BANC 8-K
Banc Of California, Inc. (BANC)
8-K
2026-07-29
For: 2026-07-29
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July 29, 2026
Investor Presentation Second Quarter 2026 Results
Forward-Looking Statements and Other Matters This presentation includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios; the anticipated benefits of our strategic repositioning including, among others, a strengthened credit profile, possible net interest income and net interest margin expansion, and an enhanced earnings profile; and other non-historical statements, including statements in the “2026 Updated Outlook” section of this presentation. 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 tariffs and retaliatory tariffs, 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 or renewed 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) our ability to achieve or maintain the anticipated benefits of our strategic repositioning due to one or more of the other factors described herein or otherwise, or the failure to complete our anticipated loan sales due to a condition to closing not being satisfied or otherwise; (ix) our ability to raise capital or incur debt on reasonable terms; (x) the costs and effects of litigation; (xi) 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; (xii) the competitive and other impacts on our business of emerging technologies, including stablecoins and other digital currencies, tokenized deposits, blockchain, artificial intelligence, quantum computing, and related innovations affecting both the Company and the banking industry; (xiii) 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; (xiv) 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; (xv) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvi) errors in estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (xvii) cybersecurity threats and failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend; (xviii) our ability to attract and retain key members of our senior management team; (xix) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, military activity (including the ongoing Iran war) or acts of terrorism, and other external events on our business; (xx) 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; (xxi) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xxii) 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; (xxiii) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; (xxiv) the effects of any damage to our reputation resulting from developments related to any of the items identified above; and (xxv) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and from time to time in other documents that we file with or furnish to the SEC. Included in this presentation are certain non-GAAP financial measures, such as tangible assets, tangible common equity ratio, tangible book value per common share, adjusted net earnings, adjusted earnings per share, return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision income, adjusted noninterest expense, adjusted noninterest expense to average assets, efficiency ratio, adjusted efficiency ratio, core deposits, core loans, economic coverage ratio, and adjusted ACL ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Financial Information” and “Non-GAAP Reconciliation” sections of the appendix of this presentation for additional detail including reconciliations of non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP financial measures, including ROTCE future state targets. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results. Second Quarter 2026 Earnings | 2
Core franchise momentum and strategic balance sheet repositioning drive higher recurring earnings power 2Q26 Financial Results Second Quarter 2026 Earnings | 3 ($1.61) Loss Per Share 56% Decrease in Special Mention Loans 9% Average Loan Growth Annualized 12% EOP Deposit Growth Annualized 3.30%+ NIM Post Loan Sale and Reinvestments(1) 31% Decrease in Classified Loans ❖Strategic balance sheet repositioning executed through three targeted actions: a $2.3B securities repositioning, an ~$825mm targeted loan sale and retirement of $385mm of subordinated debt ❖Increases recurring earnings and accelerates organic capital generation ❖Improves capital efficiency and balance sheet flexibility 1. Represents NIM upon targeted ~$825mm loan sale closing and completion of reinvestment of proceeds related to HTM securities repositioning.
Implemented three strategic actions to generate higher recurring earnings and improve capital efficiency Strategic Balance Sheet Repositioning Second Quarter 2026 Earnings | 4 Three complementary actions to allocate capital to higher-return opportunities Strategic Action • Immediate Benefit Long-Term Benefit Securities Repositioning Reallocated $2.3B of low-yielding securities into higher-yielding securities Targeted Loan Sale Initiated sale of ~$825mm of CRE loans Retired $385mm of subordinated debt ❖Higher yields ❖Shorter duration ❖Lower special mention and classified loans ❖Lower risk-weighted assets ❖Reduces interest rate reset risk ❖Higher recurring NII ❖Less interest rate risk ❖Higher capital efficiency ❖Higher recurring earnings ❖Enhanced balance sheet flexibility ❖Higher recurring earnings Expected NIM of 3.30%+ following loan sale closing and completion of securities reinvestment
Securities repositioning drives higher recurring earnings Strategic Actions – Securities Repositioning Second Quarter 2026 Earnings | 5 Total Securities Portfolio Summary 3.02% 4.34% 19.5% 9.5% 5 years 4 years 1Q26 2Q26 Change +132 bps -1 year -1000 bps Spot Yield Duration Risk Weighting (%) Key Takeaways ❖ Repositioned $2.3B of low-yielding securities; Initial reinvestment of $1.7B of proceeds into higher-yielding assets as of 6/30 ❖ Securities sold: 2.11% yield, 6.3-year duration ❖ Reinvested securities: 4.87% yield, 3.5-year duration ❖ Higher yields support higher recurring net interest income ❖ Shorter duration increases balance sheet flexibility ❖ Favorable risk weighting increases capital efficiency ❖ Expected TBV earn-back(1) of 1.4 years 1. Represents Day 1 TBV loss – reinvestment uplift defined as day 1 loss on tangible book value divided by tax affected interest income pickup from reinvestment.
Targeted loan sale reduces risk and strengthens our portfolio composition Strategic Actions – Loan Sale Second Quarter 2026 Earnings | 6 Earnings Capital CreditTransaction Overview ❖ Initiated sale process of ~$825mm of select CRE loans ❖Weighted average interest rate on loans being sold is 4.6% ❖We expect the loan sale transactions to close in the third quarter Strategic Benefits ❖Reduces special mention loans by 56% ❖Reduces classified loans by 31% ❖Reduces exposure to credits with higher migration and concentration risk ❖ Increased capital efficiency as proceeds will be deployed into market rate loans ❖CET1 will increase with loan sale transaction closing ❖Proceeds to be redeployed into higher risk-adjusted return opportunities ❖Attractive sale economics preserve value while improving future earnings profile
Our strategic balance sheet repositioning creates higher recurring earnings and profitability 2026 Updated Outlook Second Quarter 2026 Earnings | 7 NIM 3.30-3.40% By year-end ROAA 0.95-1.00% By year-end ROATCE 11.5-12.5% By year-end PTPP $125-$130mm 4Q26 (1) (1) 1. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides in Appendix. 2.66% 3.08% 3.24% 1Q24 1Q25 1Q26 4Q26 Target 3.30- 3.40% $52mm $82mm $106mm 1Q24 1Q25 1Q26 4Q26 Target $125- $130mm 0.33% 0.65% 0.86% 1Q24 1Q25 1Q26 4Q26 Target 0.95- 1.00% 4.36% 7.56% 9.91% 1Q24 1Q25 1Q26 4Q26 Target 11.5- 12.5%
Second Quarter 2026 Earnings | 8 Rapid Capital Generation Compounded higher earnings growth provides path to CET1 above 10.0% in early 2027 10.18% 1Q26 Reported CET1 -0.54% HTM Repositioning -0.44% Provision expense +0.30- 0.40% 3Q26 Loan Sale Close and Other Estimated 3Q26 CET1 9.50- 9.60%+ ’26 Year-end Target CET1 9.80- 9.90%+ Early 2027 CET1 10.00%+ CET1 Bridge Key Takeaways ❖Strategic actions accelerate organic capital generation ❖CET1 post loan sale closing is expected to be ~9.50% ❖Expected CET1 >10.00% in early 2027 independent of any regulatory capital reform ❖Regulatory capital reform provides upside potential Higher recurring earnings compound capital growth, expected to result in CET1 >10.0% in early 2027
1. 2Q25 PTPP, Diluted EPS, ROAA and ROATCE are adjusted figures; see “Non-GAAP Reconciliation” slides in Appendix 2. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides in Appendix. 3. Production includes new loan production and disbursements. Core franchise performance remained strong while strategic repositioning enhanced recurring earnings power Quarterly Highlights Second Quarter 2026 Earnings | 9 Change 2Q26 1Q26 2Q25(1) QoQ D YoY D Reported Results PTPP(2) -$173.5mm $105.6mm $87.0mm NM NM Diluted EPS -$1.61 $0.39 $0.31 ($2.00) ($1.92) ROAA -2.79% 0.86% 0.69% NM NM ROATCE(2) -36.18% 9.91% 8.34% NM NM NIM 3.13% 3.24% 3.10% -11 bps 3 bps Capital TBVPS(2) $16.44 $17.77 $16.46 ($1.33) ($0.02) CET1 ratio 9.25% 10.18% 9.95% -93 bps -70 bps Credit ACL ratio 1.14% 1.12% 1.07% 2 bps 7 bps NIM NIM of 3.13%; NIM expected at 3.30%+ following loan sale closing and completion of securities reinvestment Credit Quality Special Mention and Classified loans down 56% and 31%, respectively ACL ratio increased 2 bps to 1.14% Loans Production(3) of $2.8B in 2Q26 Average loans up 9% annualized Deposits Total end-of-period deposits up 12% annualized Capital Expected CET1 of 9.50-9.60% in 3Q26 (includes impact of loan sale close)
Noteworthy items include the impact of significant transactions that were either unusual or elevated in magnitude during the quarter, largely related to our strategic repositioning Noteworthy Items Affecting 2Q26 Results Second Quarter 2026 Earnings | 10 Noteworthy Items Pre-Tax Impact ($mm) Net interest income Loan interest reversal ($5.0) Noninterest income HTM repositioning ($256.7) HFS fair-value adjustments ($12.5) Provision for credit losses Loan sales / charge-offs ($151.9) Noninterest expense Various expense items ($4.5) ❖Loan interest reversal impact related to loans classified as held-for-sale in 2Q ❖HTM repositioning impact is the loss on repositioning $2.3B of securities ❖ Impact to provision for credit losses is primarily comprised of fair value marks on loans transferred to held-for-sale ❖The noninterest expense items include a non- recurring charge for software obsolescence and temporarily elevated FDIC assessments ❖The impact of these noteworthy items increased the tax rate from 25% to 28% for the quarter
1. 2Q25 Diluted EPS, ROAA and ROATCE are adjusted figures; see “Non-GAAP Reconciliation” slides in Appendix 2. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides in Appendix. GAAP results reflect the 2Q26 strategic balance sheet repositioning actions, while underlying operating performance remained consistent with expectations Income Statement ($ in millions) 2Q26 1Q26 2Q25 Total interest income $414.6 $407.4 $420.5 Total interest expense 164.1 155.8 180.3 Net interest income 250.5 251.6 240.2 Loss on securities AFS (256.7) 0.0 0.0 Other noninterest income 22.7 35.3 32.6 Total noninterest (loss) income (234.1) 35.3 32.6 Total revenue 16.4 286.9 272.8 Operating expense 189.9 181.4 185.9 Total noninterest expense 189.9 181.4 185.9 PTPP (loss) income(2) (173.5) 105.6 87.0 Provision for credit losses 161.8 9.8 39.1 (Loss) earnings before income taxes (335.2) 95.8 47.9 Income tax (benefit) expense (93.9) 23.8 19.5 Net earnings (241.3) 72.0 28.4 Preferred stock dividends 9.9 9.9 9.9 Net earnings available to common and equivalent stockholders ($251.3) $62.0 $18.4 Key Income Statement Metrics 2Q26 1Q26 2Q25(1) Diluted EPS ($1.61) $0.39 $0.31 ROAA -2.79% 0.86% 0.69% ROATCE(2) -36.18% 9.91% 8.34% Net interest margin 3.13% 3.24% 3.10% NIE / average assets 2.20% 2.16% 2.21% Adj. NIE / average assets(2) 1.92% 1.88% 1.89% Efficiency ratio(2) 67.18% 61.00% 65.50% Adj. efficiency ratio(2) 64.01% 57.49% 61.77% Avg. yield on loans and leases 5.63% 5.74% 5.93% Avg. yield on interest-earning assets 5.18% 5.25% 5.42% Avg. total cost of funds 2.14% 2.10% 2.42% Avg. total cost of deposits 1.80% 1.78% 2.13% Second Quarter 2026 Earnings | 11
Strategic repositioning actions result in a stronger balance sheet, positioning the company for even stronger financial performance 1. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides in Appendix. 2. Total funding defined as total deposits plus borrowings. Balance Sheet Second Quarter 2026 Earnings | 12 ($ in millions) 2Q26 1Q26 2Q25 Cash and cash equivalents $2,818 $2,217 $2,354 Investment securities 4,665 5,140 4,725 Loans held for sale 915 259 466 Loans and leases HFI 24,211 24,780 24,246 Allowance for loan and lease losses (243) (242) (229) Goodwill and intangibles 307 314 333 Deferred tax asset, net 704 653 692 Other assets 1,653 1,602 1,665 Total assets $35,031 $34,724 $34,250 Noninterest-bearing deposits $7,758 $7,798 $7,441 Interest-bearing deposits 20,363 19,525 20,087 Total deposits 28,121 27,322 27,528 Borrowings 2,460 2,551 1,917 Subordinated debt 574 954 949 Other liabilities 466 343 429 Total liabilities excluding deposits 3,500 3,849 3,295 Total stockholders’ equity 3,410 3,553 3,427 Total liabilities and stockholders’ equity $35,031 $34,724 $34,250 Key Balance Sheet Metrics 2Q26 1Q26 2Q25 Average interest-earning assets $32,118 $31,471 $31,097 CET1 ratio 9.25% 10.18% 9.95% Tangible common equity ratio(1) 7.50% 7.97% 7.65% Tangible book value per share(1) $16.44 $17.77 $16.46 Cash / assets 8.0% 6.4% 6.9% Cash + securities / assets 21.4% 21.2% 20.7% Loans / deposits 89.3% 91.6% 89.8% Noninterest-bearing deposits / total deposits 27.6% 28.5% 27.0% Deposits / total funding(2) 92.0% 91.5% 93.5% Total brokered deposits / total funding(2) 9.2% 9.3% 9.8% ACL ratio 1.14% 1.12% 1.07%
Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%) Impact to NII ($mm) from cumulative change in yields, rates and mix 1Q26 +$4.9 Loans +$1.7 Cash / Other EA +$0.5 Securities Deposits -$4.2 Borrowings 2Q26 $251.6 -$4.0 $250.5 $240.2 $253.4 $251.4 $251.6 $250.5 3.20% 4Q25 3.24% 1Q26 3.13% 2Q26 3Q26 Target 4Q26 Target2Q25 3Q25 3.10% 3.22% 3.30- 3.35% 3.30- 3.40% The benefits of the strategic repositioning should meaningfully increase NIM Net Interest Income and Net Interest Margin ❖ NIM expected at 3.30%+ following loan sale closing and completion of securities reinvestment ❖ 2Q26 NIM of 3.13% was negatively impacted by nonaccrual interest of ~$4.6mm HIGHLIGHTS Second Quarter 2026 Earnings | 13
Underlying noninterest income remained stable despite strategic repositioning charges ($ in millions) 2Q26 1Q26 2Q25 Commissions and Fees $9.0 $11.0 $9.6 Leased Equipment Income 7.8 8.5 10.2 Service Charges on Deposits 4.8 5.0 4.5 Dividends & Gains (Losses) on Equity Investments 3.3 2.0 (0.1) Loss on securities AFS (256.7) 0.0 0.0 Other Income (1) (2.3) 8.8 8.4 Total Noninterest Income ($234.1) $35.3 $32.6 Noninterest Income HIGHLIGHTS ❖ Noninterest income includes $256.7mm loss on securities AFS, and a $12.5mm loss for market valuation adjustment on previously transferred HFS loans ❖ Noninterest income, excluding loss on securities AFS and loss on loans HFS, of $35.2mm remained stable QoQ, consistent with normal run-rate of $11mm-$12mm per month ❖ Commissions and fees were lower QoQ, as 1Q26 FX fees were elevated due to higher trading volume driven by market volatility 1. Other income includes revenue from BOLI, warrants, credit-linked note related income, loss on loan sales, and other miscellaneous income. Second Quarter 2026 Earnings | 14
Adjusted Noninterest Expense(1) / Average Assets Ratio 1. Excludes customer related expense. Denotes a non-GAAP financial measure, see “Non-GAAP Reconciliation” slides in Appendix. 2. Denotes a non-GAAP financial measure, see “Non-GAAP Reconciliation” slides in Appendix. Expense discipline remained unchanged while executing significant strategic actions during the quarter 65.50% 62.05% 59.35% 61.00% 67.18% 61.77% 58.24% 55.58% 57.49% 64.01% 2Q25 3Q25 4Q25 1Q26 2Q26 Efficiency Ratio(2) Adjusted Efficiency Ratio(1) Adjusted Efficiency Ratio(1) 2.21% 1.89% 2Q25 2.18% 1.87% 3Q25 2.12% 1.83% 4Q25 2.16% 1.88% 1Q26 2.20% 1.92% 2Q26 Noninterest Expense / Average Assets Ratio Adjusted Noninterest Expense / Average Assets Ratio Noninterest Expense (1) Second Quarter 2026 Earnings | 15 ❖ Compensation expense declined QoQ driven by elevated 1Q26 seasonality ❖ Insurance and assessments increased QoQ primarily due to higher FDIC assessment expense ❖ Other expense increased QoQ primarily due to $4.8mm software obsolescence expense HIGHLIGHTS ($ in millions) 2Q26 1Q26 2Q25 Compensation $85.1 $91.1 $88.4 Occupancy 14.7 14.9 15.5 IT and data processing 13.8 14.3 13.1 Professional services 5.6 4.2 6.4 Insurance and assessments 14.5 6.8 9.4 Intangible asset amortization 6.3 6.3 7.2 Leased equipment depreciation 5.2 5.3 6.7 Loan expense 5.2 4.3 4.1 Other expense 15.4 10.4 8.7 Customer related expense 24.1 23.7 26.6 Total noninterest expense $189.9 $181.4 $185.9
Deposit franchise continues to generate stable funding for future growth 4.33% 4.30% 3.90% 3.64% 3.63% 2.13% 2.08% 1.89% 1.78% 1.80% Average Fed Funds Rate Average Total Cost of Deposits 27% 28% 28% 29% 28% 29% 29% 30% 30% 31% 27% 26% 25% 24% 25% 9% 9% 9% 9% 9% 8% 2Q25 8% 3Q25 8% 4Q25 8% 1Q26 7% 2Q26 Non-Brokered CDs Brokered CDs Money Market & Savings Interest-bearing Checking Noninterest-bearing Checking 1. Brokered non-maturity deposits consist of brokered sweep accounts included in Checking and MMDA. 2. Denotes a non-GAAP financial measure, see “Non-GAAP Reconciliation” slides in Appendix. 3. Represents all NIB deposit balances with ECR including through cash rebates and/or fee offsets. 4. Costs do not include ECR expenses related to HOA deposits. 5. Includes brokered CDs. Deposits By Line of Business ($mm) 2Q26 Balance 2Q26 Cost 1Q26 Balance 1Q26 Cost Community Banking $13,860 1.51% $13,823 1.51% Venture 7,086 2.18% 6,272 2.22% Specialty Banking (includes HOA)(4) 3,954 0.68% 3,970 0.70% Corporate and Other Institutional(5) 3,221 3.61% 3,258 3.56% Total Deposits $28,121 1.80% $27,322 1.78% ❖ Deposits increased 12% annualized, reflecting continued franchise momentum and strong growth late in the quarter ❖ Total cost of deposits increased 2 bps QoQ as average higher-cost deposit balances increased to support loan growth Deposits ($ in millions) 2Q26 1Q26 2Q25 Noninterest-bearing Checking $7,758 $7,798 $7,441 Checking 8,739 8,178 7,974 MMDA 5,137 4,643 5,375 Savings 1,835 1,991 1,933 CDs 4,653 4,712 4,805 Total Deposits $28,121 $27,322 $27,528 Less: Brokered CDs 2,591 2,562 2,312 Less: Brokered Non-maturity Deposits (1) 227 226 565 Core Deposits (2) $25,303 $24,534 $24,652 Average Noninterest-bearing Checking 7,866 7,890 7,584 Average NIB Checking / Average Deposits 28.5% 28.9% 27.8% NIB Deposits with ECR (3) 4,979 5,041 4,566 HIGHLIGHTS Second Quarter 2026 Earnings | 16
650 1,288 1,889 2,390 2,929 3,569 4,031 4,845 5,393 5,921 $107.3 1Q24 $257.8 2Q24 $382.6 3Q24 $439.2 4Q24 $537.8 1Q25 $643.2 2Q25 $746.8 3Q25 $965.2 4Q25 $1,113.5 1Q26 $1,212.6 2Q26 Cumulative New NIB Business Deposits Accounts Cumulative New NIB Business Deposits ($ millions) New NIB business deposit(1) relationship growth continues to build franchise value 1. Includes new NIB deposits from relationships opened over the last two years from the quarter referenced. NIB Deposit Growth Second Quarter 2026 Earnings | 17
$990 $826 $1,040 $1,147 $878 $911 $837 $1,443 $776 $1,610 $1,816 $2,186 $1,789 $2,280 $2,385 7.29% 7.08% 6.39%5.93% 6.05% 5.63% 6.83% 5.83% 6.65% 5.74% Rate on Production Total Loan Yield ($ in millions) 1. Rate on production is rate on new loans funded in respective quarter. 2. Includes charge-offs, transfers to foreclosed assets, loan sales, and transfers to HFS. Strong loan production and disbursements of $2.8B continues to remix the portfolio $997 $893 $1,696 $808 $989 Payoffs PaydownsUnfunded New Commitments 2Q25 3Q25 4Q25 1Q26 2Q26 $2,459 $2,068 $2,730 $2,119 $2,793 Loan Production and Disbursements Loan Activity (1) ❖ Broad-based 2Q26 production and disbursements of $2.8B continued to remix the portfolio toward higher risk-adjusted return assets, with new production pricing above the total loan yield ❖ Elevated payoffs and paydowns were driven by Fund Finance and Warehouse, partially offsetting strong production activity ❖ 2Q26 total loan yield declined 11 bps QoQ primarily due to impact of nonaccrual interest HIGHLIGHTS Second Quarter 2026 Earnings | 18 ($ in millions) Loans Beginning Balance Total Production/ Disbursements Total Payoffs/ Paydowns Net Change Other Change(2) Loans Ending Balance Total Loan Yield Rate on Production C&I Utilization Rate 2Q26 $24,780 $2,793 $2,385 407 (977) 24,211 5.63% 6.39% 67.9% 1Q26 25,033 2,119 2,280 (162) (91) 24,780 5.74% 6.65% 67.3% 4Q25 24,111 2,730 1,789 941 (19) 25,033 5.83% 6.83% 66.6% 3Q25 24,246 2,068 2,186 (118) (17) 24,111 6.05% 7.08% 66.1% 2Q25 24,127 2,459 1,816 643 (524) 24,246 5.93% 7.29% 64.8%
Loan remix continues to strengthen portfolio yields Note: Wtd. Avg. Rate excludes accretion of net deferred loan fees and net loan purchase discounts. 1. Venture lending includes technology and life science lending. Loan Activity by Segment ❖ Broad-based 2Q26 production continued to remix the portfolio toward higher-return categories, with strength in Fund Finance, Lender Finance and SFR ❖ Disciplined runoff of lower-return assets supports stronger portfolio economics, shifting balances away from lower-yielding legacy CRE and toward more attractive risk-adjusted categories ❖ Loan yields remained stable despite a declining rate environment, reflecting the benefit of remixing and disciplined pricing on new production ❖ Portfolio remix is expected to continue supporting margin over time as additional balances mature and reprice HIGHLIGHTS 2Q26 1Q26 2Q25 Loan Segment ($ in millions) Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Balances Production + Disbursements Payoffs + Paydowns Wtd. Avg Rate Multifamily $5,445 $139 ($91) 4.2% $5,955 $34 ($189) 4.2% $6,281 $111 ($82) 4.2% Other CRE 3,405 167 (138) 5.3% 3,444 57 (320) 5.3% 3,746 180 (235) 5.3% Real Estate Construction 1,475 190 (275) 6.2% 1,892 165 (131) 5.9% 2,302 173 (274) 6.0% Residential / Consumer 3,878 500 (148) 4.8% 3,529 234 (106) 4.6% 3,180 504 (102) 4.2% C&I 1,874 264 (267) 6.3% 1,886 406 (262) 6.3% 1,773 209 (286) 6.7% Warehouse 1,681 271 (395) 6.6% 1,805 264 (559) 6.7% 1,610 208 (198) 7.4% Venture Lending 936 110 (124) 7.0% 965 129 (67) 7.0% 808 119 (87) 7.8% Fund Finance 1,504 733 (586) 6.4% 1,358 470 (432) 6.5% 1,194 501 (263) 7.4% SBA 716 27 (40) 7.1% 730 18 (30) 6.9% 700 13 (27) 6.7% Lender Finance 2,017 351 (211) 6.7% 1,865 288 (60) 6.9% 1,173 375 (132) 7.8% Equipment Lending 661 37 (42) 6.0% 666 52 (60) 6.0% 645 60 (42) 6.0% Core Loan Portfolio $23,592 $2,789 ($2,317) 5.5% $24,095 $2,116 ($2,216) 5.5% $23,412 $2,453 ($1,730) 5.6% Premium Finance $356 $3 ($55) 3.4% $408 $2 ($41) 3.3% $473 $4 ($48) 3.4% Student 238 0 (11) 4.3% 250 0 (11) 4.3% 286 $1 ($13) 4.3% Civic 24 0 (3) 7.3% 27 0 (12) 7.2% 75 $0 ($25) 7.0% Discontinued Areas $618 $3 ($68) 3.9% $685 $2 ($64) 3.8% $834 $6 ($86) 4.0% Total Loans and Leases HFI $24,211 $2,793 ($2,385) 5.5% $24,780 $2,119 ($2,280) 5.4% $24,246 $2,459 ($1,816) 5.5% (1) Second Quarter 2026 Earnings | 19
Loan growth reflects continued franchise momentum Note: Wtd. Avg. Rate excludes accretion of net deferred loan fees and net loan purchase discounts. 1. Venture lending includes technology and life science lending. Loan Portfolio 2Q26 1Q26 2Q26 1Q26 Variance % of Total Loans 2Q26 Wtd. Avg. Rate 2Q26 NPL % 2Q26 DQ % 2Q26 ACL Coverage Ratio ACL Coverage Ratio Multifamily $5,445 $5,955 ($510) 22.5% 4.2% 0.21% 0.21% $50 0.92% $35 0.59% Other CRE 3,405 3,444 (39) 14.1% 5.3% 1.88% 0.57% 87 2.55% 88 2.55% Real Estate Construction 1,475 1,892 (417) 6.1% 6.2% 0.16% 0.16% 17 1.15% 19 0.99% Residential / Consumer 3,878 3,529 349 16.0% 4.8% 1.14% 2.50% 9 0.23% 8 0.22% C&I 1,874 1,886 (12) 7.7% 6.3% 0.68% 0.85% 26 1.37% 27 1.41% Warehouse 1,681 1,805 (124) 6.9% 6.6% 0.00% 0.00% 4 0.24% 3 0.16% Venture Lending (1) 936 965 (29) 3.9% 7.0% 1.54% 0.00% 60 6.39% 74 7.71% Fund Finance 1,504 1,358 147 6.2% 6.4% 0.00% 0.00% 0 0.03% 0 0.03% SBA 716 730 (14) 3.0% 7.1% 6.04% 1.20% 5 0.75% 5 0.68% Lender Finance 2,017 1,865 152 8.3% 6.7% 0.00% 0.00% 6 0.32% 6 0.34% Equipment Lending 661 666 (5) 2.7% 6.0% 0.00% 0.89% 1 0.20% 1 0.21% Core Loan Portfolio $23,592 $24,095 ($503) 97.4% 5.5% 0.82% 0.68% $266 1.13% $266 1.10%0 0 0% 0.00% 0.00% Premium Finance $356 $408 ($52) 1.5% 3.4% 0.00% 0.00% $0 0.07% $0 0.07% Student 238 250 (12) 1.0% 4.3% 0.47% 0.96% 10 4.07% 10 4.02% Civic 24 27 (3) 0.1% 7.3% 40.47% 43.73% 0 0.05% 0 0.05% Discontinued Areas $618 $685 ($67) 2.6% 3.9% 1.76% 2.08% $10 1.61% $10 1.51% Total Loans and Leases HFI $24,211 $24,780 ($570) 100.0% 5.5% 0.84% 0.72% $276 1.14% $277 1.12% Loans Held for Sale (HFS) 915 259 656 Total Loans and Leases $25,126 $25,039 $87 Loan Segment ($ in millions) Second Quarter 2026 Earnings | 20 ❖ Average loan balances grew 9% annualized, driven by higher-yielding C&I categories
Approximately half of the multifamily portfolio is expected to reprice or mature over the next 2.5 years, providing meaningful embedded earnings upside Note: Long Term (“LT”) Variable: Loans that reset or mature beyond one year. Weighted Average Coupon (“WAC”): Weighted average of the contractual interest rate. 1. Balances include maturities only and do not include scheduled amortization and prepayment expectations. Loan Composition ❖ Total fixed rate and hybrid loans that are maturing/repricing by year-end have a WAC of 5.0%, significantly below 2Q26 rate on new production of 6.39% ❖ ~$0.9B of hybrid multifamily loans maturing/repricing within 1 year have a WAC of 4.5%, offering strong repricing upside ❖ Short-term variable loans represent 39% of total loans HIGHLIGHTS Loan Maturity and Repricing Summary Second Quarter 2026 Earnings | 21 41% 39% 20% 2Q26 Fixed ST Variable Hybrid+LT Variable WAC: 4.8% WAC: 6.6% WAC: 4.8% $0.3 $0.1 $0.3 $1.4 $1.4 $0.7 $0.8 $0.4 4.0% 5.5% 3.7% 3.9% 3.9% 4.2% 5.1% 4.0% Multifamily Loans – Maturities / Repricing Hybrid & Variable Rate: Fixed Rate: Total Fixed Rate and Hybrid Loans – Maturities / Repricing Total fixed rate and hybrid loans: $13.3B Total multifamily loans: $5.4B 4.7% 4.4% 4.7%4.7%WAC: <= 1 Year 1-2 Years 2-3 Years > 3 Years $1.7B $0.8B $1.1B $1.8B Fixed Rate Maturity(1) Hybrid & Variable Rate Reset $1.3 $0.7 $1.1 $0.4 $1.5 $0.6 $1.0 $6.7 <= 1 Year 1-2 Years 2-3 Years > 3 Years $2.8B $1.3B $2.1B $7.1B Fixed Rate(1) Hybrid
Asset quality metrics strengthened through proactive portfolio management ❖ Asset quality metrics strengthened QoQ, with classified, special mention and delinquent loans declining 31%, 56% and 50%, respectively ❖ Sale (pending) of ~$825mm of CRE loans reduces exposure concentration, enhances capital efficiency and lowers potential future credit-related earnings volatility ❖ Healthy market demand and attractive pricing enabled us to be opportunistic with sale process ❖ We expect the loan sale transactions to close in the third quarter Special Mention Loans ($mm) Delinquent Loans ($mm) Classified Loans ($mm) $311.3 $320.1 $275.3 $281.9 $175.1 $465.7 $15.8 2Q25 $255.3 $478.9 $29.3 3Q25 $257.4 $520.1 $22.8 4Q25 $245.7 $583.1 $14.0 1Q26 $184.5 $387.4 $10.9 2Q26 $656.6 $763.6 $800.3 $842.8 $582.8 2.71% 3.17% 3.20% 3.40% 2.41% Classified Loans/Leases to Loans/Leases HFI CRE Loans (excluding MF and Construction) Other Core Loans(1) Discontinued Loans 0.62% 0.67% 0.80% 1.39% 0.72% Delinquent Loans to Loans/Leases HFI 1. Reference Page 19 for Core Loan Portfolio. Other Core Loans comprises Core Loan Portfolio less CRE loans (excluding MF and Construction). HIGHLIGHTS Nonperforming Loans ($mm) $55.7 $96.4 $15.4 2Q25 $56.2 $89.4 $28.9 3Q25 $53.1 $83.2 $22.8 4Q25 $48.4 $123.4 $14.0 1Q26 $64.2 $128.6 $10.9 2Q26 $167.5 $174.5 $159.2 $185.7 $203.7 CRE Loans (excluding MF and Construction) Other Core Loans(1) Discontinued Loans 0.69% 0.72% 0.64% 0.75% 0.84% $201.0 $454.5 $6.1 2Q25 $108.3 $392.0 $5.7 3Q25 $125.0 $328.5 $5.2 4Q25 $117.5 $566.1 $5.0 1Q26 $151.2 $146.4 $2.9 2Q26 $661.6 $506.0 $458.7 $688.7 $300.5 CRE Loans (excluding MF and Construction) Other Core Loans(1) Discontinued Loans 2.73% 2.10% 1.83% 2.78% 1.24% Special Mention Loans/Leases to Loans/Leases HFI NPLs to Loans/Leases HFI $42.7 $90.5 $16.2 2Q25 $46.3 $77.7 $37.4 3Q25 $40.9 $138.2 $21.8 4Q25 $35.4 $295.1 $14.6 1Q26 $19.5 $141.3 $12.9 2Q26 $149.5 $161.4 $201.0 $345.1 $173.7 CRE Loans (excluding MF and Construction) Other Core Loans(1) Discontinued Loans Asset Quality Ratios and Trends Second Quarter 2026 Earnings | 22 Targeted actions reduced potential migration and larger borrower concentration exposure
❖ ACL remained stable QoQ at $276.2mm, with ACL ratio increasing 2bps QoQ to 1.14% ❖ Net charge-offs were primarily driven by loans transferred to HFS ❖ Economic coverage ratio(1) increased 3bps to 1.63% ($ in millions) 2Q26 Net Charge-offs (Recoveries) detail ($160.3) ACL 1Q26 Net Charge-offs $160.0 Provision for Loans HFI ACL 2Q26 $276.5 ACL coverage ratio increased to 1.14% HIGHLIGHTS 1. Economic coverage ratio adjusts our ACL coverage ratio to include the loss coverage from credit-linked notes and unearned credit marks from purchase accounting. Denotes a non-GAAP financial measure, see “Non-GAAP Reconciliation” slides in Appendix. 1.63% Economic coverage ratio(1) $276.2 $258.6 1.07% 1.61% 2Q25 $270.7 1.12% 1.65% 3Q25 $280.5 1.12% 1.62% 4Q25 $276.5 1.12% 1.60% 1Q26 $276.2 1.14% 1.63% 2Q26 ACL ACL / Total Loans HFI Economic Coverage Ratio(1) ACL / Total Loans ($mm) 2Q26 ACL walk 1.12% 1.14% Net Charge-offs (Recoveries) ($ in millions) Charge-offs Recoveries Net Charge-offs (Recoveries) % of Total Loans (annualized) Civic Loans $0.6 ($0.0) $0.6 0.01% Commercial Loans 15.1 (0.9) 14.2 0.23% Real Estate Mortgage 77.2 (0.1) 77.1 1.22% Real Estate Construction 67.5 - 67.5 1.07% Consumer Loans: Student Loans - - - 0.00% Consumer Loans: excluding Student Loans 1.1 (0.3) 0.8 0.01% Total $161.6 ($1.3) $160.3 2.54% Allowance for Credit Losses - Loans Second Quarter 2026 Earnings | 23
Adjusted ACL ratio(1) is significantly higher when adjusting for lower loss loan categories 2Q26 Adjusted ACL Ratio(1) Composition of Lower Loss Loan Categories ❖ Recent loan growth is in segments with relatively low expected credit losses including lender finance, SFR and fund finance ❖ Adjusted ACL Ratio(1) at 1.70%; Economic Coverage Ratio(1) at 1.63%, which includes $105.0mm of loss coverage from credit-linked notes on SFR ❖ Lower loss loan categories as a percent of total loans increased to 37% at 2Q26 from 34% in 1Q26 strengthening the credit profile of the bank 1.14% 1.32% 1.42% 1.70% ACL Ratio Adj. ACL Ratio Excluding Single Family Residential Loans Adj. ACL Ratio Excluding SFR Mortgage & Warehouse Loans Adj. ACL Ratio Excluding SFR Mort., Warehouse, Fund Finance and Lender Finance Loans HIGHLIGHTS 1. Adjusted ACL Ratio is adjusted for lower loss loan categories. Economic Coverage Ratio is adjusted for the impact of credit-linked notes and unearned credit mark from purchase accounting. Denotes a non-GAAP financial measure, see "Non-GAAP Reconciliation” slides in Appendix. Adjusted Allowance for Credit Losses Ratios Lower Loss Loan Categories ($ in millions) 2Q26 1Q26 2Q25 Residential $3,770 $3,431 $3,083 Warehouse 1,681 1,805 1,610 Fund Finance 1,504 1,358 1,194 Lender Finance 2,017 1,865 1,173 Total Lower Loss Loans $8,972 $8,459 $7,061 Total Loans and Leases HFI $24,211 $24,780 $24,246 Lower Loss Loans / Total Loans and Leases HFI 37.1% 34.1% 29.1% Second Quarter 2026 Earnings | 24
Average Total Securities Portfolio Balance & Total Yield(3) 1. Excludes FRB and FHLB stock. 2. HTM securities reflected at amortized cost; excludes $0.7mm loss reserve. 3. Total securities yield of 3.44% and average securities portfolio balance includes FRB and FHLB stock. Total securities yield is calculated using average fair values for the quarter. Strategic securities repositioning will drive meaningful higher recurring earnings ❖ The securities portfolio is now positioned to contribute meaningfully more recurring income over time ❖ Limited 2Q26 yield impact from prior quarter due to timing of securities sale / reinvestment ❖ Unrealized pre-tax loss on AFS securities of $209mm, up $8mm QoQ driven primarily by an increase in interest rates. ❖ Of the AFS securities portfolio, 89% is fixed rate, 7% is floating rate, and 4% is hybrid rate ❖ 2Q26 new investment yield of 5.1% ❖ 8% of AFS securities portfolio will contractually pay down and reprice within 1 year and 24% within three years ❖ 89% of total securities are AAA rated and 6% are AA rated HIGHLIGHTS $4.7 3.20% 2Q25 $4.8 3.18% 3Q25 $4.9 3.21% 4Q25 $5.0 3.38% 1Q26 $4.9 3.44% 2Q26 Average Balance ($ in billions) Yield Investment Securities Portfolio Yield Duration (yrs) Unrealized Unrealized 2Q26 1Q26 Variance 2Q26 2Q26 Loss 2Q26 Loss 1Q26 AFS - Gov't & Agency $3,764 $1,970 $1,794 4.19% 4.3 ($168) ($160) AFS - CLO's 201 200 0 5.38% 0.0 0 0 AFS - Corporate Bonds 238 233 5 6.40% 1.1 (14) (14) AFS - Non-Agency Securitizations 282 254 28 3.98% 4.6 (28) (27) AFS $4,484 $2,657 $1,827 4.35% 4.0 ($209) ($201) HTM - Gov't & Agency 643 (643) (31) HTM - Corporate Bonds 71 (71) (7) HTM - Municipal Bonds 1,239 (1,239) (35) HTM - Non-Agency Securitizations 362 (362) (13) HTM(2) - $2,314 ($2,314) ($87) Total AFS + HTM Securities $4,484 $4,971 ($487) 3.44% 4.0 ($209) ($287) Security Type (1) ($ in millions) Second Quarter 2026 Earnings | 25 (3)
9.95% 10.18% 9.25% 2Q25 1Q26 2Q26 7.65% 7.97% 7.50% 2Q25 1Q26 2Q26 CET1 Ratio TCE Ratio(1) Note: 2Q26 regulatory capital ratios are preliminary. 1. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides in Appendix. Capital remains resilient while strategic actions position the company for faster organic capital generation Capital 2Q26 1Q26 2Q25 Regulatory Well- Capitalized Excess of Well- Capitalized Consolidated Company Total Risk-Based Ratio 14.31% 16.55% 16.37% 10.00% 4.31% Tier 1 Risk-Based Capital 11.67% 12.54% 12.34% 8.00% 3.67% CET1 Ratio 9.25% 10.18% 9.95% 6.50% 2.75% Leverage Ratio 8.89% 9.97% 9.74% 5.00% 3.89% TCE Ratio (1) 7.50% 7.97% 7.65% NA NA TBVPS (1) $16.44 $17.77 $16.46 NA NA Second Quarter 2026 Earnings | 26
2Q26 IRR position – NII impact ($B) ❖ Gap between short-term (“ST”) liabilities and assets of $5.8B in 2Q26 compared to $5.6B at 1Q26 ❖ HTM repositioning was largely NII-neutral, as greater asset sensitivity from shorter duration securities was offset by a higher NII base from significantly higher reinvestment yields ❖ When adjusted for deposit repricing betas, net interest income sensitivity is relatively neutral ❖ We have the potential to outperform our modeled deposit betas in both up and down rate scenarios dependent on economic conditions ❖ The impact of ECR costs on rate-sensitive deposits of $3.8B shifts this neutral interest rate sensitivity to liability sensitive for total earnings HIGHLIGHTS $15.7 $21.5 ST Assets ST Liabilities Asset / liability gap of ($5.8B) is largely neutral to NII when adjusting for deposits repricing betas 2Q26 IRR position – Total Earnings ($B) $15.7 $18.1 ST Assets ST Liabilities (Beta & ECR Adjusted) ECR costs on deposits when adjusted for repricing betas shifts IRR position to liability sensitive with a repricing gap at ($2.4B) Cash / ST Investments / ST Loans Cash / ST Investments / ST Loans Variable Deposits / ST CDs / ST Borrowings Variable Deposits / ST CDs / ST Borrowings Note: Short Term (“ST”): Assets and liabilities expected to mature, reprice, or settle within one year. Rate sensitive defined as assets or liabilities that are repricing or maturing within one year. Second Quarter 2026 Earnings | 27 Balance sheet position provides flexibility across multiple interest-rate environments Interest Rate Sensitivity Ongoing balance sheet remixing will support further net interest income expansion
Supplemental Information
Note: Common shares outstanding as of June 30, 2026 are 158,432,520. 1. Represents VWAP of shares repurchased. 2. Common shares outstanding are as of March 17, 2025 for Full Year 2025, December 31, 2025 for 1Q26, and March 31, 2026 for 2Q26. Total is based on share count from commencement of share repurchase program as of March 17, 2025. Delivering shareholder value through share repurchases Share repurchases Second Quarter 2026 Earnings | 29 Share Repurchase Activity FY25 1Q26 2Q26 Total Repurchase Amount $185,498,388 $31,942,722 - $217,441,110 Price Per Share(1) $13.59 $18.68 - $14.16 Number of Shares Repurchased 13,648,429 1,709,935 - 15,358,364 Common Shares Outstanding(2) 169,083,588 155,533,403 154,262,045 169,083,588 % of Shares Repurchased 8.1% 1.1% 0.0% 9.1%
Diversified NDFI exposure with history of minimal losses NDFI Lending Exposure Note: Asset quality metrics are based on loans and leases HFI. Mortgage Warehouse includes warehouse lines to mortgage originators, Fund Finance includes capital call facilities, Consumer Credit includes auto and consumer lending, Other Mortgage Credit includes mortgage rediscount lending and Business Credit includes small business lending. 1. 10-year+ historical NCO rate represents average quarterly net loss rate annualized since 1Q15. 2. Includes loans within Commercial & Community Banking segment. HIGHLIGHTS ❖ Long history of strong asset quality performance with almost no delinquencies, NPLs or classified loans ❖ Only three charge-offs over the last 10 years including one that resulted in nearly full recovery ❖ Careful client screening focuses on established operators with extensive, stable performance history ❖ In-house audit team conducts anti-fraud measures including monthly testing of underlying collateral, cash collections and payments history and periodic mortgage title checks ❖ Majority of loans are handled by the bank alone. Partner banks limited to banks with fraud, audit and control frameworks aligned with our rigorous standards NDFI Lending Exposure ❖ Business Credit, Consumer Credit, and Other Mortgage Credit are primarily within our Lender Finance business Loan Type ($ in millions) 2Q26 Loan Balance 2Q26 % of Total Loans HFI 2Q26 NPL % of Total Loans HFI 2Q26 DQ % of Total Loans HFI 2Q26 Classified % of Total Loans HFI 10-Year+ Historical NCO Rate(1) Mortgage Warehouse $1,681 6.9% 0.00% 0.00% 0.00% 0.052% Fund Finance(2) 1,536 6.3% 0.00% 0.00% 0.00% 0.000% Consumer Credit 961 4.0% 0.00% 0.00% 0.00% 0.000% Other Mortgage Credit 490 2.0% 0.00% 0.00% 0.00% 0.022% Business Credit 510 2.1% 0.00% 0.00% 0.00% 0.000% Other NDFI 41 0.2% 0.00% 0.00% 0.00% 0.000% Total NDFI Portfolio HFI $5,219 21.6% 0.00% 0.00% 0.00% 0.018% Total Core Loan Portfolio HFI $23,592 97.4% 0.82% 0.68% 2.42% Total Loans and Leases HFI $24,211 100.0% 0.84% 0.72% 2.41% Second Quarter 2026 Earnings | 30
❖ 76% of total CRE portfolio located in California ❖ Total CRE has a low weighted average LTV of 58% ❖ Other Property Types includes mobile homes, gas stations, special use, schools, places of worship and restaurants 8.0% 7.7% 5.4% 2.9% 2.3% 2.9% 1.7% 2.1% Office Industrial Retail Hotel Self Storage Health Facility Mixed Use Other Other CRE as % of Total CRE Total CRE is well diversified across multiple industries • Total CRE comprises 43% of total loans HFI and Other CRE comprises 14% of total loans HFI • 82% of office collateral located in California, 12% in Colorado and 6% in other states • Multifamily has a low average LTV and a strong DSCR coverage ratio of 1.3x Note: CRE excludes government guaranteed CRE collateralized SBA loans. 1. Represents most recent appraisal or weighted-average LTV at origination. CRE portfolio has low weighted-average LTV and strong debt-service coverage ratio (DSCR) HIGHLIGHTS CRE Portfolio Property Type ($ in millions) Count 2Q26 1Q26 2Q26 % of Total CRE 2Q26 % of Total Loans HFI Avg Loan Size WA LTV(1) DSCR NPL % NPL $ Multifamily 1,196 $5,445 $5,955 53% 22% $4.6 58% 1.34 0.21% $11.6 Real Estate Construction 171 1,475 1,892 14% 6% 8.6 66% - 0.16% 2.4 Other CRE 920 3,405 3,444 33% 14% 3.7 53% 2.02 1.88% 64.2 Office 182 829 855 8% 3% 4.6 61% 2.35 7.24% 60.1 Industrial / Warehouse 304 796 760 8% 3% 2.6 48% 2.03 0.00% 0.0 Retail 172 555 580 5% 2% 3.2 52% 1.56 0.07% 0.4 Hotel 27 294 333 3% 1% 10.9 51% 2.26 0.84% 2.5 Self Storage 39 242 235 2% 1% 6.2 56% 1.44 0.00% 0.0 Mixed Use 34 222 208 2% 1% 6.5 51% 1.50 0.00% 0.0 Health Facility 25 171 181 2% 1% 6.8 57% 2.46 0.67% 1.1 Other Property Types 137 295 293 3% 1% 2.2 47% 2.36 0.04% 0.1 Total CRE 2,287 $10,325 $11,292 100% 43% $4.5 58% 1.60 0.76% $78.2 Second Quarter 2026 Earnings | 31
Noninterest Expense Detail ($mm) $26.6 $9.4 $61.5 $88.4 2Q25 $26.2 $9.0 $61.6 $88.9 3Q25 $24.9 $7.1 $62.8 $85.9 4Q25 $23.7 $6.8 $59.8 $91.1 1Q26 $24.1 $14.5 $66.1 $85.1 2Q26 $185.9 $185.7 $180.6 $181.4 $189.9 Compensation expense Other operating expenses Insurance and assessments Customer related expense Customer Related Expense ($mm) $21.9 $4.7 2Q25 $21.7 $4.6 3Q25 $20.7 $4.1 4Q25 $19.8 $3.9 1Q26 2Q26 $26.6 $26.2 $24.9 $23.7 $24.1 $20.4 $3.7 ECR Expense Other(1) 1. Other customer related expense includes deposit referral fees, armored car services, check printing expenses, and other miscellaneous expenses. ECR expenses remained relatively flat 2Q25 3Q25 4Q25 1Q26 2Q26 $3,728 $3,708 $3,697 $3,891 $3,951 Average HOA Deposits ($mm) Customer Related Expense HIGHLIGHTS ❖ Substantially all HOA deposits have ECR expenses ❖ Average HOA balances increased due to business growth ❖ Total HOA deposit costs are 2.76% consisting of ECR expenses of 207 bps and deposit rate costs (through NIM) of 69 bps ❖ ECR indexed to Fed Funds rate with every 25 bps change corresponding to ~$6mm of annual ECR expense Second Quarter 2026 Earnings | 32
Expect total project and investment spend of ~$17mm in 2026, with ~$5.8mm of planned expense in 2026 Project investment composition Revenue enhancing projects Back office and support projects Projects and Investments Note: Total project and investment spend includes costs that are both capitalized and expensed. Second Quarter 2026 Earnings | 33 19% 81% Revenue Enhancing Back Office and Support Projects $3.2mm $13.8mm 18% 51% 31% Infrastructure Optimization/Scalability Regulatory/Compliance $7.0mm $4.3mm $2.5mm 13% 28% 59% Sales Enablement Payments Business Specific $0.9mm $1.9mm $0.4mm
❖Uninsured and uncollateralized deposits of $7.6B, which represents ~27% of total deposits ❖Total primary and secondary liquidity was 1.8x uninsured and uncollateralized deposits Maintaining high levels of primary and secondary liquidity 1. Cash and cash equivalents figure presented as Bank only, excludes restricted cash. 2. Net of 6.1% haircut as of June 30, 2026. ($ in millions) 2Q26 Current Availability Utilization Capacity Primary Liquidity Cash and cash equivalents $2,646 AFS Securities (unpledged) 3,556 Total Primary Liquidity 6,202 Total Secondary Liquidity 7,905 2,961 10,866 Total Primary + Secondary Liquidity $14,107 Definitions Secondary Liquidity: Net available borrowing capacity with the FHLB and FRB. Primary liquidity: Cash and cash equivalents (excluding restricted cash) and the market value of unencumbered Available-For-Sale (“AFS”) securities, net of a haircut. These assets are (i) unencumbered, (ii) readily available for use, and (iii) can be readily sold or pledged under normal operating conditions and under a range of stress conditions. (1) (2) Liquidity HIGHLIGHTS Second Quarter 2026 Earnings | 34
Experienced Management Team with Track Record of Success at Leading Institutions Scott Ladd Chief Credit Officer for Specialty Banking and Credit Operations 25+ years banking and consulting experience, previously served as EVP, Group Head, Portfolio Management at PacWest Bancorp Hamid Hussain President of the Bank 30+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo Bryan Corsini Chief Credit Officer 35+ years of banking experience, previously served as CCO of PacWest Bancorp and Director of Pacific Western Bank Ido Dotan General Counsel and Chief Administrative Officer 20+ years experience in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings Olivia Lindsay Chief Risk Officer 25+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank Steve Schwimmer Chief Information Officer 30+ years of experience in banking technology, previously served as the EVP, Chief Innovation Officer at PacWest Bancorp Sean Lynden President, Venture Banking Group 30+ years of banking and related experience. Previously served as President of Venture Banking Group for Pacific Western Bank Kim Tu EVP, Chief People Officer 15+ years of banking and financial services experience across Human Resources. Previously held HR leadership roles at Mr. Cooper and JPMorgan Chase Karen Hon Chief Accounting Officer & Deputy Chief Financial Officer 25+ years of finance & accounting experience, previously served as Chief Accounting Officer at Silicon Valley Bank Jared Wolff Chairman and Chief Executive Officer 30+ years of banking and law. Previously held senior executive positions with City National Bank (RBC) and PacWest Bancorp Joe Kauder Chief Financial Officer 30+ years of banking experience, previously served as EVP, CFO Wells Fargo Wholesale Banking Bill Rhodes Chief Internal Audit Officer 25+ years of banking and internal audit experience, previously served as CAE of Coastal Community Bank and Deputy CAE of Silicon Valley Bank Joe Rice Vice Chairman and Senior EVP 30+ years of banking and related experience. Previously served as Chief Credit Officer and Chief Operational Risk Officer at Wells Fargo Second Quarter 2026 Earnings | 35
Appendix
Non-GAAP Financial Information Tangible assets, tangible common equity, tangible common equity ratio, tangible book value per common share, adjusted net earnings, adjusted return on average assets (“ROAA”), return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision (“PTPP”) income, adjusted noninterest expense, efficiency ratio, adjusted efficiency ratio, adjusted ACL ratio, and economic coverage ratio constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Tangible common equity is calculated by subtracting preferred stock and goodwill and other intangible assets, as applicable, from stockholders’ 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 and goodwill impairment, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution. Adjusted net earnings is calculated by adjusting net earnings by unusual, one-time items. ROAA is calculated by dividing annualized net earnings by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings by average assets. PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted noninterest expense is calculated by subtracting customer related expenses from noninterest expense. Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net interest income and noninterest income, less gain (loss) on securities AFS). Adjusted efficiency ratio is calculated by dividing adjusted noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs, customer related expenses and any unusual one-item items) by adjusted total revenue (the sum of net interest income and noninterest income, less gain (loss) on securities AFS and customer related expense). Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit- linked notes and unearned credit mark from purchase accounting by loans and leases held for investment. Core deposits is calculated as total deposits less brokered CDs and brokered non-maturity deposits. Core loan portfolio is calculated as total loans held for investment less premium finance loans, student loans, and Civic loans. Adjusted ACL ratio is calculated by dividing adjusted ACL for lower loss loan categories by adjusted loans and leases held for investment. 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 on pages 38-47 provide reconciliations of the non-GAAP measures to financial measures defined by GAAP. Second Quarter 2026 Earnings | 37
Non-GAAP Reconciliation 1. Tangible common equity divided by tangible assets. 2. Total common equity divided by common shares outstanding. 3. Tangible common equity divided by common shares outstanding. 4. Common shares outstanding include non-voting common stock equivalents that are participating securities. ($ in thousands, except per share data) 2Q26 1Q26 4Q25 3Q25 2Q25 Tangible Common Equity Ratio Total stockholders' equity $3,410,146 $3,553,326 $3,541,277 $3,466,739 $3,426,843 Less: preferred stock 498,516 498,516 498,516 498,516 498,516 Total common equity 2,911,630 3,054,810 3,042,761 2,968,223 2,928,327 Less: goodwill and intangible assets 307,230 313,612 319,808 326,444 333,451 Tangible common equity $2,604,400 $2,741,198 $2,722,953 $2,641,779 $2,594,876 Total assets 35,030,953 34,724,241 34,797,442 34,012,965 34,250,453 Less: goodwill and intangible assets 307,230 313,612 319,808 326,444 333,451 Tangible assets $34,723,723 $34,410,629 $34,477,634 $33,686,521 $33,917,002 Total stockholders' equity to total assets 9.73% 10.23% 10.18% 10.19% 10.01% Tangible common equity ratio(1) 7.50% 7.97% 7.90% 7.84% 7.65% Book value per common share(2) $18.38 $19.80 $19.56 $19.09 $18.58 Tangible book value per common share (TBVPS)(3) $16.44 $17.77 $17.51 $16.99 $16.46 Common shares outstanding(4) 158,432,520 154,262,045 155,533,403 155,522,693 157,647,137 Second Quarter 2026 Earnings | 38
1. Effective tax rates of 28.00%, 25.14%, 26.86%, 27.34%, and 23.12%, used for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively. 2. Annualized net (loss) earnings divided by average stockholders' equity. 3. Annualized adjusted net (loss) earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity. 4. Annualized adjusted net (loss) earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity. Non-GAAP Reconciliation Second Quarter 2026 Earnings | 39 ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Return on Average Tangible Common Equity ("ROATCE") Net (loss) earnings ($241,347) $71,952 $77,391 $69,629 $28,385 Adjustments: Intangible asset amortization 6,349 6,348 6,788 7,160 7,159 Tax impact of adjustment above (1) (1,778) (1,596) (1,823) (1,958) (1,655) Adjustment to net (loss) earnings 4,571 4,752 4,965 5,202 5,504 Adjusted net (loss) earnings for ROATCE (236,776) 76,704 82,356 74,831 33,889 Less: Preferred stock dividends 9,947 9,947 9,947 9,947 9,947 Adjusted net (loss) earnings available to common and equivalent stockholders for ROATCE ($246,723) $66,757 $72,409 $64,884 $23,942 Net (loss) earnings ($241,347) $71,952 $77,391 $69,629 $28,385 Adjustments: Intangible asset amortization 6,349 6,348 6,788 7,160 7,159 Provision for credit losses related to transfer of loans to held for sale - - - - 26,289 Total adjustments 6,349 6,348 6,788 7,160 33,448 Tax impact of adjustments above (1) (1,778) (1,596) (1,823) (1,958) (7,733) Income tax related adjustments - - - - 9,792 Adjustment to net (loss) earnings 4,571 4,752 4,965 5,202 35,507 Adjusted net (loss) earnings for adjusted ROATCE (236,776) 76,704 82,356 74,831 63,892 Less: Preferred stock dividends 9,947 9,947 9,947 9,947 9,947 Adjusted net (loss) earnings available to common and equivalent stockholders for adjusted ROATCE ($246,723) $66,757 $72,409 $64,884 $53,945 Average total stockholders' equity 3,545,141 3,548,700 3,494,157 3,437,335 3,430,143 Less: Average goodwill and intangible assets 311,068 317,215 323,295 330,277 337,352 Less: Average preferred stock 498,516 498,516 498,516 498,516 498,516 Average tangible common equity $2,735,557 $2,732,969 $2,672,346 $2,608,542 $2,594,275 Return on average equity (2) (27.31%) 8.22% 8.79% 8.04% 3.32% Return on average tangible common equity (3) (36.18%) 9.91% 10.75% 9.87% 3.70% Adjusted return on average tangible common equity (4) (36.18%) 9.91% 10.75% 9.87% 8.34%
1. Effective tax rates of 28.00%, 25.14%, 26.86%, 27.34%, and 23.12%, used for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively. 2. Adjusted net (loss) earnings available to common and equivalent stockholders divided by weighted average common shares outstanding. 3. Annualized net (loss) earnings divided by average assets. 4. Annualized adjusted net (loss) earnings divided by average assets. Non-GAAP Reconciliation Second Quarter 2026 Earnings | 40 ($ in thousands, except per share amounts) 2Q26 1Q26 4Q25 3Q25 2Q25 Net (loss) earnings ($241,347) $71,952 $77,391 $69,629 $28,385 Adjustments: Provision for credit losses related to transfer of loans to held for sale - - - - 26,289 Total Adjustments - - - - 26,289 Tax impact of adjustment above(1) - - - - (6,078) Income tax related adjustments - - - - 9,792 Adjustment to net (loss) earnings - - - - 30,003 Adjusted net (loss) earnings ($241,347) 71,952 77,391 69,629 58,388 Less: Preferred stock dividends 9,947 9,947 9,947 9,947 9,947 Adjusted net (loss) earnings available to common and equivalent stockholders ($251,294) $62,005 $67,444 $59,682 $48,441 Weighted average diluted common shares outstanding 155,803 160,832 160,094 159,051 158,462 Diluted earnings per common share ($1.61) $0.39 $0.42 $0.38 $0.12 Adjusted diluted earnings per common share(2) ($1.61) $0.39 $0.42 $0.38 $0.31 Average total assets $34,644,930 $34,002,701 $33,752,500 $33,831,217 $33,764,149 Return on average assets ("ROAA")(3) (2.79%) 0.86% 0.91% 0.82% 0.34% Adjusted ROAA(4) (2.79%) 0.86% 0.91% 0.82% 0.69% Adjusted Net (Loss) Earnings
Non-GAAP Reconciliation Second Quarter 2026 Earnings | 41 ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 PTPP (Loss) Income Net interest income $250,501 $251,617 $251,362 $253,444 $240,216 Add: Noninterest (loss) income (234,096) 35,328 41,571 34,285 32,633 Total revenue 16,405 286,945 292,933 287,729 272,849 Less: Noninterest expense (189,867) (181,391) (180,644) (185,684) (185,869) Pre-tax, pre-provision ("PTPP") (loss) income ($173,462) $105,554 $112,289 $102,045 $86,980
1. Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio. 2. Noninterest expense used for adjusted efficiency ratio divided by total revenue used for adjusted efficiency ratio. Non-GAAP Reconciliation ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Adjusted Efficiency Ratio Noninterest expense $189,867 $181,391 $180,644 $185,684 $185,869 Less: Intangible asset amortization (6,349) (6,348) (6,788) (7,160) (7,159) Noninterest expense used for efficiency ratio $183,518 $175,043 $173,856 $178,524 $178,710 Less: Customer related expense (24,114) (23,737) (24,870) (26,227) (26,577) Noninterest expense used for adjusted efficiency ratio $159,404 $151,306 $148,986 $152,297 $152,133 Net interest income $250,501 $251,617 $251,362 $253,444 $240,216 Noninterest (loss) income ($234,096) 35,328 41,571 34,285 32,633 Total Revenue $16,405 $286,945 $292,933 $287,729 $272,849 Add: Loss on securities AFS 256,749 - - - - Total revenue used for efficiency ratio $273,154 $286,945 $292,933 $287,729 $272,849 Less: Customer related expense (24,114) (23,737) (24,870) (26,227) (26,577) Total revenue used for adjusted efficiency ratio $249,040 $263,208 $268,063 $261,502 $246,272 Noninterest expense to total revenue 1157.37% 63.21% 61.67% 64.53% 68.12% Efficiency ratio(1) 67.18% 61.00% 59.35% 62.05% 65.50% Adjusted efficiency ratio(2) 64.01% 57.49% 55.58% 58.24% 61.77% Second Quarter 2026 Earnings | 42
($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Noninterest expense $189,867 $181,391 $180,644 $185,684 $185,869 Less: Customer related expense (24,114) (23,737) (24,870) (26,227) (26,577) Adjusted noninterest expense $165,753 $157,654 $155,774 $159,457 $159,292 Average assets $34,644,930 $34,002,701 $33,752,500 $33,831,217 $33,764,149 Noninterest expense to average total assets 2.20% 2.16% 2.12% 2.18% 2.21% Adjusted noninterest expense to average total assets 1.92% 1.88% 1.83% 1.87% 1.89% Adjusted Noninterest Expense to Average Total Assets Non-GAAP Reconciliation Second Quarter 2026 Earnings | 43
($ in millions) 2Q26 1Q26 2Q25 Total Deposits $28,121 $27,322 $27,528 Less: Brokered CDs (2,591) (2,562) (2,312) Less: Brokered Non-maturity Deposits (227) (226) (565) Total Core Deposits $25,303 $24,534 $24,652 Core Deposits Non-GAAP Reconciliation Second Quarter 2026 Earnings | 44
Non-GAAP Reconciliation ($ in millions) 2Q26 1Q26 Total Loans HFI $24,211 $24,780 Discontinued Area Loans: Less: Premium Finance Loans (356) (408) Less: Student Loans (238) (250) Less: Civic Loans (24) (27) Total Discontinued Area Loans (618) (685) Total Core Loans $23,592 $24,095 Core Loans Second Quarter 2026 Earnings | 45
Non-GAAP Reconciliation 1. Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with the non-PCD loans (purchased loans without credit deterioration at the time of the purchase) at the time of the acquisition. 2. Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans. 3. Allowance for credit losses divided by loans and leases held for investment. 4. Adjusted allowance for credit losses divided by loans and leases held for investment. ($ in thousands) 2Q26 1Q26 4Q25 3Q25 2Q25 Allowance for credit losses ("ACL") $276,240 $276,521 $280,533 $270,722 $258,565 Add: Unearned credit mark from purchase accounting (1) 12,920 14,315 15,865 17,496 19,199 Add: Credit-linked notes(2) 105,026 104,988 108,413 110,539 112,887 Adjusted allowance for credit losses $394,186 $395,824 $404,811 $398,757 $390,651 Loans and leases held for investment $24,210,846 $24,780,347 $25,032,679 $24,110,642 $24,245,893 ACL to loans and leases held for investment(3) 1.14% 1.12% 1.12% 1.12% 1.07% Economic coverage ratio(4) 1.63% 1.60% 1.62% 1.65% 1.61% Economic Coverage Ratio Second Quarter 2026 Earnings | 46
Non-GAAP Reconciliation 1. Lower loss loan categories include warehouse lending loans, equity fund loans, lender finance loans, and residential mortgage loans. 2. ACL divided by loans and leases held for investment. 3. Adjusted ACL for lower loss loan categories (includes SFR, Warehouse, Fund Finance, and Lender Finance) divided by adjusted loans and leases held for investment. ($ in thousands) 2Q26 Allowance for credit losses ("ACL") $276,240 Less: ACL on lower loss loan categories: ACL on warehouse lending loan portfolio (4,030) ACL on equity fund loan portfolio (461) ACL on lender finance loan portfolio (6,450) ACL on single family residential mortgage loans (6,034) Adjusted ACL for total lower loss loan categories(1) $259,266 Loans and leases held for investment $24,210,846 Less: Lower loss loan categories: Warehouse lending loan portfolio (1,680,730) Equity fund loan portfolio (1,504,497) Lender finance loan portfolio (2,017,200) Single family residential mortgage loans (3,769,706) Adjusted loans and leases held for investment(1) $15,238,714 ACL to loans and leases held for investment(2) 1.14% Adjusted ACL excluding SFR loans 1.32% Adjusted ACL excluding SFR and warehouse loans 1.42% Adjusted ACL for total lower loss loan categories to adjusted loans and leases held for investment(3) 1.70% Adjusted ACL for Lower Loss Loan Categories Ratio Second Quarter 2026 Earnings | 47