8-K - BANC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

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

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

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

Registrant’s telephone number, including area code:

    \(855\) 361-2262

N/A

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

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

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

Emerging growth company ☐

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

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

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

Item 2.02	Results of Operations and Financial Condition.

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

A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated by reference herein.

Item 7.01	Regulation FD Disclosure.

The Company will host a conference call to discuss its third quarter results at 10:00 A.M. Pacific Time on Tuesday, April 23, 2024. Interested parties may attend the conference call by dialing (888) 317-6003 and referencing event code 1537279. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor, in addition to the slide presentation for investor review prior to the call. A copy of the presentation materials is attached to this report as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01	Financial Statements and Exhibits.

(d) Exhibits.

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

SIGNATURES

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

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

Exhibit 99.1

Banc of California, Inc. Reports First Quarter 2024 Financial Results with Improved Profitability and Strengthened Balance Sheet

Company Release - 4/23/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the first quarter ended March 31, 2024. The Company recorded net earnings available to common and equivalent stockholders of $28.2 million, or $0.17 per diluted common share, for the first quarter of 2024. On an adjusted basis, excluding the FDIC special assessment accrued for the first quarter, net earnings available to common and equivalent stockholders was $31.7 million, or $0.19 per diluted common share^(1)^. This compares to a net loss of $492.9 million, or a loss of $4.55 per diluted common share, for the fourth quarter of 2023. The fourth quarter of 2023 included pre-tax amounts of $442.4 million of losses on security sales relating to our balance sheet repositioning strategy, merger costs of $111.8 million, and an FDIC special assessment of $32.7 million.

First quarter highlights include:

•	Net interest income increased by $88.1 million, or 58%, in the first quarter to $239.1 million, reflecting the benefits of our balance sheet repositioning which continued into the first quarter.
•	Net interest margin of 2.78%, an increase of 109 basis points from 1.69% in the fourth quarter.
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•	The average total cost of deposits decreased by 28 basis points to 2.66% for the first quarter compared to 2.94% in the fourth quarter.
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•	Improved overall deposit mix, with noninterest-bearing deposits increasing over $59 million in the first quarter and the noninterest-bearing percentage of total deposits increasing from 26% at December 31, 2023 to 27% at March 31,<br> 2024.
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•	Noninterest expenses declined by over $41 million to $210.5 million (excluding merger costs).
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•	High liquidity levels, with available on-balance sheet liquidity and unused borrowing capacity of $16.8 billion at March 31, 2024, which was 2.4<br> times greater than uninsured and uncollateralized deposits.
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•	Allowance for credit losses of 1.26% at March 31, 2024, up from 1.22% at December 31, 2023, after a first quarter provision for credit losses of $10.0 million.
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•	Net charge-offs of $1.2 million, or 2 basis<br> points of average loans and leases.
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•	Strong capital ratios well above the regulatory thresholds for "well capitalized" banks at March 31, 2024, including an estimated 16.43% Total risk-based capital ratio, 12.41% Tier 1 capital ratio, 10.12% CET1 capital ratio, and 9.14% Tier 1 leverage ratio.
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1
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•	Book value per share increased to $17.18 and tangible book value per share^(1)^ increased to $15.07.
^(1)^	Non-GAAP measure; refer to section 'Non-GAAP Measures'
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Jared Wolff, President & CEO of Banc of California, commented, “Our first full quarter results as a combined company reflect strong execution on the key initiatives that will lead to achieving the profitability targets we set for the fourth quarter of 2024. We began to realize the benefits of the balance sheet repositioning following the closing of the merger and generated a significantly higher level of net interest income and significantly lower operating expenses. Our deposit gathering engine generated an increase in noninterest-bearing deposits during the first quarter, which contributed to a lower average cost of deposits and the expansion in our net interest margin.”

Mr. Wolff continued, “We are positioned with a strong balance sheet that has good levels of capital, liquidity, and loan loss reserves, and a stable loan portfolio. While remaining disciplined and conservative in new loan originations, core loans grew 4% annualized in the quarter, offset by runoff in our discontinued portfolio. We are benefitting from our market position, seeing good opportunities to bring over new banking relationships that provide both operating deposit accounts and high-quality loans. We remain on track with our initiatives to reduce both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets.”

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INCOME STATEMENT HIGHLIGHTS

	Three Months Ended
	March 31,			December 31,			March 31,
Summary Income Statement	2024			2023			2023
	(In thousands)
Total interest income	$	488,750		$	467,240		$	517,788
Total interest expense		249,602			316,189			238,516
Net interest income		239,148			151,051			279,272
Provision for credit losses		10,000			47,000			3,000
(Loss) gain on sale of loans		(448	)		(3,526	)		2,962
Loss on sale of securities		-			(442,413	)		-
Other noninterest income		34,264			45,537			33,429
Total noninterest income (loss)		33,816			(400,402	)		36,391
Total revenue		272,964			(249,351	)		315,663
Goodwill impairment		-			-			1,376,736
Acquisition, integration and reorganization costs		-			111,800			8,514
Other noninterest expense		210,518			251,838			187,753
Total noninterest expense		210,518			363,638			1,573,003
Earnings (loss) before income taxes		52,446			(659,989	)		(1,260,340	)
Income tax expense (benefit)		14,310			(177,034	)		(64,916	)
Net earnings (loss)		38,136			(482,955	)		(1,195,424	)
Preferred stock dividends		9,947			9,947			9,947
Net earnings (loss) available to common and equivalent stockholders	$	28,189		$	(492,902	)	$	(1,205,371	)

Net Interest Income

Q1-2024 vs Q4-2023

Net interest income increased by $88.1 million, or 58.3%, to $239.1 million for the first quarter from $151.1 million for the fourth quarter due to lower borrowing balances and costs, higher asset yields that were driven by changes in the interest-earning asset mix, and lower deposit costs.

Average interest-earning assets decreased by $809.5 million to $34.6 billion for the first quarter due to the full quarter impact of our fourth quarter securities sales and lower cash balances, which were used to pay down higher-cost funding sources. The overall decline in average interest-earning assets was offset partially by the increase in average loans and leases during the first quarter due mostly to the full quarter impact of legacy Banc of California loans acquired in the fourth quarter. The net interest margin increased by 109 basis points to 2.78% for the first quarter compared to 1.69% for the fourth quarter due to the average yield on interest-earning assets increasing by 45 basis points, while the average total cost of funds decreased by 66 basis points, which was positively impacted by an increase in average noninterest-bearing deposits.

The average yield on interest-earning assets increased by 45 basis points to 5.68% for the first quarter from 5.23% in the fourth quarter due mainly to the change in the interest-earning asset mix. This was driven by the increase in the balance of average loans and leases as a percentage of average interest-earning assets to 74% for the first quarter from 67% for the fourth quarter, the decrease in the balance of average investment securities as a percentage of average interest-earning assets to 14% for the first quarter from 17% for the fourth quarter, and the decrease in the balance of average deposits in financial institutions as a percentage of average interest-earning assets to 13% for the first quarter from 16% for the fourth quarter.

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The average yield on loans and leases increased by 41 basis points to 6.23% for the first quarter from 5.82% for the fourth quarter as a result of higher discount accretion income and changes in portfolio mix and a full quarter benefit from the acquired loans and leases.

The average total cost of funds decreased by 66 basis points to 3.02% for the first quarter from 3.68% in the fourth quarter due mainly to decreases in higher-cost borrowings and interest-bearing deposits combined with an increase in average noninterest-bearing deposits. The average cost of interest-bearing liabilities decreased by 59 basis points to 3.92% for the first quarter from 4.51% in the fourth quarter. The average total cost of deposits decreased by 28 basis points to 2.66% for the first quarter compared to 2.94% in the fourth quarter. Average noninterest-bearing deposits increased by $1.4 billion for the first quarter compared to the fourth quarter and average total deposits increased by $1.5 billion.

Provision For Credit Losses

Q1-2024 vs Q4-2023

The provision for credit losses was $10.0 million for the first quarter. The first quarter provision was driven by an increase in qualitative reserves related to loans secured by office properties and an increase in quantitative reserves due to an increase in nonaccrual and classified loans and leases. The provision for credit losses was $47.0 million for the fourth quarter and included an initial provision of $22.2 million for acquired legacy Banc of California non-PCD loans. Outside this initial provision, the fourth quarter’s expense was driven by $13.2 million of net charge-offs and a need for increased quantitative reserves resulting from revising the economic forecast to reflect a 60% probability weighting on recessionary scenarios and updating expected prepayment speeds based on a high interest rate environment.

Noninterest Income

Q1-2024 vs Q4-2023

Noninterest income increased by $434.2 million to $33.8 million for the first quarter due almost entirely to a decrease in the loss on sale of securities of $442.4 million. As part of our balance sheet repositioning strategy, we sold $2.7 billion of legacy PacWest available-for-sale securities in the fourth quarter resulting in losses of $442.4 million. There were no securities sales in the first quarter of 2024.

Noninterest Expense

Q1-2024 vs Q4-2023

Noninterest expense decreased by $153.1 million to $210.5 million for the first quarter due mainly to fourth quarter acquisition, integration and reorganization costs of $111.8 million related to our merger with PacWest and a decrease in insurance and assessments expense of $39.6 million, which includes $32.7 million for the FDIC special assessment for the fourth quarter.

Income Taxes

Q1-2024 vs Q4-2023

Income tax expense of $14.3 million was recorded for the first quarter resulting in an effective tax rate of 27.3% compared to a benefit of $177.0 million for the fourth quarter and an effective tax rate of 26.8%.

4

BALANCE SHEET HIGHLIGHTS

	March 31,		December 31,		March 31,		Increase (Decrease)
Selected Balance Sheet Items	2024		2023		2023		CQ vs PQ			CQ vs PYQ
	(In thousands)
Cash and cash equivalents	$	3,085,228	$	5,377,576	$	6,680,136	$	(2,292,348	)	$	(3,594,908	)
Securities available-for-sale		2,286,682		2,346,864		4,848,607		(60,182	)		(2,561,925	)
Securities held-to-maturity		2,291,984		2,287,291		2,273,650		4,693			18,334
Loan and leases held for investment,net of deferred fees		25,483,069		25,489,687		25,672,381		(6,618	)		(189,312	)
Total assets		36,080,778		38,534,064		44,302,981		(2,453,286	)		(8,222,203	)
Noninterest-bearing deposits	$	7,833,608	$	7,774,254	$	7,030,759	$	59,354		$	802,849
Total deposits		28,892,407		30,401,769		28,187,561		(1,509,362	)		704,846
Borrowings		2,139,498		2,911,322		11,881,712		(771,824	)		(9,742,214	)
Total liabilities		32,679,344		35,143,299		41,531,504		(2,463,955	)		(8,852,160	)
Total stockholders' equity		3,401,434		3,390,765		2,771,477		10,669			629,957

Securities

The balance of securities held-to-maturity (“HTM”) remained consistent through the first quarter and totaled $2.3 billion at March 31, 2024. As of March 31, 2024, HTM securities had aggregate unrealized net after-tax losses in AOCI of $175.6 million remaining from the balance established at the time of transfer on June 1, 2022.

Securities available-for-sale (“AFS”) decreased by $60.2 million during the first quarter to $2.3 billion at March 31, 2024. AFS securities

    had aggregate unrealized net after-tax losses in AOCI of $265.3 million.
    These AFS unrealized net losses related primarily to changes in overall interest rates and spreads and the resulting impact on valuations.

5

Loans and Leases

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

	March 31,		December 31,		September 30,		June 30,		March 31,
Composition of Loans and Leases	2024		2023		2023		2023		2023
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	4,902,987	$	5,026,497	$	3,526,308	$	3,610,320	$	3,808,751
Multi-family		6,124,404		6,025,179		5,279,659		5,304,544		5,523,320
Other residential		4,949,371		5,060,309		5,228,524		5,373,178		6,075,540
Total real estate mortgage		15,976,762		16,111,985		14,034,491		14,288,042		15,407,611
Real estate construction and land:
Commercial		775,364		759,585		465,266		415,997		910,327
Residential		2,470,340		2,399,684		2,272,271		2,049,526		3,698,113
Total real estate construction and land		3,245,704		3,159,269		2,737,537		2,465,523		4,608,440
Total real estate		19,222,466		19,271,254		16,772,028		16,753,565		20,016,051
Commercial:
Asset-based		2,061,093		2,189,085		2,287,893		2,357,098		2,068,327
Venture capital		1,513,641		1,446,362		1,464,160		1,723,476		2,058,237
Other commercial		2,246,157		2,129,860		1,002,377		1,014,212		1,102,543
Total commercial		5,820,891		5,765,307		4,754,430		5,094,786		5,229,107
Consumer		439,712		453,126		394,488		409,859		427,223
Total loans and leases held for investment, net of deferred fees	$	25,483,069	$	25,489,687	$	21,920,946	$	22,258,210	$	25,672,381
Total unfunded loan commitments	$	5,482,672	$	5,578,907	$	5,289,221	$	5,845,375	$	9,776,789
Composition as % of Total	March 31,			December 31,			September 30,			June 30,			March 31,
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Loans and Leases	2024			2023			2023			2023			2023
Real estate mortgage:
Commercial		19	%		20	%		16	%		16	%		15	%
Multi-family		24	%		23	%		24	%		24	%		21	%
Other residential		19	%		20	%		24	%		24	%		24	%
Total real estate mortgage		62	%		63	%		64	%		64	%		60	%
Real estate construction and land:
Commercial		3	%		3	%		2	%		2	%		4	%
Residential		10	%		9	%		10	%		9	%		14	%
Total real estate construction and land		13	%		12	%		12	%		11	%		18	%
Total real estate		75	%		75	%		76	%		75	%		78	%
Commercial:
Asset-based		8	%		9	%		10	%		11	%		8	%
Venture capital		6	%		6	%		7	%		8	%		8	%
Other commercial		9	%		8	%		5	%		4	%		4	%
Total commercial		23	%		23	%		22	%		23	%		20	%
Consumer		2	%		2	%		2	%		2	%		2	%
Total loans and leases held for
investment, net of deferred fees		100	%		100	%		100	%		100	%		100	%
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Total loans and leases held for investment, net of deferred fees, remained consistent through the first quarter and totaled $25.5 billion at March 31, 2024. Loan fundings were $141.7 million in the first quarter at a weighted-average interest rate of 8.31%.

Deposits and Client Investment Funds

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

	March 31,		December 31,		September 30,		June 30,		March 31,
Composition of Deposits	2024		2023		2023		2023		2023
	(Dollars in thousands)
Noninterest-bearing checking	$	7,833,608	$	7,774,254	$	5,579,033	$	6,055,358	$	7,030,759
Interest-bearing:
Checking		7,836,097		7,808,764		7,038,808		7,112,807		5,360,622
Money market		5,020,110		6,187,889		5,424,347		5,678,323		8,195,670
Savings		2,016,398		1,997,989		1,441,700		897,277		671,918
Time deposits:
Non-brokered		2,761,836		3,139,270		3,038,005		2,725,265		2,502,914
Brokered		3,424,358		3,493,603		4,076,788		5,428,053		4,425,678
Total time deposits		6,186,194		6,632,873		7,114,793		8,153,318		6,928,592
Total interest-bearing		21,058,799		22,627,515		21,019,648		21,841,725		21,156,802
Total deposits	$	28,892,407	$	30,401,769	$	26,598,681	$	27,897,083	$	28,187,561
	March 31,			December 31,			September 30,			June 30,			March 31,
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Composition as % of Total Deposits	2024			2023			2023			2023			2023
Noninterest-bearing checking		27	%		26	%		21	%		22	%		25	%
Interest-bearing:
Checking		27	%		26	%		27	%		26	%		19	%
Money market		17	%		20	%		20	%		20	%		29	%
Savings		7	%		6	%		5	%		3	%		2	%
Time deposits:
Non-brokered		10	%		10	%		12	%		10	%		9	%
Brokered		12	%		12	%		15	%		19	%		16	%
Total time deposits		22	%		22	%		27	%		29	%		25	%
Total interest-bearing		73	%		74	%		79	%		78	%		75	%
Total deposits		100	%		100	%		100	%		100	%		100	%

Total deposits decreased by $1.5 billion during the first quarter to $28.9 billion at March 31, 2024, due primarily to decreases of $1.2 billion in money market accounts and $377.4 million in non-brokered time deposits.

Noninterest-bearing checking totaled $7.83 billion and represented 27% of total deposits at March 31, 2024, compared to $7.77 billion, or 26% of total deposits, at December 31, 2023.

Uninsured and uncollateralized deposits of $7.1 billion represented 24% of total deposits at March 31, 2024, compared to uninsured and uncollateralized deposits of $7.0 billion or 23% of total deposits at December 31, 2023.

7

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These alternative options include investments managed by BofCal Asset Management Inc. (“BAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $0.6 billion as of December 31, 2023 and increased to $1.2 billion at March 31, 2024, of which $0.6 billion was managed by BAM.

Borrowings

Borrowings decreased by $771.8 million from $2.9 billion at December 31, 2023, to $2.1 billion at March 31, 2024 due primarily to the paydown of $1.1 billion of the Bank Term Funding Program balance, offset partially by $300 million in FHLB borrowings. We chose to extend the $1.5 billion remaining Bank Term Funding Program balance to March 2025 in order to have the flexibility to pay down or pay off the balance at our discretion as business needs dictate.

Equity

During the first quarter, total stockholders’ equity increased by $10.7 million to $3.4 billion and tangible common equity^(1)^ increased by $18.9 million to $2.5 billion at March 31, 2024. The increase in total stockholders’ equity for the first quarter resulted primarily from net earnings in the first quarter, offset partially by dividends declared and paid.

At March 31, 2024, book value per common share increased to $17.18, compared to $17.12 at December 31, 2023, and tangible book value per common share^(1)^ increased to $15.07, compared to $14.96 at December 31, 2023.

^(1)^	Non-GAAP measures; refer to section 'Non-GAAP Measures'
8
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CAPITAL AND LIQUIDITY

Capital ratios remain strong with total risk-based capital at 16.43% and a tier 1 leverage ratio of 9.14% at March 31, 2024.

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

	March 31,			December 31,			September 30,			June 30,			March 31,
Capital Ratios	2024 (1)			2023			2023			2023			2023
Banc of California, Inc.
Total risk-based capital ratio		16.43	%		16.43	%		17.83	%		17.61	%		14.21	%
Tier 1 risk-based capital ratio		12.41	%		12.44	%		13.84	%		13.70	%		11.15	%
Common equity tier 1 capital ratio		10.12	%		10.14	%		11.23	%		11.16	%		9.21	%
Tier 1 leverage capital ratio		9.14	%		9.00	%		8.65	%		7.76	%		8.33	%
Banc of California
Total risk-based capital ratio		15.90	%		15.75	%		16.37	%		16.07	%		12.94	%
Tier 1 risk-based capital ratio		13.37	%		13.27	%		13.72	%		13.48	%		10.89	%
Common equity tier 1 capital ratio		13.37	%		13.27	%		13.72	%		13.48	%		10.89	%
Tier 1 leverage capital ratio		9.86	%		9.62	%		8.57	%		7.62	%		8.14	%

(1)	Capital information for March 31, 2024 is preliminary.

At March 31, 2024, immediately available cash and cash equivalents were $2.9 billion, a decrease of $2.3 billion from December 31, 2023. Combined with total available borrowing capacity of $12.6 billion and unpledged AFS securities of $1.4 billion, total available liquidity was $16.8 billion at the end of the first quarter.

9

CREDIT QUALITY

	March 31,			December 31,			September 30,			June 30,			March 31,
Asset Quality Information and Ratios	2024			2023			2023			2023			2023
	(Dollars in thousands)
Delinquent loans and leases held for investment:
30 to 89 days delinquent	$	178,594		$	113,307		$	49,970		$	57,428		$	144,431
90+ days delinquent		57,595			30,881			77,327			62,322			49,936
Total delinquent loans and leases	$	236,189		$	144,188		$	127,297		$	119,750		$	194,367
Total delinquent loans and leases to loans and leases held for investment		0.93	%		0.57	%		0.58	%		0.54	%		0.76	%
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases	$	145,981		$	62,527		$	125,396		$	104,886		$	87,124
90+ days delinquent loans and still accruing		-			11,750			-			-			-
Total nonperforming loans and leases ("NPLs")		145,981			74,277			125,396			104,886			87,124
Foreclosed assets, net		12,488			7,394			6,829			8,426			2,135
Total nonperforming assets ("NPAs")	$	158,469		$	81,671		$	132,225		$	113,312		$	89,259
Allowance for loan and lease losses	$	291,503		$	281,687		$	222,297		$	219,234		$	210,055
Allowance for loan and lease losses to NPLs		199.69	%		379.24	%		177.28	%		209.02	%		241.10	%
NPLs to loans and leases held for investment		0.57	%		0.29	%		0.57	%		0.47	%		0.34	%
NPAs to total assets		0.44	%		0.21	%		0.36	%		0.30	%		0.20	%

At March 31, 2024, total delinquent loans and leases were $236.2 million, compared to $144.2 million at December 31, 2023. The $92.0 million increase in total delinquent loans was due mostly to a $56.8 million increase in commercial real estate mortgage loans that were 30 to 89 days delinquent and a $35.1 million increase in other residential real estate mortgage loans that were 90 or more days delinquent. Total delinquent loans and leases as a percentage of total loans and leases increased to 0.93% at March 31, 2024, as compared to 0.57% at December 31, 2023.

At March 31, 2024, nonperforming assets were $158.5 million, or 0.44% of total assets, compared to $81.7 million, or 0.21% of total assets, as of December 31, 2023.

At March 31, 2024, nonperforming loans were $146.0 million, and included $66.7 million of CRE loans, $61.8 million of other residential loans (mostly Civic), $15.7 million of commercial and industrial loans, $1.0 million of multi-family loans, and $0.8 million of consumer loans. During the first quarter, nonperforming loans increased by $71.7 million due to additions of $90.9 million, offset partially by borrowers that became current of $12.8 million, payoffs and paydowns of $5.0 million, and net charge-offs of $1.4 million.

Nonperforming loans and leases as a percentage of total loans and leases increased to 0.57% at March 31, 2024 compared to 0.29% at December 31, 2023. Four CRE credits drove the majority of the increase to nonperforming loans during the period, which included 3 office properties and 1 retail property. Specific reserves were established for two office properties which contributed to the increase in the provision. The legacy Civic portfolio also contributed to the increase in both delinquencies and nonperforming loans. The nonperforming loan increase was driven mainly by the four CRE properties which represented 60% of the increase, Civic represented 29% of the increase, and SFR/consumer loans represented 7% of the increase.

10

At March 31, 2024, nonperforming assets included $12.5 million of other real estate owned, consisting entirely of single-family residences.

ALLOWANCE FOR CREDIT LOSSES - LOANS

	Three Months Ended
	March 31,			December 31,				March 31,
Allowance for Credit Losses - Loans	2024			2023				2023
	(Dollars in thousands)
Allowance for loan and lease losses
("ALLL"):
Balance at beginning of period	$	281,687		$	222,297			$	200,732
Initial ALLL on acquired PCD loans		-			25,623				-
Charge-offs		(5,014	)		(14,628	)			(10,397	)
Recoveries		3,830			1,395				1,220
Net charge-offs		(1,184	)		(13,233	)			(9,177	)
Provision for loan losses		11,000			47,000		(1)		18,500
Balance at end of period	$	291,503		$	281,687			$	210,055
Reserve for unfunded loan commitments
("RUC"):
Balance at beginning of period	$	29,571		$	29,571			$	91,071
(Negative provision) provision for credit losses		(1,000	)		-				(15,500	)
Balance at end of period	$	28,571		$	29,571			$	75,571
Allowance for credit losses ("ACL") -
Loans:
Balance at beginning of period	$	311,258		$	251,868			$	291,803
Initial ALLL on acquired PCD loans		-			25,623				-
Charge-offs		(5,014	)		(14,628	)			(10,397	)
Recoveries		3,830			1,395				1,220
Net charge-offs		(1,184	)		(13,233	)			(9,177	)
Provision for credit losses		10,000			47,000				3,000
Balance at end of period	$	320,074		$	311,258			$	285,626
ALLL to loans and leases held for investment		1.14	%		1.11	%			0.82	%
ACL to loans and leases held for investment		1.26	%		1.22	%			1.11	%
ACL to NPLs		219.26	%		419.05	%			327.84	%
ACL to NPAs		201.98	%		381.11	%			320.00	%
Annualized net charge-offs to average loans and leases		0.02	%		0.22	%			0.13	%

(1)	Includes $22.2 million initial provision related to non-PCD loans acquired during the period.

The allowance for credit losses, which includes the reserve for unfunded loan commitments, totaled $320.1 million, or 1.26% of total loans and leases, at March 31, 2024, compared to $311.3 million, or 1.22% of total loans and leases, at December 31, 2023. The $8.8 million increase in the allowance was due to a $10.0 million provision, offset partially by net charge-offs of $1.2 million. The ACL coverage of nonperforming loans was 219% at March 31, 2024 compared to 419% at December 31, 2023.

11

Net charge-offs were 0.02% of average loans and leases (annualized) for the first quarter, compared to 0.22% for the fourth quarter. The decrease in net charge-offs in the first quarter was due primarily to $5.3 million of charge-offs related to the transfer of Civic loans to held for sale in the fourth quarter.

Conference Call

The Company will host a conference call to discuss its first quarter 2024 financial results at 10:00 a.m. Pacific Time (PT) on Tuesday, April 23, 2024. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 1537279. 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 4374649.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $36 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through more than 90 full-service branches throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (the “Company”) with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

12

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

13

Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (310) 424-1230
Joe Kauder, (310) 844-5224
William Black, (919) 597-7466
Media Contact:
Debora Vrana, Banc of California
(213) 999-4141
Deb.Vrana@bancofcal.com
Source: Banc of California, Inc
14
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BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2024			2023			2023			2023			2023
	(Dollars in thousands)
ASSETS:
Cash and due from banks	$	199,922		$	202,427		$	182,261		$	208,300		$	218,830
Interest-earning deposits in financial institutions		2,885,306			5,175,149			5,887,406			6,489,847			6,461,306
Total cash and cash equivalents		3,085,228			5,377,576			6,069,667			6,698,147			6,680,136
Securities available-for-sale		2,286,682			2,346,864			4,487,172			4,708,519			4,848,607
Securities held-to-maturity		2,291,984			2,287,291			2,282,586			2,278,202			2,273,650
FRB and FHLB stock		129,314			126,346			17,250			17,250			147,150
Total investment securities		4,707,980			4,760,501			6,787,008			7,003,971			7,269,407
Loans held for sale		80,752			122,757			188,866			478,146			2,796,208
Gross loans and leases held for investment		25,527,075			25,534,730			21,969,789			22,311,292			25,770,912
Deferred fees, net		(44,006	)		(45,043	)		(48,843	)		(53,082	)		(98,531	)
Total loans and leases held for investment, net of deferred fees		25,483,069			25,489,687			21,920,946			22,258,210			25,672,381
Allowance for loan and lease losses		(291,503	)		(281,687	)		(222,297	)		(219,234	)		(210,055	)
Total loans and leases held for investment, net		25,191,566			25,208,000			21,698,649			22,038,976			25,462,326
Equipment leased to others under operating leases		339,925			344,325			352,330			380,022			399,972
Premises and equipment, net		144,912			146,798			50,236			57,078			60,358
Bank owned life insurance		341,806			339,643			207,946			206,812			207,402
Goodwill		198,627			198,627			-			-			-
Intangible assets, net		157,226			165,477			24,192			26,581			28,970
Deferred tax asset, net		738,373			739,111			506,248			426,304			342,557
Other assets		1,094,383			1,131,249			992,691			1,021,213			1,055,645
Total assets	$	36,080,778		$	38,534,064		$	36,877,833		$	38,337,250		$	44,302,981
LIABILITIES:
Noninterest-bearing deposits	$	7,833,608		$	7,774,254		$	5,579,033		$	6,055,358		$	7,030,759
Interest-bearing deposits		21,058,799			22,627,515			21,019,648			21,841,725			21,156,802
Total deposits		28,892,407			30,401,769			26,598,681			27,897,083			28,187,561
Borrowings		2,139,498			2,911,322			6,294,525			6,357,338			11,881,712
Subordinated debt		937,717			936,599			870,896			870,378			868,815
Accrued interest payable and other liabilities		709,722			893,609			714,454			679,256			593,416
Total liabilities		32,679,344			35,143,299			34,478,556			35,804,055			41,531,504
STOCKHOLDERS' EQUITY:
Preferred stock		498,516			498,516			498,516			498,516			498,516
Common stock		1,583			1,577			1,231			1,233			1,232
Class B non-voting common stock		5			5			-			-			-
Non-voting common stock equivalents		101			108			-			-			-
Additional paid-in-capital		3,827,777			3,840,974			2,798,611			2,799,357			2,792,536
Retained (deficit) earnings		(490,112	)		(518,301	)		(25,399	)		7,892			215,253
Accumulated other comprehensive loss, net		(436,436	)		(432,114	)		(873,682	)		(773,803	)		(736,060	)
Total stockholders’ equity		3,401,434			3,390,765			2,399,277			2,533,195			2,771,477
Total liabilities and stockholders’ equity	$	36,080,778		$	38,534,064		$	36,877,833		$	38,337,250		$	44,302,981
Common shares outstanding (1)		169,013,629			168,959,063			78,806,969			78,939,024			78,988,424

(1)	Common shares outstanding include non-voting common equivalents that are participating securities.
15
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BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
	2024			2023			2023
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	395,511		$	346,308		$	430,685
Investment securities		34,303			41,280			44,237
Deposits in financial institutions		58,936			79,652			42,866
Total interest income		488,750			467,240			517,788
Interest expense:
Deposits		194,807			207,760			155,892
Borrowings		38,124			92,474			69,122
Subordinated debt		16,671			15,955			13,502
Total interest expense		249,602			316,189			238,516
Net interest income		239,148			151,051			279,272
Provision for credit losses		10,000			47,000			3,000
Net interest income after provision for credit losses		229,148			104,051			276,272
Noninterest income:
Service charges on deposit accounts		4,705			4,562			3,573
Other commissions and fees		8,142			8,860			10,344
Leased equipment income		11,716			12,369			13,857
(Loss) gain on sale of loans and leases		(448	)		(3,526	)		2,962
Loss on sale of securities		-			(442,413	)		-
Dividends and gains (losses) on equity investments		3,068			8,138			1,098
Warrant income (loss)		178			(173	)		(333	)
LOCOM HFS adjustment		330			3,175			-
Other income		6,125			8,606			4,890
Total noninterest income (loss)		33,816			(400,402	)		36,391
Noninterest expense:
Compensation		92,236			89,354			88,476
Occupancy		17,968			15,925			15,067
Information technology and data processing		15,418			13,099			12,979
Other professional services		5,075			2,980			6,073
Insurance and assessments		20,461			60,016			11,717
Intangible asset amortization		8,404			4,230			2,411
Leased equipment depreciation		7,520			7,447			9,375
Acquisition, integration and reorganization costs		-			111,800			8,514
Customer related expense		30,919			45,826			24,005
Loan expense		4,491			4,446			6,524
Goodwill impairment		-			-			1,376,736
Other expense		8,026			8,515			11,126
Total noninterest expense		210,518			363,638			1,573,003
Earnings (loss) before income taxes		52,446			(659,989	)		(1,260,340	)
Income tax expense (benefit)		14,310			(177,034	)		(64,916	)
Net earnings (loss)		38,136			(482,955	)		(1,195,424	)
Preferred stock dividends		9,947			9,947			9,947
Net earnings (loss) available to common and equivalent stockholders	$	28,189		$	(492,902	)	$	(1,205,371	)
Basic and diluted earnings (loss) per common share (1)	$	0.17		$	(4.55	)	$	(15.56	)
Basic and diluted weighted average number of common shares outstanding (1)		168,972			108,290			77,468

(1)	Common shares include non-voting common equivalents that are participating securities.
16
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BANC OF CALIFORNIA, INC.

SELECTED FINANCIAL DATA

(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
Profitability and Other Ratios	2024			2023			2023
Return on average assets ("ROAA")(1)		0.41	%		(5.09	)%		(11.34	)%
Adjusted ROAA (1)(2)		0.45	%		(0.56	)%		0.85	%
Return on average equity (1)		4.52	%		(68.49	)%		(121.24	)%
Return on average tangible common equity (1)(2)		5.45	%		(87.95	)%		14.45	%
Dividend payout ratio (3)		58.82	%		(2.42	)%		(1.61	)%
Average yield on loans and leases (1)		6.23	%		5.82	%		6.14	%
Average yield on interest-earning assets (1)		5.68	%		5.23	%		5.35	%
Average cost of interest-bearing deposits (1)		3.60	%		3.80	%		2.91	%
Average total cost of deposits (1)		2.66	%		2.94	%		1.98	%
Average cost of interest-bearing liabilities (1)		3.92	%		4.51	%		3.47	%
Average total cost of funds (1)		3.02	%		3.68	%		2.54	%
Net interest spread		1.76	%		0.72	%		1.88	%
Net interest margin (1)		2.78	%		1.69	%		2.89	%
Noninterest income to total revenue (4)		12.39	%		160.58	%		11.53	%
Adjusted noninterest income to adjusted total revenue (2)(4)		12.39	%		21.76	%		11.53	%
Noninterest expense to average total assets (1)		2.26	%		3.83	%		14.92	%
Adjusted noninterest expense to average total assets (1)(2)		2.20	%		2.31	%		1.78	%
Average loans and leases to average deposits		86.65	%		84.34	%		89.39	%
Average investment securities to average total assets		12.58	%		16.01	%		16.81	%
Average stockholders' equity to average total assets		9.03	%		7.43	%		9.35	%

(1)	Annualized.
(2)	Non-GAAP measure.
---	---
(3)	Ratio calculated by dividing dividends declared per common and equivalent share by <br><br> <br> <br>basic earnings per common and equivalent share.
---	---
(4)	Total revenue equals the sum of net interest income and noninterest income.
---	---
17
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BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

	Three Months Ended
	March 31, 2024							December 31, 2023							March 31, 2023
			Interest		Average					Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Cost			Balance		Expense		Cost			Balance		Expense		Cost
	(Dollars in thousands)
Assets:
Loans and
leases (1)(2)(3)	$	25,518,700	$	395,511		6.23	%	$	23,608,246	$	346,308		5.82	%	$	28,583,265	$	433,029		6.14	%
Investment securities		4,721,556		34,303		2.92	%		6,024,737		41,280		2.72	%		7,191,362		44,237		2.49	%
Deposits in financial institutions		4,374,968		58,936		5.42	%		5,791,739		79,652		5.46	%		3,682,228		42,866		4.72	%
Total interest-earning assets (1)		34,615,224		488,750		5.68	%		35,424,722		467,240		5.23	%		39,456,855		520,132		5.35	%
Other assets		2,925,563							2,215,665							3,311,859
Total assets	$	37,540,787						$	37,640,387						$	42,768,714
Liabilities and
Stockholders' Equity:
Interest checking	$	7,883,177		61,549		3.14	%	$	7,296,234		60,743		3.30	%	$	7,089,102		55,957		3.20	%
Money market		5,737,837		41,351		2.90	%		5,758,074		44,279		3.05	%		8,932,059		56,224		2.55	%
Savings		2,036,129		18,030		3.56	%		1,696,222		16,446		3.85	%		597,287		599		0.41	%
Time		6,108,321		73,877		4.86	%		6,915,504		86,292		4.95	%		5,123,955		43,112		3.41	%
Total interest-bearing deposits		21,765,464		194,807		3.60	%		21,666,034		207,760		3.80	%		21,742,403		155,892		2.91	%
Borrowings		2,892,406		38,124		5.30	%		5,229,425		92,474		7.02	%		5,289,429		69,122		5.30	%
Subordinated debt		937,005		16,671		7.16	%		894,219		15,955		7.08	%		867,637		13,502		6.31	%
Total interest-bearing liabilities		25,594,875		249,602		3.92	%		27,789,678		316,189		4.51	%		27,899,469		238,516		3.47	%
Noninterest-bearing demand deposits		7,685,027							6,326,511							10,233,434
Other liabilities		870,273							726,414							637,124
Total liabilities		34,150,175							34,842,603							38,770,027
Stockholders' equity		3,390,612							2,797,784							3,998,687
Total liabilities and stockholders' equity	$	37,540,787						$	37,640,387						$	42,768,714
Net interest income (1)			$	239,148						$	151,051						$	281,616
Net interest spread (1)						1.76	%						0.72	%						1.88	%
Net interest margin (1)						2.78	%						1.69	%						2.89	%
Total deposits (4)	$	29,450,491	$	194,807		2.66	%	$	27,992,545	$	207,760		2.94	%	$	31,975,837	$	155,892		1.98	%
Total funds (5)	$	33,279,902	$	249,602		3.02	%	$	34,116,189	$	316,189		3.68	%	$	38,132,903	$	238,516		2.54	%
(1)	Tax equivalent.
---	---
(2)	Includes net loan discount accretion of $32.5 million and $15.7 million for the three months ended March 31,<br> 2024 <br><br> <br> <br>December 31, 2023 and net loan premium amortization of $2.8 million for the three months ended March 31, 2023.
---	---
(3)	Includes tax-equivalent adjustments of $0.0 million, $0.0 million, and $2.3 million for the three months ended<br> March 31, 2024, <br><br> <br> <br>December 31, 2023, and March 31, 2023 related to tax-exempt income on loans.<br> <br>The federal statutory tax rate utilized was 21%.
---	---
(4)	Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost<br> of total deposits is <br><br> <br> <br>calculated as annualized interest expense on total deposits divided by average total deposits.
---	---
(5)	Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost<br> of total funds is <br><br> <br> <br>calculated as annualized total interest expense divided by average total funds.
---	---
18
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BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

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

Tangible assets, tangible equity, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest income to adjusted total revenue, adjusted noninterest expense to average total assets, adjusted net earnings (loss) available to common stockholders, adjusted diluted earnings (loss) per diluted common share, and adjusted return on average assets (“ROAA”) constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total stockholders’ equity. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets, goodwill impairment, and any unusual one-time items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Adjusted net earnings (loss) is calculated by adjusting net earnings (loss) by unusual, one-time items. ROAA is calculated by dividing annualized net earnings (loss) by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings (loss) by average assets.

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.

19

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Tangible Common Equity to
Tangible Assets and Tangible	March 31,			December 31,			September 30,			June 30,			March 31,
Book Value Per Common Share	2024			2023			2023			2023			2023
	(Dollars in thousands, except per share amounts)
Stockholders' equity	$	3,401,434		$	3,390,765		$	2,399,277		$	2,533,195		$	2,771,477
Less: Preferred stock		498,516			498,516			498,516			498,516			498,516
Total common equity		2,902,918			2,892,249			1,900,761			2,034,679			2,272,961
Less: Goodwill and Intangible assets		355,853			364,104			24,192			26,581			28,970
Tangible common equity	$	2,547,065		$	2,528,145		$	1,876,569		$	2,008,098		$	2,243,991
Total assets	$	36,080,778		$	38,534,064		$	36,877,833		$	38,337,250		$	44,302,981
Less: Goodwill and Intangible assets		355,853			364,104			24,192			26,581			28,970
Tangible assets	$	35,724,925		$	38,169,960		$	36,853,641		$	38,310,669		$	44,274,011
Total stockholders' equity to total assets		9.43	%		8.80	%		6.51	%		6.61	%		6.26	%
Tangible common equity to tangible assets		7.13	%		6.62	%		5.09	%		5.24	%		5.07	%
Book value per common share (1)	$	17.18		$	17.12		$	24.12		$	25.78		$	28.78
Tangible book value per common share (2)	$	15.07		$	14.96		$	23.81		$	25.44		$	28.41
Common shares outstanding (3)		169,013,629			168,959,063			78,806,969			78,939,024			78,988,424

(1)	Total common equity divided by common shares outstanding.
(2)	Tangible common equity divided by common shares outstanding.
---	---
(3)	Common shares outstanding include non-voting common equivalents that are participating securities.
---	---
20
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BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Return on Average Tangible	Three Months Ended
Common Equity ("ROATCE")	March 31,			December 31,			March 31,
and Adjusted ROATCE	2024			2023			2023
	(Dollars in thousands)
Net earnings (loss)	$	38,136		$	(482,955	)	$	(1,195,424	)
Earnings (loss) before income taxes	$	52,446		$	(659,989	)	$	(1,260,340	)
Add: Intangible asset amortization		8,404			4,230			2,411
Add: Goodwill impairment		-			-			1,376,736
Adjusted earnings (loss) before income taxes used for ROATCE		60,850			(655,759	)		118,807
Adjusted income tax expense (1)		16,612			(175,743	)		33,741
Adjusted net earnings (loss) for ROATCE		44,238			(480,016	)		85,066
Less: Preferred stock dividends		9,947			9,947			9,947
Adjusted net earnings (loss) available to common and equivalent stockholdersfor ROATCE	$	34,291		$	(489,963	)	$	75,119
Adjusted earnings (loss) before income taxes used for ROATCE	$	60,850		$	(655,759	)	$	118,807
Add: FDIC special assessment		4,814			32,746			-
Add: Loss on sale of securities		-			442,413			-
Add: Acquisition, integration, and reorganization costs		-			111,800			8,514
Adjusted earnings (loss) before income taxes used for adjusted ROATCE		65,664			(68,800	)		127,321
Adjusted income tax expense (1)		17,926			(18,438	)		36,159
Adjusted net earnings (loss) for adjusted ROATCE		47,738			(50,362	)		91,162
Less: Preferred stock dividends		9,947			9,947			9,947
Adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE	$	37,791		$	(60,309	)	$	81,215
Average stockholders' equity	$	3,390,612		$	2,797,784		$	3,998,687
Less: Average intangible assets		360,680			89,041			1,391,857
Less: Average preferred stock		498,516			498,516			498,516
Average tangible common equity	$	2,531,416		$	2,210,227		$	2,108,314
Return on average equity (2)		4.52	%		(68.49	)%		(121.24	)%
ROATCE (3)		5.45	%		(87.95	)%		14.45	%
Adjusted ROATCE (4)		6.00	%		(10.83	)%		15.62	%

(1)	Effective tax rates of 27.3% and 26.8% used for the three months ended March 31, 2024 <br><br> <br> <br>and December 31, 2023. Adjusted effective tax rate of 28.4% used to normalize the effect <br> <br>of goodwill impairment for the three months ended March 31, 2023.
(2)	Annualized net earnings (loss) divided by average stockholders' equity.
---	---
(3)	Annualized adjusted net earnings (loss) available to common and equivalent stockholders <br><br> <br> <br>for ROATCE divided by average tangible common equity.
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(4)	Annualized adjusted net earnings (loss) available to common and equivalent stockholders <br><br> <br> <br>for adjusted ROATCE divided by average tangible common equity.
---	---
21
---

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Adjusted Net Earnings, Net Earnings	Three Months Ended
Available to Common and Equivalent	March 31,			December 31,			March 31,
Stockholders, Diluted EPS, and ROAA	2024			2023			2023
	(In thousands, except per share amounts)
Net earnings (loss)	$	38,136		$	(482,955	)	$	(1,195,424	)
Earnings (loss) before income taxes	$	52,446		$	(659,989	)	$	(1,260,340	)
Add: FDIC special assessment		4,814			32,746			-
Add: Loss on sale of securities		-			442,413			-
Add: Acquisition, integration, and reorganization costs		-			111,800			8,514
Add: Goodwill impairment		-			-			1,376,736
Adjusted (loss) earnings before income taxes		57,260			(73,030	)		124,910
Adjusted income tax expense (1)		15,632			(19,572	)		35,474
Adjusted net earnings (loss)		41,628			(53,458	)		89,436
Less: Preferred stock dividends		(9,947	)		(9,947	)		(9,947	)
Adjusted net earnings (loss) available to common and equivalent stockholders	$	31,681		$	(63,405	)	$	79,489
Weighted average common shares outstanding		168,972			108,290			77,468
Diluted earnings (loss) per common share	$	0.17		$	(4.55	)	$	(15.56	)
Adjusted diluted earnings (loss) per common share (2)	$	0.19		$	(0.59	)	$	1.03
Average total assets	$	37,540,787		$	37,640,387		$	42,768,714
Return on average assets ("ROAA") (3)		0.41	%		(5.09	)%		(11.34	)%
Adjusted ROAA (4)		0.45	%		(0.56	)%		0.85	%

(1)	Effective tax rates of 27.3% and 26.8% used for the three months ended March 31, 2024 <br> <br>and December 31, 2023. Adjusted effective tax rate of 28.4% used to normalize the effect<br><br> <br>of goodwill impairment for the three months ended March 31, 2023.
(2)	Adjusted net earnings (loss) available to common and equivalent stockholders divided by <br> <br>weighted average common shares outstanding.
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(3)	Annualized net earnings (loss) divided by average assets.
---	---
(4)	Annualized adjusted net earnings (loss) divided by average assets.
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22
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BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Adjusted Noninterest Income to	Three Months Ended
Adjusted Total Revenue and Adjusted	March 31,			December 31,			March 31,
Noninterest Expense to Average Assets	2024			2023			2023
	(Dollars in thousands)
Net interest income	$	239,148		$	151,051		$	279,272
Noninterest income (loss)		33,816			(400,402	)		36,391
Total revenue	$	272,964		$	(249,351	)	$	315,663
Noninterest income (loss)	$	33,816		$	(400,402	)	$	36,391
Add: Loss on sale of securities		-			442,413			-
Adjusted noninterest income		33,816			42,011			36,391
Net interest income		239,148			151,051			279,272
Adjusted total revenue	$	272,964		$	193,062		$	315,663
Noninterest expense	$	210,518		$	363,638		$	1,573,003
Less: FDIC special assessment		(4,814	)		(32,746	)		-
Less: Acquisition, integration, and reorganization costs		-			(111,800	)		(8,514	)
Less: Goodwill impairment		-			-			(1,376,736	)
Adjusted noninterest expense	$	205,704		$	219,092		$	187,753
Average total assets	$	37,540,787		$	37,640,387		$	42,768,714
Noninterest income (loss) to total revenue		12.39	%		160.58	%		11.53	%
Adjusted noninterest income to adjusted total revenue		12.39	%		21.76	%		11.53	%
Noninterest expense to average total assets		2.26	%		3.83	%		14.92	%
Adjusted noninterest expense to average total assets		2.20	%		2.31	%		1.78	%
23
---

Exhibit 99.2

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

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. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (the “Company”) with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law. Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; and in the case of our recent acquisition of PacWest Bancorp (“PacWest”), reputational risk, regulatory risk and potential adverse reactions of the Company's or PacWest's customers, suppliers, vendors, employees or other business partners; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in this press release and from time to time in other documents that we file with or furnish to the SEC. First Quarter 2024 Earnings | 2

First full quarter results post merger reflect benefits of balance sheet restructuring and initial progress Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Pre-tax Pre-provision income. Please see reconciliation tables in appendix for additionall detail. Average NIM for the month of December 2023. Wholesale funding defined as borrowings plus brokered time deposits. 1Q24 Highlights 1Q24 4Q23 Operating Results PTPP / Adjusted PTPP(1,2) EPS / Adjusted EPS(1) ROAA / Adjusted ROAA(1) ROATCE / Adjusted ROATCE(1) NIE Ratio / Adjusted NIE Ratio(1) NIM ($613.0) / ($26.0)mm ($4.55) / ($0.59) (5.09%) / (0.56%) (88.0%) / (10.8%) 3.83% / 2.31% 2.15%(3) $62.4 / $67.3mm $0.17 / $0.19 0.41% / 0.45% 5.5% / 6.0% 2.26% / 2.20% 2.78% Cash / assets Wholesale funding / assets(4) Deposits / total funding NIB ratio Balance Sheet Results 14.0% 16.6% 91.3% 25.6% 8.6% 15.4% 93.1% 27.1% Robust Capital CET 1 Total Capital BVPS TBVPS(1) 10.1% 16.4% $17.12 $14.96 10.1% 16.4% $17.18 $15.07 Strong Credit Reserves ACL ratio NCOs 1.22% 0.22% 1.26% 0.02% Increased profitability largely driven by expanding NIM and lower operating expenses NIM improvement reflects ongoing actions to lower total cost of funds Right-sized cash levels Growing NIB and core deposit ratios Lower reliance on wholesale funding Growing capital and tangible book levels Continued to strengthen reserve levels and experienced lower charge-offs On track to achieve 4Q24 profitability targets of ~1.1% ROAA and ~13% ROTCE First Quarter 2024 Earnings | 3

First Quarter 2024 Earnings Results First Quarter 2024 Earnings | 4 Increased earnings driven by NIM expansion and lower operating expenses Net interest income increased $88 million, or 58%: Interest income increase due to the full-quarter impact of the combined loan portfolio Interest expense reduction driven by 4Q23 and 1Q24 balance sheet restructuring activities and lower deposit costs Noninterest income stable when adjusted for 4Q23 nonrecurring items, including impact of legal recoveries Operating expense reduction reflects the early impact of the company’s integration and cost reduction initiatives 4Q23 1Q24 -0.28% 4Q23 1Q24 -0.20% 4Q23 1Q24 -0.66% Cost of funds Cost of deposits Cost of interest-bearing deposits Note: Periods prior to 4Q23 represent PACW standalone.

First Quarter 2024 Earnings | 5 Management Outlook Q424 4Q24 run-rate target guidance remains unchanged from 2023 year end Profitability expectations currently assume two 25 bps Fed funds rate reductions in 2024 (one in 3Q24 and one in 4Q24), subject to market volatility Execution of management strategy to reduce both interest expense and operating expense Assumes generally flat loan levels at growing average yield Does not assume a significant recession or credit event Assumptions Continue to improve overall profitability through execution of strategy and further optimization of the balance sheet. Balance sheet size expected to remain stable; however, will opportunistically look to strengthen our balance sheet and maximize profitability depending on economic developments. Execute on savings initiatives including systems conversions, facility exits, process improvements, contract renegotiations and cost eliminations. Grow NIM through lowering the avg cost of funds, increasing yields on avg earning assets, and lowering operating expenses.

Core systems conversions Execution on consolidation of facilities Realize full operational expense savings Continued reduction of interest expense and improvement of deposit mix Integration roadmap update Items to be completed in 2Q24 - 4Q24 Closed merger with PacWest Closed on $400mm common equity with merger Retained key employees and clients Sold $6 billion assets (3.6% yield) Paid down $10 billion wholesale funding (~5% cost) Completed announced balance sheet restructuring and finalized plan for integration Partial cost savings realized       3Q 4Q 4Q+ 4Q+ Target Strong execution and achievement of deal closing timeline creates opportunity to complete integration and realize full cost savings in 2024  Accomplished since announcement of deal First Quarter 2024 Earnings | 6

Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. Wholesale funding defined as borrowings plus brokered time deposits. First Quarter 2024 Earnings | 7 Balance Sheet Repositioning Continues Increased balance sheet efficiency with improved deposit mix and lower wholesale funding Excess 4Q23 liquidity used to pay down high cost wholesale funding sources, including brokered deposits and a portion of BTFP borrowings Right-sized cash levels continue to provide sufficient liquidity Deposit mix shift as company focuses on growing noninterest-bearing deposit Core loan portfolio growth offset by run-off of discontinued portfolios resulting in stable total loans Note: Periods prior to 4Q23 represent PACW standalone.

Net Interest Income and Net Interest Margin Expansion NIM expanded 109 bps to 2.78% NII increased $88 million driven by: Borrowings costs decreased 126 bps: +$54mm Loan yields increased 41 bps: +$49mm Interest bearing deposits costs decreased 20 bps: +$13mm Securities balances decreased, partly offset by a 20 bps increase in yields: ($7mm) Lower cash balances: ($21mm) 1Q 2024 Highlights First Quarter 2024 Earnings | 8 1.45% $130.7 3Q23 1.69% $151.0 4Q23 2.78% $239.1 1Q24 Net Interest Income (NII) ($M) and Net Interest Margin (NIM) Impact to NII ($M) from cumulative change in yields, rates and mix 4Q23 NII +$54.4 Borrowings +$49.2 Loans +$13.0 Deposits -$7.0 Securities -$21.4 Cash / Other EA 1Q24 NII $151.0 $239.1 Lower funding costs and improved asset yields and mix drive NII and NIM expansion 1.43% $41.5 Sep ’23 2.15% $69.4 Dec ’23 2.82% $80.9 Mar ’24 NIM NII Quarter Month Note: Periods prior to 4Q23 represent PACW standalone.

Funding Cost Reduction Actions NIB and IB deposit composition trends reflects results of balance sheet restructuring and post-merger community bank-focused strategy Lower deposit costs reflects the paydowns of higher cost brokered deposits, increased NIB % and actions taken to reduce IB deposit costs Strategy to pay down higher cost wholesale funding as it matures and replace it with lower-cost funding sources beginning to gain momentum 1Q24 Highlights First Quarter 2024 Earnings | 9 3Q23 Improving Funding Mix(1) Ongoing interest expense reduction results from focused strategy to improve deposit mix and reprice CDs lower 4Q23 1Q24 NIB Deposits Interest-bearing deposits Brokered CDs Borrowings 3Q23 2.94% 7.02% 4.51% 4Q23 1Q24 Total interest-bearing liabilities Total borrowings Total deposits Reduced Cost of Liabilities Note: Periods prior to 4Q23 represent PACW standalone. Excludes subordinated debt and accrued interest payable and other liabilities. % of Total Funding(1)

Excludes gain (loss) on sale of securities and loans. Excludes nonrecurring legal recovery of $14.5mm. Excludes nonrecurring legal recovery of $7.6mm and elevated CRA-related fair value gain of $3.9mm. Noninterest IncomeComposition Consistent noninterest income, adjusted for nonrecurring items including legal recoveries Lower lease equipment income reflects lower early lease buyouts and is offset by across the board growth in most other categories Other income growth in 1Q24 was driven mainly by the net impact of fair value marks relative to 4Q23 Other includes revenue from BOLI, warrants, fair value mark adjustments and other miscellaneous gains or losses 1Q 2024 Highlights First Quarter 2024 Earnings | 10 3Q23 4Q23 1Q24 $45.7 $45.5 $34.3 Other Income Dividends and Gains on Equity Investments Leased Equipment Income Loan and Card Fees Deposit Fees Nonrecurring Legal Recoveries and Gains ($ in millions) $31.2mm(2) $34.0mm(3) Noninterest income(1) (excl. nonrecurring items in 4Q23) remains consistent and reflects diversified fee sources Note: Periods prior to 4Q23 represent PACW standalone.

Excludes merger and acquisition expenses. 4Q23 NIE / avg. assets ratio is calculated by dividing $251.8 million by average assets of $37.6 billion. 1Q24 NIE / avg. assets is calculated by dividing $210.5 million by average assets of $37.5 billion. Normalized expenses adjusted to include legacy BANC expenses for a full quarter and adjust incentive compensation to target. Expense Reductions 4Q23 GAAP financials include only one month of legacy BANC expenses, and accordingly, we normalized December expense levels for QoQ comparison “4Q23 normalized” expenses down approximately $73 million from 4Q23, reflecting the impact of efficiency actions taken to date Further expense reductions expected through 4Q24 resulting from systems conversions, facility exits, process improvements and cost eliminations 1Q24 ending headcount down 350 FTE to 2,205 FTE since the announcement date 1Q24 and 4Q23 insurance & assessments included an FDIC special assessment of $4.8 million and $32.8 million, respectively 1Q 2024 Highlights Focus on operating expense reductions to continue through 4Q24 (excludes merger-related expenses) 4Q23 Expenses $39.6 Regulatory $14.9 Customer Related $13.2 Intangible Amort / Other 1Q24 Expenses $251.8 $210.5 NIE/Avg. Assets NIE/Avg. Assets First Quarter 2024 Earnings | 11 4Q23 Normalized(2) expenses illustrates a hypothetical full quarter reflecting the combined company 4Q23 to 1Q24 Expense Walk (1) (1) (1) Note: Periods prior to 4Q23 represent PACW standalone.

Building a strong commercial deposit franchise Focus on NIB deposits resulted in 3% annualized growth in 1Q24, and NIB deposits grew to 27.1% of total deposits Checking increased 1.4% to 27.1% of total deposits Deposit spot rate of 2.54% at 3/31/24 compared to 1Q24 average cost of deposits of 2.66% Decline in average cost of funds and widening spread against Fed funds rate Highlights Focus on relationship banking that generates low-cost commercial deposits First Quarter 2024 Earnings | 12 Management has a track record of successful deposit strategy execution Average Fed Funds Rate Average Cost of Deposits 3Q23 4Q23 1Q24 CDs Brokered CDs Money Market & Savings Interest-bearing Checking Noninterest-bearing Note: Periods prior to 4Q23 represent PACW standalone.

NIB Deposit Growth is a Strategic Lever Enterprise-wide focus Deposit incentive programs, including competitions and leaderboards RM performance goals include specific NIB targets Ensure existing and new relationships have appropriate deposit balances with the bank Line of business-specific approach to NIB growth and new customer acquisition Highlights First Quarter 2024 Earnings | 13 Consistently generate new low-cost commercial deposit relationships and accounts 4Q23 1Q24 $205 $308 New NIB Business Deposits ($ millions) New NIB Business Deposits Accounts Robust deposit gathering engine designed to build low-cost deposit base

Diversified Loan Portfolio Core portfolio grew 4% annualized, offset by discontinued portfolio run-off Core portfolio comprises 86% of total loans with low NPL and DQ ratios Significant repricing opportunity in multifamily portfolio as loans mature Highlights High-quality relationship-based core portfolio is well diversified with strong metrics First Quarter 2024 Earnings | 14 Discontinued Areas 2% Warehouse 3% SBA 3% Fund Finance 3% Equipment Lending Venture Lending C&I Residential / Consumer Construction CRE MF Existing portfolios have very low historical loss rates Note: Wtd. Avg. Rate excludes loan fees and accretion.

California-Centric CRE Portfolio Over 70% of CRE portfolio located in California Low weighted average LTV of 54.5% Other includes mobile homes, self storage, gas stations, special use, school, place of worship and restaurants Highlights High quality CRE portfolio has low weighted-average LTV CRE is well diversified across multiple industries First Quarter 2024 Earnings | 15 5.1% Office Industrial Retail Hotel Health Facility Mixed Use Other Note: CRE excludes government guaranteed CRE collateralized SBA loans. 84% of office collateral located in California, 6% in Colorado and 10% in other states All NPLs are reserved based on individual evaluations Reserve ratio of 2.56% on collectively evaluated loans

First Quarter 2024 Earnings | 16 Asset quality ratios and trends ACL coverage ratio increased from 1.22% to 1.26% Targeted focus around office loans to ensure loans are reserved with appropriate conservatism Inflows to classified loans, nonperforming loans and delinquencies were driven primarily by CIVIC loans and CRE office loans secured by office and retail properties Approximately 40% of delinquencies are CIVIC and 10% are SFR / Consumer, detail on page 14 CIVIC loans are generally low LTV and well-collateralized Highlights Healthy and increasing credit reserve levels, credit quality metrics negatively impacted by CIVIC “noise” $285.6 1.11% 1Q23 $256.8 1.15% 2Q23 $251.9 1.15% 3Q23 $311.3 1.22% 4Q23 $320.1 1.26% 1Q24 ACL ACL / Total Loans $87.1 0.34% 1Q23 $104.9 0.47% 2Q23 $125.4 0.57% 3Q23 $74.3 0.29% 4Q23 $146.0 0.57% 1Q24 NPLs NPLs/Total Loans-HFI $132.4 0.52% 1Q23 $211.9 0.95% 2Q23 $211.1 0.96% 3Q23 $228.4 0.90% 4Q23 $366.8 1.44% 1Q24 Classified Classified Loans / Total Loans $194.4 0.76% 1Q23 $119.8 0.54% 2Q23 $127.3 0.58% 3Q23 $144.2 0.57% 4Q23 $236.2 0.93% 1Q24 Delinquencies Delinquencies /Total Loans Delinquencies ($M) Classified Loans ($M) ACL / Total Loans ($M) Nonperforming Loans (NPLs) ($M) Note: Periods prior to 4Q23 represent PACW standalone.

Credit Migration Highlights First Quarter 2024 Earnings | 17 Note: CRE excludes government guaranteed CRE collateralized SBA loans. Nonperforming loans 4Q23 to 1Q24 walk Delinquent loans 4Q23 to 1Q24 walk Increase in NPLs driven by four CRE loans and normally recurring “noise” in the discontinued CIVIC portfolio CRE migration related primarily to 4 loans, 3 office and 1 retail CRE portfolio exposure proactively mitigated through specific reserves in 1Q24, combined with low LTVs and personal guarantors CIVIC loans have low to moderate loan to value ratios

1Q24 provision increases ACL coverage ratio Allowance for Credit Losses Walk ACL increased by $8.8 million due to $10.0 million provision, partially offset by net charge-offs of $1.2 million Provision increase was driven by qualitative reserves related to loans secured by office properties and quantitative reserves due to higher nonaccrual and classified loans 1Q24 charge-offs driven mainly by transfer of CIVIC loans of $11 million to the HFS portfolio Overall credit reserves include the ACL and purchase accounting credit marks on the legacy BOC portfolio, as well as the benefit of certain credit-linked notes related to the SFR portfolio First Quarter 2024 Earnings | 18 1.22% 1.26% ACL (12/31/23) $(1.2) Net Charge-offs $10.0 Provision ACL (3/31/24) ($ in millions) Total ACL coverage ratio strengthened from 1.22% to 1.26% Highlights

Strong Capital Base CET 1 ratio of 10.12% inclusive of: Loss on previously executed sales of loans and securities Impact of fair value marks and merger expenses Special FDIC assessment All regulatory capital ratios in excess of minimum “well-capitalized” levels Focus on building capital levels for strength and flexibility First Quarter 2024 Earnings | 19 4Q23 1Q24 Common Equity Tier 1 (CET 1) 4Q23 1Q24 Tangible Common Equity / Tangible Assets Highlights 1Q24 capital ratios are preliminary. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.

High-quality securities portfolio provides upside Securities Portfolio Detail Average securities yield increased 20 bps quarter over quarter, driven by the impact of securities sales Stable securities portfolio with significant repricing opportunity Excess cash balance creates opportunity to build optimal securities portfolio over time Portfolio Profile Composition Credit Rating Average Portfolio Balances & Yields 2% Private Label RMBS CLO Corporates Gov’t & AGC Munis 3% 0% 5% 1% AAA AA A BB BBB Not Rated $6.9 2.63% 3Q23 $6.0 2.72% 4Q23 $4.7 2.92% 1Q24 Average Balance ($ in billions) Yield First Quarter 2024 Earnings | 20 Highlights Note: Periods prior to 4Q23 represent PACW standalone. Reflects fair value for AFS securities and amortized cost for HTM securities. Excludes $1.5 million loan loss reserve on HTM securities.

High Level of Available Liquidity Total available primary liquidity of $4.3 billion, including unpledged AFS securities of $1.4 billion Total available primary and secondary liquidity of $16.8 billion Uninsured and uncollateralized deposits of $7.1 billion, which represents only 24.5% of total deposits Total available primary and secondary liquidity was 2.4x uninsured and uncollateralized deposits Highlights First Quarter 2024 Earnings | 21 Maintain high levels of primary and secondary liquidity as prudent risk management (1) (2) Net of haircut as of March 31, 2024. No remaining borrowing capacity shown, program was discontinued March 2024

First Quarter 2024 Earnings | 22 California-based commercial bank with national reach and select specialty business lines California Focused National Presence & Specialty Businesses Fresno Monterey Kings Tulare Kern San Luis Obispo Santa Barbara Ventura Los Angeles San Bernardino Riverside Orange San Diego THE 3rd LARGEST BANK HEADQUARTERED IN CALIFORNIA1 Specialty Bank Office Community Banking Branches Top 5 California Counties County Rank(2) Dep. ($bn) Orange 1 $13.1 Los Angeles 2 11.1 San Diego 1 1.9 San Bernardino 2 0.8 Riverside 3 0.8 HQ (Los Angeles) Branches HOA Media & Entertainment Mortgage Warehouse Lending SBA Fund Finance Technology & Life Sciences Payments Solutions Menlo Park Orange County Los Angeles Denver San Diego Austin Atlanta Chicago Boston New York Chevy Chase Durham Phoenix Santa Barbara Ranked by assets. Ranked by banks headquartered in California by deposit market share. Source: S&P Capital IQ.

Hamid Hussain President of the Bank 25+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo Olivia Lindsay Chief Risk Officer 20+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank Jared Wolff President and Chief Executive Officer 30+ years of banking and law. Previously held senior executive positions with City National Bank (RBC) and PacWest Bancorp Bob Dyck Chief Credit Officer (outgoing) 35+ years of credit experience, previously served at PacWest Bancorp as CCO for the Community Banking Division John Sotoodeh Chief Operating Officer 30+ years of banking experience, previously held several key executive positions at Wells Fargo Monica Sparks Chief Accounting Officer 20+ years experience in accounting, previously served as EVP, Chief Accounting Officer at PacWest Bancorp First Quarter 2024 Earnings | 23 Raymond Rindone Deputy Chief Financial Officer and Head of Corporate Finance 30+ years finance & public accounting experience, previously served as Deputy CFO of City National Bank (RBC) Joe Kauder Chief Financial Officer 30+ years banking experience, previously served as EVP, CFO Wells Fargo Wholesale Banking Bryan Corsini Credit Administration and CCO (incoming) 35+ years banking experience, previously served as CCO of PacWest Bancorp and Director of Pacific Western Bank Debbie Dahl-Amundson Chief Internal Audit Officer Leads the internal audit group and SOX Compliance, previously served as Assistant General Auditor for PNC Bill Black Head of Strategy and Corporate Development 25+ years of financial services experience, previously ran a financial services hedge fund Steve Schwimmer Chief Information Officer 25+ years of experience in banking technology, previously served as the EVP, Chief Innovation Officer at PacWest Bancorp Stan Ivie Head of Government and Regulatory Affairs Previously served as the Chief Risk Officer of PacWest Bancorp & the regional director for the FDIC’s San Francisco and Dallas Regions Experienced management team with track record of success at leading institutions Ido Dotan General Counsel and Chief Administrative Officer Experienced in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings Alex Kweskin Chief Human Resources Officer 25+ years of Human Resources experience, previously held HR leadership roles at MUFG Union Bank and Wells Fargo

Appendix

Non-GAAP Financial Information Tangible assets, tangible equity, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest income to adjusted total revenue, adjusted noninterest expense to average total assets, adjusted net earnings (loss) available to common stockholders, adjusted diluted earnings (loss) per diluted common share, adjusted return on average assets (“ROAA”), pre-tax pre-provision, pre-goodwill impairment (“PTPP”) income, and adjusted PTPP income constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total stockholders’ equity. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets, goodwill impairment, and any unusual one-time items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution. Adjusted net earnings (loss) is calculated by adjusting net earnings (loss) by unusual, one-time items. ROAA is calculated by dividing annualized net earnings (loss) by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings (loss) by average assets. PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense. Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 26-31 of this presentation. First Quarter 2024 Earnings | 25

Non-GAAP Reconciliation Total common equity divided by common shares outstanding. Tangible common equity divided by common shares outstanding. Common shares outstanding include non-voting common equivalents that are participating securities. First Quarter 2024 Earnings | 26 Note: Periods prior to 4Q23 represent PACW standalone. 4Q23 includes Oct-Dec for PACW and Dec for BANC.

Non-GAAP Reconciliation Effective tax rates of 27.3%, 26.8% and 12.1% used for the three months ended March 31, 2024, December 31, 2023 and September, 2023. Adjusted effective tax rate of 28.4% used to normalize the effect of goodwill impairment for the three months ended March 31, 2023. Annualized net (loss) earnings divided by average stockholders' equity. Annualized adjusted net (loss) earnings available to common stockholders for ROATCE divided by average tangible common equity. Annualized adjusted net (loss) earnings available to common stockholders for adjusted ROATCE divided by average tangible common equity. First Quarter 2024 Earnings | 27 Note: Periods prior to 4Q23 represent PACW standalone. 4Q23 includes Oct-Dec for PACW and Dec for BANC.

Non-GAAP Reconciliation First Quarter 2024 Earnings | 28 Effective tax rates of 27.3%, 26.8% and 12.1% used for the three months ended March 31, 2024, December 31, 2023 and September, 2023. Adjusted effective tax rate of 28.4% used to normalize the effect of goodwill impairment for the three months ended March 31, 2023. Adjusted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding. Annualized adjusted net earnings (loss) divided by average assets. Diluted or adjusted diluted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding. Note: Periods prior to 4Q23 represent PACW standalone. 4Q23 includes Oct-Dec for PACW and Dec for BANC.

Non-GAAP Reconciliation Non-GAAP measure. Ratio presented on an annualized basis. First Quarter 2024 Earnings | 29 Note: Periods prior to 4Q23 represent PACW standalone. 4Q23 includes Oct-Dec for PACW and Dec for BANC.

Non-GAAP Reconciliation First Quarter 2024 Earnings | 30 Note: Periods prior to 4Q23 represent PACW standalone. 4Q23 includes Oct-Dec for PACW and Dec for BANC.