Banc of California, Inc. Reports Third Quarter Diluted Earnings per Share of $0.46, Up 21% Year Over Year

Banc of California, Inc. Reports Third Quarter Diluted Earnings per Share of $0.46, Up 21% Year Over Year LOS ANGELES--( BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC):

Quarter Results

$0.46

Diluted Earnings Per Share

Total Revenue Growth

16%

Pre-Tax Pre-Provision

Income Growth (1)

3.34%

Net Interest Margin

Loan Annualized Growth

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 third quarter ended September 30, 2026. The Company reported net earnings available to common and equivalent stockholders of $73.1 million, or $0.46 per diluted common share, for the third quarter of 2026, compared to $59.7 million, or $0.38 per diluted common share for the third quarter of 2025. For the second quarter of 2026, 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 previously announced strategic balance sheet repositioning.

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our third quarter results demonstrate the stronger earnings foundation we have created through our second quarter strategic balance sheet repositioning and continued execution across our business. Compared to the first quarter, before the repositioning, diluted earnings per share increased 18%, total revenue increased 6% and pre-tax pre-provision income increased 12%. We also grew deposits, reduced our reliance on brokered funding and increased our CET1 ratio by 45 basis points from the second quarter.”

Mr. Wolff added, “We expect further improvement in profitability in the fourth quarter as we realize a full quarter of earnings from our securities reinvestment and additional benefits from the completed loan sales. We are focused on building on this progress through deeper client relationships, disciplined loan growth, growth in relationship deposits and continued capital generation to deliver sustainable earnings growth and long-term shareholder value.”

Third Quarter 2026 Financial Highlights:

(1)

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

(2)

Capital ratios for September 30, 2026 are preliminary

During the second quarter of 2026, the Company entered into targeted loan sales relating to $827 million of commercial real estate and construction loans. Of these loans, approximately $525 million were sold during the third quarter. Of the remaining approximately $300 million of construction loans, $235 million were sold on October 21, 2026, and $65 million were removed prior to sale as construction on the project was completed and the loan converted into permanent financing. We anticipate selling our remaining held for sale loan portfolio over the next several quarters.

INCOME STATEMENT HIGHLIGHTS

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

Summary Income Statement

2026

2025

2026

2025

(In thousands)

Total interest income

442,736

414,596

432,541

1,264,774

1,259,705

Total interest expense

170,294

164,095

179,097

490,214

533,681

Net interest income

272,442

250,501

253,444

774,560

726,024

Provision for credit losses

10,400

161,780

9,700

181,980

58,100

Loss on loans and leases HFS

(4,199

)

(12,544

)

(374

)

(16,733

)

(142

)

Gain (loss) on securities AFS

728

(256,749

)

—

(256,021

)

—

Other noninterest income

34,827

35,197

34,659

105,342

100,710

Total noninterest income (loss)

31,356

(234,096

)

34,285

(167,412

)

100,568

Total revenue

303,798

16,405

287,729

607,148

826,592

Total noninterest expense

185,370

189,867

185,684

556,628

555,206

Earnings (loss) before income taxes

108,028

(335,242

)

92,345

(131,460

)

213,286

Income tax expense (benefit)

24,971

(93,895

)

22,716

(45,122

)

61,704

Net earnings (loss)

83,057

(241,347

)

69,629

(86,338

)

151,582

Preferred stock dividends

9,947

29,841

Net earnings (loss) available to common and equivalent stockholders

73,110

(251,294

)

59,682

(116,179

)

121,741

Diluted earnings (loss) per share

0.46

(1.61

)

0.38

(0.74

)

0.75

Net Interest Income and Margin

Third Quarter of 2026 Compared to Second Quarter of 2026

Net interest income increased by $21.9 million to $272.4 million for the third quarter, from $250.5 million in the second quarter. This increase was primarily driven by the $17.7 million increase in interest income on investment securities resulting from the strategic balance sheet repositioning during the second quarter and reinvestment into higher-yielding assets, including a $2.8 million special dividend received on FHLB stock. In addition, interest income on loans increased by $7.7 million primarily driven by lower interest reversals associated with nonaccrual loans compared to the prior quarter and one additional day in the quarter. These increases were offset partially by a $6.0 million increase in interest expense on deposits primarily due to increased market interest rates, one additional day in the quarter, as well as higher average balances.

Net interest margin was 3.34% for the third quarter, up 21 basis points from 3.13% for the second quarter. The increase was primarily driven by the higher yield on average interest earning assets, which increased to 5.43% from 5.18%, reflecting a 142 basis point increase in the average yield on investment securities to 4.86%. The increase in investment securities yield reflects earnings from the strategic balance sheet repositioning and reinvestment activities.

The average total cost of funds increased to 2.16% from 2.14%, primarily due to a 3 basis point increase in the average total cost of deposits to 1.83%. Average total deposits increased by $565.3 million, with a $546.3 million increase in average interest-bearing deposits. The increase in average yield on total interest-bearing deposits reflects the impact of the federal funds rate increases during the quarter. Average noninterest-bearing deposits represented 28.0% of average total deposits in the third quarter, down from 28.5% in the second quarter.

Three Months Ended

Increase (Decrease)

September 30, 2026

June 30, 2026

QoQ

Summary

Average

Average Balance

Average

Yield/

Average

Yield/

Average

Yield/

and Yield/Rate Data

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Rate

(Dollars in thousands)

Assets:

Loans and leases (1)

25,274,927

362,549

5.69

25,266,712

354,832

5.63

8,215

0.06

Investment securities

4,912,701

60,125

4.86

4,938,232

42,407

3.44

(25,531

)

1.42

Deposits in financial institutions

2,166,626

20,062

3.67

1,912,585

17,357

3.64

254,041

0.03

Total interest-earning assets

32,354,254

442,736

5.43

32,117,529

414,596

5.18

236,725

0.25

Liabilities:

Noninterest-bearing demand deposits

7,885,157

7,866,139

19,018

Total interest-bearing deposits

20,298,878

130,248

2.55

19,752,609

124,270

2.52

546,269

0.03

Total deposits

28,184,035

130,248

1.83

27,618,748

124,270

1.80

565,287

0.03

Total interest-bearing liabilities

23,334,658

170,294

2.90

22,851,314

164,095

2.88

483,344

0.02

Net interest income (1)

272,442

250,501

Net interest margin

3.34

3.13

0.21

Total funds (2)

31,219,815

170,294

2.16

30,717,453

164,095

2.14

502,362

0.02

______________

(1)

Includes net loan discount accretion of $8.7 million and $11.2 million for the three months ended September 30, 2026 and June 30, 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 September 30, 2026 vs YTD September 30, 2025

Net interest income increased $48.5 million to $774.6 million for the nine months ended September 30, 2026, from $726.0 million for the nine months ended September 30, 2025. The increase was primarily driven by a $53.8 million decrease in interest expense on deposits due to lower interest rates following federal funds rate cuts in the second half of 2025, and a $30.6 million increase in interest income from investment securities reflecting the benefits of prior balance sheet repositioning and reinvestment activities, including $4.1 million of special dividends received on FHLB stock. These benefits were offset partially by a $15.5 million increase in borrowing costs associated with funding loan growth and the subordinated debt redemption prior to higher repricing in the second quarter of 2026, a $13.8 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, and an $11.8 million decrease in interest income from deposits in financial institutions due to lower balances and lower market interest rates.

The net interest margin was 3.24% for the nine months ended September 30, 2026, up 11 basis points from 3.13% for the nine months ended September 30, 2025. The year-over-year improvement was primarily driven by a 26 basis point decrease in the average total cost of funds due mainly to lower market interest rates and a 69 basis point increase in the average yield on investment securities.

The average total cost of funds decreased by 26 basis points to 2.14%, driven primarily by the decline in average cost of deposits of 30 basis points to 1.81%, reflecting the impact of lower market interest rates. Average total deposits increased by $536.6 million year-over-year, as a result of a $316.6 million increase in average interest-bearing deposits and a $220.1 million increase in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.4% of average total deposits for the nine months ended September 30, 2026, up from 28.2% for the comparable period in 2025. The average cost of borrowings also decreased by 49 basis points to 4.50%, reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost short-term Federal Home Loan Bank ("FHLB") advances.

The average yield on interest-earning assets declined by 15 basis points to 5.29%. The decrease was primarily driven by a 27 basis point decline in average yield on loans and leases to 5.69% and a 74 basis point decline in average yield on deposits in financial institutions, primarily consisting of reserves held at the Federal Reserve Bank, to 3.65%, reflecting lower market rates. These decreases were offset partially by a 69 basis point increase in the average yield on investment securities to 3.90%, reflecting a benefit from the strategic balance sheet repositioning and reinvestment activities.

Nine Months Ended

Increase (Decrease)

September 30, 2026

September 30, 2025

YoY

Summary

Average

Average Balance

Average

Yield/

Average

Yield/

Average

Yield/

and Yield/Rate Data

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Rate

(Dollars in thousands)

Assets:

Loans and leases (1)

25,086,150

1,067,324

5.69

24,252,860

1,081,129

5.96

833,290

(0.27

Investment securities

4,955,926

144,405

3.90

4,745,530

113,769

3.21

210,396

0.69

Deposits in financial institutions

1,942,176

53,045

3.65

1,972,486

64,807

4.39

(30,310

)

(0.74

Total interest-earning assets

31,984,252

1,264,774

5.29

30,970,876

1,259,705

5.44

1,013,376

(0.15

Liabilities:

Noninterest-bearing demand deposits

7,880,575

7,660,504

220,071

Total interest-bearing deposits

19,830,053

374,751

2.53

19,513,486

428,544

2.94

316,567

(0.41

Total deposits

27,710,628

374,751

1.81

27,173,990

428,544

2.11

536,638

(0.30

Total interest-bearing liabilities

22,782,506

490,214

2.88

22,038,389

533,681

3.24

744,117

(0.36

Net interest income (1)

774,560

726,024

Net interest margin

3.24

3.13

0.11

Total funds (2)

30,663,081

490,214

2.14

29,698,893

533,681

2.40

964,188

(0.26

______________

(1)

Includes net loan discount accretion of $32.2 million and $51.5 million for the nine months ended September 30, 2026 and 2025.

(2)

Provision For Credit Losses

Third Quarter of 2026 Compared to Second Quarter of 2026

The provision for credit losses was $10.4 million for the third quarter compared to $161.8 million for the second quarter.

The third quarter provision included an $8.4 million provision for loan losses and a $2.0 million provision for unfunded commitments. The provision was primarily driven by net charge-off activity experienced in the quarter and growth in the held for investment ("HFI") loan portfolio, offset partially by lower specific reserves and changes in the economic factors used in the provision estimate.

The second quarter provision was elevated by the strategic balance sheet repositioning activities related to the targeted loan sale process, 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 in our HFI portfolio.

YTD September 30, 2026 vs YTD September 30, 2025

The provision for credit losses was $182.0 million for the nine months ended September 30, 2026, compared to $58.1 million for the nine months ended September 30, 2025. The provision for the 2026 period included a provision for loan losses of $180.2 million, reflecting the impact of the targeted loan sale process and the impact of loan growth, offset partially by improved risk ratings for our HFI portfolio.

The provision for the nine months ended September 30, 2025 included the impact of $506.7 million of loans transferred to held for sale ("HFS") and recorded at the lower of cost or market value. The remaining increase in the provision for credit losses was primarily driven by net charge-off activity experienced in the first half of the year, with additional impacts from changes in loan risk ratings. These were offset partially by lower specific reserves and a favorable shift in the portfolio mix due to growth in loan segments with lower expected credit losses.

Noninterest Income

Third Quarter of 2026 Compared to Second Quarter of 2026

Noninterest income increased by $265.5 million to $31.4 million for the third quarter, compared to a loss of $234.1 million for the second quarter. The increase was primarily driven by a $257.5 million decrease in loss on securities and an $8.3 million decrease in loss on loans and leases HFS, both of which were a result of the strategic balance sheet repositioning actions taken in the second quarter. Also included in noninterest income was a $2.0 million increase in operating lease income, primarily due to new lease fundings and higher lease renewal income, offset partially by a $1.4 million decrease in other income. The decrease in other income was primarily due to the second quarter gain recognized on the sale of the Company's single-family mortgage servicing rights portfolio, offset partially by the second quarter loss on the redemption of the $385 million subordinated note.

YTD September 30, 2026 vs YTD September 30, 2025

Noninterest income decreased by $268.0 million to a loss of $167.4 million for the nine months ended September 30, 2026, compared to income of $100.6 million for the same period in 2025. The decrease was primarily attributable to the $256.0 million pre-tax loss recognized as part of the securities repositioning and a $16.6 million increase in the loss on loans and leases HFS resulting primarily from lower of cost or market adjustments recorded during the second quarter in connection with the strategic balance sheet repositioning actions.

Noninterest Expense

Third Quarter of 2026 Compared to Second Quarter of 2026

Noninterest expense decreased by $4.5 million to $185.4 million for the third quarter from $189.9 million for the second quarter. The decrease was primarily due to a $5.1 million decrease in other expense due to a non-recurring software obsolescence charge taken during the second quarter and a $2.3 million decrease in insurance and assessments due to a lower FDIC assessment rate resulting from favorable mix. These decreases were offset partially by a $2.2 million increase in compensation expense primarily driven by one-time incentive plan adjustments in the second quarter and a $1.6 million increase in operating lease and customer related expenses.

YTD September 30, 2026 vs YTD September 30, 2025

Noninterest expense increased by $1.4 million to $556.6 million for the nine months ended September 30, 2026 from $555.2 million for the nine months ended September 30, 2025. The increase was primarily due to an $8.2 million increase in other expense related mainly to software obsolescence charges, a $7.8 million increase in insurance and assessments due to the higher assessment rate resulting from the balance sheet repositioning and its effect on assessment related metrics, and a $2.2 million increase in loan expense related to legal fees. These increases were offset partially by a $7.9 million decrease in customer related expenses primarily due to federal funds rate cuts in the fourth quarter of 2025 and a $3.6 million decrease in leased equipment depreciation.

Income Taxes

Third Quarter of 2026 Compared to Second Quarter of 2026

Income tax expense of $25.0 million was recorded for the third quarter, resulting in an effective tax rate of 23.1%, compared to an income tax benefit of $93.9 million and an effective tax rate of 28.0% for the second 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, in the second quarter, the Company began calculating its income tax provision using the year-to-date effective tax rate approach rather than the estimated annual effective tax rate method. The decrease in the effective tax rate from the second quarter is due primarily to the recognition of increased income tax benefits in the third quarter.

YTD September 30, 2026 vs YTD September 30, 2025

Income tax benefit of $45.1 million was recorded for the nine months ended September 30, 2026, resulting in an effective tax rate of 34.3%, compared to income tax expense of $61.7 million and an effective tax rate of 28.9% for the same period in 2025. The increase in the effective tax rate from 2025 to 2026 is due primarily to the effects of the Company’s balance sheet repositioning actions taken in the second quarter of 2026.

BALANCE SHEET HIGHLIGHTS

September 30,

June 30,

September 30,

Increase (Decrease)

Selected Balance Sheet Items

2026

2025

QoQ

YoY

(In thousands)

Cash and cash equivalents

2,168,707

2,818,055

2,398,265

(649,348

)

(229,558

)

Securities AFS

5,065,839

4,484,021

2,426,734

581,818

2,639,105

Securities HTM

—

2,303,657

—

(2,303,657

)

Loans HFS

498,759

915,171

211,454

(416,412

)

287,305

Loans and leases HFI

24,590,523

24,210,846

24,110,642

379,677

479,881

Total loans and leases

25,089,282

25,126,017

24,322,096

(36,735

)

767,186

Total assets

34,965,495

35,030,953

34,012,965

(65,458

)

952,530

Noninterest-bearing deposits

7,690,767

7,758,119

7,603,748

(67,352

)

87,019

Total deposits

28,260,309

28,121,182

27,184,765

139,127

1,075,544

Borrowings

2,408,626

2,460,363

2,005,022

(51,737

)

403,604

Total liabilities

31,616,666

31,620,807

30,546,226

(4,141

)

1,070,440

Total stockholders' equity

3,348,829

3,410,146

3,466,739

(61,317

)

(117,910

)

Securities

Available-for-sale ("AFS") securities increased by $0.6 billion during the third quarter to $5.1 billion at September 30, 2026 compared to $4.5 billion at June 30, 2026, due primarily to the remaining reinvestment activities following the securities repositioning in the second quarter. During the third quarter AFS securities were impacted by $997.2 million of purchases offset partially by $209.9 million of principal paydowns, $160.2 million decrease in the fair value of AFS securities, $26.8 million of maturities, and $18.3 million of sales. As of September 30, 2026, AFS securities had aggregate unrealized net after-tax losses in AOCI of $261.4 million, up from $145.3 million at June 30, 2026, driven by higher interest rates.

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:

September 30,

June 30,

March 31,

December 31,

September 30,

2026

2025

(Dollars in thousands)

Composition of Loans and Leases

Real estate mortgage:

Commercial

3,998,683

4,037,229

4,093,386

4,314,637

4,292,625

Multi-family

5,376,885

5,445,475

5,955,102

6,089,417

6,124,673

Other residential

4,100,716

3,793,876

3,458,410

3,346,733

3,162,564

Total real estate mortgage

13,476,284

13,276,580

13,506,898

13,750,787

13,579,862

Real estate construction and land:

Commercial

358,696

360,392

364,575

379,387

395,150

Residential

1,116,075

1,114,459

1,527,754

1,568,240

1,759,676

Total real estate construction and land

1,474,771

1,474,851

1,892,329

1,947,627

2,154,826

Total real estate

14,951,055

14,751,431

15,399,227

15,698,414

15,734,688

Commercial:

Asset-based

3,393,000

3,318,822

3,209,338

2,951,010

2,742,519

Venture capital

2,369,551

2,440,075

2,322,261

2,222,097

1,907,601

Other commercial

3,541,510

3,353,534

3,501,388

3,804,099

3,356,537

Total commercial

9,304,061

9,112,431

9,032,987

8,977,206

8,006,657

Consumer

335,407

346,984

348,133

357,059

369,297

Total loans and leases HFI

24,590,523

24,210,846

24,780,347

25,032,679

24,110,642

Total unfunded loan commitments

5,565,774

5,211,632

5,549,325

5,433,357

4,822,917

Composition as % of Total Loans and Leases

Real estate mortgage:

Commercial

Multi-family

Other residential

Total real estate mortgage

Real estate construction and land:

Commercial

Residential

Total real estate construction and land

Total real estate

Commercial:

Asset-based

Venture capital

Other commercial

Total commercial

Consumer

Total loans and leases HFI

100

Total loans and leases HFI increased by $379.7 million in the third quarter to $24.6 billion at September 30, 2026. The increase reflected continued growth in the Company's other residential real estate mortgage loans and asset-based lending portfolios, as well as growth in the other commercial portfolio during the quarter. Loan production and disbursements totaled $2.6 billion in the third quarter and were broad-based, with a weighted average interest rate on production of 6.58%.

Total loans and leases HFS decreased by $416.4 million in the third quarter and totaled $498.8 million at September 30, 2026. The decrease was primarily driven by the sale of loans associated with the Company's previously announced $827 million targeted loan sale. Approximately $525 million were sold during the third quarter. Of the remaining approximately $300 million of construction loans, $235 million were sold on October 21, 2026, and $65 million were removed prior to sale as construction on the project was completed and the loan converted into permanent financing. We anticipate selling our remaining held for sale loan portfolio over the next several quarters.

Credit Quality

September 30,

June 30,

March 31,

December 31,

September 30,

Asset Quality Information and Ratios

2026

2025

(Dollars in thousands)

Delinquent loans and leases HFI:

30 to 89 days delinquent

45,096

91,196

263,530

108,303

56,416

90+ days delinquent

69,704

82,457

81,599

92,655

104,952

Total delinquent loans and leases

114,800

173,653

345,129

200,958

161,368

Total delinquent loans and leases to loans and leases HFI

0.47

0.72

1.39

0.80

0.67

Nonperforming assets, excluding loans HFS:

Nonaccrual loans and leases

177,233

203,712

185,734

159,168

174,541

90+ days delinquent loans and still accruing

—

Total nonperforming loans and leases ("NPLs")

177,233

203,712

185,734

159,168

174,541

Foreclosed assets, net

21,460

16,319

18,055

17,115

4,790

Total nonperforming assets ("NPAs")

198,693

220,031

203,789

176,283

179,331

Classified loans and leases HFI

507,368

582,790

842,834

800,330

763,582

Special mention loans and leases HFI

352,144

300,542

688,659

458,683

505,979

Criticized loans and leases HFI

859,512

883,332

1,531,493

1,259,013

1,269,561

Allowance for loan and lease losses

234,428

243,319

241,600

245,612

240,501

Allowance for loan and lease losses to NPLs

132.27

119.44

130.08

154.31

137.79

NPLs to loans and leases HFI

0.72

0.84

0.75

0.64

0.72

NPAs to total assets

0.57

0.63

0.59

0.51

0.53

Classified loans and leases to loans and leases HFI

2.06

2.41

3.40

3.20

3.17

Special mention loans and leases to loans and leases HFI

1.43

1.24

2.78

1.83

2.10

Credit quality trends were favorable in the third quarter reflecting both portfolio actions and underlying migration in the third quarter. Nonperforming and classified loans and leases as a percentage of total loans and leases HFI decreased 12 basis points and 35 basis points, respectively, while special mention loans increased 19 basis points.

At September 30, 2026, total delinquent loans and leases were $114.8 million, compared to $173.7 million at June 30, 2026. The 30 to 89 days delinquent category decreased by $35.4 million in other residential real estate mortgage loans, $5.8 million in asset-based loans, $3.1 million in commercial real estate mortgage loans, and $2.5 million in other commercial loans. In the 90 or more days delinquent category, there were decreases of $11.5 million in other commercial loans, $4.9 million in multi-family real estate mortgage loans, and $1.3 million in commercial real estate mortgage loans, offset partially by an increase of $5.2 million in other residential real estate mortgage loans.

At September 30, 2026, nonperforming loans and leases were $177.2 million, compared to $203.7 million at June 30, 2026. During the third quarter, nonperforming loans and leases decreased by $26.5 million due to transfers to loans HFS of $55.0 million, charge-offs of $17.8 million, paydowns of $11.9 million, and transfers to accrual status of $11.0 million, offset partially by additions of $69.3 million.

At September 30, 2026, nonperforming assets were $198.7 million, or 0.57% of total assets, compared to $220.0 million, or 0.63% of total assets, as of June 30, 2026. At September 30, 2026, nonperforming assets included $21.5 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

Allowance for Credit Losses - Loans

2026

2025

2026

2025

(Dollars in thousands)

Allowance for loan and lease losses ("ALLL"):

Balance at beginning of period

243,319

241,600

229,344

245,612

239,360

Charge-offs

(19,154

)

(161,617

)

(6,465

)

(196,868

)

(69,964

)

Recoveries

1,863

1,336

8,922

5,484

14,125

Net (charge-offs) recoveries

(17,291

)

(160,281

)

2,457

(191,384

)

(55,839

)

Provision for loan losses

8,400

162,000

8,700

180,200

56,980

Balance at end of period

234,428

243,319

240,501

234,428

240,501

Reserve for unfunded loan commitments ("RUC"):

Balance at beginning of period

32,921

34,921

29,221

34,921

29,071

Provision for credit losses

2,000

(2,000

)

1,000

—

1,150

Balance at end of period

34,921

32,921

30,221

34,921

30,221

Allowance for credit losses ("ACL") - Loans:

Balance at beginning of period

276,240

276,521

258,565

280,533

268,431

Charge-offs

(19,154

)

(161,617

)

(6,465

)

(196,868

)

(69,964

)

Recoveries

1,863

1,336

8,922

5,484

14,125

Net (charge-offs) recoveries

(17,291

)

(160,281

)

2,457

(191,384

)

(55,839

)

Provision for credit losses

10,400

160,000

9,700

180,200

58,130

Balance at end of period

269,349

276,240

270,722

269,349

270,722

ALLL to loans and leases HFI

0.95

1.00

0.95

1.00

ACL to loans and leases HFI

1.10

1.14

1.12

1.10

1.12

ACL to NPLs

151.97

135.60

155.11

151.97

155.11

ACL to NPAs

135.56

125.55

150.96

135.56

150.96

Annualized net charge-offs to average loans and leases

0.27

2.54

(0.04

1.02

0.31

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $269.3 million, or 1.10% of total loans and leases HFI at September 30, 2026, compared to $276.2 million, or 1.14% of total loans and leases HFI at June 30, 2026. The $6.9 million decrease in the allowance was driven by net charge-offs of $17.3 million, of which $10.0 million had been specifically reserved as of June 30, 2026, offset partially by the provision of $10.4 million.

In addition to the associated provisions in our ACL, our ability to absorb certain credit losses is also bolstered by (i) $109.9 million of loss coverage from the credit-linked notes associated with the $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $11.7 million on $1.2 billion of purchased loans without credit deterioration.

The ACL coverage of nonperforming loans and leases was 152% at September 30, 2026 compared to 136% at June 30, 2026. Net charge-offs were 0.27% of average loans and leases (annualized) for the third quarter, compared to net charge-offs of 2.54% for the second quarter. The quarter-over-quarter improvement was primarily attributable to the impact of the targeted loan sale process in the second quarter.

Deposits and Client Investment Funds

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

September 30,

June 30,

March 31,

December 31,

September 30,

2026

2025

(Dollars in thousands)

Composition of Deposits

Noninterest-bearing checking

7,690,767

7,758,119

7,797,542

7,822,787

7,603,748

Interest-bearing:

Checking

9,024,086

8,739,368

8,178,485

8,509,587

7,930,951

Money market

5,718,773

5,136,561

4,643,349

4,917,857

4,974,177

Savings

1,862,512

1,834,517

1,991,010

1,905,863

1,949,369

Time deposits:

Non-brokered

2,006,617

2,061,323

2,149,564

2,254,293

2,468,017

Brokered

1,957,554

2,591,294

2,562,184

2,432,970

2,258,503

Total time deposits

3,964,171

4,652,617

4,711,748

4,687,263

4,726,520

Total interest-bearing

20,569,542

20,363,063

19,524,592

20,020,570

19,581,017

Total deposits

28,260,309

28,121,182

27,322,134

27,843,357

27,184,765

Composition as % of Total Deposits

Noninterest-bearing checking

Interest-bearing:

Checking

Money market

Savings

Time deposits:

Non-brokered

Brokered

Total time deposits

Total interest-bearing

Total deposits

100

Total deposits increased by $139.1 million to $28.3 billion at September 30, 2026 from $28.1 billion at June 30, 2026, driven primarily by an increase in interest-bearing deposits of $206.5 million and a decrease in noninterest-bearing deposits of $67.4 million. Interest-bearing deposits increased due mainly to higher balances in money market accounts of $582.2 million, checking accounts of $284.7 million, and savings accounts of $28.0 million, offset partially by lower brokered and non-brokered time deposits of $688.4 million.

At September 30, 2026, noninterest-bearing checking deposits totaled $7.7 billion, or 27% of total deposits, compared to $7.8 billion, or 28% of total deposits, at June 30, 2026.

At September 30, 2026, uninsured and uncollateralized deposits totaled $7.3 billion, or 26% of total deposits, compared to $7.6 billion, or 27% of total deposits, at June 30, 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 at September 30, 2026 and June 30, 2026, respectively.

Borrowings

Borrowings decreased by $51.7 million to $2.4 billion at September 30, 2026 from $2.5 billion at June 30, 2026, driven primarily by the repayment of a maturing long-term FHLB advance.

Equity

During the third quarter, total stockholders’ equity decreased by $61.3 million to $3.3 billion and tangible common equity (1) decreased by $55.1 million to $2.5 billion at September 30, 2026. The decrease in total stockholders’ equity for the third quarter resulted primarily from an increase in the aggregate unrealized net after-tax loss in AOCI for AFS securities of $116.1 million and common and preferred stock dividends of $29.3 million, offset partially by net earnings of $83.1 million.

At September 30, 2026, book value per common share decreased to $17.99 compared to $18.38 at June 30, 2026, and tangible book value per common share (1) decreased to $16.09 compared to $16.44 at June 30, 2026. The decrease was primarily driven by the increased aggregate unrealized net after-tax loss in AOCI on our portfolio of AFS securities.

For the nine-month period ended September 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 September 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:

September 30,

June 30,

March 31,

December 31,

September 30,

2026

2025

Capital Ratios (1)

Banc of California, Inc.

Total risk-based capital ratio

14.71

14.31

16.55

16.31

16.69

Tier 1 risk-based capital ratio

12.10

11.67

12.54

12.34

12.56

Common equity tier 1 capital ratio

9.70

9.25

10.18

10.01

10.14

Tier 1 leverage ratio

9.14

8.89

9.97

9.99

9.77

Banc of California

Total risk-based capital ratio

13.97

13.74

15.97

15.61

15.94

Tier 1 risk-based capital ratio

12.94

12.68

13.50

13.15

13.42

Common equity tier 1 capital ratio

12.94

12.68

13.50

13.15

13.42

Tier 1 leverage ratio

9.77

9.64

10.73

10.65

10.44

______________

(1)

September 30, 2026 capital ratios are preliminary.

At September 30, 2026, cash and cash equivalents totaled $2.2 billion, down $649.3 million from June 30, 2026, reflecting the full reinvestment of cash generated from the securities repositioning.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available borrowing capacity of $8.7 billion and unpledged AFS securities of $3.9 billion, total available liquidity was $14.6 billion at the end of the third quarter.

Conference Call

The Company will host a conference call to discuss its third quarter 2026 financial results at 8:30 a.m. Pacific Time (PT) on Wednesday, October 28, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 7279202. 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 1286998.

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. Through its Private Banking division, the bank also serves individuals and families with personalized banking solutions, dedicated relationship management, and exceptional service. Banc of California is the largest publicly-traded 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 76 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, profitability, 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 and private 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; (ix) our ability to successfully implement new business initiatives, such as our private banking service, and to realize their anticipated benefits; (x) our ability to raise capital or incur debt on reasonable terms; (xi) the costs and effects of litigation; (xii) 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; (xiii) 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; (xiv) 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; (xv) 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; (xvi) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvii) 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; (xviii) cybersecurity threats and failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend; (xix) our ability to attract and retain key members of our senior management team; (xx) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, geopolitical conflicts and military activity (including the ongoing Iran war) or acts of terrorism, and other external events on our business; (xxi) 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; (xxii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xxiii) 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; (xxiv) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; (xxv) the effects of any damage to our reputation resulting from developments related to any of the items identified above; and (xxvi) 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, and efficiency ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

September 30,

June 30,

March 31,

December 31,

September 30,

2026

2025

ASSETS:

(Dollars in thousands)

Cash and due from banks

293,680

225,343

214,120

181,103

205,364

Interest-earning deposits in financial institutions

1,875,027

2,592,712

2,003,149

2,126,862

2,192,901

Total cash and cash equivalents

2,168,707

2,818,055

2,217,269

2,307,965

2,398,265

Securities AFS

5,065,839

4,484,021

2,656,332

2,454,058

2,426,734

Securities HTM

—

2,313,548

2,308,636

2,303,657

FRB and FHLB stock

175,691

181,352

170,342

160,442

159,337

Total investment securities

5,241,530

4,665,373

5,140,222

4,923,136

4,889,728

Loans HFS

498,759

915,171

259,049

182,936

211,454

Loans and leases HFI

24,590,523

24,210,846

24,780,347

25,032,679

24,110,642

Allowance for loan and lease losses

(234,428

)

(243,319

)

(241,600

)

(245,612

)

(240,501

)

Total loans and leases HFI, net

24,356,095

23,967,527

24,538,747

24,787,067

23,870,141

Equipment leased to others under operating leases

267,883

218,444

223,558

238,232

280,872

Premises and equipment, net

147,343

145,440

146,316

146,698

132,766

Bank owned life insurance

352,351

348,777

352,707

350,083

348,051

Goodwill

214,521

Intangible assets, net

86,521

92,709

99,091

105,287

111,923

Deferred tax asset, net

743,714

704,467

653,481

656,755

672,159

Other assets

888,071

940,469

879,280

884,762

883,085

Total assets

34,965,495

35,030,953

34,724,241

34,797,442

34,012,965

LIABILITIES:

Noninterest-bearing deposits

7,690,767

7,758,119

7,797,542

7,822,787

7,603,748

Interest-bearing deposits

20,569,542

20,363,063

19,524,592

20,020,570

19,581,017

Total deposits

28,260,309

28,121,182

27,322,134

27,843,357

27,184,765

Borrowings

2,408,626

2,460,363

2,551,250

2,063,819

2,005,022

Subordinated debt

575,024

573,555

954,072

952,740

950,888

Accrued interest payable and other liabilities

372,707

465,707

343,459

396,249

405,551

Total liabilities

31,616,666

31,620,807

31,170,915

31,256,165

30,546,226

STOCKHOLDERS' EQUITY:

Preferred stock

498,516

Common stock

1,580

1,538

1,500

1,509

Class B non-voting common stock

Non-voting common stock equivalents

—

Additional paid-in-capital

3,471,958

3,485,560

3,501,213

3,552,483

3,563,145

Retained deficit

(358,195

)

(431,305

)

(180,011

)

(242,016

)

(309,460

)

Accumulated other comprehensive loss, net

(265,035

)

(144,210

)

(267,935

)

(269,261

)

(287,017

)

Total stockholders’ equity

3,348,829

3,410,146

3,553,326

3,541,277

3,466,739

Total liabilities and stockholders’ equity

34,965,495

35,030,953

34,724,241

34,797,442

34,012,965

Common shares outstanding (1)

158,459,635

158,432,520

154,262,045

155,533,403

155,522,693

______________

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

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

(In thousands, except per share amounts)

Interest income:

Loans and leases

362,549

354,832

372,723

1,067,324

1,081,129

Investment securities

60,125

42,407

38,291

144,405

113,769

Deposits in financial institutions

20,062

17,357

21,527

53,045

64,807

Total interest income

442,736

414,596

432,541

1,264,774

1,259,705

Interest expense:

Deposits

130,248

124,270

143,074

374,751

428,544

Borrowings

27,623

26,568

20,461

74,368

58,903

Subordinated debt

12,423

13,257

15,562

41,095

46,234

Total interest expense

170,294

164,095

179,097

490,214

533,681

Net interest income

272,442

250,501

253,444

774,560

726,024

Provision for credit losses

10,400

161,780

9,700

181,980

58,100

Net interest income after provision for credit losses

262,042

88,721

243,744

592,580

667,924

Noninterest income:

Service charges on deposit accounts

4,881

4,763

5,109

14,622

14,108

Commissions and fees

9,307

9,034

9,514

29,321

29,113

Leased equipment income

9,812

7,820

10,321

26,162

31,336

Loss on loans and leases HFS

(4,199

)

(12,544

)

(374

)

(16,733

)

(142

)

Gain (loss) on securities AFS

728

(256,749

)

—

(256,021

)

—

Dividends and gains on equity investments

2,675

3,326

2,291

8,003

4,500

Warrant income

221

896

433

2,055

1,365

Other income

7,931

9,358

6,991

25,179

20,288

Total noninterest income (loss)

31,356

(234,096

)

34,285

(167,412

)

100,568

Noninterest expense:

Compensation

87,318

85,120

88,865

263,538

263,644

Occupancy

14,733

14,714

15,415

44,339

45,898

Information technology and data processing

13,133

13,769

13,535

41,241

41,707

Other professional services

5,914

5,599

5,394

15,749

16,313

Insurance and assessments

12,211

14,500

8,994

33,475

25,680

Intangible asset amortization

6,188

6,349

7,160

18,885

21,479

Leased equipment depreciation

6,078

5,168

6,750

16,550

20,191

Customer related expense

24,834

24,114

26,227

72,685

80,555

Loan expense

4,709

5,170

4,947

14,171

11,927

Other expense

10,252

15,364

8,397

35,995

27,812

Total noninterest expense

185,370

189,867

185,684

556,628

555,206

Earnings (loss) before income taxes

108,028

(335,242

)

92,345

(131,460

)

213,286

Income tax expense (benefit)

24,971

(93,895

)

22,716

(45,122

)

61,704

Net earnings (loss)

83,057

(241,347

)

69,629

(86,338

)

151,582

Preferred stock dividends

9,947

29,841

Net earnings (loss) available to common and equivalent stockholders

73,110

(251,294

)

59,682

(116,179

)

121,741

Earnings (loss) per common share:

Basic

0.46

(1.61

)

0.38

(0.74

)

0.75

Diluted

0.46

(1.61

)

0.38

(0.74

)

0.75

Weighted average number of common shares outstanding: (1)

Basic

158,441

155,803

157,103

156,368

161,276

Diluted

160,307

155,803

159,051

156,368

161,993

______________

(1)

Common shares outstanding include non-voting common stock equivalents that are participating securities.

BANC OF CALIFORNIA, INC.

SELECTED FINANCIAL DATA

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

Profitability and Other Ratios

2026

2025

2026

2025

Return on average assets (1)

0.94

(2.79

0.82

(0.33

0.60

Return on average equity (1)

9.71

(27.31

8.04

(3.30

5.85

Return on average tangible common equity (1)(2)

11.93

(36.18

9.87

(5.17

6.99

Dividend payout ratio (3)

26.09

(7.45

26.32

(48.65

40.00

Average yield on loans and leases (1)

5.69

5.63

6.05

5.69

5.96

Average yield on interest-earning assets (1)

5.43

5.18

5.50

5.29

5.44

Average cost of interest-bearing deposits (1)

2.55

2.52

2.89

2.53

2.94

Average total cost of deposits (1)

1.83

1.80

2.08

1.81

2.11

Average cost of interest-bearing liabilities (1)

2.90

2.88

3.19

2.88

3.24

Average total cost of funds (1)

2.16

2.14

2.37

2.14

2.40

Net interest spread

2.53

2.30

2.31

2.41

2.20

Net interest margin (1)

3.34

3.13

3.22

3.24

3.13

Noninterest income to total revenue (4)

10.32

(1426.98

11.92

(27.57

12.17

Noninterest expense to average total assets (1)

2.10

2.20

2.18

2.15

2.21

Noninterest expense to total revenue (4)

61.02

1157.37

64.53

91.68

67.17

Efficiency ratio (2)(5)

59.12

67.18

62.05

62.30

64.57

Loans to deposits ratio

88.78

89.30

89.47

88.78

89.47

Average loans and leases to average deposits

89.68

91.48

89.62

90.53

89.25

Average investment securities to average total assets

14.03

14.25

14.14

14.34

14.11

Average stockholders' equity to average total assets

9.69

10.23

10.16

10.11

10.30

______________

(1)

Annualized.

(2)

Non-GAAP measure.

(3)

Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings (loss) 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 RATE PAID

(UNAUDITED)

Three Months Ended

September 30, 2026

June 30, 2026

September 30, 2025

Average

Yield/

Average

Yield/

Average

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

Balance

Interest

Rate

(Dollars in thousands)

Assets:

Loans and leases (1)

25,274,927

362,549

5.69

25,266,712

354,832

5.63

24,458,255

372,723

6.05

Investment securities

4,912,701

60,125

4.86

4,938,232

42,407

3.44

4,782,070

38,291

3.18

Deposits in financial institutions

2,166,626

20,062

3.67

1,912,585

17,357

3.64

1,958,011

21,527

4.36

Total interest-earning assets

32,354,254

442,736

5.43

32,117,529

414,596

5.18

31,198,336

432,541

5.50

Other assets

2,666,216

2,527,401

2,632,881

Total assets

35,020,470

34,644,930

33,831,217

Liabilities and Stockholders' Equity:

Interest checking

8,878,491

53,397

2.39

8,313,161

47,694

2.30

7,855,639

53,995

2.73

Money market

5,252,893

28,127

2.12

4,736,107

23,429

1.98

5,154,138

30,461

2.34

Savings

1,865,962

10,024

2.13

1,883,240

9,575

2.04

1,966,040

12,689

2.56

Time

4,301,532

38,700

3.57

4,820,101

43,572

3.63

4,633,089

45,929

3.93

Total interest-bearing deposits

20,298,878

130,248

2.55

19,752,609

124,270

2.52

19,608,906

143,074

2.89

Borrowings

2,461,168

27,623

4.45

2,399,546

26,568

4.44

1,705,697

20,461

4.76

Subordinated debt

574,612

12,423

8.58

699,159

13,257

7.61

949,690

15,562

6.50

Total interest-bearing liabilities

23,334,658

170,294

2.90

22,851,314

164,095

2.88

22,264,293

179,097

3.19

Noninterest-bearing demand deposits

7,885,157

7,866,139

7,683,136

Other liabilities

408,643

382,336

446,453

Total liabilities

31,628,458

31,099,789

30,393,882

Stockholders' equity

3,392,012

3,545,141

3,437,335

Total liabilities and stockholders' equity

35,020,470

34,644,930

33,831,217

Net interest income (1)

272,442

250,501

253,444

Net interest spread

2.53

2.30

2.31

Net interest margin

3.34

3.13

3.22

Total deposits (2)

28,184,035

130,248

1.83

27,618,748

124,270

1.80

27,292,042

143,074

2.08

Total funds (3)

31,219,815

170,294

2.16

30,717,453

164,095

2.14

29,947,429

179,097

2.37

______________

(1)

Includes net loan discount accretion of $8.7 million, $11.2 million, and $19.3 million for the three months ended September 30, 2026, June 30, 2026, and September 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)

BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID

(UNAUDITED)

Nine Months Ended

September 30, 2026

September 30, 2025

Average

Yield/

Average

Yield/

Balance

Interest

Rate

Balance

Interest

Rate

(Dollars in thousands)

Assets:

Loans and leases (1)

25,086,150

1,067,324

5.69

24,252,860

1,081,129

5.96

Investment securities

4,955,926

144,405

3.90

4,745,530

113,769

3.21

Deposits in financial institutions

1,942,176

53,045

3.65

1,972,486

64,807

4.39

Total interest-earning assets

31,984,252

1,264,774

5.29

30,970,876

1,259,705

5.44

Other assets

2,575,510

2,665,623

Total assets

34,559,762

33,636,499

Liabilities and Stockholders' Equity:

Interest checking

8,458,185

147,973

2.34

7,661,200

154,751

2.70

Money market

4,926,608

74,382

2.02

5,326,554

97,079

2.44

Savings

1,902,008

29,371

2.06

1,958,289

38,323

2.62

Time

4,543,252

123,025

3.62

4,567,443

138,391

4.05

Total interest-bearing deposits

19,830,053

374,751

2.53

19,513,486

428,544

2.94

Borrowings

2,211,339

74,368

4.50

1,578,462

58,903

4.99

Subordinated debt

741,114

41,095

7.41

946,441

46,234

6.53

Total interest-bearing liabilities

22,782,506

490,214

2.88

22,038,389

533,681

3.24

Noninterest-bearing demand deposits

7,880,575

7,660,504

Other liabilities

401,971

474,038

Total liabilities

31,065,052

30,172,931

Stockholders' equity

3,494,710

3,463,568

Total liabilities and stockholders' equity

34,559,762

33,636,499

Net interest income (1)

774,560

726,024

Net interest spread

2.41

2.20

Net interest margin

3.24

3.13

Total deposits (2)

27,710,628

374,751

1.81

27,173,990

428,544

2.11

Total funds (3)

30,663,081

490,214

2.14

29,698,893

533,681

2.40

______________

(1)

Includes net loan discount accretion of $32.2 million and $51.5 million for the nine months ended September 30, 2026 and 2025.

(2)

(3)

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, and efficiency ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible common equity is total stockholders' equity less preferred stock, goodwill and intangible assets. Tangible book value per common share is calculated by dividing tangible common equity by common shares outstanding. 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).

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

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

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Tangible Common Equity

September 30,

June 30,

March 31,

December 31,

September 30,

and Tangible Book Value Per Share

2026

2025

(Dollars in thousands, except per share amounts)

Stockholders' equity

3,348,829

3,410,146

3,553,326

3,541,277

3,466,739

Less: Preferred stock

498,516

Total common equity

2,850,313

2,911,630

3,054,810

3,042,761

2,968,223

Less: Goodwill and intangible assets

301,042

307,230

313,612

319,808

326,444

Tangible common equity

2,549,271

2,604,400

2,741,198

2,722,953

2,641,779

Book value per common share (1)

17.99

18.38

19.80

19.56

19.09

Tangible book value per common share (2)

16.09

16.44

17.77

17.51

16.99

Common shares outstanding (3)

158,459,635

158,432,520

154,262,045

155,533,403

155,522,693

______________

(1)

Total common equity divided by common shares outstanding.

(2)

Tangible common equity divided by common shares outstanding.

(3)

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Nine Months Ended

Return on Average Tangible

September 30,

June 30,

September 30,

Common Equity ("ROATCE")

2026

2025

2026

2025

(Dollars in thousands)

Net earnings (loss)

83,057

(241,347

)

69,629

(86,338

)

151,582

Adjustments:

Intangible asset amortization

6,188

6,349

7,160

18,885

21,479

Tax impact of adjustment above (1)

(1,431

)

(1,778

)

(1,958

)

(6,481

)

(5,872

)

Adjustment to net earnings (loss)

4,757

4,571

5,202

12,404

15,607

Adjusted net earnings (loss) for ROATCE

87,814

(236,776

)

74,831

(73,934

)

167,189

Less: Preferred stock dividends

9,947

29,841

Adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE

77,867

(246,723

)

64,884

(103,775

)

137,348

Average stockholders' equity

3,392,012

3,545,141

3,437,335

3,494,710

3,463,568

Less: Average goodwill and intangible assets

304,652

311,068

330,277

310,932

337,361

Less: Average preferred stock

498,516

Average tangible common equity

2,588,844

2,735,557

2,608,542

2,685,262

2,627,691

Return on average equity (2)

9.71

(27.31

8.04

(3.30

5.85

ROATCE (3)

11.93

(36.18

9.87

(5.17

6.99

______________

(1)

Effective tax rates of 23.12%, 28.00%, and 27.34% used for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. Effective tax rates of 34.32% and 27.34% used for the nine months ended September 30, 2026 and 2025.

(2)

Annualized net earnings (loss) divided by average stockholders' equity.

(3)

Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

Pre-Tax Pre-Provision Income (Loss)

2026

2025

2026

2025

(Dollars in thousands)

Net interest income (GAAP)

272,442

250,501

253,444

774,560

726,024

Add: Noninterest income (loss) (GAAP)

31,356

(234,096

)

34,285

(167,412

)

100,568

Total revenues (GAAP)

303,798

16,405

287,729

607,148

826,592

Less: Noninterest expense (GAAP)

185,370

189,867

185,684

556,628

555,206

Pre-tax pre-provision income (loss) (Non-GAAP)

118,428

(173,462

)

102,045

50,520

271,386

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

Efficiency Ratio

2026

2025

2026

2025

(Dollars in thousands)

Noninterest expense

185,370

189,867

185,684

556,628

555,206

Less: Intangible asset amortization

(6,188

)

(6,349

)

(7,160

)

(18,885

)

(21,479

)

Noninterest expense used for efficiency ratio

179,182

183,518

178,524

537,743

533,727

Net interest income

272,442

250,501

253,444

774,560

726,024

Noninterest income (loss)

31,356

(234,096

)

34,285

(167,412

)

100,568

Total revenue

303,798

16,405

287,729

607,148

826,592

Add: (Gain) loss on securities AFS

(728

)

256,749

—

256,021

—

Total revenue used for efficiency ratio

303,070

273,154

287,729

863,169

826,592

Noninterest expense to total revenue

61.02

1157.37

64.53

91.68

67.17

Efficiency ratio (1)

59.12

67.18

62.05

62.30

64.57

______________

(1)

Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.