8-K - BANC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 20, 2022

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-35522	04-3639825
(State or other jurisdiction<br>of incorporation)	(Commission File Number)	(IRS Employer<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

Item 2.02 Results of Operations and Financial Condition.

On October 20, 2022, Banc of California, Inc. (the “Company”) issued a press release announcing 2022 third quarter 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 third quarter results at 10:00 A.M. Pacific Time on Thursday, October 20, 2022. Interested parties may attend the conference call by dialing (888) 317-6003, and referencing event code 6394121. 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Banc of California, Inc. Press Release dated October 20, 2022.

99.2 Banc of California, Inc. Earnings Conference Call Presentation Materials dated October 20, 2022.

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.

October 20, 2022	/s/ Lynn M. Hopkins
	Lynn M. Hopkins
	Executive Vice President and Chief Financial Officer

Document

Banc of California Reports Strong Profitability and Continued Growth in Noninterest-bearing Deposits for Third Quarter 2022

SANTA ANA, Calif., (October 20, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income and net income available to common stockholders of $24.2 million, or $0.40 per diluted common share, for the third quarter of 2022. This compares to net income and net income available to common stockholders of $26.7 million, or $0.43 per diluted common share, for the second quarter of 2022. The third quarter includes pre-tax transaction costs of $2.1 million related to the Deepstack acquisition.

Third quarter highlights:

•Acquisition of Deepstack Technologies completed on September 15, 2022

•Adjusted diluted EPS of $0.44

•Return on average assets of 1.02%

•Adjusted return on average assets of 1.13%

•Pre-tax pre-provision return on average assets of 1.44%

•Adjusted pre-tax pre-provision return on average assets of 1.59%

•Net interest margin of 3.58%

•Noninterest-bearing deposits increased $117.0 million or 17% annualized to represent 40% of total quarter end deposits

•Average cost of total deposits of 0.47%

•Allowance for credit losses at 1.36% of total loans and 232% of non-performing loans, up from 1.34% and 224% in the prior quarter

•Repurchased $13.0 million of common stock during the quarter and $63.7 million cumulatively this year through October 18

Jared Wolff, President & CEO of Banc of California, commented, "During the third quarter, we executed further on the areas that drive franchise value. Our stable noninterest-bearing deposit base continued to expand, as noninterest-bearing deposits grew $117.0 million hitting 40% of total deposits at the end of the quarter. Our margin held up, even as we locked in some longer-term fixed-rate funding, and core loan growth outside of warehouse continued at a double digit annualized pace. Our core earnings power remained consistent in a challenging operating environment and we expect our asset sensitivity to support earnings growth going forward."

Mr. Wolff continued, “While we continued to deliver strong financial results for shareholders in the third quarter, we also took another significant step in building long-term franchise value with our acquisition of Deepstack Technologies and entry into the payments processing business. Our payments business adds a high value solution that will further enhance the banking experience we provide to clients, and as we scale this business over the next few years, we expect it to become a consistent source of high margin fee income and noninterest-bearing deposits that will be another catalyst for generating consistent and profitable growth.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “During the third quarter, our net interest margin remained constant as we managed changes in the mix of earning assets, including lower warehouse balances, and the mix of funding sources as we strategically replaced certain higher costing deposits with longer-term fixed-rate funding. We believe our longer-term fixed-rate funding and noninterest-bearing deposits growth will improve our ability to manage our funding costs and expand our margin as we expect to see rising interest rates. In an operating environment that makes it challenging for banks to grow tangible book value, excluding our use of capital from the acquisition of Deepstack, we have protected and grown our tangible book value while also repurchasing 5% of our common shares this year. We also saw positive trends in credit quality with declines in non-performing loans and non-performing assets.”

Acquisition of Deepstack Technologies

On September 15, 2022, the Company completed its acquisition of the payments platform and technology of Global Payroll Gateway, Inc. and its wholly owned subsidiary, Deepstack Technologies, LLC (collectively, "Deepstack") for $24 million in cash and stock. Deepstack is a differentiated software-led and e-commerce payments platform that provides clients with payment solutions, including merchant processing, payments acceptance and disbursements, tokenization, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services. Deepstack advances Banc of California's goal to be the hub of the financial services ecosystem for clients while creating another driver of profitable long-term growth and franchise value including:

•Scalable, meaningful fee-based income

•New clients in verticals attractive to Banc of California

•New source of noninterest-bearing deposits

The Deepstack acquisition is accounted for as a business combination under U.S. GAAP and initial estimates of the fair value of identifiable intangible assets acquired are reflected in the Company's balance sheet as of September 30, 2022.

Income Statement Highlights

	Three Months Ended									Nine Months Ended
	September 30,2022	June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021		September 30,<br>2022		September 30,<br>2021
	( in thousands)
Total interest and dividend income		$	88,418	$	84,269	$	81,573	$	71,791	$	268,660	$	210,086
Total interest expense	16,565	10,119		7,828		8,534		8,815		34,512		29,347
Net interest income	79,408	78,299		76,441		73,039		62,976		234,148		180,739
Total noninterest income	5,681	7,186		5,910		5,605		5,519		18,777		13,771
Total revenue	85,089	85,485		82,351		78,644		68,495		252,925		194,510
Total noninterest expense	50,962	48,612		46,596		58,872		37,811		146,170		124,806
Pre-tax / pre-provision income(1)	34,127	36,873		35,755		19,772		30,684		106,755		69,704
Provision for (reversal of) credit losses	—	—		(31,542)		11,262		(1,147)		(31,542)		(4,408)
Income tax expense	9,931	10,161		18,785		2,759		8,661		38,877		17,517
Net income		$	26,712	$	48,512	$	5,751	$	23,170	$	99,420	$	56,595
Net income available to common stockholders(2)		$	26,712	$	43,345	$	4,024	$	21,443	$	94,253	$	46,493

All values are in US Dollars.

(1)Non-GAAP Measure

(2)Balance represents the net income 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. Refer to the Statements of Operations for additional detail on these amounts.

Net interest income

Q3-2022 vs Q2-2022

Net interest income increased $1.1 million to $79.4 million for the third quarter due to higher average balances and yield on interest-earning assets, partially offset by higher average balances and costs on interest-bearing liabilities.

The net interest margin remained unchanged at 3.58% for the third quarter as the average interest-earning assets yield increased 29 basis points and the cost of average total funding increased 30 basis points. The yield on average interest-earning assets increased to 4.33% for the third quarter from 4.04% for the second quarter due to the mix of interest-earning assets and higher yields on loans, securities and other interest-earning assets. The overall loan yield increased 19 basis points to 4.54% during the third quarter as a result of the portfolio mix and the impact of higher market interest rates. The loan yields include the impact of prepayment penalty fees, the net reversal or recapture of nonaccrual loan interest and accelerated discount accretion on the early payoff of purchased loans; these items increased the overall loan yield by 6 basis points in the third quarter, compared to 10 basis points in the prior quarter.

The average cost of funds increased 30 basis points to 0.79% for the third quarter from 0.49% for the second quarter. This increase was driven by the higher cost of average interest-bearing liabilities, which increased 46 basis points to 1.20% for the third quarter from 0.74% for the second quarter. The cost of average interest-bearing deposits increased 49 basis points to 0.77% for the third quarter from 0.28% for the second quarter while the cost of average FHLB advances increased 35 basis points to 2.92% for the third quarter from 2.57% for the second quarter. The increases in the cost of these funding sources were mostly a result of higher market interest rates.

Average noninterest-bearing deposits were $50.3 million higher in the third quarter compared to the second quarter while average deposits were $111.0 million higher for the linked quarters. Average noninterest-bearing deposits represented 38% of total average deposits for both the third quarter and the second quarter. The cost of total average deposits increased 30 basis points to 0.47% for the third quarter. The spot rate of total deposits was 0.56% at the end of the third quarter.

YTD 2022 vs YTD 2021

Net interest income increased $53.4 million to $234.1 million for the nine months ended September 30, 2022 due to higher average balances and yield on interest-earning assets, partially offset by higher average balances and costs of interest-bearing liabilities. Interest income increased $58.6 million and interest expense increased $5.2 million as average earning assets increased $1.36 billion and average funding sources increased $1.29 billion due largely to the impact of the acquisition of Pacific Mercantile Bancorp (PMB) in the fourth quarter of 2021.

The net interest margin increased 31 basis points to 3.56% as the average earning-assets yield increased 31 basis points and the average cost of total funding remained unchanged between periods. The yield on average interest-earning assets increased to 4.08% for the nine months ended September 30, 2022, from 3.77% for 2021 due mostly to the mix of interest-earning assets and higher market interest rates. Average loans represented 83% of average earnings assets in 2022 compared to 79% for the same period in 2021. Average loans increased by $1.41 billion from ongoing loan growth and the impact of the PMB acquisition. The yield on average loans for the nine months ended September 30, 2022 was 4.38% compared to 4.26% for the same period in 2021. The yield on average investment securities and other interest-earning assets increased 65 basis points and 83 basis points, respectively, for the nine months ended September 30, 2022, compared to the same period in 2021.

The average cost of funds was 0.56% for both the nine months ended September 30, 2022 and 2021 despite a rising rate environment during the current year. The increase in the cost of average interest-bearing liabilities was offset by the overall improved funding mix, including higher average noninterest-bearing deposits as a result of growth from business development efforts and the impact of the acquisition of PMB. The cost of average interest-bearing liabilities increased 9 basis points to 0.84% for the nine months ended September 30, 2022 compared to the same period in 2021 and included an 8 basis points increase in the cost of average interest-bearing deposits to 0.39%.

Average noninterest-bearing deposits represented 38% of total average deposits for the nine months ended September 30, 2022 compared to 29% for the same period in 2021. Average noninterest-bearing deposits were $1.03 billion higher for the nine months ended September 30, 2022 compared to the same period in 2021 while average total deposits were $1.18 billion higher. The average cost of total deposits increased 2 basis points to 0.24% for the nine months ended September 30, 2022 compared to the same period in 2021.

Provision for credit losses

Q3-2022 vs Q2-2022

There was no provision for credit losses for both the third quarter and the second quarter as the benefits of the continuing favorable credit quality performance in the loan portfolio combined with a decrease in total loan balances offset the estimated allowance resulting from changes in the portfolio mix and our reasonable and supportable forecast, primarily related to the economic outlook from the Federal Reserve's actions to control inflation.

YTD 2022 vs YTD 2021

During the nine months ended September 30, 2022, the provision for credit losses was a reversal of $31.5 million, compared to a reversal of $4.4 million during 2021. The higher reversal of credit losses for the nine months ended September 30, 2022 was due to a $31.3 million recovery from the settlement of a loan previously charged-off in 2019.

Noninterest income

Q3-2022 vs Q2-2022

Noninterest income decreased $1.5 million to $5.7 million for the third quarter compared to the prior quarter primarily due to lower all other income of $2.0 million, offset by higher loan servicing income of $527 thousand. All other income decreased due mostly to lower gains from equity investments of $2.1 million, which are recorded based on the most recent information available from the investee and fluctuates based on their underlying performance. The higher loan servicing income related to the purchase of loan servicing rights at the end of the second quarter of 2022, with an underlying loan servicing portfolio of $1.7 billion and a remaining asset value of $22.0 million at September 30, 2022.

YTD 2022 vs YTD 2021

Noninterest income for the nine months ended September 30, 2022 increased $5.0 million to $18.8 million compared to 2021. The increase was mainly due to higher customer service fees, loan servicing income, income from bank-owned life insurance, and all other income. Many of these increases are a result of including PMB's operations for a full nine months in 2022 compared to 2021. Customer services fees increased $1.8 million due mostly to higher deposit activity fees of $2.4 million attributed to higher average deposit balances, partially offset by lower loan fees of $657 thousand. Loan servicing income increased $481 thousand due mostly to the acquisition of servicing rights during the second quarter of 2022. Income from bank-owned life insurance increased $402 thousand due to higher average balances. The $2.3 million increase in all other income is due mostly to higher income from equity investments of $2.8 million, partially offset by a $773 thousand decrease in the change in fair value of loans held for sale between periods.

Noninterest expense

Q3-2022 vs Q2-2022

Noninterest expense increased $2.4 million to $51.0 million for the third quarter compared to the second quarter. The increase was due mostly to (i) acquisition, integration and transaction costs of $2.1 million related to the Deepstack acquisition, (ii) higher occupancy and equipment expense of $773 thousand including an early lease termination charge of $285 thousand, (iii) higher professional fees of $400 thousand, due mostly to a $562 thousand increase in indemnified legal fees (net of insurance recoveries), and (iv) lower reversal of provision for loan repurchases of $464 thousand. These increases were offset by lower net loss in alternative energy partnership investments of $539 thousand and lower all other expenses of $465 thousand. Professional fees included net indemnified legal expenses of $1.0 million in the third quarter compared to net indemnified legal expenses of $455 thousand in the second quarter.

Total operating costs, defined as noninterest expense adjusted for certain expense items (refer to section Non-GAAP Measures), increased $247 thousand to $47.4 million for the third quarter compared to $47.1 million for the prior quarter. This increase is due mostly to (i) higher occupancy and equipment expense of $773 thousand, (ii) lower reversal of provision for loan repurchase reserves of $464 thousand, offset by a decrease in other expenses of $990 thousand, including lower salary and employee benefits, professional fees and all other expenses.

YTD 2022 vs YTD 2021

Noninterest expense for the nine months ended September 30, 2022 increased $21.4 million to $146.2 million compared to 2021. The increase was primarily due to: (i) higher salaries and employee benefits of $9.7 million and occupancy and equipment expense of $2.8 million due to the increases in personnel and facilities from the acquisition of PMB, (ii) higher professional fees of $4.9 million, due mostly to a $4.3 million increase in indemnified legal fees (net of insurance recoveries),

(iii) higher all other expenses of $3.3 million due to including the operations of PMB since the date of acquisition and (iv) higher loss in alternative energy partnership investments of $689 thousand. These increases were partially offset by: (i) higher reversal of loan repurchase reserves of $714 thousand and (ii) lower acquisition, integration and transaction costs of $320 thousand.

Income taxes

Q3-2022 vs Q2-2022

Income tax expense totaled $9.9 million for the third quarter resulting in an effective tax rate of 29.1% compared to $10.2 million for the second quarter and an effective tax rate of 27.6%. The effective tax rate for the full year 2022 is estimated to be 28%.

YTD 2022 vs YTD 2021

Income tax expense totaled $38.9 million for the nine months ended September 30, 2022, representing an effective tax rate of 28.1%, compared to $17.5 million and an effective tax rate of 23.6% for 2021. The effective tax rate for the nine months ended September 30, 2022 was higher than the comparable 2021 period due mostly to the first quarter of 2021 including a net tax benefit of $2.1 million resulting from the exercise of all previously issued outstanding stock appreciation rights.

Balance Sheet

At September 30, 2022, total assets were $9.4 billion, which represented a linked-quarter decrease of $133.5 million. The following table shows selected balance sheet line items as of the dates indicated:

										Amount Change
	September 30,2022	June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021		Q3-22 vs. Q2-22		Q3-22 vs. Q3-21
	( in thousands)
Securities held-to-maturity		$	329,272	$	329,381	$	—	$	—	$	(515)	$	328,757
Securities available-for-sale		$	865,435	$	898,775	$	1,315,703	$	1,303,368	$	(17,870)	$	(455,803)
Loans held-for-investment		$	7,451,264	$	7,451,573	$	7,251,480	$	6,228,575	$	(161,944)	$	1,060,745
Total assets		$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741	$	(133,535)	$	1,089,837
Noninterest-bearing deposits		$	2,826,599	$	2,958,632	$	2,788,196	$	2,107,709	$	116,986	$	835,876
Total deposits		$	7,558,683	$	7,479,701	$	7,439,435	$	6,543,225	$	(278,298)	$	737,160
Borrowings (1)		$	884,282	$	1,020,842	$	775,445	$	762,444	$	127,485	$	249,323
Total liabilities		$	8,552,983	$	8,604,531	$	8,328,453	$	7,433,938	$	(136,395)	$	982,650
Total equity		$	949,130	$	979,009	$	1,065,290	$	844,803	$	2,860	$	107,187

All values are in US Dollars.

(1)Represents Advances from Federal Home Loan Bank, Other Borrowings and Long Term Debt, net.

Investments

Securities held-to-maturity totaled $328.8 million at September 30, 2022 and included $214.6 million in agency securities and $114.2 million in municipal securities.

Securities available-for-sale decreased $17.9 million during the third quarter to $847.6 million at September 30, 2022, due mostly to principal payments of $10.9 million and higher unrealized net losses of $19.3 million, offset by purchases of $12.5 million. The higher net unrealized losses were due mostly to the impact of increases in longer-term market interest rates on the value of each class of securities. As of September 30, 2022, the securities available-for-sale portfolio included $472.7 million of CLOs, $169.4 million of corporate debt securities, $151.9 million of agency securities, $41.5 million of residential collateralized mortgage obligations, and $12.1 million of SBA securities. The CLO portfolio, which is comprised of AAA and AA-rated securities, represented 40% of the total securities portfolio and the carrying value included an unrealized net loss of $20.1 million at September 30, 2022, compared to 40% of the total securities portfolio and an unrealized net loss of $14.6 million at June 30, 2022.

Loans

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

	September 30,2022		June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021
	( in thousands)
Composition of loans
Commercial real estate			$	1,204,414		$	1,163,381		$	1,311,105		$	907,224
Multifamily	1,698,455		1,572,308			1,397,761			1,361,054			1,295,613
Construction	236,495		228,341			225,153			181,841			130,536
Commercial and industrial	1,227,054		1,273,307			1,224,908			1,066,497			773,681
Commercial and industrial - warehouse lending	766,362		1,160,157			1,574,549			1,602,487			1,522,945
SBA	85,674		92,235			133,116			205,548			181,582
Total commercial loans	5,254,967		5,530,762			5,718,868			5,728,532			4,811,581
Single-family residential mortgage	1,947,652		1,832,279			1,637,307			1,420,023			1,393,696
Other consumer	86,701		88,223			95,398			102,925			23,298
Total consumer loans	2,034,353		1,920,502			1,732,705			1,522,948			1,416,994
Total gross loans			$	7,451,264		$	7,451,573		$	7,251,480		$	6,228,575
Composition percentage of loans
Commercial real estate	17.0	%	16.2		%	15.6		%	18.1		%	14.6		%
Multifamily	23.3	%	21.1		%	18.8		%	18.8		%	20.7		%
Construction	3.2	%	3.1		%	3.0		%	2.5		%	2.1		%
Commercial and industrial	16.8	%	17.1		%	16.4		%	14.7		%	12.4		%
Commercial and industrial - warehouse lending	10.6	%	15.5		%	21.1		%	22.1		%	24.5		%
SBA	1.2	%	1.2		%	1.8		%	2.8		%	2.9		%
Total commercial loans	72.1	%	74.2		%	76.7		%	79.0		%	77.2		%
Single-family residential mortgage	26.7	%	24.6		%	22.0		%	19.6		%	22.4		%
Other consumer	1.2	%	1.2		%	1.3		%	1.4		%	0.4		%
Total consumer loans	27.9	%	25.8		%	23.3		%	21.0		%	22.8		%
Total gross loans	100.0	%	100.0		%	100.0		%	100.0		%	100.0		%

All values are in US Dollars.

Total loans ended the third quarter of 2022 at $7.29 billion, down $161.9 million from $7.45 billion at June 30, 2022, due mostly to a $393.8 million decrease in warehouse lending balances, offset by a net increase of $231.8 million in commercial real estate, multifamily, commercial and industrial and single-family residential (SFR) mortgage loans. Loan fundings of $820.6 million in the third quarter included SFR purchases of $172.7 million and were offset by net warehouse paydowns of $393.8 million and other loan paydowns and payoffs of $585.3 million. Total commercial loans, excluding warehouse lending, increased $118.0 million, or 10.8% on an annualized basis during the third quarter.

Deposits

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

	September 30,2022		June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021
	( in thousands)
Composition of deposits
Noninterest-bearing checking			$	2,826,599		$	2,958,632		$	2,788,196		$	2,107,709
Interest-bearing checking	1,921,816		2,359,857			2,395,329			2,393,386			2,214,678
Savings and money market	1,478,045		1,622,922			1,605,088			1,751,135			1,661,013
Non-brokered certificates of deposit	614,569		615,719			520,652			506,718			559,825
Brokered certificates of deposit	322,370		133,586			—			—			—
Total deposits			$	7,558,683		$	7,479,701		$	7,439,435		$	6,543,225
Composition percentage of deposits
Noninterest-bearing checking	40.4	%	37.4		%	39.6		%	37.5		%	32.2		%
Interest-bearing checking	26.4	%	31.2		%	32.0		%	32.2		%	33.8		%
Savings and money market	20.4	%	21.5		%	21.4		%	23.5		%	25.4		%
Non-brokered certificates of deposit	8.4	%	8.1		%	7.0		%	6.8		%	8.6		%
Brokered certificates of deposit	4.4	%	1.8		%	—		%	—		%	—		%
Total deposits	100.0	%	100.0		%	100.0		%	100.0		%	100.0		%

All values are in US Dollars.

Total deposits decreased $278.3 million during the third quarter of 2022 to $7.28 billion at September 30, 2022, due mostly to lower interest-bearing checking balances of $438.0 million and savings and money market balances of $144.9 million, partially offset by higher noninterest-bearing checking balances of $117.0 million and certificate of deposit balances of $187.6 million. Certain higher-costing deposits were strategically replaced with longer term fixed rate advances and other wholesale certificates of deposit. Noninterest-bearing checking totaled $2.94 billion and represented 40.4% of total deposits at September 30, 2022, compared to $2.83 billion, or 37.4% of total deposits, at June 30, 2022.

Debt

Advances from the FHLB increased $215.3 million during the third quarter to $727.0 million at September 30, 2022, due to higher term advances of $200.0 million and overnight advances of $15.0 million. At September 30, 2022, FHLB advances included $120.0 million of overnight borrowings and $611.0 million in term advances with a weighted average life of 3.7 years and weighted average interest rate of 2.91%. Other borrowings decreased $88 million to $10.0 million at September 30, 2022, due to lower unsecured overnight borrowings.

Equity

During the third quarter, total stockholders’ equity increased by $2.9 million to $952.0 million and tangible common equity decreased by $19.7 million to $829.6 million at September 30, 2022. The increase in total common stockholders’ equity for the third quarter included net income of $24.2 million, issuance of common shares of $7.2 million in the Deepstack acquisition, and share-based award compensation of $1.7 million, offset by the repurchase of common stock of $13.0 million, accumulated other comprehensive net loss of $13.5 million, and dividends to common stockholders of $3.6 million. Book value per common share increased to $15.83 as of September 30, 2022, from $15.70 at June 30, 2022. Tangible common equity per share (refer to section Non-GAAP Measures) decreased to $13.79 as of September 30, 2022 from $14.05 at June 30, 2022 due mostly to the addition of goodwill and other intangibles from the Deepstack acquisition.

During the third quarter of 2022, common stock repurchased under our authorized program totaled 740,332 shares at a weighted average price of $17.49. As of September 30, 2022, the Company had $18.9 million remaining under the current stock repurchase authorization. Through October 18, 2022, year-to-date repurchases of Company common stock totaled 3,521,752 shares at a weighted average price of $18.08 per share, or $63.7 million. Through October 18, 2022, the repurchased shares represent approximately 5% of the shares outstanding at the time this $75 million program was authorized.

Capital ratios remain strong with total risk-based capital at 13.81% and a tier 1 leverage ratio of 9.53% at September 30, 2022. The interim capital relief related to the adoption of the current expected credit losses (CECL) accounting standard increased the Bank's leverage ratio by approximately 9 basis points at September 30, 2022. The following table sets forth our regulatory capital ratios as of the dates indicated:

	September 30,<br>2022		June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	13.81	%	13.69	%	13.79	%	14.98	%	14.73	%
Tier 1 risk-based capital ratio	11.39	%	11.29	%	11.40	%	12.55	%	12.35	%
Common equity tier 1 capital ratio	11.39	%	11.29	%	11.40	%	11.31	%	10.86	%
Tier 1 leverage ratio	9.53	%	9.58	%	9.72	%	10.37	%	9.80	%
Banc of California, NA
Total risk-based capital ratio	15.64	%	15.54	%	15.66	%	15.71	%	16.31	%
Tier 1 risk-based capital ratio	14.51	%	14.41	%	14.54	%	14.60	%	15.22	%
Common equity tier 1 capital ratio	14.51	%	14.41	%	14.54	%	14.60	%	15.22	%
Tier 1 leverage ratio	12.14	%	12.27	%	12.38	%	12.06	%	12.08	%

(1)September 30, 2022 capital ratios are preliminary.

Credit Quality

	September 30,2022		June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021
Asset quality information and ratios	( in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent			$	38,285		$	27,067		$	40,142		$	23,144
90+ days delinquent	18,843		23,905			33,930			32,609			21,979
Total delinquent loans			$	62,190		$	60,997		$	72,751		$	45,123
Total delinquent loans to total loans	0.79	%	0.83		%	0.82		%	1.00		%	0.72		%
Non-performing assets, excluding loans held-for-sale
Non-accrual loans			$	44,443		$	54,529		$	52,558		$	45,621
90+ days delinquent and still accruing loans	—		—			—			—			—
Non-performing loans	42,674		44,443			54,529			52,558			45,621
Other real estate owned	—		—			—			—			—
Non-performing assets			$	44,443		$	54,529		$	52,558		$	45,621
ALL to non-performing loans	216.63	%	211.04		%	170.97		%	176.16		%	161.16		%
Non-performing loans to total loans held-for-investment	0.59	%	0.60		%	0.73		%	0.72		%	0.73		%
Non-performing assets to total assets	0.46	%	0.47		%	0.57		%	0.56		%	0.55		%
Troubled debt restructurings (TDRs)
Performing TDRs			$	10,946		$	14,850		$	12,538		$	5,835
Non-performing TDRs	19,538		14,989			15,059			4,146			2,366
Total TDRs			$	25,935		$	29,909		$	16,684		$	8,201

All values are in US Dollars.

During the third quarter, credit quality improved as total delinquent loans decreased $4.7 million to $57.5 million and non-performing loans decreased $1.8 million to $42.7 million. At September 30, 2022, non-performing loans included $17.9 million of loans in a current payment status, however are on nonaccrual based on other criteria.

Allowance for Credit Losses

	Three Months Ended
	September 30,2022		June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021
	( in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period			$	93,226		$	92,584		$	73,524		$	75,885
Initial reserve for purchased credit-deteriorated loans(1)	—		—			—			13,650			—
Loans charged off	(912)		(494)			(231)			(8,108)			(327)
Recoveries	63		1,561			32,215			2,628			532
Net charge-offs recoveries	(849)		1,067			31,984			(5,480)			205
(Reversal of) provision for loan losses	(500)		(500)			(31,342)			10,890			(2,566)
Balance at end of period			$	93,793		$	93,226		$	92,584		$	73,524
Reserve for unfunded loan commitments
Balance at beginning of period			$	5,405		$	5,605		$	5,233		$	3,814
(Reversal of) provision for credit losses	500		500			(200)			372			1,419
Balance at end of period	6,405		5,905			5,405			5,605			5,233
Allowance for credit losses (ACL)			$	99,698		$	98,631		$	98,189		$	78,757
ALL to total loans	1.27	%	1.26		%	1.25		%	1.28		%	1.18		%
ACL to total loans	1.36	%	1.34		%	1.32		%	1.35		%	1.26		%
ACL to total loans, excluding PPP loans	1.36	%	1.34		%	1.33		%	1.38		%	1.29		%
ACL to NPLs	231.64	%	224.33		%	180.88		%	186.82		%	172.63		%
Annualized net loan charge-offs (recoveries) to average total loans held-for-investment	0.05	%	(0.06)		%	(1.79)		%	0.32		%	(0.01)		%
Reserve for loss on repurchased loans
Balance at beginning of period			$	3,877		$	4,348		$	5,023		$	5,095
(Reversal of) provision for loan repurchases	(26)		(490)			(471)			(675)			(42)
Utilization of reserve for loan repurchases	(190)		(165)			—			—			(30)
Balance at end of period			$	3,222		$	3,877		$	4,348		$	5,023

All values are in US Dollars.

(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans and expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive.

The allowance for expected credit losses (ACL), which includes the reserve for unfunded loan commitments, totaled $98.8 million, or 1.36% of total loans, at September 30, 2022, compared to $99.7 million, or 1.34% of total loans, at June 30, 2022. The $849 thousand decrease in the ACL was due to: (i) net charge offs of $849 thousand and (ii) lower specific reserves of $571 thousand, offset by (iii) higher reserves for unfunded commitments of $500 thousand and (iv) higher general loan loss reserves of $70 thousand. Changes in general loan loss reserves were driven by changes in the portfolio mix including lower total loans, improved credit quality, and changes in macroeconomic variables used in the model. The ACL coverage of non-performing loans was 232% at September 30, 2022 compared to 224% at June 30, 2022.

The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables released by the model provider during September 2022. The published forecasts consider the Federal Reserve's monetary policy, labor market constraints, rising inflation, higher oil prices and the military conflict between Russia and Ukraine, among other factors.

Conference Call

The Company will host a conference call to discuss its third quarter 2022 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, October 20, 2022. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 6394121. 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 4395956.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with $9.4 billion in assets at September 30, 2022 and one wholly-owned banking subsidiary, Banc of California, N.A. (the Bank). The Bank has 34 offices including 29 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, and full stack payment processing solution through our subsidiary Deepstack Technologies. 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 to 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.

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 (SEC). In addition to those, statements about the potential effects of the COVID-19 pandemic on the business, financial results and condition of Banc of California, Inc. and its subsidiaries may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the control of Banc of California, Inc., including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Banc of California, Inc. and its subsidiaries, their customers and third parties. 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

Banc of California, Inc.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)

	September 30,<br>2022		June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021
ASSETS
Cash and cash equivalents	$	256,058	$	243,064	$	254,241	$	228,123	$	185,840
Securities held-to-maturity	328,757		329,272		329,381		—		—
Securities available-for-sale	847,565		865,435		898,775		1,315,703		1,303,368
Loans	7,289,320		7,451,264		7,451,573		7,251,480		6,228,575
Allowance for loan losses	(92,444)		(93,793)		(93,226)		(92,584)		(73,524)
Federal Home Loan Bank and other bank stock	54,428		51,489		51,456		44,632		44,604
Premises and equipment, net	107,728		108,523		109,593		112,868		114,011
Alternative energy partnership investments, net	22,401		23,531		25,156		25,888		25,196
Goodwill	114,312		95,127		95,127		94,301		37,144
Other intangible assets, net	8,081		4,677		4,990		6,411		1,787
Deferred income tax, net	56,376		54,455		51,516		50,774		40,659
Income tax receivable	3,430		4,563		1,045		7,952		2,107
Bank owned life insurance investment	126,199		125,326		124,516		123,720		113,884
Operating lease right of use assets	30,321		32,632		34,189		35,442		29,054
Other assets	216,046		206,548		245,208		189,033		226,036
Total assets	$	9,368,578	$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	2,943,585	$	2,826,599	$	2,958,632	$	2,788,196	$	2,107,709
Interest-bearing deposits	4,336,800		4,732,084		4,521,069		4,651,239		4,435,516
Total deposits	7,280,385		7,558,683		7,479,701		7,439,435		6,543,225
Advances from Federal Home Loan Bank	727,021		511,695		556,374		476,059		405,738
Other borrowings	10,000		98,000		190,000		25,000		100,000
Long-term debt, net	274,746		274,587		274,468		274,386		256,706
Reserve for loss on repurchased loans	3,006		3,222		3,877		4,348		5,023
Operating lease liabilities	34,937		37,500		39,259		40,675		30,390
Accrued expenses and other liabilities	86,493		69,296		60,852		68,550		92,856
Total liabilities	8,416,588		8,552,983		8,604,531		8,328,453		7,433,938
Commitments and contingent liabilities
Preferred stock	—		—		—		94,956		94,956
Common stock	652		647		646		646		527
Common stock, class B non-voting non-convertible	5		5		5		5		5
Additional paid-in capital	864,806		856,079		855,198		854,873		631,512
Retained earnings	231,084		210,471		187,457		147,894		147,682
Treasury stock	(96,978)		(84,013)		(45,125)		(40,827)		(40,827)
Accumulated other comprehensive (loss) income, net	(47,579)		(34,059)		(19,172)		7,743		10,948
Total stockholders’ equity	951,990		949,130		979,009		1,065,290		844,803
Total liabilities and stockholders’ equity	$	9,368,578	$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741

Banc of California, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

	Three Months Ended										Nine Months Ended
	September 30,<br>2022		June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021		September 30,<br>2022		September 30,<br>2021
Interest and dividend income
Loans, including fees	$	83,699	$	78,895	$	76,234	$	73,605	$	63,837	$	238,828	$	187,082
Securities	10,189		8,124		7,309		6,934		7,167		25,622		20,654
Other interest-earning assets	2,085		1,399		726		1,034		787		4,210		2,350
Total interest and dividend income	95,973		88,418		84,269		81,573		71,791		268,660		210,086
Interest expense
Deposits	8,987		3,180		1,388		2,072		2,412		13,555		10,241
Federal Home Loan Bank advances	3,558		3,114		2,953		2,977		2,990		9,625		9,046
Other interest-bearing liabilities	4,020		3,825		3,487		3,485		3,413		11,332		10,060
Total interest expense	16,565		10,119		7,828		8,534		8,815		34,512		29,347
Net interest income	79,408		78,299		76,441		73,039		62,976		234,148		180,739
(Reversal of) provision for credit losses	—		—		(31,542)		11,262		(1,147)		(31,542)		(4,408)
Net interest income after provision for (reversal of) credit losses	79,408		78,299		107,983		61,777		64,123		265,690		185,147
Noninterest income
Customer service fees	2,462		2,578		2,434		2,037		1,900		7,474		5,648
Loan servicing income	636		109		212		119		170		957		476
Income from bank owned life insurance	873		810		796		794		715		2,479		2,077
Net gain on sale of securities available for sale	—		—		16		—		—		16		—
Net gain on sale of loans	—		—		—		275		—		—		—
All other income	1,710		3,689		2,452		2,380		2,734		7,851		5,570
Total noninterest income	5,681		7,186		5,910		5,605		5,519		18,777		13,771
Noninterest expense
Salaries and employee benefits	27,997		28,264		28,987		27,811		24,786		85,248		75,547
Occupancy and equipment	8,649		7,876		7,855		7,855		7,124		24,380		21,597
Professional fees	4,507		4,107		2,907		3,921		892		11,521		6,663
Data processing	1,699		1,782		1,828		1,939		1,646		5,309		4,922
Regulatory assessments	925		1,021		775		1,040		812		2,721		2,355
Reversal of loan repurchase reserves	(26)		(490)		(471)		(675)		(42)		(987)		(273)
Amortization of intangible assets	396		313		441		430		282		1,150		846
Acquisition, integration and transaction costs	2,080		—		—		13,469		1,000		2,080		2,400
All other expense	4,231		4,696		4,116		4,302		3,096		13,043		9,733
Total noninterest expense before loss (gain) in alternative energy partnership investments	50,458		47,569		46,438		60,092		39,596		144,465		123,790
Loss (gain) in alternative energy partnership investments	504		1,043		158		(1,220)		(1,785)		1,705		1,016
Total noninterest expense	50,962		48,612		46,596		58,872		37,811		146,170		124,806
Income before income taxes	34,127		36,873		67,297		8,510		31,831		138,297		74,112
Income tax expense	9,931		10,161		18,785		2,759		8,661		38,877		17,517
Net income	24,196		26,712		48,512		5,751		23,170		99,420		56,595
Preferred stock dividends	—		—		1,420		1,727		1,727		1,420		6,595
Income allocated to participating securities	—		—		—		—		—		—		160
Impact of preferred stock redemption	—		—		3,747		—		—		3,747		3,347
Net income available to common stockholders	$	24,196	$	26,712	$	43,345	$	4,024	$	21,443	$	94,253	$	46,493
Earnings per common share:
Basic	$	0.40	$	0.44	$	0.69	$	0.07	$	0.42	$	1.54	$	0.92
Diluted	$	0.40	$	0.43	$	0.69	$	0.07	$	0.42	$	1.53	$	0.91
Weighted average number of common shares outstanding
Basic	60,044,403		61,350,802		62,606,450		60,401,366		50,716,680		61,324,119		50,573,928
Diluted	60,492,460		61,600,615		62,906,003		60,690,046		50,909,317		61,659,900		50,821,972
Dividends declared per common share	$	0.06	$	0.06	$	0.06	$	0.06	$	0.06	$	0.18	$	0.18

Banc of California, Inc.

Selected Financial Data

(Unaudited)

	Three Months Ended										Nine Months Ended
	September 30,<br>2022		June 30,<br>2022		March 31,<br>2022		December 31,<br>2021		September 30,<br>2021		September 30,<br>2022		September 30,<br>2021
Profitability and other ratios of consolidated operations
Return on average assets (ROAA)(1)	1.02	%	1.15	%	2.09	%	0.24	%	1.13	%	1.42	%	0.95	%
Adjusted ROAA(1)(2)	1.13	%	1.19	%	2.10	%	0.63	%	1.03	%	1.47	%	0.93	%
Return on average equity(1)	9.99	%	11.05	%	18.74	%	2.20	%	10.84	%	13.38	%	8.90	%
Return on average tangible common equity(1)(2)	11.34	%	12.43	%	20.29	%	2.04	%	12.04	%	14.68	%	9.10	%
Pre-tax pre-provision income ROAA(1)(2)	1.44	%	1.58	%	1.54	%	0.84	%	1.50	%	1.52	%	1.17	%
Adjusted pre-tax pre-provision income ROAA(1)(2)	1.59	%	1.65	%	1.55	%	1.39	%	1.35	%	1.59	%	1.18	%
Dividend payout ratio(3)	15.00	%	13.64	%	8.70	%	85.71	%	14.29	%	11.69	%	19.57	%
Average loan yield	4.54	%	4.35	%	4.26	%	4.20	%	4.18	%	4.38	%	4.26	%
Average cost of interest-bearing deposits	0.77	%	0.28	%	0.12	%	0.17	%	0.22	%	0.39	%	0.31	%
Average cost of total deposits	0.47	%	0.17	%	0.08	%	0.11	%	0.15	%	0.24	%	0.22	%
Net interest spread	3.13	%	3.30	%	3.29	%	3.05	%	3.06	%	3.24	%	3.02	%
Net interest margin(1)	3.58	%	3.58	%	3.51	%	3.28	%	3.28	%	3.56	%	3.25	%
Noninterest income to total revenue(4)	6.68	%	8.41	%	7.18	%	7.13	%	8.06	%	7.42	%	7.08	%
Noninterest income to average total assets(1)	0.24	%	0.31	%	0.26	%	0.24	%	0.27	%	0.27	%	0.23	%
Noninterest expense to average total assets(1)	2.15	%	2.09	%	2.01	%	2.50	%	1.84	%	2.08	%	2.10	%
Adjusted noninterest expense to average total assets(1)(2)	2.00	%	2.02	%	2.01	%	1.95	%	1.99	%	2.01	%	2.09	%
Efficiency ratio(2)(5)	59.89	%	56.87	%	56.58	%	74.86	%	55.20	%	57.79	%	64.16	%
Adjusted efficiency ratio(2)(6)	55.66	%	55.11	%	56.52	%	58.47	%	59.49	%	55.76	%	63.80	%
Average loans to average deposits	97.34	%	98.21	%	98.28	%	92.99	%	94.99	%	97.94	%	93.84	%
Average securities to average total assets	12.70	%	13.02	%	13.76	%	13.83	%	16.55	%	13.16	%	16.33	%
Average stockholders’ equity to average total assets	10.21	%	10.38	%	11.18	%	11.10	%	10.41	%	10.59	%	10.70	%

(1)Ratio presented on an annualized basis.

(2)Ratio 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)Ratio calculated by dividing dividends declared per common share by basic earnings (loss) per common share.

(4)Total revenue is equal to the sum of net interest income before provision for (reversal of) credit losses and noninterest income.

(5)Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for (reversal of) credit losses and noninterest income.

(6)Ratio calculated by dividing adjusted noninterest expense by the sum of net interest income before provision for (reversal of) credit losses and adjusted noninterest income.

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	September 30, 2022							June 30, 2022							March 31, 2022
	Average					Yield		Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	3,142,772		$	34,269	4.33	%	$	2,889,652		$	31,290	4.34	%	$	2,850,811		$	31,367	4.46	%
Commercial and industrial and SBA	2,151,511			29,296		5.40	%	2,527,506			29,334		4.66	%	2,748,541			30,043		4.43	%
SFR mortgage	1,927,694			18,699		3.85	%	1,755,719			16,795		3.84	%	1,562,478			13,273		3.45	%
Other consumer	87,335			1,331		6.05	%	93,160			1,450		6.24	%	97,516			1,523		6.33	%
Loans held-for-sale	4,207			104		9.81	%	3,618			26		2.88	%	3,428			28		3.31	%
Gross loans and leases	7,313,519			83,699		4.54	%	7,269,655			78,895		4.35	%	7,262,774			76,234		4.26	%
Securities	1,194,942			10,189		3.38	%	1,216,612			8,124		2.68	%	1,292,079			7,309		2.29	%
Other interest-earning assets	292,819			2,085		2.82	%	295,715			1,399		1.90	%	265,339			726		1.11	%
Total interest-earning assets	8,801,280			95,973		4.33	%	8,781,982			88,418		4.04	%	8,820,192			84,269		3.87	%
Allowance for loan losses	(93,517)							(94,217)							(92,618)
BOLI and noninterest-earning assets	700,977							654,931							664,731
Total assets	$	9,408,740						$	9,342,696						$	9,392,305
Interest-bearing liabilities
Interest-bearing checking	$	2,285,071		$	3,880	0.67	%	$	2,363,233		$	1,457	0.25	%	$	2,409,262		$	641	0.11	%
Savings and money market	1,536,438			2,236		0.58	%	1,598,663			860		0.22	%	1,673,244			510		0.12	%
Certificates of deposit	832,506			2,871		1.37	%	631,415			863		0.55	%	508,244			237		0.19	%
Total interest-bearing deposits	4,654,015			8,987		0.77	%	4,593,311			3,180		0.28	%	4,590,750			1,388		0.12	%
FHLB advances	482,842			3,558		2.92	%	485,629			3,114		2.57	%	459,749			2,953		2.60	%
Other borrowings	70,431			412		2.32	%	117,688			325		1.11	%	116,495			55		0.19	%
Long-term debt	274,665			3,608		5.21	%	274,515			3,500		5.11	%	274,417			3,432		5.07	%
Total interest-bearing liabilities	5,481,953			16,565		1.20	%	5,471,143			10,119		0.74	%	5,441,411			7,828		0.58	%
Noninterest-bearing deposits	2,855,220							2,804,877							2,795,633
Noninterest-bearing liabilities	110,761							96,791							105,349
Total liabilities	8,447,934							8,372,811							8,342,393
Total stockholders’ equity	960,806							969,885							1,049,912
Total liabilities and stockholders’ equity	$	9,408,740						$	9,342,696						$	9,392,305
Net interest income/spread				$	79,408	3.13	%				$	78,299	3.30	%				$	76,441	3.29	%
Net interest margin						3.58	%						3.58	%						3.51	%
Ratio of interest-earning assets to interest-bearing liabilities	161		%					161		%					162		%
Total deposits	$	7,509,235		$	8,987	0.47	%	$	7,398,188		$	3,180	0.17	%	$	7,386,383		$	1,388	0.08	%
Total funding (1)	$	8,337,173		$	16,565	0.79	%	$	8,276,020		$	10,119	0.49	%	$	8,237,044		$	7,828	0.39	%

(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.

	Three Months Ended
	December 31, 2021							September 30, 2021
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,809,181		$	32,184	4.55	%	$	2,379,962		$	26,542	4.42	%
Commercial and industrial and SBA	2,631,596			28,028		4.23	%	2,322,372			25,345		4.33	%
SFR mortgage	1,418,057			11,884		3.32	%	1,331,876			11,683		3.48	%
Other consumer	85,193			1,483		6.91	%	22,164			238		4.26	%
Loans held-for-sale	3,309			26		3.12	%	2,956			29		3.89	%
Gross loans and leases	6,947,336			73,605		4.20	%	6,059,330			63,837		4.18	%
Securities	1,290,664			6,934		2.13	%	1,347,317			7,167		2.11	%
Other interest-earning assets	593,739			1,034		0.69	%	222,274			787		1.40	%
Total interest-earning assets	8,831,739			81,573		3.66	%	7,628,921			71,791		3.73	%
Allowance for loan losses	(92,367)							(76,028)
BOLI and noninterest-earning assets	592,583							588,720
Total assets	$	9,331,955						$	8,141,613
Interest-bearing liabilities
Interest-bearing checking	$	2,461,397		$	693	0.11	%	$	2,280,429		$	632	0.11	%
Savings and money market	1,780,483			1,078		0.24	%	1,583,791			1,350		0.34	%
Certificates of deposit	610,766			301		0.20	%	571,822			430		0.30	%
Total interest-bearing deposits	4,852,646			2,072		0.17	%	4,436,042			2,412		0.22	%
FHLB advances	407,122			2,977		2.90	%	435,984			2,990		2.72	%
Other borrowings	27,300			7		0.10	%	126,352			34		0.11	%
Long-term debt	270,879			3,478		5.09	%	256,634			3,379		5.22	%
Total interest-bearing liabilities	5,557,947			8,534		0.61	%	5,255,012			8,815		0.67	%
Noninterest-bearing deposits	2,614,712							1,939,912
Noninterest-bearing liabilities	123,514							98,748
Total liabilities	8,296,173							7,293,672
Total stockholders’ equity	1,035,782							847,941
Total liabilities and stockholders’ equity	$	9,331,955						$	8,141,613
Net interest income/spread				$	73,039	3.05	%				$	62,976	3.06	%
Net interest margin						3.28	%						3.28	%
Ratio of interest-earning assets to interest-bearing liabilities	159		%					145		%
Total deposits	$	7,467,358		$	2,072	0.11	%	$	6,375,954		$	2,412	0.15	%
Total funding (1)	$	8,172,659		$	8,534	0.41	%	$	7,194,924		$	8,815	0.49	%

	Nine Months Ended
	September 30, 2022							September 30, 2021
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,962,148		$	96,926	4.37	%	$	2,338,862		$	80,152	4.58	%
Commercial and industrial and SBA	2,473,666			88,672		4.79	%	2,233,162			71,233		4.26	%
SFR mortgage	1,749,968			48,767		3.73	%	1,273,624			34,839		3.66	%
Other consumer	92,633			4,305		6.21	%	24,832			807		4.35	%
Loans held-for-sale	3,754			158		5.63	%	2,124			51		3.21	%
Gross loans and leases	7,282,169			238,828		4.38	%	5,872,604			187,082		4.26	%
Securities	1,234,188			25,622		2.78	%	1,297,636			20,654		2.13	%
Other interest-earning assets	284,725			4,210		1.98	%	272,126			2,350		1.15	%
Total interest-earning assets	8,801,082			268,660		4.08	%	7,442,366			210,086		3.77	%
Allowance for credit losses	(93,454)							(78,729)
BOLI and noninterest-earning assets	673,679							580,581
Total assets	$	9,381,307						$	7,944,218
Interest-bearing liabilities
Interest-bearing checking	$	2,352,067		$	5,978	0.34	%	$	2,201,568		$	2,212	0.13	%
Savings and money market	1,602,280			3,606		0.30	%	1,625,214			5,985		0.49	%
Certificates of deposit	658,576			3,971		0.81	%	641,157			2,044		0.43	%
Total interest-bearing deposits	4,612,923			13,555		0.39	%	4,467,939			10,241		0.31	%
FHLB advances	476,158			9,625		2.70	%	433,532			9,046		2.79	%
Other borrowings	101,369			792		1.04	%	49,914			40		0.11	%
Long-term debt	274,533			10,540		5.13	%	256,497			10,020		5.22	%
Total interest-bearing liabilities	5,464,983			34,512		0.84	%	5,207,882			29,347		0.75	%
Noninterest-bearing deposits	2,818,795							1,788,096
Noninterest-bearing liabilities	104,321							98,025
Total liabilities	8,388,099							7,094,003
Total stockholders’ equity	993,208							850,215
Total liabilities and stockholders’ equity	$	9,381,307						$	7,944,218
Net interest income/spread				$	234,148	3.24	%				$	180,739	3.02	%
Net interest margin						3.56	%						3.25	%
Ratio of interest-earning assets to interest-bearing liabilities	161		%					143		%
Total deposits	$	7,431,718		$	13,555	0.24	%	$	6,256,035		$	10,241	0.22	%
Total funding (1)	$	8,283,778		$	34,512	0.56	%	$	6,995,978		$	29,347	0.56	%

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.

Tangible assets, tangible equity, tangible common equity, tangible equity to tangible assets, tangible common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest expense, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income (loss), adjusted PTPP income (loss), PTPP income (loss) ROAA, adjusted PTPP income (loss) ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS) and adjusted return on average assets (ROAA) 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 equity. Tangible common equity is calculated by subtracting preferred stock from tangible equity. Return on average tangible common equity is computed by dividing net income (loss) available to common stockholders, after adjustment for amortization of intangible assets, 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 total revenue and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by total revenue.

Adjusted net income (loss) is calculated by adjusting net income (loss) for tax-effected noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is computed by dividing annualized adjusted net income by average assets. Adjusted net income (loss) available to common stockholders is computed by removing the impact of preferred stock redemptions from adjusted net income (loss). Adjusted diluted earnings per share is computed by dividing adjusted net income (loss) available to common stockholders by the weighted average diluted common shares outstanding.

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.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	September 30,<br>2022			June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	9,368,578		$	9,502,113		$	9,583,540		$	9,393,743		$	8,278,741
Less goodwill	(114,312)			(95,127)			(95,127)			(94,301)			(37,144)
Less other intangible assets	(8,081)			(4,677)			(4,990)			(6,411)			(1,787)
Tangible assets(1)	$	9,246,185		$	9,402,309		$	9,483,423		$	9,293,031		$	8,239,810
Total stockholders' equity	$	951,990		$	949,130		$	979,009		$	1,065,290		$	844,803
Less preferred stock	—			—			—			(94,956)			(94,956)
Total common stockholders' equity	$	951,990		$	949,130		$	979,009		$	970,334		$	749,847
Total stockholders' equity	$	951,990		$	949,130		$	979,009		$	1,065,290		$	844,803
Less goodwill	(114,312)			(95,127)			(95,127)			(94,301)			(37,144)
Less other intangible assets	(8,081)			(4,677)			(4,990)			(6,411)			(1,787)
Tangible equity(1)	829,597			849,326			878,892			964,578			805,872
Less preferred stock	—			—			—			(94,956)			(94,956)
Tangible common equity(1)	$	829,597		$	849,326		$	878,892		$	869,622		$	710,916
Total stockholders' equity to total assets	10.16		%	9.99		%	10.22		%	11.34		%	10.20		%
Tangible equity to tangible assets(1)	8.97		%	9.03		%	9.27		%	10.38		%	9.78		%
Tangible common equity to tangible assets(1)	8.97		%	9.03		%	9.27		%	9.36		%	8.63		%
Common shares outstanding	59,679,558			59,985,736			62,077,312			62,188,206			50,321,096
Class B non-voting non-convertible common shares outstanding	477,321			477,321			477,321			477,321			477,321
Total common shares outstanding	60,156,879			60,463,057			62,554,633			62,665,527			50,798,417
Book value per common share	$	15.83		$	15.70		$	15.65		$	15.48		$	14.76
Tangible common equity per share(1)	$	13.79		$	14.05		$	14.05		$	13.88		$	13.99

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,<br>2022			June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021			September 30,<br>2022			September 30,<br>2021
Return on tangible common equity
Average total stockholders' equity	$	960,806		$	969,885		$	1,049,912		$	1,035,782		$	847,941		$	993,208		$	850,215
Less average preferred stock	—			—			(75,965)			(94,956)			(94,956)			(25,043)			(118,013)
Average common stockholders' equity	960,806			969,885			973,947			940,826			752,985			968,165			732,202
Less average goodwill	(98,916)			(95,127)			(94,307)			(86,911)			(37,144)			(96,133)			(37,144)
Less average other intangible assets	(4,570)			(4,869)			(6,224)			(4,994)			(1,941)			(5,216)			(2,226)
Average tangible common equity(1)	$	857,320		$	869,889		$	873,416		$	848,921		$	713,900		$	866,816		$	692,832
Net income available to common stockholders	$	24,196		$	26,712		$	43,345		$	4,024		$	21,443		$	94,253		$	46,493
Add amortization of intangible assets	396			313			441			430			282			1,150			846
Less tax effect on amortization of intangible assets(2)	(83)			(66)			(93)			(90)			(59)			(242)			(178)
Net income available to common stockholders after adjustments for intangible assets(1)	$	24,509		$	26,959		$	43,693		$	4,364		$	21,666		$	95,161		$	47,161
Return on average equity	9.99		%	11.05		%	18.74		%	2.20		%	10.84		%	13.38		%	8.90		%
Return on average tangible common equity(1)	11.34		%	12.43		%	20.29		%	2.04		%	12.04		%	14.68		%	9.10		%

(1)Non-GAAP measure.

(2)Adjustments shown net of a statutory Federal tax rate of 21%.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,<br>2022			June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021			September 30,<br>2022			September 30,<br>2021
Adjusted noninterest expense
Total noninterest expense	$	50,962		$	48,612		$	46,596		$	58,872		$	37,811		$	146,170		$	124,806
Noninterest expense adjustments:
Professional (fees) recoveries	(1,017)			(455)			106			(642)			2,152			(1,366)			2,715
Acquisition, integration and transaction costs	(2,080)			—			—			(13,469)			(1,000)			(2,080)			(2,400)
Noninterest expense adjustments before (loss) gain in alternative energy partnership investments	(3,097)			(455)			106			(14,111)			1,152			(3,446)			315
(Loss) gain in alternative energy partnership investments	(504)			(1,043)			(158)			1,220			1,785			(1,705)			(1,016)
Total noninterest expense adjustments	(3,601)			(1,498)			(52)			(12,891)			2,937			(5,151)			(701)
Adjusted noninterest expense(1)	$	47,361		$	47,114		$	46,544		$	45,981		$	40,748		$	141,019		$	124,105
Average assets	$	9,408,740		$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	9,381,307		$	7,944,218
Noninterest expense to average total assets	2.15		%	2.09		%	2.01		%	2.50		%	1.84		%	2.08		%	2.10		%
Adjusted noninterest expense to average total assets(1)	2.00		%	2.02		%	2.01		%	1.95		%	1.99		%	2.01		%	2.09		%

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,<br>2022			June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021			September 30,<br>2022			September 30,<br>2021
Adjusted pre-tax pre-provision income
Net interest income	$	79,408		$	78,299		$	76,441		$	73,039		$	62,976		$	234,148		$	180,739
Noninterest income	5,681			7,186			5,910			5,605			5,519			18,777			13,771
Total revenue	85,089			85,485			82,351			78,644			68,495			252,925			194,510
Noninterest expense	50,962			48,612			46,596			58,872			37,811			146,170			124,806
Pre-tax pre-provision income(1)	$	34,127		$	36,873		$	35,755		$	19,772		$	30,684		$	106,755		$	69,704
Total revenue	$	85,089		$	85,485		$	82,351		$	78,644		$	68,495		$	252,925		$	194,510
Noninterest expense	50,962			48,612			46,596			58,872			37,811			146,170			124,806
Total noninterest expense adjustments	(3,601)			(1,498)			(52)			(12,891)			2,937			(5,151)			(701)
Adjusted noninterest expense(1)	47,361			47,114			46,544			45,981			40,748			141,019			124,105
Adjusted pre-tax pre-provision income(1)	$	37,728		$	38,371		$	35,807		$	32,663		$	27,747		$	111,906		$	70,405
Average assets	$	9,408,740		$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	9,381,307		$	7,944,218
Pre-tax pre-provision income ROAA(1)	1.44		%	1.58		%	1.54		%	0.84		%	1.50		%	1.52		%	1.17		%
Adjusted pre-tax pre-provision income ROAA(1)	1.59		%	1.65		%	1.55		%	1.39		%	1.35		%	1.59		%	1.18		%
Efficiency ratio(1)	59.89		%	56.87		%	56.58		%	74.86		%	55.20		%	57.79		%	64.16		%
Adjusted efficiency ratio(1)	55.66		%	55.11		%	56.52		%	58.47		%	59.49		%	55.76		%	63.80		%

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,<br>2022			June 30,<br>2022			March 31,<br>2022			December 31,<br>2021			September 30,<br>2021			September 30,<br>2022			September 30,<br>2021
Adjusted net income
Net income (1)(2)	$	24,196		$	26,712		$	48,512		$	5,751		$	23,170		$	99,420		$	56,595
Adjustments:
Noninterest expense adjustments	3,601			1,498			52			12,891			(2,937)			5,151			701
Tax impact of adjustments above(3)	(1,065)			(443)			(15)			(3,811)			868			(1,523)			(207)
Tax impact from exercise of stock appreciation rights	—			—			—			—			—			—			(2,093)
Adjustments to net income	2,536			1,055			37			9,080			(2,069)			3,628			(1,599)
Adjusted net income(4)	$	26,732		$	27,767		$	48,549		$	14,831		$	21,101		$	103,048		$	54,996
Average assets	$	9,408,740		$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	9,381,307		$	7,944,218
ROAA	1.02		%	1.15		%	2.09		%	0.24		%	1.13		%	1.42		%	0.95		%
Adjusted ROAA(4)	1.13		%	1.19		%	2.10		%	0.63		%	1.03		%	1.47		%	0.93		%
Adjusted net income available to common stockholders
Net income available to common stockholders	$	24,196		$	26,712		$	43,345		$	4,024		$	21,443		$	94,253		$	46,493
Adjustments to net income	2,536			1,055			37			9,080			(2,069)			3,628			(1,599)
Adjustments for impact of preferred stock redemption	—			—			3,747			—			—			3,747			3,347
Adjusted net income available to common stockholders(4)	$	26,732		$	27,767		$	47,129		$	13,104		$	19,374		$	101,628		$	48,241
Average diluted common shares	60,492,460			61,600,615			62,906,003			60,690,046			50,909,317			61,659,900			50,821,972
Diluted EPS	$	0.40		$	0.43		$	0.69		$	0.07		$	0.42		$	1.53		$	0.91
Adjusted diluted EPS(4)(5)	$	0.44		$	0.45		$	0.75		$	0.22		$	0.38		$	1.65		$	0.95

(1)Net income for the three months ended March 31, 2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan; there is no similar recovery in any of the other periods presented. The Bank previously recognized a $35.1 million charge-off for this loan during the third quarter of 2019.

(2)Net income for the three months ended December 31, 2021 includes an $11.3 million pre-tax charge for the expected lifetime credit losses for non-purchased credit deteriorated loans acquired in the PMB Acquisition; there is no similar charge in any of the other periods presented.

(3)Tax impact of adjustments shown at a statutory tax rate of 29.6%.

(4)Non-GAAP measure.

(5)Represents adjusted net income available to common stockholders divided by average diluted common shares.

banc2022q3investordeck_f

INVESTOR PRESENTATION 2022 Third Quarter Earnings bancofcal.com

2 FORWARD LOOKING STATEMENTS When used in this report 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 continuing effects of the COVID-19 pandemic and steps taken by governmental and other authorities to contain, mitigate, and combat the pandemic on our business, operations, financial performance and prospects; (ii) the costs and effects of litigation, including legal fees and other expenses, settlements and judgments; (iii) the risk that we will not be successful in the implementation of our capital utilization strategy, new lines of business, new products and services, or other strategic project initiatives; (iv) 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 and, in the case of our recent acquisition of Deepstack Technologies, reputational risk, regulatory risk and potential adverse reactions of the Company's or Deepstack's customers, suppliers, vendors, employees or other business partners; (v) 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 may lead to increased loan delinquencies, losses, and nonperforming assets in our loan portfolio, and may result in our allowance for credit losses not being adequate and require us to materially increase our credit loss reserves; (vi) the quality and composition of our securities portfolio; (vii) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, or changes in financial markets, and the risk of recession; (viii) changes in the interest rate environment and levels of general interest rates, including the recent and anticipated increases by the FRB in its benchmark rate, the impacts of inflation, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin, and funding sources; (ix) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (x) our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities; (xi) 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 credit losses, result in write-downs of asset values, 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; (xii) 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; (xiii) our ability to control operating costs and expenses; (xiv) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (xv) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvi) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xvii) uncertainty regarding the expected discontinuation of the London Interbank Offered Rate (“LIBOR”) and the use of alternative reference rates; (xviii) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, 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 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; (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 standards; (xxv) continuing impact of the Financial Accounting Standards Board’s credit loss accounting standard, referred to as Current Expected Credit Loss, which requires 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) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or our bank subsidiary, or repurchases of our common stock; and (xxviii) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in this report and from time to time in other documents that we file with or furnish to the SEC.

3 (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) 3Q22 capital ratios are preliminary THIRD QUARTER 2022 RESULTS ($ in Thousands Except Per Share Data) 3Q22 2Q22 3Q21 Net interest income $ 79,408 $ 78,299 $ 62,976 (Reversal of) provision for credit losses - - $ (1,147) Net income $ 24,196 $ 26,712 $ 23,170 Net income available to common stockholders $ 24,196 $ 26,712 $ 21,443 Earnings per diluted common share $ 0.40 $ 0.43 $ 0.42 Adjusted net income available to common stockholders (1) $ 26,732 $ 27,767 $ 19,374 Adjusted earnings per diluted common share (1) $ 0.44 $ 0.45 $ 0.38 Pre-tax pre-provision (PTPP) income (1) $ 34,127 $ 36,873 $ 30,684 Adjusted PTPP income (1) $ 37,728 $ 38,371 $ 27,747 Return on average assets (ROAA) 1.02% 1.15% 1.13% PTPP ROAA (1) 1.44% 1.58% 1.50% Adjusted PTPP ROAA (1) 1.59% 1.65% 1.35% Average assets $ 9,408,740 $ 9,342,696 $ 8,141,613 Net interest margin 3.58% 3.58% 3.28% Allowance for credit losses coverage ratio 1.36% 1.34% 1.26% Common equity tier 1 (2) 11.39% 11.29% 10.86% Tangible common equity per share (1) $ 13.79 $ 14.05 $ 13.99 Noninterest-bearing deposits as % of total deposits 40.4% 37.4% 32.2%

4 ENHANCING FRANCHISE VALUE (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 3rd Quarter 2022 Summary Growing Earnings Power • Strong adjusted net income and EPS in a more challenging operating environment • Loan production rate increase and large noninterest-bearing deposit base improves ability to realize more NIM expansion and earnings growth • Excluding our use of capital for the Deepstack acquisition, TBVPS grew in the quarter Continued Growth in Targeted Areas • Noninterest-bearing deposits increased $117 million, or 17% annualized, from prior quarter to represent 40% of total quarter-end deposits • The number of commercial noninterest-bearing deposit accounts grew 7% annualized and commercial noninterest-bearing deposits grew 19% annualized • Total commercial loans, excluding warehouse lending, increased 11% annualized Asset Sensitivity Drives Ability to Expand NIM • 29 basis point increase in average yield on earning assets offsets higher cost of funds and keeps net interest margin consistent with prior quarter • Noninterest-bearing deposits and longer-term fixed-rate funding added in 3Q22 improves asset sensitivity Positive Trends in Asset Quality • Decline in delinquent loans, non-performing loans, and non-performing assets • Extensive stress testing on portfolio indicates asset quality should remain strong if economic conditions deteriorate in near future Acquisition of Deepstack Technologies and Entry into Payments Processing • Adds a high value solution that will:  Provide a consistent, high margin source of fee income (at scale)  Offer another stable source for growth of commercial non-interest bearing deposits  Attract new clients in targeted verticals and advance BANC’s goal to be the hub of the financial services ecosystem for clients while creating another driver of profitable long- term growth and franchise value

5 Adjusted Pre-tax Pre-provision (PTPP) Income (1) $16.0 $13.2 $12.2 $18.9 (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 0.65% 0.83% 0.98% 1.25% 1.06% 1.35% 1.39% 1.55% 1.65% 1.59% $18.9 $20.6 2Q20 $32.7 4Q203Q20 1Q21 3Q21 $12.2 1.13% 2Q21 $27.7 4Q21 $35.8 1Q22 2Q22 $37.7 3Q221Q20 $24.5 $38.4 $16.0 $22.0 +16% +209% Adjusted PTPP Income Adjusted PTPP Income / Avg. Assets CONSISTENT CORE EARNINGS POWER ($ in millions)

6 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS RECONCILIATION • 3Q22: Noninterest expense adjustments relate to merger expenses and professional fees, net of recoveries • 2Q22: Noninterest expense adjustments relate to professional fees, net of recoveries ($ in millions) (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) Adjustments presented utilizing a statutory tax rate of 29.56%; see “Non-GAAP Reconciliation” slides at end of presentation $24.2 $26.7 Adjusted Net Income Available to Common Stockholders (1)(2) Noninterest expense adjustments Net Income Available to Common Stockholders $2.2 $0.4 Loss on alternative energy partnerships $26.7 $27.8 Loss on alternative energy partnerships $0.7 Net income available to common stockholders $0.3 Noninterest expense adjustments Adjusted Net Income Available to Common Stockholders (1)(2) EPS $0.40 EPS $0.45 EPS $0.43 3Q 2022 2Q 2022 EPS $0.44 Highlights

7 LOW COST DEPOSIT FRANCHISE (1) Reflects balance as of period end • 6% YTD increase in noninterest-bearing deposits • 40% percent of deposits are noninterest-bearing, up from 32% a year ago • Targeted deposit strategy has transformed deposit mix and contributed to asset-sensitive profile Cost of Deposits34.0% 0.15% 32.0% 3Q22 32.2% 37.5% 25.0% 3Q21 0.11% 9.0%0.0% 23.5% 2Q22 0.0%6.8% 39.6% 4Q21 0.08% 1Q22 21.4% 32.0% 21.5% 0.0%7.0% 0.17% 37.4% 31.2% 1.8%8.1% 0.47% 40.4% 26.4% 20.4% 4.4% 8.4% Average Cost of deposits Money Market & Savings CDs Noninterest-bearing Interest-bearing checking Brokered CDs 9/30 Spot Rate 0.56% Category 3Q21 4Q21 1Q22 2Q22 3Q22 $ in millions Noninterest-bearing checking $2,107.7 $2,788.2 $2,958.6 $2,826.6 $2,943.6 Interest-bearing checking 2,214.7 2,393.4 2,395.3 2,359.9 1,921.8 Demand deposits 4,322.4 5,181.6 5,354.0 5,186.5 4,865.4 Money Market & Savings 1,661.0 1,751.1 1,605.1 1,622.9 1,478.0 CDs 559.8 506.7 520.7 615.7 614.6 Brokered CDs 0.0 0.0 0.0 133.6 322.4 Total(1) $6,543.2 $7,439.4 $7,479.7 $7,558.7 $7,280.4 Highlights

8 Commercial Noninterest-Bearing Deposits (NIB) and Number of Accounts DEPOSIT ENGINE CONSISTENTLY GENERATES NEW LOW-COST COMMERCIAL DEPOSIT RELATIONSHIPS NIB Commercial Deposits Comprise 88% of Total NIB Deposits ($ millions) 9,920 10,945 11,270 11,444 11,644 14,244 14,292 14,300 14,541 3Q221Q224Q2112/31/19 12/31/20 2Q211Q21 3Q21 2Q22 $1,001 $1,339 $1,519 $1,605 $1,920 $2,550 $2,651 $2,476 $2,592 NIB Business Deposits Accounts NIB Business Deposits 4Q21 Includes PMB Acquisition

9 DIVERSIFIED LOAN PORTFOLIO MITIGATES RISK AND GENERATES ATTRACTIVE RISK-ADJUSTED YIELD • Total Commercial Loans, excluding warehouse, increased $118 million or 11% on an annualized basis • 64% of the loan portfolio is secured by residential real estate • Real estate secured loans weighted average loan-to-values (LTVs) of 57% • 77% of the SFR portfolio have LTVs of less than 70% • 86% of all real estate secured loans have LTVs of less than 70% (1) Reflects balance as of period end 3rd Quarter 2022 2nd Quarter 2022 Change Loan Segment $(1) % Avg. Yield $(1) % Avg. Yield $(1) % Avg. Yield $ in Millions C&I: Warehouse $ 766 11% 5.97% $ 1,160 16% 4.83% $ (394) -5% 1.14% C&I: All Other 1,227 17% 5.09% 1,273 17% 4.54% (46) 0% 0.56% Multifamily 1,698 23% 4.00% 1,572 21% 4.14% 126 2% -0.14% CRE 1,241 17% 4.44% 1,204 16% 4.43% 37 1% 0.01% Construction 236 3% 6.72% 228 3% 5.50% 8 0% 1.22% SBA 86 1% 3.13% 92 1% 3.52% (7) 0% -0.39% Total Commercial Loans 5,255 72% 4.77% 5,531 74% 4.49% (276) -2% 0.28% SFR 1,948 27% 3.85% 1,832 25% 3.84% 115 2% 0.01% Consumer 87 1% 6.05% 88 1% 6.24% (2) 0% -0.19% Total Consumer Loans 2,034 28% 3.94% 1,921 26% 3.96% 114 2% -0.02% Total Loans HFI $ 7,289 100% 4.54% $ 7,451 100% 4.35% $ (162) N/A 0.19% Construction $236 3% Consumer $87 1% SBA $86 1% CRE $1,241 17% 1-4 Res. $1,948 27% Multifamily $1,698 23% C&I $1,993 28%

10 DIVERSIFIED BUSINESS MIX YoY GROWTH IN LOAN FUNDINGS, RATE ON PRODUCTION (1) PMB acquired loans excluded from chart and Total Loan Fundings (2) Includes deferred costs/fees, transfers, sales and other adjustments ($ in millions) Loans Beginning Balance Total Fundings PMB Acquired(1) Total Payoffs Net Di fference Other Change (2) Loans Ending Balance Total Loan Yield Rate on Production Q3 2022 7,455$ 821$ -$ 980$ (159)$ (2)$ 7,294$ 4.54% 5.52% Q2 2022 7,455$ 1,211$ -$ 1,208$ 3$ (2)$ 7,455$ 4.35% 4.20% Q1 2022 7,255$ 968$ -$ 780$ 188$ 12$ 7,455$ 4.26% 3.70% Q4 2021 6,232$ 906$ 963$ 828$ 77$ (17)$ 7,255$ 4.20% 3.74% Q3 2021 5,988$ 763$ -$ 528$ 234$ 9$ 6,232$ 4.18% 3.83% $503 $583 $679 $831 $559 $82 $243 $290 $380 $262 $178 $80 $763 $906 $968 $1,211 $821 ($385) ($575) ($435) ($459) ($239) ($144) ($254) ($317) ($334) ($347) ($28) ($414) ($394) ($528) ($828) ($780) ($1,208) ($980) 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Total Loan Fundings of $821 Million in Q3 2022 Fundings Advances Warehouse Net Advances/Paydowns Payoffs Paydowns Warehouse Net Advances/Paydowns Total Loan Yield Rate on Production ($ in millions)

11 ASSET QUALITY REMAINS STRONG NPLs, Delinquencies, and Classified Loans Delinquencies ($ in millions) Non-performing Loans (NPLs) ($ in millions) Criticized and Classified Loans ($ in millions) ACL / Non-performing Loans (NPLs) ($ in millions) $72.8 $31.9 $19.1 4Q21 $19.1 $26.0 $57.5 0.72% 3Q21 $21.7 1.00% $30.4 $30.6 0.82% 1Q22 $32.5 $29.7 0.83% 2Q22 $36.4 $21.1 0.79% 3Q22 $45.1 $61.0 $62.2 Delinquencies (ex-SFR)SFR Delinquencies PMBC Acquired Delinquencies Delinquencies /Total Loans $125 $101 3Q22 $98 $76 3Q21 $60 4Q21 1Q22 2Q22 $111 $241 $245 $250 $211 $173 Criticized and Classified Loans PMB Acquired Criticized and Classified Loans Classified Loans $29.1 $52.6 $16.5 3Q21 $7.3 0.73% $23.9 $8.0 $7.1 $21.6 0.72% 4Q21 $10.3 $44.2 0.73% 1Q22 $44.4 $34.7$37.1 0.60% 2Q22 0.59% 3Q22 $45.6 $54.5 $42.7 SFR NPLs NPLs (ex-SFR) PMBC Acquired NPLs NPLs/Total Loans-HFI 173% 187% 181% 224% 232% $78.8 3Q21 $98.2 4Q21 $98.6 2Q221Q22 $99.7 $98.8 3Q22 ACL / NPLs ACL (1) The NPL ratio related to BANC originated loans is 0.49% when PMB’s NPLs of $21.6 million and PMB acquired loans outstanding at December 31, 2021 of $905 million are excluded (1)

12 TOP 10 RELATIONSHIPS Non-performing & delinquent loans rollforward Non-performing loans • Non-performing loans decreased $1.8 million to $42.7 million, or 4% • Non-performing loans included $17.9 million relates to loans in a current payment status • Non-performing loans included loans guaranteed by the SBA of $10.4 million Delinquencies • Delinquencies decreased $4.7 million as $30.5 million of additions were mostly offset by $25.2 million of loans returning to current status and $9.8 million of other reductions • Delinquent loans included loans guaranteed by the SBA of $11.5 million • $30.2 million, or 53%, relates to loans in a 30-59 day delinquent status Non-performing Loans ($ in thousands) # 3Q22 2Q22 Delta Loan Category 3Q Accrual Status 3Q Delinquency Status 2Q Accrual Status 1 11,364$ 12,350$ (986) $ C&I Non-Accrual Current Non-Accrual 2 4,920 - 4,920 C&I Non-Accrual 60-89 Accrual 3 3,929 3,929 - SFR Non-Accrual 90+ Non-Accrual 4 3,385 3,523 (138) C&I Non-Accrual Current Non-Accrual 5 3,179 3,189 (10) SBA / C&I Non-Accrual 90+ Non-Accrual 6 2,977 2,977 - SBA Non-Accrual 90+ Non-Accrual 7 2,278 2,326 (48) C&I Non-Accrual Current Non-Accrual 8 1,924 1,924 - SBA Non-Accrual 90+ Non-Accrual 9 1,554 - 1,554 SFR Non-Accrual 90+ Accrual 10 1,201 1,201 - SBA Non-Accrual 90+ Non-Accrual 11+ 5,963 13,024 (7,061) Total 42,674$ 44,443$ (1,769) $ Delinquent Loans ($ in thousands) # 3Q22 2Q22 Delta Loan Category 3Q Delinquency Status 3Q Accrual Status 2Q Delinquency Status 1 5,312$ -$ 5,312$ SFR 30-59 Accrual Current 2 4,920 - 4,920 C&I 60-89 Non-Accrual Current 3 3,929 3,929 - SFR 90+ Non-Accrual 90+ 4 3,179 3,189 (10) SBA / C&I 90+ Non-Accrual 90+ 5 3,031 - 3,031 SFR 30-59 Accrual Current 6 2,977 2,977 - SBA 90+ Non-Accrual 90+ 7 2,871 - 2,871 SFR 30-59 Accrual Current 8 2,486 2,486 (0) SFR 30-59 Accrual 30-59 9 2,175 2,182 (8) SFR 30-59 Accrual 30-59 10 1,924 1,924 - SBA 90+ Non-Accrual 90+ 11+ 24,734 45,504 (20,769) Total 57,537$ 62,190$ (4,653) $

13 ALLOWANCE FOR CREDIT LOSSES WALK ($ in millions) 1.33% (1) 1.26% (1) $99.7 $98.9 Specific Reserve $(0.8) Provision for RUCACL (6/30/22) $(0.6) Net Charge-offs $0.5 $0.1 Portfolio Mix ACL (9/30/22) 1.34% 1.36% 1.36% ACL includes the Allowance for Loan Losses (ALL) and Reserve for Unfunded Loan Commitments (RUC) The $849 thousand decrease in the ACL was due to (i) net charge offs of $849 thousand and (ii) lower specific reserves of $571 thousand, partially offset by (iii) higher reserves for unfunded commitments of $500 thousand and (iv) higher general loan loss reserves of $70 thousand. Changes in general loan loss reserves were driven by changes in portfolio mix including lower loan totals, improved credit quality, and changes in macroeconomic variables used in the model.

14 CONTINUED FOCUS ON EXPENSE MANAGEMENT • Adjusted Noninterest Expense to Average Assets improved 2 bps sequentially • 3Q22 noninterest expense adjustments relate to Deepstack acquisition transaction costs, impact from investments in alternative energy partnerships(2), and indemnified professional fees, net of recoveries, and in the case of 4Q21, PMB merger-related costs (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) Investments in alternative energy partnerships created tax credits in the period of investment Noninterest Expense to Average Assets ($ millions) Adjusted Noninterest Expense(1) to Average Assets ($ millions) $12.9 2.15% $40.7 -$2.9 1.84% $46.0 2.50% 3Q21 $37.8 $0.1 4Q21 $46.5 2.01% 1Q22 $1.5 2Q22 $47.1 2.09% $58.9 $3.6 $47.4 3Q22 $46.6 $48.6 $51.0 Noninterest expense adjustments Noninterest Expense / Average Assets Adjusted Noninterest Expense $46.5 1.99% 2.00% $40.7 3Q21 4Q21 $46.0 2.01%1.95% 3Q221Q22 2.02% $47.1 2Q22 $47.4 Adjusted Noninterest Expense Adjusted Noninterest Expense / Average Assets Highlights

15 Interest Rate Risk Position (within 12 months) Loan & Deposit Mix Rate Sensitive Assets at 33% of Total Assets Loan Portfolio • $2.3 Billion mature or reset within 12 months • $426 Million are at or below their floors • Given a 50 bps market rate increase, 95% of loans with floors are eligible to reprice Cash & Investments • $256 Million in Interest Bearing Cash • $564 Million reprice within 12 months, mostly CLOs INTEREST RATE RISK MANAGEMENT Well positioned for higher rates with a One Year Positive Gap Ratio of 24% HFI Loans: $7.3 billion Total Deposits: $7.3 billion Noninterest- bearing 40% Interest- bearing, Non-Maturity Non-Time 47% Time 13% Hybrid 24% Variable 32% Fixed 44% LESS Rate Sensitive Liabilities at 9% of Total Assets • $725 million CD’s mature or reprice within 12 months • $120 million in overnight borrowings One Year Positive Gap Ratio is 24% of Total Assets

16(1) 3Q22 capital ratios are preliminary. (2) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 3Q22 2Q22 1Q22 4Q21 3Q21 Common Equity Tier 1 (1) 11.39% 11.29% 11.40% 11.31% 10.86% Tier 1 Risk-based Capital (1) 11.39% 11.29% 11.40% 12.55% 12.35% Leverage Ratio (1) 9.53% 9.58% 9.72% 10.37% 9.80% Tangible Equity / Tangible Assets (2) 8.97% 9.03% 9.27% 10.38% 9.78% Tangible Common Equity / Tangible Assets (2) 8.97% 9.03% 9.27% 9.36% 8.63% STRONG CAPITAL BASE Provides buffer for economic environment • 1Q22 included the Series E Preferred Stock Redemption of $98.7 million • 1Q22, 2Q22 and 3Q22 included $4.3 million, $38.9 million and $13.0 million in common stock repurchases, respectively • 3Q22 included the impact from the Deepstack acquisition and 4Q21 included the impact from the PMB acquisition 10.86% 3Q21 3Q22 11.39% Common Equity Tier 1 8.97% 8.63% 3Q223Q21 Tangible Common Equity / Tangible Assets BANC is Focused on Growing Key Capital Ratios

17 • Redeemed Series E preferred stock in the first quarter of 2022 • Through October 18th, 2022 executed $63.7M of $75M common stock share repurchase authorized in 1Q22 • Moved a portion of the securities portfolio to HTM from AFS in 1Q22 to reduce volatility to TBVPS in a rising rate environment • Focus on strategic opportunities to further elevate the client experience and positively impact fee income and shareholder returns 2022 STRATEGIC OBJECTIVES • Better positioned to see lower deposit beta and more positive impact on NIM than in last rising interest rate cycle • Robust deposit gathering engine has increased average noninterest-bearing deposits to 38% of average deposits • One year positive gap ratio has increased to 24% at 3Q22 from 7% at 4Q19 • Positive gap ratio and a stable and large demand deposit base provide upside in rising rates • Strong commercial banking pipeline and growth • Continue expanding presence in large vertical markets • Capitalize on position as a talent magnet in California to continue selectively adding proven commercial bankers • Achieve greater than 40% cost savings during first half of 2022 (achieved) • Identify additional opportunities for cost savings from larger organization • Expand relationships with new clients that have larger financing needs • Increase technology investments while still realizing improved operating leverage • Position BANC as the financial services ecosystem hub for our clients • Elevate the client experience and offer innovative solutions directly and through fintech partnerships (achieved via Finexio partnership and Deepstack acquisition) Fully Realize Synergies of PMB Acquisition Continue Generating Strong Loan Production Capitalize on Asset Sensitivity Accelerate Investment in Technology Continue Optimizing Use of Capital to Increase Earnings and Enhance Franchise Value Continued Balance Sheet Growth and Expanding Profitability

18  Provides Banc of California with proprietary payments software solution and entrance into payment processing space for business customers  Provides opportunity to offer payment processing services to current Banc of California clients as well as integrated software vendors (“ISVs”), e-commerce marketplaces, fintechs and other merchants serving business clients. Opening deposit accounts at Banc of California will give businesses same day visibility into merchant transactions and faster funding  Provides a meaningful opportunity to grow fee income and core deposits  Further differentiates the Banc of California experience and provides commercial banking teams with another tool for developing relationships with commercial clients in California  Advances Banc of California’s goal to be the hub of the financial services ecosystem for clients while creating another driver of profitable long-term growth and franchise value  Advanced Technology: Built to ISO 8583 standards, with ability to accurately process transactions at a speed and volume capable of connecting directly to card brands. Eventually can reduce processing costs while also having the ability to build data warehouse necessary to provide real-time insights for clients Banc of California has acquired the assets of Global Payroll Gateway and its subsidiary Deepstack Technologies LLC (“Deepstack”) for $24 million in cash and stock ➢ Software-led and e-commerce payments platform that provides clients with payment solutions, including merchant processing, payments acceptance and disbursements, tokenization, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services CEO: Jayme Amirie Offices: Southern, CA and Jupiter, FL Overview ➢ Founded: 2010 ➢ 11 Employees, with 8 located in Southern CA and 3 in FL ➢ All employees joined BANC ➢ www.deepstack.io DEEPSTACK TECHNOLOGIES Overview of Transaction

19 Company Needs Current BANC Platform BANC + Deepstack Credit Lines P P Business Loans P P Deposit Accounts P P Treasury Management P P ACH Processing P P Payment Processing P Card Acceptance P Payout Management P Fraud & Chargeback Management P Tailored Payments / Reporting Products P T ra d it io n a l B a n k in g S e rv ic e s N e w C li e n t S e rv ic e s Scalable, Meaningful Fee-Based Income • Provides BANC with growing source of recurring fee income New Clients in Verticals Attractive to BANC • Mid-size ISVs targeting businesses need customized payment solutions that help them overcome payment and banking system barriers that processors and banks don’t offer today Generates Noninterest-Bearing (NIB) Deposits • Same day visibility into merchant transactions will be available to merchants who open their settlement account at Banc of California – a service few other merchant processors currently provide Customer Solutions Via Technology Focus • Banc of California is providing all the solutions business clients need under one roof Strategic Rationale Franchise Enhancing • A proprietary, software-based payments platform that can be customized for clients Owning the technology that powers payment processing offers clients same day visibility into their receivables when they have their merchant settlement account at BANC, providing BANC with another source of NIB deposits The transaction provides a full suite of payments capabilities few other banks have DEEPSTACK TECHNOLOGIES Differentiated Tech & Full Suite of Payment Products

20 APPENDIX bancofcal.com

21 REAL ESTATE LOAN PORTFOLIO HAS LOW LTVS $ in millions (1) Excludes Warehouse credit facilities Real Estate Loan Balances(1) SFR Portfolio by LTV 65% $3,727 1Q224Q21 60% 59%59% 3Q21 $5,124 2Q22 70% 3Q22 $4,274 $4,424 $4,837 RE Loans / Loans-HFI RE Loans 60% to 70% 50% to 60% <50% 70% to 80% >80% • ~86% of all real estate secured loans have LTVs of less than 70% • Weighted average LTV is 57% Real Estate(1) LTVs $ % Count <50% $ 1,502 29% 1,161 50% to 60% 1,200 23% 501 60% to 70% 1,685 33% 635 70% to 80% 660 13% 432 >80% 76 1% 40 Total $ 5,124 100% 2,769 $ in Millions SFR LTVs $ % Count <50% $ 657 34% 735 50% to 60% 355 18% 270 60% to 70% 478 25% 367 70% to 80% 422 22% 379 >80% 36 2% 30 Total $ 1,948 100% 1,781 $ in Millions • ~77% of all existing SFR have LTVs of less than 70% • Weighted average LTV is 57%

22 CALIFORNIA-CENTRIC CRE AND MULTIFAMILY PORTFOLIOS HAVE LOW WEIGHTED-AVERAGE LTV CRE & Multifamily by Collateral Type 58% 8% 12% 11% 6% 1% 4% 92% 8% 97% 3% 4% 41% 44% 9% 2% Multifamily 57% Health Facility Retail Industrial Owner Occupied Mixed Use Multi Tenant Single Tenant Strip Center Non Owner Occupied Neighborhood Shopping Center Other Office Other <1% Residential Other Hospitality Collateral Type Count Balance Avg. Loan Size W.A. LTV $ in Millions MultiFamily 606 $ 1,698 $ 2.8 57.8% Office 74 338 4.6 55.1% Retail 66 325 4.9 53.0% Industrial 77 248 3.2 59.3% Health Facility 8 103 12.9 58.1% Hospitality 28 43 1.5 48.1% Other 78 183 2.4 54.6% Total CRE & MF 937 $ 2,939 $ 3.1 56.7%

23 ~54% C&I Concentration toward Businesses focused on Finance (including Warehouse), and Real Estate and Rental Leasing Limited Exposure to: • 2% Food Services • 1% Transportation • <1% in Accommodations All Other C&I includes a diverse mix of industry sectors • 4% Arts, Entertainment, and Recreation • 2% Professional Services • 2% Management of Companies • 2% Education Services 38% 10% 6% 6% 5% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2% 1% 0% 9% Finance and Insurance: Warehouse Real Estate & Rental Leasing Finance and Insurance: Other Manufacturing Healthcare and Social Assistance Arts, Entertainment, & Recreation Television / Motion Pictures Gas Stations Other Retail Trade Construction Professional Services Whole Sale Trade Management of Companies and Enterprises Educational Services Food Services Transportation Accommodations All Other C&I 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% DIVERSIFIED AND LOW AVERAGE BALANCE C&I PORTFOLIO NAICS Industry Count $ Avg. Loan Size $ in Millions Finance: Warehouse 58 $ 766 $ 13.2 Real Estate & Rental Leasing 165 190 1.2 Finance: Other 43 125 2.9 Manufacturing 115 119 1.0 Healthcare and Social Assistance 113 98 0.9 Arts, Entertainment, & Recreation 30 70 2.3 Television / Motion Pictures 29 71 2.4 Gas Stations 39 60 1.5 Other Retail Trade 90 59 0.7 Construction 89 46 0.5 Professional Services 187 41 0.2 Wholesale Trade 75 42 0.6 Management of Companies & 5 36 7.3 Transportation 74 20 0.3 Food Services 18 31 1.7 Educational Services 18 36 2.0 Accommodations 6 9 1.5 All Other C&I 265 173 0.7 Total C&I 1,419 $ 1,993 $ 1.4

24 STABLE, LOW COST DEPOSIT BASE PROTECTS NET INTEREST MARGIN Net Interest Margin Drivers 4.33% 0.33% 1.02% 4.27% 3.09% 3.86% 0.58% 2.97% 4.04% 0.25% 1Q20 1.71% 0.11% 1.11% 1Q21 0.25% 0.71% 3.51% 4Q21 0.25% 3.81% 1.29% 0.25% 2Q20 3.09% 0.51% 3.58% 0.25% 3Q20 3.78% 4.04% 3.87% 0.25% 3.38% 0.36% 3.27% 0.89% 4Q20 3.19% 0.28% 0.17%0.25% 0.83% 0.23% 0.25% 0.77% 2Q21 0.74% 3.73% 4.06% 3.28% 0.15% 1Q22 0.67% 3Q21 3.66% 0.61% 3.28% 1.58% 2Q22 3.08% 3.58% 0.47% 1.20% 3Q22 0.08% Net Interest Margin Earning Asset Yield Cost of Total Deposits Fed Funds Rate Interest-Bearing Liabilities

25 STRONG ALLOWANCE COVERAGE RATIO; ALLOCATION OF RESERVE BY LOAN TYPE • Allowance for Credit Losses (ACL) includes Reserve for Unfunded Commitments • Higher ACL coverage ratio of 1.36% at the end of 3Q22 compared to 1.34% at the end of 2Q22 ACL Composition 9/30/2022 6/30/2022 ($ in thousands) Amount % of Loans Amount % of Loans Commercial real estate $ 16,836 1.36% $ 15,742 1.31% Multifamily 15,953 0.94% 15,678 1.00% Construction 5,423 2.29% 4,255 1.86% Commercial and industrial 36,470 2.97% 38,177 3.00% Commercial and industrial - warehouse 2,355 0.31% 3,236 0.28% SBA 2,960 3.45% 3,033 3.29% Total commercial loans 79,997 1.52% 80,121 1.45% Single family residential mortgage 11,847 0.61% 12,805 0.70% Other consumer 600 0.69% 867 0.98% Total consumer loans 12,447 0.61% 13,672 0.71% Allowance for loan losses 92,444 1.27% 93,793 1.26% Reserve for unfunded commitments 6,405 0.09% 5,905 0.08% Allowance for credit losses $ 98,849 1.36% $ 99,698 1.34%

26(1) $329 million of AFS securities were reclassified to HTM during 1Q22 Portfolio Average Balances & Yields Securities Portfolio Detail(1) SECURITIES PORTFOLIO Portfolio Profile CompositionCredit Rating AAA 43% AA 43% BB 1% BBB 13% Private Label RMBS 4% QoQ Duration (yrs) 3Q22 2Q22 Change 3Q22 Gov’t & Agency (MBS, CMO, & SBA) $ 164.0 $ 178.5 $ (14.5) 2.4 CLOs 472.7 478.2 (5.5) 0.1 Corporate Securities 169.4 163.3 6.1 2.9 Private Label RMBS 41.5 45.5 (4.0) 8.6 AFS $ 847.6 $ 865.4 $ (17.9) 1.5 Gov’t & Agency (MBS, CMO, & SBA) 214.6 215.1 (0.5) 10.0 Municipal 114.2 114.2 (0.0) 10.4 HTM $ 328.8 $ 329.3 $ (0.5) 10.2 Total Securities $ 1,176.3 $ 1,194.7 $ (18.4) 3.9 Security Type ($ in millions) 2.68% 3Q21 2.11% 1Q22 2.13% 4Q21 $1,347 2.29% 2Q22 3.38% 3Q22 $1,291 $1,292 $1,217 $1,195 Average Balance ($ in millions) Yield Munis 10% CLO 40% Corporates 14% Gov’t & AGC 32%

27 CLO Industry Breakdown $473 million at September 30, 2022 (net of $20 million unrealized loss) • CLO portfolio has underlying diversified exposure with largest segment in Healthcare & Pharmaceuticals at 12% • AAA and AA holdings provide principal protection – exposure to underlying credit losses would require a combination of lifetime defaults (25- 40% CDR), loss severity (40-50%), and prepayment assumptions (10- 20% CPR) • Under these assumptions, the underlying securities would need to take losses of approximately 30% before we would anticipate incurring losses on principal • 3Q22 average CLO portfolio yield of 4.05%, up from 2.62% in 2Q22 • Quarterly reset based on 3 Month Libor + 1.62% • CLOs included an unrealized loss of $20 million as of 3Q22 compared to $14.6 million as of 2Q22. CLO PORTFOLIO HAS DIVERSIFIED EXPOSURE CREDIT ENHANCEMENT PROVIDES SIGNIFICANT PRINCIPAL PROTECTION Healthcare & Pharmaceuticals 12% High Tech Industries 11% Banking, Finance, Insurance & Real Estate 9% Services: Business 8% Media: Broadcasting & Subscription 5% Beverage, Food & Tobacco 5% Hotel, Gaming & Leisure 4% Construction & Building 3% Chemicals, Plastics, & Rubber 3% Retail 3% Capital Equipment 3% Automotive 3% Services: Consumer 3% Telecommunications 3% Containers, Packaging & Glass 3% Other 22%

28 BANC FAST FACTS (1) Non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 3Q22 2Q22 1Q22 4Q21 3Q21 $ 9,369 $ 9,502 $ 9,584 $ 9,394 $ 8,279 848 865 899 1,316 1,303 329 329 329 - - 7,289 7,451 7,452 7,251 6,229 7,280 7,559 7,480 7,439 6,543 $ 79.4 $ 78.3 $ 76.4 $ 73.0 $ 63.0 5.7 7.2 5.9 5.6 5.5 85.1 85.5 82.4 78.6 68.5 50.5 47.6 46.4 60.1 39.6 0.5 1.0 0.2 (1.2) (1.8) 51.0 48.6 46.6 58.9 37.8 34.1 36.9 35.8 19.8 30.7 - - (31.5) 11.3 (1.1) 9.9 10.2 18.8 2.8 8.7 24.2 26.7 48.5 5.8 23.2 - - 5.2 1.7 1.7 $ 24.2 $ 26.7 $ 43.3 $ 4.0 $ 21.4 $ 0.40 $ 0.43 $ 0.69 $ 0.07 $ 0.42 $ 13.79 $ 14.05 $ 14.05 $ 13.88 $ 13.99 1.02% 1.15% 2.09% 0.24% 1.13% 55.66% 55.11% 56.52% 58.47% 59.49% (Dollars in millions) Income tax expense Net interest income Total noninterest income Total assets Securities available-for-sale Loans held-for-investment Total deposits Total revenue Noninterest expense Loss (gain) in alternative energy partnership investments Total noninterest expense Pre-tax pre-provision income(1) (Reversal of) provision for credit losses Securities held-to-maturity Preferred dividend and other adjustments Net income available to common stockholders Diluted earnings per common share Net income Tangible common equity per common share (1) Return on average assets Adjusted efficiency ratio(1)

29 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 tangible assets, tangible equity, tangible common equity, tangible equity to tangible assets, tangible common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest expense, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income (loss), adjusted PTPP income (loss), PTPP income (loss) ROAA, adjusted PTPP income (loss) ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS) and adjusted return on average assets (ROAA) 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 equity. Tangible common equity is calculated by subtracting preferred stock from tangible equity. Return on average tangible common equity is computed by dividing net income (loss) available to common stockholders, after adjustment for amortization of intangible assets, 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 total revenue and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by total revenue. Adjusted net income (loss) is calculated by adjusting net income (loss) for tax- effected noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is computed by dividing annualized adjusted net income by average assets. Adjusted net income (loss) available to common stockholders is computed by removing the impact of preferred stock redemptions from adjusted net income (loss). Adjusted diluted earnings per share is computed by dividing adjusted net income (loss) available to common stockholders by the weighted average diluted common shares outstanding. 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 28-32 of this presentation.

30 NON-GAAP RECONCILIATION (Dollars in thousands) 3Q22 2Q22 1Q22 4Q21 3Q21 Net interest income $ 79,408 $ 78,299 $ 76,441 $ 73,039 $ 62,976 Noninterest income 5,681 7,186 5,910 5,605 5,519 Total revenue 85,089 85,485 82,351 78,644 68,495 Noninterest expense 50,962 48,612 46,596 58,872 37,811 Pre-tax pre-provision income(1) $ 34,127 $ 36,873 $ 35,755 $ 19,772 $ 30,684 Total revenue $ 85,089 $ 85,485 $ 82,351 $ 78,644 $ 68,495 Noninterest expense $ 50,962 $ 48,612 $ 46,596 $ 58,872 $ 37,811 Total noninterest expense adjustments (3,601) (1,498) (52) (12,891) 2,937 Adjusted noninterest expense(1) 47,361 47,114 46,544 45,981 40,748 Adjusted pre-tax pre-provision income(1) $ 37,728 $ 38,371 $ 35,807 $ 32,663 $ 27,747 Average Assets $ 9,408,740 $ 9,342,696 $ 9,392,305 $ 9,331,955 $ 8,141,613 Pre-tax pre-provision ROAA(1) 1.44% 1.58% 1.54% 0.84% 1.50% Adjusted pre-tax pre-provision ROAA(1) 1.59% 1.65% 1.55% 1.39% 1.35% Efficiency Ratio(1) 59.89% 56.87% 56.58% 74.86% 55.20% Adjusted efficiency ratio(1) 55.66% 55.11% 56.52% 58.47% 59.49% (1) Non-GAAP measure

31 NON-GAAP RECONCILIATION (Dollars in thousands) 3Q22 2Q22 1Q22 4Q21 3Q21 Adjusted Noninterest Expense Total noninterest income $ 5,681 $ 7,186 $ 5,910 $ 5,605 $ 5,519 Total noninterest expense $ 50,962 $ 48,612 $ 46,596 $ 58,872 $ 37,811 Noninterest expense adjustments: Professional recoveries (fees) (1,017) (455) 106 (642) 2,152 Acquisition, integration and transaction costs (2,080) - - (13,469) (1,000) Noninterest expense adjustments before gain (loss) in alternative energy partnership investments (3,097) (455) 106 (14,111) 1,152 (Loss) gain in alternative energy partnership investments (504) (1,043) (158) 1,220 1,785 Total noninterest expense adjustments (3,601) (1,498) (52) (12,891) 2,937 Adjusted noninterest expense(1) $ 47,361 $ 47,114 $ 46,544 $ 45,981 $ 40,748 Average assets $9,408,740 $9,342,696 $9,392,305 $9,331,955 $8,141,613 Noninterest expense / Average assets 2.15% 2.09% 2.01% 2.50% 1.84% Adjusted noninterest expense / Average assets(1) 2.00% 2.02% 2.01% 1.95% 1.99% (1) Non-GAAP measure

32 NON-GAAP RECONCILIATION (1) Non-GAAP measure (Dollars in thousands) 3Q22 2Q22 1Q22 4Q21 3Q21 Tangible Common Equity to Tangible Assets Ratio Total assets $ 9,368,578 $ 9,502,113 $ 9,583,540 $ 9,393,743 $ 8,278,741 Less: goodwill (114,312) (95,127) (95,127) (94,301) (37,144) Less: other intangible assets (8,081) (4,677) (4,990) (6,411) (1,787) Tangible assets(1) $ 9,246,185 $ 9,402,309 $ 9,483,423 $ 9,293,031 $ 8,239,810 Total stockholders' equity $ 951,990 $ 949,130 $ 979,009 $ 1,065,290 $ 844,803 Less: preferred stock - - - (94,956) (94,956) Total common stockholders' equity $ 951,990 $ 949,130 $ 979,009 $ 970,334 $ 749,847 Total stockholders' equity $ 951,990 $ 949,130 $ 979,009 $ 1,065,290 $ 844,803 Less: goodwill (114,312) (95,127) (95,127) (94,301) (37,144) Less: other intangible assets (8,081) (4,677) (4,990) (6,411) (1,787) Tangible equity(1) 829,597 849,326 878,892 964,578 805,872 Less: preferred stock - - - (94,956) (94,956) Tangible common equity(1) $ 829,597 $ 849,326 $ 878,892 $ 869,622 $ 710,916 Total stockholders' equity to total assets 10.16% 9.99% 10.22% 11.34% 10.20% Tangible equity to tangible assets(1) 8.97% 9.03% 9.27% 10.38% 9.78% Tangible common equity to tangible assets(1) 8.97% 9.03% 9.27% 9.36% 8.63% Common shares outstanding 59,679,558 59,985,736 62,077,312 62,188,206 50,321,096 Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321 Total common shares outstanding 60,156,879 60,463,057 62,554,633 62,665,527 50,798,417 Book value per common share $ 15.83 $ 15.70 $ 15.65 $ 15.48 $ 14.76 Tangible common equity per common share(1) $ 13.79 $ 14.05 $ 14.05 $ 13.88 $ 13.99

33 NON-GAAP RECONCILIATION (Dollars in thousands) 3Q22 2Q22 1Q22 4Q21 3Q21 Return on tangible common equity Average total stockholders' equity $ 960,806 $ 969,885 $ 1,049,912 $ 1,035,782 $ 847,941 Less: Average preferred stock - - (75,965) (94,956) (94,956) Average common stockholders' equity 960,806 969,885 973,947 940,826 752,985 Less: Average goodwill (98,916) (95,127) (94,307) (86,911) (37,144) Less: Average other intangible assets (4,570) (4,869) (6,224) (4,994) (1,941) Average tangible common equity(1) $ 857,320 $ 869,889 $ 873,416 $ 848,921 $ 713,900 Net income available to common stockholders $ 24,196 $ 26,712 $ 43,345 $ 4,024 $ 21,443 Add: Amortization of intangible assets 396 313 441 430 282 Less: Tax effect on amortization of intangible assets(2) (83) (66) (93) (90) (59) Net income available to common stockholders after the adjustments for intangible assets(1) $ 24,509 $ 26,959 $ 43,693 $ 4,364 $ 21,666 Return on average equity 9.99% 11.05% 18.74% 2.20% 10.84% Return on average tangible common equity(1) 11.34% 12.43% 20.29% 2.04% 12.04% (1) Non-GAAP measure (2) Adjustments shown net of a statutory Federal tax rate of 21%

34 NON-GAAP RECONCILIATION (1) Net income for the three months ended March 31, 2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan; there is no similar recovery in any of the other periods presented. The Bank previously recognized a $35.1 million charge-off for this loan during the third quarter of 2019. (2) Net income for the three months ended December 31, 2021 includes an $11.3 million pre-tax charge for the expected lifetime credit losses for non-purchased credit deteriorated loans acquired in the PMB Acquisition; there is no similar charge in any of the other periods presented. (3) Tax impact of adjustments shown at a statutory tax rate of 29.6%. (4) Non-GAAP measure. (5) Represents adjusted net income available to common stockholders divided by average diluted common shares. (Dollars in thousands, except per share data) 3Q22 2Q22 1Q22 4Q21 3Q21 Adjusted net income Net income(1)(2) $ 24,196 $ 26,712 $ 48,512 $ 5,751 $ 23,170 Adjustments: Noninterest expense adjustments 3,601 1,498 52 12,891 (2,937) Tax impact of adjustments above(3) (1,065) (443) (15) (3,811) 868 Tax adjustment: tax impact from exercise of stock appreciation rights - - - - - Adjustments to net income 2,536 1,055 37 9,080 (2,069) Adjusted net income(4) $ 26,732 $ 27,767 $ 48,549 $ 14,831 $ 21,101 Average Assets $ 9,408,740 $ 9,342,696 $ 9,392,305 $ 9,331,955 $ 8,141,613 ROAA 1.02% 1.15% 2.09% 0.24% 1.13% Adjusted ROAA(4) 1.13% 1.19% 2.10% 0.63% 1.03% Adjusted net income available to common stockholders Net income available to common stockholders $ 24,196 $ 26,712 $ 43,345 $ 4,024 $ 21,443 Adjustments to net income 2,536 1,055 37 9,080 (2,069) Adjustments for impact of preferred stock redemption - - 3,747 - - Adjusted net income available to common stockholders (4) $ 26,732 $ 27,767 $ 47,129 $ 13,104 $ 19,374 Average diluted common shares 60,492,460 61,600,615 62,906,003 60,690,046 50,909,317 Diluted EPS $ 0.40 $ 0.43 $ 0.69 $ 0.07 $ 0.42 Adjusted diluted EPS(4)(5) $ 0.44 $ 0.45 $ 0.75 $ 0.22 $ 0.38

bancofcal.com 35