Equibles

8-K

BANC OF CALIFORNIA, INC. (BANC)

8-K 2020-04-29 For: 2020-04-29
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Added on April 10, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 29, 2020

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

Maryland 001-35522 04-3639825
(State or other jurisdiction<br><br>of incorporation) (Commission File Number) (IRS Employer<br><br>Identification No.)
3 MacArthur Place, Santa Ana, California 92707
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(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 7.375% Non-Cumulative Perpetual Preferred Stock, Series D BANC PRD New York Stock Exchange
Depositary Shares each representing a 1/40th Interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E BANC PRE New York Stock Exchange

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Item 2.02 Results of Operations and Financial Condition.

On April 29, 2020, Banc of California, Inc. (the “Company”) issued a press release announcing 2020 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 first quarter results at 10:00 A.M. Pacific Time on Wednesday, April 29, 2020. Interested parties may attend the conference call by dialing (888) 317-6003, and referencing event code 5112344. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor, in addition to the slide presentation for investor review prior to the call. A copy of the presentation materials is attached to this report as Exhibit 99.2 and is incorporated by reference herein.

Forward-Looking Statements

This Current Report on Form 8-K includes forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. In addition to those, statements about the potential effects of the COVID-19 pandemic on the business, financial results and condition of Banc of California, Inc. and its subsidiaries may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the control of Banc of California, Inc., including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Banc of California Inc. and its subsidiaries, their customers and third parties. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

99.1

Banc of California, Inc. Press Release dated April 29, 2020.

99.2

Banc of California, Inc. Earnings Conference Call Presentation Materials dated April 29, 2020.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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

BANC OF CALIFORNIA, INC.

April 29, 2020 /s/ Lynn M. Hopkins
Lynn M. Hopkins
Executive Vice President and Chief Financial Officer

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		Exhibit

EX. 99.1

logoa07.jpg

Banc of California Reports First Quarter 2020 Financial Results

SANTA ANA, Calif., (April 29, 2020) — Banc of California, Inc. (NYSE: BANC) today reported net loss available to common stockholders for the first quarter of 2020 of $9.7 million, or diluted loss per common share of $0.19.

First quarter results included:

• Common Equity Tier 1 capital at 11.57%
• Noninterest-bearing deposit balances increased $167.6 million to 23% of total deposits, up from 20%
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• Total DDA balances increased $206.1 million to 51% of total deposits
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• End of period deposit costs dropped to 0.89%; average total deposit costs decreased 16 basis points to 1.11%
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• Allowance for credit losses increased to 1.45% of total loans, up from 1.04%
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• Day 2 CECL provision for credit losses of $15.8 million
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Jared Wolff, President & CEO of Banc of California, commented, “Our first quarter results demonstrate our continued progress transforming Banc of California into a relationship focused business bank. Our work over the past 15 months to de-risk our balance sheet created significant excess capital to help absorb first quarter COVID-19 and CECL-related provisions while remaining very well-capitalized. As a result of our ongoing balance sheet transformation, we have also substantially increased our noninterest-bearing and low-cost deposits as a percent of total deposits. For 2020, while remaining vigilant about credit, we will continue to look to improve the deposit franchise, remix our loan portfolio towards relationship lending, and opportunistically deploy capital for the benefit of shareholders, building franchise value for the long term.”

Mr. Wolff continued, "During this time of uncertainty caused by the COVID-19 pandemic, we are focused on keeping our employees safe and healthy, so we can support our clients and our communities. We are actively assisting our clients who are experiencing disruption and hardship during these times. We are particularly proud of our colleagues who have been tireless in those efforts on the front lines and behind the scenes. At this time, we are demonstrating what true relationship banking is all about, solidifying relationships with existing clients and building new relationships as well."

Lynn Hopkins, Chief Financial Officer of Banc of California said, "We finished the first quarter in a strong financial position, with healthy capital levels, increased on-balance sheet liquidity, and continued growth in noninterest bearing and demand deposits. Net income was negatively impacted by a $15.8 million provision for credit losses under CECL and in response to the pandemic. Excluding the impact of the provision for credit losses and certain non-core expenses, pre-tax income was $10.6 million, and benefited from a $5 million reduction in core expenses that was set in motion before the crisis, and put us in a better position to operate with the lower revenues from the economic disruption and significant cuts in market interest rates.  Our net interest margin held up relatively well at 2.97% against these rate cuts, as our dedicated and proactive deposit efforts lowered deposit costs another 16 basis points to an average of 1.11% for the first quarter, and ended the period with a spot rate of 89 basis points. This quarter marked the fifth consecutive quarter of growth in average noninterest-bearing deposits. While the economic outlook remains uncertain, our healthy reserves and strong capital position will serve the Company well with the potential challenges ahead, as we continue to focus on closely managing credit, actively improving the mix and cost of deposits, reducing expenses, and continuing to strengthen our balance sheet."

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EX. 99.1

COVID-19 Operational Update

With the onset of the COVID-19 pandemic, we successfully implemented our business continuity plan to enable our team to work remotely while continuing to serve our clients with as little disruption as possible. Early in March, we took meaningful steps to transition our team members to a "work from home" environment and we have over 80% of our team working remotely. We continue to operate 25 of our 31 branches as we temporarily consolidated some overlapping areas to ensure an adequate balance between employee and client safety and business continuity to meet our clients' banking needs. For the Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we redeployed resources to this program in support of our clients and others seeking financial relief under the program. As of April 28, 2020, we estimate we helped our clients save over 8,500 jobs through pending applications or approvals for more than $270 million in PPP funds. We expect to earn fees of just under 3% on the total amount that ultimately funds. We are actively engaged with our borrowers who are seeking payment relief and waiving certain fees for impacted clients.

Adoption of the Current Expected Credit Loss (CECL) Model

On January 1, 2020, we adopted the new accounting standard, commonly known as CECL, which uses a current expected credit loss model for determining allowance for credit losses (ACL). Upon adoption, we recognized a Day 1 increase in the ACL of $6.4 million and a related after-tax decrease to retained earnings of $4.5 million. Our Day 1 ACL under the new CECL methodology totaled $68.1 million compared to $61.7 million under the incurred loss model at December 31, 2019, and represented 1.14% of total loans. We recorded a Day 2 provision for credit losses of $15.8 million which reflects the new CECL methodology using current economic forecasts and the estimated future impact of the COVID-19 pandemic on lifetime credit losses. At March 31, 2020, the ACL totaled $82.1 million resulting in an ACL to total loans coverage ratio of 1.45%, up from 1.04% at December 31, 2019. The ACL and provision for credit losses include amounts for unfunded commitments.

Income Statement Highlights

Three Months Ended
March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
( in thousands)
Total interest and dividend income $ 83,702 $ 92,657 $ 104,040 $ 110,712
Total interest expense 22,853 27,042 33,742 39,260 42,904
Net interest income 51,861 56,660 58,915 64,780 67,808
Total noninterest income (loss) 2,061 4,930 3,181 (2,290 ) 6,295
Total revenue 53,922 61,590 62,096 62,490 74,103
Total noninterest expense 46,919 47,483 43,240 43,500 62,249
Pre-tax / pre-provision income 7,003 14,107 18,856 18,990 11,854
Provision for (reversal of) credit losses 15,761 (2,976 ) 38,607 (1,900 ) 2,098
Income tax (benefit) expense (2,165 ) 2,811 (5,619 ) 4,308 2,719
Net (loss) income ) $ 14,272 $ (14,132 ) $ 16,582 $ 7,037
Net (loss) income available to common stockholders^(1)^ ) $ 10,415 $ (22,722 ) $ 11,909 $ 2,527

All values are in US Dollars.

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

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EX. 99.1

Net interest income

Net interest income decreased $4.8 million to $51.9 million for the first quarter due to the combination of lower average interest-earning assets and a lower net interest margin. Average interest-earning assets declined from the prior quarter by $354.7 million to $7.03 billion, including a $440.4 million reduction in average loans to $5.78 billion, and our net interest margin declined 7 basis points to 2.97%.

The lower net interest margin was due to a 23 basis point decline in the average yield on interest-earning assets to 4.27%, partially offset by a 14 basis point decline on the average cost of interest bearing liabilities to 1.71%. The decline in the earning asset yield was due mostly to lower yields on most interest-earning asset classes due to originating new business and repricing variable rate loans and investments in the lower interest rate environment given the cuts in the federal funds target rates during the current and prior quarters. On a linked-quarter basis, our average yield on loans declined 15 basis points to 4.56% and our average yield on securities decreased 42 basis points. The average yield for variable rate collateralized loan obligations (CLOs) was 3.60% for the first quarter compared to 3.81% for the fourth quarter as this investment class reprices quarterly.

The 14 basis point decline in the average cost of interest-bearing liabilities to 1.71% for the first quarter from 1.85% for the fourth quarter, was driven by the lower average cost of interest-bearing deposits and higher average noninterest-bearing deposits. The average cost of interest-bearing deposits declined 16 basis points to 1.41% from the prior quarter. Additionally, average noninterest-bearing deposits increased by $25.2 million, or 2.3%, and represented 21.4% of total average deposits in the first quarter. Our total cost of deposits decreased 16 basis points to 1.11% for the first quarter. The decrease in our funding cost is due to a lower reliance on high cost transaction accounts and wholesale funds as we have managed down the balance sheet and continue to execute on our strategy to focus on relationship clients.

Provision for credit losses

We recognized a provision for credit losses of $15.8 million under the CECL model compared to a recovery of credit losses of $3.0 million in the prior quarter under the incurred loss model. Our provision for credit losses includes $1.1 million related to unfunded commitments. The higher provision for credit losses was driven by using the new CECL model, the estimated future impact of the health crisis on our loans, and net charge-offs, partially offset by lower period end loan balances of $284.4 million. For the first quarter, approximately $19 million of the provision for credit losses was attributed to the change in the economic forecast.

Noninterest income

Noninterest income decreased $2.9 million, or 58%, to $2.1 million for the first quarter from the prior quarter. The decrease was primarily due to the impact of lower market interest rates on certain assets subject to fair value accounting including a $1.6 million decrease in the fair value of loans held for sale, a $333 thousand decrease in the fair value of customer-related loan swaps, and a $166 thousand decrease in the value of servicing assets due mostly to the impact of prepayment assumptions. In addition, the prior quarter included a $650 thousand insurance recovery; there was no similar insurance recovery in the current quarter. These decreases were offset in part by lower net losses on sales of loans of $860 thousand.

Noninterest expense

Noninterest expense decreased $564 thousand to $46.9 million for the first quarter compared to the prior quarter. Noninterest expense decreased due to: (1) lower salaries and benefits expense of $600 thousand primarily related to lower headcount and loan production-based incentives, (2) lower regulatory assessments of $1.4 million related to changes in the size of our asset base and an FDIC assessment credit, and (3) lower restructuring expense of $1.6 million as the prior quarter included certain severance costs compared to none in the current quarter. These decreases were offset in part by higher professional fees of $3.4 million as a result of the timing of certain legal costs and recoveries compared to the prior quarter, and a $866 thousand increase in loss on investments in alternative energy partnerships. The change in professional fees attributed to the timing difference of certain indemnified legal costs and recoveries was $1.7 million. When such indemnified legal costs and recoveries are excluded, professional fees would have decreased $1.9 million from the prior quarter and totaled $4.3 million for the first quarter. Other includes an $850 thousand charge to settle a legacy lending claim from an acquired bank; there was no similar item in the prior quarter. Total operating costs, defined as noninterest expense adjusted for certain non-core items (refer to section Non-GAAP Measures), decreased $5.0 million to $43.3 million for the first quarter compared to the prior quarter.

Income taxes

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EX. 99.1

Income tax benefit totaled $2.2 million for the first quarter resulting in an effective tax rate of 24.7%. This compares to a $2.8 million expense for the fourth quarter and an effective tax benefit rate of 16.5%. The estimated effective tax rate for 2020 is approximately 25%.

Balance Sheet

At March 31, 2020, total assets were $7.66 billion, which represented a linked quarter decrease of $165.8 million, consistent with our strategic shift towards reducing non-core assets and focus on relationship lending. The following table shows selected balance sheet line items as of the dates indicated.

As of and for the Three Months Ended Amount Change
March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019 Q1-20 vs. Q4-19 Q1-20 vs. Q1-19
( in thousands)
Total assets $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 $ (165,803 ) $ (2,223,918 )
Securities available-for-sale $ 912,580 $ 775,662 $ 1,167,687 $ 1,471,303 $ 56,847 $ (501,876 )
Loans held-for-investment $ 5,951,885 $ 6,383,259 $ 6,719,570 $ 7,557,200 $ (284,421 ) $ (1,889,736 )
Loans held-for-sale $ 22,642 $ 23,936 $ 597,720 $ 25,191 $ (2,408 ) $ (4,957 )
Demand deposits $ 2,622,398 $ 2,602,011 $ 2,510,233 $ 2,690,738 $ 206,072 $ 137,732
Other core deposits 2,515,703 2,794,769 3,074,936 3,301,080 3,575,140 (279,066 ) (1,059,437 )
Brokered deposits 218,665 10,000 93,111 480,977 1,459,054 208,665 (1,240,389 )
Total Deposits $ 5,427,167 $ 5,770,058 $ 6,292,290 $ 7,724,932 $ 135,671 $ (2,162,094 )
As percentage of total deposits
Demand deposits 50.85 % 48.32 % 45.10 % 39.89 % 34.83 % 2.53 % 16.02 %
Other core deposits 45.22 % 51.50 % 53.29 % 52.46 % 46.28 % (6.28 )% (1.06 )%
Brokered deposits 3.93 % 0.18 % 1.61 % 7.64 % 18.89 % 3.75 % (14.96 )%
Average loan yield 4.56 % 4.71 % 4.75 % 4.80 % 4.76 % (0.15 )% (0.20 )%
Average cost of interest-bearing deposits 1.41 % 1.57 % 1.78 % 1.89 % 1.92 % (0.16 )% (0.51 )%
Average cost of deposits 1.11 % 1.27 % 1.48 % 1.62 % 1.67 % (0.16 )% (0.56 )%

All values are in US Dollars.

Investments

Securities available-for-sale increased $56.8 million to $969.4 million at March 31, 2020, primarily due to purchases of $147.4 million of corporate debt and government agency securities, offset by net CLO maturities of $30.0 million and a higher net unrealized loss of $59.9 million due to changes in market prices and expectations attributed mainly to the estimated impact of the COVID-19 pandemic. The CLOs are AA and AAA rated and the carrying value includes an unrealized net loss of $80.0 million. As of March 31, 2020, our securities portfolio included $623.6 million of CLOs, $243.4 million of agency securities, $54.4 million of municipal securities, and $47.9 million of corporate debt securities.

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EX. 99.1

Loans

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

March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
( in thousands)
Composition of held-for-investment loans
Commercial real estate $ 818,817 $ 891,029 $ 856,497 $ 865,521
Multifamily 1,466,083 1,494,528 1,563,757 1,598,978 2,332,527
Construction 227,947 231,350 228,561 209,029 211,549
Commercial and industrial 1,578,223 1,691,270 1,789,478 1,951,707 1,907,102
SBA 70,583 70,981 75,359 80,929 74,998
Total commercial loans 4,152,860 4,306,946 4,548,184 4,697,140 5,391,697
Single-family residential mortgage 1,467,375 1,590,774 1,775,953 1,961,065 2,102,694
Other consumer 47,229 54,165 59,122 61,365 62,809
Total consumer loans 1,514,604 1,644,939 1,835,075 2,022,430 2,165,503
Total gross loans $ 5,951,885 $ 6,383,259 $ 6,719,570 $ 7,557,200
Composition percentage of held-for-investment loans
Commercial real estate 14.3 % 13.8 % 14.0 % 12.7 % 11.5 %
Multifamily 25.9 % 25.1 % 24.5 % 23.8 % 30.9 %
Construction 4.0 % 3.9 % 3.6 % 3.1 % 2.8 %
Commercial and industrial 27.9 % 28.4 % 28.0 % 29.1 % 25.2 %
SBA 1.2 % 1.2 % 1.2 % 1.2 % 1.0 %
Total commercial loans 73.3 % 72.4 % 71.3 % 69.9 % 71.4 %
Single-family residential mortgage 25.9 % 26.7 % 27.8 % 29.2 % 27.8 %
Other consumer 0.8 % 0.9 % 0.9 % 0.9 % 0.8 %
Total consumer loans 26.7 % 27.6 % 28.7 % 30.1 % 28.6 %
Total gross loans 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Held-for-investment loans decreased $284.4 million to $5.67 billion from the prior quarter, due mostly to lower single-family residential mortgage loans of $123.4 million, lower commercial and industrial (C&I) loans of $113.0 million, and lower multifamily loans of $28.4 million. The decline in single-family residential is attributed to accelerated payoffs as the loans refinance away in the lower rate environment and proceeds are invested in other core business loans. The decline in C&I loans is primarily in response to strategically reducing certain credit facilities in response to the changed economic landscape and corresponding lower outstanding balances. The impact of the COVID-19 pandemic tempered loan production for the last part of the quarter and we did not experience any significant increase in credit line usage.

We continue to remix our real estate loan portfolio toward relationship-based multifamily, bridge, light infill construction, and commercial real estate loans. We are no longer originating single-family residential mortgage loans. Single-family residential mortgage and multifamily loans comprise 51.8% of the total held-for-investment loan portfolio as compared to 58.7% one year ago. Commercial real estate loans comprised 14.3% of the loan portfolio and commercial and industrial loans constituted 27.9%. Currently, loans secured by residential real estate (single-family, multifamily, single-family construction, and credit facilities) represent approximately 83% of our total loans outstanding.

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EX. 99.1

The C&I portfolio has limited exposure to certain business sectors undergoing severe stress, as demonstrated by the following (as a percentage of total outstanding C&I loan balances):

March 31, 2020
Amount % of Portfolio
C&I Portfolio by Industry ( in thousands)
Real estate and rental and leasing 13 %
Retail trade 116,202 7 %
Finance and insurance 872,049 55 %
Manufacturing 73,299 5 %
Healthcare and social assistance 54,091 3 %
Wholesale trade 43,285 3 %
Accommodation and food services 31,867 2 %
All other 182,224 12 %
100 %

All values are in US Dollars.

Deposits

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

March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
( in thousands)
Composition of deposits
Noninterest-bearing checking $ 1,088,516 $ 1,107,442 $ 993,745 $ 1,120,700
Interest-bearing checking 1,572,389 1,533,882 1,503,208 1,577,901 1,573,499
Money market 575,820 715,479 695,530 800,898 899,330
Savings 877,947 885,246 1,042,162 1,061,115 1,151,442
Non-brokered certificates of deposit 1,071,936 1,204,044 1,367,284 1,479,137 1,684,895
Brokered certificates of deposit 208,665 — 54,432 379,494 1,295,066
Total deposits $ 5,427,167 $ 5,770,058 $ 6,292,290 $ 7,724,932
Composition percentage of deposits
Noninterest-bearing checking 22.6 % 20.1 % 19.2 % 15.8 % 14.5 %
Interest-bearing checking 28.3 % 28.2 % 26.1 % 25.1 % 20.4 %
Money market 10.3 % 13.2 % 12.0 % 12.7 % 11.6 %
Savings 15.8 % 16.3 % 18.1 % 16.9 % 14.9 %
Non-brokered certificates of deposit 19.3 % 22.2 % 23.7 % 23.5 % 21.8 %
Brokered certificates of deposit 3.7 % — % 0.9 % 6.0 % 16.8 %
Total deposits 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Total deposits increased $135.7 million during the first quarter of 2020 to $5.56 billion due to higher noninterest-bearing checking balances of $167.6 million, interest-bearing checking balances of $38.5 million and brokered certificates of deposit balances of $208.7 million, offset by lower money market balances of $139.7 million, savings balances of $7.3 million, and non-brokered certificates of deposit balances of $132.1 million. We continue to focus on growing relationship-based deposits, strategically supplemented wholesale funding, as we proactively drive our funding costs down. Noninterest-bearing deposits totaled $1.26 billion and represented 22.6% of total deposits at March 31, 2020 compared to $1.09 billion and 20.1% at December 31, 2019 and $1.12 billion and 14.5% one year ago.

Debt

Advances from the FHLB decreased $217.0 million, or 18%, to $978.0 million, as of March 31, 2020, due to lower short term and overnight advances of $193.0 million and the maturity of $24.0 million in long term fixed-rate advances. At the end of the first quarter,

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EX. 99.1

FHLB advances included $90.0 million of overnight borrowings, $174.0 million maturing within three months, and $714.0 million maturing beyond three months with a weighted average life of 3.2 years and weighted average rate of 2.58%.

Equity

At March 31, 2020, total stockholders’ equity decreased by $72.2 million to $835.0 million on a linked-quarter basis, while tangible common equity decreased by $69.7 million to $606.4 million. The decrease in total stockholders’ equity related to the net loss of $6.6 million, the cumulative-effect adjustment of adoption of CECL of $4.5 million, dividends to common and preferred stockholders of $6.5 million, redemption of preferred stock of $1.6 million, repurchases of common stock under our previously announced share repurchase program of $12.0 million, and an increase in accumulated other comprehensive loss, net, of $42.2 million related to the lower fair value of CLOs and other securities available-for-sale.

In February 2020 we announced a share repurchase program for a total amount of $45.0 million and we repurchased 827,584 shares of common stock for an aggregate cost of $12.0 million. Given current macroeconomic conditions and the yet-to-be-determined impacts of the COVID-19 crisis, we have suspended common stock repurchases for the immediate future.

Capital ratios remain strong with total risk-based capital at 16.16% and a tier 1 leverage ratio of 11.20%. The following table sets forth our regulatory capital ratios at March 31, 2020 and the previous four quarters. The interim capital relief related to the adoption of CECL increased the Bank's leverage ratio approximately 10 basis points at March 31, 2020.

March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Capital Ratios^(1)^
Banc of California, Inc.
Total risk-based capital ratio 16.16 % 15.90 % 14.37 % 15.00 % 14.01 %
Tier 1 risk-based capital ratio 14.91 % 14.83 % 13.32 % 14.03 % 13.03 %
Common equity tier 1 capital ratio 11.57 % 11.56 % 10.34 % 10.50 % 9.72 %
Tier 1 leverage ratio 11.20 % 10.89 % 9.84 % 9.62 % 8.87 %
Banc of California, NA
Total risk-based capital ratio 18.21 % 17.46 % 15.65 % 16.70 % 15.79 %
Tier 1 risk-based capital ratio 16.96 % 16.39 % 14.60 % 15.73 % 14.81 %
Common equity tier 1 capital ratio 16.96 % 16.39 % 14.60 % 15.73 % 14.81 %
Tier 1 leverage ratio 12.67 % 12.02 % 10.75 % 10.80 % 10.07 %
(1) March 31, 2020 capital ratios are preliminary,
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EX. 99.1

Credit Quality

March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Asset quality information and ratios ( in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent $ 32,873 $ 39,122 $ 34,938 $ 44,840
90+ days delinquent 28,632 24,734 17,220 17,272 14,623
Total delinquent loans $ 57,607 $ 56,342 $ 52,210 $ 59,463
Total delinquent loans to total loans 1.50 % 0.97 % 0.88 % 0.78 % 0.79 %
Non-performing assets, excluding loans held-for-sale
Non-performing loans $ 43,354 $ 45,169 $ 28,499 $ 27,739
90+ days delinquent and still accruing loans — — — 275 731
Other real estate owned — — — 276 316
Non-performing assets $ 43,354 $ 45,169 $ 29,050 $ 28,786
ALL to non-performing loans 138.55 % 132.97 % 139.31 % 206.86 % 224.40 %
Non-performing loans to total loans held-for-investment 1.00 % 0.73 % 0.71 % 0.43 % 0.38 %
Non-performing assets to total assets 0.74 % 0.55 % 0.52 % 0.31 % 0.29 %
Troubled debt restructurings (TDRs)
Performing TDRs $ 6,620 $ 6,800 $ 20,245 $ 5,574
Non-performing TDRs 20,852 21,837 14,605 2,428 1,943
Total TDRs $ 28,457 $ 21,405 $ 22,673 $ 7,517

All values are in US Dollars.

Credit quality remains strong. Total delinquent loans increased $27.4 million in the first quarter to $85.0 million at March 31, 2020, due to $43.1 million of additions, offset by $8.5 million returning to current status and $7.3 million of principal payments or payoffs. Delinquent loans includes primarily legacy single-family residential mortgage loans, which account for 84% of the balance and $28.0 million of the increase quarter over quarter. Excluding delinquent legacy single-family loans, delinquent loans are $13.6 million, or 0.24%, of total loans at March 31, 2020. We ceased originating single-family mortgage loans in the second quarter of 2019.

Non-performing loans totaled $56.5 million as of March 31, 2020, of which $21.5 million or 38% of the balance relates to loans in a current payment status. The $13.1 million increase during the first quarter was primarily due to $14.1 million of loans being placed on nonaccrual status, offset by cured loans and payoffs. The quarter-end balance includes two large loans with delinquent payment status that comprise 45% of our total nonperforming loans, consisting of one $16.4 million legacy shared national credit and a $9.1 million single-family mortgage residential loan with a loan-to-value ratio of 67%. Aside from those two loans, nonperforming loans total $31.0 million, of which 49% relates to legacy single-family residential mortgage loans.

In light of the COVID-19 crisis, we have provided support to clients by granting loan deferments, when requested and supported by our borrowers. As of April 27, in our SFR portfolio, we had 122 active deferments on $123 million of principal balances, or approximately 8% of the portfolio. With respect to our non-SFR loan portfolio, as of April 27, we had 68 active deferments on $257 million of principal balances or 6% of our non-SFR portfolio. As with our entire portfolio, we will continue to actively monitor and manage our lending relationships in a manner that supports our clients and protects the bank.

8

EX. 99.1

Allowance for Credit Losses

Three Months Ended
March 31, 2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
( in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period $ 62,927 $ 59,523 $ 63,885 $ 62,192
Adoption of ASU 2016-13 ^(1)^ 7,609 — — — —
Loans charged off (2,076 ) (2,706 ) (35,546 ) (2,451 ) (1,063 )
Recoveries 350 106 410 76 244
Net charge-offs (1,726 ) (2,600 ) (35,136 ) (2,375 ) (819 )
Provision for (reversal of) loan losses 14,711 (2,678 ) 38,540 (1,987 ) 2,512
Balance at end of period 78,243 $ 57,649 $ 62,927 $ 59,523 $ 63,885
Reserve for unfunded loan commitments
Balance at beginning of period 4,064 4,362 4,295 4,208 4,622
Adoption of ASU 2016-13 ^(1)^ (1,226 ) — — — —
Provision for credit losses 1,050 (298 ) 67 87 (414 )
Balance at end of period 3,888 4,064 4,362 4,295 4,208
Allowance for credit losses (ACL) $ 61,713 $ 67,289 $ 63,818 $ 68,093
ALL to total loans 1.38 % 0.97 % 0.99 % 0.89 % 0.85 %
ACL to total loans 1.45 % 1.04 % 1.05 % 0.95 % 0.90 %
Annualized net loan charge-offs to average total loans held-for-investment 0.12 % 0.17 % 2.19 % 0.13 % 0.04 %
Reserve for loss on repurchased loans
Balance at beginning of period $ 6,561 $ 2,478 $ 2,486 $ 2,506
Initial provision for loan repurchases — — 4,415 53 96
Reversal of provision for loan repurchases (600 ) (360 ) (123 ) (61 ) (116 )
Utilization of reserve for loan repurchases — — (209 ) — —
Balance at end of period $ 6,201 $ 6,561 $ 2,478 $ 2,486

All values are in US Dollars.

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

The allowance for expected credit losses, which includes the reserve for unfunded loan commitments, totaled $82.1 million, or 1.45% of total loans at March 31, 2020 compared to $61.7 million or 1.04% at December 31, 2019. The $20.4 million increase in the allowance reflects a higher provision due to the earlier recognition of losses under CECL and the impact of the change in the economic forecast scenarios as of quarter end, including the expected impact of the COVID-19 pandemic on future losses. This increase includes a Day 1 transition adjustment amount of $6.4 million and a Day 2 provision of $15.8 million, offset by net charge-offs of $1.7 million. The net charge-offs included $1.1 million in C&I loans and $401 thousand in SFR mortgages. The ACL coverage of non-performing loans was 145% at March 31, 2020 compared to 142% at December 31, 2019.

Our ACL methodology and resulting provision is significantly impacted by the current economic uncertainty and volatility caused by the COVID-19 pandemic. Our ACL methodology uses a nationally-recognized, third party model that includes many assumptions based on our historical and peer loss data, our current loan portfolio risk profile, and economic forecasts. We used economic forecasts released by our model provider during the last week of March which included the onset of the pandemic. These forecasts included a sharp contraction in annualized GDP growth and a sharp spike in near-term unemployment rates ranging from 8% to 13%, before returning to moderate long-term economic trends. Our visibility at the end of the quarter indicated that local unemployment was heading higher and that the economic recovery would likely be slower. Accordingly, we incorporated qualitative factors to account for this visibility at quarter end related to actual conditions and an economic outlook that was worse than the late March forecasts incorporated into the CECL model. As a result of the COVID-19 pandemic and adoption of CECL, we expect our allowance for credit losses to continue to be impacted in future periods by economic

9

EX. 99.1

volatility, changing economic forecasts, as well as the related impacts to CECL model assumptions, all of which may be better than or worse than our current estimate.

The reserve for loss on repurchased loans decreased by $600 thousand in the first quarter due to continued runoff of principal balances associated with the multifamily loan securitization and single-family residential mortgage loans previously sold. This reduction in the associated sold balances results in reduced anticipated losses from repurchases.

The Company will host a conference call to discuss its first quarter 2020 financial results at 10:00 a.m. Pacific Time (PT) on Wednesday, April 29, 2020. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 5112344. A live audio webcast will also be available and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with approximately $7.7 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A. (the “Bank”). The Bank has 42 offices including 31 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. with the Securities and Exchange Commission. In addition to those, statements about the potential effects of the COVID-19 pandemic on the business, financial results and condition of Banc of California, Inc. and its subsidiaries may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the control of Banc of California, Inc., including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on Banc of California Inc. and its subsidiaries, their customers and third parties. You should not place undue reliance on forward-looking statements and Banc of California, Inc. undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

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

10

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)

March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
ASSETS
Cash and cash equivalents $ 435,992 $ 373,472 $ 526,874 $ 313,850 $ 304,705
Securities available-for-sale 969,427 912,580 775,662 1,167,687 1,471,303
Loans held-for-sale 20,234 22,642 23,936 597,720 25,191
Loans held-for-investment 5,667,464 5,951,885 6,383,259 6,719,570 7,557,200
Allowance for loan losses (78,243 ) (57,649 ) (62,927 ) (59,523 ) (63,885 )
Federal Home Loan Bank and other bank stock 57,237 59,420 71,679 76,373 55,794
Servicing rights, net 2,009 2,299 2,407 2,715 3,053
Other real estate owned, net — — — 276 316
Premises and equipment, net 127,379 128,021 128,979 129,227 130,417
Investments in alternative energy partnerships, net 27,347 29,300 27,039 26,633 26,578
Goodwill 37,144 37,144 37,144 37,144 37,144
Other intangible assets, net 3,722 4,151 4,605 5,105 5,726
Deferred income tax, net 63,849 44,906 45,950 42,798 45,111
Income tax receivable 7,198 4,233 4,459 2,547 4,787
Bank owned life insurance investment 110,397 109,819 108,720 108,132 107,552
Right of use assets 20,882 22,540 23,907 24,118 24,519
Due from unsettled securities sales — — 334,769 — —
Other assets 190,569 183,647 188,875 165,559 151,014
Total assets $ 7,662,607 $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits $ 1,256,081 $ 1,088,516 $ 1,107,442 $ 993,745 $ 1,120,700
Interest-bearing deposits 4,306,757 4,338,651 4,662,616 5,298,545 6,604,232
Total deposits 5,562,838 5,427,167 5,770,058 6,292,290 7,724,932
Advances from Federal Home Loan Bank 978,000 1,195,000 1,650,000 1,825,000 935,000
Notes payable, net 173,479 173,421 173,339 173,257 173,203
Reserve for loss on repurchased loans 5,601 6,201 6,561 2,478 2,486
Lease liabilities 22,075 23,692 25,210 25,457 25,893
Accrued expenses and other liabilities 85,612 95,684 99,181 77,905 76,686
Total liabilities 6,827,605 6,921,165 7,724,349 8,396,387 8,938,200
Commitments and contingent liabilities
Preferred stock 187,687 189,825 189,825 231,128 231,128
Common stock 520 520 520 520 518
Common stock, class B non-voting non-convertible 5 5 5 5 5
Additional paid-in capital 631,125 629,848 628,774 627,306 626,608
Retained earnings 110,640 127,733 120,221 146,039 136,943
Treasury stock (40,827 ) (28,786 ) (28,786 ) (28,786 ) (28,786 )
Accumulated other comprehensive loss, net (54,148 ) (11,900 ) (9,571 ) (12,668 ) (18,091 )
Total stockholders’ equity 835,002 907,245 900,988 963,544 948,325
Total liabilities and stockholders’ equity $ 7,662,607 $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525

11

EX. 99.1

Banc of California, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended
March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Interest and dividend income
Loans, including fees $ 65,534 $ 73,930 $ 80,287 $ 89,159 $ 90,558
Securities 7,820 7,812 10,024 12,457 17,841
Other interest-earning assets 1,360 1,960 2,346 2,424 2,313
Total interest and dividend income 74,714 83,702 92,657 104,040 110,712
Interest expense
Deposits 14,611 18,247 22,811 28,598 31,443
Federal Home Loan Bank advances 5,883 6,396 8,519 8,289 9,081
Notes payable and other interest-bearing liabilities 2,359 2,399 2,412 2,373 2,380
Total interest expense 22,853 27,042 33,742 39,260 42,904
Net interest income 51,861 56,660 58,915 64,780 67,808
Provision for (reversal of) credit losses 15,761 (2,976 ) 38,607 (1,900 ) 2,098
Net interest income after provision for (reversal of) credit losses 36,100 59,636 20,308 66,680 65,710
Noninterest income
Customer service fees 1,096 1,451 1,582 1,434 1,515
Loan servicing income 75 312 128 121 118
Income from bank owned life insurance 578 599 588 580 525
Impairment loss on investment securities — — (731 ) — —
Net gain (loss) on sale of securities available for sale — 3 (5,063 ) — 208
Fair value adjustment on loans held for sale (1,586 ) 30 16 59 1
Net (loss) gain on sale of loans (27 ) (863 ) 4,310 2,767 1,552
All other income (loss) 1,925 3,398 2,351 (7,251 ) 2,376
Total noninterest income (loss) 2,061 4,930 3,181 (2,290 ) 6,295
Noninterest expense
Salaries and employee benefits 23,436 24,036 25,934 27,506 28,439
Occupancy and equipment 7,243 7,900 7,767 7,955 7,686
Professional fees (reimbursement) 5,964 2,611 1,463 (2,903 ) 11,041
Data processing 1,773 1,684 1,568 1,672 1,496
Advertising 1,756 2,227 2,090 2,048 2,057
Regulatory assessments 484 1,854 1,239 2,136 2,482
Reversal of loan repurchase reserves (600 ) (360 ) (123 ) (61 ) (116 )
Amortization of intangible assets 429 454 500 621 620
Restructuring expense (reversal) — 1,626 — (158 ) 2,795
All other expenses 4,529 4,412 3,742 5,039 3,799
Total noninterest expense excluding loss (gain) on investments in alternative energy partnerships 45,014 46,444 44,180 43,855 60,299
Loss (gain) on investments in alternative energy partnerships 1,905 1,039 (940 ) (355 ) 1,950
Total noninterest expense 46,919 47,483 43,240 43,500 62,249
(Loss) income from operations before income taxes (8,758 ) 17,083 (19,751 ) 20,890 9,756
Income tax (benefit) expense (2,165 ) 2,811 (5,619 ) 4,308 2,719
Net (loss) income (6,593 ) 14,272 (14,132 ) 16,582 7,037
Preferred stock dividends 3,533 3,540 3,403 4,308 4,308
Income allocated to participating securities — 224 — 271 —
Participating securities dividends 94 93 94 94 202
Impact of preferred stock redemption (526 ) — 5,093 — —
Net (loss) income available to common stockholders $ (9,694 ) $ 10,415 $ (22,722 ) $ 11,909 $ 2,527
(Loss) earnings per common share:
Basic $ (0.19 ) $ 0.21 $ (0.45 ) $ 0.23 $ 0.05
Diluted $ (0.19 ) $ 0.20 $ (0.45 ) $ 0.23 $ 0.05
Weighted average number of common shares outstanding
Basic 50,464,777 50,699,915 50,882,227 50,857,137 50,676,722
Diluted 50,464,777 50,927,978 50,882,227 50,964,956 50,846,722
Dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.13

12

EX. 99.1

Banc of California, Inc.

Selected Financial Data

(Unaudited)

Three Months Ended
March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Profitability and other ratios of consolidated operations
Return on average assets^(1)^ (0.35 )% 0.71 % (0.64 )% 0.69 % 0.28 %
Return on average equity^(1)^ (2.89 )% 6.20 % (5.83 )% 6.91 % 2.98 %
Return on average tangible common equity^(2)^ (5.44 )% 6.46 % (12.49 )% 7.43 % 1.91 %
Dividend payout ratio^(3)^ (31.58 )% 28.57 % (13.33 )% 26.09 % 260.00 %
Net interest spread 2.56 % 2.65 % 2.47 % 2.50 % 2.47 %
Net interest margin^(1)^ 2.97 % 3.04 % 2.86 % 2.86 % 2.81 %
Noninterest income (loss) to total revenue^(4)^ 3.82 % 8.00 % 5.12 % (3.66 )% 8.49 %
Noninterest income (loss) to average total assets^(1)^ 0.11 % 0.25 % 0.15 % (0.10 )% 0.25 %
Noninterest expense to average total assets^(1)^ 2.50 % 2.35 % 1.98 % 1.82 % 2.43 %
Efficiency ratio^(2)(5)^ 87.01 % 77.10 % 69.63 % 69.61 % 84.00 %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships^(2)(5)^ 86.54 % 74.51 % 70.00 % 67.70 % 83.57 %
Average loans held-for-investment to average deposits 108.54 % 108.50 % 105.92 % 104.38 % 100.45 %
Average securities available-for-sale to average total assets 12.60 % 10.48 % 12.71 % 13.58 % 17.00 %
Average stockholders’ equity to average total assets 12.11 % 11.47 % 11.06 % 10.02 % 9.29 %
(1) Ratios are presented on an annualized basis.
--- ---
(2) The ratios are determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). See Non-GAAP measures section for reconciliation of the calculation.
--- ---
(3) The ratio is calculated by dividing dividends declared per common share by basic earnings per common share.
--- ---
(4) Total revenue is equal to the sum of net interest income before provision for credit losses and noninterest income (loss).
--- ---
(5) The ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income (loss).
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13

EX. 99.1

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)

Three Months Ended
March 31, 2020 December 31, 2019 September 30, 2019
Average Yield Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost Balance Interest / Cost
Interest earning assets
Loans held-for-sale $ 22,273 $ 220 3.97 % $ 23,527 $ 221 3.73 % $ 216,746 $ 1,894 3.47 %
SFR mortgage 1,532,967 15,295 4.01 % 1,689,228 16,788 3.94 % 1,866,103 19,179 4.08 %
Commercial real estate, multifamily, and construction 2,564,485 30,223 4.74 % 2,633,342 32,763 4.94 % 2,717,609 33,343 4.87 %
Commercial and industrial, SBA, and lease financing 1,613,324 19,157 4.78 % 1,821,064 23,381 5.09 % 1,840,202 24,970 5.38 %
Other consumer 47,761 639 5.38 % 54,088 777 5.70 % 58,652 901 6.09 %
Gross loans and leases 5,780,810 65,534 4.56 % 6,221,249 73,930 4.71 % 6,699,312 80,287 4.75 %
Securities 952,966 7,820 3.30 % 833,726 7,812 3.72 % 1,105,499 10,024 3.60 %
Other interest-earning assets 297,444 1,360 1.84 % 330,950 1,960 2.35 % 362,613 2,346 2.57 %
Total interest-earning assets 7,031,220 74,714 4.27 % 7,385,925 83,702 4.50 % 8,167,424 92,657 4.50 %
Allowance for loan losses (60,470 ) (61,642 ) (55,976 )
BOLI and noninterest earning assets 592,192 630,308 584,190
Total assets $ 7,562,942 $ 7,954,591 $ 8,695,638
Interest-bearing liabilities
Savings $ 890,830 $ 3,296 1.49 % $ 981,346 $ 3,889 1.57 % $ 1,055,086 $ 4,722 1.78 %
Interest-bearing checking 1,520,922 3,728 0.99 % 1,546,322 4,234 1.09 % 1,511,432 4,483 1.18 %
Money market 608,926 1,760 1.16 % 743,695 2,593 1.38 % 755,114 3,093 1.63 %
Certificates of deposit 1,151,518 5,827 2.04 % 1,332,911 7,531 2.24 % 1,750,970 10,513 2.38 %
Total interest-bearing deposits 4,172,196 14,611 1.41 % 4,604,274 18,247 1.57 % 5,072,602 22,811 1.78 %
FHLB advances 1,039,055 5,883 2.28 % 1,020,478 6,396 2.49 % 1,333,739 8,519 2.53 %
Securities sold under repurchase agreements — — — % 2,223 15 2.68 % 1,922 13 2.68 %
Long-term debt and other interest-bearing liabilities 174,056 2,359 5.45 % 174,092 2,384 5.43 % 174,111 2,399 5.47 %
Total interest-bearing liabilities 5,385,307 22,853 1.71 % 5,801,067 27,042 1.85 % 6,582,374 33,742 2.03 %
Noninterest-bearing deposits 1,133,306 1,108,077 1,047,858
Noninterest-bearing liabilities 128,282 132,698 103,667
Total liabilities 6,646,895 7,041,842 7,733,899
Total stockholders’ equity 916,047 912,749 961,739
Total liabilities and stockholders’ equity $ 7,562,942 $ 7,954,591 $ 8,695,638
Net interest income/spread $ 51,861 2.56 % $ 56,660 2.65 % $ 58,915 2.47 %
Net interest margin 2.97 % 3.04 % 2.86 %
Ratio of interest-earning assets to interest-bearing liabilities 130.56 % 127.32 % 124.08 %
Total deposits $ 5,305,502 $ 14,611 1.11 % $ 5,712,351 $ 18,247 1.27 % $ 6,120,460 $ 22,811 1.48 %
Total funding ^(1)^ $ 6,518,613 $ 22,853 1.41 % $ 6,909,144 $ 27,042 1.55 % $ 7,630,232 $ 33,742 1.75 %
(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
--- ---

14

EX. 99.1

Three Months Ended
June 30, 2019 March 31, 2019
Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost
Interest earning assets
Loans held-for-sale $ 47,233 $ 265 2.25 % $ 31,374 $ 228 2.95 %
SFR mortgage 2,059,704 21,390 4.17 % 2,312,900 24,062 4.22 %
Commercial real estate, multifamily, and construction 3,406,672 39,659 4.67 % 3,387,698 38,117 4.56 %
Commercial and industrial, SBA, and lease financing 1,872,289 26,940 5.77 % 1,920,221 27,235 5.75 %
Other consumer 59,806 905 6.07 % 62,558 916 5.94 %
Gross loans and leases 7,445,704 89,159 4.80 % 7,714,751 90,558 4.76 %
Securities 1,304,876 12,457 3.83 % 1,751,509 17,841 4.13 %
Other interest-earning assets 342,908 2,424 2.84 % 321,823 2,313 2.91 %
Total interest-earning assets 9,093,488 104,040 4.59 % 9,788,083 110,712 4.59 %
Allowance for loan losses (63,046 ) (61,924 )
BOLI and non-interest earning assets 580,133 575,558
Total assets $ 9,610,575 $ 10,301,717
Interest-bearing liabilities
Savings 1,083,571 4,950 1.83 % 1,201,802 5,480 1.85 %
Interest-bearing checking 1,580,165 4,554 1.16 % 1,554,846 4,525 1.18 %
Money market 853,007 3,902 1.83 % 887,538 4,128 1.89 %
Certificates of deposit 2,537,060 15,192 2.40 % 2,982,980 17,310 2.35 %
Total interest-bearing deposits 6,053,803 28,598 1.89 % 6,627,166 31,443 1.92 %
FHLB advances 1,287,121 8,289 2.58 % 1,422,100 9,081 2.59 %
Securities sold under repurchase agreements 2,173 16 2.95 % 2,350 18 3.11 %
Long-term debt and other interest-bearing liabilities 174,161 2,357 5.43 % 174,230 2,362 5.50 %
Total interest-bearing liabilities 7,517,258 39,260 2.09 % 8,225,846 42,904 2.12 %
Noninterest-bearing deposits 1,034,205 1,021,741
Non-interest-bearing liabilities 96,179 97,426
Total liabilities 8,647,642 9,345,013
Total stockholders’ equity 962,933 956,704
Total liabilities and stockholders’ equity $ 9,610,575 $ 10,301,717
Net interest income/spread $ 64,780 2.50 % $ 67,808 2.47 %
Net interest margin 2.86 % 2.81 %
Ratio of interest-earning assets to interest-bearing liabilities 120.97 % 118.99 %
Total deposits $ 7,088,008 $ 28,598 1.62 % $ 7,648,907 $ 31,443 1.67 %
Total funding ^(1)^ $ 8,551,463 $ 39,260 1.84 % $ 9,247,587 $ 42,904 1.88 %
(1) Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
--- ---

15

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

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

Return on average tangible common equity and efficiency ratio, as adjusted, tangible common equity, tangible common equity to tangible assets, and tangible common equity per common share constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible common equity is calculated by subtracting preferred stock, goodwill, and other intangible assets from stockholders' equity. Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

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

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

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

16

EX. 99.1

March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets $ 7,662,607 $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525
Less goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less other intangible assets (3,722 ) (4,151 ) (4,605 ) (5,105 ) (5,726 )
Tangible assets^(1)^ $ 7,621,741 $ 7,787,115 $ 8,583,588 $ 9,317,682 $ 9,843,655
Total stockholders' equity $ 835,002 $ 907,245 $ 900,988 $ 963,544 $ 948,325
Less goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less other intangible assets (3,722 ) (4,151 ) (4,605 ) (5,105 ) (5,726 )
Tangible equity^(1)^ 794,136 865,950 859,239 921,295 905,455
Less preferred stock (187,687 ) (189,825 ) (189,825 ) (231,128 ) (231,128 )
Tangible common equity^(1)^ $ 606,449 $ 676,125 $ 669,414 $ 690,167 $ 674,327
Total stockholders' equity to total assets 10.90 % 11.59 % 10.45 % 10.29 % 9.59 %
Tangible equity to tangible assets^(1)^ 10.42 % 11.12 % 10.01 % 9.89 % 9.20 %
Tangible common equity to tangible assets^(1)^ 7.96 % 8.68 % 7.80 % 7.41 % 6.85 %
Common shares outstanding 49,593,077 50,413,681 50,406,763 50,397,769 50,315,490
Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321
Total common shares outstanding 50,070,398 50,891,002 50,884,084 50,875,090 50,792,811
Tangible common equity per common share^(1)^ $ 12.11 $ 13.29 $ 13.16 $ 13.57 $ 13.28
Book value per common share $ 12.93 $ 14.10 $ 13.98 $ 14.40 $ 14.12

(1)Non-GAAP measure.

17

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Return on tangible common equity
Average total stockholders' equity $ 916,047 $ 912,749 $ 961,739 $ 962,933 $ 956,700
Less average preferred stock (189,607 ) (189,824 ) (213,619 ) (231,128 ) (231,128 )
Less average goodwill (37,144 ) (37,144 ) (37,144 ) (37,144 ) (37,144 )
Less average other intangible assets (4,003 ) (4,441 ) (4,935 ) (5,503 ) (6,128 )
Average tangible common equity^(1)^ $ 685,293 $ 681,340 $ 706,041 $ 689,158 $ 682,300
Net (loss) income $ (6,593 ) $ 14,272 $ (14,132 ) $ 16,582 $ 7,037
Less preferred stock dividends and impact of preferred stock redemption (3,007 ) (3,540 ) (8,496 ) (4,308 ) (4,308 )
Add amortization of intangible assets 429 454 500 621 620
Less tax effect on amortization and impairment of intangible assets (90 ) (95 ) (105 ) (130 ) (130 )
Net (loss) income available to common stockholders^(1)^ $ (9,261 ) $ 11,091 $ (22,233 ) $ 12,765 $ 3,219
Return on average equity (2.89 )% 6.20 % (5.83 )% 6.91 % 2.98 %
Return on average tangible common equity^(1)^ (5.44 )% 6.46 % (12.49 )% 7.43 % 1.91 %
Statutory tax rate utilized for calculating tax effect on amortization of intangible assets 21.00 % 21.00 % 21.00 % 21.00 % 21.00 % Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Adjusted efficiency ratio including the pre-tax effect of <br> investments in alternative energy partnerships
Noninterest expense $ 46,919 $ 47,483 $ 43,240 $ 43,500 $ 62,249
(Loss) gain on investments in alternative energy partnerships (1,905 ) (1,039 ) 940 355 (1,950 )
Adjusted noninterest expense^(1)^ $ 45,014 $ 46,444 $ 44,180 $ 43,855 $ 60,299
Net interest income $ 51,861 $ 56,660 $ 58,915 $ 64,780 $ 67,808
Noninterest income 2,061 4,930 3,181 (2,290 ) 6,295
Total revenue 53,922 61,590 62,096 62,490 74,103
Tax credit from investments in alternative energy partnerships — 1,689 77 1,680 —
Deferred tax expense on investments in alternative energy partnerships — (177 ) (8 ) (176 ) —
Tax effect on tax credit and deferred tax expense — 267 7 426 —
(Loss) gain on investments in alternative energy partnerships (1,905 ) (1,039 ) 940 355 (1,950 )
Total pre-tax adjustments for investments in alternative energy partnerships (1,905 ) 740 1,016 2,285 (1,950 )
Adjusted total revenue^(1)^ $ 52,017 $ 62,330 $ 63,112 $ 64,775 $ 72,153
Efficiency ratio^(1)^ 87.01 % 77.10 % 69.63 % 69.61 % 84.00 %
Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships^(1)^ 86.54 % 74.51 % 70.00 % 67.70 % 83.57 %
Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense 24.03 % 15.00 % 9.36 % 22.07 % 27.00 %

(1)Non-GAAP measure.

18

EX. 99.1

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
March 31, <br>2020 December 31, <br>2019 September 30, <br>2019 June 30, <br>2019 March 31, <br>2019
Total noninterest expense $ 46,919 $ 47,483 $ 43,240 $ 43,500 $ 62,249
Deductions for non-core items
Data processing — — — (797 ) —
Professional fees (recoveries) (1,678 ) 3,557 2,615 6,214 (2,979 )
Restructuring (expense) reversal — (1,626 ) — 158 (2,795 )
Other expenses — — (131 ) — —
Total non-core adjustments (1,678 ) 1,931 2,484 5,575 (5,774 )
(Loss) gain on investments in alternative energy partnerships (1,905 ) (1,039 ) 940 355 (1,950 )
Total adjustments (3,583 ) 892 3,424 5,930 (7,724 )
Adjusted noninterest expense^(1)^ $ 43,336 $ 48,375 $ 46,664 $ 49,430 $ 54,525
Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
March 31,<br>2020 December 31,<br>2019 September 30,<br>2019 June 30,<br>2019 March 31,<br>2019
Net interest income $ 51,861 $ 56,660 $ 58,915 $ 64,780 $ 67,808
Non-interest income 2,061 4,930 3,181 (2,290 ) 6,295
Total revenue $ 53,922 $ 61,590 $ 62,096 $ 62,490 $ 74,103
Noninterest expense 46,919 47,483 43,240 43,500 62,249
Pre-tax pre-provision income^(1)^ 7,003 14,107 18,856 18,990 11,854
Net interest income 51,861 56,660 58,915 64,780 67,808
Non-interest income 2,061 4,930 3,181 (2,290 ) 6,295
Total revenue 53,922 61,590 62,096 62,490 74,103
Noninterest expense 46,919 47,483 43,240 43,500 62,249
Total non-core adjustments (1,678 ) 1,931 2,484 5,575 (5,774 )
Noninterest expense after non-core adjustments 45,241 49,414 45,724 49,075 56,475
(Loss) gain on investment in alternative energy partnerships $ (1,905 ) $ (1,039 ) $ 940 $ 355 $ (1,950 )
Adjusted noninterest expense^(1)^ $ 43,336 $ 48,375 $ 46,664 $ 49,430 $ 54,525
Adjusted pre-tax pre-provision income^(1)^ $ 10,586 $ 13,215 $ 15,432 $ 13,060 $ 19,578

(1)Non-GAAP measure.

19

bancq12020investordeckfi

INVESTOR PRESENTATIONbancofcal.com 2020 First Quarter Earnings bancofcal.com

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

FIRST QUARTER 2020 RESULTS ($ in Thousands Except EPS) 1Q20 4Q19 1Q19 Net interest income $ 51,861 $ 56,660 $ 67,808 Pre-tax pre-provision income1 $ 7,003 $ 14,107 $ 11,854 Provision for credit losses $ 15,761 $ (2,976) $ 2,098 Net (loss) income $ (6,593) $ 14,272 $ 7,037 EPS $ (0.19) $ 0.20 $ 0.05 Average assets $ 7,563 $ 7,955 $ 10,302 Net interest margin 2.97% 3.04% 2.81% Allowance for Credit Losses Coverage Ratio 1.45% 1.04% 0.90% Tangible Common Equity to Tangible Assets1 7.96% 8.68% 6.85% Core deposits as % of total loans 94.3% 91.0% 82.9% • Strong capital ratios + reserve provide for buffer against uncertainty • Noninterest-bearing deposits increased $167.6 million to represent 23% of total deposits • Net loss of $6.6 million driven primarily by COVID-19 related credit loss provision under CECL method (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation First Quarter 2020 | 2

STRATEGIC PLAN THROUGH THE CRISIS High Capital • Common Equity Tier 1 ratio at 11.57% • Strategic de-risking of balance sheet in 2019 created significant excess capital Levels • Capital provides buffer against uncertainty and opportunity for value-enhancing investments • ACL coverage ratio of 1.45% • Provision of $15.8 million driven by adoption of CECL and effects of COVID-19 Strong Credit • Loan portfolio is primarily secured by residential real estate • Total loan portfolio has limited exposure to severely stressed business sectors such as energy, Metrics hotels, restaurants and retail • 43% of NPLs are single family residential mortgages with an average LTV of approximately 61% Continued • Noninterest-bearing deposits (NIB) increased $167.6 million, up 15% from the prior quarter, and now represent 23% of total deposits, up from 20% at year end Growth in NIB • DDA balances (NIB and interest checking) have grown from 35% to 51% since Q1 2019 and Low-Cost • Average cost of total deposits declined 16bps to 1.11% and ended the quarter with a spot rate of 89bps Deposits • Average cost of funds improved 14bps to 1.41% and ended the quarter with a spot rate of 1.17% Expense & • Core operating expenses1 decreased $5.0 million compared to the prior quarter • Increased on-balance sheet liquidity to 18% in response to unknown longer-term impacts of Liquidity the pandemic Management • Reduced reliance on wholesale funding (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation First Quarter 2020 | 3

PROACTIVE APPROACH TO ADDRESS COVID-19 UNCERTAINTY EMPLOYEES • Early implementation of business continuity plan, transitioned transition more than 80% of our team members to a remote work environment • Maintaining culture through weekly executive video updates, virtual Town Hall meetings and other events to inform and engage our team members • Adopted new operating procedures and adjusted branch hours to serve clients and keep employees safe during the COVID-19 pandemic CLIENTS • PPP applications for more than $270 million of funds as of April 28, 2020. • PPP funds estimated to save over 8,500 jobs • Proactive outreach to clients to identify risk and mitigation strategies, and engage with stressed borrowers • 122 active SFR payment deferrals for $123 million of loans and 68 non-SFR active payment deferrals for $257 million of loans as of April 27, 2020 • Operating 25 of 31 branches on reduced-hour schedules COMMUNITY • Partnered with Food Finders to provide more than 325,000 meals to our most vulnerable neighbors • Donated $15,000 to the Los Angeles Fire Department for the purpose of providing personal protective equipment to firefighters at LA County COVID-19 testing sites First Quarter 2020 | 4

CECL IMPLEMENTATION WALK THROUGH $ in millions $19.0 $82.1 $6.4 $68.1 ($3.3) $61.7 ($1.7) 1.45%1 1.14%1 1.04%1 ALLL & OBS Day 1 ACL Day 1 Portfolio Charge-offs Economic ACL Day 2 (12/31/19) Adjustment (1/1/20) Changes Forecast (3/31/20) and Other • Day 1: Transition adjustment increased ACL $6.4 million, or 10%, and decreased retained earnings $4.5 million • Day 2: Provision increased ACL $15.8 million due mostly to updated economic forecast – ACL methodology uses a nationally-recognized, third party model that includes many assumptions based on our and peer historical loss data, our current loan portfolio risk profile, and economic forecasts – The economic forecasts used were released during the last week of March and included the onset of the pandemic. These forecasts included a sharp contraction in annualized GDP growth ranging from -13% to -26% and peak unemployment rates ranging from 8% to 13%. All forecasts returned to moderate long-term trends over time – The reserve included qualitative factors to account for our visibility of actual conditions related to our loan portfolio and an economic outlook that was worse than the late March forecasts, including a slower recovery • Capital Relief: Proposed Capital Relief from Day 1 and Day 2 CECL will phase in over three years beginning 1/1/22 • Allowance for Credit Losses (ACL) includes Reserve for Unfunded Commitments (1) Coverage percentage equals ACL to total loans First Quarter 2020 | 5

STRONG CAPITAL BASE 1Q20 4Q19 3Q19 2Q19 1Q19 Common Equity Tier 1 11.57% 11.56% 10.34% 10.50% 9.72% Tier 1 Risk-based Capital 14.91% 14.83% 13.32% 14.03% 13.03% Leverage Ratio 11.20% 10.89% 9.84% 9.62% 8.87% Tangible Equity / Tangible Assets1 10.42% 11.12% 10.01% 9.89% 9.20% Tangible Common Equity / Tangible Assets1 7.96% 8.68% 7.80% 7.41% 6.85% • Strategic decision to exit non-franchise enhancing assets during 2019 resulted in build up of significant capital and steadily improving ratios • Repurchased 827,584 common shares during Q1 2020 for aggregate cost of $12.0 million – Repurchases of common stock suspended after March 16, 2020 until better clarity on length and severity of pandemic • Repurchased 2,033 shares of Series D and 185 shares of Series E preferred stock for an aggregate cost of $1.6 million during Q1 2020 • Capital provides a buffer for the uncertain outlook and optionality to deploy for benefit of shareholders (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation First Quarter 2020 | 6

DIVERSIFIED LOAN PORTFOLIO Loan Portfolio by Segment Growing Commercial Loan Balances • Continued focus on becoming relationship- C&I SFR focused business bank demonstrated by 28% 26% current loan concentrations Consumer 1% • Reduced reliance on brokered SFR MF segment will improve yields and deposits. SBA 26% 1% CRE 14% Constr. 4% Loan Balances by Segment Loan Segment $ % Avg. Yield $ in millions $ in Millions $2,166 $2,022 $1,835 $1,645 $1,515 C&I $1,578 28% 4.84% Multifamily 1,466 26% 4.50% 73% 72% CRE 810 14% 4.80% 70% 71% 71% Construction 228 4% 6.03% SBA 71 1% 7.79% SFR 1,467 26% 4.01% $5,392 $4,697 $4,548 $4,307 $4,153 Consumer 47 1% 5.38% 1Q19 2Q19 3Q19 4Q19 1Q20 Loans – HFI $5,667 100% 4.54% Commercial SFR & Consumer Commercial / Loans-HFI First Quarter 2020 | 7

REAL ESTATE LOAN PORTOFLIO HAS LOW LTVS Real Estate Loan Balances1 Real Estate1 LTVs $ % Count $ in millions $ in Millions $5,512 <50% $1,028 26% 887 $4,626 $4,459 73% $4,136 $3,971 50% to 60% 1,001 25% 571 60% to 70% 1,466 37% 720 70% to 80% 351 9% 252 70% 70% 69% 69% >80% 125 3% 111 Total $3,971 100% 2,541 1Q19 2Q19 3Q19 4Q19 1Q20 • ~88% of all real estate secured loans have loan-to-values (LTVs) of less than RE Loans RE Loans / Loans-HFI 70% SFR Portfolio by LTV SFR LTVs $ % Count >80% $ in Millions 70% to 4% <50% $393 27% 484 80% <50% 15% 27% 50% to 60% 375 26% 358 60% to 70% 409 28% 418 70% to 80% 226 15% 218 60% to >80% 65 4% 80 70% 50% to 28% 60% Total $1,467 100% 1,558 26% • ~80% of all existing SFR have loan-to- values (LTVs) of less than 70% (1) Excludes credit facilities First Quarter 2020 | 8

CALIFORNIA-CENTRIC CRE AND MULTIFAMILY PORTFOLIO HAVE LOW WEIGHTED-AVERAGE LTV CRE & Multifamily by Collateral Type CRE & Multifamily Portfolio by State AZ All Others Industrial 2% 3% 4% Hospitality NV <1% Other 2% 9% Retail 14% MultiFamily 64% CA Office 93% 9% Collateral Type Count Balance Avg. Loan Size W.A. LTV $ in thousands Multi Family 651 $1,466,083 $2,252 59.9% Office 52 204,731 $3,937 62.3% Retail 91 315,090 $3,463 53.8% Hospitality 6 7,131 $1,188 71.2% Industrial 34 90,446 $2,660 53.6% Other 77 192,627 $2,502 89.1% Total CRE & MF 911 $2,276,107 $2,498 61.5% First Quarter 2020 | 9

DIVERSIFIED AND LOW AVERAGE BALANCE C&I PORTFOLIO Professional Transportation Accomodations Services 1% 0.1% Food Services 1% 2% • ~68% C&I Concentration toward All Other Television / C&I Businesses focused on Finance and Motion Pictures 8% 2% Insurance, and Real Estate and Rental Other Retail Leasing Trade 2% Finance and Whole Sale Insurance • Limited Exposure to High Stressed Trade 55% 3% Business Industries Healthcare • 5% Oil and Gas 3% Real Estate & Rental Leasing • 2% Television / Motion Pictures Manufacturing 13% 5% • 2% Food Services Gas Stations • 1% Transportation 5% • <1% in Accommodations NAICS Industry Count $ Avg. Loan Size $ in thousands • All Other C&I includes a diverse mix of Finance and Insurance 166 $872,049 $5,323 Real Estate & Rental Leasing 148 205,206 $1,387 industry sectors Gas Stations 59 77,294 1,310 • 2% Administrative and Support Manufacturing 71 73,299 1,032 Healthcare 43 54,091 1,258 • 2% Management of Companies Wholesale trade 38 43,285 1,139 • 1% Education Services Other Retail Trade 39 38,908 998 Television / Motion Pictures 27 37,733 1,398 • 1% Arts / Recreation Food Services 20 30,351 1,518 • 1% Construction / Contracting Professional Services 49 12,586 257 Transportation 12 10,469 872 Accommodations 4 1,516 379 All Other C&I 114 121,435 1,065 Total C&I 790 $1,578,223 $1,998 First Quarter 2020 | 10

ASSET QUALITY IS STRONG LEGACY SFR PORTFOLIO CREATES NOISE Delinquencies % of Delinquencies by Category: $ in millions SFR Delinquencies $85.0 2.00% CRE & Other Delinquencies (ex-SFR) Constr., 1% Total delinquencies $13.6 Consumer, 1% Delinquencies/Total loans 1Q20 SFR, 84% C&I, 8% Delinquencies (ex-SFR)/Loans (ex-SFR) 1.50% $59.5 $56.3 $57.6 $52.2 SBA, 6% $22.7 $10.9 $14.2 $13.6 1.00% • Excluding SFR, delinquent loans are 0.32% of total non- SFR loans • Delinquent loans include: 0.50% – $6.9 million in C&I loans, which primarily consists of two loans • Increase in total delinquencies driven primarily by SFR $36.8 $38.6 $45.4 $43.4 $71.4 0.00% – Represents 84% of 30+ delinquent loans 1Q19 2Q19 3Q19 4Q19 1Q20 – Low LTVs of SFR loans mitigates risks % of NPLs by Category: Nonperforming Loans (NPLs) SBA, 10% SFR NPLs $ in millions NPLs (ex-SFR) $56.5 NPLs/Total loans 1Q20 SFR, 43% C&I, 42% NPLs (ex-SFR)/Loans (ex-SFR) $32.1 1.20% $45.2 $43.4 CRE, 5% 1.00% $29.6 $24.7 • 1Q20 NPL coverage ratio of 139% 0.80% • 1Q20 NPL balances includes two large loans that make $28.5 $28.7 up 45% of NPLs 0.60% $13.2 $12.8 – $16.4 million legacy shared national credit (NPL status in 3Q19) 0.40% – $9.1 million SFR loan with 67% LTV (NPL status 0.20% in 4Q19) $15.3 $15.9 $15.6 $18.6 $24.4 • Total NPLs of $56.5 million, or 1.0% of total loans 0.00% • NPLS, excluding legacy SFRs, total and $32.1 million, or 1Q19 2Q19 3Q19 4Q19 1Q20 0.76% of total non-SFR loans First Quarter 2020 | 11

SECURITIES PORTFOLIO HAS DIVERSIFIED EXPOSURE $969 Million Total Investment Portfolio CLO INDUSTRY BREAKDOWN $ in millions $47.9 $54.4 Corporate, Other Healthcare & Municipal, 4.9% 17% Pharmaceuticals 5.6% 13% Aerospace & Defense Construction & 3% Building 3% High Tech Industries Containers, Packaging 11% & Glass $243.6 $623.6 3% Gov't CLO, Automotive Services - Business AGC, 64.3% 3% 10% 25.1% Capital Equipment 3% Chemicals, Plastics, & Rubber 4% Retail FIRE - Banking, Finance, 4% Insurance & Real Estate 7% Services Consumer 4% Hotel, Gaming Media - Broadcasting & Beverage, Food & Leisure Subscription & Tobacco 5% 4% 4% Telecommunications 5% • Total portfolio yield of 3.30% in first quarter • CLO portfolio has underlying diversified exposure with largest segment in • Portfolio duration of 1.74 years (5.23 years Healthcare & Pharmaceuticals at 13% excluding CLOs) • Limited exposure to severely stressed industries • Bond Ratings: • AA and AAA holdings provide principal protection – exposure to underlying credit • CLOs - 97% AA and 3% AAA losses would require a combination of lifetime defaults (25-35% CDR), loss • Municipals - 66% AA and 34% AAA severity (40-50%), and prepayment assumptions (0-10% CPR) • Corporates - 100% BBB • Under these assumptions, the underlying securities would need to take losses of approximately 25% before we would anticipate incurring losses on principal • Q1 2020 CLO Portfolio yield of 3.40% • Quarterly reset based on 3 Month Libor + 1.64% First Quarter 2020 | 12

RAPIDLY IMPROVING DEPOSIT FRANCHISE • $167.6 million quarterly increase Brokered CDs CDs in noninterest-bearing deposits Money Market & Savings 1.67% 1.62% Interest-bearing Noninterest-bearing • Large percentage of noninterest- 1.48% Average Cost of deposits bearing and low-cost deposits 1.27% • Targeted deposit strategy 1.11% resulting in lower deposit costs over time 6.0% 0.9% 0.0% 3.7% 16.8% 23.7% 22.2% 19.3% 23.5% • Selective use of brokered CDs 21.8% 26.1% 30.1% 29.5% to replace migration out of high- 29.6% cost deposits 26.5% Cost of Deposits 28.3% 26.1% 28.3% 25.1% • Spot rate at March 31, 2020 was 20.4% 22.6% 89 bps 14.5% 15.8% 19.2% 20.1% 1Q19 2Q19 3Q19 4Q19 1Q20 Category 1Q19 2Q19 3Q19 4Q19 1Q20 $ in millions Noninterest-bearing checking $1,120.7 $993.7 $1,107.4 $1,088.5 $ 1,256.1 Interest-bearing checking 1,573.5 1,577.9 1,503.2 1,533.9 1,572.4 Demand deposits 2,694.2 2,571.6 2,610.6 2,622.4 2,828.5 Savings 1,151.4 1,061.1 1,042.2 885.2 878.0 Money Market 899.3 800.9 695.5 715.5 575.8 Non-maturity deposits 4,744.9 4,433.6 4,348.3 4,223.1 4,282.2 CDs 1,684.9 1,479.1 1,367.3 1,204.0 1,071.9 Brokered CDs 1,295.1 379.5 54.4 ̶ 208.7 Total $7,724.9 $6,292.3 $5,770.1 $5,427.2 $ 5,562.8 First Quarter 2020 | 13

DECLINING DEPOSIT COSTS OFFSET VARIABLE RATE LOAN RESETS TO PROTECT NET INTEREST MARGIN Net Interest Margin Drivers 4.59% 4.59% 4.50% 4.50% 4.27% 3.04% 2.97% 2.81% 2.86% 2.86% 2.50% 2.50% 2.03% 1.85% 1.71% 2.12% 2.09% 2.00% 1.75% 0.25% 1Q19 2Q19 2Q19 4Q19 1Q20 Earning Asset Yield Net Interest Margin Fed Funds Rate Interest-Bearing Liabilities First Quarter 2020 | 14

SLIGHTLY ASSET SENSITIVE PORTFOLIO WILL BENEFIT IN RISING RATE ENVIRONMENT Loan Portfolio by Repricing Type Yields on Average Earning Asset Types $ in millions Loans Securities $809 Other interest-earning assets Fed Funds Fixed Rate 14% 6.00% 4.76% 4.80% 4.75% 4.71% 5.00% 4.56% 4.00% $1,853 $3,003 4.13% Hybrid 3.00% 3.83% 3.72% Variable Rate 2.91% 2.84% 3.60% 2.57% 3.30% 33% 53% 2.35% 2.00% 2.50% 2.50% 1.84% 2.00% 1.00% 1.75% 0.25% 0.00% 1Q19 2Q19 3Q19 4Q19 1Q20 Variable Rate Loan Floors Fixed/Hybrid Years to Maturity/Repricing Category Total Balance % of Total Loans $ in millions $2,128 $ in millions 100+ bps $ 235 4.2% 50-100 bps 133 2.4% 25-50 bps 240 4.2% 0-25 bps 58 1.0% $1,140 No Floor 371 6.6% Sub total Non-Floor Variable $ 1,039 18.3% Floor 814 14.4% $332 Total Variable $ 1,853 32.7% $210 Sub Total Hybrid 3,003 53.0% Sub Total Fixed 809 14.3% Total HFI $ 5,664 100.0% 1 Year 2 Years 3 Years > 3 Years First Quarter 2020 | 15

ACTIVE MANAGEMENT OF DEPOSIT COSTS IS DRIVING DOWN COST OF FUNDS Cost of Funds Drivers 5.50% 5.43% 5.47% 5.43% 5.45% 2.85% 2.71% 2.74% 2.74% 2.75% 2.34% 2.48% 2.42% 2.10% 1.92% 1.89% 1.78% 1.57% 1.88% 1.84% 1.75% 1.65% 1.41% 1.67% 1.62% 1.55% 1.48% 1.41% 1.27% 1.11% 1Q19 2Q19 2Q19 4Q19 1Q20 Cost of Interest-bearing deposits ST FHLB borrowings LT FHLB borrowings Senior debt and other Cost of total deposits Average Cost of Funds First Quarter 2020 | 16

CONTINUED FOCUS ON EXPENSE MANAGEMENT • Adjusted noninterest expense1 decreased $5.0 million versus prior quarter • Salaries and employee benefits decreased in line total headcount • Non-core expense/benefits relates to timing of indemnified legal costs/recoveries and loss/gain on investments in alternative energy partnerships2 • Adjusted noninterest expense decreased 21% versus 1Q19 Noninterest Expense to Average Assets Adjusted Noninterest Expense to Average Assets $ in millions $ in millions 2.45% 2.37% 2.50% 2.41% 1.97% 2.30% 1.82% 2.15% 2.06% 2.13% $62 $43 $43 $47 $47 -25% -21% $55 $49 $43 $55 $47 $48 $49 $47 $48 $43 $7 $4 -$6 -$4 -$1 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Total Non-Core expense Noninterest Expense / Average Assets Adjusted Noninterest Expense Adjusted Noninterest Expense Adjusted Noninterest Expense / Average Assets (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) Loss on investments in alternative energy partnerships create tax credits to offset expense incurred First Quarter 2020 | 17

DEVELOPING RECURRING AND SUSTAINABLE EARNINGS PROFILE Core Expenses Remain Inline with Revenues $ in millions $13.1 $0.9 • Recurring pre-tax pre- $10.6 $1.6 provision income underlies $1.9 reported net income and shows consistent trend $7.0 $1.7 when fair value adjustment on loans held for sale and a 1Q20 legal settlement are excluded 1Q20 PTPP1 Non-Core Loss on 1Q20 Fair value Legal 1Q20 Adjusted 1 Income2 Expense2 alternative Adjusted adjustment settlement PTPP Income • Non-core expense / income Excluding Loans energy PTPP1 on loans held $ in millions HFS FV relates to indemnified legal partnerships3 Income for sale adjustment and $14.1 legal settlement expenses/ recoveries • Loans held-for-sale fair value adjustment driven by $13.2 $13.3 ($1.9) $0.0 $0.0 change in market rates is unrealized $1.0 • Legal settlement in 1Q20 concluded an acquired bank legacy issue; there was no similar settlement in prior quarter 4Q19 PTPP1 Non- Gain on 4Q19 Fair value Legal 4Q19 Adjusted PTPP1 Income2 Core alternative Adjusted adjustment settlement Income Excluding 2 1 Loans HFS FV Income energy PTPP on loans held adjustment and legal 3 partnerships Income for sale settlement (1) Pre-tax, Pre-Provision (2) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (3) Loss on investments in alternative energy partnerships create tax credits to offset expense incurred First Quarter 2020 | 18

2020 STRATEGIC OBJECTIVES • Heightened focus and resources added to monitor portfolio even more closely in uncertain Laser Focus on environment • Rely on relationship-lending in our footprint Credit • Well-underwritten credit portfolio mainly secured by CA-based real estate with relatively low LTVs • Growing noninterest-bearing and DDA deposits, continue to improve deposit mix Creating High • Cost of deposits continue to drive down to peer median, with longer term goal of getting below Quality Deposit median Base • High touch relationship-banking for businesses and entrepreneurs driving value creation and growth • Lending teams gaining traction after joining in latter half of 2019 Remix Balance • Legacy SFR and Multifamily payoffs may outpace production in early 2020 • Production expected to outpace payoffs in 2H of 2020, balance sheet relatively flat for 2020 Sheet • Adding to investment portfolio and layering in quality mix of investments • High capital from reduction in balance sheet provides strong buffer in uncertain environment Optimize Use of • Common stock repurchases paused to preserve capital and provide flexibility • Opportunity to redeem preferred at appropriate time Capital • Evaluating other uses of capital that will enhance earnings and improve franchise for the long- term 2020 objectives represent second half of the Company’s transformation in terms of strategic focus and balance sheet composition. With strong capital, improving deposit franchise and relationship focus, progress on 2020 objectives will set up the company for solid performance in 2021 and beyond. First Quarter 2020 | 19

BANC FAST FACTS (Dollars in millions1) 1Q20 4Q19 3Q19 2Q19 1Q19 Total assets $ 7,663 $ 7,828 $ 8,625 $ 9,360 $ 9,887 Securities available-for-sale 969 913 776 1,168 1,471 Loans receivable 5,667 5,952 6,383 6,720 7,557 Total deposits 5,563 5,427 5,770 6,292 7,725 Net interest income 51.9 56.7 58.9 64.8 67.8 Total noninterest income (loss) 2.1 4.9 3.2 (2.3) 6.3 Total revenue 54.0 61.6 62.1 62.5 74.1 Noninterest expense3,4 45.0 46.4 44.2 43.9 60.3 (Gain) loss on investments in alternative energy partnerships 1.9 1.0 (0.9) (0.4) 2.0 Total noninterest expense 46.9 47.5 43.2 43.5 62.2 Pre-tax pre-provision income5 7.0 14.1 18.9 19.0 11.9 Provision for (reversal of) credit losses 15.8 (3.0) 38.6 (1.9) 2.1 Net (loss) income (6.6) 14.3 (14.1) 16.6 7.0 Preferred dividend and other adjustments 3.1 3.9 8.6 4.7 4.5 Net (loss) income available to common stockholders $ (9.7) $ 10.4 $ (22.7) $ 11.9 $ 2.5 Diluted (loss) earnings per common share $ (0.19) $ 0.20 $ (0.45) $ 0.23 $ 0.05 Return on average assets2 (0.35)% 0.71% (0.64)% 0.69% 0.28% Adjusted efficiency ratio2,5 86.54% 74.51% 70.00% 67.70% 83.57% Class / Par Value Dividend Rate / First Callable Preferred Equity Series CUSIP Issue Date ($000) Coupon (%) Date Preferred Equity: Non-Cumulative, Perpetual D 05990K882 4/8/2015 $ 94,597 7.375% 6/15/2020 Preferred Equity: Non-Cumulative, Perpetual E 05990K874 2/8/2016 100,292 7.000% 3/15/2021 Total Preferred Equity $ 194,889 (1) All figures from reported operations unless noted; dollars in millions unless noted per share or percentage (2) Consolidated operations; Efficiency ratio adjusted for including the pre-tax effect of investments in alternative energy partnerships (3) Excluding loss on investments in alternative energy partnerships (4) Non-GAAP measure, reconciliation in table above (5) Non-GAAP financial First Quarter 2020 | 20 measure; see “Non-GAAP Reconciliation” slides at end of presentation

NON-GAAP FINANCIAL INFORMATION This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include noninterest expense from Core operations, operating expense from Core operations, noninterest expense to average assets, and diluted earnings per common share from Core operations, adjusted for non-core items, each excluding loss on investments in alternative energy partnerships and the latter three adjusted for non-core items. Management believes that these particular measures provide useful supplemental information in understanding our core operating performance. These measures should not be viewed as substitutes for measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 22-26 of this presentation. Non-GAAP measures in this presentation also include tangible equity to tangible assets, tangible common equity to tangible assets, return on average tangible common equity, and adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships. These particular measures are used by management in its analysis of the Company's capital strength and the performance of the Company’s businesses. Banking and financial institution regulators also exclude goodwill and other intangible assets from total stockholders' equity when assessing the capital adequacy of a financial institution. Management believes the presentation of these measures excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital and financial strength of the Company and the performance of its businesses. These measures should not be viewed as substitutes for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 22-26 of this presentation. First Quarter 2020 | 21

NON-GAAP RECONCILIATION (Dollars in thousands) 1Q20 4Q19 3Q19 2Q19 1Q19 Noninterest expense $ 46,919 $ 47,483 $ 43,240 $ 43,500 $ 62,249 (Loss) gain on investments in alternative energy partnerships (1,905) (1,039) 940 355 (1,950) Adjusted noninterest expense 45,014 46,444 44,180 43,855 60,299 Net interest income 51,861 56,660 58,915 64,780 67,808 Noninterest income (loss) 2,061 4,930 3,181 (2,290) 6,295 Total revenue 53,922 61,590 62,096 62,490 74,103 Tax credit from investments in alternative energy partnerships — 1,689 77 1,680 — Deferred tax expense on investments in alternative energy partnerships — (177) (8) (176) — Tax effect on tax credit and deferred tax expense — 267 7 426 — Gain (loss) on investments in alternative energy partnerships (1,905) (1,039) 940 355 (1,950) Total pre-tax adjustments for investments in alternative energy partnerships (1,905) 740 1,016 2,285 (1,950) Adjusted total revenue $ 52,017 $ 62,330 $ 63,112 $ 64,775 $ 72,153 Efficiency Ratio 87.01% 77.10% 69.63% 69.61% 84.00% Adjusted efficiency ratio including the pre-tax effect of investments in alternative energy partnerships 86.54% 74.51% 70.00% 67.70% 83.57% Effective tax rate utilized for calculating tax effect on tax credit and deferred tax expense 24.03% 15.00% 9.36% 22.07% 27.00% First Quarter 2020 | 22

NON-GAAP RECONCILIATION (Dollars in thousands) 1Q20 4Q19 3Q19 2Q19 1Q19 Tangible Common Equity to Tangible Assets Ratio Total assets $ 7,662,607 $ 7,828,410 $ 8,625,337 $ 9,359,931 $ 9,886,525 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (3,722) (4,151) (4,605) (5,105) (5,726) Tangible assets $ 7,621,741 $ 7,787,115 $ 8,583,588 $ 9,317,682 $ 9,843,655 Total stockholders' equity $ 835,002 $ 907,245 $ 900,988 $ 963,544 $ 948,325 Less: goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: other intangible assets (3,722) (4,151) (4,605) (5,105) (5,726) Tangible equity 794,136 865,950 859,239 921,295 905,455 Less: preferred stock (187,687) (189,825) (189,825) (231,128) (231,128) Tangible common equity $ 606,449 $ 676,125 $ 669,414 $ 690,167 $ 674,327 Total stockholders' equity to total assets 10.90% 11.59% 10.45% 10.29% 9.59% Tangible equity to tangible assets 10.42% 11.12% 10.01% 9.89% 9.20% Tangible common equity to tangible assets 7.96% 8.68% 7.80% 7.41% 6.85% First Quarter 2020 | 23

NON-GAAP RECONCILIATION (Dollars in thousands) 1Q20 4Q19 3Q19 2Q19 1Q19 Return on tangible common equity Average total stockholders' equity $ 916,047 $ 912,749 $ 961,739 $ 962,933 $ 956,700 Less: Average preferred stock (189,607) (189,824) (213,619) (231,128) (231,128) Less: Average goodwill (37,144) (37,144) (37,144) (37,144) (37,144) Less: Average other intangible assets (4,003) (4,441) (4,935) (5,503) (6,128) Average tangible common equity $ 685,293 $ 681,340 $ 706,041 $ 689,158 $ 682,300 Net (loss) income $ (6,593) $ 14,272 $ (14,132) $ 16,582 $ 7,037 Less: Preferred stock dividends and impact of preferred stock redemption (3,007) (3,540) (8,496) (4,308) (4,308) Add: Amortization of intangible assets 429 454 500 621 620 Less: Tax effect on amortization of intangible assets (90) (95) (105) (130) (130) Net (loss) income available to common stockholders $ (9,261) $ 11,091 $ (22,233) $ 12,765 $ 3,219 Return on average equity (2.89)% 6.20% (5.83)% 6.91% 2.98% Return on average tangible common equity (5.44)% 6.46% (12.49)% 7.43% 1.91% Statutory tax rate utilized for calculating tax effect on amortization of intangible assets 21.00% 21.00% 21.00% 21.00% 21.00% First Quarter 2020 | 24

NON-GAAP RECONCILIATION (Dollars in thousands) 1Q20 4Q19 3Q19 2Q19 1Q19 Adjusted Noninterest Expense Total noninterest expense $ 46,919 $ 47,483 $ 43,240 $ 43,500 $ 62,249 Less: non-core items Data processing fees — — — (797) — Professional fees (1,678) 3,557 2,615 6,214 (2,979) Restructuring expense — (1,626) — 158 (2,795) Other expense — — (131) — — Total non-core adjustments (1,678) 1,931 2,484 5,575 (5,774) Less: gain/(loss) on investments in alternative energy partnerships (1,905) (1,039) 940 355 (1,950) Total adjustments (3,583) 892 3,424 5,930 (7,724) Adjusted noninterest expense $ 43,336 $ 48,375 $ 46,664 $ 49,430 $ 54,525 Average assets $7,562,942 $7,954,591 $8,695,638 $9,610,575 $10,301,717 Noninterest expense / Average assets 2.50% 2.37% 1.97% 1.82% 2.45% Adjusted noninterest expense / Average assets 2.30% 2.41% 2.13% 2.06% 2.15% First Quarter 2020 | 25

NON-GAAP RECONCILIATION (Dollars in thousands) 1Q20 4Q19 3Q19 2Q19 1Q19 Net interest income $ 51,861 $ 56,660 $ 58,915 $ 64,780 $ 67,808 Noninterest income 2,061 4,930 3,181 (2,290) 6,295 Total revenue 53,922 61,590 62,096 62,490 74,103 Noninterest expense 46,919 47,483 43,240 43,500 62,249 Pre-tax pre-provision income 7,003 14,107 18,856 18,990 11,854 Net interest income 51,861 56,660 58,915 64,780 67,808 Noninterest income 2,061 4,930 3,181 (2,290) 6,295 Total revenue 53,922 61,590 62,096 62,490 74,103 Noninterest expense 46,919 47,483 43,240 43,500 62,249 Total non-core adjustments (1,678) 1,931 2,484 5,575 (5,774) Noninterest expense after non-core adjustments 45,241 49,414 45,724 49,075 56,475 (Loss) gain on investment in alternative energy partnerships (1,905) (1,039) 940 355 (1,950) Adjusted noninterest expense 43,336 43,375 46,664 49,430 54,525 Adjusted pre-tax pre-provision income $ 10,586 $ 13,215 $ 15,432 $ 13,060 $ 19,578 First Quarter 2020 | 26

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