits	89.62	%		89.74	%		84.05	%		89.25	%		86.22	%
Average investment securities to average total assets	14.14	%		13.98	%		13.55	%		14.11	%		13.03	%
Average stockholders' equity to average total assets	10.16	%		10.16	%		10.03	%		10.30	%		9.50	%

______________
(1)		Annualized.
(2)		Non-GAAP measure.
(3)		Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.
(4)		Total revenue equals the sum of net interest income and noninterest income.
(5)		Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue.

BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
	Three Months Ended
	September 30, 2025									June 30, 2025									September 30, 2024
				Interest			Average						Interest			Average						Interest			Average
	Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
	Balance			Expense			Cost			Balance			Expense			Cost			Balance			Expense			Cost
	(Dollars in thousands)
Assets:
Loans and leases (1)	$	24,458,255		$	372,723		6.05	%		$	24,504,319		$	362,303		5.93	%		$	23,803,691		$	369,913		6.18	%
Investment securities		4,782,070			38,291		3.18	%			4,719,954			37,616		3.20	%			4,665,549			34,912		2.98	%
Deposits in financial institutions		1,958,011			21,527		4.36	%			1,872,736			20,590		4.41	%			3,106,227			42,068		5.39	%
Total interest-earning assets		31,198,336			432,541		5.50	%			31,097,009			420,509		5.42	%			31,575,467			446,893		5.63	%
Other assets		2,632,881									2,667,140									2,850,718
Total assets	$	33,831,217								$	33,764,149								$	34,426,185
Liabilities and Stockholders' Equity:
Interest checking	$	7,855,639			53,995		2.73	%		$	7,778,882			52,877		2.73	%		$	7,644,515			61,880		3.22	%
Money market		5,154,138			30,461		2.34	%			5,412,681			33,615		2.49	%			4,958,777			32,361		2.60	%
Savings		1,966,040			12,689		2.56	%			1,959,987			12,777		2.61	%			2,028,931			17,140		3.36	%
Time		4,633,089			45,929		3.93	%			4,569,490			45,671		4.01	%			5,841,965			69,605		4.74	%
Total interest-bearing deposits		19,608,906			143,074		2.89	%			19,721,040			144,940		2.95	%			20,474,188			180,986		3.52	%
Borrowings		1,705,697			20,461		4.76	%			1,628,584			20,021		4.93	%			1,063,541			16,970		6.35	%
Subordinated debt		949,690			15,562		6.50	%			946,740			15,332		6.50	%			940,480			16,762		7.09	%
Total interest-bearing liabilities		22,264,293			179,097		3.19	%			22,296,364			180,293		3.24	%			22,478,209			214,718		3.80	%
Noninterest-bearing demand deposits		7,683,136									7,583,894									7,846,641
Other liabilities		446,453									453,748									648,760
Total liabilities		30,393,882									30,334,006									30,973,610
Stockholders' equity		3,437,335									3,430,143									3,452,575
Total liabilities and stockholders' equity	$	33,831,217								$	33,764,149								$	34,426,185
Net interest income (1)				$	253,444								$	240,216								$	232,175
Net interest spread							2.31	%								2.18	%								1.83	%
Net interest margin							3.22	%								3.10	%								2.93	%
Total deposits (2)	$	27,292,042		$	143,074		2.08	%		$	27,304,934		$	144,940		2.13	%		$	28,320,829		$	180,986		2.54	%
Total funds (3)	$	29,947,429		$	179,097		2.37	%		$	29,880,258		$	180,293		2.42	%		$	30,324,850		$	214,718		2.82	%

______________
(1)		Includes net loan discount accretion of $19.3 million, $16.1 million, and $23.0 million for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024.
(2)		Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.
(3)		Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
	Nine Months Ended
	September 30, 2025									September 30, 2024
				Interest			Average						Interest			Average
	Average			Income/			Yield/			Average			Income/			Yield/
	Balance			Expense			Cost			Balance			Expense			Cost
	(Dollars in thousands)
Assets:
Loans and leases (1)	$	24,252,860		$	1,081,129		5.96	%		$	24,878,682		$	1,144,231		6.14	%
Investment securities		4,745,530			113,769		3.21	%			4,681,872			103,051		2.94	%
Deposits in financial institutions		1,972,486			64,807		4.39	%			3,479,130			140,904		5.41	%
Total interest-earning assets		30,970,876			1,259,705		5.44	%			33,039,684			1,388,186		5.61	%
Other assets		2,665,623									2,888,600
Total assets	$	33,636,499								$	35,928,284
Liabilities and Stockholders' Equity:
Interest checking	$	7,661,200			154,751		2.70	%		$	7,733,588			184,505		3.19	%
Money market		5,326,554			97,079		2.44	%			5,218,774			106,488		2.73	%
Savings		1,958,289			38,323		2.62	%			2,022,600			52,166		3.45	%
Time		4,567,443			138,391		4.05	%			6,073,993			218,740		4.81	%
Total interest-bearing deposits		19,513,486			428,544		2.94	%			21,048,955			561,899		3.57	%
Borrowings		1,578,462			58,903		4.99	%			1,986,468			85,405		5.74	%
Subordinated debt		946,441			46,234		6.53	%			938,624			50,117		7.13	%
Total interest-bearing liabilities		22,038,389			533,681		3.24	%			23,974,047			697,421		3.89	%
Noninterest-bearing demand deposits		7,660,504									7,804,534
Other liabilities		474,038									736,739
Total liabilities		30,172,931									32,515,320
Stockholders' equity		3,463,568									3,412,964
Total liabilities and stockholders' equity	$	33,636,499								$	35,928,284
Net interest income (1)				$	726,024								$	690,765
Net interest spread							2.20	%								1.72	%
Net interest margin							3.13	%								2.79	%
Total deposits (2)	$	27,173,990		$	428,544		2.11	%		$	28,853,489		$	561,899		2.60	%
Total funds (3)	$	29,698,893		$	533,681		2.40	%		$	31,778,581		$	697,421		2.93	%

______________
(1)		Includes net loan discount accretion of $51.5 million and $67.3 million for the nine months ended September 30, 2025 and 2024.
(2)		Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.
(3)		Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized total interest expense divided by average total funds.

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted net earnings, adjusted return on average assets ("Adjusted ROAA"), pre-tax pre-provision income, efficiency ratio, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible common equity is calculated by subtracting preferred stock, as applicable, from total common equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and any goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets, any goodwill impairment, and any unusual items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Adjusted net earnings is calculated by adjusting net earnings by unusual, one-time items.

Adjusted ROAA is calculated by dividing annualized adjusted net earnings, after adjustment for any unusual items, by average assets.

Pre-tax pre-provision income is calculated by subtracting noninterest expense from total revenue, which is the sum of net interest income and noninterest income.

Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net interest income and noninterest income).

Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases held for investment.

Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common Equity	September 30,			June 30,			March 31,			December 31,			September 30,
and Tangible Book Value Per Share	2025			2025			2025			2024			2024
	(Dollars in thousands, except per share amounts)
Stockholders' equity	$	3,466,739		$	3,426,843		$	3,521,656		$	3,499,949		$	3,496,198
Less: Preferred stock		498,516			498,516			498,516			498,516			498,516
Total common equity		2,968,223			2,928,327			3,023,140			3,001,433			2,997,682
Less: Goodwill and intangible assets		326,444			333,451			340,458			347,465			357,332
Tangible common equity	$	2,641,779		$	2,594,876		$	2,682,682		$	2,653,968		$	2,640,350
Book value per common share (1)	$	19.09		$	18.58		$	18.17		$	17.78		$	17.75
Tangible book value per common share (2)	$	16.99		$	16.46		$	16.12		$	15.72		$	15.63
Common shares outstanding (3)		155,522,693			157,647,137			166,403,086			168,825,656			168,879,566

______________
(1)		Total common equity divided by common shares outstanding.
(2)		Tangible common equity divided by common shares outstanding.
(3)		Common shares outstanding include non-voting common stock equivalents that are participating securities.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	Three Months Ended												Nine Months Ended
Return on Average Tangible	September 30,				June 30,				September 30,				September 30,
Common Equity ("ROATCE")	2025				2025				2024				2025				2024
	(Dollars in thousands)
Net earnings	$	69,629			$	28,385			$	8,784			$	151,582			$	69,969
Earnings before income taxes									$	11,514							$	98,551
Add: Intangible asset amortization										8,485								25,373
Adjusted earnings before income taxes for ROATCE										19,999								123,924
Adjusted income tax expense (1)										(5,522	)							(34,215	)
Adjustments:
Intangible asset amortization		7,160				7,159								21,479
Tax impact of adjustment above (1)		(1,958	)			(1,655	)							(5,872	)
Adjustment to net earnings		5,202				5,504								15,607
Adjusted net earnings for ROATCE		74,831				33,889				14,477				167,189				89,709
Less: Preferred stock dividends		9,947				9,947				9,947				29,841				29,841
Adjusted net earnings available to common and equivalent stockholders for ROATCE	$	64,884			$	23,942			$	4,530			$	137,348			$	59,868
Average stockholders' equity	$	3,437,335			$	3,430,143			$	3,452,575			$	3,463,568			$	3,412,964
Less: Average goodwill and intangible assets		330,277				337,352				361,316				337,361				358,321
Less: Average preferred stock		498,516				498,516				498,516				498,516				498,516
Average tangible common equity	$	2,608,542			$	2,594,275			$	2,592,743			$	2,627,691			$	2,556,127
Return on average equity (2)		8.04	%			3.32	%			1.01	%			5.85	%			2.74	%
ROATCE (3)		9.87	%			3.70	%			0.70	%			6.99	%			3.13	%

______________
(1)		Effective tax rates of 27.34%, 23.12%, and 27.61% used for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. Effective tax rates of 27.34% and 27.61% used for the nine months ended September 30, 2025 and 2024.
(2)		Annualized net earnings divided by average stockholders' equity.
(3)		Annualized adjusted net earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	Three Months Ended												Nine Months Ended
Adjusted Return on Average	September 30,				June 30,				September 30,				September 30,
Tangible Common Equity ("ROATCE")	2025				2025				2024				2025				2024
	(Dollars in thousands)
Net earnings	$	69,629			$	28,385			$	8,784			$	151,582			$	69,969
Earnings before income taxes									$	11,514							$	98,551
Add: Intangible asset amortization										8,485								25,373
Add: FDIC special assessment										—								5,816
Add: Loss on sale of securities										59,946								59,946
Less: Acquisition, integration, and reorganization costs										(510	)							(13,160	)
Adjusted earnings before income taxes for adjusted ROATCE										79,435								176,526
Adjusted income tax expense (1)										(21,932	)							(48,739	)
Adjustments:
Intangible asset amortization		7,160				7,159								21,479
Provision for credit losses related to transfer of loans to held for sale		—				26,289								26,289
Total adjustments		7,160				33,448								47,768
Tax impact of adjustments above (1)		(1,958	)			(7,733	)							(13,060	)
Income tax related adjustments		—				9,792								9,792
Adjustment to net earnings		5,202				35,507								44,500
Adjusted net earnings for adjusted ROATCE		74,831				63,892				57,503				196,082				127,787
Less: Preferred stock dividends		9,947				9,947				9,947				29,841				29,841
Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE	$	64,884			$	53,945			$	47,556			$	166,241			$	97,946
Average stockholders' equity	$	3,437,335			$	3,430,143			$	3,452,575			$	3,463,568			$	3,412,964
Less: Average goodwill and intangible assets		330,277				337,352				361,316				337,361				358,321
Less: Average preferred stock		498,516				498,516				498,516				498,516				498,516
Average tangible common equity	$	2,608,542			$	2,594,275			$	2,592,743			$	2,627,691			$	2,556,127
Adjusted ROATCE (2)		9.87	%			8.34	%			7.30	%			8.46	%			5.12	%

______________
(1)		Effective tax rates of 27.34%, 23.12%, and 27.61% used for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. Effective tax rates of 27.34% and 27.61% used for the nine months ended September 30, 2025 and 2024.
(2)		Annualized adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Adjusted Net Earnings, Net Earnings	Three Months Ended												Nine Months Ended
Available to Common and Equivalent	September 30,				June 30,				September 30,				September 30,
Stockholders, Diluted EPS, and ROAA	2025				2025				2024				2025				2024
	(Dollars in thousands)
Net earnings	$	69,629			$	28,385			$	8,784			$	151,582			$	69,969
Earnings before income taxes									$	11,514							$	98,551
Add: FDIC special assessment										—								5,816
Add: Loss on sale of securities										59,946								59,946
Less: Acquisition, integration, and reorganization costs										(510	)							(13,160	)
Adjusted earnings before income taxes										70,950								151,153
Adjusted income tax expense (1)										(19,589	)							(41,733	)
Adjustments:
Provision for credit losses related to transfer of loans to held for sale						26,289								26,289
Tax impact of adjustments above (1)						(6,078	)							(7,187	)
Income tax related adjustments						9,792								9,792
Adjustments to net earnings						30,003								28,894
Adjusted net earnings		69,629				58,388				51,361				180,476				109,420
Less: Preferred stock dividends		9,947				9,947				9,947				29,841				29,841
Adjusted net earnings available to common and equivalent stockholders	$	59,682			$	48,441			$	41,414			$	150,635			$	79,579
Weighted average diluted common shares outstanding		159,051				158,462				168,583			$	161,993			$	168,386
Diluted earnings (loss) per common share	$	0.38			$	0.12			$	(0.01	)		$	0.75			$	0.24
Adjusted diluted earnings per common share (2)	$	0.38			$	0.31			$	0.25			$	0.93			$	0.47
Average total assets	$	33,831,217			$	33,764,149			$	34,426,185			$	33,636,499			$	35,928,284
Return on average assets ("ROAA") (3)		0.82	%			0.34	%			0.10	%			0.60	%			0.26	%
Adjusted ROAA (4)		0.82	%			0.69	%			0.59	%			0.72	%			0.41	%

______________
(1)		Effective tax rates of 27.34%, 23.12%, and 27.61% used for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. Effective tax rates of 27.34% and 27.61% used for the nine months ended September 30, 2025 and 2024.
(2)		Annualized adjusted net earnings available to common and equivalent stockholders divided by weighted average diluted common shares outstanding.
(3)		Annualized net earnings divided by average assets.
(4)		Annualized adjusted net earnings divided by average assets.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)	Three Months Ended										Nine Months Ended
	September 30,			June 30,			September 30,				September 30,
Pre-Tax Pre-Provision Income	2025			2025			2024				2025			2024
	(Dollars in thousands)
Net interest income (GAAP)	$	253,444		$	240,216		$	232,175			$	726,024		$	690,765
Add: Noninterest income (GAAP)		34,285			32,633			(15,452	)			100,568			48,156
Total revenues (GAAP)		287,729			272,849			216,723				826,592			738,921
Less: Noninterest expense (GAAP)		185,684			185,869			196,209				555,206			610,370
Pre-tax pre-provision income (Non-GAAP)	$	102,045		$	86,980		$	20,514			$	271,386		$	128,551

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
Efficiency Ratio	2025				2025				2024				2025				2024
	(Dollars in thousands)
Noninterest expense	$	185,684			$	185,869			$	196,209			$	555,206			$	610,370
Less: Intangible asset amortization		(7,160	)			(7,159	)			(8,485	)			(21,479	)			(25,373	)
Less: Acquisition, integration, and reorganization costs		—				—				510				—				13,160
Noninterest expense used for efficiency ratio	$	178,524			$	178,710			$	188,234			$	533,727			$	598,157
Net interest income	$	253,444			$	240,216			$	232,175			$	726,024			$	690,765
Noninterest income		34,285				32,633				(15,452	)			100,568				48,156
Total revenue		287,729				272,849				216,723				826,592				738,921
Add: Loss on sale of securities		—				—				59,946				—				59,946
Total revenue used for efficiency ratio	$	287,729			$	272,849			$	276,669			$	826,592			$	798,867
Noninterest expense to total revenue		64.53	%			68.12	%			90.53	%			67.17	%			82.60	%
Efficiency ratio (1)		62.05	%			65.50	%			68.04	%			64.57	%			74.88	%

______________
(1)		Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	September 30,				June 30,
Economic Coverage Ratio	2025				2025
	(Dollars in thousands)
Allowance for credit losses ("ACL")	$	270,722			$	258,565
Add: Unearned credit mark from purchase accounting (1)		17,496				19,199
Add: Credit-linked notes (2)		110,539				112,887
Adjusted allowance for credit losses	$	398,757			$	390,651
Loans and leases held for investment	$	24,110,642			$	24,245,893
ACL to loans and leases held for investment (3)		1.12	%			1.07	%
Economic coverage ratio (4)		1.65	%			1.61	%

______________
(1)		Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with non-PCD loans (purchased loans without credit deterioration at the time of purchase).
(2)		Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.
(3)		Allowance for credit losses divided by loans and leases held for investment.
(4)		Adjusted allowance for credit losses divided by loans and leases held for investment.

 

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Investor Relations Inquiries:

Banc of California, Inc.

(855) 361-2262

Jared Wolff, (310) 424-1230

Joe Kauder, (310) 844-5224

Ann DeVries, (646) 376-7011

Media Contact:

Debora Vrana, Banc of California

(213) 533-3122

Deb.Vrana@bancofcal.com

Source: Banc of California, Inc.