Equibles

8-K

BANC OF CALIFORNIA, INC. (BANC)

8-K 2020-01-23 For: 2020-01-23
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Added on April 10, 2026

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): January 23, 2020

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

Maryland 001-35522 04-3639825
(State or other jurisdiction<br><br>of incorporation) (Commission File Number) (IRS Employer<br><br>Identification No.)
3 MacArthur Place, Santa Ana, California 92707
--- --- --- ---
(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)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 Symbol(s) Name of each exchange 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 7.375% Non-Cumulative Perpetual Preferred Stock, Series D BANC PRD New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E BANC PRE New York Stock Exchange

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Item 2.02 Results of Operations and Financial Condition.

On January 23, 2020, Banc of California, Inc. (the “Company”) issued a press release announcing 2019 fourth quarter and full year financial results.

A copy of the press release is attached to this report 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 fourth quarter and full year results at 10:00 A.M. Pacific Time on Thursday, January 23, 2020. Interested parties may attend the conference call by dialing 888-317-6003, and referencing event code 1520432. 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 attached to this report as Exhibit 99.2 and is incorporated by reference herein.

Forward-Looking Statements

This Current Report on Form 8-K includes forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

99.1

Banc of California, Inc. Press Release dated January 23, 2020.

99.2

Banc of California, Inc. Earnings Conference Call Presentation Materials dated January 23, 2020.

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.

January 23, 2020 /s/ Lynn Hopkins
Lynn Hopkins
Executive Vice President and Chief Financial Officer

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		Exhibit

EX. 99.1

logoa04.jpg

Banc of California Reports Fourth Quarter 2019 Financial Results

SANTA ANA, Calif., (January 23, 2020) — Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders for the fourth quarter of $10.4 million, resulting in diluted income per common share of $0.20.

Highlights for the fourth quarter (as compared to third quarter 2019) included:

• Net interest margin increased 18 basis points to 3.04%
• Cost of total deposits decreased by 21 basis points to 1.27%
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• Noninterest-bearing deposit balances increased to 20.1% of total deposits, up from 19.2%
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• Average noninterest-bearing deposits increased by $60 million, or 5.7%
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• Return on average assets was 0.71% and return on average equity was 6.20%
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“2019 was the beginning of the transformation of Banc of California,” said Jared Wolff, President and Chief Executive Officer of Banc of California.  “We successfully executed on each of our key strategic priorities, reducing cost of deposits, lowering expenses and right-sizing the balance sheet.  As a result of our efforts, we have solidified our foundation as a relationship focused business bank, and are poised to create true franchise value going forward.”

Mr. Wolff continued, “As we enter 2020, we will continue to build on the momentum from 2019, remixing our loans and deposits to improve our franchise, and expanding our presence in the key lending segments we are targeting.  Further, having built up excess capital, we will be looking for opportunities to deploy it that optimize our franchise and improve earnings in the future.  We look forward to showing progress on these initiatives in 2020.”

Lynn Hopkins, Chief Financial Officer of Banc of California said, “The significant improvement in our cost of funds drove the 18 basis point increase in our net interest margin as interest earning asset yields remained steady at 4.50%. Our overall cost of funds decreased to 1.55% as we have been able to reduce our reliance on wholesale funding sources. The fourth quarter, average noninterest-bearing deposit balances increased for the third consecutive quarter and represented over 19% of our total average deposits. Looking forward, we expect to continue seeing benefits from the loan and securities remixing activities and we are well-positioned to show ongoing improvement on both sides of the balance sheet.”

1

EX. 99.1

Business Results - Income Statement Highlights

Three Months Ended Year Ended
December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018 December 31, <br>2019 December 31, <br>2018
( in thousands)
Total interest and dividend income $ 92,657 $ 104,040 $ 110,712 $ 111,130 $ 391,111 $ 422,796
Total interest expense 27,042 33,742 39,260 42,904 40,448 142,948 136,720
Net interest income 56,660 58,915 64,780 67,808 70,682 248,163 286,076
(Reversal of) provision for loan and lease losses (2,678 ) 38,540 (1,987 ) 2,512 6,653 36,387 30,215
Net interest income after provision for loan and lease losses 59,338 20,375 66,767 65,296 64,029 211,776 255,861
Total noninterest income (loss) 4,930 3,181 (2,290 ) 6,295 2,448 12,116 23,915
Total noninterest expense 47,185 43,307 43,587 61,835 49,569 195,914 232,785
Income tax expense (benefit) 2,811 (5,619 ) 4,308 2,719 6,117 4,219 4,844
Income (loss) from continuing operations 14,272 (14,132 ) 16,582 7,037 10,791 23,759 42,147
Income from discontinued operations, net of tax — — — — 247 — 3,325
Net income (loss) $ (14,132 ) $ 16,582 $ 7,037 $ 11,038 $ 23,759 $ 45,472
Net income (loss) available to common stockholders^(1)^ $ (22,722 ) $ 11,909 $ 2,527 $ 6,527 $ 2,624 $ 22,850

All values are in US Dollars.

(1) Balance represents the net income (loss) available to common stockholders after subtracting preferred stock dividends, income allocated to participating securities, participating securities dividends and impact of preferred stock redemption from net income (loss). Refer to the Statement of Operations at the end for additional detail on these amounts.

Net interest income

Q4 2019 vs Q3 2019.

Net interest income for the fourth quarter decreased $2.3 million to $56.7 million due mostly to lower average loans and securities partially offset by an expanded net interest margin. Average interest-earning assets declined from the prior quarter by $781 million to $7.4 billion. During the prior quarter, we sold lower yielding, longer duration earning assets and used the sale proceeds to repay high cost funding liabilities; the full impact of this strategic objective was recognized during the fourth quarter.

The net interest margin improved 18 basis points to 3.04%. Our average yield on interest-earning assets remained flat quarter over quarter at 4.50%, primarily attributable to higher yielding loans representing a higher percentage of interest earning assets and a higher average yield on securities offset by a lower average loan yield. Our average yield on loans declined 4 basis points to 4.71% for the fourth quarter and the linked quarter decrease is due mostly to loans being originated and repriced into the lower rate environment, partially offset by higher average yields on commercial real estate, multifamily and construction loans. Our average yield on securities increased 12 basis points primarily as a result of our concentrated efforts to remix the securities portfolio and the high-yielding, variable rate CLOs representing a higher percentage of the portfolio, offset by these variable rate investments resetting into the lower interest rate environment.

Our average cost of interest-bearing liabilities decreased 18 basis points to 1.85% for the fourth quarter from 2.03% for the third quarter, driven by the lower average cost of interest-bearing deposits, which decreased by 21 basis points to 1.57% from the prior quarter. Additionally, average noninterest-bearing deposits increased by $60 million, or 5.7%, and represented 19.4% of total average deposits in the fourth quarter. Our total cost of deposits decreased 21 basis points to 1.27% for the fourth quarter. The decrease in our funding cost is due to a lower reliance on high cost transaction accounts and wholesale funds as we have managed down the balance sheet and continue to execute on our strategy to focus on relationship clients.

FY 2019 vs FY 2018.

Net interest income for the year ended December 31, 2019 decreased $37.9 million to $248.2 million as compared to $286.1 million for 2018 primarily as a result of targeted sales of securities and loans offset by the overall focus on remixing the loan portfolio towards relationship based lending during the year. For the year ended December 31, 2019, average interest-earning assets declined $1.12 billion to $8.60 billion, and the net interest margin decreased to 2.89% from 2.95% for the comparable 2018 period.

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EX. 99.1

Our average yield on interest-earning assets increased 19 basis points to 4.55% for the year ended December 31, 2019 as compared to 4.36% for the full year of 2018, due to higher average yields on the loan and securities portfolios and an increased mix of loans versus securities. Our average yield on loans was 4.76% for the year ended December 31, 2019, compared to 4.64% for the full year of 2018, primarily attributable to higher average commercial and industrial balances in the portfolio mix and higher average yields on commercial real estate, multifamily and construction loans. Our average yield on securities increased 14 basis points primarily as a result of interest rate resets on our CLOs, partially offset by a decrease in our average balance attributable to the sale and calls of higher yielding CLOs between periods.

Provision for loan losses

Q4 2019 vs Q3 2019.

During the fourth quarter, we recognized a provision release of $2.7 million driven primarily by $431 million in lower loan balances. The provision release was partially offset by downgrades of several loans. In particular, a $24.9 million commercial and industrial (“C&I”) loan was downgraded during the quarter and classified loan balances increased $14.9 million.

FY 2019 vs FY 2018.

During the year ended December 31, 2019, we recognized a loan loss provision of $36.4 million, primarily attributable to a previously reported $35 million charge-off of a line of credit originated in November 2017 to a borrower purportedly the subject of a fraudulent scheme. We are actively evaluating all available sources of recovery, although no assurance can be given that we will be successful in that regard. For the comparable prior year period, $30.2 million of loan loss provisions were recorded, inclusive of a $13.9 million charge-off related to borrower fraud.

Noninterest income

Q4 2019 vs Q3 2019.

Noninterest income for the fourth quarter was $4.9 million, which represented an increase of $1.7 million, or 55% from the prior quarter. The increase was primarily due to no net loss on the sale of available-for-sale securities during the fourth quarter of 2019 as compared to a $5.1 million net loss during the third quarter of 2019, higher loan servicing income, and higher all other income. In addition, the Company had lower impairment losses on investment securities during the fourth quarter. These increases were partially offset by a lower gain on sale of loans of $5.2 million as the fourth quarter recognized a net loss of $833 thousand compared to a net gain of $4.3 million in the prior quarter.

FY 2019 vs FY 2018.

Noninterest income for the year ended December 31, 2019 was $12.1 million, which represented a decrease of $11.8 million, or 49.3% from the prior year. The decrease was primarily attributable to (1) a higher net loss on sale of investment securities of $10.4 million, (2) lower other income of $6.6 million due to the elimination of non-core assets in prior periods and the previously reported $9.6 million loss from interest rate swap agreements entered into in order to offset variability in the fair value of the Freddie Mac securitization completed in 2019, and (3) lower loan servicing income of $3.0 million as a result of the sale of mortgage servicing rights in 2018. These decreases are partially offset by a higher net gain on sale of loans of $5.9 million and a lower impairment loss on investment securities of $2.5 million.

Noninterest expense

Q4 2019 vs Q3 2019.

Noninterest expense for the fourth quarter was $47.2 million, representing an increase of $3.9 million over the prior quarter. Noninterest expense included: (1) $1.9 million lower salaries and benefits expense primarily related to lower headcount, (2) higher professional fees of $1.1 million, (3) $615 thousand higher regulatory assessments related to the one-time small bank assessment credit recorded in the third quarter, (4) $1.6 million in higher restructuring expense related to severance during the fourth quarter of 2019, and (5) a $2.0 million increase in loss on investments in alternative energy partnerships.

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EX. 99.1

FY 2019 vs FY 2018.

Noninterest expense for the year ended December 31, 2019 was $195.9 million, which represented a decrease of $36.9 million, or 15.8% from the prior year. The lower noninterest expense primarily consisted of: (1) lower professional fees of $21.4 million, primarily attributable to $9.6 million of insurance recoveries net of expenses related to securities litigation, indemnification, investigation and other legal expenses, (2) lower salaries and benefits expense of $4.1 million resulting from lower headcount and lower consulting fees, (3) lower advertising costs of $4.2 million, and (4) a $3.4 million decrease in loss on investments in alternative energy partnerships.

Income taxes

Q4 2019 vs Q3 2019.

Income tax expense totaled $2.8 million for the quarter resulting in an effective tax rate of 16.5%. This compares to a $5.6 million tax benefit for the third quarter and an effective tax benefit rate of 28.5%.

FY 2019 vs FY 2018.

Income tax expense totaled $4.2 million for the year ended December 31, 2019, representing an effective tax rate of 15.1%, compared to $6.1 million and 11.9% for 2018. The higher effective tax rate in 2019 is due in part to a reduction in available tax credits generated by the Company compared to 2018. Looking forward, we expect our tax rate to normalize in the range of 22 — 24% as we expect a continued reduction in the generation of tax credits related to investments in alternative energy partnerships.

Balance Sheet

At December 31, 2019, total assets were $7.83 billion, which represented a linked quarter decrease of $796.9 million, consistent with our strategic shift towards reducing our balance sheet and focusing on relationship lending. The following table shows selected balance sheet line items as of the dates indicated.

As of and for the Three Months Ended Amount Change
December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018 Q4-19 vs. Q3-19 Q4-19 vs. Q4-18
( in thousands)
Total assets $ 8,625,337 $ 9,359,931 $ 9,886,525 $ 10,630,067 $ (796,927 ) $ (2,801,657 )
Securities available-for-sale $ 775,662 $ 1,167,687 $ 1,471,303 $ 1,992,500 $ 136,918 $ (1,079,920 )
Loans held-for-investment $ 6,383,259 $ 6,719,570 $ 7,557,200 $ 7,700,873 $ (431,374 ) $ (1,748,988 )
Loans held-for-sale $ 23,936 $ 597,720 $ 25,191 $ 8,116 $ (1,294 ) $ 14,526
Demand deposits $ 2,602,011 $ 2,510,233 $ 2,690,738 $ 2,579,000 $ 20,387 $ 43,398
Other core deposits 2,794,769 3,074,936 3,301,080 3,575,140 3,629,100 (280,167 ) (834,331 )
Brokered deposits 10,000 93,111 480,977 1,459,054 1,708,544 (83,111 ) (1,698,544 )
Total Deposits $ 5,770,058 $ 6,292,290 $ 7,724,932 $ 7,916,644 $ (342,891 ) $ (2,489,477 )
As percentage of total deposits
Demand deposits 48.32 % 45.10 % 39.89 % 34.83 % 32.58 % 3.22 % 15.74 %
Other core deposits 51.50 % 53.29 % 52.46 % 46.28 % 45.84 % (1.79 )% 5.66 %
Brokered deposits 0.18 % 1.61 % 7.64 % 18.89 % 21.58 % (1.43 )% (21.40 )%
Average loan yield 4.71 % 4.75 % 4.80 % 4.76 % 4.74 % (0.04 )% (0.03 )%
Average cost of interest-bearing deposits 1.57 % 1.78 % 1.89 % 1.92 % 1.77 % (0.21 )% (0.20 )%

All values are in US Dollars.

Investments

Securities available-for-sale was $912.6 million at December 31, 2019, an increase of 17.7% from the previous quarter, primarily due to the purchase of $195.3 million of investment securities, comprised of $128.8 million of agency securities, $53.0 million of municipal bonds and $13.5 million of corporate debt securities during the quarter, partially offset by the sale of $39.4 million of our legacy agency MBS. The funds from the sales of our MBS during the quarter and other available cash balances were reinvested into a mix of security

4

EX. 99.1

classes, resulting in an overall shorter duration for the securities portfolio. As of December 31, 2019, our securities portfolio included $718.4 million of CLOs, $127.8 million of agency securities, $52.7 million of municipal securities, and $13.6 million of corporate debt securities.

Loans

The following table sets forth the composition, by loan category, of our loan portfolio as of the dates indicated:

December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
( in thousands)
Composition of held-for-investment loans
Commercial real estate $ 891,029 $ 856,497 $ 865,521 $ 867,013
Multifamily 1,494,528 1,563,757 1,598,978 2,332,527 2,241,246
Construction 231,350 228,561 209,029 211,549 203,976
Commercial and industrial 1,691,270 1,789,478 1,951,707 1,907,102 1,944,142
SBA 70,981 75,359 80,929 74,998 68,741
Total commercial loans 4,306,946 4,548,184 4,697,140 5,391,697 5,325,118
Single family residential mortgage 1,590,774 1,775,953 1,961,065 2,102,694 2,305,490
Other consumer 54,165 59,122 61,365 62,809 70,265
Total consumer loans 1,644,939 1,835,075 2,022,430 2,165,503 2,375,755
Total gross loans $ 6,383,259 $ 6,719,570 $ 7,557,200 $ 7,700,873
Composition percentage of held-for-investment loans
Commercial real estate 13.8 % 14.0 % 12.7 % 11.5 % 11.3 %
Multifamily 25.1 % 24.5 % 23.8 % 30.9 % 29.2 %
Construction 3.9 % 3.6 % 3.1 % 2.8 % 2.6 %
Commercial and industrial 28.4 % 28.0 % 29.1 % 25.2 % 25.2 %
SBA 1.2 % 1.2 % 1.2 % 1.0 % 0.9 %
Total commercial loans 72.4 % 71.3 % 69.9 % 71.4 % 69.2 %
Single family residential mortgage 26.7 % 27.8 % 29.2 % 27.8 % 29.9 %
Other consumer 0.9 % 0.9 % 0.9 % 0.8 % 0.9 %
Total consumer loans 27.6 % 28.7 % 30.1 % 28.6 % 30.8 %
Total gross loans 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Held-for-investment loans decreased $431 million to $6.0 billion from the prior quarter, due mostly to lower single family residential mortgage loans of $185 million, lower C&I loans of $98 million, lower commercial real estate of $72 million, and lower multifamily of $69 million. The decline in single family residential and multifamily is due to mostly to accelerated payoffs as the loans refinance in the lower rate environment. The decline in C&I loans is due primarily to the payoff of a few large loans and lower average outstanding balances on credit lines.

Single family residential mortgage and multifamily loans now comprise 51.8% of the total held-for-investment loan portfolio as compared to 59.1% one year ago. Commercial real estate loans comprised 13.8% of the loan portfolio and commercial and industrial loans constituted 28.4%, with average yields of 4.94% and 5.09% for the fourth quarter of 2019.

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EX. 99.1

Deposits

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

December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
( in thousands)
Composition of deposits
Noninterest-bearing checking $ 1,107,442 $ 993,745 $ 1,120,700 $ 1,023,360
Interest-bearing checking 1,533,882 1,503,208 1,577,901 1,573,499 1,556,410
Money market 715,479 695,530 800,898 899,330 873,153
Savings 885,246 1,042,162 1,061,115 1,151,442 1,265,847
Non-brokered certificates of deposit 1,204,044 1,367,284 1,479,137 1,684,895 1,654,605
Brokered certificates of deposit — 54,432 379,494 1,295,066 1,543,269
Total deposits $ 5,770,058 $ 6,292,290 $ 7,724,932 $ 7,916,644
Composition percentage of deposits
Noninterest-bearing checking 20.1 % 19.2 % 15.8 % 14.5 % 12.9 %
Interest-bearing checking 28.2 % 26.1 % 25.1 % 20.4 % 19.7 %
Money market 13.2 % 12.0 % 12.7 % 11.6 % 11.0 %
Savings 16.3 % 18.1 % 16.9 % 14.9 % 16.0 %
Non-brokered certificates of deposit 22.2 % 23.7 % 23.5 % 21.8 % 20.9 %
Brokered certificates of deposit — % 0.9 % 6.0 % 16.8 % 19.5 %
Total deposits 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Total deposits decreased $342.9 million during the fourth quarter of 2019 to $5.43 billion due to lower savings balances of $156.9 million, non-brokered certificates of deposit balances of $163.2 million, brokered certificates of deposit balances of $54.4 million, and noninterest-bearing checking of $18.9 million, offset by higher interest-bearing checking of $30.7 million and money market of $19.9 million. The decline in non-brokered certificates of deposit is attributed to a lower amount of renewals for maturing certificates as they reset to lower offer rates. The decline in savings is due to rate sensitive customers lowering balances as this product continues to be priced in to the current rate environment as we focus on building relationship-based deposits. In addition, we reduced our reliance on wholesale funding with no new brokered certificates of deposit acquired in the quarter. Noninterest-bearing deposits totaled $1.09 billion and represented 20.1% of total deposits at year end, which compares to $1.11 billion and 19.2% at September 30, 2019 and $1.02 billion and 12.9% at December 31, 2018.

Debt

Advances from the FHLB decreased $455 million on a linked-quarter basis, or 28%, to $1.20 billion as of December 31, 2019, primarily as a result of the maturity of $300 million in fixed rate-advances and a reduction in overnight advances of $205 million. At the end of the fourth quarter of 2019, the maturity dates of FHLB advances consisted of $465 million of overnight, $74 million maturing in three months or less, and $656 million maturing beyond three months. As of the end of the fourth quarter of 2019, the overnight advance interest rate was 1.66%.

Equity

At December 31, 2019, total stockholders’ equity increased by $6.3 million to $907.2 million on a linked-quarter basis, while tangible common equity increased by $6.7 million to $676.1 million. The increase in total stockholders’ equity related to net income of $14.3 million, partially offset by the dividends to common and preferred stockholders of $6.8 million and an increase in accumulated other comprehensive loss of $2.3 million as a result of reductions in the fair value of securities available-for-sale.

Capital ratios remain strong with total risk-based capital at 15.90% and a tier 1 leverage ratio of 10.89%. The following table sets forth our regulatory capital ratios at December 31, 2019 and the previous four quarters.

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EX. 99.1

December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Capital Ratios^(1)^
Banc of California, Inc.
Total risk-based capital ratio 15.90 % 14.37 % 15.00 % 14.01 % 13.71 %
Tier 1 risk-based capital ratio 14.83 % 13.32 % 14.03 % 13.03 % 12.77 %
Common equity tier 1 capital ratio 11.56 % 10.34 % 10.50 % 9.72 % 9.53 %
Tier 1 leverage ratio 10.89 % 9.84 % 9.62 % 8.87 % 8.95 %
Banc of California, NA
Total risk-based capital ratio 17.46 % 15.65 % 16.70 % 15.79 % 15.71 %
Tier 1 risk-based capital ratio 16.39 % 14.60 % 15.73 % 14.81 % 14.77 %
Common equity tier 1 capital ratio 16.39 % 14.60 % 15.73 % 14.81 % 14.77 %
Tier 1 leverage ratio 12.02 % 10.75 % 10.80 % 10.07 % 10.36 %
(1) December 31, 2019 capital ratios are preliminary,
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Credit Quality

December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Asset quality information and ratios ( in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent $ 39,122 $ 34,938 $ 44,840 $ 26,684
90+ days delinquent 24,734 17,220 17,272 14,623 13,846
Total delinquent loans $ 56,342 $ 52,210 $ 59,463 $ 40,530
Total delinquent loans to total loans 0.97 % 0.88 % 0.78 % 0.79 % 0.53 %
Non-performing assets, excluding loans held-for-sale
Non-performing loans $ 45,169 $ 28,499 $ 27,739 $ 21,585
90+ days delinquent and still accruing loans — — 275 731 470
Other real estate owned — — 276 316 672
Non-performing assets $ 45,169 $ 29,050 $ 28,786 $ 22,727
ALLL to non-performing loans 132.97 % 139.31 % 206.86 % 224.40 % 281.99 %
Non-performing loans to total loans held-for-investment 0.73 % 0.71 % 0.43 % 0.38 % 0.29 %
Non-performing assets to total assets 0.55 % 0.52 % 0.31 % 0.29 % 0.21 %
Troubled debt restructurings (TDRs)
Performing TDRs $ 6,800 $ 20,245 $ 5,574 $ 5,745
Non-performing TDRs 21,837 14,605 2,428 1,943 2,276
Total TDRs $ 21,405 $ 22,673 $ 7,517 $ 8,021

All values are in US Dollars.

Total delinquent loans increased $1.3 million in the fourth quarter to $57.6 million at December 31, 2019, due to $22.8 million of additions, offset by $7.8 million returning to current status and $13.7 million of principal payments or payoffs. The $22.8 million of additions includes a $9.0 million single family residential mortgage loan with a 38% loan-to-value ratio and a $5.0 million C&I loan in process of restructuring. Loans 90+ days delinquent includes single family residential mortgage loans, which account for 75% of the balance.

Non-performing loans decreased $1.8 million in the fourth quarter to $43.4 million as of December 31, 2019, due to the sale of $11.9 million of non-performing loans and $4.1 million of loans returning to performing status, offset by $14.3 million of performing loans being placed on nonaccrual status. The year end balance includes two large loans that comprise 54% of our total nonperforming loans, one is a $14.0 million shared national credit and the other is a $9.0 million single family mortgage residential loan,with a loan-to-value ratio of 38%. Aside from those two loans, nonperforming loans total $20 million, of which 48% relates to single family residential mortgage loans. Of the $43.4 million non-performing loans at December 31, 2019, $17.7 million relates to loans in a current payment status.

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EX. 99.1

Allowance for Loan Losses

Three Months Ended
December 31, 2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
( in thousands)
Allowance for loan losses (ALLL)
Balance at beginning of period $ 59,523 $ 63,885 $ 62,192 $ 57,782
Loans and leases charged off (2,706 ) (35,546 ) (2,451 ) (1,063 ) (2,522 )
Recoveries 106 410 76 244 279
Net charge-offs (2,600 ) (35,136 ) (2,375 ) (819 ) (2,243 )
(Reversal of) provision for loan losses (2,678 ) 38,540 (1,987 ) 2,512 6,653
Balance at end of period $ 62,927 $ 59,523 $ 63,885 $ 62,192
Annualized net loan charge-offs to average total loans held-for-investment 0.17 % 2.19 % 0.13 % 0.04 % 0.12 %
Reserve for loss on repurchased loans
Balance at beginning of period $ 2,478 $ 2,486 $ 2,506 $ 2,575
Initial provision for loan repurchases — 4,415 53 96 53
Reversal of provision for loan repurchases (360 ) (123 ) (61 ) (116 ) (122 )
Utilization of reserve for loan repurchases — (209 ) — — —
Balance at end of period $ 6,561 $ 2,478 $ 2,486 $ 2,506

All values are in US Dollars.

During the fourth quarter of 2019, the allowance for loan losses decreased by $5.3 million as a result of a $2.7 million provision release and net charge-offs of $2.6 million. The net charge-offs include $1.7 million related to the sale of $11.9 million of nonperforming loans. The provision release was driven primarily by $431 million in lower loan balances.

The reserve for loss on repurchased loans decreased by $360 thousand in the fourth quarter due to continued runoff of principal balances associated with the multifamily loan securitization and single-family residential mortgage loans previously sold. This runoff of the associated sold balances results in reduced anticipated losses from repurchases.

Subsequent Events

On January 22, 2020 the Company filed a Shelf Registration Statement on Form S-3 with the Securities and Exchange Commission to provide the Company with flexibility and enable it to access the public capital markets to respond to financing and business opportunities that may arise in the future.  The Company’s prior Shelf Registration Statement expired in August 2019.

The Company will host a conference call to discuss its fourth quarter 2019 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, January 23, 2020. Interested parties are welcome to attend the conference call by dialing 888-317-6003, and referencing event code 1520432. 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.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $7.8 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 43 offices including 32 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.

8

EX. 99.1

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 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. with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Source: Banc of California, Inc.
Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (949) 385-8700
Lynn Hopkins, (949) 265-6599

9

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Financial Condition

(Dollars in thousands)

(Unaudited)

December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
ASSETS
Cash and cash equivalents $ 373,472 $ 526,874 $ 313,850 $ 304,705 $ 391,592
Securities available-for-sale 912,580 775,662 1,167,687 1,471,303 1,992,500
Loans held-for-sale 22,642 23,936 597,720 25,191 8,116
Loans held-for-investment 5,951,885 6,383,259 6,719,570 7,557,200 7,700,873
Allowance for loan losses (57,649 ) (62,927 ) (59,523 ) (63,885 ) (62,192 )
Federal Home Loan Bank and other bank stock 59,420 71,679 76,373 55,794 68,094
Servicing rights, net 2,299 2,407 2,715 3,053 3,428
Other real estate owned, net — — 276 316 672
Premises and equipment, net 128,021 128,979 129,227 130,417 129,394
Investments in alternative energy partnerships, net 29,300 27,039 26,633 26,578 28,988
Goodwill 37,144 37,144 37,144 37,144 37,144
Other intangible assets, net 4,151 4,605 5,105 5,726 6,346
Deferred income tax, net 44,906 45,950 42,798 45,111 49,404
Income tax receivable 4,233 4,459 2,547 4,787 2,695
Bank owned life insurance investment 109,819 108,720 108,132 107,552 107,027
Right of use assets 22,540 23,907 24,118 24,519 —
Due from unsettled securities sales — 334,769 — — —
Other assets 183,647 188,875 165,559 151,014 146,496
Assets of discontinued operations — — — — 19,490
Total assets $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 $ 10,630,067
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits $ 1,088,516 $ 1,107,442 $ 993,745 $ 1,120,700 $ 1,023,360
Interest-bearing deposits 4,338,651 4,662,616 5,298,545 6,604,232 6,893,284
Total deposits 5,427,167 5,770,058 6,292,290 7,724,932 7,916,644
Advances from Federal Home Loan Bank 1,195,000 1,650,000 1,825,000 935,000 1,520,000
Notes payable, net 173,421 173,339 173,257 173,203 173,174
Reserve for loss on repurchased loans 6,201 6,561 2,478 2,486 2,506
Lease liabilities 23,692 25,210 25,457 25,893 —
Accrued expenses and other liabilities 95,684 99,181 77,905 76,686 72,209
Total liabilities 6,921,165 7,724,349 8,396,387 8,938,200 9,684,533
Commitments and contingent liabilities
Preferred stock 189,825 189,825 231,128 231,128 231,128
Common stock 520 520 520 518 518
Common stock, class B non-voting non-convertible 5 5 5 5 5
Additional paid-in capital 629,848 628,774 627,306 626,608 625,834
Retained earnings 127,733 120,221 146,039 136,943 140,952
Treasury stock (28,786 ) (28,786 ) (28,786 ) (28,786 ) (28,786 )
Accumulated other comprehensive loss, net (11,900 ) (9,571 ) (12,668 ) (18,091 ) (24,117 )
Total stockholders’ equity 907,245 900,988 963,544 948,325 945,534
Total liabilities and stockholders’ equity $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 $ 10,630,067

10

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended Year Ended
December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018 December 31, <br>2019 December 31, <br>2018
Interest and dividend income
Loans, including fees $ 73,930 $ 80,287 $ 89,159 $ 90,558 $ 88,258 $ 333,934 $ 329,272
Securities 7,812 10,024 12,457 17,841 19,882 48,134 83,567
Other interest-earning assets 1,960 2,346 2,424 2,313 2,990 9,043 9,957
Total interest and dividend income 83,702 92,657 104,040 110,712 111,130 391,111 422,796
Interest expense
Deposits 18,247 22,811 28,598 31,443 28,972 101,099 91,236
Federal Home Loan Bank advances 6,396 8,519 8,289 9,081 9,068 32,285 34,995
Securities sold under repurchase agreements 15 13 16 18 25 62 1,033
Notes payable and other interest-bearing liabilities 2,384 2,399 2,357 2,362 2,383 9,502 9,456
Total interest expense 27,042 33,742 39,260 42,904 40,448 142,948 136,720
Net interest income 56,660 58,915 64,780 67,808 70,682 248,163 286,076
(Reversal of) provision for loan losses (2,678 ) 38,540 (1,987 ) 2,512 6,653 36,387 30,215
Net interest income after (reversal of) provision for loan losses 59,338 20,375 66,767 65,296 64,029 211,776 255,861
Noninterest income
Customer service fees 1,451 1,582 1,434 1,515 1,786 5,982 6,315
Loan servicing income 312 128 121 118 22 679 3,720
Income from bank owned life insurance 599 588 580 525 559 2,292 2,176
Impairment loss on investment securities — (731 ) — — (3,252 ) (731 ) (3,252 )
Net gain (loss) on sale of securities available for sale 3 (5,063 ) — 208 — (4,852 ) 5,532
Net (loss) gain on sale of loans (833 ) 4,326 2,826 1,553 873 7,872 1,932
All other income (loss) 3,398 2,351 (7,251 ) 2,376 2,460 874 7,492
Total noninterest income (loss) 4,930 3,181 (2,290 ) 6,295 2,448 12,116 23,915
Noninterest expense
Salaries and employee benefits 24,036 25,934 27,506 28,439 24,587 105,915 109,974
Occupancy and equipment 7,900 7,767 7,955 7,686 8,064 31,308 31,847
Professional fees (reimbursement) 2,611 1,463 (2,903 ) 11,041 6,206 12,212 33,652
Data processing 1,684 1,568 1,672 1,496 1,733 6,420 6,951
Advertising 2,227 2,090 2,048 2,057 3,371 8,422 12,664
Regulatory assessments 1,854 1,239 2,136 2,482 1,252 7,711 7,678
Reversal of loan repurchase reserves (360 ) (123 ) (61 ) (116 ) (122 ) (660 ) (2,488 )
Amortization of intangible assets 454 500 621 620 644 2,195 3,007
Restructuring expense (reversal) 1,626 — (158 ) 2,795 (105 ) 4,263 4,431
All other expenses 4,114 3,809 5,126 3,385 3,153 16,434 20,025
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships 46,146 44,247 43,942 59,885 48,783 194,220 227,741
Loss (gain) on investments in alternative energy partnerships 1,039 (940 ) (355 ) 1,950 786 1,694 5,044
Total noninterest expense 47,185 43,307 43,587 61,835 49,569 195,914 232,785
Income (loss) from continuing operations before income taxes 17,083 (19,751 ) 20,890 9,756 16,908 27,978 46,991
Income tax expense (benefit) 2,811 (5,619 ) 4,308 2,719 6,117 4,219 4,844
Income (loss) from continuing operations 14,272 (14,132 ) 16,582 7,037 10,791 23,759 42,147
Income from discontinued operations before income taxes — — — — 347 — 4,596
Income tax expense — — — — 100 — 1,271
Income from discontinued operations — — — — 247 — 3,325
Net income (loss) 14,272 (14,132 ) 16,582 7,037 11,038 23,759 45,472

11

EX. 99.1

Preferred stock dividends 3,540 3,403 4,308 4,308 4,308 15,559 19,504
Income allocated to participating securities 224 — 271 — — — —
Participating securities dividends 93 94 94 202 203 483 811
Impact of preferred stock redemption — 5,093 — — — 5,093 2,307
Net income (loss) available to common stockholders $ 10,415 $ (22,722 ) $ 11,909 $ 2,527 $ 6,527 $ 2,624 $ 22,850
Basic earnings (loss) per common share
Income (loss) from continuing operations $ 0.21 $ (0.45 ) $ 0.23 $ 0.05 $ 0.12 $ 0.05 $ 0.38
Income from discontinued operations — — — — 0.01 — 0.07
Net income (loss) $ 0.21 $ (0.45 ) $ 0.23 $ 0.05 $ 0.13 $ 0.05 $ 0.45
Diluted earnings (loss) per common share
Income (loss) from continuing operations $ 0.20 $ (0.45 ) $ 0.23 $ 0.05 $ 0.12 $ 0.05 $ 0.38
Income from discontinued operations — — — — 0.01 — 0.07
Net income (loss) $ 0.20 $ (0.45 ) $ 0.23 $ 0.05 $ 0.13 $ 0.05 $ 0.45
Weighted average number of common shares outstanding
Basic 50,699,915 50,882,227 50,857,137 50,676,722 50,651,805 50,621,785 50,623,222
Diluted 50,927,978 50,882,227 50,964,956 50,846,722 50,812,874 50,724,951 50,724,951
Dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.13 $ 0.13 $ 0.31 $ 0.52

12

EX. 99.1

Banc of California, Inc.

Selected Financial Data

(Unaudited)

Three Months Ended
December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Profitability and other ratios of consolidated operations
Return on average assets^(1)^ 0.71 % (0.64 )% 0.69 % 0.28 % 0.43 %
Return on average equity^(1)^ 6.20 % (5.83 )% 6.91 % 2.98 % 4.56 %
Return on average tangible common equity^(2)^ 6.46 % (12.49 )% 7.43 % 1.91 % 4.19 %
Dividend payout ratio^(3)^ 28.57 % (13.33 )% 26.09 % 260.00 % 100.00 %
Net interest spread 2.65 % 2.47 % 2.50 % 2.47 % 2.56 %
Net interest margin^(1)^ 3.04 % 2.86 % 2.86 % 2.81 % 2.88 %
Noninterest income (loss) to total revenue^(4)^ 8.00 % 5.12 % (3.66 )% 8.49 % 3.60 %
Noninterest income (loss) to average total assets^(1)^ 0.25 % 0.15 % (0.10 )% 0.25 % 0.10 %
Noninterest expense to average total assets^(1)^ 2.35 % 1.98 % 1.82 % 2.43 % 1.92 %
Efficiency ratio^(2)(5)^ 76.61 % 69.74 % 69.75 % 83.44 % 67.47 %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships^(2)(5)^ 74.03 % 70.11 % 67.84 % 83.00 % 67.09 %
Average loans held-for-investment to average deposits 108.50 % 105.92 % 104.38 % 100.45 % 97.40 %
Average securities available-for-sale to average total assets 10.48 % 12.71 % 13.58 % 17.00 % 19.85 %
Average stockholders’ equity to average total assets 11.47 % 11.06 % 10.02 % 9.29 % 9.38 %
(1) Ratios are presented on an annualized basis.
--- ---
(2) The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). See Non-GAAP measures section for reconciliation of the calculation.
--- ---
(3) The ratio is calculated by dividing dividends declared per common share by basic earnings per common share.
--- ---
(4) Total revenue is equal to the sum of net interest income before provision for loan losses and noninterest income (loss).
--- ---
(5) The ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan and lease losses and noninterest income (loss).
--- ---

13

EX. 99.1

Banc of California, Inc.

Selected Financial Data, Continued

(Dollars in thousands)

(Unaudited)

December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Loans and ALLL by loan origination type
Loan breakdown by origination type
Originated loans $ 5,510,242 $ 5,888,647 $ 6,181,583 $ 6,991,056 $ 7,105,171
Acquired loans not impaired at acquisition 441,643 494,612 537,987 566,144 595,702
Total loans $ 5,951,885 $ 6,383,259 $ 6,719,570 $ 7,557,200 $ 7,700,873
ALLL breakdown by origination type
Originated loans $ 56,175 $ 61,306 $ 58,135 $ 63,003 $ 61,255
Acquired loans not impaired at acquisition 1,474 1,621 1,388 882 937
Total ALLL $ 57,649 $ 62,927 $ 59,523 $ 63,885 $ 62,192
Discount on acquired loans not impaired at acquisition $ 8,071 $ 9,062 $ 10,680 $ 11,184 $ 11,645
Percentage of ALLL to:
Originated loans 1.02 % 1.04 % 0.94 % 0.90 % 0.86 %
Total loans 0.97 % 0.99 % 0.89 % 0.85 % 0.81 %

14

EX. 99.1

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

Three Months Ended
December 31, 2019 September 30, 2019 June 30, 2019
Average Yield Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost Balance Interest / Cost
Interest earning assets
Loans held-for-sale $ 23,527 $ 221 3.73 % $ 216,746 $ 1,894 3.47 % $ 47,233 $ 265 2.25 %
SFR mortgage 1,689,228 16,788 3.94 % 1,866,103 19,179 4.08 % 2,059,704 21,390 4.17 %
Commercial real estate, multifamily, and construction 2,633,342 32,763 4.94 % 2,717,609 33,343 4.87 % 3,406,672 39,659 4.67 %
Commercial and industrial, SBA, and lease financing 1,821,064 23,381 5.09 % 1,840,202 24,970 5.38 % 1,872,289 26,940 5.77 %
Other consumer 54,088 777 5.70 % 58,652 901 6.09 % 59,806 905 6.07 %
Gross loans and leases 6,221,249 73,930 4.71 % 6,699,312 80,287 4.75 % 7,445,704 89,159 4.80 %
Securities 833,726 7,812 3.72 % 1,105,499 10,024 3.60 % 1,304,876 12,457 3.83 %
Other interest-earning assets 330,950 1,960 2.35 % 362,613 2,346 2.57 % 342,908 2,424 2.84 %
Total interest-earning assets 7,385,925 83,702 4.50 % 8,167,424 92,657 4.50 % 9,093,488 104,040 4.59 %
Allowance for loan losses (61,642 ) (55,976 ) (63,046 )
BOLI and noninterest earning assets 630,308 584,190 580,133
Total assets $ 7,954,591 $ 8,695,638 $ 9,610,575
Interest-bearing liabilities
Savings $ 981,346 $ 3,889 1.57 % $ 1,055,086 $ 4,722 1.78 % $ 1,083,571 $ 4,950 1.83 %
Interest-bearing checking 1,546,322 4,234 1.09 % 1,511,432 4,483 1.18 % 1,580,165 4,554 1.16 %
Money market 743,695 2,593 1.38 % 755,114 3,093 1.63 % 853,007 3,902 1.83 %
Certificates of deposit 1,332,911 7,531 2.24 % 1,750,970 10,513 2.38 % 2,537,060 15,192 2.40 %
Total interest-bearing deposits 4,604,274 18,247 1.57 % 5,072,602 22,811 1.78 % 6,053,803 28,598 1.89 %
FHLB advances 1,020,478 6,396 2.49 % 1,333,739 8,519 2.53 % 1,287,121 8,289 2.58 %
Securities sold under repurchase agreements 2,223 15 2.68 % 1,922 13 2.68 % 2,173 16 2.95 %
Long-term debt and other interest-bearing liabilities 174,092 2,384 5.43 % 174,111 2,399 5.47 % 174,161 2,357 5.43 %
Total interest-bearing liabilities 5,801,067 27,042 1.85 % 6,582,374 33,742 2.03 % 7,517,258 39,260 2.09 %
Noninterest-bearing deposits 1,108,077 1,047,858 1,034,205
Noninterest-bearing liabilities 132,698 103,667 96,179
Total liabilities 7,041,842 7,733,899 8,647,642
Total stockholders’ equity 912,749 961,739 962,933
Total liabilities and stockholders’ equity $ 7,954,591 $ 8,695,638 $ 9,610,575
Net interest income/spread $ 56,660 2.65 % $ 58,915 2.47 % $ 64,780 2.50 %
Net interest margin 3.04 % 2.86 % 2.86 %
Ratio of interest-earning assets to interest-bearing liabilities 127.32 % 124.08 % 120.97 %
Total deposits $ 5,712,351 $ 18,247 1.27 % $ 6,120,460 $ 22,811 1.48 % $ 7,088,008 $ 28,598 1.62 %
Total funding ^(1)^ $ 6,909,144 $ 27,042 1.55 % $ 7,630,232 $ 33,742 1.75 % $ 8,551,463 $ 39,260 1.84 %
(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
--- ---

15

EX. 99.1

Three Months Ended
March 31, 2019 December 31, 2018
Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost
Interest earning assets
Loans held-for-sale ^(1)^ $ 31,374 $ 228 2.95 % $ 33,243 $ 221 2.64 %
SFR mortgage 2,312,900 24,062 4.22 % 2,260,205 23,585 4.14 %
Commercial real estate, multifamily, and construction 3,387,698 38,117 4.56 % 3,246,860 37,403 4.57 %
Commercial and industrial, SBA, and lease financing 1,920,220 27,235 5.75 % 1,791,708 26,219 5.81 %
Other consumer 62,558 916 5.94 % 68,479 990 5.74 %
Gross loans and leases 7,714,750 90,558 4.76 % 7,400,495 88,418 4.74 %
Securities 1,751,509 17,841 4.13 % 2,032,632 19,882 3.88 %
Other interest-earning assets 321,823 2,313 2.91 % 318,419 2,990 3.73 %
Total interest-earning assets 9,788,082 110,712 4.59 % 9,751,546 111,290 4.53 %
Allowance for loan losses (61,924 ) (58,099 )
BOLI and non-interest earning assets 575,559 544,302
Total assets $ 10,301,717 $ 10,237,749
Interest-bearing liabilities
Savings 1,201,802 5,480 1.85 % 1,279,155 5,663 1.76 %
Interest-bearing checking 1,554,846 4,525 1.18 % 1,666,884 4,916 1.17 %
Money market 887,538 4,128 1.89 % 803,157 3,168 1.56 %
Certificates of deposit 2,982,980 17,310 2.35 % 2,759,665 15,225 2.19 %
Total interest-bearing deposits 6,627,166 31,443 1.92 % 6,508,861 28,972 1.77 %
FHLB advances 1,422,100 9,081 2.59 % 1,447,348 9,068 2.49 %
Securities sold under repurchase agreements 2,350 18 3.11 % 3,116 25 3.18 %
Long-term debt and other interest-bearing liabilities 174,230 2,362 5.50 % 174,281 2,383 5.42 %
Total interest-bearing liabilities 8,225,846 42,904 2.12 % 8,133,606 40,448 1.97 %
Noninterest-bearing deposits 1,021,741 1,054,790
Non-interest-bearing liabilities 97,430 89,111
Total liabilities 9,345,017 9,277,507
Total stockholders’ equity 956,700 960,242
Total liabilities and stockholders’ equity $ 10,301,717 $ 10,237,749
Net interest income/spread $ 67,808 2.47 % $ 70,842 2.56 %
Net interest margin 2.81 % 2.88 %
Ratio of interest-earning assets to interest-bearing liabilities 118.99 % 119.89 %
Total deposits $ 7,648,907 $ 31,443 1.67 % $ 7,563,651 $ 28,972 1.52 %
Total funding ^(2)^ $ 9,247,587 $ 42,904 1.88 % $ 9,188,396 $ 40,448 1.75 %
(1) Includes loans held-for-sale of discontinued operations for the three months ended December 31, 2018.
--- ---
(2) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
--- ---

16

EX. 99.1

Year Ended
December 31, 2019 December 31, 2018
Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost
Interest earning assets
Loans held-for-sale ^(1)^ $ 80,074 $ 2,609 3.26 % $ 56,757 $ 1,109 1.95 %
SFR mortgage 1,979,957 81,419 4.11 % 2,207,689 91,188 4.13 %
Commercial real estate, multifamily, and construction 3,033,392 143,882 4.74 % 3,047,164 138,416 4.54 %
Commercial and industrial, SBA, and lease financing 1,863,108 102,526 5.50 % 1,716,631 95,115 5.54 %
Other consumer 58,752 3,498 5.95 % 80,359 4,109 5.11 %
Gross loans and leases 7,015,283 333,934 4.76 % 7,108,600 329,937 4.64 %
Securities 1,245,995 48,134 3.86 % 2,248,488 83,567 3.72 %
Other interest-earning assets 339,661 9,043 2.66 % 362,927 9,957 2.74 %
Total interest-earning assets 8,600,939 391,111 4.55 % 9,720,015 423,461 4.36 %
Allowance for loan losses (60,633 ) (54,777 )
BOLI and non-interest earning assets 592,674 559,675
Total assets $ 9,132,980 $ 10,224,913
Interest-bearing liabilities
Savings 1,079,778 19,040 1.76 % 1,156,292 17,971 1.55 %
Interest-bearing checking 1,548,067 17,797 1.15 % 1,812,980 18,261 1.01 %
Money market 809,295 13,717 1.69 % 994,103 13,146 1.32 %
Certificates of deposit 2,145,363 50,545 2.36 % 2,272,093 41,858 1.84 %
Total interest-bearing deposits 5,582,503 101,099 1.81 % 6,235,468 91,236 1.46 %
FHLB advances 1,264,945 32,285 2.55 % 1,627,608 34,995 2.15 %
Securities sold under repurchase agreements 2,166 62 2.86 % 39,336 1,033 2.63 %
Long-term debt and other interest-bearing liabilities 174,148 9,502 5.46 % 174,340 9,456 5.42 %
Total interest-bearing liabilities 7,023,762 142,948 2.04 % 8,076,752 136,720 1.69 %
Noninterest-bearing deposits 1,053,193 1,034,937
Non-interest-bearing liabilities 107,579 117,904
Total liabilities 8,184,534 9,229,593
Total stockholders’ equity 948,446 995,320
Total liabilities and stockholders’ equity $ 9,132,980 $ 10,224,913
Net interest income/spread $ 248,163 2.51 % $ 286,741 2.67 %
Net interest margin 2.89 % 2.95 %
Ratio of interest-earning assets to interest-bearing liabilities 122.45 % 120.35 %
Total deposits $ 6,635,696 $ 101,099 1.52 % $ 7,270,405 $ 91,236 1.25 %
Total funding ^(2)^ $ 8,076,955 $ 142,948 1.77 % $ 9,111,689 $ 136,720 1.50 %
(1) Includes loans held-for-sale of discontinued operations for the year ended December 31, 2018.
--- ---
(2) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
--- ---

17

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

Under Item 10(e) of SEC Regulation S-K, public companies disclosing financial measures in filings with the SEC that are not calculated in accordance with GAAP must also disclose, along with each non-GAAP financial measure, certain additional information, including a presentation of the most directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a statement of the reasons why the company's management believes that presentation of the non-GAAP financial measure provides useful information to investors regarding the company's financial condition and results of operations and, to the extent material, a statement of the additional purposes, if any, for which the company's management uses the non-GAAP financial measure.

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity, tangible common equity to tangible assets, and tangible common equity per common share 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 common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders' equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Adjusted efficiency ratio is calculated by subtracting loss on investments in alternative energy partnerships from noninterest expense and adding total pre-tax return, which includes the loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). 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 final 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.

18

EX. 99.1

December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 $ 10,630,067
Less goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less other intangible assets (4,151 ) (4,605 ) (5,105 ) (5,726 ) (6,346 )
Tangible assets^(1)^ $ 7,787,115 $ 8,583,588 $ 9,317,682 $ 9,843,655 $ 10,586,577
Total stockholders' equity $ 907,245 $ 900,988 $ 963,544 $ 948,325 $ 945,534
Less goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less other intangible assets (4,151 ) (4,605 ) (5,105 ) (5,726 ) (6,346 )
Tangible equity^(1)^ 865,950 859,239 921,295 905,455 902,044
Less preferred stock (189,825 ) (189,825 ) (231,128 ) (231,128 ) (231,128 )
Tangible common equity^(1)^ $ 676,125 $ 669,414 $ 690,167 $ 674,327 $ 670,916
Total stockholders' equity to total assets 11.59 % 10.45 % 10.29 % 9.59 % 8.89 %
Tangible equity to tangible assets^(1)^ 11.12 % 10.01 % 9.89 % 9.20 % 8.52 %
Tangible common equity to tangible assets^(1)^ 8.68 % 7.80 % 7.41 % 6.85 % 6.34 %
Common shares outstanding 50,413,681 50,406,763 50,397,769 50,315,490 50,172,018
Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321
Total common shares outstanding 50,891,002 50,884,084 50,875,090 50,792,811 50,649,339
Tangible common equity per common share^(1)^ $ 13.29 $ 13.16 $ 13.57 $ 13.28 $ 13.25
Book value per common share $ 14.10 $ 13.98 $ 14.40 $ 14.12 $ 14.10

(1)Non-GAAP measure.

19

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Return on tangible common equity
Average total stockholders' equity $ 912,749 $ 961,739 $ 962,933 $ 956,700 $ 960,242
Less average preferred stock (189,824 ) (213,619 ) (231,128 ) (231,128 ) (231,128 )
Less average goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less average other intangible assets (4,441 ) (4,935 ) (5,503 ) (6,128 ) (6,731 )
Average tangible common equity^(1)^ $ 681,340 $ 706,041 $ 689,158 $ 682,300 $ 685,239
Net income (loss) $ 14,272 $ (14,132 ) $ 16,582 $ 7,037 $ 11,038
Less preferred stock dividends and impact of preferred stock redemption (3,540 ) (8,496 ) (4,308 ) (4,308 ) (4,308 )
Add amortization of intangible assets 454 500 621 620 644
Less tax effect on amortization and impairment of intangible assets (95 ) (105 ) (130 ) (130 ) (135 )
Net income (loss) available to common stockholders^(1)^ $ 11,091 $ (22,233 ) $ 12,765 $ 3,219 $ 7,239
Return on average equity 6.20 % (5.83 )% 6.91 % 2.98 % 4.56 %
Return on average tangible common equity^(1)^ 6.46 % (12.49 )% 7.43 % 1.91 % 4.19 %
Statutory tax rate utilized for calculating tax effect on amortization of intangible assets 21.00 % 21.00 % 21.00 % 21.00 % 21.00 % Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Adjusted efficiency ratio including the pre-tax effect of <br> investments in alternative energy partnerships
Noninterest expense $ 47,185 $ 43,307 $ 43,587 $ 61,835 $ 49,578
(Loss) gain on investments in alternative energy partnerships (1,039 ) 940 355 (1,950 ) (786 )
Adjusted noninterest expense^(1)^ $ 46,146 $ 44,247 $ 43,942 $ 59,885 $ 48,792
Net interest income $ 56,660 $ 58,915 $ 64,780 $ 67,808 $ 70,842
Noninterest income 4,930 3,181 (2,290 ) 6,295 2,644
Total revenue 61,590 62,096 62,490 74,103 73,486
Tax credit from investments in alternative energy partnerships 1,689 77 1,680 — —
Deferred tax expense on investments in alternative energy partnerships (177 ) (8 ) (176 ) — —
Tax effect on tax credit and deferred tax expense 267 7 426 — 26
(Loss) gain on investments in alternative energy partnerships (1,039 ) 940 355 (1,950 ) (786 )
Total pre-tax adjustments for investments in alternative energy partnerships 740 1,016 2,285 (1,950 ) (760 )
Adjusted total revenue^(1)^ $ 62,330 $ 63,112 $ 64,775 $ 72,153 $ 72,726
Efficiency ratio^(1)^ 76.61 % 69.74 % 69.75 % 83.44 % 67.47 %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships^(1)^ 74.03 % 70.11 % 67.84 % 83.00 % 67.09 %
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense 15.00 % 9.36 % 22.07 % 27.00 % 27.42 %

(1)Non-GAAP measure.

(2)2018 balances includes income from discontinued operations.

20

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 December 31, <br>2018
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships $ 46,146 $ 44,247 $ 43,942 $ 59,885 $ 48,783
Loss (gain) on investments in alternative energy partnerships 1,039 (940 ) (355 ) 1,950 786
Total noninterest expense 47,185 43,307 43,587 61,835 49,569
Adjustment for non-core items
Data processing — — (797 ) — —
Professional fees 3,557 2,615 6,214 (2,979 ) 2,711
Restructuring (expense) reversal (1,626 ) — 158 (2,795 ) 105
Other expenses — (131 ) — — 585
Total 49,116 45,791 49,162 56,061 52,970
(Loss) gain on investments in alternative energy partnerships (1,039 ) 940 355 (1,950 ) (786 )
Total operating expense $ 48,077 $ 46,731 $ 49,517 $ 54,111 $ 52,184

(1)Non-GAAP measure.

21

q42019investorpresentati

Investor Presentation 2019 Fourth Quarter Earnings January 23, 2020

Forward Looking Statements When used in this presentation and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the "Safe- Harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements. These statements may relate to future financial performance, strategic plans or objectives, revenue, expense or earnings projections, or other financial items of Banc of California Inc. and its affiliates (“BANC,” the “Company,” “we,” “us” or “our”). By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.  Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (i) the costs and effects of litigation generally, including legal fees and other expenses, settlements and judgments; (ii) the risk that our performance may be adversely affected by the CEO and CFO transition we have recently undergone; (iii) the risk that the benefits we realize from exiting the third party mortgage origination and brokered single-family residential lending business will be less than anticipated and that the costs we incur from exiting that business will be greater than anticipated; (iv) the risk that we will not be successful in the implementation of our capital utilization strategy and our other strategies for transitioning to a traditional community bank; (v) risks that the Company’s merger and acquisition transactions may disrupt current plans and operations and lead to difficulties in customer and employee retention, risks that the costs, fees, expenses and charges related to these transactions could be significantly higher than anticipated and risks that the expected revenues, cost savings, synergies and other benefits of these transactions might not be realized to the extent anticipated, within the anticipated timetables, or at all; (vi) 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 but not limited to the effectiveness of our underwriting practices and the risk of fraud, any of which credit and operational risks may lead to increased loan and lease delinquencies, losses and nonperforming assets in our loan and lease portfolio, and may result in our allowance for loan and lease losses not being adequate to cover actual losses and require us to materially increase our loan and lease loss reserves; (vii) the quality and composition of our securities portfolio; (viii) changes in general economic conditions, either nationally or in our market areas, or changes in financial markets; (ix) continuation of or changes in the short-term interest rate environment, changes in the levels of general interest rates, volatility in the interest rate environment, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin and funding sources; (x) fluctuations in the demand for loans and leases, the number of unsold homes and other properties and fluctuations in commercial and residential real estate values in our market area; (xi) our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities; (xii) results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, restrict our ability to invest in certain assets, increase our allowance for loan and lease losses, write-down asset values or increase our capital levels, affect our ability to borrow funds or maintain or increase deposits, or impose fines, penalties or sanctions, any of which could adversely affect our liquidity and earnings; (xiii) legislative or regulatory changes that adversely affect our business, including, without limitation, changes in tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (xiv) our ability to control operating costs and expenses; (xv) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (xvi) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xviii) the network and computer systems on which we depend could fail or experience a security breach, including but not limited to, due to cybersecurity threats; (xix) our ability to attract and retain key members of our senior management team; (xx) increased competitive pressures among financial services companies; (xxi) changes in consumer spending, borrowing and saving habits; (xxii) the effects of severe weather, natural disasters, acts of war or terrorism and other external events on our business; (xxiii) the ability of key third-party providers to perform their obligations to us; (xxiv) changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board or their application to our business, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; (xxv) the transition to a new accounting standard adopted by the Financial Accounting Standards Board, referred to as Current Expected Credit Loss, which will require financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and provide for the expected credit losses as allowances for loan losses; (xxvi) share price volatility and reputational risks, related to, among other things, speculative trading and certain traders shorting our common shares and attempting to generate negative publicity about us; (xxvii) war or terrorist activities; and (xxviii) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described from time to time in other documents that we file with or furnish to the SEC. 1

Fourth Quarter 2019 Results Execution in key areas of business driving strategic transformation • NIM expanded 18bps to 3.04% Expanded Net • Cost of total deposits declined 21bps to 1.27% Interest Margin • Total cost of funds improved 20bps to 1.55% • Average DDA balances increased $95 million, up 3.7% from prior quarter • Demand deposits at 48% of total deposits, up from 33% one year ago • Brokered deposits declined $83.1 million in the fourth quarter and $1.70 billion in 2019 • FHLB advances declined $455.0 million in the fourth quarter and $325.0 million in 2019 Optimized Balance • Single family residential mortgage and multifamily loans at 51.8% of the total Sheet held–for–investment loan portfolio, down from 59.1% one year ago • Investments at 11.7% of total assets; lowered portfolio duration through $39 million in sales and $195.3 million in new securities purchases; CLOs represent 79% of total investments • Better-than-targeted recurring quarterly core operating expenses, which totaled $48.2 million1 Continued Expense • Noninterest expenses totaled $47.2 million, down 5% from one year ago Management • Non-core net benefit of $2.0 million included in noninterest expense, of which a $3.6 million non- core benefit related to ongoing legal and indemnification matters Strong Credit • Criticized and classified loans decreased by $25.8 million during the quarter • NPLs decreased $1.8 million to $43.4 million and represent 0.73% of Loans2 and Capital • Common Equity Tier 1 ratio of 11.56%; TCE / TA ratio increased 88 bps to 8.68%1 • Welcomed Lynn Hopkins as Executive Vice President, Chief Financial Officer Management & • Welcomed James “Conan” Barker and Andrew Thau to the Board of Directors Corporate • On December 19, 2019, the Company was informed that SEC staff has concluded the Governance investigation begun in January 2017, and they do not intend to recommend any enforcement action against the Company to the SEC 1 Non-GAAP measure; Reconciliation on slides 18 and 20 2 2 Held-for-investment

Successful Execution on Three Strategic Drivers for 2019 Relationship-Based Strategy Enhances Franchise Value Lower Deposit Costs through Relationship Focus • Cost of total deposits decreased 21 basis points during the fourth quarter, and 40 basis points since the first quarter, with non-interest bearing deposits comprising over 20% of total deposits • Reduced average cost of high-cost retail CDs to 2.24%, down 14 basis points from prior quarter • Transactional brokered deposits reduced from $1.7 billion at Dec. 31, 2018 to $10 million at the end of 2019 Right-Size the Balance Sheet • Exited brokered SFR business • Re-mixed and optimized the securities portfolio through opportunistic transactions to improve overall performance; improved cash flow structure and reduced price volatility • Used proceeds from asset sales to reduce reliance on wholesale funding • Executed on strategic capital allocation strategies including completion of $46 million preferred stock tender in the third quarter Reduce Expense Burden by Realizing Operational Efficiencies • Better expense efficiency through prudent vendor and resource management • Total noninterest expenses reduced by 16% during 2019 • Technology investments during the year contribute to better client service and improved efficiency 3

Right-Sizing the Balance Sheet: Funding Sources Portfolio Mix Shifting Towards Lower Costing, Less Transactional Deposits Reduced Reliance on Wholesale Funding 4Q18 4Q19 FHLB Demand FHLB 16% Deposit 18% Checking Demand 27% Deposit Brokered Checking CDs 40% Non-Brokered 16% CDs 18% Savings/ Non- Savings/ Money Brokered Money Market CDs Market 23% 18% 24% $9.44 billion $6.62 billion Highlights • Continued opportunity to reduce cost of funding • Brokered CDs and FHLB Advances 36% at 4Q19 vs. 50% at 4Q18 • $1.54 billion reduction in Brokered CDs • $325.0 million reduction in FHLB Advances • $450.6 million reduction in Non-Brokered CDs 1 Dollars in millions 4

Deposit Base Showing Effects of Transformation Relationship Based Approach Expected to Reduce Future Cost of Deposits Higher Mix of Noninterest-Bearing Deposits Driving 21bps Decrease in Cost of Deposits Deposit Composition 1.67% 1.62% 1.52% 1.48% 1.27% 20.9% 21.8% 23.5% 23.7% 22.2% 6.0% 0.9% 19.5% 16.8% 29.5% 30.1% 29.6% 27.0% 26.5% 26.1% 28.2% 25.1% 19.7% 20.4% 19.2% 20.1% 12.9% 14.5% 15.8% 4Q18 1Q19 2Q19 3Q19 4Q19 Noninterest-bearing DDA Interest-bearing DDA Savings and Money Market Brokered CDs CDs Cost of Deposits 5

Right-Sizing the Balance Sheet: Earning Assets Shifted Balance Sheet Mix Into Higher Interest Earning Assets 4Q18 4Q19 Other loans Other loans Securities 1% 1% Securities Other 13% 20% C&I Other 6% 20% 4% C&I 24% SFR 22% CRE SFR 11% 23% CRE 14% MF MF 20% 22% $10.14 billion $7.29 billion Highlighted Annual Portfolio Changes Shifted balance sheet into higher-yielding earning assets • Loan portfolio mix trending toward high-yielding, relationship-based loans – Exited the third party mortgage origination (“TPMO”) and brokered Single Family Residential Lending business • Securities repositioned into higher-yielding, shorter duration portfolio 6

Relationship Lending Focus Enhances Franchise Value Emphasizing Better Margin, Relationship Lending to Drive Yield and Deposits HFI Loan Production Yields vs. Portfolio Yields1 5.26% 5.29% 5.25% 5.10% 4.82% 4.74% 4.76% 4.80% 4.75% 4.71% 2.50% 2.50% 2.50% 2.00% 1.75% $7,700 $7,558 $70 $63 $6,720 $1,071 $1,077 $6,384 $61 $59 $5,952 $1,066 $1,120 $54 $2,013 $1,982 $1,050 $2,033 $1,865 $1,762 $2,241 $2,333 $1,599 $1,564 $1,495 $2,305 $2,103 $1,961 $1,776 $1,591 4Q18 1Q19 2Q19 3Q19 4Q19 SFR MF C&I CRE2 Other Consumer Portfolio Loan Yields New Production Loan Yields Fed Funds Rate Total Loan Production 1 Dollars in millions 7 2 CRE includes Construction

Net Interest Margin Showing Continued Improvement Lower Cost of Funds and Flat Earning Assets Yield Expands NIM by 18 basis points Average Interest-Earning Assets1,2 Net Interest Margin Drivers 4.59% 4.59% $9.7 $9.8 4.53% 4.50% 4.50% $0.3 $0.3 $9.0 $0.3 $2.0 $1.8 $8.0 $1.3 $0.4 $7.3 $1.1 $0.3 $0.8 3.04% 2.88% 2.81% 2.86% 2.86% $7.4 $7.7 $7.4 $6.5 $6.2 2.50% 2.50% 2.50% 2.00% 1.75% 1.88% 1.75% 1.84% 1.75% 1.55% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 HFI Loans Securities Other Earning Asset Yield Net Interest Margin Cost of Funds Fed Funds Rate The overall earning asset mix and the portfolio mix within loans and securities holds earning asset yield at 4.50% while market interest rates have declined. 1 Dollars in billions 2 Other includes loans held-for-sale and other interest-earnings assets 8 3 Dollars in millions, consolidated operations

Overall Asset Quality Remains Stable Relationship Banking Focus Increases Asset Underwriting Transparency NPLs & OREO1 Total Delinquent Loans / Total Loans 0.71% 0.73% 0.37% 0.43% $59.5 0.29% $56.3 $57.6 $45.2 $43.4 $52.2 $28.1 $28.8 $22.3 $40.5 0.97% 0.88% 0.79% 0.78% 0.53% 4Q18 1Q19 2Q19 3Q19 4Q19 NPLs & OREO NPLs & OREO / Loans Receivable 4Q18 1Q19 2Q19 3Q19 4Q19 ALLL2 and NPL Coverage • Classified/criticized loans decreased $25.8 million to 282% $169.5 million 224% 207% • Q4 NPL balance includes two large loans that make up 139% 133% 54% of NPLs – $14 million shared national credit added in Q3, – $9 million SFR loan with 38% LTV added in Q4 0.99% 0.97% 0.81% 0.85% 0.89% • Excluding these 2 loans, NPLs total $20 million, and approximately 48% are SFRs 4Q18 1Q19 2Q19 3Q19 4Q19 • Delinquent loans includes – $5 million C&I loan with a real estate developer that is expected to be worked out added in Q4 ALLL / Total Loans ALLL / NPLs – SFR loans represent 75% of the total delinquent loans – Other segments reflect continuing positive results 1 NPL: Non-performing loans. OREO: Other real estate owned. Dollars in millions, held for investment 9 2 ALLL: Allowance for loan and lease losses

Expense Control Showing Continued Progress Simplifying Operating Model and Delivering Operational Efficiencies Non-Core Adjustments to Reported Operating Expenses NIE / Average Assets $61.8 Q4 '19 $49.6 $47.2 $43.6 Noninterest Non-Core Core $43.3 ($ in millions) Expenses - 1 Operating Reported Adjustments Expenses 1 Salaries and employee benefits $ 24.0 $ — $ 24.0 2.40% 2.37% 1.94% 1.99% Occupancy and equipment 7.9 — 7.9 1.81% Professional fees 2.6 3.6 6.2 Data processing 1.7 — 1.7 Advertising 2.2 — 2.2 4Q18 1Q19 2Q19 3Q19 4Q19 Regulatory assessments 1.9 — 1.9 Reversal of provision for loan 3 repurchases (0.4) — (0.4) Core Operating Expense / Average Assets Amortization of intangible assets 0.5 — 0.5 Restructuring expense 1.6 (1.6) — $52.2 $54.1 All other expense 4.1 — 4.1 $49.5 $46.7 $48.1 Total Noninterest Expense (ex- loss on investments in $ 46.1 $ 2.0 48.1 alternative energy partnerships) Loss on investments in alternative energy partnerships2 1.0 Total Noninterest Expense $ 47.2 2.42% (reported) 2.04% 2.10% 2.06% 2.15% 3 4Q18 1Q19 2Q19 3Q19 4Q19 1 Core adjustments to noninterest expense to arrive at core operating expense. Non-GAAP measure: Reconciliation table above 2 Loss on investments in alternative energy partnerships create tax credits to offset expense incurred 10 3 Operating expense, annualized, over average consolidated assets. Operating expense in millions

Developing Recurring and Sustainable Earnings Profile Q4 Included some Non-Core Adjustments to Reported Operations ($ in millions, except for EPS) Amount Per Diluted Share Net income available to common stockholders $ 10.4 $ 0.20 Adjustments: Noninterest expense (0.9) Income tax impact at 24% normalized rate (0.2) Total adjustments1 (1.1) $ (0.02) Q4 Earnings from Core Operations2 $ 9.3 $ 0.18 Diluted EPS – Adjusted Operations2 $0.30 $0.25 Adjusted for $0.20 non-core items $0.20 $0.18 Reported $0.15 $(0.02) $0.10 $0.05 $0.00 4Q19 Adjustments 4Q19 Adjusted 1 Includes $3.6M of insurance recovery, $1.6M of restructuring expense, $1M loss on investments in alternative energy partnerships, income tax expense required to reach a normalized rate of 24%, and other non-core items 11 2 Non-GAAP measure; Reconciliation table above

Strong Capital Base Capital Ratios Reflective of Effective Capital Management Activities Common Equity Tier 1 Ratio1 Tier 1 Risk-Based Capital Ratio1 11.6% 10.5% 10.3% 9.5% 9.7% 14.0% 14.8% 12.8% 13.0% 13.3% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Tangible Equity / Tangible Assets2 Tangible Common Equity / Tangible Assets2 8.7% 11.1% 7.8% 9.9% 10.0% 7.4% 9.2% 6.9% 8.5% 6.3% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 1 Capital ratios are preliminary at December 31, 2019. 12 2 Non-GAAP measure. Reconciliation on slide 18

Securities Portfolio Balances, Composition and Yields Portfolio Repositioned in 4Q19 Securities Portfolio Detail1 Amortized Cost Amortized Cost Book Yield Duration 4Q19 Security Type 3Q19 4Q19 4Q19 Change Fair Value 4Q19 4Q19 (years) Agency securities 40.6 129.3 88.7 128.0 2.39% 3.48 Municipal securities — 53.0 53.0 52.7 2.79% 9.62 Corporate debt securities — 13.5 13.5 13.6 4.11% 4.46 CLOs 748.6 733.6 (15.0) 718.4 3.62% 0.07 Total Securities $ 789.2 $ 929.4 $ 140.2 $ 912.6 3.40% 1.16 Portfolio Profile1 Portfolio Average Balances and Yields2 Credit Rating Composition BBB 1.5% Gov't AGC - 14% $2.0 $1.8 AAA 18.5% Municipal - 6% $1.3 Corporate - 1% $1.1 4.13% $0.8 3.88% 3.83% AA 3.72% 3.60% 80.0% CLO - 79% 4Q18 1Q19 2Q19 3Q19 4Q19 1 Dollars in millions 13 2 Dollars in billions

BANC Fast Facts & Preferred Equity Capital Structure (Dollars in millions1) 4Q19 3Q19 2Q19 1Q19 4Q18 Total assets $ 7,828 $ 8,625 $ 9,360 $ 9,887 $ 10,630 Securities available-for-sale 913 776 1,168 1,471 1,993 Loans receivable 5,952 6,383 6,720 7,557 7,701 Total deposits 5,427 5,770 6,292 7,725 7,917 Net interest income 56.7 58.9 64.8 67.8 70.7 Provision for loan losses (2.7) 38.5 (2.0) 2.5 6.7 Total noninterest income (loss) 4.9 3.2 (2.3) 6.3 2.4 Noninterest expense3,4 46.1 44.2 43.9 59.9 48.8 (Gain) loss on investments in alternative energy partnerships 1.0 (0.9) (0.4) 2.0 0.8 Total noninterest expense 47.2 43.3 43.6 61.8 49.6 Net (loss) income 14.3 (14.1) 16.6 7.0 11.0 Preferred dividend and other adjustments 3.9 8.6 4.7 4.5 4.5 Net (loss) income available to common stockholders $ 10.4 $ (22.7) $ 11.9 $ 2.5 $ 6.5 Diluted (loss) earnings per common share $ 0.20 $ (0.45) $ 0.23 $ 0.05 $ 0.13 Return on average assets2 0.71% (0.64)% 0.69% 0.28% 0.43% Adjusted efficiency ratio2,5 74.03% 70.11 % 67.84% 83.00% 67.09% Class / Amount Out Dividend Rate / Preferred Equity Series CUSIP Issue Date ($000) Coupon (%) First Callable Date Preferred Equity: Non-Cumulative, Perpetual D 05990K882 4/8/2015 100,477 7.375% 6/15/2020 Preferred Equity: Non-Cumulative, Perpetual E 05990K874 2/8/2016 96,629 7.000% 3/15/2021 Total Preferred Equity 197,106 1 All figures from reported operations unless noted; dollars in millions unless noted per share or percentage 2 Consolidated operations; Efficiency ratio adjusted for including the pre-tax effect of investments in alternative energy partnerships 3 Excluding loss on investments in alternative energy partnerships 4 Non-GAAP measure. Reconciliation within table above 14 5 Non-GAAP measure. Reconciliation on slide 18 6 Includes preferred stock dividends, income allocated to participating securities and dividends and impact of preferred redemption

Appendix

Non-GAAP Financial Information This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include noninterest expense from Core operations, operating expense from Core operations, noninterest expense to average assets, and diluted earnings per common share from Core operations, adjusted for non- core items, each excluding loss on investments in alternative energy partnerships and the latter three adjusted for non-core items. Management believes that these particular measures provide useful supplemental information in understanding our core operating performance. These measures should not be viewed as substitutes for measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 2, 10-12, 14, 17-20 of this presentation. Non-GAAP measures in this presentation also include tangible equity to tangible assets, tangible common equity to tangible assets, return on average tangible common equity, and adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships. These particular measures are used by management in its analysis of the Company's capital strength and the performance of the Company’s businesses. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of these measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial strength of the Company and the performance of its businesses. These measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 17-20 of this presentation. 16

Non-GAAP Reconciliation Adjusted Efficiency Ratio Including the Pre-tax Effect of Investments in Alternative Energy Partnerships (Dollars in thousands) 4Q19 3Q19 2Q19 1Q19 4Q18 Noninterest expense $ 47,185 $ 43,307 $ 43,587 $ 61,835 $ 49,578 (Loss) gain on investments in alternative energy partnerships (1,039) 940 355 (1,950) (786) Adjusted noninterest expense 46,146 44,247 43,942 59,885 48,792 Net interest income 56,660 58,915 64,780 67,808 70,842 Noninterest income (loss) 4,930 3,181 (2,290) 6,295 2,644 Total revenue 61,590 62,096 62,490 74,103 73,486 Tax credit from investments in alternative energy partnerships 1,689 77 1,680 — — Deferred tax expense on investments in alternative energy partnerships (177) (8) (176) — — Tax effect on tax credit and deferred tax expense 267 7 426 — 26 Gain (loss) on investments in alternative energy partnerships (1,039) 940 355 (1,950) (786) Total pre-tax adjustments for investments in alternative energy partnerships 740 1,016 2,285 (1,950) (760) Adjusted total revenue $ 62,330 $ 63,112 $ 64,775 $ 72,153 $ 72,726 Efficiency Ratio 76.61% 69.74% 69.75% 83.44% 67.47% Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships 74.03% 70.11% 67.84% 83.00% 67.09% Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense 15.00% 9.36% 22.07% 27.00% 27.42% 17

Non-GAAP Reconciliation Tangible Common Equity to Tangible Assets and Tangible Equity to Tangible Assets (Dollars in thousands) 4Q19 3Q19 2Q19 1Q19 4Q18 Tangible Common Equity to Tangible Assets Ratio Total assets $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 $ 10,630,067 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (4,151) (4,605) (5,105) (5,726) (6,346) Tangible assets $ 7,787,115 $ 8,583,588 $ 9,317,682 $ 9,843,655 $ 10,586,577 Total stockholders' equity $ 907,245 $ 900,988 $ 963,544 $ 948,325 $ 945,534 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (4,151) (4,605) (5,105) (5,726) (6,346) Tangible equity 865,950 859,239 921,295 905,455 902,044 Less: preferred stock (189,825) (189,825) (231,128) (231,128) (231,128) Tangible common equity $ 676,125 $ 669,414 $ 690,167 $ 674,327 $ 670,916 Total stockholders' equity to total assets 11.59% 10.45% 10.29% 9.59% 8.89% Tangible equity to tangible assets 11.12% 10.01% 9.89% 9.20% 8.52% Tangible common equity to tangible assets 8.68% 7.80% 7.41% 6.85% 6.34% 18

Non-GAAP Reconciliation Return on Average Tangible Common Equity (Dollars in thousands) 4Q19 3Q19 2Q19 1Q19 4Q18 Return on tangible common equity Average total stockholders' equity $ 912,749 $ 961,739 $ 962,933 $ 956,700 $ 960,242 Less: Average preferred stock (189,824) (213,619) (231,128) (231,128) (231,128) Less: Average goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: Average other intangible assets (4,441) (4,935) (5,503) (6,128) (6,731) Average tangible common equity $ 681,340 $ 706,041 $ 689,158 $ 682,300 $ 685,239 Net (loss) income $ 14,272 $ (14,132) $ 16,582 $ 7,037 $ 11,038 Less: Preferred stock dividends and impact of preferred stock redemption (3,540) (8,496) (4,308) (4,308) (4,308) Add: Amortization of intangible assets 454 500 621 620 644 Less: Tax effect on amortization of intangible assets (95) (105) (130) (130) (135) Net (loss) income available to common stockholders $ 11,091 $ (22,233) $ 12,765 $ 3,219 $ 7,239 Return on average equity 6.20 % (5.83)% 6.91% 2.98% 4.56% Return on average tangible common equity 6.46 % (12.49)% 7.43% 1.91% 4.19% Statutory tax rate utilized for calculating tax effect on amortization of intangible assets 21.00 % 21.00% 21.00% 21.00% 21.00% 19

Non-GAAP Reconciliation Noninterest Expense / Average Assets (Dollars in millions) 4Q19 3Q19 2Q19 1Q19 4Q18 Operating Expense (NIE) Total noninterest expense $ 47.2 $ 43.3 $ 43.6 $ 61.8 $ 49.6 Less: gain/(loss) on investments in alternative energy partnerships (1.0) 0.9 0.4 (2.0) (0.8) Less: non-core items 2.0 2.5 5.6 (5.8) 3.4 Salary and employee benefits — — — — — Data processing fees — — (0.8) — — Professional fees 3.6 2.6 6.2 (3.0) 2.7 Restructuring expense (1.6) — 0.2 (2.8) 0.1 Other expense — (0.1) — — 0.6 Total operating expense (NIE) $ 48.2 $ 46.7 $ 49.6 $ 54.0 $ 52.2 Total operating expense (NIE) — annualized $ 192.8 $ 186.8 $ 198.1 $ 216.1 $ 208.6 NIE1 / Average Assets 2.42% 2.15% 2.06% 2.10% 2.04% 1 Operating expense, annualized, over average consolidated assets 20

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