banc-20201022

EX 99.1

Banc of California Reports Third Quarter 2020 Financial Results

SANTA ANA, Calif., (October 22, 2020) — Banc of California, Inc. (NYSE: BANC) today reported net income available to common stockholders for the third quarter of 2020 of $12.1 million, or diluted earnings per common share of $0.24.

Highlights for the third quarter included:

•Noninterest-bearing deposit balances increased $59.2 million during the quarter and represented 24% of total deposits at September 30, 2020, up from 19% a year earlier

•Total checking balances increased $257.7 million during the quarter and represented 58% of total deposits at September 30, 2020, up from 45% a year earlier

•Net interest margin remained stable at 3.09%

•Average cost of total deposits declined 20 basis points from the prior quarter to 0.51%, with period-end cost of deposits at 0.39%

•Total deferrals/forbearances declined to $282.5 million at September 30, 2020 from $604.2 million

•Allowance for credit losses remained strong at 1.66% of total loans

•Common Equity Tier 1 capital at 11.64%

Jared Wolff, President & CEO of Banc of California, commented, “Our third quarter results reflect the growing earnings momentum that we have been building following nearly 18 months of restructuring our operations. Our strong execution on the strategies we have identified to enhance the value of our franchise continued to result in positive trends on many fronts including a further reduction in our cost of deposits, a stable net interest margin, and improved operating efficiencies. These efforts translated into a significant improvement in earnings and pre-tax pre-provision income.”

“Our business development efforts continue to gain traction despite the impact of the COVID-19 pandemic. We are consistently adding new commercial banking relationships, which resulted in our fifth consecutive quarter of demand deposit account growth and further improvement in our mix of deposits. The commercial banking team we have built is also effectively bringing in new, high quality commercial loans to offset the planned run-off of our single-family residential portfolio. As a result, we saw an increase in total loan balances in the third quarter, while our mix of loans continued to shift more towards relationship-based business loans.”

“We believe that we continue to have many levers to pull that will further improve our financial performance. While the ongoing pandemic creates a level of near-term uncertainty, we believe that over the longer-term, we are very well positioned to generate earning asset growth, expand our net interest margin, realize additional operating leverage, and deliver a higher level of earnings and returns for our shareholders as the economy strengthens,” said Mr. Wolff.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “We are very pleased with our third quarter performance and results which are a reflection of executing on our strategic vision. Our net interest margin remained unchanged at 3.09% as we successfully lowered our average cost of funds 21 basis points which helped absorb the decrease in our average earning assets yield. Our period end total deposits costs also fell 20 basis points to 39 basis points. Our loan portfolio remains well-positioned as it is heavily weighted towards real estate loans with low loan-to-values and we saw lower levels of loans on deferment and forbearance. Our allowance for credit losses to total loans was 1.66% and is a reflection of the considerable uncertainty of the timing and magnitude of the impact of the pandemic. Nonetheless, we are confident in our ability to continue to execute on our initiatives and optimize our capital in ways that will be accretive to earnings and create further value for our shareholders.”

EX 99.1

Income Statement Highlights


	Three Months Ended														Nine Months Ended
	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		September 30, 2020		September 30, 2019
	($ in thousands)
Total interest and dividend income	$	69,666	$	72,697	$	74,714	$	83,702	$	92,657	$	217,077	$	307,409
Total interest expense	13,811		17,382		22,853		27,042		33,742		54,046		115,906
Net interest income	55,855		55,315		51,861		56,660		58,915		163,031		191,503
Total noninterest income	3,954		5,528		2,061		4,930		3,181		11,543		7,186
Total revenue	59,809		60,843		53,922		61,590		62,096		174,574		198,689
Total noninterest expense	40,394		72,770		46,919		47,483		43,240		160,083		148,989
Pre-tax / pre-provision income (loss)	19,415		(11,927)		7,003		14,107		18,856		14,491		49,700
Provision for (reversal of) credit losses	1,141		11,826		15,761		(2,976)		38,607		28,728		38,805

Income tax expense (benefit)	2,361		(5,304)		(2,165)		2,811		(5,619)		(5,108)		1,408


Net income (loss)	$	15,913	$	(18,449)	$	(6,593)	$	14,272	$	(14,132)	$	(9,129)	$	9,487

Net income (loss) available to common stockholders⁽¹⁾	$	12,084	$	(21,936)	$	(9,694)	$	10,415	$	(22,722)	$	(19,265)	$	(8,015)

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

Net interest income

Q3-2020 vs Q2-2020

Net interest income increased $0.5 million to $55.9 million for the third quarter due mostly to lower funding costs, offset by lower yields on interest-earning assets. Compared to the prior quarter, average interest-earning assets declined by $14.4 million to $7.18 billion, due to lower average loans of $174.0 million, offset by higher average securities of $126.8 million and other interest-earning assets of $32.8 million. During the third quarter, average deposits increased $164.3 million, consisting of higher average interest-bearing deposits of $156.6 million and higher average noninterest-bearing deposits of $7.7 million. Average FHLB advances decreased $211.0 million due to current quarter deposit growth and the impact of the early payoff of $100.0 million in FHLB advances at the end of the second quarter.

The net interest margin remained unchanged compared to the prior quarter at 3.09% for the third quarter as the average cost of funds decreased 21 basis points, offset by a 20 basis point decrease in the average earning-assets yield. The yield on average interest-earning assets decreased to 3.86% for the third quarter from 4.06% for the second quarter due to lower yields on most interest-earning asset classes and the change in the mix of interest-earning assets. The average yield on loans declined only 2 basis points to 4.46% during the third quarter as higher prepayment penalty fees and PPP fee income helped to offset the decreases in loan yields due to the mix of loans and lower interest rate environment. The third quarter includes $2.1 million of PPP fee income, which increased the net interest margin by 11 basis points, compared to $1.7 million in the second quarter which increased the net interest margin by 10 basis points. The average yield on securities decreased 69 basis points to 2.26% due mostly to a 106 basis point decrease in the collateralized loan obligations (CLOs) yield to 2.16% for the third quarter from 3.22% for the second quarter as these securities reprice quarterly.

The average cost of funds decreased 21 basis points to 0.82% for the third quarter from 1.03% for the second quarter. This decrease was driven by the lower average cost of interest-bearing liabilities and improved funding mix, including higher average noninterest-bearing deposits during the third quarter. We continue to reduce our reliance on high cost transaction accounts, non-brokered certificates of deposits, and wholesale funds as we continue to execute on our relationship-focused business banking strategy. The average cost of interest-bearing liabilities decreased 27 basis points to 1.02% for the third quarter from 1.29% for the second quarter due to actively managing down the cost of interest-bearing deposits into the current rate environment. The average cost of interest-bearing deposits declined 27 basis points to 0.66% for the third quarter from 0.93% for the prior quarter. Additionally, average noninterest-bearing deposits increased by $7.7 million and represented 22.9% of total average deposits in the third quarter compared to 23.4% of total average deposits for the second quarter. Our total cost of average deposits decreased 20 basis points to 0.51% for the third quarter. The spot rate of total deposits at the end of the third quarter of 2020 was 0.39%.

EX 99.1

YTD 2020 vs YTD 2019

Net interest income for the nine months ended September 30, 2020 decreased $28.5 million to $163.0 million from $191.5 million for the same 2019 period. Net interest income was impacted by the overall decrease in market interest rates between periods and lower average interest-earning assets, as a result of targeted sales of securities and loans during 2019, in line with our strategy of remixing the loan portfolio towards relationship-based lending, offset by a higher net interest margin. For the nine months ended September 30, 2020, average interest-earning assets declined $1.87 billion to $7.14 billion, and the net interest margin increased 21 basis points to 3.05% for the nine months ended September 30, 2020 compared to 2.84% for the same 2019 period.

Our average yield on interest-earning assets decreased 50 basis points to 4.06% for the nine months ended September 30, 2020 as compared to 4.56% during the same 2019 period. The decrease in yield was primarily attributable to lower average yields on the loan and securities portfolios. Our average yield on loans was 4.50% for the nine months ended September 30, 2020, compared to 4.77% for the same 2019 period, primarily due to lower market interest rates and a lower percentage of higher-yielding commercial and industrial balances in the portfolio. Our average yield on securities decreased 109 basis points due mostly to CLOs repricing into the lower rate environment and a decrease in average CLO balances.

The average cost of funds decreased to 1.08% for the nine months ended September 30, 2020 from 1.83% for the same 2019 period. This decrease was driven by the lower average cost of interest-bearing liabilities and the improved funding mix, including higher average noninterest-bearing deposits. The 74 basis point decline in the average cost of interest-bearing liabilities to 1.34% for the nine months ended September 30, 2020 from 2.08% for the same 2019 period was driven by the lower average cost of interest-bearing deposits as they reprice into the lower interest rate environment and the lower average cost of FHLB term advances resulting from maturities and early repayments during the year and as a result of the refinancing of advances during the second quarter of 2020. The average cost of interest-bearing deposits declined 89 basis points to 0.98% from the prior period due to actively managing down deposit rates in response to the interest rate cuts by the Federal Reserve in March of 2020 and a lower reliance on brokered deposits. Additionally, average noninterest-bearing deposits increased by $245.8 million when compared to the same 2019 period. Our cost of average total deposits decreased 83 basis points to 0.76% for the nine months ended September 30, 2020 when compared to the same 2019 period.

Provision for credit losses

Q3-2020 vs Q2-2020

The provision for credit losses totaled $1.1 million for the third quarter, compared to $11.8 million for the second quarter. The third quarter provision for credit losses is comprised of $0.9 million in general reserves and $1.2 million related to specific reserves, offset by provision release of $1.0 million related to unfunded commitments. The general provision is due to changes in key macro-economic forecast variables, such as unemployment and gross domestic product, improved credit quality metrics, and higher period end loan balances of $50.3 million.

YTD 2020 vs YTD 2019

During the nine months ended September 30, 2020, the provision for credit losses totaled $28.7 million under the CECL model, compared to $38.8 million under the incurred loss model during 2019. The lower provision for credit losses was primarily the result of lower net charge-offs and lower period end loan balances of $705.3 million, offset by increases from using the new CECL model, the estimated future impact of the health crisis on our loans, and higher specific reserves.

Noninterest income

Q3-2020 vs Q2-2020

Noninterest income decreased $1.6 million, or 28%, to $4.0 million for the third quarter due mostly to lower gains on sale of securities. The second quarter of 2020 included a $2.0 million gain on the sale of $20.7 million in securities; there were no sales of securities in the third quarter. The third quarter included a $0.3 million gain on sale of $17.8 million in single-family residential mortgage loans held for sale; there were no sales of loans during second quarter of 2020.

YTD 2020 vs YTD 2019

Noninterest income for the nine months ended September 30, 2020 increased $4.4 million, or 60.6%, to $11.5 million compared to the prior year. The increase was primarily attributable to (i) higher net gain on sale of investment securities of $6.9 million, and (ii) higher other income of $7.4 million as the third quarter of 2019 included a previously reported $9.6 million realized loss from interest rate swap agreements entered into in order to offset variability in the fair value of the Freddie Mac

EX 99.1

securitization completed during the third quarter of 2019. These increases were partially offset by (i) lower net gain on sale of loans of $8.4 million as the third quarter of 2019 included a $9.0 million realized gain from the aforementioned securitization, (ii) a $1.6 million loss due to decreases in the fair value of loans held for sale, and (iii) lower customer fees of $0.7 million.

Noninterest expense

Q3-2020 vs Q2-2020

Noninterest expense decreased $32.4 million to $40.4 million for the third quarter compared to the prior quarter. The decrease was primarily due to the second quarter of 2020 including a $26.8 million charge related to the termination of the LAFC naming rights agreements and a $2.5 million debt extinguishment fee, included in all other expenses, associated with the early repayment of certain FHLB term advances. There were no similar expenses during the third quarter. In addition, noninterest expense decreased during the quarter due to (i) lower salaries and benefits expense of $1.0 million due mostly to lower incentive accruals, (ii) a larger gain on investments in alternative energy partnerships of $1.3 million, and (iii) lower advertising costs of $0.9 million due to the termination of the LAFC naming rights agreements. These decreases were partially offset by higher professional fees of $0.6 million. Total operating costs, defined as noninterest expense adjusted for certain non-core items (refer to section Non-GAAP Measures), decreased $2.1 million to $40.7 million for the third quarter compared to $42.8 million for the prior quarter.

YTD 2020 vs YTD 2019

Noninterest expense for the nine months ended September 30, 2020 increased $11.1 million, or 7.4%, to $160.1 million compared to the prior year. The increase was primarily due to: (i) the aforementioned $26.8 million one-time charge related to the termination of our LAFC naming rights agreements, (ii) a $2.5 million debt extinguishment fee, included in all other expenses, associated with the early repayment of certain FHLB term advances, and (iii) higher professional fees of $6.1 million, due to overall reductions in recoveries of $18.4 million related to indemnified legal fees for resolved legal proceedings and various other litigations. These increases were offset by: (i) $4.0 million in lower consulting fees for bank projects and initiatives, (ii) lower salaries and benefits expense of $10.9 million resulting from lower headcount, (iii) lower advertising costs of $3.1 million due to the termination of our LAFC naming rights agreements and reductions in overall events and media spending, and (iv) lower regulatory assessments of $3.9 million due to changes in our asset size and an FDIC assessment credit.

Income taxes

Q3-2020 vs Q2-2020

Income tax expense totaled $2.4 million for the third quarter resulting in an effective tax rate of 12.9% compared to a $5.3 million benefit for the second quarter resulting in an effective tax rate of 22.3%. Based on our actual and projected level of earnings and permanent tax differences for 2020, our estimated effective tax rate for the full year was refined this quarter to a negative tax rate ranging from approximately 10% to 15%. As a result of the change, we expect our fourth quarter effective tax rate to be approximately 25%.

YTD 2020 vs YTD 2019

Income tax benefit totaled $5.1 million for the nine months ended September 30, 2020, representing an effective tax rate of 35.9%, compared to a $1.4 million expense and an effective tax rate of 12.9% for nine months ended September 30, 2019.

EX 99.1

Balance Sheet

At September 30, 2020, total assets were $7.74 billion, which represented a linked-quarter decrease of $32.0 million. The following table shows selected balance sheet line items as of the dates indicated.


	As of and for the Three Months Ended																					Amount Change
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019			Q3-20 vs. Q2-20			Q3-20 vs. Q3-19

	($ in thousands)
Total assets	$	7,738,106		$	7,770,138		$	7,662,607		$	7,828,410		$	8,625,337		$	(32,032)		$	(887,231)
Securities available-for-sale	$	1,245,867		$	1,176,029		$	969,427		$	912,580		$	775,662		$	69,838		$	470,205
Loans held-for-investment	$	5,678,002		$	5,627,696		$	5,667,464		$	5,951,885		$	6,383,259		$	50,306		$	(705,257)
Loans held-for-sale	$	1,849		$	19,768		$	20,234		$	22,642		$	23,936		$	(17,919)		$	(22,087)

Demand deposits	$	3,495,859		$	3,238,202		$	2,828,470		$	2,622,398		$	2,602,011		$	257,657		$	893,848
Other core deposits	2,446,593			2,619,502			2,515,703			2,794,769			3,074,936			(172,909)			(628,343)
Brokered deposits	89,814			179,761			218,665			10,000			93,111			(89,947)			(3,297)
Total Deposits	$	6,032,266		$	6,037,465		$	5,562,838		$	5,427,167		$	5,770,058		$	(5,199)		$	262,208
As percentage of total deposits
Demand deposits	57.95		%	53.64		%	50.85		%	48.32		%	45.10		%	4.31		%	12.85		%
Other core deposits	40.56		%	43.39		%	45.22		%	51.50		%	53.29		%	(2.83)		%	(12.73)		%
Brokered deposits	1.49		%	2.98		%	3.93		%	0.18		%	1.61		%	(1.49)		%	(0.12)		%

Average loan yield	4.46		%	4.48		%	4.56		%	4.71		%	4.75		%	(0.02)		%	(0.29)		%
Average cost of interest-bearing deposits	0.66		%	0.93		%	1.41		%	1.57		%	1.78		%	(0.27)		%	(1.12)		%
Average cost of total deposits	0.51		%	0.71		%	1.11		%	1.27		%	1.48		%	(0.20)		%	(0.97)		%

Investments

Securities available-for-sale increased $69.8 million to $1.25 billion at September 30, 2020 due to purchases of $48.5 million and lower unrealized net losses of $23.9 million. The decrease in the unrealized net losses was due mostly to credit spreads tightening during the quarter for a positive change on the pricing of the CLOs and corporate debt securities. Securities purchased included municipal bonds, government agency securities and floating rate SBA pool securities. There were no sales of securities during the third quarter. As of September 30, 2020, our securities portfolio included $685.9 million of CLOs, $325.8 million of agency securities, $69.2 million of municipal securities, $146.9 million of corporate debt securities, and $17.8 million of SBA pool securities. The CLO portfolio, which is comprised only of AA and AAA rated securities, represented 55.1% of the total securities portfolio and the carrying value included an unrealized net loss of $17.7 million at September 30, 2020 compared to an unrealized net loss of $35.3 million at June 30, 2020.

EX 99.1

Loans

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


	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
	($ in thousands)
Composition of held-for-investment loans
Commercial real estate	$	826,683		$	822,694		$	810,024		$	818,817		$	891,029
Multifamily	1,476,803			1,434,071			1,466,083			1,494,528			1,563,757
Construction	197,629			212,979			227,947			231,350			228,561
Commercial and industrial	1,586,824			1,436,990			1,578,223			1,691,270			1,789,478
SBA	320,573			310,784			70,583			70,981			75,359

Total commercial loans	4,408,512			4,217,518			4,152,860			4,306,946			4,548,184
Single-family residential mortgage	1,234,479			1,370,785			1,467,375			1,590,774			1,775,953
Other consumer	35,011			39,393			47,229			54,165			59,122
Total consumer loans	1,269,490			1,410,178			1,514,604			1,644,939			1,835,075
Total gross loans	$	5,678,002		$	5,627,696		$	5,667,464		$	5,951,885		$	6,383,259
Composition percentage of held-for-investment loans
Commercial real estate	14.6		%	14.6		%	14.3		%	13.8		%	14.0		%
Multifamily	26.0		%	25.5		%	25.9		%	25.1		%	24.5		%
Construction	3.5		%	3.8		%	4.0		%	3.9		%	3.6		%
Commercial and industrial	28.0		%	25.5		%	27.9		%	28.4		%	28.0		%
SBA	5.6		%	5.5		%	1.2		%	1.2		%	1.2		%

Total commercial loans	77.7		%	74.9		%	73.3		%	72.4		%	71.3		%
Single-family residential mortgage	21.7		%	24.4		%	25.9		%	26.7		%	27.8		%
Other consumer	0.6		%	0.7		%	0.8		%	0.9		%	0.9		%
Total consumer loans	22.3		%	25.1		%	26.7		%	27.6		%	28.7		%
Total gross loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Held-for-investment loans increased $50.3 million to $5.68 billion from the prior quarter, resulting from higher commercial and industrial (C&I) loans of $149.8 million due, in part, to increased utilization of credit facilities, and higher multifamily loans of $42.7 million. These increases were offset partially by lower single-family residential mortgage loans of $136.3 million and construction loans of $15.4 million. The decline in single-family residential is attributed to payoffs as the loans refinance away in the lower rate environment. The decline in construction loans is attributed to general fluctuations in volume and certain payoffs. At September 30, 2020, SBA loans included $255.8 million of PPP loans, net of fees.

We continue to focus the real estate loan portfolio toward relationship-based multifamily, bridge, light infill construction, and commercial real estate loans. Currently, loans secured by residential real estate (single-family, multifamily, single-family construction, and warehouse credit facilities) represent approximately 67% of our total loans outstanding.

EX 99.1

The C&I portfolio has limited exposure to certain business sectors undergoing severe stress. The C&I industry concentrations in dollars and as a percentage of total outstanding C&I loan balances are summarized below:


	September 30, 2020
	Amount		% of Portfolio
	($ in thousands)
C&I Portfolio by Industry
Finance and insurance (includes Warehouse lending)	$	932,887	59	%
Real estate and rental leasing	204,182		13	%
Gas stations	70,630		4	%
Manufacturing	50,747		3	%
Healthcare	67,789		4	%
Wholesale trade	40,232		3	%
Other retail trade	37,157		2	%
Television/motion pictures	31,310		2	%
Food services	29,835		2	%
Professional services	13,878		1	%
Transportation	5,480		—	%
Accommodations	1,473		—	%
All other	101,224		6	%
Total	$	1,586,824	100	%

Deposits

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


	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
	($ in thousands)
Composition of deposits
Noninterest-bearing checking	$	1,450,744		$	1,391,504		$	1,256,081		$	1,088,516		$	1,107,442
Interest-bearing checking	2,045,115			1,846,698			1,572,389			1,533,882			1,503,208
Money market	689,769			765,854			575,820			715,479			695,530
Savings	946,293			939,018			877,947			885,246			1,042,162
Non-brokered certificates of deposit	820,531			924,630			1,071,936			1,204,044			1,367,284
Brokered certificates of deposit	79,814			169,761			208,665			—			54,432
Total deposits	$	6,032,266		$	6,037,465		$	5,562,838		$	5,427,167		$	5,770,058
Composition percentage of deposits
Noninterest-bearing checking	24.1		%	23.0		%	22.6		%	20.1		%	19.2		%
Interest-bearing checking	33.9		%	30.6		%	28.3		%	28.2		%	26.1		%
Money market	11.4		%	12.7		%	10.3		%	13.2		%	12.0		%
Savings	15.7		%	15.6		%	15.8		%	16.3		%	18.1		%
Non-brokered certificates of deposit	13.6		%	15.3		%	19.3		%	22.2		%	23.7		%
Brokered certificates of deposit	1.3		%	2.8		%	3.7		%	—		%	0.9		%
Total deposits	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Total deposits decreased $5.2 million during the third quarter of 2020 to $6.03 billion due to lower brokered certificates of deposit of $89.9 million, non-brokered certificates of deposit of $104.1 million, and money market balances of $76.1 million, offset by higher noninterest-bearing checking balances of $59.2 million, interest-bearing checking of $198.4 million, and savings balances of $7.3 million. We continue to focus on growing relationship-based deposits, strategically augmented by wholesale funding, as we proactively reduce our deposit costs in response to the interest rate cuts by the Federal Reserve in March of 2020. Noninterest-bearing deposits totaled $1.45 billion and represented 24.1% of total deposits at September 30,

EX 99.1

2020 compared to $1.39 billion, or 23.0% of total deposits, at June 30, 2020 and $1.11 billion, or 19.2% of total deposits, one year ago.

Debt

Advances from the FHLB decreased $57.7 million, or 9%, to $559.5 million, as of September 30, 2020, due to maturities of $58.0 million. At the end of the third quarter, FHLB advances included no overnight borrowings, $105.0 million maturing within three months, and $461.0 million maturing beyond three months with a weighted average life of 4.7 years and weighted average interest rate of 2.51%.

Equity

At September 30, 2020, total stockholders’ equity increased by $27.3 million to $874.3 million and tangible common equity increased by $27.8 million to $649.3 million on a linked-quarter basis. The increase in total stockholders’ equity for the three months ended September 30, 2020, was a result of net income of $15.9 million and lower net accumulated other comprehensive loss of $16.8 million, offset by dividends to common and preferred stockholders of $6.6 million, and redemption of preferred stock of $0.2 million. Tangible book value per share increased to $12.92 as of September 30, 2020 from $12.37 at June 30, 2020.

Capital ratios remain strong with total risk-based capital at 16.24% and a tier 1 leverage ratio of 10.83%. The following table sets forth our regulatory capital ratios at September 30, 2020 and the previous four quarters. The interim capital relief related to the adoption of CECL increased the Bank's leverage ratio approximately 12 basis points at September 30, 2020.


	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
Capital Ratios⁽¹⁾
Banc of California, Inc.
Total risk-based capital ratio	16.24	%	16.35	%	16.16	%	15.90	%	14.37	%
Tier 1 risk-based capital ratio	14.98	%	15.10	%	14.91	%	14.83	%	13.32	%
Common equity tier 1 capital ratio	11.64	%	11.68	%	11.58	%	11.56	%	10.34	%
Tier 1 leverage ratio	10.83	%	10.56	%	11.20	%	10.89	%	9.84	%
Banc of California, NA
Total risk-based capital ratio	18.20	%	18.17	%	18.21	%	17.46	%	15.65	%
Tier 1 risk-based capital ratio	16.94	%	16.92	%	16.96	%	16.39	%	14.60	%
Common equity tier 1 capital ratio	16.94	%	16.92	%	16.96	%	16.39	%	14.60	%
Tier 1 leverage ratio	12.24	%	11.84	%	12.67	%	12.02	%	10.75	%

(1)September 30, 2020 capital ratios are preliminary.

EX 99.1

Credit Quality


	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Asset quality information and ratios	($ in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent	$	51,229		$	49,810		$	56,338		$	32,873		$	39,122
90+ days delinquent	31,809			45,384			28,632			24,734			17,220
Total delinquent loans	$	83,038		$	95,194		$	84,970		$	57,607		$	56,342
Total delinquent loans to total loans	1.46		%	1.69		%	1.50		%	0.97		%	0.88		%
Non-performing assets, excluding loans held-for-sale
Non-performing loans	$	66,337		$	72,703		$	56,471		$	43,354		$	45,169
90+ days delinquent and still accruing loans	547			—			—			—			—
Other real estate owned	—			—			—			—			—
Non-performing assets	$	66,884		$	72,703		$	56,471		$	43,354		$	45,169
ALL to non-performing loans	135.95		%	124.30		%	138.55		%	132.97		%	139.31		%
Non-performing loans to total loans held-for-investment	1.18		%	1.29		%	1.00		%	0.73		%	0.71		%
Non-performing assets to total assets	0.86		%	0.94		%	0.74		%	0.55		%	0.52		%
Troubled debt restructurings (TDRs)
Performing TDRs	$	5,408		$	5,597		$	6,100		$	6,620		$	6,800
Non-performing TDRs	20,002			20,275			20,852			21,837			14,605
Total TDRs	$	25,410		$	25,872		$	26,952		$	28,457		$	21,405

Total delinquent loans decreased $12.2 million in the third quarter to $83.0 million at September 30, 2020, due to $30.0 million returning to current status and $0.2 million of principal payments or payoffs, offset by $18.0 million of additions. Delinquent loans included primarily legacy single-family residential loans, which accounted for 86% of the balance at quarter end and represented an increase of $0.8 million quarter over quarter. Excluding delinquent single-family residential loans, delinquent loans totaled $12.0 million, or 0.27% of total loans at September 30, 2020.

Non-performing loans decreased $5.8 million to $66.9 million as of September 30, 2020, of which $31.5 million, or 47% relates to loans in a current payment status. The third quarter decrease was due primarily to $10.2 million in cured loans and payoffs, offset by $4.4 million of loans placed on nonaccrual status. The quarter-end balance includes three large loan relationships totaling $34.9 million, or 52% of total nonperforming loans, which consist of one $16.1 million legacy shared national credit, a $9.1 million single-family mortgage residential loan with a loan-to-value ratio of 58%, and a $9.6 million legacy relationship well-secured by commercial real estate and single-family residential properties with an average loan-to-value ratio of 51%. Aside from those three loan relationships, non-performing single-family residential loans totaled $17.7 million and the remaining non-performing loans totaled $14.3 million.

In light of the pandemic, during the second and third quarters we provided support to clients by granting loan deferments or forbearances. As of September 30, 2020 loans on deferment or forbearance status totaled $282.5 million as shown below:


	September 30, 2020								June 30, 2020
	Count	Amount⁽¹⁾		% of Loans in Category		Count	Amount		% of Loans in Category
	($ in thousands)
Single-family residential mortgage	123	$	137,510	11	%	142	$	163,815	12	%
All other loans	35	145,036		3	%	156	440,420		10	%
Total	158	$	282,546	5	%	298	$	604,235	11	%

(1)Loans in the process of deferment or forbearance are not reported as delinquent.

Of the balances as of September 30, 2020, $98.1 million of all other loans are in their second deferment. Further, as of September 30, 2020, 18 commercial loans totaling $45.3 million were under review and pending approval for a second deferral. We continue to actively monitor and manage all lending relationships in a manner that supports our clients and protects the Bank.

EX 99.1

Allowance for Credit Losses


	Three Months Ended
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
	($ in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period	$	90,370		$	78,243		$	57,649		$	62,927		$	59,523
Adoption of ASU 2016-13 ⁽¹⁾	—			—			7,609			—			—
Loans charged off	(1,821)			—			(2,076)			(2,706)			(35,546)
Recoveries	248			608			350			106			410
Net (charge-offs) recoveries	(1,573)			608			(1,726)			(2,600)			(35,136)
Provision for (reversal of) loan losses	2,130			11,519			14,711			(2,678)			38,540
Balance at end of period	$	90,927		$	90,370		$	78,243		$	57,649		$	62,927
Reserve for unfunded loan commitments
Balance at beginning of period	$	4,195		$	3,888		$	4,064		$	4,362		$	4,295
Adoption of ASU 2016-13 ⁽¹⁾	—			—			(1,226)			—			—
(Reversal of) provision for credit losses	(989)			307			1,050			(298)			67
Balance at end of period	3,206			4,195			3,888			4,064			4,362
Allowance for credit losses (ACL)	$	94,133		$	94,565		$	82,131		$	61,713		$	67,289

ALL to total loans	1.60		%	1.61		%	1.38		%	0.97		%	0.99		%
ACL to total loans	1.66		%	1.68		%	1.45		%	1.04		%	1.05		%
ACL to total loans, excluding PPP loans	1.74		%	1.76		%	1.45		%	1.04		%	1.05		%
Annualized net loan charge-offs (recoveries) to average total loans held-for-investment	0.12		%	(0.04)		%	0.12		%	0.17		%	2.19		%

Reserve for loss on repurchased loans
Balance at beginning of period	$	5,567		$	5,601		$	6,201		$	6,561		$	2,478
Initial provision for loan repurchases	11			—			—			—			4,415
Reversal of provision for loan repurchases	(91)			(34)			(600)			(360)			(123)
Utilization of reserve for loan repurchases	—			—			—			—			(209)
Balance at end of period	$	5,487		$	5,567		$	5,601		$	6,201		$	6,561

(1)Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020. As a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.

The allowance for expected credit losses ("ACL"), which includes the reserve for unfunded loan commitments, totaled $94.1 million, or 1.66% of total loans, at September 30, 2020 compared to $94.6 million or 1.68% of total loans, at June 30, 2020. The $0.4 million decrease in the ACL was due to: (i) net charge-offs of $1.6 million and (ii) a negative provision for unfunded loan commitments of $1.0 million, offset by (iii) specific reserves of $1.2 million, and (iv) general reserves of $0.9 million due to the impact of higher loan balances, updated forecasts, and improved credit quality metrics. The ACL coverage of nonperforming loans was 141% at September 30, 2020 compared to 130% at June 30, 2020 and 142% at December 31, 2019.

Our ACL methodology and resulting provision continues to be impacted by the current economic uncertainty and volatility caused by the COVID-19 pandemic. 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 ("MEVs") released by our model provider during September 2020. In contrast to the June 2020 forecasts, these September forecasts reflect a more favorable view of the economy (i.e. higher GDP growth rates and lower unemployment rates). Despite this, the Company-specific economic view recognizes that the foreseeable future is uncertain with respect to the search for a vaccine and effective treatments for COVID-19; the lack of clarity regarding the timing and amount of a potential government stimulus; the unknown impact of the COVID-19 pandemic on the economy and certain industry segments; and the unknown benefit from Federal Reserve and other government actions. Accordingly, the ACL level and resulting provision reflect these uncertainties. The ACL also incorporated qualitative factors to account for certain loan portfolio characteristics that are not taken into consideration by the third-party model including underlying strengths and weaknesses in the loan portfolio. As is the case with all estimates, the ACL is expected to be impacted in future periods by

EX 99.1

economic volatility, changing economic forecasts, underlying model assumptions, and asset quality metrics, all of which may be better than or worse than current estimates.

The Company will host a conference call to discuss its third quarter 2020 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, October 22, 2020. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 8723927. 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 10145608.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $7.7 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 39 offices including 31 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.

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. 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

EX 99.1

Banc of California, Inc.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)


	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
ASSETS
Cash and cash equivalents	$	292,490	$	420,640	$	435,992	$	373,472	$	526,874
Securities available-for-sale	1,245,867		1,176,029		969,427		912,580		775,662
Loans held-for-sale	1,849		19,768		20,234		22,642		23,936
Loans held-for-investment	5,678,002		5,627,696		5,667,464		5,951,885		6,383,259
Allowance for loan losses	(90,927)		(90,370)		(78,243)		(57,649)		(62,927)
Federal Home Loan Bank and other bank stock	44,809		46,585		57,237		59,420		71,679
Servicing rights, net	1,621		1,753		2,009		2,299		2,407

Premises and equipment, net	123,812		125,247		127,379		128,021		128,979
Investments in alternative energy partnerships, net	27,786		26,967		27,347		29,300		27,039
Goodwill	37,144		37,144		37,144		37,144		37,144
Other intangible assets, net	2,939		3,292		3,722		4,151		4,605
Deferred income tax, net	43,744		48,288		63,849		44,906		45,950
Income tax receivable	10,701		13,094		7,198		4,233		4,459
Bank owned life insurance investment	111,115		110,487		110,397		109,819		108,720
Right of use assets	18,909		19,408		20,882		22,540		23,907
Due from unsettled securities sales	—		—		—		—		334,769
Other assets	188,245		184,110		190,569		183,647		188,875

Total assets	$	7,738,106	$	7,770,138	$	7,662,607	$	7,828,410	$	8,625,337

LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	1,450,744	$	1,391,504	$	1,256,081	$	1,088,516	$	1,107,442
Interest-bearing deposits	4,581,522		4,645,961		4,306,757		4,338,651		4,662,616
Total deposits	6,032,266		6,037,465		5,562,838		5,427,167		5,770,058
Advances from Federal Home Loan Bank	559,482		617,170		978,000		1,195,000		1,650,000
Notes payable, net	173,623		173,537		173,479		173,421		173,339
Reserve for loss on repurchased loans	5,487		5,567		5,601		6,201		6,561
Lease liabilities	19,938		20,531		22,075		23,692		25,210

Accrued expenses and other liabilities	73,056		68,909		85,612		95,684		99,181

Total liabilities	6,863,852		6,923,179		6,827,605		6,921,165		7,724,349
Commitments and contingent liabilities
Preferred stock	184,878		185,037		187,687		189,825		189,825
Common stock	522		522		520		520		520
Common stock, class B non-voting non-convertible	5		5		5		5		5
Additional paid-in capital	633,409		632,117		631,125		629,848		628,774
Retained earnings	95,001		85,670		110,640		127,733		120,221
Treasury stock	(40,827)		(40,827)		(40,827)		(28,786)		(28,786)
Accumulated other comprehensive income (loss), net	1,266		(15,565)		(54,148)		(11,900)		(9,571)
Total stockholders’ equity	874,254		846,959		835,002		907,245		900,988
Total liabilities and stockholders’ equity	$	7,738,106	$	7,770,138	$	7,662,607	$	7,828,410	$	8,625,337

EX 99.1

Banc of California, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)


	Three Months Ended														Nine Months Ended
	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019		September 30, 2020		September 30, 2019
Interest and dividend income
Loans, including fees	$	62,019	$	63,642	$	65,534	$	73,930	$	80,287	$	191,195	$	260,004
Securities	6,766		7,816		7,820		7,812		10,024		22,402		40,322
Other interest-earning assets	881		1,239		1,360		1,960		2,346		3,480		7,083
Total interest and dividend income	69,666		72,697		74,714		83,702		92,657		217,077		307,409
Interest expense
Deposits	7,564		10,205		14,611		18,247		22,811		32,380		82,852
Federal Home Loan Bank advances	3,860		4,818		5,883		6,396		8,519		14,561		25,889


Notes payable and other interest-bearing liabilities	2,387		2,359		2,359		2,399		2,412		7,105		7,165
Total interest expense	13,811		17,382		22,853		27,042		33,742		54,046		115,906
Net interest income	55,855		55,315		51,861		56,660		58,915		163,031		191,503
Provision for (reversal of) credit losses	1,141		11,826		15,761		(2,976)		38,607		28,728		38,805
Net interest income after provision for (reversal of) credit losses	54,714		43,489		36,100		59,636		20,308		134,303		152,698
Noninterest income
Customer service fees	1,498		1,224		1,096		1,451		1,582		3,818		4,531
Loan servicing income	186		95		75		312		128		356		367
Income from bank owned life insurance	629		591		578		599		588		1,798		1,693
Impairment loss on investment securities	—		—		—		—		(731)		—		(731)
Net gain (loss) on sale of securities available for sale	—		2,011		—		3		(5,063)		2,011		(4,855)
Fair value adjustment on loans held for sale	24		25		(1,586)		30		16		(1,537)		76
Net gain (loss) on sale of loans	272		—		(27)		(863)		4,310		245		8,629
All other income (loss)	1,345		1,582		1,925		3,398		2,351		4,852		(2,524)
Total noninterest income	3,954		5,528		2,061		4,930		3,181		11,543		7,186
Noninterest expense
Salaries and employee benefits	23,277		24,260		23,436		24,036		25,934		70,973		81,879
Naming rights termination	—		26,769		—		—		—		26,769		—
Occupancy and equipment	7,457		7,090		7,243		7,900		7,767		21,790		23,408
Professional fees	5,147		4,596		5,964		2,611		1,463		15,707		9,601
Data processing	1,657		1,536		1,773		1,684		1,568		4,966		4,736
Advertising	219		1,157		1,756		2,227		2,090		3,132		6,195
Regulatory assessments	784		725		484		1,854		1,239		1,993		5,857
Reversal of loan repurchase reserves	(91)		(34)		(600)		(360)		(123)		(725)		(300)
Amortization of intangible assets	353		430		429		454		500		1,212		1,741
Restructuring expense	—		—		—		1,626		—		—		2,637
All other expenses	3,021		6,408		4,529		4,412		3,742		13,958		12,580
Total noninterest expense excluding (gain) loss on investments in alternative energy partnerships	41,824		72,937		45,014		46,444		44,180		159,775		148,334
(Gain) loss on investments in alternative energy partnerships	(1,430)		(167)		1,905		1,039		(940)		308		655
Total noninterest expense	40,394		72,770		46,919		47,483		43,240		160,083		148,989
Income (loss) from operations before income taxes	18,274		(23,753)		(8,758)		17,083		(19,751)		(14,237)		10,895
Income tax expense (benefit)	2,361		(5,304)		(2,165)		2,811		(5,619)		(5,108)		1,408




Net income (loss)	15,913		(18,449)		(6,593)		14,272		(14,132)		(9,129)		9,487
Preferred stock dividends	3,447		3,442		3,533		3,540		3,403		10,422		12,019
Income allocated to participating securities	281		—		—		224		—		—		—
Participating securities dividends	94		94		94		93		94		282		390
Impact of preferred stock redemption	7		(49)		(526)		—		5,093		(568)		5,093
Net income (loss) available to common stockholders	$	12,084	$	(21,936)	$	(9,694)	$	10,415	$	(22,722)	$	(19,265)	$	(8,015)

EX 99.1


Earnings (loss) per common share:


Basic	$	0.24	$	(0.44)	$	(0.19)	$	0.21	$	(0.45)	$	(0.38)	$	(0.16)



Diluted	$	0.24	$	(0.44)	$	(0.19)	$	0.20	$	(0.45)	$	(0.38)	$	(0.16)
Weighted average number of common shares outstanding
Basic	50,108,655		50,030,919		50,464,777		50,699,915		50,882,227		50,201,112		50,804,429
Diluted	50,190,933		50,030,919		50,464,777		50,927,978		50,882,227		50,201,112		50,804,429
Dividends declared per common share	$	0.06	$	0.06	$	0.06	$	0.06	$	0.06	$	0.18	$	0.25

EX 99.1

Banc of California, Inc.

Selected Financial Data

(Unaudited)


	Three Months Ended
	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
Profitability and other ratios of consolidated operations
Return on average assets⁽¹⁾	0.82	%	(0.96)	%	(0.35)	%	0.71	%	(0.64)	%
Return on average equity⁽¹⁾	7.32	%	(8.69)	%	(2.89)	%	6.20	%	(5.83)	%
Return on average tangible common equity⁽²⁾	7.92	%	(13.77)	%	(5.44)	%	6.46	%	(12.49)	%
Dividend payout ratio⁽³⁾	25.00	%	(13.64)	%	(31.58)	%	28.57	%	(13.33)	%
Net interest spread	2.84	%	2.77	%	2.56	%	2.65	%	2.47	%
Net interest margin⁽¹⁾	3.09	%	3.09	%	2.97	%	3.04	%	2.86	%
Noninterest income to total revenue⁽⁴⁾	6.61	%	9.09	%	3.82	%	8.00	%	5.12	%
Noninterest income to average total assets⁽¹⁾	0.20	%	0.29	%	0.11	%	0.25	%	0.15	%
Noninterest expense to average total assets⁽¹⁾	2.09	%	3.78	%	2.50	%	2.37	%	1.97	%
Adjusted noninterest expense to average total assets⁽¹⁾	2.10	%	2.22	%	2.30	%	2.41	%	2.13	%
Efficiency ratio⁽²⁾⁽⁵⁾	67.54	%	119.60	%	87.01	%	77.10	%	69.63	%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships⁽²⁾⁽⁵⁾	68.30	%	119.55	%	86.54	%	74.51	%	70.00	%
Average loans held-for-investment to average deposits	92.86	%	98.51	%	108.54	%	108.50	%	105.92	%
Average securities available-for-sale to average total assets	15.49	%	13.75	%	12.60	%	10.48	%	12.71	%
Average stockholders’ equity to average total assets	11.26	%	11.04	%	12.11	%	11.47	%	11.06	%

(1)Ratios are presented on an annualized basis.

(2)The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). See Non-GAAP measures section for reconciliation of the calculation.

(3)The ratio is calculated by dividing dividends declared per common share by basic earnings (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)The ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

EX 99.1

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	September 30, 2020												June 30, 2020									March 31, 2020
	Average					Yield		Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Loans held-for-sale	$	19,544		$	139	2.83	%	$	19,967		$	155	3.12	%	$	22,273		$	220	3.97	%
SFR mortgage	1,311,513			13,178		4.00	%	1,416,358			14,187		4.03	%	1,532,967			15,295		4.01	%
Commercial real estate, multifamily, and construction	2,493,408			29,666		4.73	%	2,524,477			29,459		4.69	%	2,564,485			30,223		4.74	%
Commercial and industrial, SBA, and lease financing	1,673,548			18,585		4.42	%	1,706,120			19,392		4.57	%	1,613,324			19,157		4.78	%
Other consumer	35,563			451		5.05	%	40,697			449		4.44	%	47,761			639		5.38	%
Gross loans and leases	5,533,576			62,019		4.46	%	5,707,619			63,642		4.48	%	5,780,810			65,534		4.56	%
Securities	1,190,765			6,766		2.26	%	1,063,941			7,816		2.95	%	952,966			7,820		3.30	%
Other interest-earning assets	457,558			881		0.77	%	424,776			1,239		1.17	%	297,444			1,360		1.84	%
Total interest-earning assets	7,181,899			69,666		3.86	%	7,196,336			72,697		4.06	%	7,031,220			74,714		4.27	%
Allowance for loan losses	(89,679)							(78,528)							(60,470)
BOLI and noninterest-earning assets	594,885							622,398							592,192
Total assets	$	7,687,105						$	7,740,206						$	7,562,942

Interest-bearing liabilities
Savings	$	948,898		$	2,353	0.99	%	$	905,997		$	2,718	1.21	%	$	890,830		$	3,296	1.49	%
Interest-bearing checking	1,919,327			1,660		0.34	%	1,710,038			2,186		0.51	%	1,520,922			3,728		0.99	%
Money market	681,421			645		0.38	%	592,872			850		0.58	%	608,926			1,760		1.16	%
Certificates of deposit	1,030,829			2,906		1.12	%	1,214,939			4,451		1.47	%	1,151,518			5,827		2.04	%
Total interest-bearing deposits	4,580,475			7,564		0.66	%	4,423,846			10,205		0.93	%	4,172,196			14,611		1.41	%
FHLB advances	608,169			3,860		2.52	%	819,166			4,818		2.37	%	1,039,055			5,883		2.28	%
Securities sold under repurchase agreements	1,309			2		0.61	%	1,024			2		0.79	%	—			—		—	%
Long-term debt and other interest-bearing liabilities	173,911			2,385		5.46	%	173,977			2,357		5.45	%	174,056			2,359		5.45	%
Total interest-bearing liabilities	5,363,864			13,811		1.02	%	5,418,013			17,382		1.29	%	5,385,307			22,853		1.71	%
Noninterest-bearing deposits	1,357,411							1,349,735							1,133,306
Noninterest-bearing liabilities	100,424							118,208							128,282
Total liabilities	6,821,699							6,885,956							6,646,895
Total stockholders’ equity	865,406							854,250							916,047
Total liabilities and stockholders’ equity	$	7,687,105						$	7,740,206						$	7,562,942

Net interest income/spread				$	55,855	2.84	%				$	55,315	2.77	%				$	51,861	2.56	%
Net interest margin						3.09	%						3.09	%						2.97	%

Ratio of interest-earning assets to interest-bearing liabilities	133.89		%					132.82		%					130.56		%
Total deposits	$	5,937,886		$	7,564	0.51	%	$	5,773,581		$	10,205	0.71	%	$	5,305,502		$	14,611	1.11	%
Total funding ⁽¹⁾	$	6,721,275		$	13,811	0.82	%	$	6,767,748		$	17,382	1.03	%	$	6,518,613		$	22,853	1.41	%

(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.

EX 99.1


	Three Months Ended
	December 31, 2019												September 30, 2019
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Loans held-for-sale	$	23,527		$	221	3.73	%	$	216,746		$	1,894	3.47	%
SFR mortgage	1,689,228			16,788		3.94	%	1,866,103			19,179		4.08	%
Commercial real estate, multifamily, and construction	2,633,342			32,763		4.94	%	2,717,609			33,343		4.87	%
Commercial and industrial, SBA, and lease financing	1,821,064			23,381		5.09	%	1,840,202			24,970		5.38	%
Other consumer	54,088			777		5.70	%	58,652			901		6.09	%
Gross loans and leases	6,221,249			73,930		4.71	%	6,699,312			80,287		4.75	%
Securities	833,726			7,812		3.72	%	1,105,499			10,024		3.60	%
Other interest-earning assets	330,950			1,960		2.35	%	362,613			2,346		2.57	%
Total interest-earning assets	7,385,925			83,702		4.50	%	8,167,424			92,657		4.50	%
Allowance for loan losses	(61,642)							(55,976)
BOLI and noninterest-earning assets	630,308							584,190
Total assets	$	7,954,591						$	8,695,638

Interest-bearing liabilities
Savings	981,346			3,889		1.57	%	1,055,086			4,722		1.78	%
Interest-bearing checking	1,546,322			4,234		1.09	%	1,511,432			4,483		1.18	%
Money market	743,695			2,593		1.38	%	755,114			3,093		1.63	%
Certificates of deposit	1,332,911			7,531		2.24	%	1,750,970			10,513		2.38	%
Total interest-bearing deposits	4,604,274			18,247		1.57	%	5,072,602			22,811		1.78	%
FHLB advances	1,020,478			6,396		2.49	%	1,333,739			8,519		2.53	%
Securities sold under repurchase agreements	2,223			15		2.68	%	1,922			13		2.68	%
Long-term debt and other interest-bearing liabilities	174,092			2,384		5.43	%	174,111			2,399		5.47	%
Total interest-bearing liabilities	5,801,067			27,042		1.85	%	6,582,374			33,742		2.03	%
Noninterest-bearing deposits	1,108,077							1,047,858
Noninterest-bearing liabilities	132,698							103,667
Total liabilities	7,041,842							7,733,899
Total stockholders’ equity	912,749							961,739
Total liabilities and stockholders’ equity	$	7,954,591						$	8,695,638

Net interest income/spread				$	56,660	2.65	%				$	58,915	2.47	%
Net interest margin						3.04	%						2.86	%

Ratio of interest-earning assets to interest-bearing liabilities	127.32		%					124.08		%
Total deposits	$	5,712,351		$	18,247	1.27	%	$	6,120,460		$	22,811	1.48	%
Total funding ⁽¹⁾	$	6,909,144		$	27,042	1.55	%	$	7,630,232		$	33,742	1.75	%

EX 99.1


	Nine Months Ended
	September 30, 2020												September 30, 2019
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Loans held-for-sale	$	20,591		$	515	3.34	%	$	99,130		$	2,388	3.22	%
SFR mortgage	1,419,882			42,660		4.01	%	2,077,932			64,631		4.16	%
Commercial real estate, multifamily, and construction	2,527,331			89,348		4.72	%	3,168,206			111,119		4.69	%
Commercial and industrial, SBA, and lease financing	1,664,365			57,134		4.59	%	1,877,277			79,145		5.64	%
Other consumer	41,319			1,538		4.97	%	60,324			2,721		6.03	%
Gross loans and leases	5,673,488			191,195		4.50	%	7,282,869			260,004		4.77	%
Securities	1,069,668			22,402		2.80	%	1,384,928			40,322		3.89	%
Other interest-earning assets	393,495			3,480		1.18	%	342,597			7,083		2.76	%
Total interest-earning assets	7,136,651			217,077		4.06	%	9,010,394			307,409		4.56	%
Allowance for credit losses	(76,275)							(60,294)
BOLI and noninterest-earning assets	603,128							579,992
Total assets	$	7,663,504						$	9,530,092

Interest-bearing liabilities
Savings	915,364			8,366		1.22	%	1,112,949			15,152		1.82	%
Interest-bearing checking	1,717,483			7,575		0.59	%	1,548,655			13,562		1.17	%
Money market	627,927			3,255		0.69	%	831,401			11,124		1.79	%
Certificates of deposit	1,132,058			13,184		1.56	%	2,419,158			43,014		2.38	%
Total interest-bearing deposits	4,392,832			32,380		0.98	%	5,912,163			82,852		1.87	%
FHLB advances	821,349			14,561		2.37	%	1,347,330			25,889		2.57	%
Securities sold under repurchase agreements	779			4		0.69	%	2,146			47		2.93	%
Long-term debt and other interest-bearing liabilities	173,981			7,101		5.45	%	174,167			7,118		5.46	%
Total interest-bearing liabilities	5,388,941			54,046		1.34	%	7,435,806			115,906		2.08	%
Noninterest-bearing deposits	1,280,461							1,034,697
Noninterest-bearing liabilities	115,582							99,113
Total liabilities	6,784,984							8,569,616
Total stockholders’ equity	878,520							960,476
Total liabilities and stockholders’ equity	$	7,663,504						$	9,530,092

Net interest income/spread				$	163,031	2.72	%				$	191,503	2.48	%
Net interest margin						3.05	%						2.84	%

Ratio of interest-earning assets to interest-bearing liabilities	132.43		%					121.18		%
Total deposits	$	5,673,293		$	32,380	0.76	%	$	6,946,860		$	82,852	1.59	%
Total funding ⁽¹⁾	$	6,669,402		$	54,046	1.08	%	$	8,470,503		$	115,906	1.83	%

EX 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

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

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

Adjusted efficiency ratio is calculated by excluding (gain) loss on investments in alternative energy partnerships from noninterest expense and adding total pre-tax return, which includes the (gain) loss on investments in alternative energy partnerships, to the sum of net interest income and noninterest income (total revenue). Pre-tax pre-provision income is calculated by adding total revenue and subtracting noninterest expense. Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company.

This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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

EX 99.1


	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	7,738,106		$	7,770,138		$	7,662,607		$	7,828,410		$	8,625,337
Less goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less other intangible assets	(2,939)			(3,292)			(3,722)			(4,151)			(4,605)
Tangible assets⁽¹⁾	$	7,698,023		$	7,729,702		$	7,621,741		$	7,787,115		$	8,583,588

Total stockholders' equity	$	874,254		$	846,959		$	835,002		$	907,245		$	900,988
Less goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less other intangible assets	(2,939)			(3,292)			(3,722)			(4,151)			(4,605)
Tangible equity⁽¹⁾	834,171			806,523			794,136			865,950			859,239
Less preferred stock	(184,878)			(185,037)			(187,687)			(189,825)			(189,825)
Tangible common equity⁽¹⁾	$	649,293		$	621,486		$	606,449		$	676,125		$	669,414

Total stockholders' equity to total assets	11.30		%	10.90		%	10.90		%	11.59		%	10.45		%
Tangible equity to tangible assets⁽¹⁾	10.84		%	10.43		%	10.42		%	11.12		%	10.01		%
Tangible common equity to tangible assets⁽¹⁾	8.43		%	8.04		%	7.96		%	8.68		%	7.80		%

Common shares outstanding	49,760,543			49,750,958			49,593,077			50,413,681			50,406,763
Class B non-voting non-convertible common shares outstanding	477,321			477,321			477,321			477,321			477,321
Total common shares outstanding	50,237,864			50,228,279			50,070,398			50,891,002			50,884,084

Tangible common equity per common share⁽¹⁾	$	12.92		$	12.37		$	12.11		$	13.29		$	13.16
Book value per common share	$	13.72		$	13.18		$	12.93		$	14.10		$	13.98

(1)Non-GAAP measure.

EX 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Return on tangible common equity
Average total stockholders' equity	$	865,406		$	854,250		$	916,047		$	912,749		$	961,739
Less average preferred stock	(184,910)			(185,471)			(189,607)			(189,824)			(213,619)
Less average goodwill	(37,144)			(37,144)			(37,144)			(37,144)			(37,144)
Less average other intangible assets	(3,172)			(3,574)			(4,003)			(4,441)			(4,935)
Average tangible common equity⁽¹⁾	$	640,180		$	628,061		$	685,293		$	681,340		$	706,041

Net income (loss)	$	15,913		$	(18,449)		$	(6,593)		$	14,272		$	(14,132)
Less preferred stock dividends and impact of preferred stock redemption	(3,454)			(3,393)			(3,007)			(3,540)			(8,496)
Add amortization of intangible assets	353			430			429			454			500

Less tax effect on amortization and impairment of intangible assets	(74)			(90)			(90)			(95)			(105)
Net income (loss) available to common stockholders⁽¹⁾	$	12,738		$	(21,502)		$	(9,261)		$	11,091		$	(22,233)

Return on average equity	7.32		%	(8.69)		%	(2.89)		%	6.20		%	(5.83)		%
Return on average tangible common equity⁽¹⁾	7.92		%	(13.77)		%	(5.44)		%	6.46		%	(12.49)		%

Statutory tax rate utilized for calculating tax effect on amortization of intangible assets	21.00		%	21.00		%	21.00		%	21.00		%	21.00		%


	Three Months Ended
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships
Noninterest expense	$	40,394		$	72,770		$	46,919		$	47,483		$	43,240
Gain (loss) on investments in alternative energy partnerships	1,430			167			(1,905)			(1,039)			940
Total noninterest expense excluding (gain) loss on investments in alternative energy partnerships⁽¹⁾	$	41,824		$	72,937		$	45,014		$	46,444		$	44,180

Net interest income	$	55,855		$	55,315		$	51,861		$	56,660		$	58,915
Noninterest income	3,954			5,528			2,061			4,930			3,181
Total revenue	59,809			60,843			53,922			61,590			62,096
Tax credit from investments in alternative energy partnerships	—			—			—			1,689			77
Deferred tax expense on investments in alternative energy partnerships	—			—			—			(177)			(8)
Tax effect on tax credit and deferred tax expense	—			—			—			267			7
(Loss) gain on investments in alternative energy partnerships	1,430			167			(1,905)			(1,039)			940
Total pre-tax adjustments for investments in alternative energy partnerships	1,430			167			(1,905)			740			1,016
Adjusted total revenue⁽¹⁾	$	61,239		$	61,010		$	52,017		$	62,330		$	63,112
Efficiency ratio⁽¹⁾	67.54		%	119.60		%	87.01		%	77.10		%	69.63		%
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships⁽¹⁾	68.30		%	119.55		%	86.54		%	74.51		%	70.00		%
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense	N/A			N/A			N/A			15.00		%	9.36		%

(1)Non-GAAP measure.

EX 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended
	September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019		September 30, 2019
Adjusted noninterest income and expense
Total noninterest income	$	3,954	$	5,528	$	2,061	$	4,930	$	3,181
Adjustments for non-core items:
Net (gain) loss on securities available for sale	—		(2,011)		—		(3)		5,794
Net (gain) loss on sale of legacy SFR loans held for sale	(272)		—		—		—		—
Fair value adjustment on legacy SFR loans held for sale	(24)		(25)		1,586		(30)		(16)
Total non-core adjustments - noninterest income	(296)		(2,036)		1,586		(33)		5,778
Adjusted noninterest income⁽¹⁾	$	3,658	$	3,492	$	3,647	$	4,897	$	8,959

Total noninterest expense	$	40,394	$	72,770	$	46,919	$	47,483	$	43,240
Adjustments for non-core items:

Naming rights termination	—		(26,769)		—		—		—
Extinguishment of debt	—		(2,515)		—		—		—

Professional (fees) recoveries	(1,172)		(875)		(1,678)		3,557		2,615
Restructuring expense	—		—		—		(1,626)		—
Other expenses	—		—		—		—		(131)
Total non-core adjustments - noninterest expense	(1,172)		(30,159)		(1,678)		1,931		2,484
Gain (loss) on investments in alternative energy partnerships	1,430		167		(1,905)		(1,039)		940
Total adjustments - noninterest expense	258		(29,992)		(3,583)		892		3,424
Adjusted noninterest expense⁽¹⁾	$	40,652	$	42,778	$	43,336	$	48,375	$	46,664


	Three Months Ended
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Adjusted pre-tax pre-provision income
Net interest income	$	55,855		$	55,315		$	51,861		$	56,660		$	58,915
Noninterest income	3,954			5,528			2,061			4,930			3,181
Total revenue	59,809			60,843			53,922			61,590			62,096
Noninterest expense	40,394			72,770			46,919			47,483			43,240
Pre-tax pre-provision income (loss)⁽¹⁾	$	19,415		$	(11,927)		$	7,003		$	14,107		$	18,856

Net interest income	$	55,855		$	55,315		$	51,861		$	56,660		$	58,915
Noninterest income	3,954			5,528			2,061			4,930			3,181
Total non-core adjustments - noninterest income	(296)			(2,036)			1,586			(33)			5,778
Adjusted noninterest income⁽¹⁾	3,658			3,492			3,647			4,897			8,959
Total revenue	59,513			58,807			55,508			61,557			67,874
Noninterest expense	40,394			72,770			46,919			47,483			43,240
Total adjustments - noninterest expense	258			(29,992)			(3,583)			892			3,424
Adjusted noninterest expense⁽¹⁾	40,652			42,778			43,336			48,375			46,664
Adjusted pre-tax pre-provision income⁽¹⁾	$	18,861		$	16,029		$	12,172		$	13,182		$	21,210

Average assets	$	7,687,105		$	7,740,206		$	7,562,942		$	7,954,591		$	8,695,638
Pre-tax pre-provision income (loss) ROAA	1.00		%	(0.62)		%	0.37		%	0.70		%	0.86		%
Adjusted pre-tax pre-provision income ROAA⁽¹⁾	0.98		%	0.83		%	0.65		%	0.66		%	0.97		%

(1)Non-GAAP measure.

INVESTOR D PRESENTATIONbancofcal.com 2020 Third Quarter Earnings bancofcal.com

FORWARD LOOKING STATEMENTS When used in this presentation and in documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the "Safe- Harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements. These statements may relate to future financial performance, strategic plans or objectives, revenue, expense or earnings projections, or other financial items of Banc of California Inc. and its affiliates (“BANC,” the “Company,” “we,” “us” or “our”), as well as the continuing effects of the COVID-19 pandemic on the Company’s business, operations, financial performance and prospects. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements. Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (i) the costs and effects of litigation generally, including legal fees and other expenses, settlements and judgments; (ii) the effect of the novel coronavirus (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; (iii) the risk that the benefits we realize from exiting the third party mortgage origination and brokered single-family residential lending business will be less than anticipated and that the costs we incur from exiting that business will be greater than anticipated; (iv) the risk that we will not be successful in the implementation of our capital utilization strategy and our other strategies for transitioning to a traditional community bank; (v) risks that the Company’s merger and acquisition transactions may disrupt current plans and operations and lead to difficulties in customer and employee retention, risks that the costs, fees, expenses and charges related to these transactions could be significantly higher than anticipated and risks that the expected revenues, cost savings, synergies and other benefits of these transactions might not be realized to the extent anticipated, within the anticipated timetables, or at all; (vi) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including but not limited to the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan and lease delinquencies, losses and nonperforming assets in our loan and lease portfolio, and may result in our allowance for credit losses not being adequate and require us to materially increase our loan and lease loss reserves; (vii) the quality and composition of our securities portfolio; (viii) changes in general economic conditions, either nationally or in our market areas, or changes in financial markets; (ix) continuation of or changes in the short-term interest rate environment, changes in the levels of general interest rates, volatility in the interest rate environment, the relative differences between short- and long-term interest rates, deposit interest rates, our net interest margin and funding sources; (x) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (xi) our ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund our activities; (xii) results of examinations of us by regulatory authorities and the possibility that any such regulatory authority may, among other things, limit our business activities, require us to change our business mix, restrict our ability to invest in certain assets, increase our allowance for credit losses, write-down asset values or increase our capital levels, affect our ability to borrow funds or maintain or increase deposits, or impose fines, penalties or sanctions, any of which could adversely affect our liquidity and earnings; (xiii) legislative or regulatory changes that adversely affect our business, including, without limitation, changes in tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (xiv) our ability to control operating costs and expenses; (xv) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (xvi) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xviii) failures or security breaches with respect to the network 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 severe weather, natural disasters, pandemics, acts of war or terrorism and other external events on our business; (xxiii) the ability of key third-party providers to perform their obligations to us; (xxiv) changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board or their application to our business, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; (xxv) continuing impact of the new accounting standard adopted by the Financial Accounting Standards Board, 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 or preferred stock; and (xxviii) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described from time to time in other documents that we file with or furnish to the SEC. Third Quarter 2020 | 1

THIRD QUARTER 2020 RESULTS ($ in Thousands Except EPS) 3Q20 2Q20 3Q19 Net interest income $ 55,855 $ 55,315 $ 58,915 Provision for credit losses $ 1,141 $ 11,826 $ 38,607 Net income (loss) $ 15,913 $ (18,449) $ (14,132) Net income (loss) available to common stockholders $ 12,084 $ (21,936) $ (22,722) Pre-tax pre-provision (loss) income(1) $ 19,415 $ (11,927) $ 18,856 Adjusted pre-tax pre-provision income(1) $ 18,861 $ 16,029 $ 21,210 Earnings / (Loss) Per Diluted Share $ 0.24 $ (0.44) $ (0.45) Average assets $ 7,687,105 $ 7,740,206 $ 8,695,638 Net interest margin 3.09% 3.09% 2.86% Allowance for credit losses coverage ratio 1.66% 1.68% 1.05% Common equity tier 1 11.64% 11.68% 10.34% Tangible common equity per common share $ 12.92 $ 12.37 $ 13.16 Noninterest-bearing deposits as % of total deposits 24.1% 23.0% 19.2% Core deposits as % of total deposits 98.5% 97.0% 98.4% (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation Third Quarter 2020 | 2

DELIVERING ANTICIPATED EARNINGS IMPROVEMENT 3rd Quarter 2020 Summary • Net income of $15.9 million, or $0.24 per diluted share Significant Increase • Net income includes an effective tax rate of 12.9%, a benefit of $0.04 per diluted share if adjusted for an effective tax rate of 25% in Profitability • Adjusted pre-tax pre-provision income(1) of $18.9 million, an increase of 17.7% from 2Q20 Continued • Fifth consecutive quarter of DDA growth; noninterest-bearing deposits Improvement in increased $59.2mm to represent 24% of total deposits Deposit Mix • Cost of deposits spot rate at September 30, 2020 was 39 bps; the average Resulting in Stable cost of deposits declined to 51 bps in 3Q20 from 71 bps in 2Q20 Net Interest Margin • Net interest margin remained stable at 3.09% Increasing Commercial • Commercial loans increased $191 million or 4.5% from end of prior quarter Loan Growth Reduced • Operating costs(1) declined $2.1 million from 2Q20 Expense Levels • Positive trends in asset quality and proactive reserve building in 1H 2020 Strong Asset Quality resulted in lower 3Q20 provision expense (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation Third Quarter 2020 | 3

TRANSFORMING BANC OF CALIFORNIA Phase One Phase Two Phase Three Building the Foundation Generating Profitable High Performing Growth Institution • Improve deposit mix • Continue to • Consistently optimize deposit generate � Noninterest-bearing deposits increased to 24% of mix and grow DDA performance that total deposits from 15% at 3/31/19 balances favorably compares • Reduce cost of funds to peer group: • Grow total loan � Cost of deposits spot rate declined to 39 bps from balances • ROAA 163 bps at 3/31/19 • ROTCE � Refinanced $111 million term debt in 2Q20 resulting • Realize operating in savings of 88 bps per year starting in 3Q20 leverage • Efficiency Ratio • Rightsize balance sheet • Expand net interest • Cost / Mix of � Total assets decreased 22% since 3/31/19; resulted margin Deposits in increased capital ratios • NCOs/Average Loans • Reduce expenses • Expand customer � Adjusted noninterest expense reduced 25% from base 1Q19 Opportunities to Accelerate Improvement in Financial Performance • Terminated LAFC Agreement • Redeem Preferred Stock Complete Started • Refinanced FHLB Advances • Diversify Out of CLO Portfolio Not Started Third Quarter 2020 | 4

PROVEN EARNINGS GROWTH TRAJECTORY Adjusted Pre-tax Pre-provision Income (1) ($ in millions) 0.98% 0.83% $18.9 $16.0 0.66% 0.65% $13.2 $12.2 4Q19 1Q20 2Q20 3Q20 Adjusted Pre-tax, pre-provision income Adjusted PTPP Income / Avg. Assets (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation Third Quarter 2020 | 5

STABILIZED AND GROWING CORE EARNINGS ($ in millions) 3Q20 • 17.7% increase in adjusted Adjusted PTPP ROAA: pre-tax pre-provision 0.98% (PTPP) income $19.4 $18.9 • PTPP ROAA increased to $0.0 $0.0 $1.2 $(1.4) $(0.3) $0.0 0.98% due to higher core earnings 3Q20 PTPP LAFC Debt Non- Gain on Gain on sale Gain on sale 3Q20 • Higher adjusted PTPP Income Restructure retirement Core alternative of loans of securities Adjusted driven by stable net interest expense Expense energy PTPP Income(1) partnerships margin due to improved 2Q20 Adjusted earning asset mix and lower PTPP ROAA: funding costs, and ongoing 0.83% operating efficiencies $0.9 $(0.2) $(0.0) $16.0 $2.5 $(2.0) • Non-core expense relates to indemnified legal expenses net of recoveries $26.8 $(11.9) 2Q20 LAFC Debt Non- Gain on alt. Gain on sale Gain on sale 2Q20 PTPP Loss Restructure retirement Core energy of loans of securities Adjusted (1) expense Expense partnerships PTPP Income (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation Third Quarter 2020 | 6

RAPIDLY IMPROVING DEPOSIT FRANCHISE Average Cost of deposits Money Market & Savings • $59.2 million quarterly Noninterest-bearing Brokered CDs increase in noninterest- 1.48% Interest-bearing checking CDs bearing deposits 1.27% Spot 1.11% Rate • Large percentage of 0.39% noninterest-bearing and 0.71% low-cost deposits 0.51% 19% 15% 14% 24% 22% 3% 1% • Targeted deposit strategy 1% 0% 4% 28% 27% resulting in lower deposit 30% 30% 26% costs over time Cost of Deposits 31% 34% 26% 28% 28% • Spot rate at September 30, 19% 20% 23% 23% 24% 2020 was 39 bps 3Q19 4Q19 1Q20 2Q20 3Q20 Category 3Q19 4Q19 1Q20 2Q20 3Q20 $ in millions Noninterest-bearing checking $1,107.4 $1,088.5 $1,256.1 $1,391.5 $1,450.7 Interest-bearing checking 1,503.2 1,533.9 1,572.4 1,846.7 2,045.1 Demand deposits 2,610.7 2,622.4 2,828.5 3,238.2 3,495.9 Savings 1,042.2 885.2 877.9 939.0 946.3 Money Market 695.5 715.5 575.8 765.9 689.8 Non-maturity deposits 1,737.7 1,600.7 1,453.8 1,704.9 1,636.1 CDs 1,367.3 1,204.0 1,071.9 924.6 820.5 Brokered CDs 54.4 00.0 208.7 169.8 79.8 Total(1) $5,770.1 $5,427.2 $5,562.8 $6,037.5 $6,032.3 (1) Reflects balance as of period end Third Quarter 2020 | 7

ALL BUSINESS UNITS SHOWING SOLID DEPOSIT GROWTH Period end balances ($ in millions) +34% $3,496 $3,238 $2,828 $924 $2,611 $2,622 $904 $770 $775 $758 $2,128 $1,908 $1,580 $1,500 $1,545 $302 $296 $457 $399 $416 $33 $24 $22 $27 $28 3Q19 4Q19 1Q20 2Q20 3Q20 Community & Business Banking Commercial Real Estate & Banking Private & Specialty Banking Other Third Quarter 2020 | 8

DIVERSIFIED LOAN PORTFOLIO MITIGATES RISK AND IS HOLDING YIELD 3rd Quarter 2020 2nd Quarter 2020 Change Loan Segment $(1) % Av g. Yie ld $1 % Av g. Yie ld $ % Av g. Yie ld $ in Millions C&I $ 1,587 28% 4.43% $ 1,437 26% 4.45% $ 150 2% -0.02% Multifam ily 1,477 26% 4.72% 1,434 25% 4.50% 43 1% 0.22% CRE 827 15% 4.69% 823 15% 4.86% 4 0% -0.17% Construction 198 3% 5.00% 213 4% 5.30% (15) -1% -0.30% SBA 321 6% 4.35% 311 6% 5.64% 10 0% -1.29% SFR 1,234 22% 4.00% 1,371 24% 4.03% (136) -2% -0.03% Consumer 35 1% 5.04% 39 1% 4.44% (4) 0% 0.60% Total Loans HFI $ 5,678 100% 4.46% $ 5,628 100% 4.49% 50 N/A -0.03% Real Estate Secured with Low LTVs PPP Loan Overview • 67% of loan portfolio is secured by residential real • As of September 30th, PPP loans net of fees estate (primary residences) comprised $256 million of the SBA portfolio • Weighted average LTV’s of 57% • Of the 1,128 PPP loans funded, 44% are under $50k and represent 4% of the PPP loan portfolio • ~90% of all real estate secured loans have loan-to- balance values (LTVs) of less than 70% • As of October 16, 2020, 313 PPP loans, or 27% • ~86% of the SFR portfolio have LTVs of less than of the loan count, representing $86 million, or 70% 33% of the funded PPP loans, are actively in the forgiveness process (1) Reflects balance as of period end Third Quarter 2020 | 9

FORBEARANCE AND DEFERMENTS DECLINE ($ in millions) Deferrals by Loan Type as of 9/30/20(1),(2) Approved or Booked Under Review(3) Total Deferrals % of % of % of Change in Total $ # Portfolio $ # Portfolio $ # Portfolio Deferral Balance Portfolio Deferred Deferred Deferred from 6/30/20 1-4 Family Residential $ 138 123 11% $ - 0 0% $ 138 123 $ 1,234 11% $ (26) Multifamily 18 1 1% 0 1 <1% 18 2 1,477 1% (96) CRE 80 10 10% 9 5 1% 89 15 827 11% (129) Construction & Dev. - 0 0% - 0 0% - 0 198 0% (32) Commercial & Industrial 1 3 <1% 18 9 1% 19 12 1,587 1% (34) Other Consumer 1 3 2% - 0 0% 1 3 35 2% (0) SBA - 0 0% 18 3 6% 18 3 321 6% (4) Total $ 238 140 4% $ 45 18 <1% $ 283 158 $ 5,678 5% $ (321) Total loan deferrals and forbearances declined $321 million from 2Q20 • $138 million, or 49%, of deferments/forbearances at the end of 3Q20 relate to legacy 1-4 Family Residential loans • $107 million, or 38%, of total 3Q20 amounts are secured by CRE Retail, Office, and Multifamily properties with low loan-to values • 16 initial deferment/forbearance requests received in 3Q20 -53% $604 $164 SFR Non-SFR $283 $440 $138 $145 6/30/2020 9/30/2020(3) (1) Excludes loans in forbearance that are current and loans delinquent prior to COVID-19 (2) Deferments for SFR portfolio are forbearances Third Quarter 2020 | 10 (3) Loans in the process of deferment or forbearance are not reported as delinquent

ASSET QUALITY DECLINING LEVELS OF NPLS, DELINQUENCIES, AND CLASSIFIED LOANS Delinquencies ($ in millions) Criticized and Classified Loans ($ in millions) SFR Delinquencies Criticized Loans Delinquencies (ex-SFR) Classified Loans -8.52% Delinquencies /Total Loans 1.69% $195 1.50% 1.46% $186 $170 $167 $170 0.88% 0.97% $129 $95.2 $112 $111 $85.0 $102 $83.0 $87 $56.3 $57.6 $70.3 $71.4 $71.1 $45.4 $43.4 $10.9 $14.2 $13.6 $24.9 $12.0 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Non-performing Loans (NPLs) ($ in millions) ACL / Non-performing Loans (NPLs) ($ in millions) SFR NPLs ACL / NPLs NPLs (ex-SFR) ACL NPLs/Total Loans-HFI 149% 142% 145% 141% 1.29% 130% 1.00% 1.18% 0.71% 0.73% $72.7 $66.9 $56.5 $28.5 $45.2 $43.4 $26.3 $24.4 $82.1 $94.6 $94.1 $15.6 $18.6 $67.3 $61.7 $44.2 $40.6 $29.6 $24.7 $32.1 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Third Quarter 2020 | 11

NON-PERFORMING & DELINQUENT LOANS ROLLFORWARD TOP 10 RELATIONSHIPS Non-performing Loans ($ in thousands) 3Q 3Q Loan 2Q • Non-performing loans # 2Q20 Delta 3Q20 Accrual Delinquency Category Accrual Status Status Status decreased $5.8 million to $66.9 1 $ 16,353 $ (206) $ 16,147 C&I Non-Accrual Non-Accrual Current million of which 47% are in 2 11,482 (1,843) 9,639 CRE / SFR Non-Accrual Non-Accrual Current 3 9,065 - 9,065 SFR Non-Accrual Non-Accrual 90+ current payment status 4 3,658 (68) 3,589 C&I Non-Accrual Non-Accrual 90+ 5 3,253 - 3,253 SFR Non-Accrual Non-Accrual 90+ • Largest 3 NPLs total $34.9 6 2,729 (43) 2,686 CRE Non-Accrual Non-Accrual Current 7 2,486 - 2,486 SFR Non-Accrual Non-Accrual 90+ million, or 52%, and relate to 8 1,975 (11) 1,965 SFR Non-Accrual Non-Accrual 90+ one $16.1 million legacy shared 9 1,881 - 1,881 SFR Non-Accrual Non-Accrual 90+ national credit, a $9.6 million 10 - 1,496 1,496 SFR Accrual Non-Accrual 90+ 11+ 19,821 (5,145) 14,676 legacy relationship well-secured Total $ 72,703 $ (5,819) $ 66,884 by CRE and SFR properties Delinquent Loans ($ in thousands) (1) with a 51% average LTV, and 2Q 3Q Loan 3Q # 2Q20 Delta 3Q20 Delinquency Delinquency Category Accrual Status one $9.1 million SFR mortgage Status Status 1 $ 9,065 - $ 9,065 SFR Non-Accrual 90+ 90+ with a 58% LTV 2 3,658 (68) 3,589 C&I Non-Accrual 90+ 90+ 3 3,253 - 3,253 SFR Non-Accrual 90+ 90+ • Delinquencies decreased $12.2 4 2,986 - 2,986 SFR Accrual 30-59 30-59 5 2,980 - 2,980 SFR Accrual 30-59 30-59 million as $30.0 million loans 6 2,954 - 2,954 SFR Accrual 30-59 30-59 returned to current status 7 2,486 - 2,486 SFR Non-Accrual 90+ 90+ partially offset by $18.0 million 8 2,486 (0) 2,486 SFR Accrual 30-59 30-59 9 - 2,156 2,156 SFR Accrual Current 30-59 of additions 10 2,077 - 2,077 SFR Accrual 30-59 30-59 11+ 63,248 (14,244) 49,005 Total $ 95,194 $ (12,156) $ 83,038 (1) Certain loans in the process of deferment are not reflected in the delinquency statistics. Third Quarter 2020 | 12

ALLOWANCE FOR CREDIT LOSSES WALK $100.0 $ in millions $94.6 $0.9 $1.2 $95.0 $94.1 ($1.6) ($1.0) $90.0 $85.0 1.68%(1),(2) 1.66%(1),(2) $80.0 $75.0 $70.0 ACL Portfolio Charge-offs Specific Economic Forecast ACL (6/30/20) Changes (net of Recoveries) Reserves and Other (9/30/20) ● Q3 ‘20: The Allowance for Credit Losses (ACL) reserve decreased $0.5 million due to (1) lower general reserves from improved forecasted economic factors, offset by modest loan growth, (2) higher specific reserves of $1.2mm, and (3) net charge-offs of $1.6mm – The economic forecasts released during September included higher GDP growth rates and lower unemployment rates compared to the June forecast. While the September forecasts were more favorable than the June forecasts, the foreseeable future economic environment is very uncertain and the ultimate result of the recession is unknown at this time. Accordingly, our economic view reflects this uncertainty. – The reserve included qualitative factors to account for our visibility of actual conditions related to our loan portfolio – Our ACL methodology uses a nationally-recognized, third party model that includes many assumptions based on our and peer historical loss data, our current loan portfolio risk profile, and economic forecasts ● ACL includes Reserve for Unfunded Loan Commitments (RUC) (1) Coverage percentage equals ACL to Total Loans (2) ACL coverage ratio 8 bps higher at 6/30/20 and 9/30/20 when PPP loans are excluded Third Quarter 2020 | 13

CONTINUED FOCUS ON EXPENSE MANAGEMENT • Adjusted noninterest expense(1) decreased $2 million from prior quarter with a 1% decrease in average assets • Non-core expense/benefits relates to: 1) timing of indemnified legal costs/recoveries, 2) the impact of the LAFC agreement termination, 3) debt restructure expense, and 4) loss/gain on investments in alternative energy partnerships(2) • Adjusted noninterest expense decreased 13% versus 3Q19 Noninterest Expense to Average Assets Adjusted Noninterest Expense to Average Assets ($ millions) ($ millions) 3.78% 2.41% 2.37% 2.50% 2.30% 2.22% 1.97% $72.8 2.09% 2.13% 2.10% $43.2 $47.5 $46.9 $42.8 $40.4 -13% $48 $46.6 $48.4 $43.3 $40.7 $47 $43 $43 $41 $30.0 -$3.4 -$0.9 $3.6 -$0.3 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Total Non-Core expense Noninterest Expense / Average Assets Adjusted Noninterest Expense Adjusted Noninterest Expense Adjusted Noninterest Expense / Average Assets (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) Loss on investments in alternative energy partnerships create tax credits to offset expense incurred Third Quarter 2020 | 14

STRONG CAPITAL BASE 3Q20 2Q20 1Q20 4Q19 3Q19 Common Equity Tier 1 11.64% 11.68% 11.58% 11.56% 10.34% Tier 1 Risk-based Capital 14.98% 15.10% 14.91% 14.83% 13.32% Leverage Ratio 10.83% 10.56% 11.20% 10.89% 9.84% Tangible Equity / Tangible Assets(1) 10.84% 10.43% 10.42% 11.12% 10.01% Tangible Common Equity / Tangible 8.43% 8.04% 7.96% 8.68% 7.80% Assets(1) • Strategic decision to exit non-franchise enhancing assets resulted in build up of significant capital and steadily improving ratios • Capital provides a buffer for the uncertain outlook and optionality to deploy for benefit of shareholders (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation Third Quarter 2020 | 15

2020 STRATEGIC OBJECTIVES • Heightened monitoring for signs of stress in well-underwritten loan portfolio mainly secured by Heightened Focus CA-based real estate with relatively low LTVs on Credit • Maintain a high level of reserves given uncertain environment • New production focused on high quality relationship loans in our footprint • Growing noninterest-bearing and DDA deposits improves deposit mix and drives net interest margin expansion Build High Quality • Cost of deposits actively managed down to achieve peer median, with longer term goal of Deposit Base reaching below peer median • High touch relationship-banking for businesses and entrepreneurs driving value creation and growth Diversify Balance • Lending teams gaining traction after joining in 2H19 • Loan demand picking up with stronger borrowers capitalizing on investment opportunities Sheet and Accelerate • Commercial loan growth expected to more than offset legacy SFR and Multifamily payoffs in Loan Growth 2H20, resulting in flattish balance sheet year over year • High capital from reduction in balance sheet plus credit reserves provides strong buffer in Optimize Use uncertain environment • Evaluating uses of capital that will enhance earnings and improve franchise for the long-term of Capital • Opportunity to redeem preferred stock at appropriate time • Stock repurchases paused to preserve capital and provide flexibility 2020 objectives effectively transformed the Company in terms of strategic focus, balance sheet composition, and capital levels. With strong capital, improving deposit franchise and relationship focus, progress on 2020 objectives should position the company for solid performance in 2021 and beyond. Third Quarter 2020 | 16

APPENDIX bancofcal.com

LOAN PORTFOLIO CHARACTERISTICS Loan Portfolio by Segment Loan Portfolio by Geography $ in millions $ in millions Northeast Midwest Northern California (1) $151 SBA South $120 $382 $414 3% 2% $321 Consumer 7% Central 6% 7% Single Family Res. $35 California $1,234 1% Other West $172 3% Construction 22% $307 5% $198 3% C&I CRE $1,587 $827 28% 14% Multifamily Southern California $1,477 $4,133 26% 73% 93% in California 83% in California Loan Segment Avg. Yield Key Commentary C&I 4.43% • 67% of loan portfolio is secured by residential Multifam ily 4.72% real estate (primary residences) CRE 4.69% • Weighted average LTV’s of 57% Construction 5.00% SBA 4.35% • ~90% of all real estate secured loans have loan- Single Family Res. 4.00% to-values (LTVs) of less than 70% Consumer 5.04% • ~86% of the SFR portfolio have LTVs of less Total Loans HFI 4.46% than 70% (1) Includes $256 million of PPP loans. Third Quarter 2020 | 18

REAL ESTATE LOAN PORTFOLIO HAS LOW LTVS (1) Real Estate Loan Balances(1) Real Estate LTVs $ % Count $ in Millions $ in millions $4,459 <50% $ 1,004 27% 884 $4,135 $3,971 $3,841 $3,736 50% to 60% 988 26% 537 70% 69% 70% 68% 66% 60% to 70% 1,379 37% 621 70% to 80% 258 7% 154 >80% 106 3% 79 Total $ 3,736 100% 2,275 • ~90% of all real estate secured loans have loan-to-values (LTVs) of less than 70% 3Q19 4Q19 1Q20 2Q20 3Q20 • Weighted average LTV is 57% RE Loans / Loans-HFI RE Loans SFR LTVs $ % Count SFR Portfolio by LTV $ in Millions <50% $ 372 30% 490 >80% 50% to 60% 337 27% 325 70% to 80% <50% 60% to 70% 355 29% 340 70% to 80% 135 11% 124 >80% 36 3% 46 60% to 70% Total $ 1,235 100% 1,325 • ~86% of all existing SFR have loan-to-values 50% to 60% (LTVs) of less than 70% • Weighted average LTV is 56% (1) Excludes credit facilities Third Quarter 2020 | 19

CALIFORNIA-CENTRIC CRE AND MULTIFAMILY PORTFOLIOS HAVE LOW WEIGHTED-AVERAGE LTV CRE & Multifamily by Collateral Type Strip Center Other 8.1% 2.9% Multi Tenant Other 47.5% Industrial Single Tenant 8.8% 16.7% 4.0% Hospitality Mixed Use Other 0.3% 2.4% 0.2% Neighborhood Shopping Center 24.9% Retail Owner Occupied 13.3% 11.2% Office Multifamily 9.6% 64.1% Residential Non Owner 97.4% Occupied 88.8% Collateral Type Count Balance Av g. Loan Siz e W.A. LT V W.A. DSCR $ in thousands MultiFam ily 647 $ 1,476,803 $ 2,283 59.9% 1.3x Office 53 220,392 4,158 54.8% 1.8x Retail 87 306,568 3,524 53.4% 1.7x Hospitality 6 6,931 1,155 46.1% 1.6x Industrial 41 91,206 2,225 54.2% 1.7x Other 64 201,586 3,150 60.9% 2.3x Total CRE & MF 898 $ 2,303,486 $ 2,565 58.4% 1.5x Third Quarter 2020 | 20

CONSTRUCTION PORTFOLIO Construction Portfolio Use Construction Portfolio Income Land C&I Buildings Health Facility 6% 4% 3% SFR Income 39% 55% Multi-Family 93% • As of 3Q20, Construction Portfolio was $198mm and represented 3% of total HFI loans • Weighted average LTV is 53% Third Quarter 2020 | 21

DIVERSIFIED AND LOW AVERAGE BALANCE C&I PORTFOLIO Professional Services Transportation Accomodations • ~72% C&I Concentration toward Food Services 1% 0.3% 0.1% 2% Businesses focused on Finance and Television / Motion Pictures All Other Insurance, and Real Estate and Rental 2% C&I Other Retail 6% Leasing Trade 2% Whole Sale • Limited Exposure to High Stressed Trade 3% Finance and Business Industries Healthcare Insurance Real Estate & Rental • 2% Television / Motion Pictures 4% 59% Manufacturing Leasing 13% • 2% Food Services 3% • <1% Transportation Gas Stations 5% • <1% in Accommodations NAICS Industry Count $ Avg. Loan Size • All Other C&I includes a diverse mix of $ in thousands industry sectors Finance and Insurance(1) 170 $ 932,887 $ 5,488 • 2% Administrative and Support Real Estate & Rental Leasing 148 204,182 1,380 • 1% Management of Companies Gas Stations 53 70,630 1,333 Manufacturing 58 50,747 875 • 1% Education Services Healthcare 44 67,789 1,541 • <1% Arts / Recreation Wholesale trade 36 40,232 1,118 Other Retail Trade 39 37,157 953 • <1% Construction / Contracting Television / Motion Pictures 25 31,310 1,252 Food Services 20 29,835 1,492 Professional Services 48 13,878 289 Transportation 12 5,480 457 Accommodations 5 1,473 295 All Other C&I 121 101,222 837 Total C&I 779 $ 1,586,824 $ 2,037 (1) Includes Warehouse lending Third Quarter 2020 | 22

STRONG ALLOWANCE COVERAGE RATIO; ALLOCATION OF RESERVE BY LOAN TYPE ACL Composition 3Q20 2Q20 At CECL Adoption 4Q19 ($ in thousands) Amount % of Loans Amount % of Loans Amount % of Loans Amount % of Loans Commercial real estate $ 19,373 2.34% $ 17,372 2.11% $ 10,788 1.32% $ 5,941 0.73% Multifamily 25,559 1.73% 25,105 1.75% 13,214 0.88% 11,405 0.76% Construction 6,205 3.14% 6,675 3.13% 4,009 1.73% 3,906 1.69% Commercial and industrial 26,591 1.68% 26,618 1.85% 23,015 1.36% 22,353 1.32% SBA 3,557 1.11% 4,184 1.35% 3,508 4.94% 3,120 4.40% Total commercial loans 81,285 1.84% 79,954 1.90% 54,534 1.27% 46,725 1.08% Single family residential mortgage 8,976 0.73% 9,665 0.71% 10,066 0.63% 10,486 0.66% Other consumer 666 1.90% 751 1.91% 658 1.21% 438 0.81% Total consumer loans 9,642 0.76% 10,416 0.74% 10,724 0.65% 10,924 0.66% Allowance for loan losses 90,927 1.60% 90,370 1.61% 65,258 1.10% 57,649 0.97% Reserve for unfunded commitments 3,206 0.06% 4,195 0.07% 2,838 0.05% 4,064 0.07% Allowance for credit losses $ 94,133 1.66% $ 94,565 1.68% $ 68,096 1.14% $ 61,713 1.04% ● Allowance for Credit Losses (ACL) includes Reserve for Unfunded Commitments ● Excluding PPP loans, the ACL coverage increases from 1.66% to 1.74% at the end of 3Q20 Third Quarter 2020 | 23

SECURITIES PORTFOLIO Securities Portfolio Detail(1) Fair Value Fair Value QoQ Duration Security Type 2Q20 3Q20 Change 3Q20 Gov’t & Agency (MBS, CMO, & $ 307 $ 344 $ 37 7.41 SBA) CLOs 668 686 18 0.07 Municipal 57 69 12 7.69 Corporate Securities 144 147 3 7.44 Total Securities $ 1,176 $ 1,246 $ 70 3.28 ● The quarter over quarter change is due to $48.5 million in purchases and lower unrealized net losses of $23.9 million. The fair value improved to an unrealized net gain of $1.8 million as of 3Q20 from an unrealized net loss of $22.1 million as of 2Q20. The CLOs included an unrealized loss of $17.7 million as of 3Q20, down from $35.3 million as of 2Q20 Portfolio Profile(1) Portfolio Average Balances & Yields Credit Rating Composition $1,191 BBB Munis $1,105 $1,064 12% Corporates 6% $953 12% $834 3.60% 3.72% AAA AA 3.30% CLO 2.95% 2.26% 32% 56% 55% Gov’t & AGC 27% 3Q19 4Q19 1Q20 2Q20 3Q20 Average Balance ($ in millions) Yield (1) Dollars in millions. Values that are greater than $0.0 million (or 0.0%) but less than $0.5 million (or 0.5%) are not shown. Third Quarter 2020 | 24

CLO PORTFOLIO HAS DIVERSIFIED EXPOSURE CREDIT ENHANCEMENT PROVIDES SIGNIFICANT PRINCIPAL PROTECTION CLO Industry Breakdown • CLO portfolio has underlying diversified exposure with largest segment in Healthcare $686 million at September 30, 2020 & Pharmaceuticals at 13% (net of $17.7 million unrealized loss) • Limited exposure to severely stressed industries Aerospace & Defense 3% Other • AA and AAA holdings provide principal Healthcare & 17% Pharmaceuticals protection – exposure to underlying credit Construction & 13% Building losses would require a combination of 3% High Tech Industries lifetime defaults (25-35% CDR), loss severity Containers, 10% Packaging & Glass (40-50%), and prepayment assumptions (0- 3% 10% CPR) Automotive Services - Business 3% 9% • Under these assumptions, the underlying Capital Equipment 3% securities would need to take losses of Chemicals, approximately 25% before we would Retail FIRE - Banking, Finance, Plastics, & 3% Insurance & Real Estate anticipate incurring losses on principal Rubber 7% 3% Media - Broadcasting & • 3Q20 average CLO Portfolio yield of 2.16% Subscription 4% Hotel, Gaming & Services Consumer • Quarterly reset based on 3 Month Libor + Beverage, Leisure 4% Food & 5% 1.64% Telecommunications Tobacco 5% 4% Third Quarter 2020 | 25

ACTIVE MANAGEMENT OF DEPOSIT COSTS IS DRIVING DOWN COST OF FUNDS Cost of Funds Drivers 3.10% 2.85% 2.86% 2.74% 2.75% 2.34% 2.10% 1.78% 1.65% 1.57% 1.61% 1.75% 1.41% 1.55% 1.32% 1.48% 1.41% 1.27% 1.03% 1.11% 0.93% 0.82% 0.66% 0.71% 0.51% 3Q19 4Q19 1Q20 2Q20 3Q20 Cost of Interest-bearing deposits LT FHLB borrowings Cost of funds(1) ST FHLB borrowings Cost of total deposits (1) Cost of funds includes senior debt with a fixed rate of 5.45% Third Quarter 2020 | 26

DECLINING DEPOSIT COSTS PROTECT NET INTEREST MARGIN(1) Net Interest Margin Drivers 4.50% 4.50% 4.27% 4.06% 3.86% 3.09% 3.09% 3.04% 2.97% 2.86% 2.03% 1.85% 2.00% 1.75% 1.71% 1.29% 1.02% 0.25% 0.25% 0.25% 3Q19 4Q19 1Q20 2Q20 3Q20 Earning Asset Yield Net Interest Margin Fed Funds Rate Interest-Bearing Liabilities (1) PPP loans improve NIM by 3 bps Third Quarter 2020 | 27

INTEREST RATE RISK MANAGEMENT – EARNING ASSETS ANALYSIS Assets Repricing/Maturing by Duration ($millions) Repricing/Maturity by Product Type ($millions) $1,600 $1,400 $1,200 $1,000 $3,128 $3,408 43% $800 47% $600 $400 $200 $683 10% - < 1 Year 1 - 2 Years > 2 Years Variable Rate Loan Floors & Assets ($millions) < 1 Year 1 - 2 Years > 2 Years Category Total Balance % of Total Assets $ in millions • $3.81B (53%) of earning assets mature or have rate resets 100+ bps $ 56 0.8% 50-100 bps 48 0.7% <2 years 25-50 bps 160 2.2% 0-25 bps 105 1.4% • Earning assets with effective rate resets <2 years include: No Floor 276 3.8% Sub total Non-Floor Variable $ 645 8.9% • $2,697mm of loans Floor 1,243 17.2% • $821mm of securities (primarily CLO’s) Variable Loans $ 1,888 26.2% Hybrid Loans $ 2,654 36.8% • $292mm of interest-bearing cash deposits Fixed Loans $ 1,136 15.7% Total HFI Loans $ 5,678 78.7% • $3.41B (47%) of earning assets mature or have rate resets Total HFS Loans $ 2 0.0% Total Gross Loans $ 5,680 78.7% >2 years Fixed Securities $ 252 3.5% Variable Securities $ 994 13.8% Total Securities $ 1,246 17.3% Other Interest-Earning Assets $ 292 4.1% Total Earning Assets $ 7,218 100.0% Third Quarter 2020 | 28

INTEREST RATE SENSITIVITY Change in Economic Value of Equity Change in Net Interest Income 17.4% 7.0% 14.7% 5.7% 10.0% 8.3% 3.5% 2.4% (8.4%) (9.8%) (1.4%) (1.2%) -100 bps +100 bps +200 bps -100 bps +100 bps +200 bps 6/30/2020 9/30/2020 6/30/2020 9/30/2020 Amount Change from Base Case ($000) Amount Change from Base Case ($000) 6/30/2020 9/30/2020 6/30/2020 9/30/2020 +200 bps $196,900 $183,248 +200 bps $14,467 $12,711 +100 bps $113,620 $104,061 +100 bps $7,334 $5,454 -100 bps ($111,261) ($104,890) -100 bps ($2,817) ($2,829) Third Quarter 2020 | 29

BANC FAST FACTS (Dollars in millions(1)) 3Q20 2Q20 1Q20 4Q19 3Q19 Total assets $ 7,738 $ 7,770 $ 7,663 $ 7,828 $ 8,625 Securities available-for-sale 1,246 1,176 969 913 776 Loans receivable 5,678 5,628 5,667 5,952 6,383 Total deposits 6,032 6,037 5,563 5,427 5,770 Net interest income 55.9 55.3 51.9 56.7 58.9 Total noninterest income 4.0 5.5 2.1 4.9 3.2 Total revenue 59.8 60.8 53.9 61.6 62.1 Noninterest expense(3),(4) 41.8 72.9 45.0 46.4 44.2 (Gain) loss on investments in alternative energy partnerships (1.4) (0.2) 1.9 1.0 (0.9) Total noninterest expense 40.4 72.8 46.9 47.5 43.2 Pre-tax pre-provision income(5) 19.4 (11.9) 7.0 14.1 18.9 Provision for (reversal of) credit losses 1.1 11.8 15.8 (3.0) 38.6 Net income (loss) 15.9 (18.4) (6.6) 14.3 (14.1) Preferred dividend and other adjustments 3.8 3.5 3.1 3.9 8.6 Net income (loss) available to common stockholders $ 12.1 $ (21.9) $ (9.7) $ 10.4 $ (22.7) Diluted earnings (loss) per common share $ 0.24 $ (0.44) $ (0.19) $ 0.20 $ (0.45) Return on average assets(2) 0.82% (0.96%) (0.35%) 0.71% (0.64%) Adjusted efficiency ratio(2),(5) 68.30% 119.55% 86.54% 74.51% 70.00% Class / CUSIP Issue Date Par Value Dividend Rate First Callable Date Preferred Equity Series ($000) / Coupon (%) Preferred Equity: Non-Cumulative, Perpetual D 05990K882 4/8/2015 $ 93,270,000 7.375% 6/15/2020 Preferred Equity: Non-Cumulative, Perpetual E 05990K874 2/8/2016 98,702,000 7.000% 3/15/2021 Total Preferred Equity $ 191,972,000 (1) All figures from reported operations unless noted; dollars in millions unless noted per share or percentage (2) Consolidated operations; Efficiency ratio adjusted for including the pre-tax effect of investments in alternative energy partnerships (3) Excluding loss on investments in alternative energy partnerships (4) Non-GAAP measure, reconciliation in table above (5) Non-GAAP financial Third Quarter 2020 | 30 measure; see “Non-GAAP Reconciliation” slides at end of presentation

NON-GAAP FINANCIAL INFORMATION This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include noninterest expense to average assets, pre-tax pre-provision income, pre-tax pre-provision return on average assets, noninterest expense from core operations, operating expense from core operations, adjusted pre-tax pre-provision income, adjusted pre-tax pre-provision return on average assets, and diluted earnings per common share from core operations, adjusted for non-core items, each excluding loss on investments in alternative energy partnerships and the latter four measurements adjusted for non-core items. Management believes that these particular measures provide useful supplemental information in understanding our core operating performance. These measures should not be viewed as substitutes for measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 32-36 of this presentation. Non-GAAP measures in this presentation also include tangible equity to tangible assets, tangible common equity to tangible assets, return on average tangible common equity, and adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships. These particular measures are used by management in its analysis of the Company's capital strength and the performance of the Company’s businesses. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of these measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial strength of the Company and the performance of its businesses. These measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 32-36 of this presentation. Third Quarter 2020 | 31

NON-GAAP RECONCILIATION (Dollars in thousands) 3Q20 2Q20 1Q20 4Q19 3Q19 Noninterest expense $ 40,394 $ 72,770 $ 46,919 $ 47,483 $ 43,240 (Loss) gain on investments in alternative energy partnerships (1,430) (167) 1,905 1,039 (940) Adjusted noninterest expense 41,824 72,937 45,014 46,444 44,180 Net interest income 55,855 55,315 51,861 56,660 58,915 Noninterest income 3,954 5,528 2,061 4,930 3,181 Total revenue 59,809 60,843 53,922 61,590 62,096 Tax credit from investments in alternative energy partnerships - - - 1,689 77 Deferred tax expense on investments in alternative energy - - - (177) (8) partnerships Tax effect on tax credit and deferred tax expense - - - 267 7 Gain (loss) on investments in alternative energy partnerships 1,430 167 (1,905) (1,039) 940 Total pre-tax adjustments for investments in alternative energy 1,430 167 (1,905) 740 1,016 partnerships Adjusted total revenue $ 61,239 $ 61,010 $ 52,017 $ 62,330 $ 63,112 Efficiency Ratio 67.54% 119.60% 87.01% 77.10% 69.63% Adjusted efficiency ratio including the pre-tax effect of 68.30% 119.55% 86.54% 74.51% 70.00% investments in alternative energy partnerships Effective tax rate utilized for calculating tax effect on tax credit N/A N/A N/A 15.00% 9.36% and deferred tax expense Third Quarter 2020 | 32

NON-GAAP RECONCILIATION (Dollars in thousands) 3Q20 2Q20 1Q20 4Q19 3Q19 Tangible Common Equity to Tangible Assets Ratio Total assets $ 7,738,106 $ 7,770,138 $ 7,662,607 $ 7,828,410 $ 8,625,337 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (2,939) (3,292) (3,722) (4,151) (4,605) Tangible assets $ 7,698,023 $ 7,729,702 $ 7,621,741 $ 7,787,115 $ 8,583,588 Total stockholders' equity $ 874,254 $ 846,959 $ 835,002 $ 907,245 $ 900,988 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (2,939) (3,292) (3,722) (4,151) (4,605) Tangible equity 834,171 806,523 794,136 865,950 859,239 Less: preferred stock (184,878) (185,037) (187,687) (189,825) (189,825) Tangible common equity $ 649,293 $ 621,486 $ 606,449 $ 676,125 $ 669,414 Total stockholders' equity to total assets 11.30% 10.90% 10.90% 11.59% 10.45% Tangible equity to tangible assets 10.84% 10.43% 10.42% 11.12% 10.01% Tangible common equity to tangible assets 8.43% 8.04% 7.96% 8.68% 7.80% Third Quarter 2020 | 33

NON-GAAP RECONCILIATION (Dollars in thousands) 3Q20 2Q20 1Q20 4Q19 3Q19 Return on tangible common equity Average total stockholders' equity $ 865,406 $ 854,250 $ 916,047 $ 912,749 $ 961,739 Less: Average preferred stock (184,910) (185,471) (189,607) (189,824) (213,619) Less: Average goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: Average other intangible assets (3,172) (3,574) (4,003) (4,441) (4,935) Average tangible common equity $ 640,180 $ 628,061 $ 685,293 $ 681,340 $ 706,041 Net income (loss) $ 15,913 $ (18,449) $ (6,593) $ 14,272 $ (14,132) Less: Preferred stock dividends and impact of preferred (3,454) (3,393) (3,007) (3,540) (8,496) stock redemption Add: Amortization of intangible assets 353 430 429 454 500 Less: Tax effect on amortization of intangible assets (74) (90) (90) (95) (105) Net (loss) income available to common stockholders $ 12,738 $ (21,502) $ (9,261) $ 11,091 $ (22,233) Return on average equity 7.32% (8.69%) (2.89%) 6.20% (5.83%) Return on average tangible common equity 7.92% (13.77%) (5.44%) 6.46% (12.49%) Statutory tax rate utilized for calculating tax effect on 21.00% 21.00% 21.00% 21.00% 21.00% amortization of intangible assets Third Quarter 2020 | 34

NON-GAAP RECONCILIATION (Dollars in thousands) 3Q20 2Q20 1Q20 4Q19 3Q19 Adjusted Noninterest Expense Total noninterest expense $ 40,394 $ 72,770 $ 46,919 $ 47,483 $ 43,240 Less: non-core items Naming rights termination - (26,769) - - - Debt retirement expense - (2,515) - - - Data processing fees - - - - - Professional fees (1,172) (875) (1,678) 3,557 2,615 Restructuring expense - - - (1,626) - Other expense - - - - (131) Total non-core adjustments (1,172) (30,159) (1,678) 1,931 2,484 Less: gain/(loss) on investments in alternative 1,430 167 (1,905) (1,039) 940 energy partnerships Total adjustments 258 (29,992) (3,583) 892 3,424 Adjusted noninterest expense $ 40,652 $ 42,778 $ 43,336 $ 48,375 $ 46,664 Average assets $7,687,105 $7,740,206 $7,562,942 $7,954,591 $8,695,638 Noninterest expense / Average assets 2.09% 3.78% 2.50% 2.37% 1.97% Adjusted noninterest expense / Average assets 2.10% 2.22% 2.30% 2.41% 2.13% Third Quarter 2020 | 35

NON-GAAP RECONCILIATION (Dollars in thousands) 3Q20 2Q20 1Q20 4Q19 3Q19 Net interest income $ 55,855 $ 55,315 $ 51,861 $ 56,660 $ 58,915 Noninterest income 3,954 5,528 2,061 4,930 3,181 Total revenue 59,809 60,843 53,922 61,590 62,096 Noninterest expense 40,394 72,770 46,919 47,483 43,240 Pre-tax pre-provision income 19,415 (11,927) 7,003 14,107 18,856 Net interest income 55,855 55,315 51,861 56,660 58,915 Noninterest income 3,954 5,528 2,061 4,930 3,181 Adjustments for non-core items - noninterest income (296) (2,036) 1,586 (33) 5,778 Adjusted noninterest income 3,658 3,492 3,647 4,897 8,959 Total revenue 59,513 58,807 55,508 61,557 67,874 Noninterest expense 40,394 72,770 46,919 47,483 43,240 Total noninterest expense adjustments 258 (29,992) (3,583) 892 3,424 Adjusted noninterest expense 40,652 42,778 43,336 48,375 46,664 Adjusted pre-tax pre-provision income $ 18,861 $ 16,029 $ 12,172 $ 13,182 $ 21,210 Average Assets $ 7,687,105 $ 7,740,206 $ 7,562,942 $ 7,954,591 $ 8,695,638 Pre-tax pre-provision ROAA 1.00% (0.62%) 0.37% 0.70% 0.86% Adjusted pre-tax pre-provision ROAA 0.98% 0.83% 0.65% 0.66% 0.97% Third Quarter 2020 | 36

bancofcal.com bancofcal.com



Maryland	001-35522	04-3639825
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


October 22, 2020			/s/ Lynn M. Hopkins
			Lynn M. Hopkins
			Executive Vice President and Chief Financial Officer