Equibles

8-K

BANC OF CALIFORNIA, INC. (BANC)

8-K 2024-10-22 For: 2024-10-22
View Original
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): October 22, 2024

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

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

Registrant’s telephone number, including area code: (855) 361-2262

N/A

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

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

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

Emerging growth company  ☐

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

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

Title of each class Trading Symbol(s) Name of each exchange<br><br> <br>on which registered
Common Stock, par value $0.01 per share BANC New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series F BANC/PF New York Stock Exchange
Item 2.02 Results of Operations and Financial Condition.

On October 22, 2024, Banc of California, Inc. (the “Company”) issued a press release announcing 2024 third quarter financial results.

A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.

Item 7.01 Regulation FD Disclosure.

The Company will host a conference call to discuss its third quarter results at 10:00 A.M. Pacific Time on Tuesday, October 22, 2024. Interested parties may attend the conference call by dialing (888) 317-6003 and referencing event code 6084667. 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 furnished herewith as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.

99.1

Banc of California, Inc. Press Release dated October 22, 2024.

99.2

Banc of California, Inc. Earnings Conference Call Presentation Materials.

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

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SIGNATURES

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

BANC OF CALIFORNIA, INC.
October 22, 2024 /s/ Joseph Kauder
Joseph Kauder
Executive Vice President and Chief Financial Officer

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Exhibit 99.1

Banc of California, Inc. Reports Third Quarter 2024 Financial Results Which Include Balance Sheet Repositioning

Company Release – 10/22/2024

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the third quarter ended September 30, 2024. The Company reported a net loss available to common and equivalent stockholders of $1.2 million, or a loss of $0.01 per diluted common share, for the third quarter of 2024. On an adjusted basis, net earnings available to common and equivalent stockholders were $41.4 million, or $0.25 per diluted common share.^(1)^ This compares to net earnings available to common and equivalent stockholders of $20.4 million, or $0.12 per diluted common share, for the second quarter of 2024. The third quarter of 2024 includes $60 million of pre-tax losses from repositioning a portion of the securities portfolio.

Third quarter highlights include:

• Closed the sale of $1.95 billion of Civic loans in July which generated net proceeds of $1.91 billion. This sale increased our capital ratios and<br> liquidity and allowed us to reposition a portion of our securities portfolio in Q3 and pay down higher-cost brokered deposits and borrowings.
• Repositioned $742 million of available-for-sale securities resulting in a pre-tax loss of $60 million. Sold $742 million of securities with a weighted<br> average yield of 2.94% and purchased $724 million of securities with a weighted average yield of 5.65%. Expected to increase interest income by approximately $4.8 million per quarter.
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• Net interest margin of 2.93%, an increase of 13 basis points from 2.80% in the second quarter, driven mainly by lower funding costs.
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• Average total cost of deposits and average total cost of funds decreased by 6 basis points and 13 basis points, respectively, to 2.54% and 2.82%. The<br> declines in deposit and funding costs were driven mainly by the maturity of brokered time deposits (which decreased by $2.0 billion in the third quarter), while the $545 million payoff of Bank Term Funding Program borrowings also<br> contributed to the decline in funding costs.
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• Average noninterest-bearing deposits increased to 28% of average total deposits for the third quarter, up from 27% in the second quarter.
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• Achieved Q4 2024 cost targets ahead of schedule with total noninterest expense of $196.2 million for the third quarter, down $7.4 million, or 4%, from the second quarter.
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• Strong capital ratios well above the regulatory “well capitalized” thresholds at September 30, 2024, including an estimated 16.98% Total risk-based capital ratio, 12.87% Tier 1 capital ratio, 10.45% CET1 capital ratio, and 9.83% Tier 1 leverage ratio.
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1
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• Book value per share increased to $17.75 and tangible book value per share^(1)^ increased to $15.63.
^(1)^ Non-GAAP measure; refer to section ‘Non-GAAP Measures’
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Jared Wolff, President & CEO of Banc of California, commented, “During the third quarter, we made significant progress growing our core earnings and we achieved our year-end targets for net interest margin, noninterest expenses, and balance sheet metrics a quarter early. We strengthened our franchise through several strategic balance sheet repositioning actions including completing the sale of $1.95 billion of Civic loans, which had a positive impact on our capital and liquidity. We leveraged the proceeds and capital to reposition a portion of our securities portfolio and significantly reduce higher cost funding, which resulted in strong net interest margin expansion and increased our tangible book value per share and capital position. Furthermore, we continued to make solid progress reducing noninterest expenses, completed our core system conversion successfully, and consolidated 12 branches during the quarter.”

Mr. Wolff continued, “With these major balance sheet and operational initiatives behind us, Banc of California is now at an inflection point, shifting our focus from transforming our internal infrastructure to external growth. We are capitalizing on the strength of the franchise and balance sheet we have built and the exceptional customer experience we can offer to expand existing relationships and add attractive new client relationships. As economic conditions improve, we believe we are well positioned to increase our market share, expand our client roster, generate profitable growth and continue to enhance the long-term value of our franchise.”

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INCOME STATEMENT HIGHLIGHTS

Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
Summary Income Statement 2024 2024 2023 2024 2023
(In thousands)
Total interest income $ 446,893 $ 462,589 $ 446,084 $ 1,388,186 $ 1,503,760
Total interest expense 214,718 233,101 315,355 697,421 907,683
Net interest income 232,175 229,488 130,729 690,765 596,077
Provision for credit losses 9,000 11,000 - 30,000 5,000
(Loss) gain on sale of loans (62 ) 1,135 (1,901 ) 625 (157,820 )
Loss on sale of securities (59,946 ) - - (59,946 ) -
Other noninterest income 44,556 28,657 45,709 107,477 109,937
Total noninterest (loss) income (15,452 ) 29,792 43,808 48,156 (47,883 )
Total revenue 216,723 259,280 174,537 738,921 548,194
Goodwill impairment - - - - 1,376,736
Acquisition, integration and reorganization costs (510 ) (12,650 ) 9,925 (13,160 ) 30,833
Other noninterest expense 196,719 216,293 191,178 623,530 686,974
Total noninterest expense 196,209 203,643 201,103 610,370 2,094,543
Earnings (loss) before income taxes 11,514 44,637 (26,566 ) 98,551 (1,551,349 )
Income tax expense (benefit) 2,730 14,304 (3,222 ) 28,582 (135,167 )
Net earnings (loss) 8,784 30,333 (23,344 ) 69,969 (1,416,182 )
Preferred stock dividends 9,947 9,947 9,947 29,841 29,841
Net (loss) earnings available to common and equivalent stockholders $ (1,163 ) $ 20,386 $ (33,291 ) $ 40,128 $ (1,446,023 )

Net Interest Income

Q3-2024 vs Q2-2024

Net interest income increased by $2.7 million to $232.2 million for the third quarter from $229.5 million for the second quarter due to lower interest expense on interest-bearing liabilities, offset partially by lower interest income on interest-earning assets.

Average interest-earning assets decreased by $1.4 billion to $31.6 billion for the third quarter due mainly to the sale in July 2024 of $1.95 billion of Civic loans which had been moved to held for sale during the second quarter of 2024. The proceeds of the sale were used primarily to pay down higher-cost brokered deposits and borrowings. The net interest margin increased by 13 basis points to 2.93% for the third quarter compared to 2.80% for the second quarter due to a 2 basis point decrease in the average yield on interest-earning assets decreasing being more than offset by a 13 basis point decrease in the average total cost of funds, which was positively impacted by a decrease in average borrowings.

The average yield on interest-earning assets decreased by 2 basis points to 5.63% for the third quarter from 5.65% in the second quarter due mainly to the average yield on deposits in financial institutions decreasing by 3 basis points and the average yield on loans and leases being flat.

The average yield on loans and leases was unchanged at 6.18% for the third quarter compared to the second quarter as a result of new originations being at rates higher than the existing portfolio, slightly higher loan discount accretion, and the change in the mix of loan product balances including the impact of the sale of the $1.95 billion Civic loan portfolio.

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The average total cost of funds decreased by 13 basis points to 2.82% for the third quarter from 2.95% in the second quarter due mainly to lower market interest rates and reduced average borrowings. The average cost of interest-bearing liabilities decreased by 13 basis points to 3.80% for the third quarter from 3.93% in the second quarter. The average total cost of deposits decreased by 6 basis points to 2.54% for the third quarter compared to 2.60% in the second quarter. Average noninterest-bearing deposits decreased by $35.0 million for the third quarter compared to the second quarter, average total deposits decreased by $474.2 million, and average borrowings decreased by $950.1 million.

YTD September 30, 2024 vs YTD September 30, 2023

Net interest income increased by $94.7 million to $690.8 million for the nine months ended September 30, 2024 from $596.1 million for the nine months ended September 30, 2023 due to lower interest expense on interest-bearing liabilities, offset partially by lower interest income on interest-earning assets.

Average interest-earning assets decreased by $5.7 billion to $33.0 billion for the first nine months of 2024 due to lower average balances in loans and leases, investments securities, and deposits in financial institutions. Average loans and leases decreased by $1.0 billion primarily due to the sale in July 2024 of $1.95 billion of Civic loans which had been moved to held for sale during the second quarter of 2024 and the sales of non-core loan portfolios in the second quarter of 2023, offset partially by the acquisition of legacy Banc of California loans completed in the fourth quarter of 2023. Average investment securities decreased by $2.4 billion mostly due to securities sales completed in the fourth quarter of 2023. Average deposits in financial institutions decreased by $2.3 billion due to lower cash balances which were used to pay down higher-cost borrowings. The net interest margin increased by 72 basis points to 2.79% for the nine months ended September 30, 2024 compared to 2.07% for the same period in 2023 due to the average yield on interest-earning assets increasing by 41 basis points, while the average total cost of funds decreased by 31 basis points.

The average yield on interest-earning assets increased by 41 basis points to 5.61% for the first nine months of 2024 from 5.20% for the same period in 2023 due mainly to the change in the interest-earning asset mix. This was driven by the increase in the balance of average loans and leases as a percentage of average interest-earning assets to 75% for the nine months ended September 30, 2024 from 67% for the nine months ended September 30, 2023, the decrease in the balance of average investment securities as a percentage of average interest-earning assets to 14% for the first nine months of 2024 from 18% for the same period in 2023, and the decrease in the balance of average deposits in financial institutions as a percentage of average interest-earning assets to 10% for the nine months ended September 30, 2024 from 15% for the same period in 2023.

The average yield on loans and leases increased by 19 basis points to 6.14% for the first nine months of 2024 from 5.95% for the same period in 2023 as a result of changes in portfolio mix and higher net accretion of loan discounts.

The average total cost of funds decreased by 31 basis points to 2.93% for the nine months ended September 30, 2024 from 3.24% for the nine months ended September 30, 2023 due mainly to changes in the total funds mix. This was driven by the increase in the balance of lower-cost average total deposits as a percentage of average total funds to 91% for the first nine months of 2024 from 77% for the same period in 2023, and the decrease in the balance of higher cost average borrowings as a percentage of average total funds to 6% for the nine months ended September 30, 2024 from 21% for the same period in 2023. The average cost of interest-bearing liabilities decreased by 14 basis points to 3.89% for the first nine months of 2024 from 4.03% for the same period in 2023. The average total cost of deposits increased by 10 basis points to 2.60% for the nine months ended September 30, 2024 compared to 2.50% for the nine months ended September 30, 2023. Average noninterest-bearing deposits increased by $480.9 million for the first nine months of 2024 compared to the same period in 2023 and average total deposits decreased by $60.3 million.

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Provision For Credit Losses

Q3-2024 vs Q2-2024

The provision for credit losses was $9.0 million for the third quarter compared to $11.0 million for the second quarter. The $9.0 million third quarter provision was driven primarily by increases in qualitative reserves, for loans secured by office properties and concentrations of credit, and specific reserves for nonperforming loan downgrades. The $11.0 million second quarter provision was driven by higher net charge-offs and higher qualitative reserves for office loans and other concentrations of credit, offset partially by the reserves released for the Civic loans transferred to held for sale.

YTD September 30, 2024 vs YTD September 30, 2023

The provision for credit losses increased by $25.0 million to $30.0 million for the nine months ended September 30, 2024 compared to $5.0 million for the nine months ended September 30, 2023. The higher provision in the 2024 period was generally due to higher net charge-offs and higher qualitative reserves, offset partially by the reserves released for the Civic loans transferred to held for sale in the second quarter of 2024 and sold in the third quarter of 2024.

Noninterest Income

Q3-2024 vs Q2-2024

Noninterest income decreased by $45.2 million to a loss of $15.5 million for the third quarter due mainly to a $60 million loss on the sale of $742 million of securities in the third quarter of 2024, offset partially by a $7.5 million increase in other income and a $5.7 million increase in leased equipment income. The increase in other income was due primarily to a $6.8 million increase in the positive fair value mark on the credit-linked notes. The increase in leased equipment income was due mostly to higher gains from early lease terminations and sale of leased assets.

YTD September 30, 2024 vs YTD September 30, 2023

Noninterest income increased by $96.0 million to $48.2 million for the nine months ended September 30, 2024 due mostly to a decrease in the loss on sale of loans and leases of $158.4 million, offset partially by a $60 million loss on the sale of $742 million of securities in the third quarter of 2024. The Company sold $2.5 billion of loans for a net gain of $0.6 million in the nine months ended September 30, 2024 and $6.1 billion of loans for a net loss of $157.8 million in the nine months ended September 30, 2023.

Noninterest Expense

Q3-2024 vs Q2-2024

Noninterest expense decreased by $7.4 million to $196.2 million for the third quarter due mainly to decreases of $13.7 million in insurance and assessments expense and $5.8 million in other expense, offset partially by a $12.1 million increase in acquisition, integration and reorganization costs. The decrease in insurance and assessments expense was due to lower assessment rates for both the regular FDIC assessment and the special assessment. The decrease in other expense was mostly due to a repurchase reserve recorded in the second quarter of 2024 for standard representations and warranties associated with the Civic loan sale. The increase in acquisition, integration and reorganization costs was due mainly to an adjustment of $12.7 million in the second quarter of 2024 due to actual amounts for certain expenses being lower than the estimated amounts accrued at merger close.

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YTD September 30, 2024 vs YTD September 30, 2023

Noninterest expense decreased by $1.5 billion to $610.4 million for the nine-month period ended September 30, 2024 due mainly to a $1.4 billion goodwill impairment recorded in the same period in 2023.

Income Taxes

Q3-2024 vs Q2-2024

Income tax expense of $2.7 million was recorded for the third quarter resulting in an effective tax rate of 23.7% compared to income tax expense of $14.3 million for the second quarter and an effective tax rate of 32.0%. The lower third quarter effective tax rate was due primarily to a true-up to the full year tax rate, offset partially by an increase in disallowed executive compensation expense and loss of tax benefits with respect to restricted stock vested during the second quarter.

YTD September 30, 2024 vs YTD September 30, 2023

Income tax expense of $28.6 million was recorded for the nine-month period ended September 30, 2024 resulting in an effective tax rate of 29.0% compared to an income tax benefit of $135.2 million for the same period in 2023 and an effective tax rate of 8.7%. Excluding goodwill impairment, the effective tax rate for the nine-month period in 2023 was 21.7%. The lower effective tax rate in 2023 was due primarily to higher FDIC insurance premiums in relation to the reported net loss for 2023.

BALANCE SHEET HIGHLIGHTS

September 30, June 30, September 30, Increase (Decrease)
Selected Balance Sheet Items 2024 2024 2023 QoQ YoY
(In thousands)
Cash and cash equivalents $ 2,554,227 $ 2,698,810 $ 6,069,667 $ (144,583 ) $ (3,515,440 )
Securities available-for-sale 2,300,284 2,244,031 4,487,172 56,253 (2,186,888 )
Securities held-to-maturity 2,301,263 2,296,708 2,282,586 4,555 18,677
Loans held for sale 28,639 1,935,455 188,866 (1,906,816 ) (160,227 )
Loans and leases held for investment, net of deferred fees 23,527,777 23,228,909 21,920,946 298,868 1,606,831
Total assets 33,432,613 35,243,839 36,877,833 (1,811,226 ) (3,445,220 )
Noninterest-bearing deposits $ 7,811,796 $ 7,825,007 $ 5,579,033 $ (13,211 ) $ 2,232,763
Total deposits 26,828,269 28,804,450 26,598,681 (1,976,181 ) 229,588
Borrowings 1,591,833 1,440,875 6,294,525 150,958 (4,702,692 )
Total liabilities 29,936,415 31,835,991 34,478,556 (1,899,576 ) (4,542,141 )
Total stockholders’ equity 3,496,198 3,407,848 2,399,277 88,350 1,096,921

Securities

The balance of securities held-to-maturity (“HTM”) remained consistent through the third quarter and totaled $2.3 billion at September 30, 2024. As of September 30, 2024, HTM securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) (“AOCI”) of $163.9 million remaining from the balance established at the time of transfer on June 1, 2022.

Securities available-for-sale (“AFS”) increased by $56.3 million during the third quarter to $2.3 billion at September 30, 2024. AFS securities had aggregate unrealized net after-tax losses in AOCI of $161.7 million. These AFS unrealized net losses related primarily to changes in overall interest rates and spreads and the resulting impact on valuations.

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Loans and Leases

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

September 30, June 30, March 31, December 31, September 30,
Composition of Loans and Leases 2024 2024 2024 2023 2023
(Dollars in thousands)
Real estate mortgage:
Commercial $ 4,557,939 $ 4,722,585 $ 4,896,544 $ 5,026,497 $ 3,526,308
Multi-family 6,009,280 5,984,930 6,121,472 6,025,179 5,279,659
Other residential 2,767,187 2,866,085 4,949,383 5,060,309 5,228,524
Total real estate mortgage 13,334,406 13,573,600 15,967,399 16,111,985 14,034,491
Real estate construction and land:
Commercial 836,902 784,166 775,021 759,585 465,266
Residential 2,622,507 2,573,431 2,470,333 2,399,684 2,272,271
Total real estate construction and land 3,459,409 3,357,597 3,245,354 3,159,269 2,737,537
Total real estate 16,793,815 16,931,197 19,212,753 19,271,254 16,772,028
Commercial:
Asset-based 2,115,311 1,968,713 2,061,016 2,189,085 2,287,893
Venture capital 1,353,626 1,456,122 1,513,641 1,446,362 1,464,160
Other commercial 2,850,535 2,446,974 2,245,910 2,129,860 1,002,377
Total commercial 6,319,472 5,871,809 5,820,567 5,765,307 4,754,430
Consumer 414,490 425,903 439,702 453,126 394,488
Total loans and leases held for investment, net of deferred fees $ 23,527,777 $ 23,228,909 $ 25,473,022 $ 25,489,687 $ 21,920,946
Total unfunded loan commitments $ 5,008,449 $ 5,256,473 $ 5,482,672 $ 5,578,907 $ 5,289,221
Composition as % of Total September 30, June 30, March 31, December 31, September 30,
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Loans and Leases 2024 2024 2024 2023 2023
Real estate mortgage:
Commercial 19 % 20 % 19 % 20 % 16 %
Multi-family 25 % 26 % 24 % 23 % 24 %
Other residential 12 % 12 % 19 % 20 % 24 %
Total real estate mortgage 56 % 58 % 62 % 63 % 64 %
Real estate construction and land:
Commercial 4 % 4 % 3 % 3 % 2 %
Residential 11 % 11 % 10 % 9 % 10 %
Total real estate construction and land 15 % 15 % 13 % 12 % 12 %
Total real estate 71 % 73 % 75 % 75 % 76 %
Commercial:
Asset-based 9 % 8 % 8 % 9 % 10 %
Venture capital 6 % 6 % 6 % 6 % 7 %
Other commercial 12 % 11 % 9 % 8 % 5 %
Total commercial 27 % 25 % 23 % 23 % 22 %
Consumer 2 % 2 % 2 % 2 % 2 %
Total loans and leases held for investment, net of deferred fees 100 % 100 % 100 % 100 % 100 %
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Total loans and leases held for investment, net of deferred fees, increased by $298.9 million in the third quarter and totaled $23.5 billion at September 30, 2024. The increase in loans and leases held for investment was due primarily to increased balances in the lender finance, warehouse lending, and real estate construction portfolios. Loan fundings were $699.6 million in the third quarter at a weighted average interest rate of 8.29%.

Credit Quality

September 30, June 30, March 31, December 31, September 30,
Asset Quality Information and Ratios 2024 2024 2024 2023 2023
(Dollars in thousands)
Delinquent loans and leases held for
investment:
30 to 89 days delinquent $ 52,927 $ 27,962 $ 178,421 $ 113,307 $ 49,970
90+ days delinquent 72,037 55,792 57,573 30,881 77,327
Total delinquent loans and leases $ 124,964 $ 83,754 $ 235,994 $ 144,188 $ 127,297
Total delinquent loans and leases to loans and leases held for investment 0.53 % 0.36 % 0.93 % 0.57 % 0.58 %
Nonperforming assets, excluding loans held for sale:
Nonaccrual loans and leases $ 168,341 $ 117,070 $ 145,785 $ 62,527 $ 125,396
90+ days delinquent loans and still accruing - - - 11,750 -
Total nonperforming loans and leases (“NPLs”) 168,341 117,070 145,785 74,277 125,396
Foreclosed assets, net 8,661 13,302 12,488 7,394 6,829
Total nonperforming assets (“NPAs”) $ 177,002 $ 130,372 $ 158,273 $ 81,671 $ 132,225
Classified loans and leases held for investment $ 533,591 $ 415,498 $ 366,729 $ 228,417 $ 211,095
Allowance for loan and lease losses $ 254,345 $ 247,762 $ 291,503 $ 281,687 $ 222,297
Allowance for loan and lease losses to NPLs 151.09 % 211.64 % 199.95 % 379.24 % 177.28 %
NPLs to loans and leases held for investment 0.72 % 0.50 % 0.57 % 0.29 % 0.57 %
NPAs to total assets 0.53 % 0.37 % 0.44 % 0.21 % 0.36 %
Classified loans and leases to loans and leases held for investment 2.27 % 1.79 % 1.44 % 0.90 % 0.96 %

During the third quarter, we continued to remain conservative on risk rating of loans and leases. Increases to classified loans and leases that remained on accrual status resulted from downward migration for groups of loans and leases where performance deteriorated or increased borrower financial information was determined to be necessary. Nonaccrual loans and leases increased in the quarter primarily due to two commercial loans and one legacy Civic loan that migrated to nonperforming status. Delinquencies were also impacted by the aforementioned nonperforming loans. Our overall loan portfolio continues to benefit from strong underwriting, borrower strength and good credit metrics.

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At September 30, 2024, total delinquent loans and leases were $125.0 million, compared to $83.8 million at June 30, 2024. The $41.2 million increase in total delinquent loans was due mainly to increases in the 30 to 89 days delinquent category of $17.1 million in commercial real estate mortgage loans and $9.1 million in other commercial loans. In the 90 or more days delinquent category, there was a $20.5 million increase in other residential real estate mortgage loans, offset partially by a $3.3 million decrease in other commercial loans. Total delinquent loans and leases as a percentage of total loans and leases increased to 0.53% at September 30, 2024, as compared to 0.36% at June 30, 2024.

At September 30, 2024, nonperforming assets were $177.0 million, or 0.53% of total assets, compared to $130.4 million, or 0.37% of total assets, as of June 30, 2024. At September 30, 2024, nonperforming assets included $8.7 million of foreclosed assets, consisting entirely of single-family residences.

At September 30, 2024, nonperforming loans were $168.3 million, compared to $117.1 million at June 30, 2024. During the third quarter, nonperforming loans increased by $51.3 million due to additions of $69.5 million, offset partially by borrowers that became current of $1.2 million, charge-offs of $1.1 million, and payoffs and paydowns of $15.9 million. The additions were driven primarily by two commercial loans and one Civic loan.

Nonperforming loans and leases as a percentage of loans and leases held for investment increased to 0.72% at September 30, 2024 compared to 0.50% at June 30, 2024.

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Allowance for Credit Losses – Loans

Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
Allowance for Credit Losses - Loans 2024 2024 2023 2024 2023
(Dollars in thousands)
Allowance for loan and lease losses
(“ALLL”):
Balance at beginning of period $ 247,762 $ 291,503 $ 219,234 $ 281,687 $ 200,732
Charge-offs (4,163 ) (58,070 ) (6,695 ) (67,247 ) (48,800 )
Recoveries 1,746 2,329 1,758 7,905 3,865
Net charge-offs (2,417 ) (55,741 ) (4,937 ) (59,342 ) (44,935 )
Provision for loan losses 9,000 12,000 8,000 32,000 66,500
Balance at end of period $ 254,345 $ 247,762 $ 222,297 $ 254,345 $ 222,297
Reserve for unfunded loan commitments
(“RUC”):
Balance at beginning of period $ 27,571 $ 28,571 $ 37,571 $ 29,571 $ 91,071
(Negative provision) provision for credit losses - (1,000 ) (8,000 ) (2,000 ) (61,500 )
Balance at end of period $ 27,571 $ 27,571 $ 29,571 $ 27,571 $ 29,571
Allowance for credit losses (“ACL”) -
Loans:
Balance at beginning of period $ 275,333 $ 320,074 $ 256,805 $ 311,258 $ 291,803
Charge-offs (4,163 ) (58,070 ) (6,695 ) (67,247 ) (48,800 )
Recoveries 1,746 2,329 1,758 7,905 3,865
Net charge-offs (2,417 ) (55,741 ) (4,937 ) (59,342 ) (44,935 )
Provision for credit losses 9,000 11,000 - 30,000 5,000
Balance at end of period $ 281,916 $ 275,333 $ 251,868 $ 281,916 $ 251,868
ALLL to loans and leases held for investment 1.08 % 1.07 % 1.01 % 1.08 % 1.01 %
ACL to loans and leases held for investment 1.20 % 1.19 % 1.15 % 1.20 % 1.15 %
ACL to NPLs 167.47 % 235.19 % 200.86 % 167.47 % 200.86 %
ACL to NPAs 159.27 % 211.19 % 190.48 % 159.27 % 190.48 %
Annualized net charge-offs to average loans and leases 0.04 % 0.89 % 0.09 % 0.32 % 0.23 %

The allowance for credit losses, which includes the reserve for unfunded loan commitments, totaled $281.9 million, or 1.20% of total loans and leases, at September 30, 2024, compared to $275.3 million, or 1.19% of total loans and leases, at June 30, 2024. The $6.6 million increase in the allowance was due to the $9.0 million provision, offset partially by net charge-offs of $2.4 million. The ACL coverage of nonperforming loans was 167% at September 30, 2024 compared to 235% at June 30, 2024.

Net charge-offs were 0.04% of average loans and leases (annualized) for the third quarter, compared to 0.89% for the second quarter. The decrease in net charge-offs in the third quarter was attributable primarily to the second quarter $28.7 million of Civic charge-offs as a result of the related $1.9 billion of Civic loans reclassified to held for sale and two large charge-offs of commercial real estate loans secured by office properties.

10

Deposits and Client Investment Funds

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

September 30, June 30, March 31, December 31, September 30,
Composition of Deposits 2024 2024 2024 2023 2023
(Dollars in thousands)
Noninterest-bearing checking $ 7,811,796 $ 7,825,007 $ 7,833,608 $ 7,774,254 $ 5,579,033
Interest-bearing:
Checking 7,539,899 7,309,833 7,836,097 7,808,764 7,038,808
Money market 5,039,607 4,837,025 5,020,110 6,187,889 5,424,347
Savings 1,992,364 2,040,461 2,016,398 1,997,989 1,441,700
Time deposits:
Non-brokered 2,451,340 2,758,067 2,761,836 3,139,270 3,038,005
Brokered 1,993,263 4,034,057 3,424,358 3,493,603 4,076,788
Total time deposits 4,444,603 6,792,124 6,186,194 6,632,873 7,114,793
Total interest-bearing 19,016,473 20,979,443 21,058,799 22,627,515 21,019,648
Total deposits $ 26,828,269 $ 28,804,450 $ 28,892,407 $ 30,401,769 $ 26,598,681
September 30, June 30, March 31, December 31, September 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Composition as % of Total Deposits 2024 2024 2024 2023 2023
Noninterest-bearing checking 29 % 27 % 27 % 26 % 21 %
Interest-bearing:
Checking 28 % 25 % 27 % 26 % 27 %
Money market 19 % 17 % 17 % 20 % 20 %
Savings 7 % 7 % 7 % 6 % 5 %
Time deposits:
Non-brokered 9 % 10 % 10 % 10 % 12 %
Brokered 8 % 14 % 12 % 12 % 15 %
Total time deposits 17 % 24 % 22 % 22 % 27 %
Total interest-bearing 71 % 73 % 73 % 74 % 79 %
Total deposits 100 % 100 % 100 % 100 % 100 %

Total deposits decreased by $2.0 billion during the third quarter to $26.8 billion at September 30, 2024, due primarily to a decrease in brokered time deposits.

Noninterest-bearing checking totaled $7.81 billion and represented 29% of total deposits at September 30, 2024, compared to $7.83 billion, or 27% of total deposits, at June 30, 2024.

Uninsured and uncollateralized deposits of $6.7 billion represented 25% of total deposits at September 30, 2024 compared to uninsured and uncollateralized deposits of $6.8 billion or 24% of total deposits at June 30, 2024.

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These alternative options include investments managed by BofCal Asset Management Inc. (“BAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $1.3 billion as of September 30, 2024, of which $0.6 billion was managed by BAM.

11

Borrowings

Borrowings increased by approximately $151 million to $1.6 billion at September 30, 2024 from $1.4 billion at June 30, 2024. Higher borrowings included the addition of a $500 million long-term Federal Home Loan Bank (“FHLB”) advance (maturing in 10 years but callable by the FHLB after 2 years) offset partially by the $545 million payoff of the Bank Term Funding Program balance.

Equity

During the third quarter, total stockholders’ equity increased by $88.4 million to $3.5 billion and tangible common equity^(1)^ increased by $95.8 million to $2.6 billion at September 30, 2024. The increase in total stockholders’ equity for the third quarter resulted primarily from a decrease in the unrealized after-tax net loss in AOCI for AFS securities of $103.0 million and net earnings of $8.8 million, partially offset by common and preferred stock dividends of $26.3 million.

At September 30, 2024, book value per common share increased to $17.75 compared to $17.23 at June 30, 2024, and tangible book value per common share^(1)^ increased to $15.63 compared to $15.07 at June 30, 2024.

^(1)^ Non-GAAP measures; refer to section ‘Non-GAAP Measures’

CAPITAL AND LIQUIDITY

Capital ratios remain strong with total risk-based capital at 16.98% and a tier 1 leverage ratio of 9.83% at September 30, 2024.

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

September 30, June 30, March 31, December 31, September 30,
Capital Ratios 2024 (1) 2024 2024 2023 2023
Banc of California, Inc.
Total risk-based capital ratio 16.98 % 16.57 % 16.40 % 16.43 % 17.83 %
Tier 1 risk-based capital ratio 12.87 % 12.62 % 12.38 % 12.44 % 13.84 %
Common equity tier 1 capital ratio 10.45 % 10.27 % 10.09 % 10.14 % 11.23 %
Tier 1 leverage capital ratio 9.83 % 9.51 % 9.12 % 9.00 % 8.65 %
Banc of California
Total risk-based capital ratio 16.59 % 16.19 % 15.88 % 15.75 % 16.37 %
Tier 1 risk-based capital ratio 14.07 % 13.77 % 13.34 % 13.27 % 13.72 %
Common equity tier 1 capital ratio 14.07 % 13.77 % 13.34 % 13.27 % 13.72 %
Tier 1 leverage capital ratio 10.74 % 10.38 % 9.84 % 9.62 % 8.57 %

(1) Capital information for September 30, 2024 is preliminary.

At September 30, 2024, immediately available cash and cash equivalents were $2.4 billion, a decrease of $143.9 million from June 30, 2024. Combined with total available borrowing capacity of $11.7 billion and unpledged AFS securities of $2.1 billion, total available liquidity was $16.2 billion at the end of the third quarter.

12

Conference Call

The Company will host a conference call to discuss its third quarter 2024 financial results at 10:00 a.m. Pacific Time (PT) on Tuesday, October 22, 2024. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 6084667. A live audio webcast will also be available, and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company’s Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (877) 344-7529 and referencing event code 8866602.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $33 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 80 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements and Other Matters

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 include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

13

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

14

Non-GAAP Financial Measures

Included in this press release are certain non-GAAP financial measures, such as tangible assets, tangible equity to tangible assets, tangible book value per common share, adjusted net earnings (loss), return on average tangible common equity, and adjusted return on average tangible common equity, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

Investor Relations Inquiries:

Banc of California, Inc.

(855) 361-2262

Jared Wolff, (310) 424-1230

Joe Kauder, (310) 844-5224

Ann DeVries, (646) 376-7011

Media Contact:

Debora Vrana, Banc of California

(213) 533-3122

Deb.Vrana@bancofcal.com

Source: Banc of California, Inc.

15
BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, June 30, March 31, December 31, September 30,
2024 2024 2024 2023 2023
(Dollars in thousands)
ASSETS:
Cash and due from banks $ 251,869 $ 203,467 $ 199,922 $ 202,427 $ 182,261
Interest-earning deposits in financial institutions 2,302,358 2,495,343 2,885,306 5,175,149 5,887,406
Total cash and cash equivalents 2,554,227 2,698,810 3,085,228 5,377,576 6,069,667
Securities available-for-sale 2,300,284 2,244,031 2,286,682 2,346,864 4,487,172
Securities held-to-maturity 2,301,263 2,296,708 2,291,984 2,287,291 2,282,586
FRB and FHLB stock 145,123 132,380 129,314 126,346 17,250
Total investment securities 4,746,670 4,673,119 4,707,980 4,760,501 6,787,008
Loans held for sale 28,639 1,935,455 80,752 122,757 188,866
Gross loans and leases held for investment 23,553,534 23,255,297 25,517,028 25,534,730 21,969,789
Deferred fees, net (25,757 ) (26,388 ) (44,006 ) (45,043 ) (48,843 )
Total loans and leases held for investment, net of deferred fees 23,527,777 23,228,909 25,473,022 25,489,687 21,920,946
Allowance for loan and lease losses (254,345 ) (247,762 ) (291,503 ) (281,687 ) (222,297 )
Total loans and leases held for investment, net 23,273,432 22,981,147 25,181,519 25,208,000 21,698,649
Equipment leased to others under operating leases 314,998 335,968 339,925 344,325 352,330
Premises and equipment, net 143,200 145,734 144,912 146,798 50,236
Bank owned life insurance 343,212 341,779 341,806 339,643 207,946
Goodwill 216,770 215,925 198,627 198,627 -
Intangible assets, net 140,562 148,894 157,226 165,477 24,192
Deferred tax asset, net 706,849 738,534 741,158 739,111 506,248
Other assets 964,054 1,028,474 1,094,383 1,131,249 992,691
Total assets $ 33,432,613 $ 35,243,839 $ 36,073,516 $ 38,534,064 $ 36,877,833
LIABILITIES:
Noninterest-bearing deposits $ 7,811,796 $ 7,825,007 $ 7,833,608 $ 7,774,254 $ 5,579,033
Interest-bearing deposits 19,016,473 20,979,443 21,058,799 22,627,515 21,019,648
Total deposits 26,828,269 28,804,450 28,892,407 30,401,769 26,598,681
Borrowings 1,591,833 1,440,875 2,139,498 2,911,322 6,294,525
Subordinated debt 942,151 939,287 937,717 936,599 870,896
Accrued interest payable and other liabilities 574,162 651,379 709,744 893,609 714,454
Total liabilities 29,936,415 31,835,991 32,679,366 35,143,299 34,478,556
STOCKHOLDERS’ EQUITY:
Preferred stock 498,516 498,516 498,516 498,516 498,516
Common stock 1,586 1,583 1,583 1,577 1,231
Class B non-voting common stock 5 5 5 5 -
Non-voting common stock equivalents 98 101 101 108 -
Additional paid-in-capital 3,802,314 3,813,312 3,827,777 3,840,974 2,798,611
Retained deficit (478,173 ) (477,010 ) (497,396 ) (518,301 ) (25,399 )
Accumulated other comprehensive loss, net (328,148 ) (428,659 ) (436,436 ) (432,114 ) (873,682 )
Total stockholders’ equity 3,496,198 3,407,848 3,394,150 3,390,765 2,399,277
Total liabilities and stockholders’ equity $ 33,432,613 $ 35,243,839 $ 36,073,516 $ 38,534,064 $ 36,877,833
Common shares outstanding (1) 168,879,566 168,875,712 169,013,629 168,959,063 78,806,969
(1) Common shares outstanding include non-voting common equivalents that are participating securities.
16
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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
2024 2024 2023 2024 2023
(In thousands, except per share amounts)
Interest income:
Loans and leases $ 369,913 $ 388,853 $ 310,392 $ 1,144,231 $ 1,150,049
Investment securities 34,912 33,836 45,326 103,051 133,716
Deposits in financial institutions 42,068 39,900 90,366 140,904 219,995
Total interest income 446,893 462,589 446,084 1,388,186 1,503,760
Interest expense:
Deposits 180,986 186,106 205,982 561,899 540,663
Borrowings 16,970 30,311 94,234 85,405 324,270
Subordinated debt 16,762 16,684 15,139 50,117 42,750
Total interest expense 214,718 233,101 315,355 697,421 907,683
Net interest income 232,175 229,488 130,729 690,765 596,077
Provision for credit losses 9,000 11,000 - 30,000 5,000
Net interest income after provision for credit losses 223,175 218,488 130,729 660,765 591,077
Noninterest income:
Service charges on deposit accounts 4,568 4,540 4,018 13,813 11,906
Other commissions and fees 8,256 8,629 7,641 25,027 29,226
Leased equipment income 17,176 11,487 14,554 40,379 50,798
(Loss) gain on sale of loans and leases (62 ) 1,135 (1,901 ) 625 (157,820 )
Loss on sale of securities (59,946 ) - - (59,946 ) -
Dividends and gains on equity investments 3,730 1,166 3,837 7,964 7,593
Warrant income (loss) 211 (324 ) (88 ) 65 (545 )
LOCOM HFS adjustment (74 ) (38 ) 307 218 (11,636 )
Other income 10,689 3,197 15,440 20,011 22,595
Total noninterest (loss) income (15,452 ) 29,792 43,808 48,156 (47,883 )
Noninterest expense:
Compensation 85,585 85,914 71,642 263,735 242,999
Occupancy 16,892 17,455 15,293 52,315 45,743
Information technology and data processing 14,995 15,459 12,840 45,872 38,706
Other professional services 5,101 5,183 5,597 15,359 21,643
Insurance and assessments 12,708 26,431 38,298 59,600 75,650
Intangible asset amortization 8,485 8,484 2,389 25,373 7,189
Leased equipment depreciation 7,144 7,511 8,333 22,175 26,796
Acquisition, integration and reorganization costs (510 ) (12,650 ) 9,925 (13,160 ) 30,833
Customer related expense 34,475 32,405 26,971 97,799 78,278
Loan expense 3,994 4,332 4,243 12,817 16,012
Goodwill impairment - - - - 1,376,736
Other expense 7,340 13,119 5,572 28,485 133,958
Total noninterest expense 196,209 203,643 201,103 610,370 2,094,543
Earnings (loss) before income taxes 11,514 44,637 (26,566 ) 98,551 (1,551,349 )
Income tax expense (benefit) 2,730 14,304 (3,222 ) 28,582 (135,167 )
Net earnings (loss) 8,784 30,333 (23,344 ) 69,969 (1,416,182 )
Preferred stock dividends 9,947 9,947 9,947 29,841 29,841
Net (loss) earnings available to common and equivalent stockholders $ (1,163 ) $ 20,386 $ (33,291 ) $ 40,128 $ (1,446,023 )
Basic and diluted (loss) earnings per common share (1) $ (0.01 ) $ 0.12 $ (0.42 ) $ 0.24 $ (18.61 )
Basic and diluted weighted average number of common shares outstanding (1) 168,583 168,432 77,881 168,386 77,678
(1) Common shares include non-voting common equivalents that are participating securities.
17
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BANC OF CALIFORNIA, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30,
Profitability and Other Ratios 2024 2024 2023 2024 2023
Return on average assets (1) 0.10 % 0.34 % (0.24 )% 0.26 % (4.60 )%
Adjusted ROAA (1)(2) 0.59 % 0.34 % (0.16 )% 0.41 % 0.40 %
Return on average equity (1) 1.01 % 3.59 % (3.73 )% 2.74 % (61.86 )%
Return on average tangible common equity (1)(2) 0.70 % 4.42 % (6.47 )% 3.13 % (11.66 )%
Adjusted return on average tangible common equity (1)(2) 7.30 % 4.42 % (4.64 )% 5.12 % 6.31 %
Dividend payout ratio (3) (1000.00 )% 83.33 % (2.38 )% 125.00 % (1.45 )%
Average yield on loans and leases (1) 6.18 % 6.18 % 5.54 % 6.14 % 5.95 %
Average yield on interest-earning assets (1) 5.63 % 5.65 % 4.94 % 5.61 % 5.20 %
Average cost of interest-bearing deposits (1) 3.52 % 3.58 % 3.78 % 3.57 % 3.35 %
Average total cost of deposits (1) 2.54 % 2.60 % 2.98 % 2.60 % 2.50 %
Average cost of interest-bearing liabilities (1) 3.80 % 3.93 % 4.34 % 3.89 % 4.03 %
Average total cost of funds (1) 2.82 % 2.95 % 3.61 % 2.93 % 3.24 %
Net interest spread 1.83 % 1.72 % 0.60 % 1.72 % 1.17 %
Net interest margin (1) 2.93 % 2.80 % 1.45 % 2.79 % 2.07 %
Noninterest income to total revenue (4) (7.13 )% 11.49 % 25.10 % 6.52 % (8.73 )%
Noninterest expense to average total assets (1) 2.27 % 2.29 % 2.11 % 2.27 % 6.80 %
Loans to deposits ratio 87.80 % 87.36 % 83.12 % 87.80 % 83.12 %
Average loans and leases to average deposits 84.05 % 87.95 % 81.03 % 86.22 % 89.61 %
Average investment securities to average total assets 13.55 % 13.00 % 18.30 % 13.03 % 17.23 %
Average stockholders’ equity to average total assets 10.03 % 9.48 % 6.56 % 9.50 % 7.43 %
(1) Annualized.
(2) Non-GAAP measure.
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(3) Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings per common and equivalent share.
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(4) Total revenue equals the sum of net interest income and noninterest income.
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18
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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Three Months Ended
September 30, 2024 June 30, 2024 September 30, 2023
Interest Average Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost Balance Expense Cost
(Dollars in thousands)
Assets:
Loans and leases (1) $ 23,803,691 $ 369,913 6.18 % $ 25,325,578 $ 388,853 6.18 % $ 22,226,390 $ 310,392 5.54 %
Investment securities 4,665,549 34,912 2.98 % 4,658,690 33,836 2.92 % 6,919,948 45,326 2.60 %
Deposits in financial institutions 3,106,227 42,068 5.39 % 2,960,292 39,900 5.42 % 6,645,335 90,366 5.40 %
Total interest-earning assets 31,575,467 446,893 5.63 % 32,944,560 462,589 5.65 % 35,791,673 446,084 4.94 %
Other assets 2,850,718 2,889,907 2,016,085
Total assets $ 34,426,185 $ 35,834,467 $ 37,807,758
Liabilities and Stockholders’ Equity:
Interest checking $ 7,644,515 61,880 3.22 % $ 7,673,902 61,076 3.20 % $ 6,983,013 57,237 3.25 %
Money market 4,958,777 32,361 2.60 % 4,962,567 32,776 2.66 % 5,662,980 42,516 2.98 %
Savings 2,028,931 17,140 3.36 % 2,002,670 16,996 3.41 % 1,163,827 10,255 3.50 %
Time 5,841,965 69,605 4.74 % 6,274,242 75,258 4.82 % 7,801,880 95,974 4.88 %
Total interest-bearing deposits 20,474,188 180,986 3.52 % 20,913,381 186,106 3.58 % 21,611,700 205,982 3.78 %
Borrowings 1,063,541 16,970 6.35 % 2,013,600 30,311 6.05 % 6,325,537 94,234 5.91 %
Subordinated debt 940,480 16,762 7.09 % 938,367 16,684 7.15 % 870,968 15,139 6.90 %
Total interest-bearing liabilities 22,478,209 214,718 3.80 % 23,865,348 233,101 3.93 % 28,808,205 315,355 4.34 %
Noninterest-bearing demand deposits 7,846,641 7,881,620 5,817,488
Other liabilities 648,760 692,149 701,355
Total liabilities 30,973,610 32,439,117 35,327,048
Stockholders’ equity 3,452,575 3,395,350 2,480,710
Total liabilities and stockholders’ equity $ 34,426,185 $ 35,834,467 $ 37,807,758
Net interest income (1) $ 232,175 $ 229,488 $ 130,729
Net interest spread 1.83 % 1.72 % 0.60 %
Net interest margin 2.93 % 2.80 % 1.45 %
Total deposits (2) $ 28,320,829 $ 180,986 2.54 % $ 28,795,001 $ 186,106 2.60 % $ 27,429,188 $ 205,982 2.98 %
Total funds (3) $ 30,324,850 $ 214,718 2.82 % $ 31,746,968 $ 233,101 2.95 % $ 34,625,693 $ 315,355 3.61 %
(1) Includes net loan discount accretion of $23.0 million and $21.8 million for the three months ended September 30, 2024 and June 30, 2024 and net loan<br> premium amortization of $1.7 million for the three months ended September 30, 2023.
(2) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.  The cost of total deposits is calculated as<br> annualized interest expense on total deposits divided by average total deposits.
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(3) Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized<br> total interest expense divided by average total funds.
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19
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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Nine Months Ended
September 30, 2024 September 30, 2023
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
(Dollars in thousands)
Assets:
Loans and leases (1)(2)(3) $ 24,878,682 $ 1,144,231 6.14 % $ 25,910,694 $ 1,152,393 5.95 %
Investment securities 4,681,872 103,051 2.94 % 7,097,438 133,716 2.52 %
Deposits in financial institutions 3,479,130 140,904 5.41 % 5,731,733 219,995 5.13 %
Total interest-earning assets (1) 33,039,684 1,388,186 5.61 % 38,739,865 1,506,104 5.20 %
Other assets 2,888,600 2,447,563
Total assets $ 35,928,284 $ 41,187,428
Liabilities and Stockholders’ Equity:
Interest checking $ 7,733,588 184,505 3.19 % $ 6,890,661 159,992 3.10 %
Money market 5,218,774 106,488 2.73 % 7,049,910 145,748 2.76 %
Savings 2,022,600 52,166 3.45 % 833,719 14,532 2.33 %
Time 6,073,993 218,740 4.81 % 6,815,786 220,391 4.32 %
Total interest-bearing deposits 21,048,955 561,899 3.57 % 21,590,076 540,663 3.35 %
Borrowings 1,986,468 85,405 5.74 % 7,688,698 324,270 5.64 %
Subordinated debt 938,624 50,117 7.13 % 869,353 42,750 6.57 %
Total interest-bearing liabilities 23,974,047 697,421 3.89 % 30,148,127 907,683 4.03 %
Noninterest-bearing demand deposits 7,804,534 7,323,673
Other liabilities 736,739 654,932
Total liabilities 32,515,320 38,126,732
Stockholders’ equity 3,412,964 3,060,696
Total liabilities and stockholders’ equity $ 35,928,284 $ 41,187,428
Net interest income (1)(2) $ 690,765 $ 598,421
Net interest spread (1) 1.72 % 1.17 %
Net interest margin (1) 2.79 % 2.07 %
Total deposits (4) $ 28,853,489 $ 561,899 2.60 % $ 28,913,749 $ 540,663 2.50 %
Total funds (5) $ 31,778,581 $ 697,421 2.93 % $ 37,471,800 $ 907,683 3.24 %
(1) Tax equivalent.
(2) Includes net loan discount accretion of $67.3 million for the nine months ended September 30, 2024 and net loan premium amortization of $6.0 million for the<br> nine months ended September 30, 2023.
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(3) Includes tax-equivalent adjustments of $0.0 million and $2.3 million for the nine months ended September 30, 2024 and 2023 related to tax-exempt income on loans. The federal<br> statutory tax rate utilized was 21%.
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(4) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized<br> interest expense on total deposits divided by average total deposits.
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(5) Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is calculated as annualized<br> total interest expense divided by average total funds.
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20
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BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible assets, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity and adjusted net earnings (loss). These non-GAAP measures are used by management in its analysis of the Company’s performance.

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

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

Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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

21
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common Equity to
Tangible Assets and Tangible September 30, June 30, March 31, December 31, September 30,
Book Value Per Common Share 2024 2024 2024 2023 2023
(Dollars in thousands, except per share amounts)
Stockholders’ equity $ 3,496,198 $ 3,407,848 $ 3,394,150 $ 3,390,765 $ 2,399,277
Less: Preferred stock 498,516 498,516 498,516 498,516 498,516
Total common equity 2,997,682 2,909,332 2,895,634 2,892,249 1,900,761
Less: Goodwill and Intangible assets 357,332 364,819 355,853 364,104 24,192
Tangible common equity $ 2,640,350 $ 2,544,513 $ 2,539,781 $ 2,528,145 $ 1,876,569
Total assets $ 33,432,613 $ 35,243,839 $ 36,073,516 $ 38,534,064 $ 36,877,833
Less: Goodwill and Intangible assets 357,332 364,819 355,853 364,104 24,192
Tangible assets $ 33,075,281 $ 34,879,020 $ 35,717,663 $ 38,169,960 $ 36,853,641
Total stockholders’ equity to total assets 10.46 % 9.67 % 9.41 % 8.80 % 6.51 %
Tangible common equity to tangible assets 7.98 % 7.30 % 7.11 % 6.62 % 5.09 %
Book value per common share (1) $ 17.75 $ 17.23 $ 17.13 $ 17.12 $ 24.12
Tangible book value per common share (2) $ 15.63 $ 15.07 $ 15.03 $ 14.96 $ 23.81
Common shares outstanding (3) 168,879,566 168,875,712 169,013,629 168,959,063 78,806,969
(1) Total common equity divided by common shares outstanding.
(2) Tangible common equity divided by common shares outstanding.
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(3) Common shares outstanding include non-voting common equivalents that are participating securities.
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22
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended Nine Months Ended
Return on Average Tangible September 30, June 30, September 30, September 30,
Common Equity (“ROATCE”) 2024 2024 2023 2024 2023
(Dollars in thousands)
Net earnings (loss) $ 8,784 $ 30,333 $ (23,344 ) $ 69,969 $ (1,416,182 )
Earnings (loss) before income taxes $ 11,514 $ 44,637 $ (26,566 ) $ 98,551 $ (1,551,349 )
Add: Intangible asset amortization 8,485 8,484 2,389 25,373 7,189
Add: Goodwill impairment - - - - 1,376,736
Adjusted earnings (loss before income taxes used for ROATCE 19,999 53,121 (24,177 ) 123,924 (167,424 )
Adjusted income tax expense (benefit) (1) 5,522 15,203 (2,212 ) 34,215 (15,319 )
Adjusted net earnings (loss) for ROATCE 14,477 37,918 (21,965 ) 89,709 (152,105 )
Less: Preferred stock dividends 9,947 9,947 9,947 29,841 29,841
Adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE $ 4,530 $ 27,971 $ (31,912 ) $ 59,868 $ (181,946 )
Average stockholders’ equity $ 3,452,575 $ 3,395,350 $ 2,480,710 $ 3,412,964 $ 3,060,696
Less: Average goodwill and intangible assets 361,316 352,934 25,499 358,321 476,721
Less: Average preferred stock 498,516 498,516 498,516 498,516 498,516
Average tangible common equity $ 2,592,743 $ 2,543,900 $ 1,956,695 $ 2,556,127 $ 2,085,459
Return on average equity (2) 1.01 % 3.59 % (3.73 )% 2.74 % (61.86 )%
ROATCE (3) 0.70 % 4.42 % (6.47 )% 3.13 % (11.66 )%
(1) Effective tax rates of 27.61%, 28.62%, and 9.15% used for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.<br> Effective tax rates of 27.61% and 9.15% used for the nine months ended September 30, 2024 and 2023.
(2) Annualized net earnings (loss) divided by average stockholders’ equity.
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(3) Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.
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(4) Annualized adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.
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23
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended Nine Months Ended
Adjusted Return on Average September 30, September 30, September 30,
Tangible Common Equity (“ROATCE”) 2024 2023 2024 2023
(Dollars in thousands)
Net earnings (loss) $ 8,784 $ (23,344 ) $ 69,969 $ (1,416,182 )
Earnings (loss) before income taxes $ 11,514 $ (26,566 ) $ 98,551 $ (1,551,349 )
Add: Intangible asset amortization 8,485 2,389 25,373 7,189
Add: Goodwill impairment - - - 1,376,736
Add: FDIC special assessment - - 5,816 -
Add: Loss on sale of securities 59,946 - 59,946 -
Less: Acquisition, integration, and reorganization costs (510 ) 9,925 (13,160 ) 30,833
Add: Loan fair value loss adjustments - - - 170,971
Add: Unfunded commitments fair value loss adjustments - - - 106,767
Adjusted earnings before income taxes used for adjusted ROATCE 79,435 (14,252 ) 176,526 141,147
Adjusted income tax expense (1) 21,932 (1,304 ) 48,739 12,915
Adjusted net earnings for adjusted ROATCE 57,503 (12,948 ) 127,787 128,232
Less: Preferred stock dividends 9,947 9,947 29,841 29,841
Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE $ 47,556 $ (22,895 ) $ 97,946 $ 98,391
Average stockholders’ equity $ 3,452,575 $ 2,480,710 $ 3,412,964 $ 3,060,696
Less: Average goodwill and intangible assets 361,316 25,499 358,321 476,721
Less: Average preferred stock 498,516 498,516 498,516 498,516
Average tangible common equity $ 2,592,743 $ 1,956,695 $ 2,556,127 $ 2,085,459
Adjusted ROATCE (2) 7.30 % (4.64 )% 5.12 % 6.31 %
(1) Effective tax rates of 27.61% used for the 2024 periods and 9.15% for the 2023 periods.
(2) Annualized adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.
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24
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Adjusted Net Earnings, Net Earnings Three Months Ended Nine Months Ended
Available to Common and Equivalent September 30, September 30, September 30,
Stockholders, Diluted EPS, and ROAA 2024 2023 2024 2023
(In thousands, except per share amounts)
Net earnings (loss) $ 8,784 $ (23,344 ) $ 69,969 $ (1,416,182 )
Earnings (loss) before income taxes $ 11,514 $ (26,566 ) $ 98,551 $ (1,551,349 )
Add: FDIC special assessment - - 5,816 -
Add: Loss on sale of securities 59,946 - 59,946 -
Less: Acquisition, integration, and reorganization costs (510 ) 9,925 (13,160 ) 30,833
Add: Loan fair value loss adjustments - - - 170,971
Add: Unfunded commitments fair value loss adjustments - - - 106,767
Add: Goodwill impairment - - - 1,376,736
Adjusted earnings (loss) before income taxes 70,950 (16,641 ) 151,153 133,958
Adjusted income tax expense (benefit) (1) 19,589 (1,523 ) 41,733 12,257
Adjusted net earnings (loss) 51,361 (15,118 ) 109,420 121,701
Less: Preferred stock dividends (9,947 ) (9,947 ) (29,841 ) (29,841 )
Adjusted net earnings (loss) available to common and equivalent stockholders $ 41,414 $ (25,065 ) $ 79,579 $ 91,860
Weighted average common shares outstanding 168,583 77,881 168,386 77,678
Diluted (loss) earnings per common share $ (0.01 ) $ (0.42 ) $ 0.24 $ (18.61 )
Adjusted diluted earnings per common share (2) $ 0.25 $ (0.32 ) $ 0.47 $ 1.18
Average total assets $ 34,426,185 $ 37,807,758 $ 35,928,284 $ 41,187,428
Return on average assets (“ROAA”) (3) 0.10 % (0.24 )% 0.26 % (4.60 )%
Adjusted ROAA (4) 0.59 % (0.16 )% 0.41 % 0.40 %
(1) Effective tax rates of 27.61% used for the 2024 periods and 9.15% for the 2023 periods.
(2) Adjusted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding.
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(3) Annualized net earnings (loss) divided by average assets.
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(4) Annualized adjusted net earnings (loss) divided by average assets.
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25
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Exhibit 99.2

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

Forward-Looking Statements and Other Matters  This presentation includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (the “Company”) with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.  Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; and in the case of our recent merger with PacWest Bancorp (“PacWest”), reputational risk, regulatory risk and potential adverse reactions of the Company’s or PacWest’s customers, suppliers, vendors, employees or other business partners; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and from time to time in other documents that we file with or furnish to the SEC.  Included in this presentation are certain non-GAAP financial measures, such as tangible assets, tangible equity to tangible assets, tangible book value per common share, adjusted net earnings (loss), return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision income, and adjusted pre-tax pre-provision income, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Financial Information” and “Non-GAAP Reconciliation” sections of the appendix of this presentation for additional detail including reconciliations of non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.   Third Quarter 2024 Earnings | 2

Key Third Quarter Highlights  Adjusted 3Q24 EPS(1) of $0.25 and achieved outlook targets for NIM and expenses a quarter early  Significantly grew core earnings through:  NIM expansion of 13 bps QoQ  Noninterest expense reduction of 9% QoQ(2)  Repositioned balance sheet:  Civic sale & securities repositioning  Paydowns of BTFP and brokered deposits   Grew capital, tangible book value(1), and profitability metrics on an adjusted basis  3Q24 FDIC assessment accrual lowers to $13.0mm(3) from $24.1mm in 2Q24, dropping ahead of schedule  Freed up approximately $100mm of capital to reposition the balance sheet and improve capital ratios  Generated liquidity to reduce wholesale funding and support growth  Repositioned AFS securities throughout quarter, which will expand yield by ~270 bps; $60mm realized pre-tax loss  Achieved targeted quarterly NIM range of 2.90% to 3.00% a quarter early  Strong execution in lowering funding costs and core deposit growth  Achieved quarterly operating expense target of between $195mm to $200mm a quarter early with normalized FDIC assessment level  Wholesale funding ratio of 10.7% (10% to 12% target)  L/D ratio of 87.8% (85% to 90% target)  NIB deposit ratio of 29.1% (28% to 29% target)   Third Quarter 2024 Earnings | 3  Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation.  Excludes acquisition related costs.  Excludes $2.7mm FDIC expense adjustment for 2Q24 that positively impacted 3Q24 earnings.

Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. No adjusted earnings were reported in 2Q24.  Includes restricted cash of $183mm.  Operating Results  PTPP(1) / Adjusted PTPP(1)  EPS / Adjusted EPS(1)  ROAA / Adjusted ROAA(1)  ROATCE(1) / Adjusted ROATCE(1)  NIM   $55.6mm/NA   $0.12/NA  0.34%/NA   4.42%/NA    2.80%  Cash / assets(2)  Loans / deposits  Wholesale funding / assets  Avg. NIB deposits / avg. deposits  Balance Sheet Results   7.7%    87.4%   15.5%   27.4%  Increasing Capital  CET 1 capital ratio  Total risk-based capital ratio  Book value per share  Tangible book value per share(1)   10.3%   16.6%  $17.23  $15.07  Strong Credit Reserves  ACL ratio  NCO ratio   1.19%   0.89%  3Q24 Financial Highlights  Delivered strong earnings growth, repositioned balance sheet and increased capital  Adjusted PTPP(1) of $80mm compared to PTPP of $55.6mm in 2Q24  NIM of 2.93% expanded 13 bps QoQ  Noninterest income, excluding loss on sale of securities, increased due to several elevated items (see slide 14)  Stable balance sheet with strong liquidity and wholesale funding ratio down ~5%  Significant growth in CET 1 and TBVPS driven by strong earnings and capital freed up from Civic sale  Stable credit reserves with minimal charge-offs   $20.5mm/$80.0mm  ($0.01)/$0.25    0.10%/0.59%    0.70%/7.30%    2.93%   7.6%    87.8%   10.7%   27.7%   10.5%   17.0%  $17.75  $15.63   1.20%   0.04%  3Q24  2Q24   Third Quarter 2024 Earnings | 4

3Q24 Earnings Results  2Q24  3Q24  -6 bps  2Q24  3Q24  -13 bps  2Q24  3Q24  -13 bps  Cost of funds  Cost of deposits  Cost of interest-bearing liabilities  Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation. No adjusted earnings were reported in 2Q24.  Net interest income of $232.2mm reflects 1.2% increase QoQ:  Interest income declined $15.7mm due to smaller balance sheet driven by Civic loan portfolio sale  Interest expense declined $18.4mm due to reduction in higher cost funding  3Q includes a $60mm loss on $0.7B of securities repositioning  Noninterest income, excluding loss on sale of securities, increased $15.9mm QoQ due primarily to a $8.5mm increase in fair value marks and a $6.4mm lease residual gain   Noninterest expenses declined due to additional merger synergies and normalized FDIC assessment accrual    Third Quarter 2024 Earnings | 5

3Q24 Noteworthy Items  3Q24 results included multiple noteworthy items, which provided $0.05 EPS benefit  3Q24 reported EPS of ($0.01). Adjusted EPS of $0.25 excludes $60mm securities repositioning pre-tax loss and a $0.5mm merger, acquisition and integration reversal  Lease residual gain driven by sale of equipment leasing higher than historical levels  Fair value adjustments driven by normal MTM accounting and includes positive credit-linked notes (“CLN”) fair value mark partially offset by negative equity investments fair value mark  FDIC expense adjustment for 2Q24 positively impacted 3Q24 earnings   YTD true-up adjustment for tax rate   Third Quarter 2024 Earnings | 6  1. 28% tax rate used for calculations

Significant balance sheet repositioning largely completed; drives NIM improvement and positions company for future growth  Sold Civic loan portfolio    Third Quarter 2024 Earnings | 7  Assets  Liabilities  Repositioning Actions  Transaction Size  $1.95B  Repositioned securities portfolio   Paid off remaining BTFP   Purchased lender finance loans  Reduced brokered deposits  Purchased FHLB putables  $742mm  $319mm(1)  $545mm  ~$1.85B  $500mm  Comments  Generated ~$1.91B liquidity and ~$100mm of capital   Reinvested in similar quality securities at a ~270 bps yield pick up  Acquired 8.8% yielding portfolio at par  Cost of ~5.4%  Average cost of ~5.35% at time of retirement  10-year maturity with 2-year no call feature at < 3.2%  Restructured BOLI portfolio  $267mm  Executed 1035 tax-free exchange with 163 bps yield improvement  1. Acquired commitments of $620mm, funded loans of $319mm.

Interest Rate Sensitivity  Well-positioned for declining rates with $7.3B more liabilities repricing or maturing than assets over the next year  Rate-sensitive assets: 38%(1)  $9.8B of loans are variable or reprice / mature within one year  $2.3B earning cash  $0.5B securities  Rate-sensitive liabilities: 59%(1)  $14.8B of interest-bearing deposits, excluding CDs  $4.1B of CDs that mature or reprice within one year  $1.0B of borrowings and other(2) that mature or reprice within one year  Well positioned for declining rate environment with $7.3B more in rate sensitive liabilities than assets  Loans Years to Maturity/Repricing   Loan Composition  Asset/Liabilities Repricing Mix ($B)  Rate sensitive defined as assets or liabilities that are variable rate or repricing/maturing within one year.  Other includes TruPS and subordinated debt that reprices within one year.  Note: Short Term (“ST”) Variable: Variable rate loans which resets within one year.    Third Quarter 2024 Earnings | 8  $12.9  $20.6  $19.7  $13.8  Short Term A/L  Long Term A/L

Loan Interest Rate Sensitivity  Over 99% of adjustable-rate loans with floors are at or above their respective floors  Variable rate loans are almost entirely Prime or SOFR based  Roughly half of fixed rate and hybrid loans will reset or mature within the next three years  Near term maturing or hybrid resets will price to higher rates despite declining rate environment  Near-term fixed rate maturities will reset higher  Years to Fixed Rate Loans Maturities or Hybrid Rate Loans Reset  Floors: Variable Rate Loans  Loan Portfolio by Index Rate   Third Quarter 2024 Earnings | 9  92%  39%  38%  38%  91%  $2.7B  WAC 4.67%  $1.8B  WAC 4.47%  $2.2B  WAC 4.17%  $8.4B  WAC 3.84%  Note: Actual loan portfolio yield is higher than WAC due to discount accretion.

Management Outlook  4Q24 outlook focused on strengthening core earnings in uncertain economic environment  NIM improvement to be driven by benefits of balance sheet repositioning, execution of core strategy and lower rates  Laser focused on prudent expense management to achieve low end of targeted range  4Q24 outlook assumes one additional 25 bps rate cut  Continue to evaluate additional opportunities to optimize the balance sheet while pivoting to growth  Future state financial targets remain unchanged  NIM of 3.00% to 3.10%   Assumes consistent balance sheet levels  Assumes one additional 25 bps rate cut in mid-November  4Q24 NIE expected at ~$195mm-$200mm  Achieved target range in 3Q24, targeting the low-end of the range in 4Q24  Wholesale funding ratio 10-12%  Loan / deposits 85%-90%  NIB / deposits 28%-29%  Within target range for all referenced metrics  Balance sheet size may vary based on execution of opportunities to further optimize balance sheet   Third Quarter 2024 Earnings | 10  ROAA ~1.1%+  ROTCE ~13%+  Meaningful progress in 3Q24 toward goals, with continued focus on growth in EPS  Timing will depend on continued execution of core strategy combined with the impact of the economic and interest rate environments

Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.  Wholesale funding defined as borrowings plus brokered time deposits.  Balance Sheet  Increased balance sheet efficiency with shift into core funding driven by lower wholesale  Included multiple strategic actions to optimize our balance sheet, which resulted in a decline in total assets  Sale of $1.95B Civic loan portfolio   Repositioned $0.7B of investment securities  Paid off remaining $545mm in BTFP  Retired $1.85B of brokered deposits  Core loan portfolio increased $366mm or 7% annualized   Spot NIB deposits stable and increased 1.9% to 29.1% of total deposits  Wholesale funding ratio of 10.7% significantly lower QoQ due to decrease in brokered time deposits  CET 1 ratio increased 18bps to 10.45%  3Q24 Highlights   Third Quarter 2024 Earnings | 11

Net Interest Income and Net Interest Margin Expansion  NIM expanded 13 bps to 2.93%  NII increased $2.7mm driven by:  Average borrowings decreased $1.0B: +$13mm  Average interest-bearing deposits decreased $0.4B and interest-bearing deposits costs decreased 6 bps: +$5mm  Loans: +$5mm  Higher cash balances: +$2mm  Securities yields increased from the repositioning: +$1mm  Civic sale: ($24mm)  1.69%  $151.0  4Q23  2.66%  $229.1  1Q24  2.80%  $229.5  2Q24  2.93%  $232.2  3Q24  Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%)  Impact to NII ($mm) from cumulative change in yields, rates and mix  2Q24  +$13.3  Borrowings  +$5.1  Deposits  +$4.9  Loans  +$2.2  Cash / Other EA  +$1.1  Securities  -$23.9  Civic Sale  3Q24  $229.5  $232.2  Lower funding costs and strengthening asset mix drive NII and NIM expansion   Third Quarter 2024 Earnings | 12  3Q24 Highlights

Funding Cost Reduction Actions and Mix Shift  Deposit composition trends reflects results of balance sheet repositioning and post-merger community bank-focused strategy  Lower funding costs reflect reduction in higher cost funding including BTFP and brokered deposits  Lower deposit costs resulting from increased core deposit percentage of overall funding mix  3Q24 Highlights  Strengthening Funding Mix(1)  Ongoing interest expense reduction results from focused strategy to strengthen funding mix and reprice deposits  4Q23  1Q24  4.8%  2Q24  5.6%  3Q24  Deposits excluding brokered CDs  Brokered CDs  Borrowings  4Q23  1Q24  2Q24  3Q24  Reduced Cost of Liabilities  Excludes subordinated debt and accrued interest payable and other liabilities.  Average total cost of funds  Average total cost of deposits  % of Total Funding(1)   Third Quarter 2024 Earnings | 13

Excludes gain (loss) on sale of securities and loans.  Excludes nonrecurring legal recovery of $7.6mm and elevated SBIC-related income distributions of $3.9mm.  Illustrative fee income when excluding $2.4mm negative mark for Credit-Linked Notes and negative $3.2mm mark for equity CRA investments  Illustrative fee income when excluding $4.4mm positive mark for Credit-Linked Notes, negative $1.5mm mark for equity CRA investments and $6.4mm lease equipment gain.  Note: Other income includes revenue from BOLI, warrants, distributions and other miscellaneous gains or losses  Noninterest IncomeComposition  Leased equipment income includes $6.4mm gain on sale of lease residual   Other income increased $8.0mm QoQ mainly driven by the impact of the positive fair value marks on credit-linked notes Service charges on deposits and other commissions and fees were relatively stable  Dividends and gains on equity investments up $2.5mm QoQ due to both mark-to-market and income from CRA equity investments  3Q24 excludes $60mm loss on sale of securities  3Q24 Highlights  4Q23  1Q24  2Q24  3Q24  $34.0  $34.3(1)  $28.7(1)  $44.6(1)  ($ in millions)  (1,2)  3Q24 noninterest income elevated due to lease residual gain and positive fair value mark  $34.3(1,3)  3Q24 includes $6.4mm lease residual gain, $4.4mm positive mark for credit-linked notes and ($1.6mm) mark for equity CRA investments   Third Quarter 2024 Earnings | 14  $35.0(1,4)  Service Charges on Deposits  Other Commissions and Fees  Leased Equipment Income  Dividends and Gains on Equity Investments  Other Income

Noninterest Expenses  Adjusted noninterest expense / average assets ratio of 1.87%(1)  Noninterest expenses down 31% from normalized 4Q23 expenses(4)  Achieved majority of FDIC assessment normalization in 3Q24  Headcount at September 30th down approximately 600 FTE to ~1,960 FTE since the merger announcement date  Compensation expense slightly lower QoQ  2Q24 compensation expense included the benefit of $5.0mm adjustment from restricted stock expense   Customer-related expenses up $2mm QoQ due to shift in HOA deposit mix  3Q24 Highlights  Achieved noninterest expense target range of $195mm to $200mm  (1)  Adjusted Noninterest Expense / Average Assets ratio excludes customer-related expenses and merger and integration costs. Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation.  3Q24 and 1Q24 insurance and assessments includes a $2.7mm and $5mm benefit, respectively from reversal of prior quarter FDIC insurance expense.  2Q24 other expense included a $3.9mm expense related to the Civic sale.  $251.8 of actual total operating noninterest expense and $283.5 million normalized expenses adjusted to include combined company expenses for a full quarter and adjust incentive compensation to target.  4Q23  1Q24  2Q24  3Q24  Noninterest Expense / Average Assets Ratio  Adjusted Noninterest Expense / Average Assets Ratio  Noninterest Expense / Average Assets Ratio   Third Quarter 2024 Earnings | 15  (2)  (3)  (2)  (1)  (1)

Customer-Related Expenses  Customer-related expenses of $34.5mm  ~87% of customer-related expenses are earnings credit rate (ECR) payments to customers to reimburse for cash expenses   ECR related expenses are indexed to the Fed Funds rate and expected to decline with rate cuts  > 90% of ECR expenses are related to our HOA clients  $3.8B or 14% of total deposits are HOA  $3.7B average HOA deposits have ECR  3Q24 Highlights  Customer-related expenses are primarily driven by ECR expenses  Noninterest Expense Detail ($mm)  $30.9  $20.5  $66.9  $92.2  1Q24  $32.4  $26.4  $71.5  $85.9  2Q24  $34.5  $12.7  $64.0  $85.6  3Q24  $210.5  $216.3  $196.7  Salary & employee benefits  Other operating expenses  Insurance and assessments  Customer-related expenses  FDIC Special Assessment:  1Q24: $4.8  Customer-Related Expenses ($mm)  $26.1  $4.9  1Q24  $27.7  $4.7  2Q24  $29.9  $4.6  3Q24  $30.9  $32.4  $34.5   Third Quarter 2024 Earnings | 16  ECR Expenses  Other

Building a Strong Commercial Deposit Franchise  Average NIB deposits increased to 27.7% of total average deposits, up slightly from 27.4% in 2Q  Spot NIB deposits increased 1.9% QoQ to 29.1% of total deposits  Civic loan sale proceeds were used to reduce high cost deposits reflected in the 51% QoQ reduction in brokered CDs  Average total cost of deposits declined 6 bps QoQ  3Q24 Highlights  Focus on relationship banking that generates low-cost commercial deposits   Management has a track record of successful deposit strategy execution  Average Fed Funds Rate  Average Total Cost of Deposits  4Q23  1Q24  2Q24  3Q24  CDs  Brokered CDs  Money Market & Savings  Interest-bearing Checking  Noninterest-bearing Checking   Third Quarter 2024 Earnings | 17

NIB Deposit Growth Remains a Key Priority  Enterprise-wide focus  Deposit incentive programs, including competitions and leaderboards  RM performance goals include specific NIB targets  Ensure existing and new relationships have appropriate deposit balances with the bank   Line of business-specific approach to NIB growth and new customer acquisition  3Q24 Highlights  Consistently generating new noninterest-bearing business deposits from new relationships since 4Q23 merger close  Deposit gathering engine designed to build low-cost deposit base $83.2  1Q24  2Q24  3Q24  $230.0  $342.4  1,124  Cumulative New NIB Business Deposits Accounts  Cumulative New NIB Business Deposits ($ millions)   Third Quarter 2024 Earnings | 18

Diversified Loan Portfolio  Core portfolio increased $366mm or 7% annualized due primarily to growth in warehouse and lender finance   Purchased $319mm of lender finance loans in 3Q24  Core portfolio comprises 96% of total loans   3Q24 loan originations including production, purchased loans and unfunded new commitments, totaled $1.6B  High-quality relationship-based core portfolio is well diversified with strong metrics  Existing portfolios have strong credit quality  Note: Wtd. Avg. Rate excludes loan fees and accretion.  3Q24 includes lender finance loan purchase. Lender finance includes the national lender portfolio, which has a balance of less than $25mm for 2Q24 and 3Q24, respectively.   Third Quarter 2024 Earnings | 19

California-Centric CRE Portfolio  72% of total CRE portfolio located in California  Total CRE has a low weighted average LTV of 61%  Other Property Types includes mobile homes, self storage, gas stations, special use, school, place of worship and restaurants  3Q24 Highlights  High quality CRE portfolio has low weighted-average LTV and high debt-service coverage ratio (DSCR)  Total CRE is well diversified across multiple industries  1.5%  Office  Industrial  Retail  Hotel  Health Facility  Mixed Use  Other  Represents most recent appraisal or weighted-average LTV at origination.  Total CRE DSCR excludes Real Estate Construction which is unavailable.   Note: CRE excludes government guaranteed CRE collateralized SBA loans.  Total CRE comprises 57% of total loans and Other CRE comprises 16.7% of total loans  84% of office collateral located in California, 6% in Colorado and 10% in other states  Multifamily has a low average LTV and a strong DSCR coverage ratio of 1.30x  NPLs are generally reserved based on individual evaluations   Other CRE as % of Total CRE   Third Quarter 2024 Earnings | 20

$1,280  $552  $873  $661  $1,076  $832  $659  $803  $1,832  $1,534  $1,908  $1,462  $389  $588  $698  $852  Loan

          Activity  Rate on new production of 8.29%  Loan production and line utilization of $1.8B outpaced payoffs and paydowns of $1.5B  Unfunded new commitments increased to $852mm   3Q24 loan originations including production, purchased loans and
          unfunded new commitments, totaled $1.6B compared to $1.1B in 2Q24  3Q24 Highlights  Net loan growth driven by strong production, net line utilization and acquisitions   Third Quarter 2024 Earnings |

          21  $212  $1,223  $142  $1,405  $382  $1,271  $700  $1,082  $1,436  $1,546  $1,654  $1,781  Loan Production  Line Utilization  Payoffs  Paydowns  4Q23  1Q24  2Q24  Rate on Production  Total Loan Yield  3Q24  Includes charge-offs and transfers
          to HFS.  Note: 3Q24 includes lender finance portfolio purchase.  \($ in millions\)  Unfunded New Commitments

Asset Quality Ratios and Trends  NPL inflows primarily driven by:   Two commercial loan exposures with isolated risk and one loan from the remaining Civic portfolio   NPL inflows also adversely impacted delinquencies and classified loans  Inflows to classified loans that remained on accrual status driven by:  Downgrades for groups of loans where performance deteriorated or increased borrower financial information was determined to be necessary  ACL coverage ratio of 1.20% remains at robust levels  CRE portfolio exposure proactively mitigated through additional qualitative reserves, combined with low LTVs and personal guarantors  Continuing conservative outlook and heightened monitoring given uncertain economic environment   Third Quarter 2024 Earnings |

          22  $13.3  $37.6  $23.4  4Q23  $53.9  $43.1  $48.8  1Q24  $46.1  $53.5  $17.5  2Q24  $55.8  $79.3  $33.3  3Q24  $74.3  $145.8  $117.1  $168.3  CRE Loans \(excluding MF and Construction\)  Other Core Loans  Discontinued Loans  Nonperforming
          Loans \(NPLs\) \($mm\)  NPLs to Loans/leases HFI  Delinquent Loans \($mm\)  Classified Loans
          \($mm\)  $61.6  $136.3  $30.5  4Q23  $161.9  $151.6  $53.2  1Q24  $172.1  $206.2  $37.2  2Q24  $233.9  $264.4  $35.4  3Q24  $228.4  $366.7  $415.5  $533.6  Classified Loans / Total Loans HFI  CRE Loans \(excluding MF and Construction\)  Other
          Core Loans  Discontinued Loans  $19.9  $44.8  $79.6  4Q23  $67.2  $62.4  $106.4  1Q24  $27.0  $37.8  $19.0  2Q24  $43.1  $48.5  $33.4  3Q24  $144.2  $236.0  $83.8  $125.0  CRE Loans \(excluding MF and Construction\)  Other Core
          Loans  Discontinued Loans  Delinquent Loans / Total Loans HFI  ACL / Total Loans \($mm\)  $311.3  1.22%  4Q23  $320.1  1.26%  1Q24  $275.3  1.19%  2Q24  $281.9  1.20%  3Q24  ACL  ACL / Total Loans HFI

ACL coverage ratio remains at robust levels  Allowance for Credit Losses Walk  ACL increased by $6.6mm due to $9mm provision  Provision was largely driven by higher qualitative reserves for office loans and other concentrations of credit   Specific reserves for NPL downgrades  NCO rate of 0.04% primarily due to discontinued student loan portfolio  In addition to ACL, we have additional loss coverage from the SFR credit-linked notes and purchase accounting marks  1.19%   1.20%   ($ in millions)  3Q24 net charge-offs detail    Third Quarter 2024 Earnings |

          23  3Q24 Highlights  ACL \(6/30/24\)   $\(2.4\)  Net Charge-offs   $9.0   Provision  ACL \(9/30/24\)  1.19%   1.20%

High-quality securities portfolio provides upside   Securities Portfolio Detail  Average securities yield increased 6 bps QoQ  AFS securities repositioning mostly reflected in September average yield of 3.25% or 27 bps higher than 3Q24  $60mm loss on repositioning of $742mm securities  Unrealized loss on AFS securities of $305mm down $217mm QoQ  AFS portfolio duration decreased ~1.0 years to ~4.8 years and total portfolio duration decreased ~0.5 years to ~5.9 years  Portfolio Profile  Composition   Credit Rating  Average Portfolio Balances & Yields  2%  0%  5%  1%  AAA  AA  A  BB  BBB  Not Rated  $6.0  2.72%  4Q23  $4.7  2.92%  1Q24  $4.7  2.92%  2Q24  $4.7  2.98%  3Q24  $4.7  3.25%  Sep-24  Average Balance ($ in billions)  Yield  3Q24 Highlights  Reflects fair value for AFS securities and amortized cost for HTM securities. Excludes $1.5 million loss reserve on HTM securities.    Third Quarter 2024 Earnings | 24  2%  Private Label RMBS  CLO  Corporates  Gov’t & AGC  Munis

High Level of Available Liquidity  Total primary liquidity of $4.5B, including unpledged AFS securities of $2.1B(2)  Total primary and secondary liquidity of $16.2B  Uninsured and uncollateralized deposits of $6.7B, which represents approximately 25.0% of total deposits  Total primary and secondary liquidity was 2.4x uninsured and uncollateralized deposits  3Q24 Highlights  Maintain high levels of primary and secondary liquidity as prudent risk management  (2)   Third Quarter 2024 Earnings | 25  (1)

Strong Capital Base  CET 1 ratio of 10.45% inclusive of:  Civic loan sale  Balance sheet repositioning  TCE ratio increased 1.4% to 7.98% since merger close  All regulatory capital ratios in excess of minimum “well-capitalized” levels  Focus on building capital levels for strength and flexibility  2Q24  3Q24  2Q24  3Q24  3Q24 Highlights  1. Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.   Third Quarter 2024 Earnings | 26  CET 1 Ratio  TCE Ratio

Appendix

Non-GAAP Financial Information  Tangible assets, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, adjusted net earnings (loss), return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision (“PTPP”) income, adjusted PTPP income, and adjusted noninterest expense, constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company’s performance. Tangible assets and tangible equity is calculated by subtracting goodwill and other intangible assets from total assets. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution.   Adjusted net earnings (loss) is calculated by adjusting net earnings (loss) by unusual, one-time items. ROAA is calculated by dividing annualized net earnings (loss) by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings (loss) by average assets.  PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense.  Adjusted noninterest expense is calculated by taking noninterest expense and subtracting customer related expense and adjusting for acquisition, integration, and reorganization costs.  Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.   The following tables on pages 29-33 provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.   Third Quarter 2024 Earnings | 28

Non-GAAP Reconciliation  Total common equity divided by common shares outstanding.  Tangible common equity divided by common shares outstanding.  Common shares outstanding include non-voting common equivalents that are participating securities.   Third Quarter 2024 Earnings | 29

Non-GAAP Reconciliation  Note: No adjusted earnings were reported in 2Q24.  Effective tax rates of 27.61%, 28.62%, 26.40%, and 14.12% used for the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.  Annualized net earnings (loss) divided by average stockholders’ equity.  Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.  Annualized adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.   Third Quarter 2024 Earnings | 30

Non-GAAP Reconciliation   Third Quarter 2024 Earnings | 31  Note: No adjusted earnings were reported in 2Q24.  Effective tax rates of 27.61%, 28.62%, 26.40%, and 14.12% used for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively   Adjusted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding.  Annualized net earnings (loss) divided by average assets.  Annualized adjusted net earnings (loss) divided by average assets.

Non-GAAP Reconciliation   Third Quarter 2024 Earnings | 32  Note: No adjusted PTPP income was reported in 2Q24.  Annualized PTPP income divided by average assets.  Annualized adjusted PTPP income divided by average assets.

Non-GAAP Reconciliation   Third Quarter 2024 Earnings | 33

Execution on incremental facilities    consolidation  Realize incremental operational   expense savings  Continued reduction of interest expense   and mix shift towards lower cost core    deposits  Integration roadmap update  Remaining items to be completed  Closed merger with PacWest   Closed on $400mm common equity with merger  Retained key employees and clients  Sold $6B assets (3.6% yield)  Paid down $10B wholesale funding (~5% cost)  Core systems conversions (weekend of July 20, 2024)  Sold $1.95B of Civic loans   Repositioned $0.7B of the securities portfolio  Further optimized funding mix  Achieved normalized quarterly FDIC expense run-rate  Majority of cost savings realized ahead of schedule              4Q    4Q    4Q+     Target  Strong execution and swift delivery of merger integration milestones    Accomplished since announcement of deal      Third Quarter 2024 Earnings | 34      

Jared Wolff  President and Chief Executive Officer  30+ years of banking and law. Previously held senior executive positions with City National Bank (RBC) and PacWest Bancorp  Third Quarter 2024 Earnings | 35  Joe Kauder   Chief Financial Officer  30+ years banking experience, previously served as EVP, CFO Wells Fargo Wholesale Banking  Experienced management team with track record of success at leading institutions  Alex Kweskin  Chief Human Resources Officer  25+ years of Human Resources experience, previously held HR leadership roles at MUFG Union Bank and Wells Fargo  Chris Blake  Vice Chairman of the Bank  40+ years of banking experience, previously served as President & CEO, Community Bank Division, for PacWest Bancorp.  Scott Ladd  Chief Credit Officer for Specialty Banking and Credit Operations  25+ years banking and consulting experience, previously served as EVP, Group Head, Portfolio Management at PacWest Bancorp  Hamid Hussain  President of the Bank  25+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo  Bryan Corsini  Chief Credit Officer  35+ years banking experience, previously served as CCO of PacWest Bancorp and Director of Pacific Western Bank  Debbie Dahl-Amundson  Chief Internal Audit Officer  Leads the internal audit group and SOX Compliance, previously served as Assistant General Auditor for PNC  Ido Dotan  General Counsel and Chief Administrative Officer  Experienced in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings  Olivia Lindsay  Chief Risk Officer  20+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank  Raymond Rindone  Deputy Chief Financial Officer and Head of Corporate Finance  30+ years finance & public accounting experience, previously served as Deputy CFO of City National Bank (RBC)  Steve Schwimmer  Chief Information Officer  25+ years of experience in banking technology, previously served as the EVP, Chief Innovation Officer at PacWest Bancorp  Stan Ivie  Head of Government and Regulatory Affairs  Previously served as the Chief Risk Officer of PacWest Bancorp & the regional director for the FDIC’s San Francisco and Dallas Regions  Michael Pierron  Head of Payments  25+ years of technology, product and operations, previously served as Head of Operations at Flagstar Bank

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