banc-20220721

Banc of California Reports Strong Profitability, $1.2 Billion in Loan Fundings, and Net Interest Margin Expansion for Second Quarter 2022

SANTA ANA, Calif., (July 21, 2022) — Banc of California, Inc. (NYSE: BANC) today reported net income and net income available to common stockholders of $26.7 million, or $0.43 per diluted common share, for the second quarter of 2022. This compares to net income of $48.5 million and net income available to common stockholders of $43.3 million, or $0.69 per diluted common share, for the first quarter of 2022. The first quarter of 2022 net income available to common stockholders included a $31.3 million pre-tax recovery from the settlement of a previously charged-off loan and a $3.7 million after-tax charge related to the redemption of Series E Preferred Stock.

Second quarter highlights:

•Adjusted EPS of $0.45

•Pre-tax pre-provision return on average assets of 1.58%, up from 1.54% in the prior quarter

•Net interest margin of 3.58%, an increase of 7 basis points from the prior quarter

•Average noninterest-bearing deposits of 38%, flat with the prior quarter

•Tangible book value per share of $14.05, flat with the prior quarter

•Average cost of total deposits of 0.17%, an increase of 9 basis points from the prior quarter

•Allowance for credit losses at 1.34% of total loans and 224% of non-performing loans, up from 1.32% and 181% in the prior quarter

•Repurchased $38.9 million of common stock during the quarter and $51.9 million cumulatively through July 20

Jared Wolff, President & CEO of Banc of California, commented, “We delivered another quarter of solid operating performance which is a good representation of our strong commercial banking franchise: well diversified, robust loan production funded with a low-cost deposit base; disciplined expense control; and solid asset quality in our conservatively underwritten, well secured loan portfolio. We capitalized on the resilient economic conditions and loan demand we are experiencing in California to generate $1.2 billion in loan fundings during the second quarter, which was the highest level of fundings in over 3 years.

Mr. Wolff continued, “Although interest rates have increased, our loan pipeline remains strong, which should result in continued loan growth in the second half of the year, as well as further expansion of our operating leverage. We believe that our asset sensitive balance sheet will benefit from the rising rate environment and position us to continue delivering strong financial results for the benefit of shareholders.”

Lynn Hopkins, Chief Financial Officer of Banc of California, said, “During the second quarter, our net interest margin increased seven basis points. We believe our current loan pipeline reflects the higher interest rate environment, which should lead to additional expansion in our net interest margin going forward, providing us with another catalyst for driving further increases in earnings per share and our level of returns.”

Income Statement Highlights


	Three Months Ended										Six Months Ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021
	($ in thousands)
Total interest and dividend income	$	88,418	$	84,269	$	81,573	$	71,791	$	69,677	$	172,687	$	138,295
Total interest expense	10,119		7,828		8,534		8,815		9,830		17,947		20,532
Net interest income	78,299		76,441		73,039		62,976		59,847		154,740		117,763
Total noninterest income	7,186		5,910		5,605		5,519		3,443		13,096		8,252
Total revenue	85,485		82,351		78,644		68,495		63,290		167,836		126,015
Total noninterest expense	48,612		46,596		58,872		37,811		39,832		95,208		86,995
Pre-tax / pre-provision income(1)	36,873		35,755		19,772		30,684		23,458		72,628		39,020
Provision for (reversal of) credit losses	—		(31,542)		11,262		(1,147)		(2,154)		(31,542)		(3,261)

Income tax expense	10,161		18,785		2,759		8,661		6,562		28,946		8,856


Net income	$	26,712	$	48,512	$	5,751	$	23,170	$	19,050	$	75,224	$	33,425

Net income available to common stockholders(2)	$	26,712	$	43,345	$	4,024	$	21,443	$	17,323	$	70,057	$	25,088

(1)Non-GAAP Measure

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

Net interest income

Q2-2022 vs Q1-2022

Net interest income increased $1.9 million to $78.3 million for the second quarter due to higher yield on interest-earning assets, offset by lower average interest-earning assets and higher average interest-bearing liabilities balances and costs.

The net interest margin increased 7 basis points to 3.58% for the second quarter as the average interest-earning assets yield increased 17 basis points and the cost of average total funding increased 10 basis points. The yield on average interest-earning assets increased to 4.04% for the second quarter from 3.87% for the first quarter due to the mix of interest-earning assets and higher yields on loan and securities. The average yield on loans increased 9 basis points to 4.35% during the second quarter as a result of the portfolio mix and the impact of higher market interest rates. The loan yield includes the impact of prepayment penalty fees, the net reversal or recapture of nonaccrual loan interest, accelerated discount accretion on the early payoff of purchased loans, and accelerated fees from PPP loan forgiveness; these items increased the loan yield by 10 basis points in both the second quarter and prior quarter.

The average cost of funds increased 10 basis points to 0.49% for the second quarter from 0.39% for the first quarter. This increase was driven by the higher average cost of interest-bearing deposits. Average noninterest-bearing deposits represented 38% of total average deposits for both the second quarter and the first quarter. Average noninterest-bearing deposits were $9.2 million higher in the second quarter compared to the first quarter while average deposits were $11.8 million higher for the linked quarters. Average Federal Home Loan Bank (FHLB) advances and other borrowings increased $27.1 million. The average cost of interest-bearing liabilities increased 16 basis points to 0.74% for the second quarter from 0.58% for the first quarter due to higher cost of interest-bearing deposits. The average cost of interest-bearing deposits increased 16 basis points to 0.28% for the second quarter from 0.12% for the first quarter. The average cost of total deposits increased 9 basis points to 0.17% for the second quarter due mostly to higher market interest rates. The spot rate of total deposits was 0.21% at the end of the second quarter.

YTD 2022 vs YTD 2021

Net interest income increased $37.0 million to $154.7 million for the six months ended June 30, 2022 due to higher average balances and yield on interest-earning assets, higher average balances and lower costs of interest-bearing liabilities.

The net interest margin increased 32 basis points to 3.55% as the average earning-assets yield increased 16 basis points and the average cost of total funding decreased 16 basis points. The yield on average interest-earning assets increased to 3.96% for the six months ended June 30, 2022, from 3.80% for 2021 due mostly to the mix of interest-earning assets and higher market interest rates. Average loans represented 82.6% of average earnings assets in 2022 compared to 78.6% for the same period in 2021 Average loans increased by $1.49 billion from ongoing loan growth, including the acquisition of Pacific Mercantile Bancorp (PMB) in the fourth quarter of 2021. The yield on average loans for the six months ended June 30, 2022 was 4.31% compared to 4.30% for the same period in 2021. The yield on average investment securities and other interest-earning assets.increased 34 basis points and 47 basis points, respectively, for the six months ended June 30, 2022, compared to the same period in 2021.

The average cost of funds decreased 16 basis points to 0.44% for the six months ended June 30, 2022 from 0.60% for 2021. This decrease was driven by the lower average cost of interest-bearing liabilities and the overall improved funding mix, including higher average noninterest-bearing deposits as a result of growth from business development efforts and the acquisition of PMB. Average noninterest-bearing deposits represented 38% of total average deposits for the six months ended June 30, 2022 compared to 28% for the same period in 2021. Average noninterest-bearing deposits were $1.09 billion higher during the six months ended June 30, 2022 compared to the same period in 2021 while average total deposits were $1.20 billion higher. Average FHLB advances and other borrowings increased $146.5 million due mostly to higher overnight borrowings offset by lower term advances. The average cost of interest-bearing liabilities decreased 14 basis points to 0.66% for the six months ended June 30, 2022 compared to the same period in 2021. This included a 15 basis points decline in the average cost of interest-bearing deposits to 0.20% for the six months ended June 30, 2022 compared to 0.35% for the same period in 2021. The average cost of total deposits decreased 13 basis points to 0.12% for the six months ended June 30, 2022.

Provision for credit losses

Q2-2022 vs Q1-2022

There was no provision for credit losses for the second quarter, compared to a reversal of $31.5 million for the first quarter. The first quarter reversal of credit losses included $31.3 million related to a recovery from the settlement of a loan previously charged-off in 2019.

YTD 2022 vs YTD 2021

During the six months ended June 30, 2022, the provision for credit losses was a reversal of $31.5 million, compared to a reversal of $3.3 million during 2021. The higher reversal of credit losses for the six months ended June 30, 2022 was due to recovery from the settlement of a loan previously charged-off in 2019.

Noninterest income

Q2-2022 vs Q1-2022

Noninterest income increased $1.3 million to $7.2 million for the second quarter compared to the prior quarter due mostly to higher other income. All other income increased $1.2 million due to higher income from equity investments of $2.1 million, partially offset by a fair value write-down of $455 thousand recorded on loans held for sale and the first quarter including a $771 thousand gain related to a sale-leaseback transaction; there were no sale-leaseback transactions in the second quarter. Gains or losses from equity investments are recorded based on the most recent information available from the investee and fluctuates based on their underlying performance.

YTD 2022 vs YTD 2021

Noninterest income for the six months ended June 30, 2022 increased $4.8 million to $13.1 million compared to 2021. The increase in noninterest income reflected a full six months of activity from the acquisition of PMB and was mainly due to higher customer service fees, income from bank-owned life insurance, and all other income. Customer services fees increased $1.3 million due mostly to higher deposit activity fees of $1.8 million attributed to higher average deposit balances, offset by lower loan fees of $594 thousand. Income from bank-owned life insurance increased $244 thousand due to higher average balances. The $3.3 million increase in all other income is due mostly to higher income from equity investments of $2.4 million and a $771 thousand gain related to a sale-leaseback transaction during the first quarter of 2022.

Noninterest expense

Q2-2022 vs Q1-2022

Noninterest expense increased $2.0 million to $48.6 million for the second quarter compared to the first quarter. The increase was due mostly to (i) higher professional fees of $1.2 million, due mostly to higher legal fees and (ii) higher net loss in alternative energy partnership investments of $885 thousand, offset by a decrease in salaries and employee benefits of $723 thousand attributed to higher payroll-related items typical of the first quarter. Professional fees included net indemnified legal expenses of $455 thousand in the second quarter compared to net recoveries of $106 thousand during the first quarter.

Total operating costs, defined as noninterest expense adjusted for certain expense items (refer to section Non-GAAP Measures), increased $570 thousand to $47.1 million for the second quarter compared to $46.5 million for the prior quarter. This increase is due mostly to higher professional fees of $639 thousand and all other expenses of $580 thousand due mostly to loan-related expenses, offset by lower salaries and benefits of $723 thousand as the higher payroll-related items typical of the first quarter were lower in the second quarter.

YTD 2022 vs YTD 2021

Noninterest expense for the six months ended June 30, 2022 increased $8.2 million to $95.2 million compared to the prior year. The increase was primarily due to: (i) higher salaries and employee benefits of $6.5 million and occupancy and equipment of $1.3 million due to the increases in personnel and facilities from the acquisition of PMB, (ii) higher professional fees of $1.2 million, due mostly to a $1.9 million increase in legal fees, net of insurance recoveries, offset by a $619 thousand decrease in other professional fees and (iii) higher all other expenses of $2.2 million due to including the operations of PMB. These increases were partially offset by: (i) higher reversal of loan repurchase reserves of $730 thousand, (ii) lower merger-related costs of $1.4 million and (iii) lower loss in alternative energy partnership investments of $1.6 million.

Income taxes

Q2-2022 vs Q1-2022

Income tax expense totaled $10.2 million for the second quarter resulting in an effective tax rate of 27.6% compared to $18.8 million for the first quarter and an effective tax rate of 27.9%. The effective tax rate for 2022 is expected to be similar to the effective income tax rate for the second quarter.

YTD 2022 vs YTD 2021

Income tax expense totaled $28.9 million for the six months ended June 30, 2022, representing an effective tax rate of 27.8%, compared to $8.9 million and an effective tax rate of 20.9% for 2021. The effective tax rate for the six months ended June 30, 2022 was higher than the comparable 2021 period due mostly to the first quarter of 2021 including a net tax benefit of $2.1 million resulting from the exercise of all previously issued outstanding stock appreciation rights.

Balance Sheet

At June 30, 2022, total assets were $9.50 billion, which represented a linked-quarter decrease of $81.4 million. The following table shows selected balance sheet line items as of the dates indicated:


											Amount Change
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		Q2-22 vs. Q1-22		Q2-22 vs. Q2-21

	($ in thousands)
Securities held-to-maturity	$	329,272	$	329,381	$	—	$	—	$	—	$	(109)	$	329,272
Securities available-for-sale	$	865,435	$	898,775	$	1,315,703	$	1,303,368	$	1,353,154	$	(33,340)	$	(487,719)
Loans held-for-investment	$	7,451,264	$	7,451,573	$	7,251,480	$	6,228,575	$	5,985,477	$	(309)	$	1,465,787

Total assets	$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741	$	8,027,413	$	(81,427)	$	1,474,700




Noninterest-bearing deposits	$	2,826,599	$	2,958,632	$	2,788,196	$	2,107,709	$	1,808,918	$	(132,033)	$	1,017,681
Total deposits	$	7,558,683	$	7,479,701	$	7,439,435	$	6,543,225	$	6,206,544	$	78,982	$	1,352,139




Borrowings (1)	$	884,282	$	1,020,842	$	775,445	$	762,444	$	871,973	$	(136,560)	$	12,309
Total liabilities	$	8,552,983	$	8,604,531	$	8,328,453	$	7,433,938	$	7,198,051	$	(51,548)	$	1,354,932
Total equity	$	949,130	$	979,009	$	1,065,290	$	844,803	$	829,362	$	(29,879)	$	119,768

(1)Represents Advances from Federal Home Loan Bank, Other Borrowings and Long Term Debt, net.

Investments

Securities held-to-maturity totaled $329.3 million at June 30, 2022 and included $215.1 million in agency securities and $114.2 million in municipal securities.

Securities available-for-sale decreased $33.3 million during the second quarter to $865.4 million at June 30, 2022, including principal payments of $12.2 million and higher unrealized net losses of $21.0 million. The higher net unrealized losses were due mostly to the impact of increases in longer-term market interest rates on the value of each class of securities. As of June 30, 2022, the securities available-for-sale portfolio included $478.2 million of CLOs, $165.4 million of agency securities, $163.3 million of corporate debt securities, $45.5 million of residential collateralized mortgage obligations, and $13.1 million of SBA securities. The CLO portfolio, which is comprised only of AA and AAA rated securities, represented 40% of the total securities portfolio and the carrying value included an unrealized net loss of $14.6 million at June 30, 2022, compared to 40% of the total securities portfolio and an unrealized net loss of $4.8 million at March 31, 2022.

Loans

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


	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	($ in thousands)
Composition of loans
Commercial real estate	$	1,204,414		$	1,163,381		$	1,311,105		$	907,224		$	871,790
Multifamily	1,572,308			1,397,761			1,361,054			1,295,613			1,325,770
Construction	228,341			225,153			181,841			130,536			150,557
Commercial and industrial	1,273,307			1,224,908			1,066,497			773,681			725,596
Commercial and industrial - warehouse lending	1,160,157			1,574,549			1,602,487			1,522,945			1,345,314
SBA	92,235			133,116			205,548			181,582			253,924

Total commercial loans	5,530,762			5,718,868			5,728,532			4,811,581			4,672,951
Single-family residential mortgage	1,832,279			1,637,307			1,420,023			1,393,696			1,288,176
Other consumer	88,223			95,398			102,925			23,298			24,350
Total consumer loans	1,920,502			1,732,705			1,522,948			1,416,994			1,312,526
Total gross loans	$	7,451,264		$	7,451,573		$	7,251,480		$	6,228,575		$	5,985,477
Composition percentage of loans
Commercial real estate	16.2		%	15.6		%	18.1		%	14.6		%	14.6		%
Multifamily	21.1		%	18.8		%	18.8		%	20.7		%	22.2		%
Construction	3.1		%	3.0		%	2.5		%	2.1		%	2.5		%
Commercial and industrial	17.1		%	16.4		%	14.7		%	12.4		%	12.1		%
Commercial and industrial - warehouse lending	15.5		%	21.1		%	22.1		%	24.5		%	22.5		%
SBA	1.2		%	1.8		%	2.8		%	2.9		%	4.2		%

Total commercial loans	74.2		%	76.7		%	79.0		%	77.2		%	78.1		%
Single-family residential mortgage	24.6		%	22.0		%	19.6		%	22.4		%	21.5		%
Other consumer	1.2		%	1.3		%	1.4		%	0.4		%	0.4		%
Total consumer loans	25.8		%	23.3		%	21.0		%	22.8		%	21.9		%
Total gross loans	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Total loans ended the second quarter of 2022 at $7.45 billion, relatively unchanged from March 31, 2022, due to growth in commercial real estate, multifamily, commercial and industrial and single-family residential mortgage, which was offset by a decrease in commercial and industrial - warehouse lending and SBA. Loan fundings of $1.21 billion in the second quarter included single-family residential purchases of $277.2 million and were offset by paydowns and payoffs of $793.5 million and net warehouse paydowns of $414.4 million. At June 30, 2022, SBA loans included $28.4 million of PPP loans, compared to $58.3 million at March 31, 2022. Total commercial loans, excluding PPP loans and warehouse lending, increased $256.2 million, or 25.1% on an annualized basis during the second quarter.

Deposits

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


	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	($ in thousands)
Composition of deposits
Noninterest-bearing checking	$	2,826,599		$	2,958,632		$	2,788,196		$	2,107,709		$	1,808,918
Interest-bearing checking	2,359,857			2,395,329			2,393,386			2,214,678			2,217,306


Savings and money market	1,622,922			1,605,088			1,751,135			1,661,013			1,593,724
Non-brokered certificates of deposit	615,719			520,652			506,718			559,825			586,596
Brokered certificates of deposit	133,586			—			—			—			—
Total deposits	$	7,558,683		$	7,479,701		$	7,439,435		$	6,543,225		$	6,206,544
Composition percentage of deposits
Noninterest-bearing checking	37.4		%	39.6		%	37.5		%	32.2		%	29.1		%
Interest-bearing checking	31.2		%	32.0		%	32.2		%	33.8		%	35.7		%


Savings and money market	21.5		%	21.4		%	23.5		%	25.4		%	25.7		%
Non-brokered certificates of deposit	8.1		%	7.0		%	6.8		%	8.6		%	9.5		%

Brokered certificates of deposit	1.8		%	—		%	—		%	—		%	—		%
Total deposits	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%

Total deposits increased $79.0 million during the second quarter of 2022 to $7.56 billion at June 30, 2022, due mostly to higher certificate of deposit balances of $228.7 million and savings and money market balances of $17.8 million, offset by lower noninterest-bearing checking balances of $132.0 million and lower interest-bearing checking balances of $35.5 million. Noninterest-bearing deposits totaled $2.83 billion and represented 37.4% of total deposits at June 30, 2022, compared to $2.96 billion, or 39.6% of total deposits, at March 31, 2022.

Debt

Advances from the FHLB decreased $44.7 million during the second quarter to $511.7 million at June 30, 2022, due to lower overnight advances. At June 30, 2022, FHLB advances included $105.0 million of overnight borrowings and $411.0 million in term advances with a weighted average life of 3.5 years and weighted average interest rate of 2.53%. Other borrowings totaled $98.0 million at June 30, 2022, down from $190.0 million at March 31, 2022, and related mostly to unsecured overnight borrowings from various financial institutions through the American Financial Exchange platform.

Equity

During the second quarter total stockholders’ equity decreased by $29.9 million to $949.1 million and tangible common equity decreased by $29.6 million to $849.3 million at June 30, 2022. The decrease in total common stockholders’ equity for the second quarter included the repurchase of common stock of $38.9 million, accumulated other comprehensive net loss of $14.9 million, and dividends to common stockholders of $3.7 million, partially offset by net income of $26.7 million and share-based award compensation of $1.5 million. Book value per common share increased to $15.70 as of June 30, 2022, from $15.65 at March 31, 2022. Tangible book value per common share (refer to section Non-GAAP Measures) remained unchanged at $14.05 as of June 30, 2022 compared to March 31, 2022.

During the second quarter of 2022, common stock repurchased under the program authorized during the first quarter of 2022 totaled 2,113,176 shares at a weighted average price of $18.38. As of June 30, 2022, the Company had $31.9 million remaining under the current stock repurchase authorization. Through July 20, 2022, repurchases of Company common stock total 2,813,978 shares at a weighted average price of $18.45 per share, or $51.9 million under the stock repurchase plan. The repurchased shares represent approximately 4% of the shares outstanding at the time this $75 million program was authorized.

Capital ratios remain strong with total risk-based capital at 13.68% and a tier 1 leverage ratio of 9.59% at June 30, 2022. The interim capital relief related to the adoption of the current expected credit losses (CECL) accounting standard increased the

Bank's leverage ratio by approximately 9 basis points at June 30, 2022. The following table sets forth our regulatory capital ratios as of the dates indicated:


	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio	13.68	%	13.79	%	14.98	%	14.73	%	15.33	%
Tier 1 risk-based capital ratio	11.28	%	11.40	%	12.55	%	12.35	%	12.71	%
Common equity tier 1 capital ratio	11.28	%	11.40	%	11.31	%	10.86	%	11.14	%
Tier 1 leverage ratio	9.59	%	9.72	%	10.37	%	9.80	%	9.89	%
Banc of California, NA
Total risk-based capital ratio	15.54	%	15.66	%	15.71	%	16.31	%	17.25	%
Tier 1 risk-based capital ratio	14.41	%	14.54	%	14.60	%	15.22	%	16.09	%
Common equity tier 1 capital ratio	14.41	%	14.54	%	14.60	%	15.22	%	16.09	%
Tier 1 leverage ratio	12.27	%	12.38	%	12.06	%	12.08	%	12.52	%

(1)June 30, 2022 capital ratios are preliminary.

Credit Quality


	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
Asset quality information and ratios	($ in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent	$	38,285		$	27,067		$	40,142		$	23,144		$	16,983
90+ days delinquent	23,905			33,930			32,609			21,979			17,998
Total delinquent loans	$	62,190		$	60,997		$	72,751		$	45,123		$	34,981
Total delinquent loans to total loans	0.83		%	0.82		%	1.00		%	0.72		%	0.58		%
Non-performing assets, excluding loans held-for-sale
Non-accrual loans	$	44,443		$	54,529		$	52,558		$	45,621		$	51,299
90+ days delinquent and still accruing loans	—			—			—			—			—
Non-performing loans	44,443			54,529			52,558			45,621			51,299
Other real estate owned	—			—			—			—			3,253
Non-performing assets	$	44,443		$	54,529		$	52,558		$	45,621		$	54,552
ALL to non-performing loans	211.04		%	170.97		%	176.16		%	161.16		%	147.93		%
Non-performing loans to total loans held-for-investment	0.60		%	0.73		%	0.72		%	0.73		%	0.86		%
Non-performing assets to total assets	0.47		%	0.57		%	0.56		%	0.55		%	0.68		%
Troubled debt restructurings (TDRs)
Performing TDRs	$	10,946		$	14,850		$	12,538		$	5,835		$	6,029
Non-performing TDRs	14,989			15,059			4,146			2,366			3,120
Total TDRs	$	25,935		$	29,909		$	16,684		$	8,201		$	9,149

Total delinquent loans increased $1.2 million in the second quarter to $62.2 million at June 30, 2022, due mostly to additions of $29.2 million, offset by $21.7 million returning to current status and $6.3 million in other reductions including paydowns. The additions included (i) $18.1 million in single-family residential mortgage loans, (ii) $6.0 million in commercial and industrial loans and (iii) $4.6 million in SBA loans. At June 30, 2022, delinquent loans included (i) SFR loans of $32.5 million, (ii) SBA loans of $15.0 million, of which $12.6 million are guaranteed, and (iii) other loans of $14.7 million.

Non-performing loans decreased $10.1 million to $44.4 million as of June 30, 2022, of which $18.4 million, or 41%, relates to loans in a current payment status. The second quarter decrease was due mostly to $5.7 million in loans returning to accrual status and $4.7 million in payoffs, paydowns, and charge-offs, offset by additions of $259 thousand. At June 30, 2022, non-performing loans included (i) a $12.4 million commercial and industrial loan acquired in the PMB acquisition, (ii) SBA loans

totaling $10.5 million, of which $8.6 million is guaranteed, (iii) SFR loans totaling $7.3 million, and (iv) other commercial loans of $13.9 million.

Allowance for Credit Losses


	Three Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	($ in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period	$	93,226		$	92,584		$	73,524		$	75,885		$	79,353

Initial reserve for purchased credit-deteriorated loans(1)	—			—			13,650			—			—
Loans charged off	(494)			(231)			(8,108)			(327)			(886)
Recoveries	1,561			32,215			2,628			532			26
Net recoveries (charge-offs)	1,067			31,984			(5,480)			205			(860)
(Reversal of) provision for loan losses	(500)			(31,342)			10,890			(2,566)			(2,608)
Balance at end of period	$	93,793		$	93,226		$	92,584		$	73,524		$	75,885
Reserve for unfunded loan commitments
Balance at beginning of period	$	5,405		$	5,605		$	5,233		$	3,814		$	3,360

(Reversal of) provision for credit losses	500			(200)			372			1,419			454
Balance at end of period	5,905			5,405			5,605			5,233			3,814
Allowance for credit losses (ACL)	$	99,698		$	98,631		$	98,189		$	78,757		$	79,699

ALL to total loans	1.26		%	1.25		%	1.28		%	1.18		%	1.27		%
ACL to total loans	1.34		%	1.32		%	1.35		%	1.26		%	1.33		%
ACL to total loans, excluding PPP loans	1.34		%	1.33		%	1.38		%	1.29		%	1.38		%
ACL to NPLs	224.33		%	180.88		%	186.82		%	172.63		%	155.36		%
Annualized net loan charge-offs (recoveries) to average total loans held-for-investment	(0.06)		%	(1.79)		%	0.32		%	(0.01)		%	0.06		%

Reserve for loss on repurchased loans
Balance at beginning of period	$	3,877		$	4,348		$	5,023		$	5,095		$	5,383

(Reversal of) provision for loan repurchases	(490)			(471)			(675)			(42)			(99)
Utilization of reserve for loan repurchases	(165)			—			—			(30)			(189)
Balance at end of period	$	3,222		$	3,877		$	4,348		$	5,023		$	5,095

(1)Represents the amounts, at acquisition date, of expected credit losses on PCD loans and expected recoveries of PCD loans charged-off prior to acquisition date that we have a contractual right to receive.

The allowance for expected credit losses (ACL), which includes the reserve for unfunded loan commitments, totaled $99.7 million, or 1.34% of total loans, at June 30, 2022, compared to $98.6 million, or 1.32% of total loans, at March 31, 2022. The $1.1 million increase in the ACL was due primarily to: (i) net recoveries of $1.1 million, (ii) higher specific reserves of $484 thousand, and (iii) higher reserve for unfunded commitments of $500 thousand, offset by lower general loan reserves of $1.0 million. The ACL coverage of non-performing loans was 224% at June 30, 2022 compared to 181% at March 31, 2022.

The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables released by the model provider during June 2022. The published forecasts consider rising inflation, higher oil prices, ongoing supply chain issues and the military conflict between Russia and Ukraine, among other factors.

Conference Call

The Company will host a conference call to discuss its second quarter 2022 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, July 21, 2022. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 1795053. 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 8741948.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with $9.5 billion in assets at June 30, 2022 and one wholly-owned banking subsidiary, Banc of California, N.A. (the Bank). The Bank has 36 offices including 31 full-service branches located throughout Southern California. Through our dedicated professionals, we provide customized and innovative banking and lending solutions to businesses, entrepreneurs and individuals throughout California. We help to improve the communities where we live and work, by supporting organizations that provide financial literacy and job training, small business support and affordable housing. With a commitment to service and to building enduring relationships, we provide a higher standard of banking. We look forward to helping you achieve your goals. For more information, please visit us at www.bancofcal.com.

Forward-Looking Statements

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


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

Banc of California, Inc.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)


	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021
ASSETS
Cash and cash equivalents	$	243,064	$	254,241	$	228,123	$	185,840	$	163,332

Securities held-to-maturity	329,272		329,381		—		—		—
Securities available-for-sale	865,435		898,775		1,315,703		1,303,368		1,353,154

Loans	7,451,264		7,451,573		7,251,480		6,228,575		5,985,477
Allowance for loan losses	(93,793)		(93,226)		(92,584)		(73,524)		(75,885)
Federal Home Loan Bank and other bank stock	51,489		51,456		44,632		44,604		44,569
Servicing rights, net	24,043		1,295		1,309		1,022		1,162
Other real estate owned, net	—		—		—		—		3,253
Premises and equipment, net	108,523		109,593		112,868		114,011		118,649
Alternative energy partnership investments, net	23,531		25,156		25,888		25,196		24,068
Goodwill	95,127		95,127		94,301		37,144		37,144
Other intangible assets, net	4,677		4,990		6,411		1,787		2,069
Deferred income tax, net	54,455		51,516		50,774		40,659		41,628
Income tax receivable	4,563		1,045		7,952		2,107		4,084
Bank owned life insurance investment	125,326		124,516		123,720		113,884		113,168
Operating lease right of use assets	32,632		34,189		35,442		29,054		20,364

Other assets	182,505		243,913		187,724		225,014		191,177

Total assets	$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741	$	8,027,413

LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	2,826,599	$	2,958,632	$	2,788,196	$	2,107,709	$	1,808,918
Interest-bearing deposits	4,732,084		4,521,069		4,651,239		4,435,516		4,397,626
Total deposits	7,558,683		7,479,701		7,439,435		6,543,225		6,206,544
Advances from Federal Home Loan Bank	511,695		556,374		476,059		405,738		490,419
Other borrowings	98,000		190,000		25,000		100,000		125,000
Long-term debt, net	274,587		274,468		274,386		256,706		256,554
Reserve for loss on repurchased loans	3,222		3,877		4,348		5,023		5,095
Operating lease liabilities	37,500		39,259		40,675		30,390		21,588

Accrued expenses and other liabilities	69,296		60,852		68,550		92,856		92,851

Total liabilities	8,552,983		8,604,531		8,328,453		7,433,938		7,198,051
Commitments and contingent liabilities
Preferred stock	—		—		94,956		94,956		94,956
Common stock	647		646		646		527		527
Common stock, class B non-voting non-convertible	5		5		5		5		5
Additional paid-in capital	856,079		855,198		854,873		631,512		630,654
Retained earnings	210,471		187,457		147,894		147,682		129,307
Treasury stock	(84,013)		(45,125)		(40,827)		(40,827)		(40,827)
Accumulated other comprehensive (loss) income, net	(34,059)		(19,172)		7,743		10,948		14,740
Total stockholders’ equity	949,130		979,009		1,065,290		844,803		829,362
Total liabilities and stockholders’ equity	$	9,502,113	$	9,583,540	$	9,393,743	$	8,278,741	$	8,027,413

Banc of California, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)


	Three Months Ended										Six Months Ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021
Interest and dividend income
Loans, including fees	$	78,895	$	76,234	$	73,605	$	63,837	$	61,900	$	155,129	$	123,245
Securities	8,124		7,309		6,934		7,167		6,986		15,433		13,487
Other interest-earning assets	1,399		726		1,034		787		791		2,125		1,563
Total interest and dividend income	88,418		84,269		81,573		71,791		69,677		172,687		138,295
Interest expense
Deposits	3,180		1,388		2,072		2,412		3,543		4,568		7,829
Federal Home Loan Bank advances	3,114		2,953		2,977		2,990		2,944		6,067		6,056


Other interest-bearing liabilities	3,825		3,487		3,485		3,413		3,343		7,312		6,647
Total interest expense	10,119		7,828		8,534		8,815		9,830		17,947		20,532
Net interest income	78,299		76,441		73,039		62,976		59,847		154,740		117,763
Provision for (reversal of) credit losses	—		(31,542)		11,262		(1,147)		(2,154)		(31,542)		(3,261)
Net interest income after provision for (reversal of) credit losses	78,299		107,983		61,777		64,123		62,001		186,282		121,024
Noninterest income
Customer service fees	2,578		2,434		2,037		1,900		1,990		5,012		3,748
Loan servicing income	109		212		119		170		38		321		306
Income from bank owned life insurance	810		796		794		715		690		1,606		1,362

Net gain on sale of securities available for sale	—		16		—		—		—		16		—

Net gain on sale of loans	—		—		275		—		—		—		—
All other income	3,689		2,452		2,380		2,734		725		6,141		2,836
Total noninterest income	7,186		5,910		5,605		5,519		3,443		13,096		8,252
Noninterest expense
Salaries and employee benefits	28,264		28,987		27,811		24,786		25,042		57,251		50,761

Occupancy and equipment	7,876		7,855		7,855		7,124		7,277		15,731		14,473
Professional fees	4,107		2,907		3,921		892		1,749		7,014		5,771
Data processing	1,782		1,828		1,939		1,646		1,621		3,610		3,276

Regulatory assessments	1,021		775		1,040		812		769		1,796		1,543
(Reversal of) provision for loan repurchase reserves	(490)		(471)		(675)		(42)		(99)		(961)		(231)
Amortization of intangible assets	313		441		430		282		282		754		564
Merger-related costs	—		—		13,469		1,000		700		—		1,400

All other expense	4,696		4,116		4,302		3,096		3,320		8,812		6,637
Total noninterest expense before loss (gain) in alternative energy partnership investments	47,569		46,438		60,092		39,596		40,661		94,007		84,194
Loss (gain) in alternative energy partnership investments	1,043		158		(1,220)		(1,785)		(829)		1,201		2,801
Total noninterest expense	48,612		46,596		58,872		37,811		39,832		95,208		86,995
Income before income taxes	36,873		67,297		8,510		31,831		25,612		104,170		42,281
Income tax expense	10,161		18,785		2,759		8,661		6,562		28,946		8,856




Net income	26,712		48,512		5,751		23,170		19,050		75,224		33,425
Preferred stock dividends	—		1,420		1,727		1,727		1,727		1,420		4,868
Income allocated to participating securities	—		—		—		—		—		—		122

Impact of preferred stock redemption	—		3,747		—		—		—		3,747		3,347
Net income available to common stockholders	$	26,712	$	43,345	$	4,024	$	21,443	$	17,323	$	70,057	$	25,088

Earnings per common share:


Basic	$	0.44	$	0.69	$	0.07	$	0.42	$	0.34	$	1.13	$	0.50



Diluted	$	0.43	$	0.69	$	0.07	$	0.42	$	0.34	$	1.13	$	0.49
Weighted average number of common shares outstanding
Basic	61,350,802		62,606,450		60,401,366		50,716,680		50,650,186		61,974,582		50,501,369
Diluted	61,600,615		62,906,003		60,690,046		50,909,317		50,892,202		62,248,376		50,810,285
Dividends declared per common share	$	0.06	$	0.06	$	0.06	$	0.06	$	0.06	$	0.12	$	0.12

Banc of California, Inc.

Selected Financial Data

(Unaudited)


	Three Months Ended										Six Months Ended
	June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021		June 30, 2021		June 30, 2022		June 30, 2021
Profitability and other ratios of consolidated operations
Return on average assets(1)	1.15	%	2.09	%	0.24	%	1.13	%	0.98	%	1.62	%	0.86	%
Return on average equity(1)	11.05	%	18.74	%	2.20	%	10.84	%	9.38	%	15.02	%	7.92	%
Return on average tangible common equity(1)(2)	12.43	%	20.29	%	2.04	%	12.04	%	10.34	%	16.35	%	7.55	%
Pre-tax pre-provision income ROAA(1)(2)	1.58	%	1.54	%	0.84	%	1.50	%	1.20	%	1.56	%	1.00	%
Adjusted pre-tax pre-provision income ROAA(1)(2)	1.65	%	1.55	%	1.39	%	1.35	%	1.13	%	1.60	%	1.10	%
Dividend payout ratio(3)	13.64	%	8.70	%	85.71	%	14.29	%	17.65	%	10.62	%	24.00	%
Average loan yield	4.35	%	4.26	%	4.20	%	4.18	%	4.30	%	4.31	%	4.30	%
Average cost of interest-bearing deposits	0.28	%	0.12	%	0.17	%	0.22	%	0.32	%	0.20	%	0.35	%
Average cost of total deposits	0.17	%	0.08	%	0.11	%	0.15	%	0.23	%	0.12	%	0.25	%
Net interest spread	3.30	%	3.29	%	3.05	%	3.06	%	3.04	%	3.30	%	3.00	%
Net interest margin(1)	3.58	%	3.51	%	3.28	%	3.28	%	3.27	%	3.55	%	3.23	%
Noninterest income to total revenue(4)	8.41	%	7.18	%	7.13	%	8.06	%	5.44	%	7.80	%	6.55	%
Noninterest income to average total assets(1)	0.31	%	0.26	%	0.24	%	0.27	%	0.18	%	0.28	%	0.21	%
Noninterest expense to average total assets(1)	2.09	%	2.01	%	2.50	%	1.84	%	2.04	%	2.05	%	2.24	%
Adjusted noninterest expense to average total assets(1)(2)	2.02	%	2.01	%	1.95	%	1.99	%	2.11	%	2.02	%	2.14	%
Efficiency ratio(2)(5)	56.87	%	56.58	%	74.86	%	55.20	%	62.94	%	56.73	%	69.04	%
Adjusted efficiency ratio(2)(6)	55.11	%	56.52	%	58.47	%	59.49	%	65.17	%	55.80	%	66.15	%
Average loans to average deposits	98.21	%	98.28	%	92.99	%	94.99	%	92.74	%	98.25	%	93.24	%
Average securities to average total assets	13.02	%	13.76	%	13.83	%	16.55	%	16.71	%	13.39	%	16.22	%
Average stockholders’ equity to average total assets	10.38	%	11.18	%	11.10	%	10.41	%	10.41	%	10.78	%	10.85	%

(1)Ratio presented on an annualized basis.

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

(3)Ratio calculated by dividing dividends declared per common share by basic earnings (loss) per common share.

(4)Total revenue is equal to the sum of net interest income before provision for (reversal of) credit losses and noninterest income.

(5)Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for (reversal of) credit losses and noninterest income.

(6)Ratio calculated by dividing adjusted noninterest expense by the sum of net interest income before provision for (reversal of) credit losses and adjusted noninterest income.

Banc of California, Inc.

Average Balance, Average Yield Earned, and Average Cost Paid

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	June 30, 2022							March 31, 2022							December 31, 2021
	Average					Yield		Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,889,652		$	31,290	4.34	%	$	2,850,811		$	31,367	4.46	%	$	2,809,181		$	32,184	4.55	%
Commercial and industrial and SBA	2,527,506			29,334		4.66	%	2,748,541			30,043		4.43	%	2,631,596			28,028		4.23	%
SFR mortgage	1,755,719			16,795		3.84	%	1,562,478			13,273		3.45	%	1,418,057			11,884		3.32	%
Other consumer	93,160			1,450		6.24	%	97,516			1,523		6.33	%	85,193			1,483		6.91	%
Loans held-for-sale	3,618			26		2.88	%	3,428			28		3.31	%	3,309			26		3.12	%
Gross loans and leases	7,269,655			78,895		4.35	%	7,262,774			76,234		4.26	%	6,947,336			73,605		4.20	%
Securities	1,216,612			8,124		2.68	%	1,292,079			7,309		2.29	%	1,290,664			6,934		2.13	%
Other interest-earning assets	295,715			1,399		1.90	%	265,339			726		1.11	%	593,739			1,034		0.69	%
Total interest-earning assets	8,781,982			88,418		4.04	%	8,820,192			84,269		3.87	%	8,831,739			81,573		3.66	%
Allowance for loan losses	(94,217)							(92,618)							(92,367)
BOLI and noninterest-earning assets	654,931							664,731							592,583
Total assets	$	9,342,696						$	9,392,305						$	9,331,955

Interest-bearing liabilities
Interest-bearing checking	$	2,363,233		$	1,457	0.25	%	$	2,409,262		$	641	0.11	%	$	2,461,397		$	693	0.11	%


Savings and money market	1,598,663			860		0.22	%	1,673,244			510		0.12	%	1,780,483			1,078		0.24	%
Certificates of deposit	631,415			863		0.55	%	508,244			237		0.19	%	610,766			301		0.20	%
Total interest-bearing deposits	4,593,311			3,180		0.28	%	4,590,750			1,388		0.12	%	4,852,646			2,072		0.17	%
FHLB advances	485,629			3,114		2.57	%	459,749			2,953		2.60	%	407,122			2,977		2.90	%

Other borrowings	117,688			325		1.11	%	116,495			55		0.19	%	27,300			7		0.10	%
Long-term debt	274,515			3,500		5.11	%	274,417			3,432		5.07	%	270,879			3,478		5.09	%
Total interest-bearing liabilities	5,471,143			10,119		0.74	%	5,441,411			7,828		0.58	%	5,557,947			8,534		0.61	%
Noninterest-bearing deposits	2,804,877							2,795,633							2,614,712
Noninterest-bearing liabilities	96,791							105,349							123,514
Total liabilities	8,372,811							8,342,393							8,296,173
Total stockholders’ equity	969,885							1,049,912							1,035,782
Total liabilities and stockholders’ equity	$	9,342,696						$	9,392,305						$	9,331,955

Net interest income/spread				$	78,299	3.30	%				$	76,441	3.29	%				$	73,039	3.05	%
Net interest margin						3.58	%						3.51	%						3.28	%

Ratio of interest-earning assets to interest-bearing liabilities	161		%					162		%					159		%
Total deposits	$	7,398,188		$	3,180	0.17	%	$	7,386,383		$	1,388	0.08	%	$	7,467,358		$	2,072	0.11	%
Total funding (1)	$	8,276,020		$	10,119	0.49	%	$	8,237,044		$	7,828	0.39	%	$	8,172,659		$	8,534	0.41	%

(1)Total funding is the sum of interest-bearing liabilities and noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.


	Three Months Ended
	September 30, 2021							June 30, 2021
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,379,962		$	26,542	4.42	%	$	2,313,483		$	27,222	4.72	%
Commercial and industrial and SBA	2,322,372			25,345		4.33	%	2,154,512			22,978		4.28	%
SFR mortgage	1,331,876			11,683		3.48	%	1,277,552			11,410		3.58	%
Other consumer	22,164			238		4.26	%	23,881			275		4.62	%
Loans held-for-sale	2,956			29		3.89	%	1,987			15		3.03	%
Gross loans and leases	6,059,330			63,837		4.18	%	5,771,415			61,900		4.30	%
Securities	1,347,317			7,167		2.11	%	1,308,230			6,986		2.14	%
Other interest-earning assets	222,274			787		1.40	%	258,915			791		1.23	%
Total interest-earning assets	7,628,921			71,791		3.73	%	7,338,560			69,677		3.81	%
Allowance for loan losses	(76,028)							(79,103)
BOLI and noninterest-earning assets	588,720							567,549
Total assets	$	8,141,613						$	7,827,006

Interest-bearing liabilities
Interest-bearing checking	$	2,280,429		$	632	0.11	%	$	2,182,419		$	679	0.12	%


Savings and money market	1,583,791			1,350		0.34	%	1,638,105			2,244		0.55	%
Certificates of deposit	571,822			430		0.30	%	633,101			620		0.39	%
Total interest-bearing deposits	4,436,042			2,412		0.22	%	4,453,625			3,543		0.32	%
FHLB advances	435,984			2,990		2.72	%	418,111			2,944		2.82	%

Other borrowings	126,352			34		0.11	%	17,920			4		0.09	%
Long-term debt	256,634			3,379		5.22	%	256,492			3,339		5.22	%
Total interest-bearing liabilities	5,255,012			8,815		0.67	%	5,146,148			9,830		0.77	%
Noninterest-bearing deposits	1,939,912							1,767,711
Noninterest-bearing liabilities	98,748							98,174
Total liabilities	7,293,672							7,012,033
Total stockholders’ equity	847,941							814,973
Total liabilities and stockholders’ equity	$	8,141,613						$	7,827,006

Net interest income/spread				$	62,976	3.06	%				$	59,847	3.04	%
Net interest margin						3.28	%						3.27	%

Ratio of interest-earning assets to interest-bearing liabilities	145		%					143		%
Total deposits	$	6,375,954		$	2,412	0.15	%	$	6,221,336		$	3,543	0.23	%
Total funding (1)	$	7,194,924		$	8,815	0.49	%	$	6,913,859		$	9,830	0.57	%


	Six Months Ended
	June 30, 2022							June 30, 2021
	Average					Yield		Average					Yield
	Balance			Interest		/ Cost		Balance			Interest		/ Cost
Interest-earning assets
Commercial real estate, multifamily, and construction	$	2,870,339		$	62,658	4.40	%	$	2,317,971		$	53,610	4.66	%
Commercial and industrial and SBA	2,637,413			59,376		4.54	%	2,187,818			45,888		4.23	%
SFR mortgage	1,659,633			30,068		3.65	%	1,244,015			23,157		3.75	%
Other consumer	95,326			2,973		6.29	%	26,188			569		4.38	%
Loans held-for-sale	3,523			54		3.09	%	1,701			21		2.49	%
Gross loans and leases	7,266,234			155,129		4.31	%	5,777,693			123,245		4.30	%
Securities	1,254,137			15,433		2.48	%	1,272,383			13,487		2.14	%
Other interest-earning assets	280,611			2,125		1.53	%	297,465			1,563		1.06	%
Total interest-earning assets	8,800,982			172,687		3.96	%	7,347,541			138,295		3.80	%
Allowance for credit losses	(93,422)							(80,102)
BOLI and noninterest-earning assets	659,804							576,446
Total assets	$	9,367,364						$	7,843,885

Interest-bearing liabilities
Interest-bearing checking	$	2,386,120		$	2,097	0.18	%	$	2,161,483		$	1,581	0.15	%


Savings and money market	1,635,747			1,371		0.17	%	1,646,269			4,634		0.57	%
Certificates of deposit	570,170			1,100		0.39	%	676,400			1,614		0.48	%
Total interest-bearing deposits	4,592,037			4,568		0.20	%	4,484,152			7,829		0.35	%
FHLB advances	472,760			6,067		2.59	%	432,286			6,056		2.83	%

Other borrowings	117,095			379		0.65	%	11,061			6		0.11	%
Long-term debt	274,466			6,933		5.09	%	256,427			6,641		5.22	%
Total interest-bearing liabilities	5,456,358			17,947		0.66	%	5,183,926			20,532		0.80	%
Noninterest-bearing deposits	2,800,281							1,710,930
Noninterest-bearing liabilities	101,048							97,658
Total liabilities	8,357,687							6,992,514
Total stockholders’ equity	1,009,677							851,371
Total liabilities and stockholders’ equity	$	9,367,364						$	7,843,885

Net interest income/spread				$	154,740	3.30	%				$	117,763	3.00	%
Net interest margin						3.55	%						3.23	%

Ratio of interest-earning assets to interest-bearing liabilities	161		%					142		%
Total deposits	$	7,392,318		$	4,568	0.12	%	$	6,195,082		$	7,829	0.25	%
Total funding (1)	$	8,256,639		$	17,947	0.44	%	$	6,894,856		$	20,532	0.60	%

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures

(Dollars in thousands, except per share data)

(Unaudited)

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

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

Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total equity. Tangible common equity is calculated by subtracting preferred stock from tangible equity. Return on average tangible common equity is computed by dividing net income (loss) available to common stockholders, after adjustment for amortization of intangible assets, 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.

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 total revenue and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by total revenue.

Adjusted net income (loss) is calculated by adjusting net income (loss) for tax-effected noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is computed by dividing annualized adjusted net income by average assets. Adjusted net income (loss) available to common stockholders is computed by removing the impact of preferred stock redemptions from adjusted net income (loss). Adjusted diluted earnings per share is computed by dividing adjusted net income (loss) available to common stockholders by the weighted average diluted common shares outstanding.

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

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

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets	$	9,502,113		$	9,583,540		$	9,393,743		$	8,278,741		$	8,027,413
Less goodwill	(95,127)			(95,127)			(94,301)			(37,144)			(37,144)
Less other intangible assets	(4,677)			(4,990)			(6,411)			(1,787)			(2,069)
Tangible assets(1)	$	9,402,309		$	9,483,423		$	9,293,031		$	8,239,810		$	7,988,200

Total stockholders' equity	$	949,130		$	979,009		$	1,065,290		$	844,803		$	829,362
Less preferred stock	—			—			(94,956)			(94,956)			(94,956)
Total common stockholders' equity	$	949,130		$	979,009		$	970,334		$	749,847		$	734,406

Total stockholders' equity	$	949,130		$	979,009		$	1,065,290		$	844,803		$	829,362
Less goodwill	(95,127)			(95,127)			(94,301)			(37,144)			(37,144)
Less other intangible assets	(4,677)			(4,990)			(6,411)			(1,787)			(2,069)
Tangible equity(1)	849,326			878,892			964,578			805,872			790,149
Less preferred stock	—			—			(94,956)			(94,956)			(94,956)
Tangible common equity(1)	$	849,326		$	878,892		$	869,622		$	710,916		$	695,193

Total stockholders' equity to total assets	9.99		%	10.22		%	11.34		%	10.20		%	10.33		%
Tangible equity to tangible assets(1)	9.03		%	9.27		%	10.38		%	9.78		%	9.89		%
Tangible common equity to tangible assets(1)	9.03		%	9.27		%	9.36		%	8.63		%	8.70		%

Common shares outstanding	59,985,736			62,077,312			62,188,206			50,321,096			50,313,228
Class B non-voting non-convertible common shares outstanding	477,321			477,321			477,321			477,321			477,321
Total common shares outstanding	60,463,057			62,554,633			62,665,527			50,798,417			50,790,549

Book value per common share	$	15.70		$	15.65		$	15.48		$	14.76		$	14.46
Tangible common equity per share(1)	$	14.05		$	14.05		$	13.88		$	13.99		$	13.69

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Six Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021
Return on tangible common equity
Average total stockholders' equity	$	969,885		$	1,049,912		$	1,035,782		$	847,941		$	814,973		$	1,009,677		$	851,371
Less average preferred stock	—			(75,965)			(94,956)			(94,956)			(94,956)			(37,773)			(129,733)
Average common stockholders' equity	969,885			973,947			940,826			752,985			720,017			971,904			721,638
Less average goodwill	(95,127)			(94,307)			(86,911)			(37,144)			(37,144)			(94,719)			(37,144)
Less average other intangible assets	(4,869)			(6,224)			(4,994)			(1,941)			(2,224)			(5,543)			(2,370)
Average tangible common equity(1)	$	869,889		$	873,416		$	848,921		$	713,900		$	680,649		$	871,642		$	682,124




Net income available to common stockholders	$	26,712		$	43,345		$	4,024		$	21,443		$	17,323		$	70,057		$	25,088
Add amortization of intangible assets	313			441			430			282			282			754			564

Less tax effect on amortization of intangible assets(2)	(66)			(93)			(90)			(59)			(59)			(158)			(118)
Net income available to common stockholders after adjustments for intangible assets(1)	$	26,959		$	43,693		$	4,364		$	21,666		$	17,546		$	70,653		$	25,534

Return on average equity	11.05		%	18.74		%	2.20		%	10.84		%	9.38		%	15.02		%	7.92		%
Return on average tangible common equity(1)	12.43		%	20.29		%	2.04		%	12.04		%	10.34		%	16.35		%	7.55		%

(1)Non-GAAP measure.

(2)Adjustments shown net of a statutory Federal tax rate of 21%.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Six Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021
Adjusted noninterest expense








Total noninterest expense	$	48,612		$	46,596		$	58,872		$	37,811		$	39,832		$	95,208		$	86,995
Noninterest expense adjustments:




Professional (fees) recoveries	(455)			106			(642)			2,152			1,284			(349)			563

Merger-related costs	—			—			(13,469)			(1,000)			(700)			—			(1,400)


Noninterest expense adjustments before (loss) gain in alternative energy partnership investments	(455)			106			(14,111)			1,152			584			(349)			(837)
(Loss) gain in alternative energy partnership investments	(1,043)			(158)			1,220			1,785			829			(1,201)			(2,801)
Total noninterest expense adjustments	(1,498)			(52)			(12,891)			2,937			1,413			(1,550)			(3,638)
Adjusted noninterest expense(1)	$	47,114		$	46,544		$	45,981		$	40,748		$	41,245		$	93,658		$	83,357

Average assets	$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	7,827,006		$	9,367,364		$	7,843,885
Noninterest expense to average total assets	2.09		%	2.01		%	2.50		%	1.84		%	2.04		%	2.05		%	2.24		%
Adjusted noninterest expense to average total assets(1)	2.02		%	2.01		%	1.95		%	1.99		%	2.11		%	2.02		%	2.14		%

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Six Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021
Adjusted pre-tax pre-provision income
Net interest income	$	78,299		$	76,441		$	73,039		$	62,976		$	59,847		$	154,740		$	117,763
Noninterest income	7,186			5,910			5,605			5,519			3,443			13,096			8,252
Total revenue	85,485			82,351			78,644			68,495			63,290			167,836			126,015
Noninterest expense	48,612			46,596			58,872			37,811			39,832			95,208			86,995
Pre-tax pre-provision income(1)	$	36,873		$	35,755		$	19,772		$	30,684		$	23,458		$	72,628		$	39,020

Total revenue	$	85,485		$	82,351		$	78,644		$	68,495		$	63,290		$	167,836		$	126,015



Noninterest expense	48,612			46,596			58,872			37,811			39,832			95,208			86,995
Total noninterest expense adjustments	(1,498)			(52)			(12,891)			2,937			1,413			(1,550)			(3,638)
Adjusted noninterest expense(1)	47,114			46,544			45,981			40,748			41,245			93,658			83,357
Adjusted pre-tax pre-provision income(1)	$	38,371		$	35,807		$	32,663		$	27,747		$	22,045		$	74,178		$	42,658

Average assets	$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	7,827,006		$	9,367,364		$	7,843,885
Pre-tax pre-provision income ROAA(1)	1.58		%	1.54		%	0.84		%	1.50		%	1.20		%	1.56		%	1.00		%
Adjusted pre-tax pre-provision income ROAA(1)	1.65		%	1.55		%	1.39		%	1.35		%	1.13		%	1.60		%	1.10		%
Efficiency ratio(1)	56.87		%	56.58		%	74.86		%	55.20		%	62.94		%	56.73		%	69.04		%
Adjusted efficiency ratio(1)	55.11		%	56.52		%	58.47		%	59.49		%	65.17		%	55.80		%	66.15		%

(1)Non-GAAP measure.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)


	Three Months Ended															Six Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			June 30, 2022			June 30, 2021
Adjusted net income
Net income (1)(2)	$	26,712		$	48,512		$	5,751		$	23,170		$	19,050		$	75,224		$	33,425
Adjustments:

Noninterest expense adjustments	1,498			52			12,891			(2,937)			(1,413)			1,550			3,638


Tax impact of adjustments above(3)	(443)			(15)			(3,811)			868			418			(458)			(1,076)
Tax impact from exercise of stock appreciation rights	—			—			—			—			—			—			(2,093)
Adjustments to net income	1,055			37			9,080			(2,069)			(995)			1,092			469
Adjusted net income(4)	$	27,767		$	48,549		$	14,831		$	21,101		$	18,055		$	76,316		$	33,894

Average assets	$	9,342,696		$	9,392,305		$	9,331,955		$	8,141,613		$	7,827,006		$	9,367,364		$	7,843,885
ROAA	1.15		%	2.09		%	0.24		%	1.13		%	0.98		%	1.62		%	0.86		%
Adjusted ROAA(4)	1.19		%	2.10		%	0.63		%	1.03		%	0.93		%	1.64		%	0.87		%

Adjusted net income available to common stockholders
Net income available to common stockholders	$	26,712		$	43,345		$	4,024		$	21,443		$	17,323		$	70,057		$	25,088
Adjustments to net income	1,055			37			9,080			(2,069)			(995)			1,092			469
Adjustments for impact of preferred stock redemption	—			3,747			—			—			—			3,747			3,347
Adjusted net income available to common stockholders(4)	$	27,767		$	47,129		$	13,104		$	19,374		$	16,328		$	74,896		$	28,904

Average diluted common shares	61,600,615			62,906,003			60,690,046			50,909,317			50,892,202			62,248,376			50,810,285
Diluted EPS	$	0.43		$	0.69		$	0.07		$	0.42		$	0.34		$	1.13		$	0.49
Adjusted diluted EPS(4)(5)	$	0.45		$	0.75		$	0.22		$	0.38		$	0.32		$	1.20		$	0.57

(1)Net income for the three months ended March 31, 2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan; there is no similar recovery in any of the other periods presented. The Bank previously recognized a $35.1 million charge-off for this loan during the third quarter of 2019.

(2)Net income for the three months ended December 31, 2021 includes an $11.3 million pre-tax charge for the expected lifetime credit losses for non-purchased credit deteriorated loans acquired in the PMB Acquisition; there is no similar charge in any of the other periods presented.

(3)Tax impact of adjustments shown at a statutory tax rate of 29.6%.

(4)Non-GAAP measure.

(5)Represents adjusted net income available to common stockholders divided by average diluted common shares.

INVESTOR PRESENTATION 2022 Second Quarter Earnings bancofcal.com

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

3 (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) 2Q22 capital ratios are preliminary SECOND QUARTER 2022 RESULTS ($ in Thousands Except Per Share Data) 2Q22 1Q22 2Q21 Net interest income $ 78,299 $ 76,441 $ 59,847 (Reversal of) provision for credit losses - $ (31,542) $ (2,154) Net income $ 26,712 $ 48,512 $ 19,050 Net income available to common stockholders $ 26,712 $ 43,345 $ 17,323 Earnings per diluted common share $ 0.43 $ 0.69 $ 0.34 Adjusted net income available to common stockholders (1) $ 27,767 $ 47,129 $ 16,328 Adjusted earnings per diluted common share (1) $ 0.45 $ 0.75 $ 0.32 Pre-tax pre-provision (PTPP) income (1) $ 36,873 $ 35,755 $ 23,458 Adjusted PTPP income (1) $ 38,371 $ 35,807 $ 22,045 Return on average assets (ROAA) 1.15% 2.09% 0.98% PTPP ROAA (1) 1.58% 1.54% 1.20% Adjusted PTPP ROAA (1) 1.65% 1.55% 1.13% Average assets $ 9,342,696 $ 9,392,305 $ 7,827,006 Net interest margin 3.58% 3.51% 3.27% Allowance for credit losses coverage ratio 1.34% 1.32% 1.33% Common equity tier 1 (2) 11.28% 11.40% 11.14% Tangible common equity per share (1) $ 14.05 $ 14.05 $ 13.69 Noninterest-bearing deposits as % of total deposits 37.4% 39.6% 29.1%

4 ENHANCING FRANCHISE VALUE (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 2nd Quarter 2022 Summary Continued Profitable Growth • NIM expansion and continued strong execution on growth strategies resulted in sequential quarter improvement in:  Adjusted Pre-Tax Pre-Provision Income(1)  EPS and Return on Average Tangible Common Equity (excluding impact of legal settlement in 1Q22) Enhancing Shareholder Value • Repurchased $39 million of common stock in 2Q22 and $52 million YTD through July 20th, or approximately 4.5% of Q421 shares outstanding • Strong earnings offset impact of negative OCI mark and share repurchases to keep TBVPS unchanged at $14.05 Robust Loan Production & Strong Loan Growth in Targeted Areas of the Portfolio • $1.2 billion in loan fundings during 2Q22 and 25% greater than 1Q22 • Loan pipeline remains strong despite the current rising rate environment • Double-digit annualized loan growth in C&I (excluding Warehouse), CRE and Multifamily portfolios • In aggregate, SFR and Warehouse remain relatively flat as a % of total loans while overall portfolio growth is driven by targeted areas of commercial and CRE lending Asset Sensitivity Results in NIM Expansion • 17 basis point increase in earning asset yield offset increase in average cost of deposits of 9 bps • NIM expanded 7 basis points to 3.58% • Noninterest-bearing deposits averaged 38% of total deposits Positive Trends in Asset Quality • Non-performing loans ratio declined 13 bps to 0.60% • Criticized and classified loans declined 16% • The NPL coverage ratio increased from 181% to 224%

5 • Adjusted sequential pre-tax pre- provision income increased $2.6 million, or 7% • Adjusted sequential PTPP ROAA increased 10 bps to 1.65%. • Adjusted PTPP increase due mostly to higher net interest income driven by higher NIM • 2Q22 and 1Q22 noninterest expense adjustments include indemnified professional fees, net of recoveries ($ in millions) (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation $36.9 $38.4 Pre-tax, pre- provision income (1) Adjusted pre-tax, pre- provision income (1) Loss on alternative energy partnerships $0.5 $1.0 Noninterest expense adjustments $35.8 $35.8 Pre-tax, pre- provision income (1) Loss on alternative energy partnerships Adjusted pre-tax, pre- provision income (1) $(0.1) Noninterest expense adjustments $0.1 Adjusted PTPP ROAA 1.55% 2Q 2022 1Q 2022 Adjusted PTPP ROAA 1.65% GROWING CORE EARNINGS POWER Highlights PTPP ROAA 1.58% PTPP ROAA 1.54%

6 Adjusted Pre-tax Pre-provision (PTPP) Income (1) $16.0 $13.2 $12.2 $18.9 (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 0.65% 0.83% 0.98% 1.25% 1.06% 1.13% 1.35% 1.39% 1.55% 1.65% $12.2 $16.0 $38.4 1Q20 $18.9 $27.7 2Q20 4Q203Q20 $24.5 $20.6 1Q21 $22.0 2Q21 3Q21 $32.7 $35.8 4Q21 1Q22 2Q22 +38% +215% Adjusted PTPP Income Adjusted PTPP Income / Avg. Assets ESCALATING ADJUSTED PRE-TAX PRE-PROVISION INCOME TREND ($ in millions)

7 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS RECONCILIATION • 2Q22 and 1Q22: Noninterest expense adjustments relate to professional fees, net of recoveries • 1Q22: Includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan; positively impacted 1Q22 EPS by approximately $0.36 per share (3) ($ in millions) (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation presented utilizing a statutory tax rate of 29.56%; see “Non-GAAP Reconciliation” slides at end of presentation $26.7 $27.8 Preferred Redemption Adjustments $0.3 Net Income Available to Common Stockholders $-0 Noninterest expense adjustments $0.7 Loss on alternative energy partnerships Adjusted Net Income Available to Common Stockholders (1)(2) $43.3 $47.1 $0.1$(0.1) Net income available to common stockholders $3.7 Preferred Redemption Adjustments Noninterest expense adjustments Loss on alternative energy partnerships Adjusted Net Income Available to Common Stockholders (1)(2) EPS $0.43 EPS $0.75EPS $0.69 2Q 2022 1Q 2022 EPS $0.45 Highlights

8 Low Cost DEPOSIT FRANCHISE (1) Reflects balance as of period end • YTD increase in noninterest-bearing deposits compared to 4Q21 • 69% percent of deposits are noninterest-bearing and low-cost deposits, up from 65% a year ago • Targeted deposit strategy has transformed deposit mix and contributed to asset-sensitive profile • 2Q22 average cost of deposits 6 bps lower compared to 2Q21 Cost of Deposits 0% 25% 0.23% 29% 10% 2Q21 24% 0.15% 2Q22 38%32% 34% 25% 2%0% 0.11% 9% 36% 32% 0%7% 4Q21 0.08% 40% 32% 8% 21% 0%7% 1Q22 0.17% 37% 31% 22% 3Q21 Average Cost of deposits Noninterest-bearing Interest-bearing checking Money Market & Savings Brokered CDs CDs Spot Rate 0.21% Category 2Q21 3Q21 4Q21 1Q22 2Q22 $ in millions Noninterest-bearing checking $1,808.9 $2,107.7 $2,788.2 $2,958.6 $2,826.6 Interest-bearing checking 2,217.3 2,214.7 2,393.4 2,395.3 2,359.9 Demand deposits 4,026.2 4,322.4 5,181.6 5,354.0 5,186.5 Money Market & Savings 1,593.7 1,661.0 1,751.1 1,605.1 1,622.9 CDs 586.6 559.8 506.7 520.7 615.7 Brokered CDs 0.0 0.0 0.0 0.0 133.6 Total(1) $6,206.5 $6,543.2 $7,439.4 $7,479.7 $7,558.7 Highlights

9 DIVERSIFIED LOAN PORTFOLIO MITIGATES RISK AND GENERATES ATTRACTIVE RISK-ADJUSTED YIELD • Total Commercial Loans, excluding SBA loans and C&I Warehouse, increased $256.2 million or 25.1% on an annualized basis • 66% of loan portfolio is secured by residential real estate • Real estate secured loans weighted average loan-to-values (LTVs) of 58% • 73% of the SFR portfolio have LTVs of less than 70% • ~83% of all real estate secured loans have LTVs of less than 70% • Q2 2022 Single family loan purchases average yield above current average yield of 3.84% (1) Reflects balance as of period end (2) Includes PPP loans of $28.4 at June 30, 2022 and $58.3 million at March 31, 2022 2nd Quarter 2022 1st Quarter 2022 Change Loan Segment $(1) % Avg. Yield $(1) % Avg. Yield $(1) % Avg. Yield $ in Millions C&I: Warehouse $ 1,160 16% 4.83% $ 1,575 21% 4.26% $ (414) -5% 0.57% C&I: All Other 1,273 17% 4.54% 1,225 16% 4.69% 48 1% -0.15% Multifamily 1,572 21% 4.14% 1,398 19% 4.35% 175 2% -0.21% CRE 1,204 16% 4.43% 1,163 16% 4.50% 41 0% -0.07% Construction 228 3% 5.50% 225 3% 5.10% 3 0% 0.40% SBA(2) 92 1% 3.52% 133 2% 4.24% (41) -1% -0.72% Total Commercial Loans 5,531 74% 4.49% 5,719 77% 4.45% (188) -3% 0.04% SFR 1,832 25% 3.84% 1,637 22% 3.45% 195 3% 0.39% Consumer 88 1% 6.24% 95 1% 6.34% (7) 0% -0.10% Total Consumer Loans 1,921 26% 3.96% 1,733 23% 3.61% 188 3% 0.35% Total Loans HFI $ 7,451 100% 4.35% $ 7,452 100% 4.26% $ (0) N/A 0.09% Construction $228 3% Consumer $88 1% SBA(2) $92 1% CRE $1,204 16% 1-4 Res. $1,832 25% Multifamily $1,572 21% C&I $2,433 33%

10 DIVERSIFIED BUSINESS MIX PRODUCING CONSISTENTLY STRONG LOAN FUNDINGS (1) PMB acquired loans excluded from chart and Total Loan Fundings (2) Includes deferred costs/fees, transfers, sales and other adjustments ($ in millions) Loans Beginning Balance Total Fundings PMB Acquired(1) Total Payoffs Net Di fference Other Change (2) Loans Ending Balance Total Loan Yield Rate on Production Rate on Production excl . PPP Q2 2022 7,455$ 1,211$ -$ 1,208$ 3$ (2)$ 7,455$ 4.35% 4.20% 4.20% Q1 2022 7,255$ 968$ -$ 780$ 188$ 12$ 7,455$ 4.26% 3.70% 3.70% Q4 2021 6,232$ 906$ 963$ 828$ 77$ (17)$ 7,255$ 4.20% 3.74% 3.74% Q3 2021 5,988$ 763$ -$ 528$ 234$ 9$ 6,232$ 4.18% 3.83% 3.83% Q2 2021 5,766$ 847$ -$ 634$ 213$ 10$ 5,988$ 4.30% 3.86% 3.91% $533 $503 $583 $679 $831 $87 $82 $243 $290 $380 $227 $178 $80 $847 $763 $906 $968 $1,211 ($496) ($385) ($575) ($435) ($459) ($138) ($144) ($254) ($317) ($334) ($28) ($414) ($634) ($528) ($828) ($780) ($1,208) 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Total Loan Fundings of $1.21 Billion in 2Q22 Fundings Advances Warehouse Net Advances/(Paydowns) Payoffs Paydowns Warehouse Net Advances/Paydowns Total Loan Yield Rate on Production Rate on Production excl. PPP ($ in millions)

11 ASSET QUALITY REMAINS STRONG NPLs, Delinquencies, and Classified Loans Delinquencies ($ in millions) Non-performing Loans (NPLs) ($ in millions) Criticized and Classified Loans ($ in millions) ACL / Non-performing Loans (NPLs) ($ in millions) $26.0 $29.7 3Q21 $21.7 $21.7 0.58% $13.3 2Q21 1Q22 $19.1 0.72% $31.9 $19.1 $61.0 1.00% 4Q21 $30.4 $30.6 2Q22 0.82% $32.5 0.83% $35.0 $45.1 $72.8 $62.2 PMBC Acquired Delinquencies SFR Delinquencies Delinquencies (ex-SFR) Delinquencies /Total Loans 3Q21 $60 $211 $102 4Q212Q21 $76 $101 $259 $98 $241 1Q22 $125 2Q22 $245 $250 Criticized and Classified Loans Classified Loans PMB Acquired Criticized and Classified Loans $30.1 0.73%0.72% $21.2 2Q21 0.86% $16.5 $29.1 0.73% $10.3 3Q21 $7.1 $21.6 $23.9 4Q21 $44.2 1Q22 $7.3 $37.1 0.60% 2Q22 $51.3 $45.6 $52.6 $44.4 $54.5 SFR NPLs NPLs (ex-SFR) PMBC Acquired NPLs NPLs/Total Loans-HFI 155% 173% 187% 181% 224% $78.8 $98.6 $79.7 4Q212Q21 $98.2 3Q21 1Q22 $99.7 2Q22 ACL / NPLs ACL (1) The NPL ratio related to BANC originated loans is 0.49% when PMB’s NPLs of $21.6 million and PMB acquired loans outstanding at December 31, 2021 of $905 million are excluded (1)

12 TOP 10 RELATIONSHIPS Non-performing & delinquent loans rollforward Non-performing loans • Non-performing loans decreased $10.1 million, or 18%, of which $18.4 million, or 41% relates to loans in a current payment status • Non-performing loans included loans guaranteed by the SBA of $8.6 million Delinquencies • Delinquencies increased $1.2 million, or 2%, as $29.2 million of additions were mostly offset by $21.7 million of loans returning to current status and $6.3 million in other reductions including pay downs • Delinquent loans included loans guaranteed by the SBA of $12.6 million Non-performing Loans ($ in thousands) # 2Q22 1Q22 Delta Loan Category 2Q Accrual Status 2Q Delinquency Status 1Q Accrual Status 1 12,350$ 12,599$ (249) $ C&I Non-Accrual Current Non-Accrual 2 6,617 6,617 - C&I Non-Accrual 90+ Non-Accrual 3 3,929 3,929 - SFR Non-Accrual 90+ Non-Accrual 4 3,523 3,617 (94) C&I Non-Accrual Current Non-Accrual 5 3,189 3,189 - SBA Non-Accrual 90+ Non-Accrual 6 2,977 2,977 - SBA Non-Accrual 90+ Non-Accrual 7 2,326 2,368 (42) C&I Non-Accrual Current Non-Accrual 8 1,924 1,924 - SBA Non-Accrual 90+ Non-Accrual 9 1,201 1,201 - SBA Non-Accrual 90+ Non-Accrual 10 911 914 (3) SFR Non-Accrual 60-89 Non-Accrual 11+ 5,497 15,195 (9,698) Total 44,443$ 54,529$ (10,086) $ Delinquent Loans ($ in thousands) # 2Q22 1Q22 Delta Loan Category 2Q Delinquency Status 2Q Accrual Status 1Q Delinquency Status 1 6,617$ 6,617$ - C&I 90+ Non-Accrual 90+ 2 4,548 - 4,548 SFR 30-59 Accrual Current 3 3,929 3,929 - SFR 90+ Non-Accrual 90+ 4 3,261 - 3,261 C&I 30-59 Accrual Current 5 3,189 3,189 - SBA 90+ Non-Accrual 90+ 6 2,977 2,977 - SBA 90+ Non-Accrual 90+ 7 2,567 - 2,567 C&I 60-89 Accrual Current 8 2,486 2,486 (0) SFR 30-59 Accrual 30-59 9 2,182 2,190 (8) SFR 30-59 Accrual 30-59 10 1,924 1,924 - SBA 90+ Non-Accrual 90+ 11+ 28,512 37,686 (9,174) Total 62,190$ 60,997$ 1,194$

13 ALLOWANCE FOR CREDIT LOSSES WALK ($ in millions) $98.6 $99.7 Specific ReserveACL (3/31/22) $(0.5)$1.1 Recoveries (net of Charge-offs) $0.5 Portfolio Mix ACL (6/30/22) 1.32% 1.34% The $1.1 million increase in the ACL was due primarily to: (i) net recoveries of $1.1 million, (ii) higher specific reserves of $484 thousand, and (iii) higher reserve for unfunded commitments of $500 thousand, offset by lower general loan reserves of $1.0 million. The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables released by the model provider during June 2022. The published forecasts consider rising inflation, higher oil prices, ongoing supply chain issues and the military conflict between Russia and Ukraine, among other factors. ACL includes Allowance for Loan Losses (ALL) and Reserve for Unfunded Loan Commitments (RUC)

14 CONTINUED FOCUS ON EXPENSE MANAGEMENT • Adjusted Noninterest Expense to Average Assets relatively flat sequentially and declined 9 bps compared to 2Q21 • Noninterest expense adjustments relate to loss/gain on investments in alternative energy partnerships(2), and indemnified professional fees, net of recoveries, and in the case of the 2021 quarters presented, merger-related costs Noninterest Expense to Average Assets ($ millions) Adjusted Noninterest Expense(1) to Average Assets ($ millions) $41.2 $47.1 -$1.4 2.01%2.04% $40.7 2Q21 $39.8 -$2.9 $1.5 1.84% 1Q223Q21 $12.9 $46.0 2.50% 4Q21 $0.1 $48.6 $46.5 2.09% 2Q22 $37.8 $58.9 $46.6 Noninterest Expense / Average AssetsNoninterest expense adjustments Adjusted Noninterest Expense $41.2 1.95% 2.11% 3Q21 $40.7 2Q21 4Q21 1.99% $46.0 $46.5 2.01% 1Q22 $47.1 2.02% 2Q22 Adjusted Noninterest Expense Adjusted Noninterest Expense / Average Assets Highlights

15 Interest Rate Risk Position (within 12 months) Loan & Deposit Mix Rate Sensitive Assets at 37% of Total Assets Loan Portfolio • $2.7 Billion mature or reset within 12 months • $863 Million are at or below their floors • Given a 100 bps market rate increase 90% of loans with floors are eligible to reprice Cash & Investments • $578 Million reprice within 12 months, mostly CLOs • $243 Million in Interest Bearing Cash INTEREST RATE RISK MANAGEMENT Well positioned for higher rates with a One Year Positive Gap Ratio of 30% HFI Loans: $7.5 billion Total Deposits: $7.6 billion Noninterest- bearing 37% Interest- bearing, Non-Maturity Non-Time 53% Time 10% Hybrid 23% Variable 37% Fixed 40% LESS Rate Sensitive Liabilities at 7% of Total Assets • $503 million CD’s mature or reprice within 12 months • $203 million in overnight borrowings One Year Positive Gap Ratio is 30% of Total Assets

16 (1) 2Q22 capital ratios are preliminary (2) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 2Q22 1Q22 4Q21 3Q21 2Q21 Common Equity Tier 1 (1) 11.28% 11.40% 11.31% 10.86% 11.14% Tier 1 Risk-based Capital (1) 11.28% 11.40% 12.55% 12.35% 12.71% Leverage Ratio (1) 9.59% 9.72% 10.37% 9.80% 9.89% Tangible Equity / Tangible Assets (2) 9.03% 9.27% 10.38% 9.78% 9.89% Tangible Common Equity / Tangible Assets (2) 9.03% 9.27% 9.36% 8.63% 8.70% STRONG CAPITAL BASE Provides buffer to deploy for stockholders’ benefit • 1Q22 included the Series E Preferred Stock Redemption of $98.7 million • 1Q22 and 2Q22 included $4.3 million and $38.9 million in common stock repurchases, respectively

17 2022 STRATEGIC OBJECTIVES • Better positioned to see lower deposit beta and more positive impact on NIM than in last rising interest rate cycle • Robust deposit gathering engine has increased average noninterest-bearing deposits to 38% of average deposits • One year positive gap ratio has increased to 30% at 2Q22 from 7% at 4Q19 • Loan growth rate, a stable and large demand deposit base provide upside in rising rates • Strong commercial banking pipeline and growth • Continue expanding presence in large vertical markets • Capitalize on position as a talent magnet in California to continue selectively adding proven commercial bankers • Achieve greater than 40% cost savings during first half of 2022 (achieved) • Identify additional opportunities for cost savings from larger organization • Expand relationships with new clients that have larger financing needs • Redeemed Series E preferred stock in the first quarter of 2022 • Executed 69% of $75M common stock share repurchase authorized in the 1Q22 • Moved a portion of the securities portfolio to HTM from AFS in 1Q22 to reduce volatility to TBVPS in a rising rate environment • Focus on strategic opportunities to further elevate the client experience and positively impact fee income and shareholder returns • Increase technology investments while still realizing improved operating leverage • Position BANC as the financial services ecosystem hub for our clients • Elevate the client experience and offer innovative solutions directly and through fintech partnerships Fully Realize Synergies of PMB Acquisition Continue Generating Strong Loan Production Capitalize on Asset Sensitivity Accelerate Investment in Technology Continue Optimizing Use of Capital to Increase Earnings and Enhance Franchise Value Continued Balance Sheet Growth and Expanding Profitability

18 APPENDIX bancofcal.com

19 REAL ESTATE LOAN PORTFOLIO HAS LOW LTVS $ in millions (1) Excludes Warehouse credit facilities Real Estate Loan Balances(1) SFR Portfolio by LTV 61% 1Q224Q212Q21 59% 60% 3Q21 59% 65% 2Q22 $3,636 $3,727 $4,274 $4,424 $4,837 RE Loans / Loans-HFI RE Loans 60% to 70% 50% to 60% <50% 70% to 80% >80% • ~83% of all real estate secured loans have LTVs of less than 70% • Weighted average LTV is 58% Real Estate(1) LTVs $ % Count <50% $ 1,326 27% 1,098 50% to 60% 1,146 24% 502 60% to 70% 1,565 32% 574 70% to 80% 746 15% 443 >80% 55 1% 23 Total $ 4,837 100% 2,640 $ in Millions SFR LTVs $ % Count <50% $ 557 30% 636 50% to 60% 339 19% 269 60% to 70% 433 24% 317 70% to 80% 492 27% 387 >80% 12 1% 6 Total $ 1,832 100% 1,615 $ in Millions • ~73% of all existing SFR have LTVs of less than 70% • Weighted average LTV is 58%

20 CALIFORNIA-CENTRIC CRE AND MULTIFAMILY PORTFOLIOS HAVE LOW WEIGHTED-AVERAGE LTV CRE & Multifamily by Collateral Type Multifamily 57% Health Facility 3% 12% Retail 12% Industrial 9% Owner Occupied 11% Mixed Use 2.8% Multi Tenant 40% Single Tenant 18% Strip Center 7% Non Owner Occupied 89% Neighborhood Shopping Center 34% Other 1% Office Other 0.7% Residential 96.4% Other 7% Hospitality 2% Collateral Type Count Balance Avg. Loan Size W.A. LTV $ in Millions MultiFamily 593 $ 1,572 $ 2.7 58.2% Office 72 326 4.5 55.8% Retail 66 321 4.9 53.4% Industrial 77 242 3.1 59.4% Health Facility 7 87 12.4 62.7% Hospitality 29 46 1.6 48.4% Other 127 183 1.4 55.4% Total CRE & MF 971 $ 2,777 $ 2.9 57.3%

21 ~64% C&I Concentration toward Businesses focused on Finance (including Warehouse), and Real Estate and Rental Leasing Limited Exposure to High Stressed Business Industries • 1% Food Services • <1% Transportation • <1% in Accommodations All Other C&I includes a diverse mix of industry sectors • 3% Arts, Entertainment, and Recreation • 2% Professional Services • 2% Management of Companies • 1% Administrative and Support • 1% Education Services 48% 10% 7% 5% 4% 3% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 0.5% 5% Finance: Warehouse Real Estate & Rental Leasing Finance: Other Manufacturing Healthcare and Social Assistance Arts, Entertainment, & Recreation Television / Motion Pictures Gas Stations Other Retail Trade Construction Professional Services Wholesale Trade Management of Companies & Enterprises Food Services Educational Services Transportation Accommodations All Other C&I 0% 20% 40% 60% DIVERSIFIED AND LOW AVERAGE BALANCE C&I PORTFOLIO NAICS Industry Count $ Avg. Loan Size $ in Millions Finance: Warehouse 64 $ 1,160 $ 18.1 Real Estate & Rental Leasing 173 245 1.4 Finance: Other 50 161 3.2 Manufacturing 120 121 1.0 Healthcare and Social Assistance 98 92 0.9 Arts, Entertainment, & Recreation 28 67 2.4 Television / Motion Pictures 34 66 1.9 Gas Stations 42 62 1.5 Other Retail Trade 81 56 0.7 Construction 89 47 0.5 Professional Services 165 45 0.3 Wholesale Trade 80 44 0.5 Management of Companies & 3 38 12.5 Food Services 22 37 1.7 Educational Services 17 34 2.0 Transportation 60 19 0.3 Accommodations 6 9 1.5 All Other C&I 254 131 0.5 Total C&I 1,386 $ 2,433 $ 1.8

22 STABLE, LOW COST DEPOSIT BASE PROTECTS NET INTEREST MARGIN Net Interest Margin Drivers 1Q20 3.09% 3.19% 3.78% 0.25% 1.29% 4.06% 0.67% 0.25% 0.89% 4.27% 0.74% 3.09% 3.28% 1.71% 2.97% 0.83% 2Q20 1.11% 0.71% 1Q22 0.25% 0.25% 0.23% 3.86% 0.08% 0.51% 4Q21 0.25% 3.51% 0.15% 1.02% 3Q20 4.04% 2Q21 3.38% 0.36% 4Q20 0.28% 1Q21 0.25% 3.27% 3.81% 0.25% 0.77% 3.73% 3.28% 0.25% 3Q21 3.66% 0.11% 0.61% 2Q22 3.87% 0.33% 1.58% 0.58% 4.04% 3.58% 0.17% Earning Asset Yield Net Interest Margin Cost of Total Deposits Fed Funds Rate Interest-Bearing Liabilities

23 STRONG ALLOWANCE COVERAGE RATIO; ALLOCATION OF RESERVE BY LOAN TYPE • Allowance for Credit Losses (ACL) includes Reserve for Unfunded Commitments • The ACL coverage ratio was 1.34% at the end of 2Q22 compared to 1.32% at the end of 1Q22 ACL Composition 6/30/2022 3/31/2022 ($ in thousands) Amount % of Loans Amount % of Loans Commercial real estate $ 15,742 1.31% $ 16,490 1.42% Multifamily 15,678 1.00% 15,337 1.10% Construction 4,255 1.86% 6,268 2.78% Commercial and industrial 38,177 3.00% 35,906 2.93% Commercial and industrial - warehouse 3,236 0.28% 4,061 0.26% SBA 3,033 3.29% 3,041 2.28% Total commercial loans 80,121 1.45% 81,103 1.42% Single family residential mortgage 12,805 0.70% 11,029 0.67% Other consumer 867 0.98% 1,094 1.15% Total consumer loans 13,672 0.71% 12,123 0.70% Allowance for loan losses 93,793 1.26% 93,226 1.25% Reserve for unfunded commitments 5,905 0.08% 5,405 0.07% Allowance for credit losses $ 99,698 1.34% $ 98,631 1.32%

24(1) $329 million of AFS securities were reclassified to HTM during 1Q22 Portfolio Average Balances & Yields Securities Portfolio Detail(1) SECURITIES PORTFOLIO Portfolio Profile CompositionCredit Rating AAA 43% AA 44% BBB 14% Private Label RMBS 4% Gov’t & AGC 33% CLO 40% Corporates 14% Munis 9% QoQ Duration (yrs) 2Q22 1Q22 Change 2Q22 Gov’t & Agency (MBS, CMO, & SBA) $ 178 $ 192 $ (13) 2.5 CLOs 478 488 (10) 0.1 Corporate Securities 163 169 (5) 3.0 Private Label RMBS 45 50 (5) 8.1 AFS $ 865 $ 899 $ (33) 1.5 Gov’t & Agency (MBS, CMO, & SBA) 215 215 (0) 10.3 Municipal 114 114 0 10.7 HTM $ 329 $ 329 $ (0) 10.5 Total Securities $ 1,195 $ 1,228 $ (33) 4.0 Security Type ($ in millions) 2Q223Q21 2.14% 4Q212Q21 1Q22 2.11% $1,308 2.13% $1,347 $1,291 $1,292 $1,217 2.29% 2.68% Average Balance ($ in millions) Yield

25 CLO Industry Breakdown $478 million at June 30, 2022 (net of $14.6 million unrealized loss) • CLO portfolio has underlying diversified exposure with largest segment in Healthcare & Pharmaceuticals at 12% • Limited exposure to industries that experienced severe stress in 2020-2021 • AA and AAA holdings provide principal protection – exposure to underlying credit losses would require a combination of lifetime defaults (25-40% CDR), loss severity (40-50%), and prepayment assumptions (10-20% CPR) • Under these assumptions, the underlying securities would need to take losses of approximately 30% before we would anticipate incurring losses on principal • 2Q22 average CLO portfolio yield of 2.62%, up from 1.90% in 1Q22 • Quarterly reset based on 3 Month Libor + 1.61% • CLOs included an unrealized loss of $14.6 million as of 2Q22 compared to $4.8 million as of 1Q22. CLO PORTFOLIO HAS DIVERSIFIED EXPOSURE CREDIT ENHANCEMENT PROVIDES SIGNIFICANT PRINCIPAL PROTECTION Healthcare & Pharmaceuticals 12% High Tech Industries 10% Services: Business 10% FIRE: Banking, Finance, Insurance & Real Estate 9% Beverage, Food & Tobacco 5%Media: Broadcasting & Subscription 4% Hotel, Gaming & Leisure 4% Services: Consumer 4% Telecommunications 3% Automotive 3% Construction & Building 3% Capital Equipment 3% Chemicals, Plastics, & Rubber 3% Containers, Packaging & Glass 2% Retail 3% Other 22%

26 BANC FAST FACTS (1) Non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 2Q22 1Q22 4Q21 3Q21 2Q21 $ 9,502 $ 9,584 $ 9,394 $ 8,279 $ 8,027 865 899 1,316 1,303 1,353 329 329 - - - 7,451 7,452 7,251 6,229 5,985 7,559 7,480 7,439 6,543 6,207 $ 78.3 $ 76.4 $ 73.0 $ 63.0 $ 59.8 7.2 5.9 5.6 5.5 3.4 85.5 82.4 78.6 68.5 63.3 47.6 46.4 60.1 39.6 40.7 1.0 0.2 (1.2) (1.8) (0.8) 48.6 46.6 58.9 37.8 39.8 36.9 35.8 19.8 30.7 23.5 - (31.5) 11.3 (1.1) (2.2) 10.2 18.8 2.8 8.7 6.6 26.7 48.5 5.8 23.2 19.1 - 5.2 1.7 1.7 1.7 $ 26.7 $ 43.3 $ 4.0 $ 21.4 $ 17.3 $ 0.43 $ 0.69 $ 0.07 $ 0.42 $ 0.34 $ 14.05 $ 14.05 $ 13.88 $ 13.99 $ 13.69 1.15% 2.09% 0.24% 1.13% 0.98% 55.11% 56.52% 58.47% 59.49% 65.17% (Dollars in millions) Income tax expense Net interest income Total noninterest income Total assets Securities available-for-sale Loans held-for-investment Total deposits Total revenue Noninterest expense Loss (gain) in alternative energy partnership investments Total noninterest expense Pre-tax pre-provision income(1) (Reversal of) provision for credit losses Securities held-to-maturity Preferred dividend and other adjustments Net income available to common stockholders Diluted earnings per common share Net income Tangible common equity per common share (1) Return on average assets Adjusted efficiency ratio(1)

27 NON-GAAP FINANCIAL INFORMATION This presentation contains certain financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). These measures include tangible assets, tangible equity, tangible common equity, tangible equity to tangible assets, tangible common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest expense, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income (loss), adjusted PTPP income (loss), PTPP income (loss) ROAA, adjusted PTPP income (loss) ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS) and adjusted return on average assets (ROAA) constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance. Tangible assets and tangible equity are calculated by subtracting goodwill and other intangible assets from total assets and total equity. Tangible common equity is calculated by subtracting preferred stock from tangible equity. Return on average tangible common equity is computed by dividing net income (loss) available to common stockholders, after adjustment for amortization of intangible assets, 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. 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 total revenue and subtracting adjusted noninterest expense. PTPP income ROAA is computed by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is computed by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is computed by dividing noninterest expense by total revenue. Adjusted efficiency ratio is computed by dividing adjusted noninterest expense by total revenue. Adjusted net income (loss) is calculated by adjusting net income (loss) for tax- effected noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is computed by dividing annualized adjusted net income by average assets. Adjusted net income (loss) available to common stockholders is computed by removing the impact of preferred stock redemptions from adjusted net income (loss). Adjusted diluted earnings per share is computed by dividing adjusted net income (loss) available to common stockholders by the weighted average diluted common shares outstanding. Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these measures to measures determined in accordance with GAAP are contained on slides 28-32 of this presentation.

28 NON-GAAP RECONCILIATION (Dollars in thousands) 2Q22 1Q22 4Q21 3Q21 2Q21 Net interest income $ 78,299 $ 76,441 $ 73,039 $ 62,976 $ 59,847 Noninterest income 7,186 5,910 5,605 5,519 3,443 Total revenue 85,485 82,351 78,644 68,495 63,290 Noninterest expense 48,612 46,596 58,872 37,811 39,832 Pre-tax pre-provision income(1) $ 36,873 $ 35,755 $ 19,772 $ 30,684 $ 23,458 Total revenue $ 85,485 $ 82,351 $ 78,644 $ 68,495 $ 63,290 Noninterest expense $ 48,612 $ 46,596 $ 58,872 $ 37,811 $ 39,832 Total noninterest expense adjustments (1,498) (52) (12,891) 2,937 1,413 Adjusted noninterest expense(1) 47,114 46,544 45,981 40,748 41,245 Adjusted pre-tax pre-provision income(1) $ 38,371 $ 35,807 $ 32,663 $ 27,747 $ 22,045 Average Assets $ 9,342,696 $ 9,392,305 $ 9,331,955 $ 8,141,613 $ 7,827,006 Pre-tax pre-provision ROAA(1) 1.58% 1.54% 0.84% 1.50% 1.20% Adjusted pre-tax pre-provision ROAA(1) 1.65% 1.55% 1.39% 1.35% 1.13% Efficiency Ratio(1) 56.87% 56.58% 74.86% 55.20% 62.94% Adjusted efficiency ratio(1) 55.11% 56.52% 58.47% 59.49% 65.17% (1) Non-GAAP measure

29 NON-GAAP RECONCILIATION (Dollars in thousands) 2Q22 1Q22 4Q21 3Q21 2Q21 Adjusted Noninterest Expense Total noninterest income $ 7,186 $ 5,910 $ 5,605 $ 5,519 $ 3,443 Total noninterest expense $ 48,612 $ 46,596 $ 58,872 $ 37,811 $ 39,832 Noninterest expense adjustments: Professional recoveries (fees) (455) 106 (642) 2,152 1,284 Merger-related costs - - (13,469) (1,000) (700) Noninterest expense adjustments before gain (loss) in alternative energy partnership investments (455) 106 (14,111) 1,152 584 (Loss) gain in alternative energy partnership investments (1,043) (158) 1,220 1,785 829 Total noninterest expense adjustments (1,498) (52) (12,891) 2,937 1,413 Adjusted noninterest expense(1) $ 47,114 $ 46,544 $ 45,981 $ 40,748 $ 41,245 Average assets $9,342,696 $9,392,305 $9,331,955 $8,141,613 $7,827,006 Noninterest expense / Average assets 2.09% 2.01% 2.50% 1.84% 2.04% Adjusted noninterest expense / Average assets(1) 2.02% 2.01% 1.95% 1.99% 2.11% (1) Non-GAAP measure

30 NON-GAAP RECONCILIATION (1) Non-GAAP measure (Dollars in thousands) 2Q22 1Q22 4Q21 3Q21 2Q21 Tangible Common Equity to Tangible Assets Ratio Total assets $ 9,502,113 $ 9,583,540 $ 9,393,743 $ 8,278,741 $ 8,027,413 Less: goodwill (95,127) (95,127) (94,301) (37,144) (37,144) Less: other intangible assets (4,677) (4,990) (6,411) (1,787) (2,069) Tangible assets(1) $ 9,402,309 $ 9,483,423 $ 9,293,031 $ 8,239,810 $ 7,988,200 Total stockholders' equity $ 949,130 $ 979,009 $ 1,065,290 $ 844,803 $ 829,362 Less: preferred stock - - (94,956) (94,956) (94,956) Total common stockholders' equity $ 949,130 $ 979,009 $ 970,334 $ 749,847 $ 734,406 Total stockholders' equity $ 949,130 $ 979,009 $ 1,065,290 $ 844,803 $ 829,362 Less: goodwill (95,127) (95,127) (94,301) (37,144) (37,144) Less: other intangible assets (4,677) (4,990) (6,411) (1,787) (2,069) Tangible equity(1) 849,326 878,892 964,578 805,872 790,149 Less: preferred stock - - (94,956) (94,956) (94,956) Tangible common equity(1) $ 849,326 $ 878,892 $ 869,622 $ 710,916 $ 695,193 Total stockholders' equity to total assets 9.99% 10.22% 11.34% 10.20% 10.33% Tangible equity to tangible assets(1) 9.03% 9.27% 10.38% 9.78% 9.89% Tangible common equity to tangible assets(1) 9.03% 9.27% 9.36% 8.63% 8.70% Common shares outstanding 59,985,736 62,077,312 62,188,206 50,321,096 50,313,228 Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321 Total common shares outstanding 60,463,057 62,554,633 62,665,527 50,798,417 50,790,549 Book value per common share $ 15.70 $ 15.65 $ 15.48 $ 14.76 $ 14.46 Tangible common equity per common share(1) $ 14.05 $ 14.05 $ 13.88 $ 13.99 $ 13.69

31 NON-GAAP RECONCILIATION (Dollars in thousands) 2Q22 1Q22 4Q21 3Q21 2Q21 Return on tangible common equity Average total stockholders' equity $ 969,885 $ 1,049,912 $ 1,035,782 $ 847,941 $ 814,973 Less: Average preferred stock - (75,965) (94,956) (94,956) (94,956) Average common stockholders' equity 969,885 973,947 940,826 752,985 720,017 Less: Average goodwill (95,127) (94,307) (86,911) (37,144) (37,144) Less: Average other intangible assets (4,869) (6,224) (4,994) (1,941) (2,224) Average tangible common equity(1) $ 869,889 $ 873,416 $ 848,921 $ 713,900 $ 680,649 Net income available to common stockholders $ 26,712 $ 43,345 $ 4,024 $ 21,443 $ 17,323 Add: Amortization of intangible assets 313 441 430 282 282 Less: Tax effect on amortization of intangible assets(2) (66) (93) (90) (59) (59) Net income available to common stockholders after the adjustments for intangible assets(1) $ 26,959 $ 43,693 $ 4,364 $ 21,666 $ 17,546 Return on average equity 11.05% 18.74% 2.20% 10.84% 9.38% Return on average tangible common equity(1) 12.43% 20.29% 2.04% 12.04% 10.34% (1) Non-GAAP measure (2) Adjustments shown net of a statutory Federal tax rate of 21%

32 NON-GAAP RECONCILIATION (1) Net income for the three months ended March 31, 2022 includes a $31.3 million pre-tax reversal of credit losses due to the recovery from the settlement of a previously charged-off loan; there is no similar recovery in any of the other periods presented. The Bank previously recognized a $35.1 million charge-off for this loan during the third quarter of 2019. (2) Net income for the three months ended December 31, 2021 includes an $11.3 million pre-tax charge for the expected lifetime credit losses for non-purchased credit deteriorated loans acquired in the PMB Acquisition; there is no similar charge in any of the other periods presented. (3) Tax impact of adjustments shown at a statutory tax rate of 29.6%. (4) Non-GAAP measure. (5) Represents adjusted net income available to common stockholders divided by average diluted common shares. (Dollars in thousands, except per share data) 2Q22 1Q22 4Q21 3Q21 2Q21 Adjusted net income Net income(1)(2) $ 26,712 $ 48,512 $ 5,751 $ 23,170 $ 19,050 Adjustments: Noninterest expense adjustments 1,498 52 12,891 (2,937) (1,413) Tax impact of adjustments above(3) (443) (15) (3,811) 868 418 Tax adjustment: tax impact from exercise of stock appreciation rights - - - - - Adjustments to net income 1,055 37 9,080 (2,069) (995) Adjusted net income(4) $ 27,767 $ 48,549 $ 14,831 $ 21,101 $ 18,055 Average Assets $ 9,342,696 $ 9,392,305 $ 9,331,955 $ 8,141,613 $ 7,827,006 ROAA 1.15% 2.09% 0.24% 1.13% 0.98% Adjusted ROAA(4) 1.19% 2.10% 0.63% 1.03% 0.93% Adjusted net income available to common stockholders Net income available to common stockholders $ 26,712 $ 43,345 $ 4,024 $ 21,443 $ 17,323 Adjustments to net income 1,055 37 9,080 (2,069) (995) Adjustments for impact of preferred stock redemption - 3,747 - - - Adjusted net income available to common stockholders(4) $ 27,767 $ 47,129 $ 13,104 $ 19,374 $ 16,328 Average diluted common shares 61,600,615 62,906,003 60,690,046 50,909,317 50,892,202 Diluted EPS $ 0.43 $ 0.69 $ 0.07 $ 0.42 $ 0.34 Adjusted diluted EPS(4)(5) $ 0.45 $ 0.75 $ 0.22 $ 0.38 $ 0.32

bancofcal.com 33



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



3 MacArthur Place,	Santa Ana,	California	92707
(Address of principal executive offices)			(Zip Code)


July 21, 2022			/s/ Lynn M. Hopkins
			Lynn M. Hopkins
			Executive Vice President and Chief Financial Officer