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

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tangible book value per share financial

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

tier 1 capital ratio regulatory

A tier 1 capital ratio measures a bank’s core financial strength by comparing its most reliable capital — such as shareholder equity and retained profits — to its assets after adjusting for how risky those assets are. Think of it as the firm’s shock-absorbing cushion relative to the danger of its exposures; higher ratios mean the bank is better positioned to absorb losses, meet regulations and continue lending, which matters to investors assessing safety and long-term returns.

common equity tier 1 regulatory

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

federal funds rate financial

The federal funds rate is the interest rate that banks charge one another for very short‑term overnight loans, guided by the central bank’s target. Think of it like a thermostat for the cost of borrowing: when it goes up or down, it quickly affects loan and mortgage rates, corporate borrowing costs and interest income, and therefore can change company profits, consumer spending and overall stock and bond prices — key factors investors watch.

noninterest-bearing deposits financial

Noninterest-bearing deposits are bank balances—typically checking accounts and some demand deposits—that do not pay interest to the holder. Think of them as free storage boxes for customer cash: they provide banks with low-cost, stable funding that boosts profit margins because the bank can lend or invest that money without paying the depositor. Investors watch these deposits because higher levels reduce a bank’s funding costs and help its earnings stability.

asset-based financial

Asset-based describes a loan, financing arrangement, or valuation that is secured by tangible or financial assets—such as inventory, equipment, real estate, or receivables—rather than relying mainly on future profits or credit history. Investors care because asset-backed arrangements offer clearer downside protection (like a safety net you can sell if things go wrong) and influence risk, return and liquidity compared with agreements based on expected earnings alone.

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

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

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

INCOME STATEMENT HIGHLIGHTS

		Three Months Ended
		March 31,				December 31,				March 31,
Summary Income Statement		2026				2025				2025
		(In thousands)
Total interest income		$	407,442			$	416,948			$	406,655
Total interest expense			155,825				165,586				174,291
Net interest income			251,617				251,362				232,364
Provision for credit losses			9,800				12,500				9,300
Gain on sale of loans			7				18				211
Other noninterest income			35,321				41,553				33,439
Total noninterest income			35,328				41,571				33,650
Total revenue			286,945				292,933				266,014
Total noninterest expense			181,391				180,644				183,653
Earnings before income taxes			95,754				99,789				73,061
Income tax expense			23,802				22,398				19,493
Net earnings			71,952				77,391				53,568
Preferred stock dividends			9,947				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 rose by $2.3 million, supported by higher average balances from security purchases and a Federal Home Loan Bank (FHLB) special dividend. These positive factors were offset partially by a $9.3 million decrease in interest income from loans, mainly due to two fewer days in the quarter and lower average yields resulting from the federal funds rate cuts. Interest income from deposits in financial institutions also declined by $2.5 million, driven by lower average balances and interest rates.

Net interest margin was 3.24% for the first quarter, up 4 basis points from 3.20% for the fourth quarter primarily driven by lower average total cost of funds, offset partially by lower average yield on interest-earning assets. The average total cost of funds decreased to 2.10% from 2.20%, as a result of an 11 basis point decrease in the average total cost of deposits to 1.78%, and an 11 basis point decrease in the average cost of borrowings to 4.63%. The average yield on interest-earning assets decreased to 5.25% from 5.31%, as a result of a 9 basis point decrease in the average yield on loans and leases to 5.74%. Declines in both funding costs and asset yield reflect the full quarter impact of rate cuts that occurred in fourth quarter.

Average total deposits increased by $103.4 million, with a $81.2 million increase in average noninterest-bearing deposits and $22.2 million increase in average interest-bearing deposits. Average noninterest-bearing deposits represented 28.9% of average total deposits in the first quarter, up from 28.7% in the fourth quarter.

		Three Months Ended																						Increase (Decrease)
		March 31, 2026											December 31, 2025											QoQ
Summary Average Balance and Yield/Cost Data						Interest				Average							Interest				Average							Average
		Average				Income/				Yield/			Average				Income/				Yield/			Average				Yield/
		Balance				Expense				Cost			Balance				Expense				Cost			Balance				Cost
		(Dollars in thousands)
Assets:
Loans and leases(1)		$	24,710,609			$	349,943			5.74	%		$	24,443,089			$	359,268			5.83	%		$	267,520			(0.09	)%
Investment securities			5,018,002				41,873			3.38	%			4,891,281				39,557			3.21	%			126,721			0.17	%
Deposits in financial institutions			1,742,657				15,626			3.64	%			1,834,773				18,123			3.92	%			(92,116	)		(0.28	)%
Total interest-earning assets		$	31,471,268			$	407,442			5.25	%		$	31,169,143			$	416,948			5.31	%		$	302,125			(0.06	)%
Liabilities:
Noninterest-bearing demand deposits		$	7,890,489										$	7,809,326										$	81,163
Total interest-bearing deposits			19,429,112			$	120,233			2.51	%			19,406,865			$	129,896			2.66	%			22,247			(0.15	)%
Total deposits		$	27,319,601				120,233			1.78	%		$	27,216,191				129,896			1.89	%		$	103,410			(0.11	)%
Total interest-bearing liabilities		$	22,148,512			$	155,825			2.85	%		$	22,020,144			$	165,586			2.98	%		$	128,368			(0.13	)%
Net interest income(1)						$	251,617										$	251,362
Net interest margin										3.24	%										3.20	%						0.04	%
Total funds(2)		$	30,039,001			$	155,825			2.10	%		$	29,829,470			$	165,586			2.20	%		$	209,531			(0.10	)%

____________________
(1)		Includes net loan discount accretion of $12.2 million and $12.7 million for the three months ended March 31, 2026 and December 31, 2025, respectively.
(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

First Quarter of 2026 Compared to Fourth Quarter of 2025

The provision for credit losses was $9.8 million for the first quarter compared to $12.5 million for the fourth quarter.

The first quarter provision for loan losses and unfunded loan commitments was primarily driven by net charge off activity and changes in loan risk ratings including specific reserves, offset partially by lower balances in the held for investment ("HFI") portfolio and lower qualitative reserves.

The fourth quarter provision for loan losses and unfunded loan commitments was primarily driven by changes in loan risk ratings including specific reserves, and higher loan balances and unfunded commitments, offset partially by lower qualitative reserves.

Noninterest Income

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest income decreased by $6.2 million to $35.3 million for the first quarter from $41.6 million for the fourth quarter due mainly to a $7.9 million decrease in leased equipment income, offset partially by the increase of $1.5 million in commission and fees and $1.1 million in other income. The decrease in leased equipment income was due mainly to higher gains on early lease terminations in the fourth quarter.

Noninterest Expense

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest expense increased by $0.7 million to $181.4 million for the first quarter from $180.6 million for the fourth quarter due mainly to a $5.2 million increase in compensation expense, offset partially by the decrease of $2.5 million in other professional services and $1.1 million in customer related expense. The increase in compensation expense was mainly driven by seasonality, reflecting higher incentive compensation and annual reset of payroll related taxes and benefits in the first quarter. The decline in other professional services was driven by lower project spend, while customer related expenses decreased due to lower earnings credit rate payments following the federal funds rate cuts in the fourth quarter.

Income Taxes

First Quarter of 2026 Compared to Fourth Quarter of 2025

Income tax expense of $23.8 million was recorded for the first quarter resulting in an effective tax rate of 24.9% compared to income tax expense of $22.4 million and an effective tax rate of 22.4% for the fourth quarter.

BALANCE SHEET HIGHLIGHTS

		March 31,				December 31,				March 31,				Increase (Decrease)
Selected Balance Sheet Items		2026				2025				2025				QoQ				YoY
		(In thousands)
Cash and cash equivalents		$	2,217,269			$	2,307,965			$	2,343,889			$	(90,696	)		$	(126,620	)
Securities available-for-sale			2,656,332				2,454,058				2,334,058				202,274				322,274
Securities held-to-maturity			2,313,548				2,308,636				2,311,912				4,912				1,636
Loans held for sale			259,049				182,936				25,797				76,113				233,252
Loans and leases held for investment			24,780,347				25,032,679				24,126,527				(252,332	)			653,820
Total loans and leases			25,039,396				25,215,615				24,152,324				(176,219	)			887,072
Total assets			34,724,241				34,797,442				33,779,918				(73,201	)			944,323
Noninterest-bearing deposits		$	7,797,542			$	7,822,787			$	7,593,950			$	(25,245	)		$	203,592
Total deposits			27,322,134				27,843,357				27,193,191				(521,223	)			128,943
Borrowings			2,551,250				2,063,819				1,670,782				487,431				880,468
Total liabilities			31,170,915				31,256,165				30,258,262				(85,250	)			912,653
Total stockholders' equity			3,553,326				3,541,277				3,521,656				12,049				31,670

Securities

Securities available-for-sale ("AFS") increased by $202.3 million during the first quarter to $2.7 billion at March 31, 2026. The increase was primarily driven by $343.4 million of purchases, offset partially by $119.8 million of principal paydowns, $10.8 million of maturities, $9.2 million decrease in the fair value of AFS securities, and $1.3 million of net amortization. As of March 31, 2026, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $143.3 million, up from $136.6 million at December 31, 2025, driven by higher interest rates.

The balance of securities held-to-maturity ("HTM") increased by $4.9 million in the first quarter to $2.3 billion at March 31, 2026. As of March 31, 2026, HTM securities had aggregate unrealized net after-tax losses in AOCI of $127.2 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 HFI as of the dates indicated:

		March 31,				December 31,				September 30,				June 30,				March 31,
		2026				2025				2025				2025				2025
		(Dollars in thousands)
Composition of Loans and Leases
Real estate mortgage:
Commercial		$	4,093,386			$	4,314,637			$	4,292,625			$	4,369,401			$	4,489,543
Multi-family			5,955,102				6,089,417				6,124,673				6,280,791				6,216,084
Other residential			3,458,410				3,346,733				3,162,564				3,157,616				2,787,031
Total real estate mortgage			13,506,898				13,750,787				13,579,862				13,807,808				13,492,658
Real estate construction and land:
Commercial			364,575				379,387				395,150				381,449				733,684
Residential			1,527,754				1,568,240				1,759,676				1,920,642				2,127,354
Total real estate construction and land			1,892,329				1,947,627				2,154,826				2,302,091				2,861,038
Total real estate			15,399,227				15,698,414				15,734,688				16,109,899				16,353,696
Commercial:
Asset-based			3,209,338				2,951,010				2,742,519				2,462,351				2,305,325
Venture capital			2,322,261				2,222,097				1,907,601				2,002,601				1,733,074
Other commercial			3,501,388				3,804,099				3,356,537				3,288,305				3,340,400
Total commercial			9,032,987				8,977,206				8,006,657				7,753,257				7,378,799
Consumer			348,133				357,059				369,297				382,737				394,032
Total loans and leases HFI		$	24,780,347			$	25,032,679			$	24,110,642			$	24,245,893			$	24,126,527
Total unfunded loan commitments		$	5,549,325			$	5,433,357			$	4,822,917			$	4,673,596			$	4,858,960
Composition as % of Total Loans and Leases
Real estate mortgage:
Commercial			17	%			17	%			18	%			18	%			19	%
Multi-family			24	%			24	%			25	%			26	%			26	%
Other residential			14	%			14	%			13	%			13	%			11	%
Total real estate mortgage			55	%			55	%			56	%			57	%			56	%
Real estate construction and land:
Commercial			2	%			2	%			2	%			1	%			3	%
Residential			6	%			6	%			7	%			8	%			9	%
Total real estate construction and land			8	%			8	%			9	%			9	%			12	%
Total real estate			63	%			63	%			65	%			66	%			68	%
Commercial:
Asset-based			13	%			12	%			11	%			10	%			9	%
Venture capital			9	%			9	%			8	%			8	%			7	%
Other commercial			14	%			15	%			14	%			14	%			14	%
Total commercial			36	%			36	%			33	%			32	%			30	%
Consumer			1	%			1	%			2	%			2	%			2	%
Total loans and leases HFI			100	%			100	%			100	%			100	%			100	%

Total loans and leases HFI decreased by $252.3 million in the first quarter and totaled $24.8 billion at March 31, 2026. The decrease in loans and leases HFI was due primarily to decreased balances in other commercial loans, commercial real estate mortgage loans, and multi-family real estate mortgage loans, offset partially by increases in asset-based loans, other residential real mortgage loans, and venture capital loans. Loan production and disbursements totaled $2.1 billion in the first quarter with a weighted average interest rate on production of 6.65%.

Total loans and leases held for sale ("HFS") increased by $76.1 million in the first quarter and totaled $259.0 million at March 31, 2026. The increase in loans HFS was primarily driven by a $72.1 million loan transfer during the first quarter that subsequently sold at par in April 2026.

Credit Quality

		March 31,				December 31,				September 30,				June 30,				March 31,
Asset Quality Information and Ratios		2026				2025				2025				2025				2025
		(Dollars in thousands)
Delinquent loans and leases held for investment:
30 to 89 days delinquent		$	263,530			$	108,303			$	56,416			$	53,900			$	100,664
90+ days delinquent			81,599				92,655				104,952				95,566				99,976
Total delinquent loans and leases		$	345,129			$	200,958			$	161,368			$	149,466			$	200,640
Total delinquent loans and leases to loans and leases HFI			1.39	%			0.80	%			0.67	%			0.62	%			0.83	%
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases		$	185,734			$	159,168			$	174,541			$	167,516			$	213,480
90+ days delinquent loans and still accruing			—				—				—				—				—
Total nonperforming loans and leases ("NPLs")			185,734				159,168				174,541				167,516				213,480
Foreclosed assets, net			18,055				17,115				4,790				7,806				5,474
Total nonperforming assets ("NPAs")		$	203,789			$	176,283			$	179,331			$	175,322			$	218,954
Classified loans and leases HFI		$	842,834			$	800,330			$	763,582			$	656,556			$	764,723
Special mention loans and leases HFI			688,659				458,683				505,979				661,568				937,014
Criticized loans and leases HFI		$	1,531,493			$	1,259,013			$	1,269,561			$	1,318,124			$	1,701,737
Allowance for loan and lease losses		$	241,600			$	245,612			$	240,501			$	229,344			$	234,986
Allowance for loan and lease losses to NPLs			130.08	%			154.31	%			137.79	%			136.91	%			110.07	%
NPLs to loans and leases HFI			0.75	%			0.64	%			0.72	%			0.69	%			0.88	%
NPAs to total assets			0.59	%			0.51	%			0.53	%			0.51	%			0.65	%
Classified loans and leases to loans and leases HFI			3.40	%			3.20	%			3.17	%			2.71	%			3.17	%
Special mention loans and leases to loans and leases HFI			2.78	%			1.83	%			2.10	%			2.73	%			3.88	%

Asset quality metrics primarily reflect migration in a limited number of loans within a few larger relationships during the quarter. These were largely isolated situations, reflect proactive risk management actions, and the credits are supported by strong collateral and defined resolution paths.

At March 31, 2026, total delinquent loans and leases were $345.1 million, compared to $201.0 million at December 31, 2025. The 30 to 89 days delinquent category increased by $114.1 million in residential real estate construction and land loans, $32.9 million in commercial real estate construction and land loans, and $7.0 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $5.4 million in commercial real estate mortgage loans and $5.3 million in other residential real estate mortgage loans.

At March 31, 2026, nonperforming loans and leases were $185.7 million, compared to $159.2 million at December 31, 2025. During the first quarter, nonperforming loans and leases increased by $26.6 million due to additions of $54.6 million, offset partially by payoffs and paydowns of $20.0 million, charge-offs of $5.2 million, and transfers to accrual status of $2.8 million.

At March 31, 2026, nonperforming assets were $203.8 million, or 0.59% of total assets, compared to $176.3 million, or 0.51% of total assets, as of December 31, 2025. At March 31, 2026, nonperforming assets included $18.1 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

		Three Months Ended
		March 31,				December 31,				March 31,
Allowance for Credit Losses - Loans		2026				2025				2025
		(Dollars in thousands)
Allowance for loan and lease losses ("ALLL"):
Balance at beginning of period		$	245,612			$	240,501			$	239,360
Charge-offs			(16,097	)			(5,541	)			(16,551	)
Recoveries			2,285				2,852				2,477
Net charge-offs			(13,812	)			(2,689	)			(14,074	)
Provision for loan losses			9,800				7,800				9,700
Balance at end of period		$	241,600			$	245,612			$	234,986
Reserve for unfunded loan commitments ("RUC"):
Balance at beginning of period		$	34,921			$	30,221			$	29,071
Provision for credit losses			—				4,700				500
Balance at end of period		$	34,921			$	34,921			$	29,571
Allowance for credit losses ("ACL") - Loans:
Balance at beginning of period		$	280,533			$	270,722			$	268,431
Charge-offs			(16,097	)			(5,541	)			(16,551	)
Recoveries			2,285				2,852				2,477
Net charge-offs			(13,812	)			(2,689	)			(14,074	)
Provision for credit losses			9,800				12,500				10,200
Balance at end of period		$	276,521			$	280,533			$	264,557
ALLL to loans and leases HFI			0.97	%			0.98	%			0.97	%
ACL to loans and leases HFI			1.12	%			1.12	%			1.10	%
ACL to NPLs			148.88	%			176.25	%			123.93	%
ACL to NPAs			135.69	%			159.14	%			120.83	%
Annualized net charge-offs to average loans and leases			0.23	%			0.04	%			0.24	%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $276.5 million, or 1.12% of total loans and leases at March 31, 2026, compared to $280.5 million, or 1.12% of total loans and leases at December 31, 2025. The $4.0 million decrease in the allowance was driven by net charge-offs of $13.8 million, offset partially by the provision of $9.8 million.

Our ability to absorb credit losses is also bolstered by (i) $105.0 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $14.3 million on approximately $1.2 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 1.60% of total loans and leases at March 31, 2026 compared to 1.62% at December 31, 2025.

The ACL coverage of nonperforming loans and leases was 149% at March 31, 2026 compared to 176% at December 31, 2025.

Net charge-offs were 0.23% of average loans and leases (annualized) for the first quarter, compared to net charge-offs of 0.04% for the fourth quarter.

(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:

		March 31,				December 31,				September 30,				June 30,				March 31,
		2026				2025				2025				2025				2025
		(Dollars in thousands)
Composition of Deposits
Noninterest-bearing checking		$	7,797,542			$	7,822,787			$	7,603,748			$	7,441,116			$	7,593,950
Interest-bearing:
Checking			8,178,485				8,509,587				7,930,951				7,974,452				7,747,051
Money market			4,643,349				4,917,857				4,974,177				5,375,080				5,367,788
Savings			1,991,010				1,905,863				1,949,369				1,932,906				1,999,062
Time deposits:
Non-brokered			2,149,564				2,254,293				2,468,017				2,492,890				2,490,639
Brokered			2,562,184				2,432,970				2,258,503				2,311,989				1,994,701
Total time deposits			4,711,748				4,687,263				4,726,520				4,804,879				4,485,340
Total interest-bearing			19,524,592				20,020,570				19,581,017				20,087,317				19,599,241
Total deposits		$	27,322,134			$	27,843,357			$	27,184,765			$	27,528,433			$	27,193,191
Composition as % of
Total Deposits
Noninterest-bearing checking			29	%			28	%			28	%			27	%			28	%
Interest-bearing:
Checking			30	%			30	%			29	%			29	%			29	%
Money market			17	%			18	%			19	%			20	%			20	%
Savings			7	%			7	%			7	%			7	%			7	%
Time deposits:
Non-brokered			8	%			8	%			9	%			9	%			9	%
Brokered			9	%			9	%			8	%			8	%			7	%
Total time deposits			17	%			17	%			17	%			17	%			16	%
Total interest-bearing			71	%			72	%			72	%			73	%			72	%
Total deposits			100	%			100	%			100	%			100	%			100	%

Total deposits decreased by $521.2 million to $27.3 billion at March 31, 2026 from $27.8 billion at December 31, 2025, driven by a decrease in interest-bearing deposits of $496.0 million and a decrease in noninterest-bearing deposits of $25.2 million. Interest-bearing deposits decreased due mainly to lower balances in checking accounts of $331.1 million and lower money market accounts of $274.5 million, offset partially by higher savings accounts of $85.1 million and higher brokered and non-brokered time deposits of $24.5 million.

At March 31, 2026, noninterest-bearing checking deposits totaled $7.8 billion, or 29% of total deposits, compared to $7.8 billion, or 28% of total deposits, at December 31, 2025.

At March 31, 2026, uninsured and uncollateralized deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.7 billion, or 28% of total deposits, at December 31, 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 $1.2 billion as of March 31, 2026 and December 31, 2025.

Borrowings

Borrowings increased by $487.4 million to $2.6 billion at March 31, 2026 from $2.1 billion at December 31, 2025, mainly due to higher overnight and short-term borrowings.

Equity

During the first quarter, total stockholders’ equity increased by $12.0 million to $3.6 billion and tangible common equity⁽¹⁾ increased by $18.2 million to $2.7 billion at March 31, 2026. The increase in total stockholders’ equity for the first quarter resulted primarily from net earnings of $72.0 million, offset partially by the repurchase of common stock of $31.9 million and common and preferred stock dividends of $29.1 million.

At March 31, 2026, book value per common share increased to $19.80 compared to $19.56 at December 31, 2025, and tangible book value per common share⁽¹⁾ increased to $17.77 compared to $17.51 at December 31, 2025.

For the three-month period ended March 31, 2026, the Company repurchased 1,709,935 shares of common and common equivalent stock at a weighted average price per share of $18.68, or $31.9 million in the aggregate. As of March 31, 2026, $82.6 million remained available under the current stock repurchase authorization, which expires in March 2027.

(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:

		March 31,			December 31,			September 30,			June 30,			March 31,
		2026			2025			2025			2025			2025
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio		16.55	%		16.31	%		16.69	%		16.37	%		16.93	%
Tier 1 risk-based capital ratio		12.54	%		12.34	%		12.56	%		12.34	%		12.86	%
Common equity tier 1 capital ratio		10.18	%		10.01	%		10.14	%		9.95	%		10.45	%
Tier 1 leverage ratio		9.97	%		9.99	%		9.77	%		9.74	%		10.19	%
Banc of California
Total risk-based capital ratio		15.97	%		15.61	%		15.94	%		15.65	%		16.22	%
Tier 1 risk-based capital ratio		13.50	%		13.15	%		13.42	%		13.21	%		13.74	%
Common equity tier 1 capital ratio		13.50	%		13.15	%		13.42	%		13.21	%		13.74	%
Tier 1 leverage ratio		10.73	%		10.65	%		10.44	%		10.42	%		10.88	%

____________________
(1)		March 31, 2026 capital ratios are preliminary.

At March 31, 2026, cash and cash equivalents totaled $2.2 billion, down $90.7 million from December 31, 2025.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available borrowing capacity of $9.7 billion and unpledged AFS securities of $2.5 billion, total available liquidity was $14.2 billion at the end of the first quarter.

Conference Call

The Company will host a conference call to discuss its first quarter 2026 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 23, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. 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 (855) 669-9658 and referencing event code 7930561.

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, military activity (including the ongoing Iran war) or acts of 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) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; 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, 2025 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, 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)
		March 31,				December 31,				September 30,				June 30,				March 31,
		2026				2025				2025				2025				2025
ASSETS:		(Dollars in thousands)
Cash and due from banks		$	214,120			$	181,103			$	205,364			$	222,210			$	215,591
Interest-earning deposits in financial institutions			2,003,149				2,126,862				2,192,901				2,131,342				2,128,298
Total cash and cash equivalents			2,217,269				2,307,965				2,398,265				2,353,552				2,343,889
Securities available-for-sale			2,656,332				2,454,058				2,426,734				2,246,174				2,334,058
Securities held-to-maturity			2,313,548				2,308,636				2,303,657				2,316,725				2,311,912
FRB and FHLB stock			170,342				160,442				159,337				162,243				155,330
Total investment securities			5,140,222				4,923,136				4,889,728				4,725,142				4,801,300
Loans held for sale			259,049				182,936				211,454				465,571				25,797
Loans and leases held for investment			24,780,347				25,032,679				24,110,642				24,245,893				24,126,527
Allowance for loan and lease losses			(241,600	)			(245,612	)			(240,501	)			(229,344	)			(234,986	)
Total loans and leases held for investment, net			24,538,747				24,787,067				23,870,141				24,016,549				23,891,541
Equipment leased to others under operating leases			223,558				238,232				280,872				288,692				295,032
Premises and equipment, net			146,316				146,698				132,766				138,032				140,347
Bank owned life insurance			352,707				350,083				348,051				346,142				342,810
Goodwill			214,521				214,521				214,521				214,521				214,521
Intangible assets, net			99,091				105,287				111,923				118,930				125,937
Deferred tax asset, net			653,481				656,755				672,159				691,535				702,323
Other assets			879,280				884,762				883,085				891,787				896,421
Total assets		$	34,724,241			$	34,797,442			$	34,012,965			$	34,250,453			$	33,779,918
LIABILITIES:
Noninterest-bearing deposits		$	7,797,542			$	7,822,787			$	7,603,748			$	7,441,116			$	7,593,950
Interest-bearing deposits			19,524,592				20,020,570				19,581,017				20,087,317				19,599,241
Total deposits			27,322,134				27,843,357				27,184,765				27,528,433				27,193,191
Borrowings			2,551,250				2,063,819				2,005,022				1,917,180				1,670,782
Subordinated debt			954,072				952,740				950,888				949,213				944,908
Accrued interest payable and other liabilities			343,459				396,249				405,551				428,784				449,381
Total liabilities			31,170,915				31,256,165				30,546,226				30,823,610				30,258,262
STOCKHOLDERS' EQUITY:
Preferred stock			498,516				498,516				498,516				498,516				498,516
Common stock			1,538				1,500				1,509				1,474				1,561
Class B non-voting common stock			5				5				5				5				5
Non-voting common stock equivalents			—				50				41				98				98
Additional paid-in-capital			3,501,213				3,552,483				3,563,145				3,609,109				3,732,376
Retained deficit			(180,011	)			(242,016	)			(309,460	)			(369,142	)			(387,580	)
Accumulated other comprehensive loss, net			(267,935	)			(269,261	)			(287,017	)			(313,217	)			(323,320	)
Total stockholders’ equity			3,553,326				3,541,277				3,466,739				3,426,843				3,521,656
Total liabilities and stockholders’ equity		$	34,724,241			$	34,797,442			$	34,012,965			$	34,250,453			$	33,779,918
Common shares outstanding (1)			154,262,045				155,533,403				155,522,693				157,647,137				166,403,086

____________________
(1)		Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non‑voting common stock equivalents outstanding as of March 31, 2026.

BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
		Three Months Ended
		March 31,				December 31,				March 31,
		2026				2025				2025
		(In thousands, except per share amounts)
Interest income:
Loans and leases		$	349,943			$	359,268			$	346,103
Investment securities			41,873				39,557				37,862
Deposits in financial institutions			15,626				18,123				22,690
Total interest income			407,442				416,948				406,655
Interest expense:
Deposits			120,233				129,896				140,530
Borrowings			20,177				19,858				18,421
Subordinated debt			15,415				15,832				15,340
Total interest expense			155,825				165,586				174,291
Net interest income			251,617				251,362				232,364
Provision for credit losses			9,800				12,500				9,300
Net interest income after provision for credit losses			241,817				238,862				223,064
Noninterest income:
Service charges on deposit accounts			4,978				5,038				4,543
Commissions and fees			10,980				9,524				9,958
Leased equipment income			8,530				16,381				10,784
Gain on sale of loans and leases			7				18				211
Dividends and gains on equity investments			2,002				3,492				2,323
Warrant income (loss)			938				361				(295	)
LOCOM HFS adjustment			3				—				—
Other income			7,890				6,757				6,126
Total noninterest income			35,328				41,571				33,650
Noninterest expense:
Compensation			91,100				85,862				86,417
Occupancy			14,892				14,726				15,010
Information technology and data processing			14,339				13,751				15,099
Other professional services			4,236				6,774				4,513
Insurance and assessments			6,764				7,070				7,283
Intangible asset amortization			6,348				6,788				7,160
Leased equipment depreciation			5,304				6,202				6,741
Customer related expense			23,737				24,870				27,751
Loan expense			4,292				4,445				2,930
Other expense			10,379				10,156				10,749
Total noninterest expense			181,391				180,644				183,653
Earnings before income taxes			95,754				99,789				73,061
Income tax expense			23,802				22,398				19,493
Net earnings			71,952				77,391				53,568
Preferred stock dividends			9,947				9,947				9,947
Net earnings available to common and equivalent stockholders		$	62,005			$	67,444			$	43,621
Earnings per common share:
Basic		$	0.40			$	0.43			$	0.26
Diluted		$	0.39			$	0.42			$	0.26
Weighted average number of common shares outstanding: (1)
Basic			154,821				155,449				168,495
Diluted			160,832				160,094				169,434

____________________
(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
		March 31,			December 31,			March 31,
Profitability and Other Ratios		2026			2025			2025
Return on average assets (1)		0.86	%		0.91	%		0.65	%
Return on average equity (1)		8.22	%		8.79	%		6.16	%
Return on average tangible common equity (1)(2)		9.91	%		10.75	%		7.56	%
Dividend payout ratio (3)		30.00	%		23.26	%		38.46	%
Average yield on loans and leases (1)		5.74	%		5.83	%		5.90	%
Average yield on interest-earning assets (1)		5.25	%		5.31	%		5.39	%
Average cost of interest-bearing deposits (1)		2.51	%		2.66	%		2.97	%
Average total cost of deposits (1)		1.78	%		1.89	%		2.12	%
Average cost of interest-bearing liabilities (1)		2.85	%		2.98	%		3.28	%
Average total cost of funds (1)		2.10	%		2.20	%		2.42	%
Net interest spread		2.40	%		2.33	%		2.11	%
Net interest margin (1)		3.24	%		3.20	%		3.08	%
Noninterest income to total revenue (4)		12.31	%		14.19	%		12.65	%
Noninterest expense to average total assets (1)		2.16	%		2.12	%		2.24	%
Noninterest expense to total revenue (4)		63.21	%		61.67	%		69.04	%
Efficiency ratio (2)(5)		61.00	%		59.35	%		66.35	%
Loans to deposits ratio		91.65	%		90.56	%		88.82	%
Average loans and leases to average deposits		90.45	%		89.81	%		88.36	%
Average investment securities to average total assets		14.76	%		14.49	%		14.21	%
Average stockholders' equity to average total assets		10.44	%		10.35	%		10.58	%

____________________
(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
		March 31, 2026											December 31, 2025											March 31, 2025
						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)		$	24,710,609			$	349,943			5.74	%		$	24,443,089			$	359,268			5.83	%		$	23,788,647			$	346,103			5.90	%
Investment securities			5,018,002				41,873			3.38	%			4,891,281				39,557			3.21	%			4,734,037				37,862			3.24	%
Deposits in financial institutions			1,742,657				15,626			3.64	%			1,834,773				18,123			3.92	%			2,088,139				22,690			4.41	%
Total interest-earning assets			31,471,268				407,442			5.25	%			31,169,143				416,948			5.31	%			30,610,823				406,655			5.39	%
Other assets			2,531,433											2,583,357											2,697,562
Total assets		$	34,002,701										$	33,752,500										$	33,308,385
Liabilities and Stockholders' Equity:
Interest checking		$	8,175,172				46,882			2.33	%		$	7,944,858				49,319			2.46	%		$	7,343,451				47,879			2.64	%
Money market			4,785,691				22,826			1.93	%			4,948,960				25,810			2.07	%			5,415,716				33,003			2.47	%
Savings			1,957,831				9,772			2.02	%			1,942,678				10,863			2.22	%			1,948,649				12,857			2.68	%
Time			4,510,418				40,753			3.66	%			4,570,369				43,904			3.81	%			4,498,268				46,791			4.22	%
Total interest-bearing deposits			19,429,112				120,233			2.51	%			19,406,865				129,896			2.66	%			19,206,084				140,530			2.97	%
Borrowings			1,765,661				20,177			4.63	%			1,661,808				19,858			4.74	%			1,397,720				18,421			5.34	%
Subordinated debt			953,739				15,415			6.55	%			951,471				15,832			6.60	%			942,817				15,340			6.60	%
Total interest-bearing liabilities			22,148,512				155,825			2.85	%			22,020,144				165,586			2.98	%			21,546,621				174,291			3.28	%
Noninterest-bearing demand deposits			7,890,489											7,809,326											7,714,830
Other liabilities			415,000											428,873											522,753
Total liabilities			30,454,001											30,258,343											29,784,204
Stockholders' equity			3,548,700											3,494,157											3,524,181
Total liabilities and stockholders' equity		$	34,002,701										$	33,752,500										$	33,308,385
Net interest income (1)						$	251,617										$	251,362										$	232,364
Net interest spread										2.40	%										2.33	%										2.11	%
Net interest margin										3.24	%										3.20	%										3.08	%
Total deposits (2)		$	27,319,601			$	120,233			1.78	%		$	27,216,191			$	129,896			1.89	%		$	26,920,914			$	140,530			2.12	%
Total funds (3)		$	30,039,001			$	155,825			2.10	%		$	29,829,470			$	165,586			2.20	%		$	29,261,451			$	174,291			2.42	%

____________________
(1)		Includes net loan discount accretion of $12.2 million, $12.7 million, and $16.0 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025.
(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, 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. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

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 HFI.

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		March 31,				December 31,				September 30,				June 30,				March 31,
and Tangible Book Value Per Share		2026				2025				2025				2025				2025
		(Dollars in thousands, except per share amounts)
Stockholders' equity		$	3,553,326			$	3,541,277			$	3,466,739			$	3,426,843			$	3,521,656
Less: Preferred stock			498,516				498,516				498,516				498,516				498,516
Total common equity			3,054,810				3,042,761				2,968,223				2,928,327				3,023,140
Less: Goodwill and intangible assets			313,612				319,808				326,444				333,451				340,458
Tangible common equity		$	2,741,198			$	2,722,953			$	2,641,779			$	2,594,876			$	2,682,682
Book value per common share (1)		$	19.80			$	19.56			$	19.09			$	18.58			$	18.17
Tangible book value per common share (2)		$	17.77			$	17.51			$	16.99			$	16.46			$	16.12
Common shares outstanding (3)			154,262,045				155,533,403				155,522,693				157,647,137				166,403,086

____________________
(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. There were no non‑voting common stock equivalents outstanding as of March 31, 2026.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
Return on Average Tangible		March 31,				December 31,				March 31,
Common Equity ("ROATCE")		2026				2025				2025
		(Dollars in thousands)
Net earnings		$	71,952			$	77,391			$	53,568
Earnings before income taxes										$	73,061
Add: Intangible asset amortization											7,160
Adjusted earnings before income taxes for ROATCE											80,221
Adjusted income tax expense (1)											20,296
Adjustments:
Intangible asset amortization			6,348				6,788
Tax impact of adjustment above (1)			(1,596	)			(1,823	)
Adjustment to net earnings			4,752				4,965
Adjusted net earnings for ROATCE			76,704				82,356				59,925
Less: Preferred stock dividends			9,947				9,947				9,947
Adjusted net earnings available to common and equivalent stockholders for ROATCE		$	66,757			$	72,409			$	49,978
Average stockholders' equity		$	3,548,700			$	3,494,157			$	3,524,181
Less: Average goodwill and intangible assets			317,215				323,295				344,610
Less: Average preferred stock			498,516				498,516				498,516
Average tangible common equity		$	2,732,969			$	2,672,346			$	2,681,055
Return on average equity (2)			8.22	%			8.79	%			6.16	%
ROATCE (3)			9.91	%			10.75	%			7.56	%

____________________
(1)		Effective tax rates of 25.14%, 26.86%, and 25.30% used for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
(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.

		Three Months Ended
		March 31,				December 31,				March 31,
Pre-Tax Pre-Provision Income		2026				2025				2025
		(Dollars in thousands)
Net interest income (GAAP)		$	251,617			$	251,362			$	232,364
Add: Noninterest income (GAAP)			35,328				41,571				33,650
Total revenues (GAAP)			286,945				292,933				266,014
Less: Noninterest expense (GAAP)			181,391				180,644				183,653
Pre-tax pre-provision income (Non-GAAP)		$	105,554			$	112,289			$	82,361

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
		March 31,				December 31,				March 31,
Efficiency Ratio		2026				2025				2025
		(Dollars in thousands)
Noninterest expense		$	181,391			$	180,644			$	183,653
Less: Intangible asset amortization			(6,348	)			(6,788	)			(7,160	)
Noninterest expense used for efficiency ratio		$	175,043			$	173,856			$	176,493
Net interest income		$	251,617			$	251,362			$	232,364
Noninterest income			35,328				41,571				33,650
Total revenue used for efficiency ratio		$	286,945			$	292,933			$	266,014
Noninterest expense to total revenue			63.21	%			61.67	%			69.04	%
Efficiency ratio (1)			61.00	%			59.35	%			66.35	%

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

		March 31,				December 31,
Economic Coverage Ratio		2026				2025
		(Dollars in thousands)
Allowance for credit losses ("ACL")		$	276,521			$	280,533
Add: Unearned credit mark from purchase accounting (1)			14,315				15,865
Add: Credit-linked notes (2)			104,988				108,413
Adjusted allowance for credit losses		$	395,824			$	404,811
Loans and leases HFI		$	24,780,347			$	25,032,679
ACL to loans and leases HFI (3)			1.12	%			1.12	%
Economic coverage ratio (4)			1.60	%			1.62	%

____________________
(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 HFI.
(4)		Adjusted allowance for credit losses divided by loans and leases HFI.

 

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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.