Banc of California, Inc. Reports Second Quarter 2026 Financial Results and Announces Strategic Balance Sheet Repositioning to Enhance Long-Term Earnings

Key Terms

available-for-sale financial

A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.

held-to-maturity financial

A held-to-maturity asset is a debt investment a company plans and is able to keep until the loan or bond reaches its scheduled end, when the principal is repaid. For investors, this classification matters because the holder treats the investment like a locked-in loan—avoiding short-term price swings in financial statements and signaling a steady income expectation, similar to lending money to a friend with a fixed repayment date.

risk-weighted asset regulatory

A risk-weighted asset is a bank asset adjusted by a regulatory weight that reflects how risky that asset is, so safer items count less and riskier items count more when totaling a bank’s exposure. Think of it like packing a car with boxes that regulators label light or heavy; the “weight” determines how much capital a bank must hold against potential losses. It matters to investors because it directly affects a bank’s capital ratios and capacity to lend.

cet 1 regulatory

Common Equity Tier 1 (CET1) is a regulatory measure that compares a bank’s strongest form of capital—ordinary shares and retained profits—to the size and riskiness of its lending and investments, showing how big a cushion the bank has against losses. Investors use the CET1 ratio like a vehicle’s safety rating: a higher number indicates a thicker cushion that reduces the chance of needing emergency support, and it influences dividend policy, borrowing costs, and regulatory pressure.

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.

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

Quarter Results
9% Loan Average Annualized Growth		12% Deposit Annualized Growth		$2.3 billion Securities Repositioning		$18.38 Book Value Per Share   $16.44 Tangible Book Value Per Share(1)		$(1.61) Loss Per Share

Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the second quarter ended June 30, 2026.

During the second quarter, the Company completed a strategic reallocation of capital toward higher return opportunities to further strengthen long-term earnings, expand net interest margin, and increase balance sheet flexibility. The Company took three specific actions including (i) the repositioning of $2.3 billion of lower-yielding securities, (ii) initiating the sale of $827.0 million of selected commercial real estate and multi-family construction loans, and (iii) the retirement of $385.0 million of subordinated debt prior to higher contractual interest reset.

The Company transferred $2.3 billion of lower-yielding held-to-maturity securities to available-for-sale, and subsequently sold and redeployed a portion of the proceeds into higher-yielding, shorter-duration available-for-sale securities. The securities repositioning generated a 276 basis point yield pickup on redeployed balances, reduced portfolio duration, and improved the risk-weighted asset profile of the securities portfolio, all while maintaining capital ratios significantly above “well capitalized” regulatory thresholds.

The Company also commenced a targeted sale process of $827.0 million of commercial real estate and multi-family construction loans to reduce selected credit exposures and lower the potential for future credit-related earnings volatility. Following a competitive loan sale process, the Company has entered into purchase and sale agreements for the loans transferred to held-for-sale during the quarter and expects the transactions to close in the third quarter. In addition, the Company retired $385.0 million of subordinated debt prior to a significantly higher interest rate reset. Taken together, these actions are expected to immediately improve net interest margin, support higher recurring earnings, and accelerate organic capital generation.

The Company reported a net loss available to common and equivalent stockholders of $251.3 million, or $(1.61) per diluted common share, reflecting the near-term impact of these strategic actions.

Jared Wolff, Chairman & CEO of Banc of California, commented, “During the second quarter, we made a strategic decision to reallocate capital toward opportunities that we believe will enhance long-term returns for our shareholders. We implemented that strategy through three complementary actions including a securities repositioning, a targeted loan sale and the retirement of higher-cost subordinated debt, that together create a more efficient balance sheet and position the Company for even stronger long-term financial performance.”

Mr. Wolff continued, “These actions resulted in significant one-time charges, but they increase our long-term earnings power, improve capital efficiency and provide greater financial flexibility to support future growth. Just as importantly, they allow us to focus our capital on the businesses, clients and markets where we see the greatest opportunities to create shareholder value.”

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

Second Quarter 2026 Financial Highlights:

• Executed a securities repositioning to drive higher recurring earnings power, including the sale of $2.3 billion of lower-yielding securities and partial redeployment of $1.7 billion into higher-yielding shorter-duration securities, with the remaining proceeds expected to be invested in the third quarter of 2026. The repositioning generated a 276 basis point yield pickup on redeployed balances and resulted in a $256.7 million pre-tax loss on securities.

• Commenced a targeted loan sale process involving $827.0 million of loans to reduce selected exposures, enhance capital efficiency, and improve the risk profile of the loan portfolio. Total provision expense of $161.8 million includes the impact of transferring these loans to held for sale at the lower of cost or market value.

• Retired $385.0 million of subordinated debt prior to a significantly higher interest rate reset, reducing future funding costs and supporting stronger pre-tax pre-provision earnings.

• Average loans increased $556.1 million, or 2.3%, during the quarter, driven by $2.8 billion of loan production and disbursements with a weighted average interest rate on production of 6.39%.

• Total deposits increased $799.0 million, or 2.9% during the quarter, with average noninterest-bearing deposits comprising 28.5% of average total deposits.

• Loan-to-deposit ratio decreased 235 basis points to 89.3%.

• Credit quality trends were favorable, as classified loans and leases and special mention loans and leases as a percentage of total loans and leases held for investment declined by 99 basis points, and 154 basis points, respectively.

• Capital ratios⁽¹⁾ exceeded the regulatory thresholds for "well capitalized" banks, including an estimated 11.67% Tier 1 capital ratio and 9.25% CET 1 capital ratio. The CET 1 ratio is expected to increase to approximately 9.45-9.50% upon closing of the targeted loan sale and to approximately 9.50-9.60% at the end of the third quarter.

• Book value per share and tangible book value per share⁽²⁾ were $18.38 and $16.44, respectively, reflecting the near-term impact of the strategic balance sheet repositioning actions completed during the quarter.

(1) Capital ratios for June 30, 2026 are preliminary

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

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended										Six Months Ended
	June 30,				March 31,			June 30,			June 30,
Summary Income Statement	2026				2026			2025			2026				2025
	(In thousands)
Total interest income	$	414,596			$	407,442		$	420,509		$	822,038			$	827,164
Total interest expense		164,095				155,825			180,293			319,920				354,584
Net interest income		250,501				251,617			240,216			502,118				472,580
Provision for credit losses		161,780				9,800			39,100			171,580				48,400
(Loss) gain on loans and leases HFS		(12,544	)			10			21			(12,534	)			232
Loss on securities AFS		(256,749	)			—			—			(256,749	)			—
Other noninterest income		35,197				35,318			32,612			70,515				66,051
Total noninterest (loss) income		(234,096	)			35,328			32,633			(198,768	)			66,283
Total revenue		16,405				286,945			272,849			303,350				538,863
Total noninterest expense		189,867				181,391			185,869			371,258				369,522
(Loss) earnings before income taxes		(335,242	)			95,754			47,880			(239,488	)			120,941
Income tax (benefit) expense		(93,895	)			23,802			19,495			(70,093	)			38,988
Net (loss) earnings		(241,347	)			71,952			28,385			(169,395	)			81,953
Preferred stock dividends		9,947				9,947			9,947			19,894				19,894
Net (loss) earnings available to common and equivalent stockholders	$	(251,294	)		$	62,005		$	18,438		$	(189,289	)		$	62,059
Diluted (loss) earnings per share	$	(1.61	)		$	0.39		$	0.12		$	(1.22	)		$	0.38

Net Interest Income and Margin

Second Quarter of 2026 Compared to First Quarter of 2026

Net interest income decreased by $1.1 million to $250.5 million for the second quarter, from $251.6 million in the first quarter. This decrease was driven by an $8.3 million increase in total interest expense, offset partially by a $7.2 million increase in total interest income. The increase in interest expense was due to a $4.0 million increase in interest expense on deposits, attributable to higher average balances, and a $4.2 million increase in interest expense on our borrowings driven by higher average balances to fund loan growth and replace subordinated debt funding, following the redemption of the 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 during the second quarter. The increase in interest income was driven by a $10.4 million increase from higher average loan balances and an additional day in the quarter, and a $2.3 million increase from investments and deposits in financial institutions driven by higher average balances as a result of the securities repositioning. These increases were offset partially by a $4.6 million reduction primarily related to loans placed on nonaccrual status.

Net interest margin was 3.13% for the second quarter, down 11 basis points from 3.24% for the first quarter. Upon closing of the targeted loan sale, net interest margin is expected to increase to approximately 3.30%. The decrease was primarily driven by nonaccrual interest impacts and an increase in short-term funding associated with strong loan growth and the redemption of subordinated debt, while core deposit growth strengthened toward quarter-end, improving the Company's funding profile entering the third quarter. The average total cost of funds increased to 2.14% from 2.10%, as a result of a 2 basis point increase in the average total cost of deposits to 1.80%, and a 19 basis point decrease in the average cost of borrowings to 4.44%. The average yield on interest-earning assets decreased to 5.18% from 5.25%, as a result of a 11 basis point decrease in the average yield on loans and leases to 5.63%.

Average total deposits increased by $299.1 million, with a $323.5 million increase in average interest-bearing deposits, offset partially by a $24.4 million decrease in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.5% of average total deposits in the second quarter, down from 28.9% in the first quarter.

		Three Months Ended																		Increase (Decrease)
		June 30, 2026									March 31, 2026									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)		$	25,266,712		$	354,832		5.63	%		$	24,710,609		$	349,943		5.74	%		$	556,103			(0.11	)%
Investment securities			4,938,232			42,407		3.44	%			5,018,002			41,873		3.38	%			(79,770	)		0.06	%
Deposits in financial institutions			1,912,585			17,357		3.64	%			1,742,657			15,626		3.64	%			169,928			—	%
Total interest-earning assets		$	32,117,529		$	414,596		5.18	%		$	31,471,268		$	407,442		5.25	%		$	646,261			(0.07	)%
Liabilities:
Noninterest-bearing demand deposits		$	7,866,139								$	7,890,489								$	(24,350	)
Total interest-bearing deposits			19,752,609		$	124,270		2.52	%			19,429,112		$	120,233		2.51	%			323,497			0.01	%
Total deposits		$	27,618,748			124,270		1.80	%		$	27,319,601			120,233		1.78	%		$	299,147			0.02	%
Total interest-bearing liabilities		$	22,851,314		$	164,095		2.88	%		$	22,148,512		$	155,825		2.85	%		$	702,802			0.03	%
Net interest income(1)					$	250,501								$	251,617
Net interest margin								3.13	%								3.24	%						(0.11	)%
Total funds(2)		$	30,717,453		$	164,095		2.14	%		$	30,039,001		$	155,825		2.10	%		$	678,452			0.04	%

______________
(1)		Includes net loan discount accretion of $11.2 million and $12.2 million for the three months ended June 30, 2026 and March 31, 2026, 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.

YTD June 30, 2026 vs YTD June 30, 2025

Net interest income increased $29.5 million to $502.1 million for the six months ended June 30, 2026, from $472.6 million for the six months ended June 30, 2025. The increase was primarily driven by a $41.0 million decrease in interest expense on deposits primarily due to lower interest rates following federal funds rate cuts, and an $8.8 million increase in interest income from investment securities reflecting the benefits of prior balance sheet repositioning actions and reinvestment into higher-yielding assets. These benefits were offset partially by a $10.3 million decrease in interest income from deposits in financial institutions due to lower balances and lower market interest rates, a $6.3 million increase in borrowing costs associated with funding loan growth and the subordinated debt redemption in the second quarter of 2026, and a $3.6 million decrease in loan interest income primarily attributable to a reversal of previously accrued interest on loans placed on nonaccrual status, offset partially by the benefit of higher average loan balances.

The net interest margin was 3.18% for the six months ended June 30, 2026, up 9 basis points from 3.09% for the six months ended June 30, 2025. The year-over-year improvement was primarily driven by a 30 basis point decrease in the average total cost of funds to 2.12%, offset partially by a 20 basis point decrease in the average yield on interest-earning assets to 5.21%.

The average total cost of funds decreased by 30 basis points to 2.12%, driven mainly by lower market interest rates. The average cost of deposits declined by 33 basis points to 1.79%, reflecting the impact of federal funds rate cuts in the second half of 2025. Average total deposits increased by $356.0 million year over year, as a result of a $229.2 million increase in average noninterest-bearing deposits and a $126.8 million increase in average interest-bearing deposits. Average noninterest-bearing deposits represented 28.7% of average total deposits for the six months ended June 30, 2026, up from 28.2% for the comparable period in 2025. The average cost of borrowings also decreased by 60 basis points to 4.52%, reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost long-term Federal Home Loan Bank ("FHLB") advances.

The average yield on interest-earning assets declined by 20 basis points to 5.21%, due primarily to a 23 basis point decline in the average yield on loans and leases.

		Six Months Ended																		Increase (Decrease)
		June 30, 2026									June 30, 2025									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)		$	24,990,197		$	704,775		5.69	%		$	24,148,460		$	708,406		5.92	%		$	841,737			(0.23	)%
Investment securities			4,977,896			84,280		3.41	%			4,726,957			75,478		3.22	%			250,939			0.19	%
Deposits in financial institutions			1,828,090			32,983		3.64	%			1,979,843			43,280		4.41	%			(151,753	)		(0.77	)%
Total interest-earning assets		$	31,796,183		$	822,038		5.21	%		$	30,855,260		$	827,164		5.41	%		$	940,923			(0.20	)%
Liabilities:
Noninterest-bearing demand
deposits		$	7,878,247								$	7,649,000								$	229,247
Total interest-bearing deposits			19,591,754		$	244,503		2.52	%			19,464,984		$	285,470		2.96	%			126,770			(0.44	)%
Total deposits		$	27,470,001			244,503		1.79	%		$	27,113,984			285,470		2.12	%		$	356,017			(0.33	)%
Total interest-bearing liabilities		$	22,501,855		$	319,920		2.87	%		$	21,923,564		$	354,584		3.26	%		$	578,291			(0.39	)%
Net interest income(1)					$	502,118								$	472,580
Net interest margin								3.18	%								3.09	%						0.09	%
Total funds(2)		$	30,380,102		$	319,920		2.12	%		$	29,572,564		$	354,584		2.42	%		$	807,538			(0.30	)%

______________
(1)		Includes net loan discount accretion of $23.4 million and $32.1 million for the six months ended June 30, 2026 and 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.

Provision For Credit Losses

Second Quarter of 2026 Compared to First Quarter of 2026

The provision for credit losses was $161.8 million for the second quarter compared to $9.8 million for the first quarter. The increase was primarily driven by $161.6 million of charge-offs, the impact of loan growth and higher loss given default rates on commercial real estate and multi-family construction loans, offset partially by improved risk ratings for our held for investment ("HFI") portfolio. The increase in net charge-offs in the quarter related primarily to the transfer of $827.0 million of loans to held for sale ("HFS") in connection with the targeted loan sale process. The transfer required the loans to be recorded at lower of cost or market value, resulting in charge-offs and additional provision expense during the 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 HFI portfolio and lower qualitative reserves.

YTD June 30, 2026 vs YTD June 30, 2025

The provision for credit losses was $171.6 million for the six months ended June 30, 2026, compared to $48.4 million for the six months ended June 30, 2025. The provision for 2026 included a provision for loan losses of $171.8 million, including the impact of the proposed targeted loan sale process, offset by a $2.0 million reduction in provision for unfunded loan commitments.

The provision for the six months ended June 30, 2025 included the impact of $506.7 million of loans transferred to HFS and recorded at the lower of cost or market value. 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, and higher unfunded commitments. These were offset partially by lower qualitative reserves, lower specific reserves, and a favorable shift in the portfolio mix due to growth in loan segments with lower expected credit losses.

Noninterest Income

Second Quarter of 2026 Compared to First Quarter of 2026

Noninterest income decreased by $269.4 million, resulting in a loss of $234.1 million for the second quarter, compared to noninterest income of $35.3 million for the first quarter. The decrease was primarily driven by a $256.7 million pre-tax loss recognized as part of the securities repositioning, and a $12.5 million loss recorded as part of the lower of cost or market adjustment on HFS loans. Also included in noninterest income was a $3.1 million loss related to the redemption of $385.0 million aggregate principal amount of subordinated notes during the quarter. The loss was offset partially by a $3.8 million gain recognized on the sale of the Company's single-family mortgage servicing rights portfolio, which serviced approximately $1.35 billion of underlying loans.

YTD June 30, 2026 vs YTD June 30, 2025

Noninterest income decreased by $265.1 million to a loss of $198.8 million for the six months ended June 30, 2026, compared to income of $66.3 million for the same period 2025. The year-to-date decrease was primarily attributable to the $256.7 million pre-tax loss recognized as part of the securities repositioning, and a $12.5 million lower of cost or market adjustment on the HFS loans, as discussed above.

Noninterest Expense

Second Quarter of 2026 Compared to First Quarter of 2026

Noninterest expense increased by $8.5 million to $189.9 million for the second quarter from $181.4 million for the first quarter, primarily reflecting a $7.7 million increase in insurance and assessment due to a higher FDIC assessment rate resulting from the balance sheet repositioning and its effect on assessment-related metrics and a $5.0 million increase in other expense related mainly to software obsolescence charges. These increases were offset partially by a $6.0 million decrease in compensation expense due to seasonal payroll related costs recognized in the first quarter.

YTD June 30, 2026 vs YTD June 30, 2025

Noninterest expense increased by $1.7 million to $371.3 million for the six months ended June 30, 2026 from $369.5 million for the six months ended June 30, 2025. The increase is primarily due to a $6.3 million increase in other expense related mainly to software obsolescence charges, a $4.6 million increase in insurance and assessment due to the higher assessment rate resulting from the balance sheet repositioning, and a $2.5 million increase in loans expense related to legal fees. These increases were offset partially by a $6.5 million decrease in customer related expenses primarily due to federal fund rate cuts in the fourth quarter of 2025 and a $3.0 million decrease in leased equipment depreciation.

Income Taxes

Second Quarter of 2026 Compared to First Quarter of 2026

Income tax benefit of $93.9 million was recorded for the second quarter, resulting in an effective tax rate of 28.0%, compared to income tax expense of $23.8 million and an effective tax rate of 24.9% for the first quarter. The second quarter tax rate reflects the effects of the Company's balance sheet repositioning actions. Due to the significant impact of these actions on projected annual earnings, the Company calculated its second quarter income tax provision using a year to date effective tax rate approach rather than the estimated annual effective tax rate method.

YTD June 30, 2026 vs YTD June 30, 2025

Income tax benefit of $70.1 million was recorded for the six months ended June 30, 2026, resulting in an effective tax rate of 29.3%, compared to income tax expense of $39.0 million and effective tax rate of 32.2% for the same period 2025. The decrease in effective tax rate from 2025 to 2026 is due primarily to the impact of deferred tax asset revaluation recorded following the California state tax changes passed as part of the 2025 California budget enacted on June 30, 2025.

BALANCE SHEET HIGHLIGHTS

	June 30,			March 31,			June 30,			Increase (Decrease)
Selected Balance Sheet Items	2026			2026			2025			QoQ				YoY
	(In thousands)
Cash and cash equivalents	$	2,818,055		$	2,217,269		$	2,353,552		$	600,786			$	464,503
Securities available-for-sale		4,484,021			2,656,332			2,246,174			1,827,689				2,237,847
Securities held-to-maturity		—			2,313,548			2,316,725			(2,313,548	)			(2,316,725	)
Loans held for sale		915,171			259,049			465,571			656,122				449,600
Loans and leases held for investment		24,210,846			24,780,347			24,245,893			(569,501	)			(35,047	)
Total loans and leases		25,126,017			25,039,396			24,711,464			86,621				414,553
Total assets		35,030,953			34,724,241			34,250,453			306,712				780,500
Noninterest-bearing deposits	$	7,758,119		$	7,797,542		$	7,441,116		$	(39,423	)		$	317,003
Total deposits		28,121,182			27,322,134			27,528,433			799,048				592,749
Borrowings		2,460,363			2,551,250			1,917,180			(90,887	)			543,183
Total liabilities		31,620,807			31,170,915			30,823,610			449,892				797,197
Total stockholders' equity		3,410,146			3,553,326			3,426,843			(143,180	)			(16,697	)

Securities

As part of the securities repositioning, the Company reclassified its entire held-to-maturity ("HTM") securities portfolio with an aggregate amortized cost basis of $2.3 billion to available-for-sale ("AFS") securities and subsequently sold primarily all of the securities. The $2.3 billion of securities sold had an average yield of approximately 2.1% and were sold at a pre-tax loss of $251.3 million. The transaction improved the Company's earning-asset mix by facilitating the redeployment of proceeds into higher-yielding assets while enhancing balance sheet flexibility. As of June 30, 2026 we reinvested $1.7 billion at a weighted average yield of 4.87%, which resulted in a 276 basis point yield pickup on redeployed balances.

AFS securities increased by $1.8 billion during the second quarter to $4.5 billion at June 30, 2026 compared to $2.7 billion at March 31, 2026, due primarily to the transfer of HTM securities to AFS of $2.3 billion and purchases of $1.9 billion, offset partially by the sale of $2.3 billion, as part of the securities repositioning, $116.9 million of principal paydowns, $16.7 million of maturities, $8.2 million decrease in the fair value of AFS securities, and $2.0 million of net amortization. As of June 30, 2026, AFS securities had aggregate unrealized net after-tax losses in AOCI of $145.3 million, up from $143.3 million at March 31, 2026, driven by higher interest rates.

As of June 30, 2026, there are no HTM securities.

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:

	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
	(Dollars in thousands)
Composition of Loans and Leases
Real estate mortgage:
Commercial	$	4,037,229			$	4,093,386			$	4,314,637			$	4,292,625			$	4,369,401
Multi-family		5,445,475				5,955,102				6,089,417				6,124,673				6,280,791
Other residential		3,793,876				3,458,410				3,346,733				3,162,564				3,157,616
Total real estate mortgage		13,276,580				13,506,898				13,750,787				13,579,862				13,807,808
Real estate construction and land:
Commercial		360,392				364,575				379,387				395,150				381,449
Residential		1,114,459				1,527,754				1,568,240				1,759,676				1,920,642
Total real estate construction and land		1,474,851				1,892,329				1,947,627				2,154,826				2,302,091
Total real estate		14,751,431				15,399,227				15,698,414				15,734,688				16,109,899
Commercial:
Asset-based		3,318,822				3,209,338				2,951,010				2,742,519				2,462,351
Venture capital		2,440,075				2,322,261				2,222,097				1,907,601				2,002,601
Other commercial		3,353,534				3,501,388				3,804,099				3,356,537				3,288,305
Total commercial		9,112,431				9,032,987				8,977,206				8,006,657				7,753,257
Consumer		346,984				348,133				357,059				369,297				382,737
Total loans and leases HFI	$	24,210,846			$	24,780,347			$	25,032,679			$	24,110,642			$	24,245,893
Total unfunded loan commitments	$	5,211,632			$	5,549,325			$	5,433,357			$	4,822,917			$	4,673,596
Composition as % of Total Loans and Leases
Real estate mortgage:
Commercial		17	%			17	%			17	%			18	%			18	%
Multi-family		22	%			24	%			24	%			25	%			26	%
Other residential		16	%			14	%			14	%			13	%			13	%
Total real estate mortgage		55	%			55	%			55	%			56	%			57	%
Real estate construction and land:
Commercial		1	%			2	%			2	%			2	%			1	%
Residential		5	%			6	%			6	%			7	%			8	%
Total real estate construction and land		6	%			8	%			8	%			9	%			9	%
Total real estate		61	%			63	%			63	%			65	%			66	%
Commercial:
Asset-based		14	%			13	%			12	%			11	%			10	%
Venture capital		10	%			9	%			9	%			8	%			8	%
Other commercial		14	%			14	%			15	%			14	%			14	%
Total commercial		38	%			36	%			36	%			33	%			32	%
Consumer		1	%			1	%			1	%			2	%			2	%
Total loans and leases HFI		100	%			100	%			100	%			100	%			100	%

Total loans and leases HFI decreased by $569.5 million in the second quarter to $24.2 billion at June 30, 2026. The decline reflected, in part, the transfer of $827.0 million of loans to HFS in connection with the balance sheet repositioning, including $491.9 million of multi-family loans, $300.6 million of multi-family construction loans, and $34.5 million of commercial real estate mortgage loans. Excluding the impact of the loans transferred to HFS, the Company continued to generate loan growth in other residential real estate mortgage loans, venture capital loans, and asset-based lending portfolios. Loan production and disbursements totaled $2.8 billion in the second quarter with a weighted average interest rate on production of 6.39%.

Total loans and leases HFS increased by $656.1 million in the second quarter and totaled $915.2 million at June 30, 2026. The increase was primarily driven by the Company's targeted loan sale process discussed above.

Credit Quality

	June 30,				March 31,				December 31,				September 30,				June 30,
Asset Quality Information and Ratios	2026				2026				2025				2025				2025
	(Dollars in thousands)
Delinquent loans and leases held for investment:
30 to 89 days delinquent	$	91,196			$	263,530			$	108,303			$	56,416			$	53,900
90+ days delinquent		82,457				81,599				92,655				104,952				95,566
Total delinquent loans and leases	$	173,653			$	345,129			$	200,958			$	161,368			$	149,466
Total delinquent loans and leases to loans and leases HFI		0.72	%			1.39	%			0.80	%			0.67	%			0.62	%
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases	$	203,712			$	185,734			$	159,168			$	174,541			$	167,516
90+ days delinquent loans and still accruing		—				—				—				—				—
Total nonperforming loans and leases ("NPLs")		203,712				185,734				159,168				174,541				167,516
Foreclosed assets, net		16,319				18,055				17,115				4,790				7,806
Total nonperforming assets ("NPAs")	$	220,031			$	203,789			$	176,283			$	179,331			$	175,322
Classified loans and leases HFI	$	582,790			$	842,834			$	800,330			$	763,582			$	656,556
Special mention loans and leases HFI		300,542				688,659				458,683				505,979				661,568
Criticized loans and leases HFI	$	883,332			$	1,531,493			$	1,259,013			$	1,269,561			$	1,318,124
Allowance for loan and lease losses	$	243,319			$	241,600			$	245,612			$	240,501			$	229,344
Allowance for loan and lease losses to NPLs		119.44	%			130.08	%			154.31	%			137.79	%			136.91	%
NPLs to loans and leases HFI		0.84	%			0.75	%			0.64	%			0.72	%			0.69	%
NPAs to total assets		0.63	%			0.59	%			0.51	%			0.53	%			0.51	%
Classified loans and leases to loans and leases HFI		2.41	%			3.40	%			3.20	%			3.17	%			2.71	%
Special mention loans and leases to loans and leases HFI		1.24	%			2.78	%			1.83	%			2.10	%			2.73	%

Credit quality metrics improved from the first quarter, primarily reflecting the transfer of certain loans to HFS as part of the balance sheet repositioning. Nonperforming, classified, and special mention loans and leases as a percentage of total loans held for investment increased 9 basis points, and decreased 99 basis points and 154 basis points, respectively.

At June 30, 2026, total delinquent loans and leases were $173.7 million, compared to $345.1 million at March 31, 2026. The 30 to 89 days delinquent category decreased by $140.7 million in residential real estate construction and land loans, $32.9 million in commercial real estate construction and land loans, and $32.8 million in multi-family real estate mortgage loans, offset partially by increases of $27.9 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were increases of $11.8 million in other commercial loans and $9.1 million in multi-family real estate mortgage loans, offset partially by decreases of $23.2 million in commercial real estate loans.

At June 30, 2026, nonperforming loans and leases were $203.7 million, compared to $185.7 million at March 31, 2026. During the second quarter, nonperforming loans and leases increased by $18.0 million due to additions of $391.7 million, offset partially by transfers to loans HFS of $248.0 million, charge-offs of $91.8 million, paydowns of $32.4 million, and transfers to accrual status of $1.5 million.

At June 30, 2026, nonperforming assets were $220.0 million, or 0.63% of total assets, compared to $203.8 million, or 0.59% of total assets, as of March 31, 2026. At June 30, 2026, nonperforming assets included $16.3 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
Allowance for Credit Losses - Loans	2026				2026				2025				2026				2025
	(Dollars in thousands)
Allowance for loan and lease losses ("ALLL"):
Balance at beginning of period	$	241,600			$	245,612			$	234,986			$	245,612			$	239,360
Charge-offs		(161,617	)			(16,097	)			(46,948	)			(177,714	)			(63,499	)
Recoveries		1,336				2,285				2,726				3,621				5,203
Net charge-offs		(160,281	)			(13,812	)			(44,222	)			(174,093	)			(58,296	)
Provision for loan losses		162,000				9,800				38,580				171,800				48,280
Balance at end of period	$	243,319			$	241,600			$	229,344			$	243,319			$	229,344
Reserve for unfunded loan commitments ("RUC"):
Balance at beginning of period	$	34,921			$	34,921			$	29,571			$	34,921			$	29,071
Provision for credit losses		(2,000	)			—				(350	)			(2,000	)			150
Balance at end of period	$	32,921			$	34,921			$	29,221			$	32,921			$	29,221
Allowance for credit losses ("ACL") - Loans:
Balance at beginning of period	$	276,521			$	280,533			$	264,557			$	280,533			$	268,431
Charge-offs		(161,617	)			(16,097	)			(46,948	)			(177,714	)			(63,499	)
Recoveries		1,336				2,285				2,726				3,621				5,203
Net charge-offs		(160,281	)			(13,812	)			(44,222	)			(174,093	)			(58,296	)
Provision for credit losses		160,000				9,800				38,230				169,800				48,430
Balance at end of period	$	276,240			$	276,521			$	258,565			$	276,240			$	258,565
ALLL to loans and leases HFI		1.00	%			0.97	%			0.95	%			1.00	%			0.95	%
ACL to loans and leases HFI		1.14	%			1.12	%			1.07	%			1.14	%			1.07	%
ACL to NPLs		135.60	%			148.88	%			154.35	%			135.60	%			154.35	%
ACL to NPAs		125.55	%			135.69	%			147.48	%			125.55	%			147.48	%
Annualized net charge-offs to average loans and leases		2.54	%			0.23	%			0.72	%			1.40	%			0.49	%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $276.2 million, or 1.14% of total loans and leases at June 30, 2026, compared to $276.5 million, or 1.12% of total loans and leases at March 31, 2026. The $0.3 million decrease in the allowance was driven by net charge-offs of $160.3 million, largely associated with loans transferred to HFS during the quarter, offset partially by the provision of $160.0 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 $12.9 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 1.63% of total loans and leases at June 30, 2026 compared to 1.60% at March 31, 2026.

The ACL coverage of nonperforming loans and leases was 136% at June 30, 2026 compared to 149% at March 31, 2026.

Net charge-offs were 2.54% of average loans and leases (annualized) for the second quarter, compared to net charge-offs of 0.23% for the first quarter.

Deposits and Client Investment Funds

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

	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
	(Dollars in thousands)
Composition of Deposits
Noninterest-bearing checking	$	7,758,119			$	7,797,542			$	7,822,787			$	7,603,748			$	7,441,116
Interest-bearing:
Checking		8,739,368				8,178,485				8,509,587				7,930,951				7,974,452
Money market		5,136,561				4,643,349				4,917,857				4,974,177				5,375,080
Savings		1,834,517				1,991,010				1,905,863				1,949,369				1,932,906
Time deposits:
Non-brokered		2,061,323				2,149,564				2,254,293				2,468,017				2,492,890
Brokered		2,591,294				2,562,184				2,432,970				2,258,503				2,311,989
Total time deposits		4,652,617				4,711,748				4,687,263				4,726,520				4,804,879
Total interest-bearing		20,363,063				19,524,592				20,020,570				19,581,017				20,087,317
Total deposits	$	28,121,182			$	27,322,134			$	27,843,357			$	27,184,765			$	27,528,433
Composition as % of Total Deposits
Noninterest-bearing checking		28	%			29	%			28	%			28	%			27	%
Interest-bearing:
Checking		31	%			30	%			30	%			29	%			29	%
Money market		18	%			17	%			18	%			19	%			20	%
Savings		7	%			7	%			7	%			7	%			7	%
Time deposits:
Non-brokered		7	%			8	%			8	%			9	%			9	%
Brokered		9	%			9	%			9	%			8	%			8	%
Total time deposits		16	%			17	%			17	%			17	%			17	%
Total interest-bearing		72	%			71	%			72	%			72	%			73	%
Total deposits		100	%			100	%			100	%			100	%			100	%

Total deposits increased by $799.0 million to $28.1 billion at June 30, 2026 from $27.3 billion at March 31, 2026, driven by an increase in interest-bearing deposits of $838.5 million and a decrease in noninterest-bearing deposits of $39.4 million. Interest-bearing deposits increased due mainly to higher balances in checking accounts of $560.9 million and higher money market accounts of $493.2 million, offset partially by lower savings accounts of $156.5 million and lower brokered and non-brokered time deposits of $59.1 million.

At June 30, 2026, noninterest-bearing checking deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.8 billion, or 29% of total deposits, at March 31, 2026.

At June 30, 2026, uninsured and uncollateralized deposits totaled $7.6 billion, or 27% of total deposits, compared to $7.8 billion, or 28% of total deposits, at March 31, 2026.

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 $1.0 billion as of June 30, 2026 and $1.2 billion as of March 31, 2026.

Borrowings

Borrowings decreased by $90.9 million to $2.5 billion at June 30, 2026 from $2.6 billion at March 31, 2026, driven primarily by the repayment of a long-term FHLB advance.

Subordinated Debt

On May 1, 2026, the Company redeemed all $385 million outstanding aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 originally issued by Pacific Western Bank. The remaining unamortized discount and debt issuance costs were recorded as a loss on redemption of subordinated notes in noninterest income. As a result of the redemption, subordinated debt decreased to $573.6 million at June 30, 2026, from $954.1 million at March 31, 2026.

Equity

During the second quarter, total stockholders’ equity decreased by $143.2 million to $3.4 billion and tangible common equity⁽¹⁾ decreased by $136.8 million to $2.6 billion at June 30, 2026. The decrease in total stockholders’ equity for the second quarter resulted primarily from net losses of $241.3 million and common and preferred stock dividends of $29.3 million, offset partially by a decrease in the unrealized after-tax net loss in AOCI for AFS and HTM securities of $125.3 million.

At June 30, 2026, book value per common share decreased to $18.38 compared to $19.80 at March 31, 2026, and tangible book value per common share⁽¹⁾ decreased to $16.44 compared to $17.77 at March 31, 2026. The decrease primarily reflected the repositioning actions completed during the quarter.

For the six-month period ended June 30, 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 June 30, 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:

	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	14.31 %		16.55 %		16.31 %		16.69 %		16.37 %
Tier 1 risk-based capital ratio	11.67 %		12.54 %		12.34 %		12.56 %		12.34 %
Common equity tier 1 capital ratio	9.25 %		10.18 %		10.01 %		10.14 %		9.95 %
Tier 1 leverage ratio	8.89 %		9.97 %		9.99 %		9.77 %		9.74 %
Banc of California
Total risk-based capital ratio	13.74 %		15.97 %		15.61 %		15.94 %		15.65 %
Tier 1 risk-based capital ratio	12.68 %		13.50 %		13.15 %		13.42 %		13.21 %
Common equity tier 1 capital ratio	12.68 %		13.50 %		13.15 %		13.42 %		13.21 %
Tier 1 leverage ratio	9.64 %		10.73 %		10.65 %		10.44 %		10.42 %
______________ (1) June 30, 2026 capital ratios are preliminary.

At June 30, 2026, cash and cash equivalents totaled $2.8 billion, up $600.8 million from March 31, 2026.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.6 billion. Combined with total available borrowing capacity of $7.9 billion and unpledged AFS securities of $3.6 billion, total available liquidity was $14.1 billion at the end of the second quarter.

Conference Call

The Company will host a conference call to discuss its second quarter 2026 financial results at 8:00 a.m. Pacific Time (PT) on Wednesday, July 29, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 9364475. 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 7085829.

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 77 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; the anticipated benefits of our strategic repositioning including, among others, a strengthened credit profile, possible net interest income and net interest margin expansion and an enhanced earnings profile; 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 and retaliatory 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) our ability to achieve or maintain the anticipated benefits of our strategic repositioning due to one or more of the other factors described herein or otherwise, or the failure to complete our anticipated loan sales due to a condition to closing not being satisfied or otherwise; (ix) our ability to raise capital or incur debt on reasonable terms; (x) the costs and effects of litigation; (xi) 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; (xii) the competitive and other impacts on our business of emerging technologies, including stablecoins and other digital currencies, tokenized deposits, blockchain, artificial intelligence, quantum computing, and related innovations affecting both the Company and the banking industry; (xiii) 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; (xiv) 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; (xv) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvi) 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; (xvii) cybersecurity threats and failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend; (xviii) our ability to attract and retain key members of our senior management team; (xix) 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; (xx) 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; (xxi) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xxii) 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; (xxiii) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; (xxiv) the effects of any damage to our reputation resulting from developments related to any of the items identified above; and (xxv) 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)
	June 30,				March 31,				December 31,				September 30,				June 30,
	2026				2026				2025				2025				2025
ASSETS:	(Dollars in thousands)
Cash and due from banks	$	225,343			$	214,120			$	181,103			$	205,364			$	222,210
Interest-earning deposits in financial institutions		2,592,712				2,003,149				2,126,862				2,192,901				2,131,342
Total cash and cash equivalents		2,818,055				2,217,269				2,307,965				2,398,265				2,353,552
Securities AFS		4,484,021				2,656,332				2,454,058				2,426,734				2,246,174
Securities HTM		—				2,313,548				2,308,636				2,303,657				2,316,725
FRB and FHLB stock		181,352				170,342				160,442				159,337				162,243
Total investment securities		4,665,373				5,140,222				4,923,136				4,889,728				4,725,142
Loans HFS		915,171				259,049				182,936				211,454				465,571
Loans and leases HFI		24,210,846				24,780,347				25,032,679				24,110,642				24,245,893
Allowance for loan and lease losses		(243,319	)			(241,600	)			(245,612	)			(240,501	)			(229,344	)
Total loans and leases HFI, net		23,967,527				24,538,747				24,787,067				23,870,141				24,016,549
Equipment leased to others under operating leases		218,444				223,558				238,232				280,872				288,692
Premises and equipment, net		145,440				146,316				146,698				132,766				138,032
Bank owned life insurance		348,777				352,707				350,083				348,051				346,142
Goodwill		214,521				214,521				214,521				214,521				214,521
Intangible assets, net		92,709				99,091				105,287				111,923				118,930
Deferred tax asset, net		704,467				653,481				656,755				672,159				691,535
Other assets		940,469				879,280				884,762				883,085				891,787
Total assets	$	35,030,953			$	34,724,241			$	34,797,442			$	34,012,965			$	34,250,453
LIABILITIES:
Noninterest-bearing deposits	$	7,758,119			$	7,797,542			$	7,822,787			$	7,603,748			$	7,441,116
Interest-bearing deposits		20,363,063				19,524,592				20,020,570				19,581,017				20,087,317
Total deposits		28,121,182				27,322,134				27,843,357				27,184,765				27,528,433
Borrowings		2,460,363				2,551,250				2,063,819				2,005,022				1,917,180
Subordinated debt		573,555				954,072				952,740				950,888				949,213
Accrued interest payable and other liabilities		465,707				343,459				396,249				405,551				428,784
Total liabilities		31,620,807				31,170,915				31,256,165				30,546,226				30,823,610
STOCKHOLDERS' EQUITY:
Preferred stock		498,516				498,516				498,516				498,516				498,516
Common stock		1,580				1,538				1,500				1,509				1,474
Class B non-voting common stock		5				5				5				5				5
Non-voting common stock equivalents		—				—				50				41				98
Additional paid-in-capital		3,485,560				3,501,213				3,552,483				3,563,145				3,609,109
Retained deficit		(431,305	)			(180,011	)			(242,016	)			(309,460	)			(369,142	)
Accumulated other comprehensive loss, net		(144,210	)			(267,935	)			(269,261	)			(287,017	)			(313,217	)
Total stockholders’ equity		3,410,146				3,553,326				3,541,277				3,466,739				3,426,843
Total liabilities and stockholders’ equity	$	35,030,953			$	34,724,241			$	34,797,442			$	34,012,965			$	34,250,453
Common shares outstanding (1)		158,432,520				154,262,045				155,533,403				155,522,693				157,647,137

______________
(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 June 30, 2026 and March 31, 2026.

BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
	Three Months Ended											Six Months Ended
	June 30,				March 31,			June 30,				June 30,
	2026				2026			2025				2026				2025
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	354,832			$	349,943		$	362,303			$	704,775			$	708,406
Investment securities		42,407				41,873			37,616				84,280				75,478
Deposits in financial institutions		17,357				15,626			20,590				32,983				43,280
Total interest income		414,596				407,442			420,509				822,038				827,164
Interest expense:
Deposits		124,270				120,233			144,940				244,503				285,470
Borrowings		26,568				20,177			20,021				46,745				38,442
Subordinated debt		13,257				15,415			15,332				28,672				30,672
Total interest expense		164,095				155,825			180,293				319,920				354,584
Net interest income		250,501				251,617			240,216				502,118				472,580
Provision for credit losses		161,780				9,800			39,100				171,580				48,400
Net interest income after provision for credit losses		88,721				241,817			201,116				330,538				424,180
Noninterest income:
Service charges on deposit accounts		4,763				4,978			4,456				9,741				8,999
Commissions and fees		9,034				10,980			9,641				20,014				19,599
Leased equipment income		7,820				8,530			10,231				16,350				21,015
(Loss) gain on loans and leases HFS		(12,544	)			10			21				(12,534	)			232
Loss on securities AFS		(256,749	)			—			—				(256,749	)			—
Dividends and gains (loss) on equity investments		3,326				2,002			(114	)			5,328				2,209
Warrant income		896				938			1,227				1,834				932
Other income		9,358				7,890			7,171				17,248				13,297
Total noninterest (loss) income		(234,096	)			35,328			32,633				(198,768	)			66,283
Noninterest expense:
Compensation		85,120				91,100			88,362				176,220				174,779
Occupancy		14,714				14,892			15,473				29,606				30,483
Information technology and data processing		13,769				14,339			13,073				28,108				28,172
Other professional services		5,599				4,236			6,406				9,835				10,919
Insurance and assessments		14,500				6,764			9,403				21,264				16,686
Intangible asset amortization		6,349				6,348			7,159				12,697				14,319
Leased equipment depreciation		5,168				5,304			6,700				10,472				13,441
Customer related expense		24,114				23,737			26,577				47,851				54,328
Loan expense		5,170				4,292			4,050				9,462				6,980
Other expense		15,364				10,379			8,666				25,743				19,415
Total noninterest expense		189,867				181,391			185,869				371,258				369,522
(Loss) earnings before income taxes		(335,242	)			95,754			47,880				(239,488	)			120,941
Income tax (benefit) expense		(93,895	)			23,802			19,495				(70,093	)			38,988
Net (loss) earnings		(241,347	)			71,952			28,385				(169,395	)			81,953
Preferred stock dividends		9,947				9,947			9,947				19,894				19,894
Net (loss) earnings available to common and equivalent stockholders	$	(251,294	)		$	62,005		$	18,438			$	(189,289	)		$	62,059
(Loss) earnings per common share:
Basic	$	(1.61	)		$	0.40		$	0.12			$	(1.22	)		$	0.38
Diluted	$	(1.61	)		$	0.39		$	0.12			$	(1.22	)		$	0.38
Weighted average number of common shares outstanding: (1)
Basic		155,803				154,821			158,354				155,315				163,396
Diluted		155,803				160,832			158,462				155,315				163,667

______________
(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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
Profitability and Other Ratios	2026			2026			2025			2026			2025
Return on average assets (1)	(2.79	)%		0.86	%		0.34	%		(1.00	)%		0.49	%
Return on average equity (1)	(27.31	)%		8.22	%		3.32	%		(9.63	)%		4.75	%
Return on average tangible common equity (1)(2)	(36.18	)%		9.91	%		3.70	%		(13.30	)%		5.59	%
Dividend payout ratio (3)	(7.45	)%		30.00	%		83.33	%		(19.67	)%		52.63	%
Average yield on loans and leases (1)	5.63	%		5.74	%		5.93	%		5.69	%		5.92	%
Average yield on interest-earning assets (1)	5.18	%		5.25	%		5.42	%		5.21	%		5.41	%
Average cost of interest-bearing deposits (1)	2.52	%		2.51	%		2.95	%		2.52	%		2.96	%
Average total cost of deposits (1)	1.80	%		1.78	%		2.13	%		1.79	%		2.12	%
Average cost of interest-bearing liabilities (1)	2.88	%		2.85	%		3.24	%		2.87	%		3.26	%
Average total cost of funds (1)	2.14	%		2.10	%		2.42	%		2.12	%		2.42	%
Net interest spread	2.30	%		2.40	%		2.18	%		2.34	%		2.15	%
Net interest margin (1)	3.13	%		3.24	%		3.10	%		3.18	%		3.09	%
Noninterest income to total revenue (4)	(1426.98	)%		12.31	%		11.96	%		(65.52	)%		12.30	%
Noninterest expense to average total assets (1)	2.20	%		2.16	%		2.21	%		2.18	%		2.22	%
Noninterest expense to total revenue (4)	1157.37	%		63.21	%		68.12	%		122.39	%		68.57	%
Efficiency ratio (2)(5)	67.18	%		61.00	%		65.50	%		64.02	%		65.92	%
Loans to deposits ratio	89.30	%		91.65	%		89.77	%		89.30	%		89.77	%
Average loans and leases to average deposits	91.48	%		90.45	%		89.74	%		90.97	%		89.06	%
Average investment securities to average total assets	14.25	%		14.76	%		13.98	%		14.50	%		14.09	%
Average stockholders' equity to average total assets	10.23	%		10.44	%		10.16	%		10.33	%		10.37	%

______________
(1)		Annualized.
(2)		Non-GAAP measure.
(3)		Ratio calculated by dividing dividends declared per common and equivalent share by basic (loss) 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 (the sum of net interest income and noninterest income, less gain (loss) on securities AFS).

BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
		Three Months Ended
		June 30, 2026								March 31, 2026								June 30, 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)		$	25,266,712		$	354,832		5.63 %		$	24,710,609		$	349,943		5.74 %		$	24,504,319		$	362,303		5.93 %
Investment securities			4,938,232			42,407		3.44 %			5,018,002			41,873		3.38 %			4,719,954			37,616		3.20 %
Deposits in financial institutions			1,912,585			17,357		3.64 %			1,742,657			15,626		3.64 %			1,872,736			20,590		4.41 %
Total interest-earning assets			32,117,529			414,596		5.18 %			31,471,268			407,442		5.25 %			31,097,009			420,509		5.42 %
Other assets			2,527,401								2,531,433								2,667,140
Total assets		$	34,644,930							$	34,002,701							$	33,764,149
Liabilities and Stockholders' Equity:
Interest checking		$	8,313,161			47,694		2.30 %		$	8,175,172			46,882		2.33 %		$	7,778,882			52,877		2.73 %
Money market			4,736,107			23,429		1.98 %			4,785,691			22,826		1.93 %			5,412,681			33,615		2.49 %
Savings			1,883,240			9,575		2.04 %			1,957,831			9,772		2.02 %			1,959,987			12,777		2.61 %
Time			4,820,101			43,572		3.63 %			4,510,418			40,753		3.66 %			4,569,490			45,671		4.01 %
Total interest-bearing deposits			19,752,609			124,270		2.52 %			19,429,112			120,233		2.51 %			19,721,040			144,940		2.95 %
Borrowings			2,399,546			26,568		4.44 %			1,765,661			20,177		4.63 %			1,628,584			20,021		4.93 %
Subordinated debt			699,159			13,257		7.61 %			953,739			15,415		6.55 %			946,740			15,332		6.50 %
Total interest-bearing liabilities			22,851,314			164,095		2.88 %			22,148,512			155,825		2.85 %			22,296,364			180,293		3.24 %
Noninterest-bearing demand deposits			7,866,139								7,890,489								7,583,894
Other liabilities			382,336								415,000								453,748
Total liabilities			31,099,789								30,454,001								30,334,006
Stockholders' equity			3,545,141								3,548,700								3,430,143
Total liabilities and stockholders' equity		$	34,644,930							$	34,002,701							$	33,764,149
Net interest income (1)					$	250,501							$	251,617							$	240,216
Net interest spread								2.30 %								2.40 %								2.18 %
Net interest margin								3.13 %								3.24 %								3.10 %
Total deposits (2)		$	27,618,748		$	124,270		1.80 %		$	27,319,601		$	120,233		1.78 %		$	27,304,934		$	144,940		2.13 %
Total funds (3)		$	30,717,453		$	164,095		2.14 %		$	30,039,001		$	155,825		2.10 %		$	29,880,258		$	180,293		2.42 %

______________
(1)		Includes net loan discount accretion of $11.2 million, $12.2 million, and $16.1 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 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.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
		Six Months Ended
		June 30, 2026								June 30, 2025
					Interest			Average					Interest			Average
		Average			Income/			Yield/		Average			Income/			Yield/
		Balance			Expense			Cost		Balance			Expense			Cost
		(Dollars in thousands)
Assets:
Loans and leases (1)		$	24,990,197		$	704,775		5.69 %		$	24,148,460		$	708,406		5.92 %
Investment securities			4,977,896			84,280		3.41 %			4,726,957			75,478		3.22 %
Deposits in financial institutions			1,828,090			32,983		3.64 %			1,979,843			43,280		4.41 %
Total interest-earning assets			31,796,183			822,038		5.21 %			30,855,260			827,164		5.41 %
Other assets			2,529,406								2,682,266
Total assets		$	34,325,589							$	33,537,526
Liabilities and Stockholders' Equity:
Interest checking		$	8,244,548			94,576		2.31 %		$	7,562,369			100,756		2.69 %
Money market			4,760,762			46,255		1.96 %			5,414,190			66,618		2.48 %
Savings			1,920,329			19,347		2.03 %			1,954,349			25,634		2.65 %
Time			4,666,115			84,325		3.64 %			4,534,076			92,462		4.11 %
Total interest-bearing deposits			19,591,754			244,503		2.52 %			19,464,984			285,470		2.96 %
Borrowings			2,084,355			46,745		4.52 %			1,513,790			38,442		5.12 %
Subordinated debt			825,746			28,672		7.00 %			944,790			30,672		6.55 %
Total interest-bearing liabilities			22,501,855			319,920		2.87 %			21,923,564			354,584		3.26 %
Noninterest-bearing demand deposits			7,878,247								7,649,000
Other liabilities			398,577								488,060
Total liabilities			30,778,679								30,060,624
Stockholders' equity			3,546,910								3,476,902
Total liabilities and stockholders' equity		$	34,325,589							$	33,537,526
Net interest income (1)					$	502,118							$	472,580
Net interest spread								2.34 %								2.15 %
Net interest margin								3.18 %								3.09 %
Total deposits (2)		$	27,470,001		$	244,503		1.79 %		$	27,113,984		$	285,470		2.12 %
Total funds (3)		$	30,380,102		$	319,920		2.12 %		$	29,572,564		$	354,584		2.42 %

______________
(1)		Includes net loan discount accretion of $23.4 million and $32.1 million for the six months ended June 30, 2026 and 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, less gain (loss) on securities AFS).

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	June 30,			March 31,			December 31,			September 30,			June 30,
and Tangible Book Value Per Share	2026			2026			2025			2025			2025
	(Dollars in thousands, except per share amounts)
Stockholders' equity	$	3,410,146		$	3,553,326		$	3,541,277		$	3,466,739		$	3,426,843
Less: Preferred stock		498,516			498,516			498,516			498,516			498,516
Total common equity		2,911,630			3,054,810			3,042,761			2,968,223			2,928,327
Less: Goodwill and intangible assets		307,230			313,612			319,808			326,444			333,451
Tangible common equity	$	2,604,400		$	2,741,198		$	2,722,953		$	2,641,779		$	2,594,876
Book value per common share (1)	$	18.38		$	19.80		$	19.56		$	19.09		$	18.58
Tangible book value per common share (2)	$	16.44		$	17.77		$	17.51		$	16.99		$	16.46
Common shares outstanding (3)		158,432,520			154,262,045			155,533,403			155,522,693			157,647,137

______________
(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 June 30, 2026 and March 31, 2026.

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	Three Months Ended												Six Months Ended
Return on Average Tangible	June 30,				March 31,				June 30,				June 30,
Common Equity ("ROATCE")	2026				2026				2025				2026				2025
	(Dollars in thousands)
Net (loss) earnings	$	(241,347	)		$	71,952			$	28,385			$	(169,395	)		$	81,953
Adjustments:
Intangible asset amortization		6,349				6,348				7,159				12,697				14,319
Tax impact of adjustment above (1)		(1,778	)			(1,596	)			(1,655	)			(3,720	)			(3,311	)
Adjustment to net (loss) earnings		4,571				4,752				5,504				8,977				11,008
Adjusted net (loss) earnings for ROATCE		(236,776	)			76,704				33,889				(160,418	)			92,961
Less: Preferred stock dividends		9,947				9,947				9,947				19,894				19,894
Adjusted net (loss) earnings available to common and equivalent stockholders for ROATCE	$	(246,723	)		$	66,757			$	23,942			$	(180,312	)		$	73,067
Average stockholders' equity	$	3,545,141			$	3,548,700			$	3,430,143			$	3,546,910			$	3,476,902
Less: Average goodwill and intangible assets		311,068				317,215				337,352				314,125				340,961
Less: Average preferred stock		498,516				498,516				498,516				498,516				498,516
Average tangible common equity	$	2,735,557			$	2,732,969			$	2,594,275			$	2,734,269			$	2,637,425
Return on average equity (2)		(27.31	)%			8.22	%			3.32	%			(9.63	)%			4.75	%
ROATCE (3)		(36.18	)%			9.91	%			3.70	%			(13.30	)%			5.59	%

______________
(1)		Effective tax rates of 28.00%, 25.14%, and 23.12% used for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Effective tax rates of 29.30% and 23.12% used for the six months ended June 30, 2026 and 2025.
(2)		Annualized net (loss) earnings divided by average stockholders' equity.
(3)		Annualized adjusted net (loss) earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

	Three Months Ended										Six Months Ended
	June 30,				March 31,			June 30,			June 30,
Pre-Tax Pre-Provision (Loss) Income	2026				2026			2025			2026				2025
	(Dollars in thousands)
Net interest income (GAAP)	$	250,501			$	251,617		$	240,216		$	502,118			$	472,580
Add: Noninterest (loss) income (GAAP)		(234,096	)			35,328			32,633			(198,768	)			66,283
Total revenues (GAAP)		16,405				286,945			272,849			303,350				538,863
Less: Noninterest expense (GAAP)		189,867				181,391			185,869			371,258				369,522
Pre-tax pre-provision (loss) income (Non-GAAP)	$	(173,462	)		$	105,554		$	86,980		$	(67,908	)		$	169,341

BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
Efficiency Ratio	2026				2026				2025				2026				2025
	(Dollars in thousands)
Noninterest expense	$	189,867			$	181,391			$	185,869			$	371,258			$	369,522
Less: Intangible asset amortization		(6,349	)			(6,348	)			(7,159	)			(12,697	)			(14,319	)
Noninterest expense used for efficiency ratio	$	183,518			$	175,043			$	178,710			$	358,561			$	355,203
Net interest income	$	250,501			$	251,617			$	240,216			$	502,118			$	472,580
Noninterest (loss) income		(234,096	)			35,328				32,633				(198,768	)			66,283
Total revenue		16,405				286,945				272,849				303,350				538,863
Add: Loss on securities AFS		256,749				—				—				256,749				—
Total revenue used for efficiency ratio	$	273,154			$	286,945			$	272,849			$	560,099			$	538,863
Noninterest expense to total revenue		1157.37	%			63.21	%			68.12	%			122.39	%			68.57	%
Efficiency ratio (1)		67.18	%			61.00	%			65.50	%			64.02	%			65.92	%

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

	June 30,				March 31,				June 30,
Economic Coverage Ratio	2026				2026				2025
	(Dollars in thousands)
Allowance for credit losses ("ACL")	$	276,240			$	276,521			$	258,565
Add: Unearned credit mark from purchase accounting (1)		12,920				14,315				19,199
Add: Credit-linked notes (2)		105,026				104,988				112,887
Adjusted allowance for credit losses	$	394,186			$	395,824			$	390,651
Loans and leases HFI	$	24,210,846			$	24,780,347			$	24,245,893
ACL to loans and leases HFI (3)		1.14	%			1.12	%			1.07	%
Economic coverage ratio (4)		1.63	%			1.60	%			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 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.