8-K - BANC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2024

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-35522	04-3639825
(State or other jurisdiction<br><br> <br>of incorporation)	(Commission File Number)	(IRS Employer<br><br> <br>Identification No.)
11611 San Vicente Boulevard,<br> Suite 500
---	---
Los Angeles, California	90049
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (855) 361-2262

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br> <br>Symbol(s)	Name of each exchange<br><br> <br>on which registered
Common Stock, par value $0.01 per share	BANC	New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series F	BANC/PF	New York Stock Exchange

Item 2.02	Results of Operations and Financial Condition.

On July 23, 2024, Banc of California, Inc. (the “Company”) issued a press release announcing 2024 second quarter financial results.

A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.

Item 7.01	Regulation FD Disclosure.

The Company will host a conference call to discuss its second quarter results at 10:00 A.M. Pacific Time on Tuesday, July 23, 2024. Interested parties may attend the conference call by dialing (888)

      317-6003 and referencing event code 3283432. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor,
    in addition to the slide presentation for investor review prior to the call. A copy of the presentation materials is furnished herewith as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01	Financial Statements and Exhibits.

(d) Exhibits.

99.1	Banc of California, Inc. Press Release dated July 23, 2024.
99.2	Banc of California, Inc. Earnings Conference Call Presentation Materials.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BANC OF CALIFORNIA, INC.
July 23, 2024	/s/ Joseph Kauder
	Joseph Kauder
	Executive Vice President and Chief Financial Officer

Exhibit 99.1

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

Company Release - 7/23/2024

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

Second quarter highlights include:

•	Average noninterest-bearing deposits higher by $196.5 million, or 3%, in the second quarter.
•	Net interest margin of 2.80%, an increase of 14 basis points from 2.66% in the first quarter.
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•	Average total cost of deposits decreased by 6 basis points to 2.60% for the second quarter compared to 2.66% in the first quarter and average total cost of funds decreased by 7 basis points to 2.95% for the second<br> quarter compared to 3.02% in the first quarter.
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•	High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $16.9 billion at June 30,<br> 2024, which was 2.5 times greater than uninsured and uncollateralized deposits.
---	---
•	Transferred $1.95 billion of CIVIC business-purpose residential loans with a fair value of $1.91 billion to held for sale at June 30, 2024. Sale closed on July 18, 2024, resulting in immediate increases in<br> liquidity and capital ratios.
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•	Nonperforming assets decreased to 0.37% of total assets at June 30, 2024, compared to 0.44% at March 31, 2024, primarily due to the loans transferred to held for sale.
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•	Strong capital ratios well above the regulatory thresholds for "well capitalized" banks at June 30, 2024, including an estimated 16.57% Total risk-based capital ratio, 12.62% Tier 1 capital ratio, 10.27% CET1 capital ratio, and 9.51% Tier 1 leverage ratio.
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•	Book value per share increased to $17.23 and tangible book value per share^(1)^<br> increased to $15.07.
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•	Successful core systems conversion completed on July 21, 2024.
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^(1)^	Non-GAAP measure; refer to section 'Non-GAAP Measures'
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1
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Subsequent to quarter-end, Banc of California closed on the sale of $1.95 billion of CIVIC loans which had been moved to held for sale during the second quarter. The loan sale generated net proceeds of $1.91 billion and is expected to increase our CET 1 capital ratio by more than 30 basis points. We intend to use the proceeds primarily to pay down higher-cost brokered deposits and borrowings.

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

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

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

2

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
Summary Income Statement	2024			2024			2023			2024			2023
	(In thousands)
Total interest income	$	462,589		$	478,704		$	539,888		$	941,293		$	1,057,676
Total interest expense		233,101			249,602			353,812			482,703			592,328
Net interest income		229,488			229,102			186,076			458,590			465,348
Provision for credit losses		11,000			10,000			2,000			21,000			5,000
Gain (loss) on sale of loans		1,135			(448	)		(158,881	)		687			(155,919	)
Other noninterest income		28,657			34,264			30,799			62,921			64,228
Total noninterest income (loss)		29,792			33,816			(128,082	)		63,608			(91,691	)
Total revenue		259,280			262,918			57,994			522,198			373,657
Goodwill impairment		-			-			-			-			1,376,736
Acquisition, integration and reorganization costs		(12,650	)		-			12,394			(12,650	)		20,908
Other noninterest expense		216,293			210,518			308,043			426,811			495,796
Total noninterest expense		203,643			210,518			320,437			414,161			1,893,440
Earnings (loss) before income taxes		44,637			42,400			(264,443	)		87,037			(1,524,783	)
Income tax expense (benefit)		14,304			11,548			(67,029	)		25,852			(131,945	)
Net earnings (loss)		30,333			30,852			(197,414	)		61,185			(1,392,838	)
Preferred stock dividends		9,947			9,947			9,947			19,894			19,894
Net earnings (loss) available to common and equivalent stockholders	$	20,386		$	20,905		$	(207,361	)	$	41,291		$	(1,412,732	)

Net Interest Income

Q2-2024 vs Q1-2024

Net interest income increased by $0.4 million to $229.5

      million for the second quarter from $229.1 million for the first quarter due to lower interest expense on interest-bearing liabilities, offset partially
      by lower interest income on interest-earning assets.

Average interest-earning assets decreased by $1.7 billion to $32.9 billion for the second quarter due to lower cash balances which were used to pay down deposits and borrowings. The net interest margin increased by 14 basis points to 2.80% for the second quarter compared to 2.66% for the first quarter due to the average yield on interest-earning assets increasing by 9 basis points, while the average total cost of funds decreased by 7 basis points, which was positively impacted by an increase in average noninterest-bearing deposits.

The average yield on interest-earning assets increased by 9 basis points to 5.65% for the second quarter from 5.56% in the first quarter due mainly to the increase in the average yield on loans and leases.

The average yield on loans and leases increased by 10 basis points to 6.18% for the second quarter from 6.08% for the first quarter as a result of new originations being at rates higher than the existing portfolio and the change in the mix of loan product balances.

3

The average total cost of funds decreased by 7 basis points to 2.95% for the second quarter from 3.02% in the first quarter due mainly to decreases in interest-bearing deposits combined with an increase in average noninterest-bearing deposits. The average cost of interest-bearing liabilities increased by 1 basis point to 3.93% for the second quarter from 3.92% in the first quarter. The average total cost of deposits decreased by 6 basis points to 2.60% for the second quarter compared to 2.66% in the first quarter. Average noninterest-bearing deposits increased by $196.6 million for the second quarter compared to the first quarter and average total deposits decreased by $655.5 million.

YTD June 30, 2024 vs YTD June 30, 2023

Net interest income decreased by $6.8 million to $458.6

      million for the six months ended June 30, 2024 from $465.3 million for the six months ended June 30, 2023 due to lower interest income on lower
      interest-earning assets and higher interest expense on deposits, offset partially by lower interest expense on borrowings.

Average interest-earning assets decreased by $6.5 billion to $33.8 billion for the first six months of 2024 due to sales of non-core loan portfolios in the second quarter of 2023 offset partially by the fourth quarter of 2023 acquisition of legacy Banc of California loans, fourth quarter of 2023 securities sales, and lower cash balances which were used to pay down higher-cost borrowings. The net interest margin increased by 39 basis points to 2.73% for the six months ended June 30, 2024 compared to 2.34% for the same period in 2023 due to the average yield on interest-earning assets increasing by 29 basis points, while the average total cost of funds decreased by 8 basis points.

The average yield on interest-earning assets increased by 29 basis points to 5.60% for the first six months of 2024 from 5.31% for the same period in 2023 due mainly to the change in the interest-earning asset mix. This was driven by the increase in the balance of average loans and leases as a percentage of average interest-earning assets to 75% for the six months ended June 30, 2024 from 69% for the six months ended June 30, 2023, the decrease in the balance of average investment securities as a percentage of average interest-earning assets to 14% for the first six months of 2024 from 18% for comparable period in 2023, and the decrease in the balance of average deposits in financial institutions as a percentage of average interest-earning assets to 11% for the six months ended June 30, 2024 from 13% for the same period in 2023.

The average yield on loans and leases increased by 2 basis points to 6.13% for the first six months of 2024 from 6.11% for the same period in 2023 as a result of changes in portfolio mix and higher net accretion of loan discounts/premiums.

The average total cost of funds decreased by 8 basis points to 2.99% for the six months ended June 30, 2024 from 3.07% for the six months ended June 30, 2023 due mainly to changes in the total funds mix. This was driven by the increase in the balance of lower cost average total deposits as a percentage of average total funds to 90% for the first six months of 2024 from 76% for the comparable period in 2023, and the decrease in the balance of higher cost average borrowings as a percentage of average total funds to 8% for the six months ended June 30, 2024 from 22% for the same period in 2023. The average cost of interest-bearing liabilities increased by 6 basis points to 3.93% for the first six months of 2024 from 3.87% for the comparable period in 2023. The average total cost of deposits increased by 36 basis points to 2.63% for the six months ended June 30, 2024 compared to 2.27% for the six months ended June 30, 2023. Average noninterest-bearing deposits decreased by $305.9 million for the first six months of 2024 compared to the same period in 2023 and average total deposits decreased by $545.6 million.

4

Provision For Credit Losses

Q2-2024 vs Q1-2024

The provision for credit losses was $11.0 million for the second quarter compared to $10.0 million for the first quarter. The $11.0 million second quarter provision was driven by higher net charge-offs and higher qualitative reserves for office loans and other concentrations of credit, offset partially by the reserves released for the CIVIC loans transferred to held for sale. The $10.0 million first quarter provision was driven by an increase in qualitative reserves related to loans secured by office properties and an increase in quantitative reserves due to an increase in nonaccrual and classified loans and leases.

YTD June 30, 2024 vs YTD June 30, 2023

The provision for credit losses increased by $16.0 million to $21.0 million for the six months ended June 30, 2024 compared to $5.0 million for the six months ended June 30, 2023. The higher provision in the 2024 period was generally due to higher net charge-offs and higher qualitative reserves, offset partially by the reserves released for the CIVIC loans transferred to held for sale.

Noninterest Income

Q2-2024 vs Q1-2024

Noninterest income decreased by $4.0 million to $29.8 million for the second quarter due mainly to a decrease of $2.9 million in other income (negative fair value mark on credit-linked notes) and a decrease of $1.9 million in dividends and gains on equity investments (negative fair value mark on Small Business Investment Company (“SBIC”) investments partially offset by higher income distributions from SBIC investments), offset partially by an increase of $1.6 million in gain on sale of loans.

YTD June 30, 2024 vs YTD June 30, 2023

Noninterest income increased by $155.3 million to $63.6 million for the six months ended June 30, 2024 due almost entirely to a decrease in the loss on sale of loans and leases of $156.6 million. The Company sold $529.6 million of loans for a net gain of $0.7 million in the six months ended June 30, 2024 and $5.4 billion of loans for a net loss of $155.9 million in the six months ended June 30, 2023.

Noninterest Expense

Q2-2024 vs Q1-2024

Noninterest expense decreased by $6.9 million to $203.6 million for the second quarter due mainly to decreases of $12.7 million in acquisition, integration and reorganization costs and $6.3 million in compensation expense, offset partially by increases of $6.0 million in insurance and assessments expense and $5.1 million in other expense. The decrease in acquisition, integration and reorganization costs was due to actual amounts for certain expenses being lower than the estimated amounts accrued at merger close. The decrease in compensation expense was mostly due to a lower headcount. The increase in insurance and assessments expense was due to higher assessment rates for both the regular FDIC assessment and the special assessment. The increase in other expense was mostly due to a repurchase reserve recorded for standard representations and warranties associated with the CIVIC loan sale.

5

YTD June 30, 2024 vs YTD June 30, 2023

Noninterest expense decreased by $1.5 billion to $414.2

      million for the six-month period ended June 30, 2024 due mainly to a $1.4 billion goodwill impairment recorded in the same period in 2023.

Income Taxes

Q2-2024 vs Q1-2024

Income tax expense of $14.3 million was recorded for the second quarter resulting in an effective tax rate of 32.0% compared to tax expense of $11.5 million for the first quarter and an effective tax rate of 27.2%. The increase is due primarily to an increase in disallowed executive compensation expense and a higher shortfall on equity compensation expense from second quarter restricted stock vesting.

YTD June 30, 2024 vs YTD June 30, 2023

Income tax expense of $25.9 million was recorded for the six-month period ended June 30, 2024 resulting in an effective tax rate of 29.7% compared to a benefit of $131.9 million for the same period in 2023 and an effective tax rate of 8.7%. Excluding goodwill impairment, the effective tax rate for the six-month period in 2023 was 22.7%. The increase is primarily due to a higher shortfall on equity compensation expense from restricted stock vesting in the second quarter of 2024.

BALANCE SHEET HIGHLIGHTS

	June 30,		March 31,		June 30,		Increase (Decrease)
Selected Balance Sheet Items	2024		2024		2023		QoQ			YoY
	(In thousands)
Cash and cash equivalents	$	2,698,810	$	3,085,228	$	6,698,147	$	(386,418	)	$	(3,999,337	)
Securities available-for-sale		2,244,031		2,286,682		4,708,519		(42,651	)		(2,464,488	)
Securities held-to-maturity		2,296,708		2,291,984		2,278,202		4,724			18,506
Loans held for sale		1,935,455		80,752		478,146		1,854,703			1,457,309
Loan and leases held for investment, net of deferred fees		23,228,909		25,473,022		22,258,210		(2,244,113	)		970,699
Total assets		35,243,839		36,073,516		38,337,250		(829,677	)		(3,093,411	)
Noninterest-bearing deposits	$	7,825,007	$	7,833,608	$	6,055,358	$	(8,601	)	$	1,769,649
Total deposits		28,804,450		28,892,407		27,897,083		(87,957	)		907,367
Borrowings		1,440,875		2,139,498		6,357,338		(698,623	)		(4,916,463	)
Total liabilities		31,835,991		32,679,366		35,804,055		(843,375	)		(3,968,064	)
Total stockholders' equity		3,407,848		3,394,150		2,533,195		13,698			874,653

Securities

The balance of securities held-to-maturity (“HTM”) remained consistent through the second quarter and totaled $2.3 billion at June 30, 2024. As of June 30, 2024, HTM securities had aggregate unrealized net after-tax losses in AOCI of $169.8 million remaining from the balance established at the time of transfer on June 1, 2022.

Securities available-for-sale (“AFS”) decreased by $42.7 million during the second quarter to $2.2 billion at June 30, 2024. AFS securities had aggregate unrealized net after-tax losses in AOCI of $264.8 million. These AFS unrealized net losses related primarily to changes in overall interest rates and spreads and the resulting impact on valuations.

6

Loans and Leases

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

	June 30,		March 31,		December 31,		September 30,		June 30,
Composition of Loans and Leases	2024		2024		2023		2023		2023
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	4,722,585	$	4,896,544	$	5,026,497	$	3,526,308	$	3,610,320
Multi-family		5,984,930		6,121,472		6,025,179		5,279,659		5,304,544
Other residential		2,866,085		4,949,383		5,060,309		5,228,524		5,373,178
Total real estate mortgage		13,573,600		15,967,399		16,111,985		14,034,491		14,288,042
Real estate construction and land:
Commercial		784,166		775,021		759,585		465,266		415,997
Residential		2,573,431		2,470,333		2,399,684		2,272,271		2,049,526
Total real estate construction and land		3,357,597		3,245,354		3,159,269		2,737,537		2,465,523
Total real estate		16,931,197		19,212,753		19,271,254		16,772,028		16,753,565
Commercial:
Asset-based		1,968,713		2,061,016		2,189,085		2,287,893		2,357,098
Venture capital		1,456,122		1,513,641		1,446,362		1,464,160		1,723,476
Other commercial		2,446,974		2,245,910		2,129,860		1,002,377		1,014,212
Total commercial		5,871,809		5,820,567		5,765,307		4,754,430		5,094,786
Consumer		425,903		439,702		453,126		394,488		409,859
Total loans and leases held for investment, net of deferred fees	$	23,228,909	$	25,473,022	$	25,489,687	$	21,920,946	$	22,258,210
Total unfunded loan commitments	$	5,256,473	$	5,482,672	$	5,578,907	$	5,289,221	$	5,845,375
Composition as % of Total	June 30,			March 31,			December 31,			September 30,			June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Loans and Leases	2024			2024			2023			2023			2023
Real estate mortgage:
Commercial		20	%		19	%		20	%		16	%		16	%
Multi-family		26	%		24	%		23	%		24	%		24	%
Other residential		12	%		19	%		20	%		24	%		24	%
Total real estate mortgage		58	%		62	%		63	%		64	%		64	%
Real estate construction and land:
Commercial		4	%		3	%		3	%		2	%		2	%
Residential		11	%		10	%		9	%		10	%		9	%
Total real estate construction and land		15	%		13	%		12	%		12	%		11	%
Total real estate		73	%		75	%		75	%		76	%		75	%
Commercial:
Asset-based		8	%		8	%		9	%		10	%		11	%
Venture capital		6	%		6	%		6	%		7	%		8	%
Other commercial		11	%		9	%		8	%		5	%		4	%
Total commercial		25	%		23	%		23	%		22	%		23	%
Consumer		2	%		2	%		2	%		2	%		2	%
Total loans and leases held for investment, net of deferred fees		100	%		100	%		100	%		100	%		100	%
7
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Total loans and leases held for investment, net of deferred fees, decreased by $2.2 billion in the second quarter and totaled $23.2 billion at June 30, 2024. The decrease in loans and leases held for investment was primarily due to $1.9 billion of CIVIC loans transferred to held for sale in the second quarter. Loan fundings were $382.5 million in the second quarter at a weighted-average interest rate of 7.80%.

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,
Composition of Deposits	2024		2024		2023		2023		2023
	(Dollars in thousands)
Noninterest-bearing checking	$	7,825,007	$	7,833,608	$	7,774,254	$	5,579,033	$	6,055,358
Interest-bearing:
Checking		7,309,833		7,836,097		7,808,764		7,038,808		7,112,807
Money market		4,837,025		5,020,110		6,187,889		5,424,347		5,678,323
Savings		2,040,461		2,016,398		1,997,989		1,441,700		897,277
Time deposits:
Non-brokered		2,758,067		2,761,836		3,139,270		3,038,005		2,725,265
Brokered		4,034,057		3,424,358		3,493,603		4,076,788		5,428,053
Total time deposits		6,792,124		6,186,194		6,632,873		7,114,793		8,153,318
Total interest-bearing		20,979,443		21,058,799		22,627,515		21,019,648		21,841,725
Total deposits	$	28,804,450	$	28,892,407	$	30,401,769	$	26,598,681	$	27,897,083
	June 30,			March 31,			December 31,			September 30,			June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Composition as % of Total Deposits	2024			2024			2023			2023			2023
Noninterest-bearing checking		27	%		27	%		26	%		21	%		22	%
Interest-bearing:
Checking		25	%		27	%		26	%		27	%		26	%
Money market		17	%		17	%		20	%		20	%		20	%
Savings		7	%		7	%		6	%		5	%		3	%
Time deposits:
Non-brokered		10	%		10	%		10	%		12	%		10	%
Brokered		14	%		12	%		12	%		15	%		19	%
Total time deposits		24	%		22	%		22	%		27	%		29	%
Total interest-bearing		73	%		73	%		74	%		79	%		78	%
Total deposits		100	%		100	%		100	%		100	%		100	%

Total deposits decreased by $88 million during the second quarter to $28.8 billion at June 30, 2024, due primarily to decreases of $526 million in interest checking accounts and $183 million in money market accounts, partially offset by an increase of $610 million in brokered time deposits.

Average noninterest-bearing checking totaled $7.88 billion and represented 27% of total average deposits in the second quarter, compared to 26% in the first quarter.

Uninsured and uncollateralized deposits of $6.8 billion represented 24% of total deposits at June 30, 2024, compared to uninsured and uncollateralized deposits of $7.1 billion or 24% of total deposits at March 31, 2024.

8

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These alternative options include investments managed by BofCal Asset Management Inc. (“BAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $1.2 billion as of June 30, 2024, of which $0.7 billion was managed by BAM.

Borrowings

Borrowings decreased by approximately $700 million from $2.1 billion at March 31, 2024, to $1.4 billion at June 30, 2024 due primarily to the $1.0 billion paydown of the Bank Term Funding Program balance, offset partially by an increase of $300 million in long-term FHLB borrowings.

Equity

During the second quarter, total stockholders’ equity increased by $13.7 million to $3.4 billion and tangible common equity^(1)^ increased by $4.7 million to $2.5 billion at June 30, 2024. The increase in total stockholders’ equity for the second quarter resulted primarily from net earnings in the second quarter, offset partially by dividends declared and paid.

At June 30, 2024, book value per common share increased to $17.23 compared to $17.13 at March 31, 2024, and tangible book value per common share^(1)^ increased to $15.07

        compared to $15.03 at March 31, 2024.

^(1)^	Non-GAAP measures; refer to section 'Non-GAAP Measures'
9
---

CAPITAL AND LIQUIDITY

Capital ratios remain strong with total risk-based capital at 16.57% and a tier 1 leverage ratio of 9.51% at June

      30, 2024.

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

	June 30,			March 31,			December 31,			September 30,			June 30,
Capital Ratios	2024 (1)			2024			2023			2023			2023
Banc of California, Inc.
Total risk-based capital ratio		16.57	%		16.40	%		16.43	%		17.83	%		17.61	%
Tier 1 risk-based capital ratio		12.62	%		12.38	%		12.44	%		13.84	%		13.70	%
Common equity tier 1 capital ratio		10.27	%		10.09	%		10.14	%		11.23	%		11.16	%
Tier 1 leverage capital ratio		9.51	%		9.12	%		9.00	%		8.65	%		7.76	%
Banc of California
Total risk-based capital ratio		16.19	%		15.88	%		15.75	%		16.37	%		16.07	%
Tier 1 risk-based capital ratio		13.77	%		13.34	%		13.27	%		13.72	%		13.48	%
Common equity tier 1 capital ratio		13.77	%		13.34	%		13.27	%		13.72	%		13.48	%
Tier 1 leverage capital ratio		10.38	%		9.84	%		9.62	%		8.57	%		7.62	%

(1)	Capital information for June 30, 2024 is preliminary.

At June 30, 2024, immediately available cash and cash equivalents were $2.5 billion, a decrease of $0.4 billion from March 31, 2024. Combined with total available borrowing capacity of $12.3 billion and unpledged AFS securities of $2.1 billion, total available liquidity was $16.9 billion at the end of the second quarter.

10

CREDIT QUALITY

	June 30,			March 31,			December 31,			September 30,			June 30,
Asset Quality Information and Ratios	2024			2024			2023			2023			2023
	(Dollars in thousands)
Delinquent loans and leases held for investment:
30 to 89 days delinquent	$	27,962		$	178,421		$	113,307		$	49,970		$	57,428
90+ days delinquent		55,792			57,573			30,881			77,327			62,322
Total delinquent loans and leases	$	83,754		$	235,994		$	144,188		$	127,297		$	119,750
Total delinquent loans and leases to loans and leases held for investment		0.36	%		0.93	%		0.57	%		0.58	%		0.54	%
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases	$	117,070		$	145,785		$	62,527		$	125,396		$	104,886
90+ days delinquent loans and still accruing		-			-			11,750			-			-
Total nonperforming loans and leases ("NPLs")		117,070			145,785			74,277			125,396			104,886
Foreclosed assets, net		13,302			12,488			7,394			6,829			8,426
Total nonperforming assets ("NPAs")	$	130,372		$	158,273		$	81,671		$	132,225		$	113,312
Allowance for loan and lease losses	$	247,762		$	291,503		$	281,687		$	222,297		$	219,234
Allowance for loan and lease losses to NPLs		211.64	%		199.95	%		379.24	%		177.28	%		209.02	%
NPLs to loans and leases held for
investment		0.50	%		0.57	%		0.29	%		0.57	%		0.47	%
NPAs to total assets		0.37	%		0.44	%		0.21	%		0.36	%		0.30	%

At June 30, 2024, total delinquent loans and leases were $83.8 million, compared to $236.0 million at March 31, 2024. The $152.2 million decrease in total delinquent loans was due in part to the CIVIC loans transferred to held for sale and included decreases in the 30 to 89 days delinquent category of $69.0 million in commercial real estate mortgage loans, $55.0 million in other residential loans, $11.7 million in asset-based loans, and $8.8 million in multi-family loans. In the 90 or more days delinquent category, there was a $20.3 million decrease in other residential loans that was more than offset by a $21.6 million increase in commercial real estate loans. Total delinquent loans and leases as a percentage of total loans and leases decreased to 0.36% at June 30, 2024, as compared to 0.93% at March 31, 2024.

At June 30, 2024, nonperforming assets were $130.4 million, or 0.37% of total assets, compared to $158.3 million, or 0.44% of total assets, as of March 31, 2024. At June 30, 2024, nonperforming assets included $13.3 million of other real estate owned, consisting entirely of single-family residences.

At June 30, 2024, nonperforming loans were $117.1 million, compared to $145.8 million at March 31, 2024. During the second quarter, nonperforming loans decreased by $28.7 million due to borrowers that became current of $1.3 million, payoffs and paydowns of $24.1 million, net charge-offs of $12.2 million, and transfers to held for sale of $19.5 million, offset partially by additions of $28.3 million.

Nonperforming loans and leases as a percentage of loans and leases held for investment decreased to 0.50% at June 30, 2024 compared to 0.57% at March 31, 2024.

11

ALLOWANCE FOR CREDIT LOSSES - LOANS

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
Allowance for Credit Losses - Loans	2024			2024			2023			2024			2023
	(Dollars in thousands)
Allowance for loan and lease losses
("ALLL"):
Balance at beginning of period	$	291,503		$	281,687		$	210,055		$	281,687		$	200,732
Charge-offs		(58,070	)		(5,014	)		(31,708	)		(63,084	)		(42,105	)
Recoveries		2,329			3,830			887			6,159			2,107
Net charge-offs		(55,741	)		(1,184	)		(30,821	)		(56,925	)		(39,998	)
Provision for loan losses		12,000			11,000			40,000			23,000			58,500
Balance at end of period	$	247,762		$	291,503		$	219,234		$	247,762		$	219,234
Reserve for unfunded loan commitments
("RUC"):
Balance at beginning of period	$	28,571		$	29,571		$	75,571		$	29,571		$	91,071
(Negative provision) provision for credit losses		(1,000	)		(1,000	)		(38,000	)		(2,000	)		(53,500	)
Balance at end of period	$	27,571		$	28,571		$	37,571		$	27,571		$	37,571
Allowance for credit losses ("ACL") -
Loans:
Balance at beginning of period	$	320,074		$	311,258		$	285,626		$	311,258		$	291,803
Charge-offs		(58,070	)		(5,014	)		(31,708	)		(63,084	)		(42,105	)
Recoveries		2,329			3,830			887			6,159			2,107
Net charge-offs		(55,741	)		(1,184	)		(30,821	)		(56,925	)		(39,998	)
Provision for credit losses		11,000			10,000			2,000			21,000			5,000
Balance at end of period	$	275,333		$	320,074		$	256,805		$	275,333		$	256,805
ALLL to loans and leases held for investment		1.07	%		1.14	%		0.98	%		1.07	%		0.98	%
ACL to loans and leases held for investment		1.19	%		1.26	%		1.15	%		1.19	%		1.15	%
ACL to NPLs		235.19	%		219.55	%		244.84	%		235.19	%		244.84	%
ACL to NPAs		211.19	%		202.23	%		226.64	%		211.19	%		226.64	%
Annualized net charge-offs to average loans and leases		0.89	%		0.02	%		0.46	%		0.45	%		0.29	%

The allowance for credit losses, which includes the reserve for unfunded loan commitments, totaled $275.3 million, or 1.19% of total loans and leases, at June 30, 2024, compared to $320.1 million, or 1.26% of total loans and leases, at March 31, 2024. The $44.7 million decrease in the allowance was due to net charge-offs of $55.7 million, offset partially by the $11.0 million provision. The total net charge-offs of $55.7 million included $28.7 million of CIVIC charge-offs as a result of the related $1.9 billion CIVIC loans reclassified to held for sale. The ACL coverage of nonperforming loans was 235% at June 30, 2024 compared to 220% at March 31, 2024.

Net charge-offs were 0.89% of average loans and leases (annualized) for the second quarter, compared to 0.02% for the first quarter. The increase in net charge-offs in the second quarter was attributable primarily to $28.7 million of CIVIC charge-offs and two large charge-offs of commercial real estate loans secured by office properties.

12

Conference Call

The Company will host a conference call to discuss its second quarter 2024 financial results at 10:00 a.m. Pacific Time (PT) on Tuesday, July 23, 2024. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 3283432. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (877) 344-7529 and referencing event code 1656401.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $35 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 third largest bank headquartered in California and offers a broad range of loan and deposit products and services through more than 90 full-service branches throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (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.

13

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

14

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.

15

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
	(Dollars in thousands)
ASSETS:
Cash and due from banks	$	203,467		$	199,922		$	202,427		$	182,261		$	208,300
Interest-earning deposits in financial institutions		2,495,343			2,885,306			5,175,149			5,887,406			6,489,847
Total cash and cash equivalents		2,698,810			3,085,228			5,377,576			6,069,667			6,698,147
Securities available-for-sale		2,244,031			2,286,682			2,346,864			4,487,172			4,708,519
Securities held-to-maturity		2,296,708			2,291,984			2,287,291			2,282,586			2,278,202
FRB and FHLB stock		132,380			129,314			126,346			17,250			17,250
Total investment securities		4,673,119			4,707,980			4,760,501			6,787,008			7,003,971
Loans held for sale		1,935,455			80,752			122,757			188,866			478,146
Gross loans and leases held for investment		23,255,297			25,517,028			25,534,730			21,969,789			22,311,292
Deferred fees, net		(26,388	)		(44,006	)		(45,043	)		(48,843	)		(53,082	)
Total loans and leases held for investment, net of deferred fees		23,228,909			25,473,022			25,489,687			21,920,946			22,258,210
Allowance for loan and lease losses		(247,762	)		(291,503	)		(281,687	)		(222,297	)		(219,234	)
Total loans and leases held for investment, net		22,981,147			25,181,519			25,208,000			21,698,649			22,038,976
Equipment leased to others under operating leases		335,968			339,925			344,325			352,330			380,022
Premises and equipment, net		145,734			144,912			146,798			50,236			57,078
Bank owned life insurance		341,779			341,806			339,643			207,946			206,812
Goodwill		215,925			198,627			198,627			-			-
Intangible assets, net		148,894			157,226			165,477			24,192			26,581
Deferred tax asset, net		738,534			741,158			739,111			506,248			426,304
Other assets		1,028,474			1,094,383			1,131,249			992,691			1,021,213
Total assets	$	35,243,839		$	36,073,516		$	38,534,064		$	36,877,833		$	38,337,250
LIABILITIES:
Noninterest-bearing deposits	$	7,825,007		$	7,833,608		$	7,774,254		$	5,579,033		$	6,055,358
Interest-bearing deposits		20,979,443			21,058,799			22,627,515			21,019,648			21,841,725
Total deposits		28,804,450			28,892,407			30,401,769			26,598,681			27,897,083
Borrowings		1,440,875			2,139,498			2,911,322			6,294,525			6,357,338
Subordinated debt		939,287			937,717			936,599			870,896			870,378
Accrued interest payable and other liabilities		651,379			709,744			893,609			714,454			679,256
Total liabilities		31,835,991			32,679,366			35,143,299			34,478,556			35,804,055
STOCKHOLDERS' EQUITY:
Preferred stock		498,516			498,516			498,516			498,516			498,516
Common stock		1,583			1,583			1,577			1,231			1,233
Class B non-voting common stock		5			5			5			-			-
Non-voting common stock equivalents		101			101			108			-			-
Additional paid-in-capital		3,813,312			3,827,777			3,840,974			2,798,611			2,799,357
Retained (deficit) earnings		(477,010	)		(497,396	)		(518,301	)		(25,399	)		7,892
Accumulated other comprehensive loss, net		(428,659	)		(436,436	)		(432,114	)		(873,682	)		(773,803	)
Total stockholders’ equity		3,407,848			3,394,150			3,390,765			2,399,277			2,533,195
Total liabilities and stockholders’ equity	$	35,243,839		$	36,073,516		$	38,534,064		$	36,877,833		$	38,337,250
Common shares outstanding (1)		168,875,712			169,013,629			168,959,063			78,806,969			78,939,024

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

16

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2024			2024			2023			2024			2023
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	388,853		$	385,465		$	408,972		$	774,318		$	839,657
Investment securities		33,836			34,303			44,153			68,139			88,390
Deposits in financial institutions		39,900			58,936			86,763			98,836			129,629
Total interest income		462,589			478,704			539,888			941,293			1,057,676
Interest expense:
Deposits		186,106			194,807			178,789			380,913			334,681
Borrowings		30,311			38,124			160,914			68,435			230,036
Subordinated debt		16,684			16,671			14,109			33,355			27,611
Total interest expense		233,101			249,602			353,812			482,703			592,328
Net interest income		229,488			229,102			186,076			458,590			465,348
Provision for credit losses		11,000			10,000			2,000			21,000			5,000
Net interest income after provision for credit losses		218,488			219,102			184,076			437,590			460,348
Noninterest income:
Service charges on deposit accounts		4,540			4,705			4,315			9,245			7,888
Other commissions and fees		8,629			8,142			11,241			16,771			21,585
Leased equipment income		11,487			11,716			22,387			23,203			36,244
Gain (loss) on sale of loans and leases		1,135			(448	)		(158,881	)		687			(155,919	)
Dividends and gains on equity investments		1,166			3,068			2,658			4,234			3,756
Warrant (loss) income		(324	)		178			(124	)		(146	)		(457	)
LOCOM HFS adjustment		(38	)		330			(11,943	)		292			(11,943	)
Other income		3,197			6,125			2,265			9,322			7,155
Total noninterest income (loss)		29,792			33,816			(128,082	)		63,608			(91,691	)
Noninterest expense:
Compensation		85,914			92,236			82,881			178,150			171,357
Occupancy		17,455			17,968			15,383			35,423			30,450
Information technology and data processing		15,459			15,418			12,887			30,877			25,866
Other professional services		5,183			5,075			9,973			10,258			16,046
Insurance and assessments		26,431			20,461			25,635			46,892			37,352
Intangible asset amortization		8,484			8,404			2,389			16,888			4,800
Leased equipment depreciation		7,511			7,520			9,088			15,031			18,463
Acquisition, integration and reorganization costs		(12,650	)		-			12,394			(12,650	)		20,908
Customer related expense		32,405			30,919			27,302			63,324			51,307
Loan expense		4,332			4,491			5,245			8,823			11,769
Goodwill impairment		-			-			-			-			1,376,736
Other expense		13,119			8,026			117,260			21,145			128,386
Total noninterest expense		203,643			210,518			320,437			414,161			1,893,440
Earnings (loss) before income taxes		44,637			42,400			(264,443	)		87,037			(1,524,783	)
Income tax expense (benefit)		14,304			11,548			(67,029	)		25,852			(131,945	)
Net earnings (loss)		30,333			30,852			(197,414	)		61,185			(1,392,838	)
Preferred stock dividends		9,947			9,947			9,947			19,894			19,894
Net earnings (loss) available to common and equivalent stockholders	$	20,386		$	20,905		$	(207,361	)	$	41,291		$	(1,412,732	)
Basic and diluted earnings (loss) percommon share (1)	$	0.12		$	0.12		$	(2.67	)	$	0.25		$	(18.21	)
Basic and diluted weighted average number of common shares outstanding (1)		168,432			168,143			77,682			168,287			77,576

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

17

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	2024			2024			2023			2024			2023
Return on average assets (1)		0.34	%		0.33	%		(1.84	)%		0.34	%		(6.55	)%
Return on average equity (1)		3.59	%		3.66	%		(29.12	)%		3.63	%		(83.71	)%
Return on average tangible common equity (1)(2)		4.14	%		4.30	%		(37.62	)%		4.21	%		(11.00	)%
Dividend payout ratio (3)		83.33	%		83.33	%		(0.37	)%		80.00	%		(1.43	)%
Average yield on loans and leases (1)		6.18	%		6.08	%		6.08	%		6.13	%		6.11	%
Average yield on interest-earning assets (1)		5.65	%		5.56	%		5.28	%		5.60	%		5.31	%
Average cost of interest-bearing deposits (1)		3.58	%		3.60	%		3.35	%		3.59	%		3.13	%
Average total cost of deposits (1)		2.60	%		2.66	%		2.62	%		2.63	%		2.27	%
Average cost of interest-bearing liabilities (1)		3.93	%		3.92	%		4.21	%		3.93	%		3.87	%
Average total cost of funds (1)		2.95	%		3.02	%		3.58	%		2.99	%		3.07	%
Net interest spread		1.72	%		1.64	%		1.07	%		1.67	%		1.44	%
Net interest margin (1)		2.80	%		2.66	%		1.82	%		2.73	%		2.34	%
Noninterest income to total revenue (4)		11.49	%		12.86	%		(220.85	)%		12.18	%		(24.54	)%
Noninterest expense to average total assets (1)		2.29	%		2.26	%		2.99	%		2.27	%		8.90	%
Loans to deposits ratio		87.36	%		88.44	%		81.50	%		87.36	%		81.50	%
Average loans and leases to average deposits		87.95	%		86.65	%		98.56	%		87.29	%		93.65	%
Average investment securities to average
total assets		13.00	%		12.58	%		16.69	%		12.78	%		16.75	%
Average stockholders' equity to average
total assets		9.48	%		9.03	%		6.32	%		9.25	%		7.82	%

(1)	Annualized.
(2)	Non-GAAP measure.
---	---
(3)	Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.
---	---
(4)	Total revenue equals the sum of net interest income and noninterest income.
---	---
18
---

BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

	Three Months Ended
	June 30, 2024							March 31, 2024							June 30, 2023
			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)	$	25,325,578	$	388,853		6.18	%	$	25,518,590	$	385,465		6.08	%	$	26,992,283	$	408,972		6.08	%
Investment securities		4,658,690		33,836		2.92	%		4,721,556		34,303		2.92	%		7,183,986		44,153		2.47	%
Deposits in financial institutions		2,960,292		39,900		5.42	%		4,374,968		58,936		5.42	%		6,835,075		86,763		5.09	%
Total interest-earning assets		32,944,560		462,589		5.65	%		34,615,114		478,704		5.56	%		41,011,344		539,888		5.28	%
Other assets		2,889,907							2,925,593							2,028,985
Total assets	$	35,834,467						$	37,540,707						$	43,040,329
Liabilities and
Stockholders' Equity:
Interest checking	$	7,673,902		61,076		3.20	%	$	7,883,177		61,549		3.14	%	$	6,601,034		46,798		2.84	%
Money market		4,962,567		32,776		2.66	%		5,737,837		41,351		2.90	%		6,590,615		47,008		2.86	%
Savings		2,002,670		16,996		3.41	%		2,036,129		18,030		3.56	%		733,818		3,678		2.01	%
Time		6,274,242		75,258		4.82	%		6,108,321		73,877		4.86	%		7,492,094		81,305		4.35	%
Total interest-bearing deposits		20,913,381		186,106		3.58	%		21,765,464		194,807		3.60	%		21,417,561		178,789		3.35	%
Borrowings		2,013,600		30,311		6.05	%		2,892,406		38,124		5.30	%		11,439,742		160,914		5.64	%
Subordinated debt		938,367		16,684		7.15	%		937,005		16,671		7.16	%		869,419		14,109		6.51	%
Total interest-bearing liabilities		23,865,348		233,101		3.93	%		25,594,875		249,602		3.92	%		33,726,722		353,812		4.21	%
Noninterest-bearing
demand deposits		7,881,620							7,685,027							5,968,625
Other liabilities		692,149							870,273							625,610
Total liabilities		32,439,117							34,150,175							40,320,957
Stockholders' equity		3,395,350							3,390,532							2,719,372
Total liabilities and stockholders' equity	$	35,834,467						$	37,540,707						$	43,040,329
Net interest income			$	229,488						$	229,102						$	186,076
Net interest spread						1.72	%						1.64	%						1.07	%
Net interest margin						2.80	%						2.66	%						1.82	%
Total deposits (2)	$	28,795,001	$	186,106		2.60	%	$	29,450,491	$	194,807		2.66	%	$	27,386,186	$	178,789		2.62	%
Total funds (3)	$	31,746,968	$	233,101		2.95	%	$	33,279,902	$	249,602		3.02	%	$	39,695,347	$	353,812		3.58	%
(1)	Includes net loan discount accretion of $21.8 million and $22.4 million for the three months ended June 30, 2024 and March 31, 2024 and net loan premium amortization of $1.6 million for the<br> three months ended June 30, 2023.
---	---
(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<br> 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<br> average total funds.
---	---
19
---

BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

	Six Months Ended
	June 30, 2024							June 30, 2023
			Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Cost			Balance		Expense		Cost
	(Dollars in thousands)
Assets:
Loans and
leases (1)(2)(3)	$	25,422,084	$	774,318		6.13	%	$	27,783,379	$	842,001		6.11	%
Investment securities		4,690,123		68,139		2.92	%		7,187,654		88,390		2.48	%
Deposits in financial institutions		3,667,630		98,836		5.42	%		5,267,361		129,629		4.96	%
Total interest-earning assets (1)		33,779,837		941,293		5.60	%		40,238,394		1,060,020		5.31	%
Other assets		2,907,750							2,666,878
Total assets	$	36,687,587						$	42,905,272
Liabilities and
Stockholders' Equity:
Interest checking	$	7,778,540		122,625		3.17	%	$	6,843,720		102,755		3.03	%
Money market		5,350,202		74,127		2.79	%		7,754,868		103,232		2.68	%
Savings		2,019,399		35,026		3.49	%		665,929		4,277		1.30	%
Time		6,191,281		149,135		4.84	%		6,314,566		124,417		3.97	%
Total interest-bearing deposits		21,339,422		380,913		3.59	%		21,579,083		334,681		3.13	%
Borrowings		2,453,003		68,435		5.61	%		8,381,575		230,036		5.53	%
Subordinated debt		937,686		33,355		7.15	%		868,533		27,611		6.41	%
Total interest-bearing liabilities		24,730,111		482,703		3.93	%		30,829,191		592,328		3.87	%
Noninterest-bearing demand deposits		7,783,324							8,089,248
Other liabilities		781,211							631,338
Total liabilities		33,294,646							39,549,777
Stockholders' equity		3,392,941							3,355,495
Total liabilities and stockholders' equity	$	36,687,587						$	42,905,272
Net interest income (1)			$	458,590						$	467,692
Net interest spread (1)						1.67	%						1.44	%
Net interest margin (1)						2.73	%						2.34	%
Total deposits (4)	$	29,122,746	$	380,913		2.63	%	$	29,668,331	$	334,681		2.27	%
Total funds (5)	$	32,513,435	$	482,703		2.99	%	$	38,918,439	$	592,328		3.07	%
(1)	Tax equivalent.
---	---
(2)	Includes net loan discount accretion of $44.3 million for the six months ended June 30, 2024 and net loan premium amortization of $4.4 million for the six months ended June 30, 2023.
---	---
(3)	Includes tax-equivalent adjustments of $0.0 million and $2.3 million for the six months ended June 30, 2024 and 2023 related to tax-exempt income on loans. The federal statutory tax rate<br> utilized was 21%.
---	---
(4)	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<br> divided byaverage total deposits.
---	---
(5)	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<br> average total funds.
---	---
20
---

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 assets, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, and return on average tangible common equity constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible 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 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.

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 with financial measures defined by GAAP.

21

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Tangible Common Equity to
Tangible Assets and Tangible	June 30,			March 31,			December 31,			September 30,			June 30,
Book Value Per Common Share	2024			2024			2023			2023			2023
	(Dollars in thousands, except per share amounts)
Stockholders' equity	$	3,407,848		$	3,394,150		$	3,390,765		$	2,399,277		$	2,533,195
Less: Preferred stock		498,516			498,516			498,516			498,516			498,516
Total common equity		2,909,332			2,895,634			2,892,249			1,900,761			2,034,679
Less: Goodwill and Intangible assets		364,819			355,853			364,104			24,192			26,581
Tangible common equity	$	2,544,513		$	2,539,781		$	2,528,145		$	1,876,569		$	2,008,098
Total assets	$	35,243,839		$	36,073,516		$	38,534,064		$	36,877,833		$	38,337,250
Less: Goodwill and Intangible assets		364,819			355,853			364,104			24,192			26,581
Tangible assets	$	34,879,020		$	35,717,663		$	38,169,960		$	36,853,641		$	38,310,669
Total stockholders' equity to total assets		9.67	%		9.41	%		8.80	%		6.51	%		6.61	%
Tangible common equity to tangible assets		7.30	%		7.11	%		6.62	%		5.09	%		5.24	%
Book value per common share (1)	$	17.23		$	17.13		$	17.12		$	24.12		$	25.78
Tangible book value per common share (2)	$	15.07		$	15.03		$	14.96		$	23.81		$	25.44
Common shares outstanding (3)		168,875,712			169,013,629			168,959,063			78,806,969			78,939,024

(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 equivalents that are participating securities.
---	---
22
---

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")	2024			2024			2023			2024			2023
	(Dollars in thousands)
Net earnings (loss)	$	30,333		$	30,852		$	(197,414	)	$	61,185		$	(1,392,838	)
Earnings (loss) before income taxes	$	44,637		$	42,400		$	(264,443	)	$	87,037		$	(1,524,783	)
Add: Intangible asset amortization		8,484			8,404			2,389			16,888			4,800
Add: Goodwill impairment		-			-			-			-			1,376,736
Adjusted earnings (loss) before
income taxes used for ROATCE		53,121			50,804			(262,054	)		103,925			(143,247	)
Adjusted income tax expense (1)		16,999			13,819			(66,300	)		30,866			(45,839	)
Adjusted net earnings (loss) for ROATCE		36,122			36,985			(195,754	)		73,059			(97,408	)
Less: Preferred stock dividends		9,947			9,947			9,947			19,894			19,894
Adjusted net earnings (loss) available
to common and equivalent stockholders
for ROATCE	$	26,175		$	27,038		$	(205,701	)	$	53,165		$	(117,302	)
Average stockholders' equity	$	3,395,350		$	3,390,532		$	2,719,372		$	3,392,941		$	3,355,495
Less: Average intangible assets		352,934			360,680			27,824			356,807			706,072
Less: Average preferred stock		498,516			498,516			498,516			498,516			498,516
Average tangible common equity	$	2,543,900		$	2,531,336		$	2,193,032		$	2,537,618		$	2,150,907
Return on average equity (2)		3.59	%		3.66	%		(29.12	)%		3.63	%		(83.71	)%
ROATCE (3)		4.14	%		4.30	%		(37.62	)%		4.21	%		(11.00	)%

(1)	Effective tax rates of 32.0%, 27.2%, and 25.3% used for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Effective tax rate of 29.7% used for<br> the six months ended June 30, 2024. Adjusted effective tax rate of 32.0% used to normalize the effect of goodwill impairment for the six months ended June 30, 2023.
(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.
---	---
23
---

Exhibit 99.2

Investor Presentation Second Quarter 2024 Results Draft v4.5 1/21/24

Forward Looking Statements This presentation includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (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 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 inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; and in the case of our recent acquisition of PacWest Bancorp (“PacWest”), reputational risk, regulatory risk and potential adverse reactions of the Company's or PacWest's customers, suppliers, vendors, employees or other business partners; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and from time to time in other documents that we file with or furnish to the SEC. Second Quarter 2024 Earnings | 2

California’s premier commercial bank with a national reach and select specialty business lines California Focused National Presence & Specialty Businesses Fresno Monterey Kings Tulare Kern San Luis Obispo Santa Barbara Ventura Los Angeles San Bernardino Riverside Orange San Diego THE 3rd LARGEST BANK HEADQUARTERED IN CALIFORNIA1 Specialty Bank Office Community Banking Branches Top 5 California Counties County Rank(2) Dep. ($bn) Orange 1 $13.1 Los Angeles 3 11.1 San Diego 1 1.9 San Bernardino 2 0.8 Riverside 3 0.8 HQ (Los Angeles) Branches Fund Finance HOA Lender & Specialty Finance Media & Entertainment Mortgage Warehouse Lending Payments Solutions SBA Technology & Life Sciences Menlo Park Orange County Los Angeles Denver San Diego Austin Atlanta Chicago Boston New York Chevy Chase Durham Phoenix Santa Barbara Ranked by assets. Ranked by banks headquartered in California by deposit market share. Source: S&P Capital IQ. Second Quarter 2024 Earnings | 3

Key Investor Takeaways Second Quarter 2024 Earnings | 4 Solid progress in 2Q as we head towards sustainable growth and profitability 2024 is a transformational year for our company as we take targeted actions to strengthen and optimize our balance sheet We improved our core fundamentals, despite a challenging economic and rate environment NIM expansion of 14bps to 2.80% Average NIB balances up 3% QoQ Total expenses decreased partially driven by a reduction in compensation from lower headcount On July 18 we completed the sale of $1.95B CIVIC loans Sale will positively impact capital, liquidity and NIM The liquidity and capital created will be used to reposition the balance sheet to optimize core earnings power in 2H24 Profitability expected to improve as we progress through the year due to core earnings drivers; well positioned to take advantage of a lower rate environment Improvement in core results with NIM expanding to 2.80% driven by lower funding costs and higher loan yields. Average NIB balances up 3% QoQ NII was slightly higher this quarter despite our deliberate decision to shrink balance sheet as we paid down most of BTFP Continued efforts to restructure balance sheet and improve profitability, including sale of $1.95B CIVIC loan portfolio Will continue to execute on additional strategic opportunities to further optimize the balance sheet Expect operating expenses to decline in 2H24 as cost synergies continue 2Q24 expenses included non-recurring reversal of merger expense accrual and elevated FDIC and customer related expenses Repositioning balance sheet to lower funding costs, including $1B paydown of BTFP in 2Q Balance sheet well-positioned for declining rate environment Heightened monitoring for stress in credit portfolio; maintaining strong reserve levels After quarter-end, core systems conversions and integration successfully completed, enabling new product and digital capabilities for clients Conducted extensive training and communication campaigns to ensure a seamless transition for our clients

We are transforming the combined franchise to drive long-term growth and shareholder value Second Quarter 2024 Earnings | 5 Current state Repositioning for success Near-term focus Generating profitable growth Future state Top-tier target performance Reposition to right-size balance sheet and optimize yields Optimize deposit mix and reduce cost of funds Leverage CIVIC sale to improve earnings power and profitability Consider further strategic options Achieve cost targets Ensure strong credit quality Heightened monitoring for stress in portfolios Maintain strong reserve levels Expand and deepen customer relationships Drive relationship-based deposit and loan growth Optimize deposit mix with strong focus on NIB growth Repricing of maturing / prepaying loan book to current market rates Maintain expense and credit discipline Consistent high-quality earnings performance versus peers Robust liquidity and strong capital levels Financial performance targets: ROAA ~1.1%+ ROTCE ~13%+

Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Operating Results PTPP(1) EPS ROAA ROATCE(1) NIM $52.4mm $0.12 0.33% 4.3% 2.66% Cash / assets Loans / deposits Deposits / total funding Avg. NIB deposits / avg. deposits Balance Sheet Results 8.6% 88.4% 93.1% 26.1% Increasing Capital CET 1 capital ratio Total risk-based capital ratio BVPS TBVPS(1) 10.1% 16.4% $17.13 $15.03 Strong Credit Reserves ACL/NPLs NPA ratio 220% 0.44% 2Q24 Financial Highlights Second Quarter 2024 Earnings | 6 Growth in pre-tax pre-provision earnings power driven by continued balance sheet repositioning and merger synergies Continued increase in PTPP(1) due to NIM expansion and compensation expense savings NIM expansion of 14 bps driven by lower deposit costs, reduced reliance on wholesale funding and improved loan yields $1.95B of CIVIC loans moved to held-for-sale (“HFS”) Loans / deposits ratio improved to 87.4% from 88.4% Average NIB deposits increased from 26.1% to 27.4% of average deposits Nonperforming credit metrics improvement driven by reclassification of CIVIC loans to HFS $55.6mm $0.12 0.34% 4.1% 2.80% 7.7% 87.4% 95.2% 27.4% 10.3% 16.6% $17.23 $15.07 235% 0.37% 2Q24 1Q24

2Q24 Earnings Results 1Q24 2Q24 -6 bps 1Q24 2Q24 -2 bps 1Q24 2Q24 -7 bps Cost of funds Cost of deposits Cost of interest-bearing deposits Second Quarter 2024 Earnings | 7 Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Return on average assets (“ROAA”) calculated as follows: annualized net earnings (loss) divided by average assets. Return on average tangible common equity (“ROATCE”) calculation as follows: annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity. Net interest income of $229.5mm increased slightly QoQ: Interest income declined due to smaller balance sheet Interest expense declined due to $1.0B repayment of BTFP and due to higher average NIB deposits Noninterest income declined due to negative fair value marks on credit-linked notes and SBIC equity investments Total expenses included multiple non-recurring or elevated items (see appendix) QoQ decline partially driven by decline in compensation expense Elevated tax rate of 32% mostly related to non-recurring equity compensation expense adjustment

Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Wholesale funding defined as borrowings plus brokered time deposits. Balance Sheet Repositioning Continues Increased balance sheet efficiency with improved deposit mix and lower wholesale funding Balance sheet reduction due to use of excess liquidity to pay down high-cost wholesale funding CIVIC loans of $1.95B reclassified to HFS at June 30th in anticipation of the July 18th sale Deposit mix shift in favor of noninterest-bearing deposits Decrease in borrowings largely driven by repayment of $1.0B of BTFP Second Quarter 2024 Earnings | 8 Highlights

Management Outlook 2024 outlook focused on improving core earnings drivers and strengthening balance sheet Continue executing on plan to lower cost of funds and expand net interest margin Laser focused on controllable levers, including prudent expense and credit discipline 2024 outlook assumes one rate cut through the remainder of the year Continue to evaluate additional opportunities to optimize the balance sheet Second Quarter 2024 Earnings | 9 NIM of 2.90% to 3.00% Cost of funds expected to decline 20bps to 25bps Balance sheet repositioning, higher average NIB deposits and other actions driving lower interest expense Assumes one 25 bps rate cut in mid-November 4Q24 NIE expected at ~$195mm-$200mm Expect cost savings in 2H24 driven primarily by merger related synergies and other cost initiatives in addition to lower regulatory assessments Wholesale funding ratio 10-12% Loan / deposits 85%-90% NIB / deposits 28%-29% Balance sheet size may vary based on execution of opportunities to further optimize balance sheet Liquidity generated from CIVIC sale used primarily to pay down wholesale funding sources

Interest Rate Sensitivity Rate-sensitive earning assets: 40%(1) $10.1 billion of loans are variable or reprice / mature within one year Over 99% of adjustable-rate loans with floors are eligible to reprice within one year Rate-sensitive liabilities: 76%(1) $14.2 billion of interest-bearing deposits, excluding CDs $6.6 billion of CDs that mature or reprice within one year $2.0 billion of borrowings and other(2) that mature or reprice within one year Well-positioned for declining rate environment 2.4% 6.3% 2Q24 2Q24 Rate-Sensitive Earning Assets Loans Years to Maturity/Repricing 6.7% 5.8% Variable Rate 1 Year 2 Years 3 - 5 Years >5 Years Loan Composition 2Q24 2Q24 Variable Rate Fixed Hybrid Rate-Sensitive Liabilities Rate sensitive defined as assets or liabilities that are variable rate or repricing/maturing within one year. Other includes TruPS. Second Quarter 2024 Earnings | 10 Interest-Bearing Deposits Borrowings Other Loans HFI + Leases Investment Securities Cash & Cash Equivalents

Net Interest Income and Net Interest Margin Expansion NIM expanded 14 bps to 2.80% NII increased $0.4mm driven by: Average interest-bearing deposits decreased $852mm and interest-bearing deposits costs decreased 2 bps: +$9mm Average borrowings decreased $879mm: +$8mm Loan yields increased 10 bps: +$3mm Securities balances and yields were relatively flat Lower cash balances: ($19mm) 2Q24 Highlights 1.69% $151.0 4Q23 2.66% $229.1 1Q24 2.80% $229.5 2Q24 Net Interest Income (NII) ($M) and Net Interest Margin (NIM) Impact to NII ($M) from cumulative change in yields, rates and mix 1Q24 +$8.7 Deposits +$7.8 Borrowings +$3.4 Loans -$0.5 Securities -$19.0 Cash / Other EA 2Q24 $229.1 $229.5 Lower funding costs and improved asset yields and mix drive NII and NIM expansion 2.15% $69.4 Dec ’23 2.69% $77.3 Mar ’24 2.83% $75.7 Jun ’24 NIM NII Quarter Month(1) Second Quarter 2024 Earnings | 11 June has one less day than December and March impacting NII approximately $2.5mm.

Excludes gain (loss) on sale of securities and loans. Excludes nonrecurring legal recovery of $7.6mm and elevated SBIC-related income distributions of $3.9mm. Illustrative fee income when excluding $2.4mm negative mark for Credit-Linked Notes and negative $3.2mm mark for equity CRA investments. Noninterest IncomeComposition Higher loan fees from higher loan originations more than offset lower deposit fees and lease equipment income driven by lower early lease buyouts Other income decline in 2Q24 relative to 1Q24 was driven mainly by the net impact of fair value marks Other income includes revenue from BOLI, warrants, fair value mark adjustments and other miscellaneous gains or losses 2Q24 Highlights 4Q23 1Q24 $1.2 2Q24 $34.0 $34.3(1) $28.7(1) Other Income Dividends and Gains on Equity Investments Leased Equipment Income Loan and Card Fees Deposit Fees ($ in millions) (1,2) Noninterest income remains consistent and reflects diversified fee sources excluding elevated mark-to-market adjustments in 2Q24 Second Quarter 2024 Earnings | 12 $34.3(1,3) 2Q24 includes negative marks of $2.4mm for Credit-linked Notes and $3.2mm for mark for equity CRA investments

Expenses Controllable expenses declined primarily due to lower compensation and occupancy costs driven by merger synergies Insurance & assessments remain elevated in 2Q24. 1Q24 FDIC expense included a $5mm reduction due to a prior period adjustment Headcount at June 30 down approximately 500 FTE to ~2,065 FTE since the merger announcement date Expect cost savings in 2H24 driven primarily by merger related synergies and other cost initiatives in addition to lower regulatory assessments 2Q24 Highlights Progress in reducing operating expenses expected to continue through remainder of the year (1) Second Quarter 2024 Earnings | 13 $251.8 of actual total operating noninterest expense and $283.5 million normalized expenses adjusted to include combined company expenses for a full quarter and adjust incentive compensation to target. 2Q24 Other expense includes a reversal of $12.7mm of acquisition, integration, and reorganization costs.

Funding Cost Reduction Actions NIB and IB deposit composition trends reflects results of balance sheet restructuring and post-merger community bank-focused strategy Lower deposit costs reflects the increased NIB % and actions taken to reduce IB deposit costs while the lower cost of funds also reflects the partial paydown of BTFP Post systems conversion, will amplify efforts to grow NIB deposit balances with new clients CIVIC loans sale completed on July 18 will accelerate strategy to pay down higher cost wholesale funding as it matures and replace it with lower-cost funding sources Highlights 4Q23 Improving Funding Mix(1) Ongoing interest expense reduction results from focused strategy to improve funding mix and reprice deposits lower 1Q24 2Q24 23.4% 25.3% 4.8% NIB Deposits Interest-bearing deposits Brokered CDs Borrowings 4Q23 2.66% 3.02% 1Q24 2Q24 Reduced Cost of Liabilities Excludes subordinated debt and accrued interest payable and other liabilities. Total cost of funds Total deposits % of Total Funding(1) Second Quarter 2024 Earnings | 14

Building a Strong Commercial Deposit Franchise NIB deposits stayed strong at 27.2% of total deposits and average NIB deposits grew 1.3% to 27.4% of total average deposits CIVIC loan sale proceeds will be used to pay down high cost deposits, which will further reduce deposits costs Average cost of funds declined, with spread against Fed funds rate widening 2Q24 Highlights Focus on relationship banking that generates low-cost commercial deposits Management has a track record of successful deposit strategy execution Average Fed Funds Rate Average Cost of Deposits 4Q23 1Q24 2Q24 CDs Brokered CDs Money Market & Savings Interest-bearing Checking Noninterest-bearing Checking Second Quarter 2024 Earnings | 15

NIB Deposit Growth Remains a Key Priority Enterprise-wide focus Deposit incentive programs, including competitions and leaderboards RM performance goals include specific NIB targets Ensure existing and new relationships have appropriate deposit balances with the bank Line of business-specific approach to NIB growth and new customer acquisition 2Q24 Highlights Consistently generating new noninterest-bearing business deposits from new relationships since 4Q23 merger close Deposit gathering engine designed to build low-cost deposit base Second Quarter 2024 Earnings | 16 $83.2 1Q24 $230.0 2Q24 Cumulative New Business NIB Relationships Cumulative New Business NIB Deposits from New Relationships

Diversified Loan Portfolio Lender finance loans moved to core portfolio with intent to grow this portfolio given attractive loan yields and credit quality; provides diversification to loan portfolio Core portfolio declined due to runoff in lower yielding multifamily and other CRE loans Core portfolio comprises 95% of total loans with low NPL and DQ ratios after moving $1.95B of CIVIC loans to held-for-sale Strong 2Q24 loan originations(1) of $1.0B compared to $0.7B in 1Q24 in a challenging rate and origination environment High-quality relationship-based core portfolio is well diversified with strong metrics Existing portfolios have strong credit quality Note: Wtd. Avg. Rate excludes loan fees and accretion. Second Quarter 2024 Earnings | 17 Includes commitments and fundings.

California-Centric CRE Portfolio Over 71% of total CRE portfolio located in California Total CRE has a low weighted average LTV of 61% Other Property Types includes mobile homes, self storage, gas stations, special use, school, place of worship and restaurants 2Q24 Highlights High quality CRE portfolio has low weighted-average LTV and high debt-service coverage ratio (DSCR) Total CRE is well diversified across multiple industries 1.6% Office Industrial Retail Hotel Health Facility Mixed Use Other Represents most recent appraisal or weighted-average LTV at origination. Note: CRE excludes government guaranteed CRE collateralized SBA loans. Total CRE comprises 57.8% of total loans and other CRE comprises 17.6% of total loans 84% of office collateral located in California, 7% in Colorado and 9% in other states Multifamily has a low average LTV and a strong DSCR coverage ratio of 1.66x NPLs are generally reserved based on individual evaluations Second Quarter 2024 Earnings | 18 Other CRE Composition

Asset Quality Ratios and Trends ACL coverage ratio of 1.19% reflects 4 bps increase from 1Q24 when excluding CIVIC Additional loss coverage from SFR credit-linked notes and purchase accounting marks 30-89 past due loans declined $150mm or 84% QoQ to $28mm Moving CIVIC loans to HFS drove $56mm of decline 90 day+ past due loans declined $2mm to $56mm Classified loans increased primarily from downgrades of rate sensitive loans with repricing risk in higher for longer rate environment Improved NPL and DQ metrics due to transfer of historically volatile CIVIC loans to HFS $256.8 1.15% 2Q23 $251.9 1.15% 3Q23 $311.3 1.22% 4Q23 $320.1 1.26% 1Q24 $275.3 1.19% 2Q24 ACL ACL / Total Loans HFI $104.9 0.47% 2Q23 $125.4 0.57% 3Q23 $74.3 0.29% 4Q23 $145.8 0.57% 1Q24 $117.1 0.50% 2Q24 NPLs NPLs / Total Loans HFI $211.9 0.95% 2Q23 $211.1 0.96% 3Q23 $228.4 0.90% 4Q23 $366.7 1.44% 1Q24 $415.5 1.79% 2Q24 Classified Loans Classified Loans / Total Loans HFI $119.8 0.54% 2Q23 $127.3 0.58% 3Q23 $144.2 0.57% 4Q23 $236.0 0.93% 1Q24 $83.8 0.36% 2Q24 Delinquent Loans Delinquent Loans / Total Loans HFI Delinquent Loans ($M) Classified Loans ($M) ACL / Total Loans ($M) Nonperforming Loans (NPLs) ($M) Note: Periods prior to 4Q23 represent PACW standalone. Second Quarter 2024 Earnings | 19

Credit Migration Note: CRE excludes government guaranteed CRE collateralized SBA loans. Nonperforming loans 1Q24 to 2Q24 walk Delinquent loans 1Q24 to 2Q24 walk Increase in “Classified” driven by migration of rate sensitive loans; however, low delinquency reflects stable underlying credit Lower NPLs primarily due to transfer of CIVIC loans to HFS Delinquent loans down sharply from transfer of CIVIC loans to the HFS portfolio and other core loans becoming current Classified loans increased primarily from downgrades of rate sensitive loans, including multifamily and CRE with repricing risk in higher for longer rate environment CRE portfolio exposure proactively mitigated through additional qualitative reserves, combined with low LTVs and personal guarantors Second Quarter 2024 Earnings | 20 Classified loans 1Q24 to 2Q24 walk

ACL coverage ratio remains robust subsequent to elevated charge-offs including impact of CIVIC Allowance for Credit Losses Walk ACL decreased due to charge-offs related to transfer of CIVIC loans to the HFS portfolio and charge-offs of other loans, which were largely CRE CRE loan charge-offs primarily driven by 2 office loans, which were largely previously reserved for Commercial loan charge-offs were idiosyncratic and not indicative of overall portfolio performance CIVIC portfolio historically carried a higher ACL. The ACL at 1Q24 ex-CIVIC would have been 1.15% compared to 1.19% at 2Q24 1.26% 1.19% ACL (3/31/24) CIVIC Charge-offs Transfer to HFS Other Charge-offs $11.0 Provision ACL (6/30/24) ($ in millions) Second Quarter 2024 Earnings | 21 2Q24 net charge-offs detail Total net charge-offs $(55.7) $25,473 $23,229 HFI Loans

Strong Capital Base CET 1 ratio of 10.27% inclusive of: Impact of fair value marks and merger expenses Special FDIC assessment Lower risk-weighted assets All regulatory capital ratios in excess of minimum “well-capitalized” levels Focus on building capital levels for strength and flexibility 1Q24 2Q24 Common Equity Tier 1 (CET 1) 1Q24 2Q24 Tangible Common Equity / Tangible Assets 2Q24 Highlights 1. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Second Quarter 2024 Earnings | 22

High-quality securities portfolio provides upside Securities Portfolio Detail Average securities yield was flat quarter over quarter Stable securities portfolio with significant repricing opportunity Portfolio Profile Composition Credit Rating Average Portfolio Balances & Yields 2% Private Label RMBS CLO Corporates Gov’t & AGC Munis 3% 0% 5% 1% AAA AA A BB BBB Not Rated $6.0 2.72% 4Q23 $4.7 2.92% 1Q24 $4.7 2.92% 2Q24 Average Balance ($ in billions) Yield 2Q24 Highlights Reflects fair value for AFS securities and amortized cost for HTM securities. Excludes $1.5 million loan loss reserve on HTM securities. Second Quarter 2024 Earnings | 23

High Level of Available Liquidity Total available primary liquidity of $4.6 billion, including unpledged AFS securities of $2.1 billion Total available primary and secondary liquidity of $16.9 billion Uninsured and uncollateralized deposits of $6.8 billion, which represents only 23.6% of total deposits Total available primary and secondary liquidity was 2.5x uninsured and uncollateralized deposits 2Q24 Highlights Maintain high levels of primary and secondary liquidity as prudent risk management (1) Net of haircut as of June 30, 2024. Second Quarter 2024 Earnings | 24

Appendix

Non-GAAP Financial Information Tangible assets, tangible equity, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity, pre-tax pre-provision, pre-goodwill impairment (“PTPP”) income, constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total stockholders’ equity. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible 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 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. PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense. 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. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 27-29 of this presentation. Second Quarter 2024 Earnings | 26

Non-GAAP Reconciliation Total common equity divided by common shares outstanding. Tangible common equity divided by common shares outstanding. Common shares outstanding include non-voting common equivalents that are participating securities. Second Quarter 2024 Earnings | 27 Note: Periods prior to 4Q23 represent PACW standalone.

Non-GAAP Reconciliation Effective tax rates of 32.0%, 27.2%, and 25.3% used for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Annualized net (loss) earnings divided by average stockholders' equity. Annualized adjusted net (loss) earnings available to common stockholders for ROATCE divided by average tangible common equity. Second Quarter 2024 Earnings | 28 Note: Periods prior to 4Q23 represent PACW standalone.

Non-GAAP Reconciliation Second Quarter 2024 Earnings | 29 Note: Periods prior to 4Q23 represent PACW standalone.

Noteworthy items 2Q24 results included multiple noteworthy items, which impacted financial results, but were largely offset Revenue items higher than historical levels; driven by normal MTM accounting The identified expense and tax items (ex-FDIC) are related to either the merger or post-merger repositioning actions Acquisition cost reversal due to actual amounts for certain expenses being lower than the accrued amounts at merger close Elevated tax rate of 32% mostly related to non-recurring equity compensation expense adjustment FDIC expense impact reflects continued elevated assessment levels anticipated to decrease by the end of the year Second Quarter 2024 Earnings | 30

Execution on consolidation of vast majority of facilities Realize full operational expense savings Continued reduction of interest expense and improvement of deposit mix Integration roadmap update Items to be completed in 2H24 Closed merger with PacWest Closed on $400mm common equity with merger Retained key employees and clients Sold $6 billion assets (3.6% yield) Paid down $10 billion wholesale funding (~5% cost) Completed announced balance sheet restructuring and finalized plan for integration Partial cost savings realized Core systems conversions (completed July 18, 2024)       4Q+ 4Q+ 4Q+ Target Strong execution and achievement of deal closing timeline creates opportunity to complete integration and realize full cost savings in 2024  Accomplished since announcement of deal Second Quarter 2024 Earnings | 31 

Hamid Hussain President of the Bank 25+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo Olivia Lindsay Chief Risk Officer 20+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank Jared Wolff President and Chief Executive Officer 30+ years of banking and law. Previously held senior executive positions with City National Bank (RBC) and PacWest Bancorp John Sotoodeh Chief Operating Officer 30+ years of banking experience, previously held several key executive positions at Wells Fargo Monica Sparks Chief Accounting Officer 20+ years experience in accounting, previously served as EVP, Chief Accounting Officer at PacWest Bancorp Raymond Rindone Deputy Chief Financial Officer and Head of Corporate Finance 30+ years finance & public accounting experience, previously served as Deputy CFO of City National Bank (RBC) Joe Kauder Chief Financial Officer 30+ years banking experience, previously served as EVP, CFO Wells Fargo Wholesale Banking Bryan Corsini Chief Credit Officer 35+ years banking experience, previously served as CCO of PacWest Bancorp and Director of Pacific Western Bank Debbie Dahl-Amundson Chief Internal Audit Officer Leads the internal audit group and SOX Compliance, previously served as Assistant General Auditor for PNC Steve Schwimmer Chief Information Officer 25+ years of experience in banking technology, previously served as the EVP, Chief Innovation Officer at PacWest Bancorp Stan Ivie Head of Government and Regulatory Affairs Previously served as the Chief Risk Officer of PacWest Bancorp & the regional director for the FDIC’s San Francisco and Dallas Regions Experienced management team with track record of success at leading institutions Ido Dotan General Counsel and Chief Administrative Officer Experienced in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings Alex Kweskin Chief Human Resources Officer 25+ years of Human Resources experience, previously held HR leadership roles at MUFG Union Bank and Wells Fargo Second Quarter 2024 Earnings | 32