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8-K

BANC OF CALIFORNIA, INC. (BANC)

8-K 2023-04-20 For: 2023-04-20
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Added on April 10, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

in

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 20, 2023

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)

Maryland 001-35522 04-3639825
(State or other jurisdiction<br>of incorporation) (Commission File Number) (IRS Employer<br>Identification No.)
3 MacArthur Place, Santa Ana, California 92707
--- --- --- ---
(Address of principal executive offices) (Zip Code)

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

N/A

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

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

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

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

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

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share BANC New York Stock Exchange

Item 2.02 Results of Operations and Financial Condition.

On April 20, 2023, Banc of California, Inc. (the “Company”) issued a press release announcing 2023 first quarter financial results.

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

Item 7.01 Regulation FD Disclosure.

The Company will host a conference call to discuss its first quarter results at 10:00 A.M. Pacific Time on Thursday, April 20, 2023. Interested parties may attend the conference call by dialing (888) 317-6003, and referencing event code 4273553. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor, in addition to the slide presentation for investor review prior to the call. A copy of the presentation materials is attached to this report as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

99.1    Banc of California, Inc. Press Release dated April 20, 2023.

99.2    Banc of California, Inc. Earnings Conference Call Presentation Materials dated April 20, 2023.

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

SIGNATURES

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

BANC OF CALIFORNIA, INC.

April 20, 2023 /s/ Raymond Rindone
Raymond Rindone
Executive Vice President and Interim Chief Financial Officer and Chief Accounting Officer

3

Document

Banc of California Reports Solid Earnings and Strong Balance Sheet in First Quarter 2023 Financial Results

SANTA ANA, Calif., (April 20, 2023) — Banc of California, Inc. (NYSE: BANC) today reported net income of $20.3 million, or $0.34 per diluted common share, for the first quarter of 2023. This compares to net income of $21.5 million, or $0.36 per diluted common share for the fourth quarter of 2022. On an adjusted basis, net income was $21.7 million for the quarter, or $0.37 per diluted common share.(1) This compares to adjusted net income of $26.8 million, or $0.45 per diluted common share, for the fourth quarter of 2022, which excluded a pre-tax loss on sale of securities of $7.7 million.(1)

First quarter highlights:

•Diversified core deposit base with noninterest-bearing deposits representing 38% of average deposits and 36% at quarter end. Uninsured and uncollateralized deposits comprised 27% of total deposits.

•Significant available excess liquidity with immediately available on-balance sheet liquidity and unused borrowing capacity of $4.0 billion, including $1.0 billion in cash. Available liquidity was 2.2 times the level of uninsured and uncollateralized deposits.

•Low unrealized losses in the securities portfolio, with unrealized losses of $46.8 million on AFS securities of $958.4 million, representing 3.8% of CET1 capital(1).

•High capital ratios(2) projected to remain well above the regulatory thresholds for "well capitalized" banks, including an estimated 14.06% total risk-based capital ratio, 11.66% Tier 1 capital ratio, 11.66% CET1 capital ratio and 9.71% Tier 1 leverage ratio.

•Stable asset quality as total delinquent loans decreased 20%, or 25 bps, to 1.03% and classified assets also decreased 20%, or 33 bps, to 1.34% from the prior quarter. Total net charge-offs for the quarter were 0.22% of average loans. The ACL ratio remained relatively flat at 1.27% of total loans and 158% of nonperforming assets.

•Other performance highlights as follows:

◦Return on average assets of 0.88% and adjusted return on average assets of 0.94%(1)

◦Book value per share of $16.33, up from $16.26

◦Tangible common equity per share of $14.26, up from $14.19(1)

◦Repurchased $5.2 million of common stock through March 31 and $10.0 million total as of April 12

◦Increased the quarterly dividend 67% to $0.10 per share

◦Net deposit outflow in the first quarter of only 2%

Jared Wolff, President & CEO of Banc of California, commented, "The strength of the franchise and balance sheet we have built over the past four years has enabled us to effectively manage through the recent turmoil in the banking industry. As a true relationship-focused commercial bank, we are deeply connected to our clients through the expertise and services that we provide. As a result, our deposit base remained stable and resilient over the past several weeks with noninterest-bearing deposits averaging 38% for the quarter, and we experienced only a two-percent decline in the quarter in total deposits with seasonal outflows we typically see in the first quarter. We also had a net increase in commercial deposit accounts and our deposit pipeline of business accounts remains strong."

Mr. Wolff continued, “Additionally, the proactive steps we took over the past several quarters to manage and reposition our securities portfolio has resulted in low levels of unrealized losses despite the rapidly rising rate environment. With our high levels of capital and liquidity, alongside stable deposits, we opportunistically repurchased 1% of our shares through mid-April under our recently announced buy-back authorization. We remain focused on building shareholder value in the current environment by continuing to bring in new client relationships, optimizing liquidity sources, managing expenses, preserving credit quality, and effectively using our significant excess capital.”

Raymond Rindone, Interim Chief Financial Officer of Banc of California, said, “Our total available primary and secondary liquidity was just over $4.0 billion or 2.2 times our uninsured and uncollateralized deposits, with $1.0 billion of cash at quarter end. While the deposit base has been largely stable since the recent banking industry disruption, we increased our level of overnight borrowings and added some short-term brokered deposits to increase our liquidity. While these actions had an impact on our level of profitability and net interest margin in the first quarter, we believe it was prudent from a risk management perspective. The short-term nature of this additional liquidity gives us flexibility to quickly make adjustments in our liability mix as market conditions evolve. In addition, we saw positive credit quality trends in the loan portfolio as noted by the decline in delinquencies and classified assets during the first quarter.”

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

(2)Capital ratios are preliminary.

1

Income Statement Highlights

Three Months Ended
March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
( in thousands)
Total interest and dividend income $ 104,112 $ 95,973 $ 88,418 $ 84,269
Total interest expense 33,866 23,895 16,565 10,119 7,828
Net interest income 73,053 80,217 79,408 78,299 76,441
Net (loss) gain on sale of securities available for sale — (7,708) — — 16
Other noninterest income 7,859 6,281 5,681 7,186 5,894
Total noninterest income 7,859 (1,427) 5,681 7,186 5,910
Total revenue 80,912 78,790 85,089 85,485 82,351
Total noninterest expense 51,239 48,203 50,962 48,612 46,596
Pre-tax / pre-provision income(1) 29,673 30,587 34,127 36,873 35,755
Provision for (reversal of) credit losses 2,000 — — — (31,542)
Income tax expense 7,395 9,068 9,931 10,161 18,785
Net income $ 21,519 $ 24,196 $ 26,712 $ 48,512
Net income available to common stockholders(2) $ 21,519 $ 24,196 $ 26,712 $ 43,345

All values are in US Dollars.

(1)Non-GAAP Measure; refer to section 'Non-GAAP Measures'

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

Net interest income

Q1-2023 vs Q4-2022

Net interest income decreased $7.2 million to $73.1 million for the first quarter due to a higher average balance and cost of interest-bearing liabilities, partially offset by a higher average balance and yield on interest-earning assets. The net interest margin decreased 28 basis points to 3.41% for the first quarter as the average interest-earning assets yield increased 20 basis points and the cost of average total funding increased 51 basis points.

The yield on average interest-earning assets increased to 4.99% for the first quarter from 4.79% for the fourth quarter mainly due to higher yields on loans, securities and other interest-earning assets. The overall loan yield increased 15 basis points to 5.07% during the first quarter as a result of the impact of higher market interest rates and changes in portfolio mix. The loan yields include the impact of prepayment penalty fees, the net reversal or recapture of nonaccrual loan interest and accelerated discount accretion on the early payoff of purchased loans; these items increased the overall loan yield by 8 basis points in the first quarter and 6 basis points in the fourth quarter. The yield on securities increased 47 basis points to 4.66% due mostly to rate resets in the CLO portfolio and the positive impact of the investment portfolio repositioning during the fourth quarter to sell lower-yielding securities and reinvest the proceeds in higher-yielding securities.

The average cost of funds increased 51 basis points to 1.68% for the first quarter from 1.17% for the fourth quarter. This increase was due partially to the conservative strategy to hold extra liquidity toward the end of the quarter due to the operating environment. The increase in the average cost of funds was driven by the higher cost of average interest-bearing liabilities, which increased 66 basis points to 2.47% for the first quarter from 1.81% for the fourth quarter. The cost of average interest-bearing deposits increased 64 basis points to 1.98% for the first quarter from 1.34% for the fourth quarter while the cost of average FHLB advances and FRB borrowings increased 46 basis points to 3.67% for the first quarter from 3.21% for the fourth quarter. The increase in the cost of these funding sources was due to the increase in higher cost borrowed funds and the impact of higher market interest rates as the average effective Federal Funds rate increased 86 basis points from 3.65% in the fourth quarter to 4.51% in the first quarter.

Average noninterest-bearing deposits were $279.8 million lower in the first quarter compared to the fourth quarter, and average total deposits were $303.3 million lower for the linked quarter. Average noninterest-bearing deposits represented 38% of average total deposits for the first quarter, compared to 41% for the fourth quarter. The cost of average total deposits increased 43 basis points to 1.22% for the first quarter.

Average FHLB advances, FRB borrowings and other borrowings were $346.6 million higher in the first quarter compared to the fourth quarter as wholesale funding sources were strategically utilized to further improve liquidity and manage funding costs.

Provision for credit losses

Q1-2023 vs Q4-2022

The provision for credit losses was $2.0 million for the first quarter and included a $2.5 million provision for credit losses related to loans, partially offset by a $500 thousand reversal of credit losses related to lower unfunded commitments. There was no provision for credit losses for the fourth quarter. The increase in provision for credit losses was due to an increase in specific reserves and deterioration in the macroeconomic outlook, partially offset by net charge-off activity, changes in the portfolio mix and a decrease in total loan balances.

Noninterest income

Q1-2023 vs Q4-2022

Noninterest income increased $9.3 million to $7.9 million for the first quarter due mainly to the previous quarter including a $7.7 million loss on the sale of investment securities, coupled with higher other income of $1.7 million. Other income included $1.1 million in recoveries of certain charged-off loans acquired in a previous business combination and higher income from equity investments of $750 thousand.

Noninterest expense

Q1-2023 vs Q4-2022

Noninterest expense increased $3.0 million to $51.2 million for the first quarter compared to the fourth quarter. The increase was due to (i) higher salaries and employee benefits of $1.8 million including $1.0 million of severance costs related to expense management and higher payroll taxes normally incurred during the first quarter, (ii) higher net loss in alternative energy partnership investments of $1.0 million, (iii) higher professional fees of $879 thousand, due to a $1.2 million increase in indemnified legal fees (net of recoveries) offset by a $370 thousand decrease in other professional fees, and (iv) higher regulatory assessments of $297 thousand as the FDIC increased assessment rates in the first quarter. These increases were partially offset by lower other expenses of $994 thousand due to ongoing expense management. Professional fees included net indemnified legal expenses of $380 thousand in the first quarter compared to net indemnified legal recoveries of $869 thousand in the fourth quarter.

Adjusted noninterest expense, which represents total operating costs(1), increased $777 thousand to $49.2 million for the first quarter compared to $48.5 million for the prior quarter. This increase was due to higher salaries and benefits of $1.8 million and regulatory assessments of $297 thousand, partially offset by lower professional fees of $370 thousand, and other expenses of $994 thousand.

Income taxes

Q1-2023 vs Q4-2022

Income tax expense totaled $7.4 million for the first quarter resulting in an effective tax rate of 26.7% compared to $9.1 million for the fourth quarter and an effective tax rate of 29.6%. The effective tax rate for the full year 2023 is estimated to be 27% to 28%.

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

Balance Sheet

At March 31, 2023, total assets were $10.04 billion, which represented a linked-quarter increase of $841.9 million. The following table shows selected balance sheet line items as of the dates indicated:

Amount Change
March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022 Q1-23 vs. Q4-22 Q1-23 vs. Q1-22
( in thousands)
Securities held-to-maturity $ 328,641 $ 328,757 $ 329,272 $ 329,381 $ (121) $ (861)
Securities available-for-sale $ 868,297 $ 847,565 $ 865,435 $ 898,775 $ 90,130 $ 59,652
Loans held-for-investment $ 7,115,038 $ 7,289,320 $ 7,451,264 $ 7,451,573 $ (60,658) $ (397,193)
Total assets $ 9,197,016 $ 9,368,578 $ 9,502,113 $ 9,583,540 $ 841,885 $ 455,361
Noninterest-bearing deposits $ 2,809,328 $ 2,943,585 $ 2,826,599 $ 2,958,632 $ (302,712) $ (452,016)
Total deposits $ 7,120,921 $ 7,280,385 $ 7,558,683 $ 7,479,701 $ (168,947) $ (527,727)
Borrowings (1) $ 1,002,254 $ 1,011,767 $ 884,282 $ 1,020,842 $ 1,005,411 $ 986,823
Total liabilities $ 8,237,398 $ 8,416,588 $ 8,552,983 $ 8,604,531 $ 842,596 $ 475,463
Total equity $ 959,618 $ 951,990 $ 949,130 $ 979,009 $ (711) $ (20,102)

All values are in US Dollars.

(1)Represents FHLB advances and FRB borrowings, Other borrowings, and Long-term debt, net.

Investments

Securities held-to-maturity totaled $328.5 million at March 31, 2023 and included $214.3 million in agency securities and $114.2 million in municipal securities.

Securities available-for-sale increased $90.1 million during the first quarter to $958.4 million at March 31, 2023, due to purchases of $101.7 million, offset by principal payments of $6.2 million and an increase in unrealized net losses of $5.5 million. The unrealized net losses of $5.5 million were due to wider credit spreads within corporate debt securities, offset by improvement in the valuation of CLOs, agency CMOs, and non-agency residential MBS securities.

As of March 31, 2023, the securities available-for-sale portfolio included $479.6 million of CLOs, $177.1 million of agency securities, $176.0 million of corporate debt securities, $115.4 million of residential collateralized mortgage obligations, and $10.3 million of SBA securities. The CLO portfolio, which is comprised of AAA and AA-rated securities, represented 37% of the total securities portfolio and the carrying value included an unrealized net loss of $11.2 million at March 31, 2023, compared to 40% of the total securities portfolio and an unrealized net loss of $15.6 million at December 31, 2022.

As of March 31, 2023, securities held-to-maturity had aggregate unrealized net losses of $55.6 million, of which $15.5 million related to unrealized losses from the transfer of certain fixed-rate mortgage-backed securities and municipal securities from the available-for-sale portfolio to the held-to-maturity portfolio in the prior year. Securities available-for-sale had aggregate unrealized net losses of $46.8 million. These unrealized net losses related primarily to changes in overall interest rates and the resulting impact on valuations of mortgage-backed securities, collateralized mortgage obligations, municipal securities and collateralized loan obligations and credit spreads within corporate debt securities.

Loans

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

March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
( in thousands)
Composition of loans
Commercial real estate $ 1,259,651 $ 1,240,927 $ 1,204,414 $ 1,163,381
Multifamily 1,678,300 1,689,943 1,698,455 1,572,308 1,397,761
Construction 260,167 243,553 236,495 228,341 225,153
Commercial and industrial 1,150,416 1,243,452 1,227,054 1,273,307 1,224,908
Commercial and industrial - warehouse lending 636,731 602,508 766,362 1,160,157 1,574,549
SBA 65,040 68,137 85,674 92,235 133,116
Total commercial loans 5,092,931 5,107,244 5,254,967 5,530,762 5,718,868
Single-family residential mortgage 1,877,114 1,920,806 1,947,652 1,832,279 1,637,307
Other consumer 84,335 86,988 86,701 88,223 95,398
Total consumer loans 1,961,449 2,007,794 2,034,353 1,920,502 1,732,705
Total gross loans $ 7,115,038 $ 7,289,320 $ 7,451,264 $ 7,451,573
Composition percentage of loans
Commercial real estate 18.5 % 17.7 % 17.0 % 16.2 % 15.6 %
Multifamily 23.8 % 23.8 % 23.3 % 21.1 % 18.8 %
Construction 3.7 % 3.4 % 3.2 % 3.1 % 3.0 %
Commercial and industrial 16.3 % 17.5 % 16.8 % 17.1 % 16.4 %
Commercial and industrial - warehouse lending 9.0 % 8.4 % 10.6 % 15.5 % 21.1 %
SBA 0.9 % 1.0 % 1.2 % 1.2 % 1.8 %
Total commercial loans 72.2 % 71.8 % 72.1 % 74.2 % 76.7 %
Single-family residential mortgage 26.6 % 27.0 % 26.7 % 24.6 % 22.0 %
Other consumer 1.2 % 1.2 % 1.2 % 1.2 % 1.3 %
Total consumer loans 27.8 % 28.2 % 27.9 % 25.8 % 23.3 %
Total gross loans 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Total loans ended the first quarter of 2023 at $7.05 billion, down $60.7 million from $7.12 billion at December 31, 2022, due mostly to a $88.1 million decrease in commercial loans, a $43.7 million decrease in single-family residential (SFR) loans, and a $3.1 million decrease in SBA loans, partially offset by a $42.6 million increase in commercial real estate loans and a $34.2 million increase in warehouse lending balances. Loan fundings of $398.9 million in the first quarter included net warehouse advances of $34.2 million, offset by other loan paydowns and payoffs of $453.9 million.

Loan concentrations were well-diversified between products and industries. In particular, at March 31, 2023, the CRE portfolio of $1.30 billion had balances related to office loans of $359.8 million. This was comprised of general office of $273.7 million with a weighted average LTV of 54% and debt service coverage ratio of 1.6x and medical office of $86.1 million with a weighted average LTV of 58% and debt service coverage ratio of 1.7x.

Deposits

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

March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
( in thousands)
Composition of deposits
Noninterest-bearing checking $ 2,809,328 $ 2,943,585 $ 2,826,599 $ 2,958,632
Interest-bearing checking 1,862,003 1,947,247 1,921,816 2,359,857 2,395,329
Savings and money market 998,365 1,174,925 1,478,045 1,622,922 1,605,088
Non-brokered certificates of deposit 585,272 584,476 614,569 615,719 520,652
Brokered certificates of deposit 999,718 604,945 322,370 133,586 —
Total deposits $ 7,120,921 $ 7,280,385 $ 7,558,683 $ 7,479,701
Composition percentage of deposits
Noninterest-bearing checking 36.1 % 39.5 % 40.4 % 37.4 % 39.6 %
Interest-bearing checking 26.8 % 27.3 % 26.4 % 31.2 % 32.0 %
Savings and money market 14.3 % 16.5 % 20.4 % 21.5 % 21.4 %
Non-brokered certificates of deposit 8.4 % 8.2 % 8.4 % 8.1 % 7.0 %
Brokered certificates of deposit 14.4 % 8.5 % 4.4 % 1.8 % — %
Total deposits 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

All values are in US Dollars.

Total deposits decreased $168.9 million during the first quarter of 2023 to $6.95 billion at March 31, 2023, due mostly to lower noninterest-bearing checking balances of $302.7 million, savings and money market balances of $176.6 million and interest-bearing checking balances of $85.2 million, partially offset by higher certificate of deposit balances of $395.6 million. We continue to focus on growing granular relationship-based deposits and strategically replacing short-term wholesale funding as we actively manage our funding costs. We also executed a $300 million cash flow hedge during the quarter to further manage our interest rate risk and reduce our exposure to higher funding costs resulting from higher interest rates. Noninterest-bearing checking totaled $2.51 billion and represented 36% of total deposits at March 31, 2023, compared to $2.81 billion, or 40% of total deposits, at December 31, 2022.

Insured deposits of $4.77 billion and collateralized deposits of $314.6 million represented 73% of total deposits at March 31, 2023, compared to insured deposits of $3.93 billion and collateralized deposits of $343.9 million which represented 60% of total deposits at December 31, 2022.

Debt

In light of current volatility in the market, we have proactively taken a number of liquidity-enhancing measures, including additional advances from FHLB and draws on available FRB facilities. Advances from the FHLB and FRB borrowings increased $1.01 billion during the first quarter to $1.73 billion at March 31, 2023. FHLB advances included (i) $325.0 million of overnight borrowings and (ii) $811.0 million in term advances with a weighted average life of 3.6 years and weighted average interest rate of 3.04%. We also utilized available capacity from the FRB through $600.0 million in overnight borrowings.

Equity

During the first quarter, total stockholders’ equity decreased by $711 thousand to $958.9 million and tangible common equity(1) decreased by $250 thousand to $837.5 million at March 31, 2023. The decrease in total stockholders’ equity for the first quarter resulted from net income of $20.3 million, partially offset by accumulated other comprehensive net loss (net of tax) from unrealized losses of $6.1 million from the cash flow hedge and $3.7 million from investment securities available-for-sale, dividends to common stockholders of $5.7 million and repurchases of common stock of $5.2 million. Book value per common share increased $0.07 during the first quarter to $16.33 as of March 31, 2023. Tangible common equity per share(1) also increased $0.07 during the first quarter to $14.26 as of March 31, 2023 due mostly to net income, offset by accumulated other comprehensive losses and dividends.

(1)Non-GAAP measures; refer to section 'Non-GAAP Measures'

Capital and Liquidity

Capital ratios remain strong with total risk-based capital at 14.06% and a tier 1 leverage ratio of 9.71% at March 31, 2023. The following table sets forth our regulatory capital ratios as of the dates indicated:

March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio 14.06 % 14.21 % 13.86 % 13.69 % 13.79 %
Tier 1 risk-based capital ratio 11.66 % 11.80 % 11.43 % 11.29 % 11.40 %
Common equity tier 1 capital ratio 11.66 % 11.80 % 11.43 % 11.29 % 11.40 %
Tier 1 leverage ratio 9.71 % 9.70 % 9.52 % 9.58 % 9.72 %
Banc of California, NA
Total risk-based capital ratio 15.76 % 16.02 % 15.70 % 15.54 % 15.66 %
Tier 1 risk-based capital ratio 14.67 % 14.94 % 14.56 % 14.41 % 14.54 %
Common equity tier 1 capital ratio 14.67 % 14.94 % 14.56 % 14.41 % 14.54 %
Tier 1 leverage ratio(2) 12.22 % 12.25 % 12.12 % 12.27 % 12.38 %

(1)March 31, 2023 capital ratios are preliminary.

(2)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 6 basis points at March 31, 2023.

At March 31, 2023, total cash and cash equivalents was $1.01 billion, an increase of $782.1 million from December 31, 2022 as we deployed a conservative strategy to hold extra liquidity due to the current operating environment. Combined with unpledged securities available-for-sale of $724.2 million and total available borrowing capacity of $2.29 billion, total liquid assets and unused borrowing capacity of $4.03 billion exceeded total uninsured and uncollateralized deposits of $1.87 billion by 215%.

Credit Quality

March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Asset quality information and ratios ( in thousands)
Delinquent loans held-for-investment
30 to 89 days delinquent $ 46,666 $ 38,694 $ 38,285 $ 27,067
90+ days delinquent 37,060 44,554 18,843 23,905 33,930
Total delinquent loans $ 91,220 $ 57,537 $ 62,190 $ 60,997
Total delinquent loans to total loans 1.03 % 1.28 % 0.79 % 0.83 % 0.82 %
Non-performing assets, excluding loans held-for-sale
Non-accrual loans $ 55,251 $ 42,674 $ 44,443 $ 54,529
90+ days delinquent and still accruing loans — — — — —
Non-performing loans 56,545 55,251 42,674 44,443 54,529
Non-performing assets $ 55,251 $ 42,674 $ 44,443 $ 54,529
ALL to non-performing loans 149.54 % 155.58 % 216.63 % 211.04 % 170.97 %
Non-performing loans to total loans held-for-investment 0.80 % 0.78 % 0.59 % 0.60 % 0.73 %
Non-performing assets to total assets 0.56 % 0.60 % 0.46 % 0.47 % 0.57 %

All values are in US Dollars.

At March 31, 2023, total delinquent loans were $72.6 million, and included SFR mortgages of $40.9 million, or 56.3% of total delinquent loans. During the first quarter, delinquent loans decreased $18.6 million due to total additions of $27.8 million, offset by cures of $35.9 million and amortization and other removals of $10.5 million. Additions to delinquent loans included $14.7 million of SFR mortgages, $10.8 million of commercial and industrial loans, and $2.3 million of other loans.

At March 31, 2023, non-performing loans were $56.5 million, and included (i) commercial loans of $26.3 million, (ii) SFR mortgages of $24.6 million, and (iii) $5.4 million of commercial loans in a current payment status, however are on nonaccrual

based on other criteria. Excluding SFR mortgages, which are well secured with low loan-to-value ratios, non-performing loans decreased $2.2 million from the prior quarter.

Allowance for Credit Losses

Three Months Ended
March 31,2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
( in thousands)
Allowance for loan losses (ALL)
Balance at beginning of period $ 92,444 $ 93,793 $ 93,226 $ 92,584
Loans charged off (3,949) (7,641) (912) (494) (231)
Recoveries 49 57 63 1,561 32,215
Net (charge-offs) recoveries (3,900) (7,584) (849) 1,067 31,984
Provision for (reversal of) loan losses 2,500 1,100 (500) (500) (31,342)
Balance at end of period $ 85,960 $ 92,444 $ 93,793 $ 93,226
Reserve for unfunded loan commitments (RUC)
Balance at beginning of period $ 6,405 $ 5,905 $ 5,405 $ 5,605
(Reversal of) provision for credit losses (500) (1,100) 500 500 (200)
Balance at end of period 4,805 5,305 6,405 5,905 5,405
Allowance for credit losses (ACL) $ 91,265 $ 98,849 $ 99,698 $ 98,631
ALL to total loans 1.20 % 1.21 % 1.27 % 1.26 % 1.25 %
ACL to total loans 1.27 % 1.28 % 1.36 % 1.34 % 1.32 %
ACL to NPLs 158.04 % 165.18 % 231.64 % 224.33 % 180.88 %
Annualized net loan charge-offs (recoveries) to average total loans held-for-investment 0.22 % 0.42 % 0.05 % (0.06) % (1.76) %

All values are in US Dollars.

The allowance for credit losses, which includes the reserve for unfunded loan commitments, totaled $89.4 million, or 1.27% of total loans, at March 31, 2023, compared to $91.3 million, or 1.28% of total loans, at December 31, 2022. ACL decreased by $1.9 million due to: (i) net charge offs of $3.9 million, of which $3.2 million related to commercial and industrial loans, (ii) $3.2 million from lower loan balances and changes in portfolio mix and (iii) $500 thousand lower RUC from lower unfunded commitments, partially offset by (iv) new specific reserves totaling $3.2 million, and (v) a $2.5 million increase in general reserves due mainly to the impact of the deterioration in the macroeconomic outlook. The ACL coverage of non-performing loans was 158% at March 31, 2023 compared to 165% at December 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 March 2023. The published forecasts consider the Federal Reserve's monetary policy, labor market constraints, inflation levels, global oil prices and changes in real estate values, among other factors.

Conference Call

The Company will host a conference call to discuss its first quarter 2023 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 20, 2023. Interested parties are welcome to attend the conference call by dialing (888) 317-6003, and referencing event code 4273553. 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 2649988.

About Banc of California, Inc.

Banc of California, Inc. (NYSE: BANC) is a bank holding company with $10.04 billion in assets at March 31, 2023 and one wholly-owned banking subsidiary, Banc of California, N.A. (the Bank). The Bank has 34 offices including 28 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, and full stack payment processing solution through our subsidiary Deepstack Technologies. 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. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (the Company) with the Securities and Exchange Commission (SEC). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

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

banks on general investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; and (xix) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in this press release and from time to time in other documents that we file with or furnish to the SEC.

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

Banc of California, Inc.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)

March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
ASSETS
Cash and cash equivalents $ 1,010,951 $ 228,896 $ 256,058 $ 243,064 $ 254,241
Securities held-to-maturity 328,520 328,641 328,757 329,272 329,381
Securities available-for-sale 958,427 868,297 847,565 865,435 898,775
Loans 7,054,380 7,115,038 7,289,320 7,451,264 7,451,573
Allowance for loan losses (84,560) (85,960) (92,444) (93,793) (93,226)
Federal Home Loan Bank and other bank stock 70,334 57,092 54,428 51,489 51,456
Premises and equipment, net 108,087 107,345 107,728 108,523 109,593
Goodwill 114,312 114,312 114,312 95,127 95,127
Other intangible assets, net 7,065 7,526 8,081 4,677 4,990
Deferred income tax, net 54,450 50,518 56,376 54,455 51,516
Bank owned life insurance investment 128,022 127,122 126,199 125,326 124,516
Other assets 288,913 278,189 272,198 267,274 305,598
Total assets $ 10,038,901 $ 9,197,016 $ 9,368,578 $ 9,502,113 $ 9,583,540
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits $ 2,506,616 $ 2,809,328 $ 2,943,585 $ 2,826,599 $ 2,958,632
Interest-bearing deposits 4,445,358 4,311,593 4,336,800 4,732,084 4,521,069
Total deposits 6,951,974 7,120,921 7,280,385 7,558,683 7,479,701
FHLB advances and FRB borrowings 1,732,670 727,348 727,021 511,695 556,374
Other borrowings — — 10,000 98,000 190,000
Long-term debt, net 274,995 274,906 274,746 274,587 274,468
Accrued expenses and other liabilities 120,355 114,223 124,436 110,018 103,988
Total liabilities 9,079,994 8,237,398 8,416,588 8,552,983 8,604,531
Commitments and contingent liabilities
Common stock 653 651 652 647 646
Common stock, class B non-voting non-convertible 5 5 5 5 5
Additional paid-in capital 866,306 866,478 864,806 856,079 855,198
Retained earnings 263,524 248,988 231,084 210,471 187,457
Treasury stock (121,092) (115,907) (96,978) (84,013) (45,125)
Accumulated other comprehensive loss, net (50,489) (40,597) (47,579) (34,059) (19,172)
Total stockholders’ equity 958,907 959,618 951,990 949,130 979,009
Total liabilities and stockholders’ equity $ 10,038,901 $ 9,197,016 $ 9,368,578 $ 9,502,113 $ 9,583,540

Banc of California, Inc.

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except per share data)

Three Months Ended
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Interest and dividend income
Loans, including fees $ 87,418 $ 88,717 $ 83,699 $ 78,895 $ 76,234
Securities 14,909 12,905 10,189 8,124 7,309
Other interest-earning assets 4,592 2,490 2,085 1,399 726
Total interest and dividend income 106,919 104,112 95,973 88,418 84,269
Interest expense
Deposits 20,527 14,278 8,987 3,180 1,388
FHLB advances and FRB borrowings 9,648 5,528 3,558 3,114 2,953
Other interest-bearing liabilities 3,691 4,089 4,020 3,825 3,487
Total interest expense 33,866 23,895 16,565 10,119 7,828
Net interest income 73,053 80,217 79,408 78,299 76,441
Provision for (reversal of) credit losses 2,000 — — — (31,542)
Net interest income after provision for (reversal of) credit losses 71,053 80,217 79,408 78,299 107,983
Noninterest income
Customer service fees 1,979 2,066 2,462 2,578 2,434
Loan servicing income 547 561 636 109 212
Income from bank owned life insurance 900 923 873 810 796
Net (loss) gain on sale of securities available for sale — (7,708) — — 16
All other income 4,433 2,731 1,710 3,689 2,452
Total noninterest income 7,859 (1,427) 5,681 7,186 5,910
Noninterest expense
Salaries and employee benefits 29,656 27,812 27,997 28,264 28,987
Occupancy and equipment 5,526 5,740 5,796 5,741 5,637
Professional fees 4,072 3,193 3,957 4,001 2,839
Data processing 1,563 1,744 1,699 1,782 1,828
Regulatory assessments 1,202 905 925 1,021 775
Software and technology 3,274 3,197 3,659 2,747 2,700
Reversal of loan repurchase reserves (11) (17) (26) (490) (471)
Amortization of intangible assets 461 555 396 313 441
Acquisition, integration and transaction costs — — 2,080 — —
All other expense 3,878 4,466 3,975 4,190 3,702
Total noninterest expense before loss (gain) in alternative energy partnership investments 49,621 47,595 50,458 47,569 46,438
Loss in alternative energy partnership investments 1,618 608 504 1,043 158
Total noninterest expense 51,239 48,203 50,962 48,612 46,596
Income before income taxes 27,673 30,587 34,127 36,873 67,297
Income tax expense 7,395 9,068 9,931 10,161 18,785
Net income 20,278 21,519 24,196 26,712 48,512
Preferred stock dividends — — — — 1,420
Impact of preferred stock redemption — — — — 3,747
Net income available to common stockholders $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 43,345
Earnings per common share:
Basic $ 0.34 $ 0.36 $ 0.40 $ 0.44 $ 0.69
Diluted $ 0.34 $ 0.36 $ 0.40 $ 0.43 $ 0.69
Weighted average number of common shares outstanding
Basic 59,014,187 59,252,995 60,044,403 61,350,802 62,606,450
Diluted 59,206,619 59,725,283 60,492,460 61,600,615 62,906,003
Dividends declared per common share $ 0.10 $ 0.06 $ 0.06 $ 0.06 $ 0.06

Banc of California, Inc.

Selected Financial Data

(Unaudited)

Three Months Ended
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Profitability and other ratios of consolidated operations
Return on average assets (ROAA)(1) 0.88 % 0.92 % 1.02 % 1.15 % 2.09 %
Adjusted ROAA(1)(2) 0.94 % 1.15 % 1.13 % 1.19 % 2.10 %
Return on average equity(1) 8.18 % 8.63 % 9.99 % 11.05 % 18.74 %
Return on average tangible common equity(1)(2) 9.46 % 10.02 % 11.33 % 12.42 % 20.27 %
Pre-tax pre-provision income ROAA(1)(2) 1.29 % 1.31 % 1.44 % 1.58 % 1.54 %
Adjusted pre-tax pre-provision income ROAA(1)(2) 1.38 % 1.63 % 1.59 % 1.65 % 1.55 %
Dividend payout ratio(3) 29.41 % 16.67 % 15.00 % 13.64 % 8.70 %
Average loan yield 5.07 % 4.92 % 4.54 % 4.35 % 4.26 %
Average cost of interest-bearing deposits 1.98 % 1.34 % 0.77 % 0.28 % 0.12 %
Average cost of total deposits 1.22 % 0.79 % 0.47 % 0.17 % 0.08 %
Net interest spread 2.52 % 2.98 % 3.13 % 3.30 % 3.29 %
Net interest margin(1) 3.41 % 3.69 % 3.58 % 3.58 % 3.51 %
Noninterest income to total revenue(4) 9.71 % (1.81) % 6.68 % 8.41 % 7.18 %
Adjusted noninterest income to adjusted total revenue(2)(4) 9.71 % 7.26 % 6.68 % 8.41 % 7.16 %
Noninterest expense to average total assets(1) 2.23 % 2.07 % 2.15 % 2.09 % 2.01 %
Adjusted noninterest expense to average total assets(1)(2) 2.14 % 2.08 % 2.00 % 2.02 % 2.01 %
Efficiency ratio(2)(5) 63.33 % 61.18 % 59.89 % 56.87 % 56.58 %
Adjusted efficiency ratio(2)(6) 60.86 % 56.03 % 55.66 % 55.11 % 56.53 %
Average loans to average deposits 102.35 % 100.25 % 97.34 % 98.21 % 98.28 %
Average securities to average total assets 13.93 % 13.19 % 12.70 % 13.02 % 13.76 %
Average stockholders’ equity to average total assets 10.78 % 10.69 % 10.21 % 10.38 % 11.18 %

(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 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
March 31, 2023 December 31, 2022 September 30, 2022
Average Yield Average Yield Average Yield
Balance Interest / Cost Balance Interest / Cost Balance Interest / Cost
Interest-earning assets
Commercial real estate, multifamily, and construction $ 3,242,780 $ 37,066 4.64 % $ 3,223,614 $ 36,214 4.46 % $ 3,142,772 $ 34,269 4.33 %
Commercial and industrial and SBA 1,765,299 29,544 6.79 % 1,909,144 31,492 6.54 % 2,151,511 29,296 5.40 %
SFR mortgage 1,897,763 19,441 4.15 % 1,932,397 19,661 4.04 % 1,927,694 18,699 3.85 %
Other consumer 84,786 1,308 6.26 % 86,273 1,335 6.14 % 87,335 1,331 6.05 %
Loans held-for-sale 4,330 59 5.53 % 4,352 15 1.37 % 4,207 104 9.81 %
Gross loans and leases 6,994,958 87,418 5.07 % 7,155,780 88,717 4.92 % 7,313,519 83,699 4.54 %
Securities 1,297,640 14,909 4.66 % 1,221,147 12,905 4.19 % 1,194,942 10,189 3.38 %
Other interest-earning assets 389,051 4,592 4.79 % 239,336 2,490 4.13 % 292,819 2,085 2.82 %
Total interest-earning assets 8,681,649 106,919 4.99 % 8,616,263 104,112 4.79 % 8,801,280 95,973 4.33 %
Allowance for loan losses (84,267) (91,606) (93,517)
BOLI and noninterest-earning assets 719,827 732,654 700,977
Total assets $ 9,317,209 $ 9,257,311 $ 9,408,740
Interest-bearing liabilities
Interest-bearing checking $ 1,951,618 $ 8,514 1.77 % $ 1,854,333 $ 4,998 1.07 % $ 2,285,071 $ 3,880 0.67 %
Savings and money market 1,070,911 2,001 0.76 % 1,308,383 2,379 0.72 % 1,536,438 2,236 0.58 %
Certificates of deposit 1,189,658 10,012 3.41 % 1,072,953 6,901 2.55 % 832,506 2,871 1.37 %
Total interest-bearing deposits 4,212,187 20,527 1.98 % 4,235,669 14,278 1.34 % 4,654,015 8,987 0.77 %
FHLB advances and FRB borrowings 1,067,125 9,648 3.67 % 684,177 5,528 3.21 % 482,842 3,558 2.92 %
Other borrowings 4,773 57 4.84 % 41,075 414 4.00 % 70,431 412 2.32 %
Long-term debt 274,939 3,634 5.36 % 274,812 3,675 5.31 % 274,665 3,608 5.21 %
Total interest-bearing liabilities 5,559,024 33,866 2.47 % 5,235,733 23,895 1.81 % 5,481,953 16,565 1.20 %
Noninterest-bearing deposits 2,617,973 2,897,755 2,855,220
Noninterest-bearing liabilities 135,418 134,409 110,761
Total liabilities 8,312,415 8,267,897 8,447,934
Total stockholders’ equity 1,004,794 989,414 960,806
Total liabilities and stockholders’ equity $ 9,317,209 $ 9,257,311 $ 9,408,740
Net interest income/spread $ 73,053 2.52 % $ 80,217 2.98 % $ 79,408 3.13 %
Net interest margin 3.41 % 3.69 % 3.58 %
Ratio of interest-earning assets to interest-bearing liabilities 156 % 165 % 161 %
Total deposits $ 6,830,160 $ 20,527 1.22 % $ 7,133,424 $ 14,278 0.79 % $ 7,509,235 $ 8,987 0.47 %
Total funding (1) $ 8,176,997 $ 33,866 1.68 % $ 8,133,488 $ 23,895 1.17 % $ 8,337,173 $ 16,565 0.79 %

(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
June 30, 2022 March 31, 2022
Average Yield Average Yield
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 %
Commercial and industrial and SBA 2,527,506 29,334 4.66 % 2,748,541 30,043 4.43 %
SFR mortgage 1,755,719 16,795 3.84 % 1,562,478 13,273 3.45 %
Other consumer 93,160 1,450 6.24 % 97,516 1,523 6.33 %
Loans held-for-sale 3,618 26 2.88 % 3,428 28 3.31 %
Gross loans and leases 7,269,655 78,895 4.35 % 7,262,774 76,234 4.26 %
Securities 1,216,612 8,124 2.68 % 1,292,079 7,309 2.29 %
Other interest-earning assets 295,715 1,399 1.90 % 265,339 726 1.11 %
Total interest-earning assets 8,781,982 88,418 4.04 % 8,820,192 84,269 3.87 %
Allowance for loan losses (94,217) (92,618)
BOLI and noninterest-earning assets 654,931 664,731
Total assets $ 9,342,696 $ 9,392,305
Interest-bearing liabilities
Interest-bearing checking $ 2,363,233 $ 1,457 0.25 % $ 2,409,262 $ 641 0.11 %
Savings and money market 1,598,663 860 0.22 % 1,673,244 510 0.12 %
Certificates of deposit 631,415 863 0.55 % 508,244 237 0.19 %
Total interest-bearing deposits 4,593,311 3,180 0.28 % 4,590,750 1,388 0.12 %
FHLB advances 485,629 3,114 2.57 % 459,749 2,953 2.60 %
Other borrowings 117,688 325 1.11 % 116,495 55 0.19 %
Long-term debt 274,515 3,500 5.11 % 274,417 3,432 5.07 %
Total interest-bearing liabilities 5,471,143 10,119 0.74 % 5,441,411 7,828 0.58 %
Noninterest-bearing deposits 2,804,877 2,795,633
Noninterest-bearing liabilities 96,791 105,349
Total liabilities 8,372,811 8,342,393
Total stockholders’ equity 969,885 1,049,912
Total liabilities and stockholders’ equity $ 9,342,696 $ 9,392,305
Net interest income/spread $ 78,299 3.30 % $ 76,441 3.29 %
Net interest margin 3.58 % 3.51 %
Ratio of interest-earning assets to interest-bearing liabilities 161 % 162 %
Total deposits $ 7,398,188 $ 3,180 0.17 % $ 7,386,383 $ 1,388 0.08 %
Total funding (1) $ 8,276,020 $ 10,119 0.49 % $ 8,237,044 $ 7,828 0.39 %

(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.

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 common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest income to adjusted total revenue, adjusted noninterest expense to average total assets, pre-tax pre-provision (PTPP) income, adjusted PTPP income, PTPP income ROAA, adjusted PTPP income ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS), adjusted return on average assets (ROAA), adjusted common equity tier 1 (CET 1) and adjusted CET1 ratios 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, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net income 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 net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense. PTPP income ROAA is calculated by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is calculated by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is calculated by dividing noninterest expense by total revenue. Adjusted efficiency ratio is calculated by dividing adjusted noninterest expense by adjusted total revenue.

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

Common equity tier 1 and the common equity tier 1 ratio are defined by regulatory capital rules. Adjusted CET 1 is calculated by subtracting net unrealized losses on securities from CET 1 capital. Adjusted CET 1 ratio is calculated by dividing adjusted CET 1 by total risk-weighted assets. Adjusted CET 1 ratio, assuming AFS losses realized, is calculated by dividing CET 1 capital amount after adjusting for the net unrealized losses on AFS securities, by total risk-weighted assets. Adjusted CET 1 ratio, assuming HTM losses realized, is calculated by dividing CET 1 capital after adjusting for the net unrealized losses on HTM securities, by total risk-weighted assets. Adjusted CET 1 and adjusted CET 1 ratios are provided to reflect management’s assessment of capital impacts from net unrealized losses on securities. Capital amounts and ratios as of March 31, 2023 are preliminary.

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)

March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Tangible common equity, and tangible common equity to tangible assets ratio
Total assets $ 10,038,901 $ 9,197,016 $ 9,368,578 $ 9,502,113 $ 9,583,540
Less goodwill (114,312) (114,312) (114,312) (95,127) (95,127)
Less other intangible assets (7,065) (7,526) (8,081) (4,677) (4,990)
Tangible assets(1) $ 9,917,524 $ 9,075,178 $ 9,246,185 $ 9,402,309 $ 9,483,423
Total stockholders' equity $ 958,907 $ 959,618 $ 951,990 $ 949,130 $ 979,009
Less goodwill (114,312) (114,312) (114,312) (95,127) (95,127)
Less other intangible assets (7,065) (7,526) (8,081) (4,677) (4,990)
Tangible common equity(1) 837,530 837,780 829,597 849,326 878,892
Total stockholders' equity to total assets 9.55 % 10.43 % 10.16 % 9.99 % 10.22 %
Tangible common equity to tangible assets(1) 8.44 % 9.23 % 8.97 % 9.03 % 9.27 %
Common shares outstanding 58,237,303 58,544,534 59,679,558 59,985,736 62,077,312
Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321
Total common shares outstanding 58,714,624 59,021,855 60,156,879 60,463,057 62,554,633
Book value per common share $ 16.33 $ 16.26 $ 15.83 $ 15.70 $ 15.65
Tangible common equity per share(1) $ 14.26 $ 14.19 $ 13.79 $ 14.05 $ 14.05

(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
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Return on tangible common equity
Average total stockholders' equity $ 1,004,794 $ 989,414 $ 960,806 $ 969,885 $ 1,049,912
Less average preferred stock — — — — (75,965)
Average common stockholders' equity 1,004,794 989,414 960,806 969,885 973,947
Less average goodwill (114,312) (114,312) (98,916) (95,127) (94,307)
Less average other intangible assets (7,355) (7,869) (4,570) (4,869) (6,224)
Average tangible common equity(1) $ 883,127 $ 867,233 $ 857,320 $ 869,889 $ 873,416
Net income available to common stockholders $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 43,345
Add amortization of intangible assets 461 555 396 313 441
Less tax effect on amortization of intangible assets(2) (136) (164) (117) (93) (130)
Net income available to common stockholders after adjustments for intangible assets(1) $ 20,603 $ 21,910 $ 24,475 $ 26,932 $ 43,656
Return on average equity 8.18 % 8.63 % 9.99 % 11.05 % 18.74 %
Return on average tangible common equity(1) 9.46 % 10.02 % 11.33 % 12.42 % 20.27 %

(1)Non-GAAP measure.

(2)Adjustments shown at a statutory tax rate of 29.6%.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Adjusted noninterest income
Total noninterest income $ 7,859 $ (1,427) $ 5,681 $ 7,186 $ 5,910
Noninterest income adjustments:
Net loss (gain) on sale of securities available for sale — 7,708 — — (16)
Adjusted noninterest income(1) $ 7,859 $ 6,281 $ 5,681 $ 7,186 $ 5,894
Adjusted noninterest expense
Total noninterest expense $ 51,239 $ 48,203 $ 50,962 $ 48,612 $ 46,596
Noninterest expense adjustments:
Indemnified legal recoveries (fees) (380) 869 (1,017) (455) 106
Acquisition, integration and transaction costs — — (2,080) — —
Noninterest expense adjustments before (loss) gain in alternative energy partnership investments (380) 869 (3,097) (455) 106
(Loss) gain in alternative energy partnership investments (1,618) (608) (504) (1,043) (158)
Total noninterest expense adjustments (1,998) 261 (3,601) (1,498) (52)
Adjusted noninterest expense(1) $ 49,241 $ 48,464 $ 47,361 $ 47,114 $ 46,544
Average assets $ 9,317,209 $ 9,257,311 $ 9,408,740 $ 9,342,696 $ 9,392,305
Noninterest income to total revenue(1) 9.71 % (1.81) % 6.68 % 8.41 % 7.18 %
Adjusted noninterest income to adjusted total revenue(1) 9.71 % 7.26 % 6.68 % 8.41 % 7.16 %
Noninterest expense to average total assets(2) 2.23 % 2.07 % 2.15 % 2.09 % 2.01 %
Adjusted noninterest expense to average total assets(1)(2) 2.14 % 2.08 % 2.00 % 2.02 % 2.01 %

(1)Non-GAAP measure.

(2)Ratio presented on an annualized basis.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Adjusted pre-tax pre-provision income
Net interest income $ 73,053 $ 80,217 $ 79,408 $ 78,299 $ 76,441
Noninterest income 7,859 (1,427) 5,681 7,186 5,910
Total revenue 80,912 78,790 85,089 85,485 82,351
Noninterest expense 51,239 48,203 50,962 48,612 46,596
Pre-tax pre-provision income(1) $ 29,673 $ 30,587 $ 34,127 $ 36,873 $ 35,755
Total revenue $ 80,912 $ 78,790 $ 85,089 $ 85,485 $ 82,351
Total noninterest income adjustments — 7,708 — — (16)
Adjusted total revenue(1) 80,912 86,498 85,089 85,485 82,335
Noninterest expense 51,239 48,203 50,962 48,612 46,596
Total noninterest expense adjustments (1,998) 261 (3,601) (1,498) (52)
Adjusted noninterest expense(1) 49,241 48,464 47,361 47,114 46,544
Adjusted pre-tax pre-provision income(1) $ 31,671 $ 38,034 $ 37,728 $ 38,371 $ 35,791
Average assets $ 9,317,209 $ 9,257,311 $ 9,408,740 $ 9,342,696 $ 9,392,305
Pre-tax pre-provision income ROAA(1)(2) 1.29 % 1.31 % 1.44 % 1.58 % 1.54 %
Adjusted pre-tax pre-provision income ROAA(1)(2) 1.38 % 1.63 % 1.59 % 1.65 % 1.55 %
Efficiency ratio(1)(2) 63.33 % 61.18 % 59.89 % 56.87 % 56.58 %
Adjusted efficiency ratio(1)(2) 60.86 % 56.03 % 55.66 % 55.11 % 56.53 %

(1)Non-GAAP measure.

(2)Ratio presented on an annualized basis.

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended
March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022 March 31,<br>2022
Adjusted net income
Net income (1)(2)(3) $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 48,512
Adjustments:
Noninterest income adjustments — 7,708 — — (16)
Noninterest expense adjustments 1,998 (261) 3,601 1,498 52
Tax impact of adjustments above(3) (591) (2,202) (1,065) (443) (11)
Adjustments to net income 1,407 5,245 2,536 1,055 25
Adjusted net income(2)(4) $ 21,685 $ 26,764 $ 26,732 $ 27,767 $ 48,537
Average assets $ 9,317,209 $ 9,257,311 $ 9,408,740 $ 9,342,696 $ 9,392,305
ROAA(5) 0.88 % 0.92 % 1.02 % 1.15 % 2.09 %
Adjusted ROAA(4)(5) 0.94 % 1.15 % 1.13 % 1.19 % 2.10 %
Adjusted net income available to common stockholders
Net income available to common stockholders $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 43,345
Adjustments to net income 1,407 5,245 2,536 1,055 25
Adjustments for impact of preferred stock redemption — — — — 3,747
Adjusted net income available to common stockholders(4) $ 21,685 $ 26,764 $ 26,732 $ 27,767 $ 47,117
Average diluted common shares 59,206,619 59,725,283 60,492,460 61,600,615 62,906,003
Diluted EPS $ 0.34 $ 0.36 $ 0.40 $ 0.43 $ 0.69
Adjusted diluted EPS(4)(6) $ 0.37 $ 0.45 $ 0.44 $ 0.45 $ 0.75

(1)Net income for the three months ended December 31, 2022 includes a $7.7 million pre-tax loss on sale of securities.

(2)Net income and adjusted 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.

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

(4)Non-GAAP measure.

(5)Ratio presented on an annualized basis.

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

Banc of California, Inc.

Consolidated Operations

Non-GAAP Measures, Continued

(Dollars in thousands)

(Unaudited)

March 31,<br>2023
Adjusted Common Equity Tier 1 (CET 1) capital(1)
CET 1 capital(2) $ 893,648
Less unrealized loss on AFS securities, net of tax (33,687)
Less unrealized loss on HTM securities, net of tax (40,036)
Adjusted CET 1 capital(3) $ 819,925
Unrealized loss on AFS securities, net of tax, to CET 1 capital 3.77 %
Unrealized loss on HTM securities, net of tax, to CET 1 capital 4.48 %
Total risk-weighted assets(2) $ 7,665,451
CET 1 ratio(2) 11.66 %
Adjusted CET 1 ratio, assuming AFS losses realized(3) 11.22 %
Adjusted CET 1 ratio, assuming AFS and HTM losses realized(3) 10.70 %

(1)March 31, 2023 presented to reflect management’s assessment of capital impact from net unrealized losses on securities. Tax rate of 28.0% used for calculation purposes.

(2)March 31, 2023 capital and capital ratios are preliminary.

(3)Non-GAAP measure.

22

banc1q23investordeckvfin

www.bancofcal.com Investor Presentation 2023 First Quarter Earnings

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

3 (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) 1Q23 capital ratios are preliminary ($ in Thousands Except Per Share Data) 1Q23 4Q22 1Q22 Net interest income $ 73,053 $ 80,217 $ 76,441 Provision for (reversal of) credit losses $ 2,000 - $ (31,542) Net income $ 20,278 $ 21,519 $ 48,512 Net income available to common stockholders $ 20,278 $ 21,519 $ 43,345 Earnings per diluted common share $ 0.34 $ 0.36 $ 0.69 Adjusted net income available to common stockholders (1) $ 21,685 $ 26,764 $ 47,117 Adjusted earnings per diluted common share (1) $ 0.37 $ 0.45 $ 0.75 Pre-tax pre-provision (PTPP) income (1) $ 29,673 $ 30,587 $ 35,755 Adjusted PTPP income (1) $ 31,671 $ 38,034 $ 35,791 Return on average assets (ROAA) 0.88% 0.92% 2.09% Adjusted ROAA (1) 0.94% 1.15% 2.10% PTPP ROAA (1) 1.29% 1.31% 1.54% Adjusted PTPP ROAA (1) 1.38% 1.63% 1.55% Average assets $ 9,317,209 $ 9,257,311 $ 9,392,305 Net interest margin 3.41% 3.69% 3.51% Allowance for credit losses coverage ratio 1.27% 1.28% 1.32% NIE / Average assets (1) 2.23% 2.07% 2.01% Adjusted NIE / Average assets (1) 2.14% 2.08% 2.01% Common equity tier 1 (2) 11.66% 11.80% 11.40% Tangible common equity per share (1) $ 14.26 $ 14.19 $ 14.05 Average Noninterest-bearing deposits as % of average deposits 38.3% 40.6% 37.8% FIRST QUARTER 2023 RESULTS

4 1Q23 Summary Business model built for all cycles, with a focus on high-touch commercial relationships and value-added services and solutions to drive noninterest-bearing deposit growth Valuable Deposit Franchise • Average noninterest-bearing (NIB) deposit ratio at 38% of total deposits and 36% at quarter-end • 7% annualized new commercial NIB account growth with a robust pipeline of new clients • Total net core deposit flows were positive $90 million in the second half of March(1) High Liquidity Levels and Low Unrealized Losses • Total available liquidity of $4.0 billion, including $1.0 billion of cash, which was 2.2x uninsured and uncollateralized deposits • Uninsured and uncollateralized deposits were 27% of total deposits • Low unrealized losses of $47 million on AFS securities of $958 million Strong Capital Base(2) • Total Risk-Based Capital ratio of 14.1%, CET1 ratio of 11.7% and Leverage ratio of 9.7% • Repurchased $10 million of the current $35 million buyback authorization through April 12 • Increased the dividend 67% to $0.10 per share • KBRA confirmed all ratings and stable outlook on March 20 Resilient Earnings Power • Adjusted ROAA of 94 bps and adjusted EPS of $0.37(3) • Continued growth in Tangible Book Value Per Share(3) to $14.26 Healthy Asset Quality • Delinquencies down 25 bps or 20% to 1.03% • Classified asset ratio down 33 bps or 20% to 1.34% • ACL coverage ratio remained relatively flat at 1.27% (1) Excludes brokered deposits (2) 1Q23 capital ratios are preliminary (3) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation STRONG DEPOSIT BASE, LIQUIDITY AND CAPITAL

5 Continued growth in number of commercial deposit accounts and new relationships NIB commercial deposits comprise 87% of total NIB deposits(1) ($ in millions) 9,920 10,945 11,270 11,444 11,644 14,244 14,292 14,300 14,541 14,580 14,835 $87 2019Y $1,009 $220 2020Y $1,262 $181 1Q21 $1,394 $204 2Q21 $1,595 $188 3Q21 $2,193 $238 4Q21 $2,263 $307 1Q22 $2,165 $350 2Q22 $2,155 $351 3Q22 $2,157 $298 4Q22 $1,953 $282 1Q23 $890 $802 $1,443 $1,598 $1,783 $2,431 $1,229 $2,516 $2,506 $2,455 $2,235 $2,570 NIB Business Deposits Accounts NIB Business Deposits NIB Retail Deposits 4Q21 Includes PMB Acquisition (1) Excludes Warehouse Deposits DEPOSIT ENGINE CONSISTENTLY GENERATES NEW LOW-COST COMMERCIAL DEPOSIT RELATIONSHIPS

6 • Solid NIB mix, including 38% average and 36% percent of ending total deposits • YoY (through the cycle) average deposit beta of 26% • 73% insured and collateralized deposits • No material depository or industry concentration Cost of Deposits 39.6% 32.0% 21.4% 0.0%7.0% 1Q22 0.17% 37.4% 31.2% 21.5% 1.8% 8.1% 2Q22 0.47% 40.4% 0.08% 20.4% 4.4% 8.4% 3Q22 0.79% 39.5% 27.3% 16.5% 8.5% 8.2% 4Q22 1.22% 36.1% 26.8% 14.3% 14.4% 8.4% 1Q23 26.4% Average Cost of deposits Noninterest-bearing Interest-bearing checking Money Market & Savings Brokered CDs CDs Category 1Q22 2Q22 3Q22 4Q22 1Q23 $ in millions Noninterest-bearing checking $2,958.6 $2,826.6 $2,943.6 $2,809.3 $2,506.6 Interest-bearing checking 2,395.3 2,359.9 1,921.8 1,947.2 1,862.0 Demand deposits 5,354.0 5,186.5 4,865.4 4,756.6 4,368.6 Money market & savings 1,605.1 1,622.9 1,478.0 1,174.9 998.4 CDs 520.7 615.7 614.6 584.5 585.3 Brokered CDs 0.0 133.6 322.4 604.9 999.7 Total(1) $7,479.7 $7,558.7 $7,280.4 $7,120.9 $6,952.0 Highlights 0.12% 0.77% 2.18% 3.65% 4.51% Average Fed Funds Rate (1) Reflects balance as of period end LOW COST DEPOSIT FRANCHISE Widening spread against Fed funds rate

7 ($ in millions) March 31, 2023 Current Availability Utilization Capacity Primary Liquidity Cash* 1,010$ AFS Securities (unpledged) 724 Total Primary Liquidity $ 1,734 Secondary Liquidity FHLB** 821$ 325$ 1,146$ FRB (Discount Window & BIC) 502 600 1,102 FRB (Bank Term Funding Program) 412 - 412 Other 555 - 555 Total Secondary Liquidity $ 2,291 $ 925 $ 3,216 Total Primary + Secondary Liquidity $ 4,026 Total available primary and secondary liquidity ($4.03B) exceeds uninsured and uncollateralized deposits ($1.87B) by 2.2x * Cash targeted at 2.5% of total assets ** Excludes term funding, lines of credit and brokered CD capacity HIGH LEVEL OF AVAILABLE LIQUIDITY

8 (1) 1Q23 capital ratios are preliminary (2) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation • 1Q23 includes the impact from carrying excess liquidity, which reduced the Tangible Common Equity ratio by 72 bps, resulting in a normalized ratio of 9.16% • $35 million stock repurchase authorized for 2023, of which $10 million was repurchased by April 12 • 1Q22, 2Q22, 3Q22, 4Q22 and 1Q23 included $4.3 million, $38.9 million, $13.0 million, $18.9 million and $5.2 million in common stock repurchases, respectively • 3Q22 included the impact from the Deepstack acquisition • 1Q22 included the Series E Preferred Stock Redemption of $98.7 million STRONG CAPITAL BASE Provides Buffer for Economic Environment 1Q23 4Q22 3Q22 2Q22 1Q22 Regulatory Well- Capitalized Ratios 1Q23 Ratios in Excess of Well- Capitalized Total Risk-Based Capital Ratio (1) 14.06% 14.21% 13.86% 13.69% 13.79% 10.00% 4.06% Tier 1 Risk-based Capital (1) 11.66% 11.80% 11.43% 11.29% 11.40% 8.00% 3.66% Common Equity Tier 1 (CET1) (1) 11.66% 11.80% 11.43% 11.29% 11.40% 6.50% 5.16% Leverage Ratio (1) 9.71% 9.70% 9.52% 9.58% 9.72% 5.00% 4.71% Tangible Common Equity / Tangible Assets (2) 8.44% 9.23% 8.97% 9.03% 9.27% NA NA

9 QoQ Effective Duration (yrs) Unrealized Loss 1Q23 4Q22 Change 1Q23 1Q23 Gov’t & Agency (MBS, CMO, & SBA) $ 187.4 $ 144.6 $ 42.8 2.8 $ (5.2) CLOs 479.6 476.6 3.0 0.1 (11.2) Corporate Securities 176.0 166.6 9.4 2.1 (19.8) Private Label RMBS 115.4 80.5 34.9 6.9 (10.5) AFS $ 958.4 $ 868.3 $ 90.1 1.8 $ (46.8) Gov’t & Agency (MBS, CMO, & SBA) 214.3 214.4 (0.1) 9.8 (35.7) Municipal 114.2 114.2 (0.0) 10.1 (19.9) HTM $ 328.5 $ 328.6 $ (0.1) 9.9 $ (55.6) Total Securities $ 1,286.9 $ 1,196.9 $ 90.0 4.0 $ (102.4) Security Type ($ in millions) (1) $329 million of AFS securities were reclassified to HTM during 1Q22 Portfolio Average Balances & Yields Securities Portfolio Detail(1) Portfolio Profile CompositionCredit Rating 2.29% 1Q22 2.68% 2Q22 3.38% 3Q22 4.19% 4Q22 1Q23 $1,292 $1,217 $1,195 $1,221 $1,298 4.66% Average Balance ($ in millions) Yield AAA 46% AA 41% BBB 12% BB 1% CLO 37% Corporates 14% Munis 9% Gov’t & AGC 31% SECURITIES HAVE SHORT / MODERATE DURATION WITH LOW UNREALIZED AFS AND HTM LOSSES Private Label RMBS 9%

10 (Dollars in thousands) 1Q23 AFS (Unrealized Loss Pre-Tax) 46,788$ HTM (Unrealized Loss Pre-Tax) 55,605 Total Securities Unrealized Loss Pre-Tax $ 102,393 Net Unrealized Loss on AFS After-Tax 33,687$ 3.8% of CET1 Net Unrealized Loss on HTM After-Tax 40,036 4.5% of CET1 Net Unrealized Loss on Securities After-Tax (2) $ 73,723 Capital Analysis CET 1 Capital 893,648$ Net Unrealized Loss on Securities After-Tax (2) 73,723 8.2% of CET1 CET 1 (Deficit) / Surplus $ 819,925 CET1 Well-Capitalized Guideline 6.50% CET1 Ratio 11.66% CET1 Ratio, assuming AFS losses realized 11.22% CET1 Ratio, assuming AFS & HTM losses realized 10.70% (1) 1Q23 capital ratios are preliminary (2) Tax rate of 28.0% used for calculation purposes Note: AFS Securities were $1.01 billion and HTM securities were $329 million as of 1Q23 Total unrealized losses reduce the CET1 ratio by only 96 bps LOW UNREALIZED SECURITIES LOSSES AS A % OF CAPITAL(1) • AFS unrealized losses were 3.8% of CET1 Capital at 1Q23 • AFS + HTM unrealized losses were 8.2% of CET1 Capital at 1Q23 • Including unrealized losses, CET1 remains 4.2% above “Well Capitalized” guidelines Highlights

11 $13.88 FY2020 $13.39 1Q23FY2021 $14.19 FY2022 $14.26(2) (1) Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (2) 1Q23 TBVPS growth not annualized; prior periods represent full year results Tangible common equity per common share(1) Growth in TBV per common(1) share driven by strong earnings and prudent balance sheet management that more than offset negative AOCI marks, dividends, common stock repurchases and acquisitions of PMB and Deepstack Technologies 4Q22: Completed $75 million stock buyback authorized in 1Q22 that reduced outstanding shares by 7% 4Q21: Closed $1.5 billion asset PMB acquisition in October 3Q22: Completed $24 million acquisition of Deepstack Technologies in September 1Q23: Completed $5 million of stock buyback by 3/31 and $10 million by 4/12 CONTINUED TBV PER SHARE GROWTH

12 • 54% of loans are variable or hybrid • 63% of the loan portfolio is secured by residential real estate • Real estate secured loans weighted average loan-to-values (LTVs) of 58% • 72% of the SFR portfolio have LTVs of less than 70% • 83% of all real estate secured loans have LTVs of less than 70% • Exited three legacy non-relationship commercial loans that BANC elected to not renew, totaling $90 million 1Q23 4Q22 Change Loan Segment $(1) % Avg. Yield $(1) % Avg. Yield $(1) % Avg. Yield $ in Millions C&I: Warehouse $ 637 9% 8.15% $ 603 8% 6.93% $ 34 1% 1.21% C&I: All Other 1,150 16% 6.22% 1,243 17% 6.35% (93) -1% -0.14% Multifamily 1,678 24% 4.10% 1,690 24% 3.98% (12) 0% 0.12% CRE 1,302 18% 4.74% 1,260 18% 4.66% 43 0% 0.08% Construction 260 4% 8.59% 244 3% 7.54% 17 1% 1.05% SBA 65 1% 4.86% 68 1% 5.78% (3) 0% -0.92% Total Commercial Loans 5,093 72% 5.40% 5,107 72% 5.23% (14) 0% 0.17% SFR 1,877 27% 4.15% 1,921 27% 4.04% (44) 0% 0.11% Consumer 84 1% 6.26% 87 1% 6.14% (3) 0% 0.12% Total Consumer Loans 1,961 28% 4.24% 2,008 28% 4.13% (46) 0% 0.11% Total Loans HFI $ 7,054 100% 5.07% $ 7,115 100% 4.92% $ (61) N/A 0.15% Construction $260 4% Consumer $84 1% SBA $65 1% CRE $1,302 18% 1-4 Res. $1,877 27% Multifamily $1,678 24% C&I $1,787 25% 1Q23 Highlights (1) Reflects balance as of period end DIVERSIFIED LOAN PORTFOLIO MITIGATES RISK AND GENERATES ATTRACTIVE RISK-ADJUSTED YIELDS

13 CALIFORNIA-CENTRIC CRE PORTFOLIO HAS LOW WEIGHTED-AVERAGE LTV AND SOLID CREDIT QUALITY • CRE loan delinquency rate < 0.1% • CRE nonperforming loans < 0.1% • CRE weighted average LTV 55% • Retail is well diversified with 1.9x debt service coverage • Total CRE debt service coverage of 1.7x Multifamily 24% CRE comprises 18.5% of total loans; General Office at only 3.9% of total loans Highlights% of Total Loans 25% 24% 27% C&I 1% Hospitality4% Industrial 4% General Office 1% Medical Office5% Retail 1% Health Facility 3% OtherMultifamily 4% Construction SFR 2% SBA / Consumer • General Office CRE comprised of B/C low- rise with: o LTV of 54% o 1.6x debt service coverage Collateral Type Count Balance % of Total Loans Avg. Loan Size WA LTV ($ millions) ($ millions) General Office 62 $ 274 3.9% $ 4.6 54% Medical Office 10 86 1.2% 6.6 58% Retail 73 330 4.7% 4.5 53% Industrial 70 248 3.5% 3.5 58% Health Facility 8 97 1.4% 12.2 59% Hospitality 13 40 0.6% 3.1 40% Other 145 227 3.2% 1.6 54% Total CRE 381 $ 1,302 18.5% $ 3.4 55%

14 (1) Includes deferred costs/fees, transfers, sales and other adjustments $679 $831 $559 $145 $156 $290 $380 $262 $351 $208 $34 $968 $1,211 $821 $496 $399 ($435) ($459) ($239) ($212) ($217) ($317) ($334) ($347) ($284) ($237) ($28) ($414) ($394) ($166) ($780) ($1,208) ($980) ($662) ($454) 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Total Loan Fundings of $399 Million in Q1 2023 Fundings Advances Warehouse Net Advances/Paydowns Payoffs Paydowns Warehouse Net Advances/Paydowns Total Loan Yield Rate on Production ($ in millions) DIVERSIFIED BUSINESS MIX LOAN YIELDS ON NEW PRODUCTION CONTINUE TO RISE Note: Q1 2023 payoffs include three legacy non-relationship commercial loans totaling $90 million that BANC elected to not renew. ($ in millions) Loans Beginning Balance Total Fundings Total Payoffs Net Di fference Other Change (1) Loans Ending Balance Total Loan Yield Rate on Production Q1 2023 7,119$ 399$ 454$ (55)$ (6)$ 7,059$ 5.07% 7.74% Q4 2022 7,294$ 496$ 662$ (166)$ (8)$ 7,119$ 4.92% 6.78% Q3 2022 7,455$ 821$ 980$ (159)$ (2)$ 7,294$ 4.54% 5.52% Q2 2022 7,455$ 1,211$ 1,208$ 3$ (2)$ 7,455$ 4.35% 4.20% Q1 2022 7,255$ 968$ 780$ 188$ 12$ 7,455$ 4.26% 3.70%

15 $91.3 $89.4 Charge-offs of Specific Reserve $(0.8) ACL (12/31/2022) $(0.5) Changes in Specific Reserve $3.2 $(3.1) Net Charge-offs (Excl. Specific Reserve) Provision for RUC $2.5 Provision for ALL $(3.2) Portfolio Mix ACL (3/31/2023) 1.33% (1) 1.28% 1.36% • ACL includes the Allowance for Loan Losses (ALL) and Reserve for Unfunded Loan Commitments (RUC) • ACL decreased by $1.9 million due to (i) net charge offs of $3.9 million of which $3.2 million related to the commercial and industrial loans, (ii) $3.2 million from lower loan balances and changes in portfolio mix and (iii) $0.5 million lower RUC from lower unfunded commitments, partially offset by (iv) new specific reserves totaling $3.2 million, and (v) a $2.5 million increase in general reserves due mainly to the impact of the deterioration in the macroeconomic outlook • Total coverage ratio was relatively flat at 1.27% in comparison to 1.28% in 4Q22 Total Net Charge Offs $3.9 million($ in millions) 1.27% General reserve increase of $2.0 million due to macroeconomic outlook ALLOWANCE FOR CREDIT LOSSES WALK

16 $10.3 $7.3 $8.0 $21.1 $24.6 Delinquencies ($ in millions) Non-performing Loans (NPLs) ($ in millions) Criticized and Classified Loans ($ in millions) ACL / Total Loans ($ in millions) $30.6 0.82% 1Q22 $29.7 0.83% 2Q22 $21.1 0.79% 3Q22 $30.4 1.28% 4Q22 $31.7 1.03% 1Q23 SFR Delinquencies Delinquencies (ex-SFR) Delinquencies /Total Loans $97.8 1Q22 $125.2 2Q22 $110.9 3Q22 $119.0 4Q22 $94.7 1Q23 $249.7 $210.5 $172.7 $183.2 $146.6 Criticized and Classified Loans Classified Loans $44.2 0.73% 1Q22 $37.1 0.60% 2Q22 $34.7 0.59% 3Q22 $34.1 0.78% 4Q22 $32.0 0.80% 1Q23 SFR NPLs NPLs (ex-SFR) NPLs/Total Loans-HFI 1.32% $98.6 1Q22 1.34% $99.7 2Q22 1.36% $98.8 3Q22 1.28% $91.3 4Q22 1.27% $89.4 1Q23 ACL / Total Loans ACL $30.4 $32.5 $36.4 $60.8 $40.9 Positive trends across credit metrics: Decline in delinquencies, criticized and classified, and NPLs excluding SFR loans ASSET QUALITY REMAINS STRONG NPLs, Delinquencies, and Classified Loans

17 (1) Reflects balance as of period end Interest Rate Risk Position (within 12 months) Loan & Deposit Mix Interest- bearing, Non-Maturity Non-Time 44% Time 17% Variable 30% Fixed 46% LESS Rate Sensitive Assets at 37% of Total Assets Loan Portfolio • $2.2 billion mature or reset within 12 months • Given a 25 bps market rate increase, 99% of adjustable-rate loans with floors are eligible to reprice Cash & Investments • $1.0 billion in interest-bearing cash • $495 million reprice within 12 months, mostly CLOs Rate Sensitive Liabilities at 23% of Total Assets • $1.4 billion of CDs mature or reprice within 12 months • $925 million in overnight borrowings One Year Positive Gap Ratio is 14% of Total Assets HFI Loans: $7.1 billion Total Deposits: $7.0 billion Hybrid 23% Variable 31% Fixed 46% Noninterest- bearing 36% Interest- bearing, non-maturity 1 Time 23% Positioned for future rate cycles with a neutral balance sheet INTEREST RATE RISK MANAGEMENT

18 • Continued focus on noninterest-bearing deposits, credit quality, robust capital and tangible book value growth Well-Positioned to Grow Franchise Value • Build differentiated payment business that will drive fee income and commercial deposits • Continue momentum in media/entertainment, healthcare and selective bridge real estate where we have unique expertise • Options include, but are not limited to: balance sheet growth, investments in people and technology, stock repurchases, debt paydowns, and other targeted ways to enhance yield Protect The Balance Sheet Proactively Manage Asset- Liability Mix Target Opportunistic Growth in our Core Niches Scale Payments Business and Related Initiatives Allocate Capital to Drive Long Term Shareholder Returns • Balance asset sensitivity while also proactively taking advantage of opportunities to enhance earnings for the long term 2023 STRATEGIC OBJECTIVES

19 APPENDIX

20 (1) Non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation 1Q23 4Q22 3Q22 2Q22 1Q22 $ 10,039 $ 9,197 $ 9,369 $ 9,502 $ 9,584 958 868 848 865 899 329 329 329 329 329 7,054 7,115 7,289 7,451 7,452 6,952 7,121 7,280 7,559 7,480 $ 73.1 $ 80.2 $ 79.4 $ 78.3 $ 76.4 7.9 (1.4) 5.7 7.2 5.9 80.9 78.8 85.1 85.5 82.4 49.6 47.6 50.5 47.6 46.4 1.6 0.6 0.5 1.0 0.2 51.2 48.2 51.0 48.6 46.6 29.7 30.6 34.1 36.9 35.8 2.0 - - - (31.5) 7.4 9.1 9.9 10.2 18.8 20.3 21.5 24.2 26.7 48.5 - - - - 5.2 $ 20.3 $ 21.5 $ 24.2 $ 26.7 $ 43.3 $ 0.34 $ 0.36 $ 0.40 $ 0.43 $ 0.69 $ 14.26 $ 14.19 $ 13.79 $ 14.05 $ 14.05 0.88% 0.92% 1.02% 1.15% 2.09% 60.86% 56.03% 55.66% 55.11% 56.53% Return on average assets Adjusted efficiency ratio(1) 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) (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 in alternative energy partnership investments Total noninterest expense Pre-tax pre-provision income(1) (Reversal of) provision for credit losses Securities held-to-maturity BANC FAST FACTS

21 (1) Excludes Warehouse credit facilities $ in millions Real Estate Loan Balances(1) SFR Portfolio by LTV 59% 1Q22 65% 2Q22 70% 3Q22 72% 4Q22 73% 1Q23 $4,424 $4,837 $5,124 $5,114 $5,118 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 57% Real Estate(1) LTVs $ % Count <50% $ 1,482 29% 1,073 50% to 60% 1,123 22% 511 60% to 70% 1,643 32% 631 70% to 80% 790 15% 472 >80% 80 2% 71 Total $ 5,118 100% 2,758 $ in Millions SFR LTVs $ % Count <50% $ 560 30% 650 50% to 60% 354 19% 290 60% to 70% 438 23% 361 70% to 80% 468 25% 367 >80% 58 3% 63 Total $ 1,877 100% 1,731 $ in Millions • 72% of all existing SFR have LTVs of less than 70% • Weighted average LTV is 58% DIVERSIFIED AND LOW LTV REAL ESTATE PORTFOLIO

22 • Allowance for Credit Losses (ACL) includes Reserve for Unfunded Commitments • ACL coverage ratio of 1.27% at the end of 1Q23 consistent with the prior quarter ACL Composition 3/31/2023 12/31/2022 ($ in thousands) Amount % of Loans Amount % of Loans Commercial real estate $ 16,119 1.24% $ 15,977 1.27% Multifamily 15,038 0.90% 14,696 0.87% Construction 6,425 2.47% 5,850 2.40% Commercial and industrial 30,327 2.64% 31,534 2.54% Commercial and industrial - warehouse 2,317 0.36% 2,622 0.44% SBA 2,097 3.22% 2,648 3.89% Total commercial loans 72,323 1.42% 73,327 1.44% Single family residential mortgage 11,481 0.61% 12,050 0.63% Other consumer 756 0.90% 583 0.67% Total consumer loans 12,237 0.62% 12,633 0.63% Allowance for loan losses 84,560 1.20% 85,960 1.21% Reserve for unfunded commitments 4,805 0.07% 5,305 0.07% Allowance for credit losses $ 89,365 1.27% $ 91,265 1.28% STRONG ALLOWANCE COVERAGE RATIO RESERVE BY LOAN TYPE

23 CLO Industry Breakdown $480 million at March 31, 2023 (net of $11.2 million unrealized loss)• CLO portfolio has underlying diversified exposure • AAA and AA 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 • 1Q23 average CLO portfolio yield of 6.39%, up from 5.64% in 4Q22 • Quarterly reset based on 3 Month Libor + 1.62% • CLOs included an unrealized loss of $11.2 million as of 1Q23, down from $15.6 million as of 4Q22 Healthcare & Pharmaceuticals 12% High Tech Industries 12% Services: Business 9% Banking, Finance, Insurance & Real Estate 8% Beverage, Food & Tobacco 5% Media: Broadcasting & Subscription 5% Hotel, Gaming & Leisure 4% Capital Equipment 4% Automotive 4% Services: Consumer 3% Construction & Building 3% Telecommunications 3% Chemicals, Plastics, & Rubber 3% Retail 3% Containers, Packaging & Glass 3% Other 20% CLO PORTFOLIO HAS DIVERSIFIED EXPOSURE Credit Enhancement Provides Significant Principal Protection Highlights

24 Tangible assets, tangible equity, tangible common equity, tangible common equity to tangible assets, tangible common equity per share, return on average tangible common equity, adjusted noninterest income, adjusted noninterest expense, adjusted noninterest income to adjusted total revenue, adjusted noninterest expense to average total assets, pre- tax pre-provision (PTPP) income, adjusted PTPP income, PTPP income ROAA, adjusted PTPP income ROAA, efficiency ratio, adjusted efficiency ratio, adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share (EPS), adjusted return on average assets (ROAA), adjusted common equity tier 1 (CET 1) and adjusted CET1 ratios 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, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net income 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 net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense. PTPP income ROAA is calculated by dividing annualized PTPP income by average assets. Adjusted PTPP income ROAA is calculated by dividing annualized adjusted PTPP income by average assets. Efficiency ratio is calculated by dividing noninterest expense by total revenue. Adjusted efficiency ratio is calculated by dividing adjusted noninterest expense by adjusted total revenue. Adjusted net income is calculated by adjusting net income for tax-effected noninterest income and noninterest expense adjustments and the tax impact from the exercise of stock appreciation rights for the periods indicated. Adjusted ROAA is calculated by dividing annualized adjusted net income by average assets. Adjusted net income available to common stockholders is calculated by removing the impact of preferred stock redemptions from adjusted net income. Adjusted diluted earnings per share is calculated by dividing adjusted net income available to common stockholders by the weighted average diluted common shares outstanding. Common equity tier 1 and the common equity tier 1 ratio are defined by regulatory capital rules. Adjusted CET 1 is calculated by subtracting net unrealized losses on securities from CET 1 capital. Adjusted CET 1 ratio is calculated by dividing adjusted CET 1 by total risk-weighted assets. Adjusted CET 1 ratio, assuming AFS losses realized, is calculated by dividing CET 1 capital amount after adjusting for the net unrealized losses on AFS securities, by total risk-weighted assets. Adjusted CET 1 ratio, assuming HTM losses realized, is calculated by dividing CET 1 capital after adjusting for the net unrealized losses on HTM securities, by total risk-weighted assets. Adjusted CET 1 and adjusted CET 1 ratios are provided to reflect management’s assessment of capital impacts from net unrealized losses on securities. Capital amounts and ratios as of March 31, 2023 are preliminary. 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 25-30 of this presentation. NON-GAAP FINANCIAL INFORMATION

25 (1) Non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation (Dollars in thousands) 1Q23 4Q22 3Q22 2Q22 1Q22 Tangible Common Equity to Tangible Assets Ratio Total assets $ 10,038,901 $ 9,197,016 $ 9,368,578 $ 9,502,113 $ 9,583,540 Less: goodwill (114,312) (114,312) (114,312) (95,127) (95,127) Less: other intangible assets (7,065) (7,526) (8,081) (4,677) (4,990) Tangible assets(1) $ 9,917,524 $ 9,075,178 $ 9,246,185 $ 9,402,309 $ 9,483,423 Total stockholders' equity $ 958,907 $ 959,618 $ 951,990 $ 949,130 $ 979,009 Less: goodwill (114,312) (114,312) (114,312) (95,127) (95,127) Less: other intangible assets (7,065) (7,526) (8,081) (4,677) (4,990) Tangible common equity(1) $ 837,530 $ 837,780 $ 829,597 $ 849,326 $ 878,892 Total stockholders' equity to total assets 9.55% 10.43% 10.16% 9.99% 10.22% Tangible common equity to tangible assets(1) 8.44% 9.23% 8.97% 9.03% 9.27% Common shares outstanding 58,237,303 58,544,534 59,679,558 59,985,736 62,077,312 Class B non-voting non-convertible common shares outstanding 477,321 477,321 477,321 477,321 477,321 Total common shares outstanding 58,714,624 59,021,855 60,156,879 60,463,057 62,554,633 Book value per common share $ 16.33 $ 16.26 $ 15.83 $ 15.70 $ 15.65 Tangible common equity per common share(1) $ 14.26 $ 14.19 $ 13.79 $ 14.05 $ 14.05 NON-GAAP RECONCILIATION

26 (1) Non-GAAP measure (2) Adjustments shown net of a statutory tax rate of 29.6% (Dollars in thousands) 1Q23 4Q22 3Q22 2Q22 1Q22 Return on tangible common equity Average total stockholders' equity $ 1,004,794 $ 989,414 $ 960,806 $ 969,885 $ 1,049,912 Less: Average preferred stock - - - - (75,965) Average common stockholders' equity 1,004,794 989,414 960,806 969,885 973,947 Less: Average goodwill (114,312) (114,312) (98,916) (95,127) (94,307) Less: Average other intangible assets (7,355) (7,869) (4,570) (4,869) (6,224) Average tangible common equity(1) $ 883,127 $ 867,233 $ 857,320 $ 869,889 $ 873,416 Net income available to common stockholders $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 43,345 Add: Amortization of intangible assets 461 555 396 313 441 Less: Tax effect on amortization of intangible assets(2) (136) (164) (117) (93) (130) Net income available to common stockholders after the adjustments for intangible assets(1) $ 20,603 $ 21,910 $ 24,475 $ 26,932 $ 43,656 Return on average equity 8.18% 8.63% 9.99% 11.05% 18.74% Return on average tangible common equity(1) 9.46% 10.02% 11.33% 12.42% 20.27% NON-GAAP RECONCILIATION

27 (Dollars in thousands) 1Q23 4Q22 3Q22 2Q22 1Q22 Adjusted Noninterest Income Total noninterest income 7,859 (1,427) 5,681 7,186 5,910 Net (gain) on securities available for sale - 7,708 - - (16) Adjusted noninterest income(1) $ 7,859 $ 6,281 $ 5,681 $ 7,186 $ 5,894 Adjusted Noninterest Expense Total noninterest expense $ 51,239 $ 48,203 $ 50,962 $ 48,612 $ 46,596 Noninterest expense adjustments: Indemnified legal recoveries (fees) (380) 869 (1,017) (455) 106 Acquisition, integration and transaction costs - - (2,080) - - Noninterest expense adjustments before gain (loss) in alternative energy partnership investments (380) 869 (3,097) (455) 106 (Loss) gain in alternative energy partnership investments (1,618) (608) (504) (1,043) (158) Total noninterest expense adjustments (1,998) 261 (3,601) (1,498) (52) Adjusted noninterest expense(1) $ 49,241 $ 48,464 $ 47,361 $ 47,114 $ 46,544 Average assets $9,317,209 $9,257,311 $9,408,740 $9,342,696 $9,392,305 Noninterest income to total revenue 9.71% (1.81%) 6.68% 8.41% 7.18% Adjusted noninterest income to adjusted total revenue(1) 9.71% 7.26% 6.68% 8.41% 7.16% Noninterest expense / Average assets(2) 2.23% 2.07% 2.15% 2.09% 2.01% Adjusted noninterest expense / Average assets(1)(2) 2.14% 2.08% 2.00% 2.02% 2.01% (1) Non-GAAP measure (2) Ratio presented on an annualized basis NON-GAAP RECONCILIATION

28 (1) Non-GAAP measure (2) Ratio presented on an annualized basis (Dollars in thousands) 1Q23 4Q22 3Q22 2Q22 1Q22 Adjusted pre-tax pre-provision income Net interest income $ 73,053 $ 80,217 $ 79,408 $ 78,299 $ 76,441 Noninterest income 7,859 (1,427) 5,681 7,186 5,910 Total revenue 80,912 78,790 85,089 85,485 82,351 Noninterest expense 51,239 48,203 50,962 48,612 46,596 Pre-tax pre-provision income(1) $ 29,673 $ 30,587 $ 34,127 $ 36,873 $ 35,755 Total revenue $ 80,912 $ 78,790 $ 85,089 $ 85,485 $ 82,351 Total noninterest income adjustments - $ 7,708 - - (16) Adjusted total revenue(1) $ 80,912 $ 86,498 $ 85,089 $ 85,485 $ 82,335 Noninterest expense $ 51,239 $ 48,203 $ 50,962 $ 48,612 $ 46,596 Total noninterest expense adjustments (1,998) 261 (3,601) (1,498) (52) Adjusted noninterest expense(1) 49,241 48,464 47,361 47,114 46,544 Adjusted pre-tax pre-provision income(1) $ 31,671 $ 38,034 $ 37,728 $ 38,371 $ 35,791 Average Assets $ 9,317,209 $ 9,257,311 $ 9,408,740 $ 9,342,696 $ 9,392,305 Pre-tax pre-provision ROAA(1),(2) 1.29% 1.31% 1.44% 1.58% 1.54% Adjusted pre-tax pre-provision ROAA(1),(2) 1.38% 1.63% 1.59% 1.65% 1.55% Efficiency Ratio(1) 63.33% 61.18% 59.89% 56.87% 56.58% Adjusted efficiency ratio(1),(2) 60.86% 56.03% 55.66% 55.11% 56.53% NON-GAAP RECONCILIATION

29 (1) Net income for the three months ended December 31, 2022 includes a $7.7 million pre-tax loss on sale of securities (2) Net income and adjusted 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 (3) Tax impact of adjustments shown at a statutory tax rate of 29.6% (4) Non-GAAP measure (5) Ratio presented on an annualized basis (6) Represents adjusted net income available to common stockholders divided by average diluted common shares (Dollars in thousands, except per share data) 1Q23 4Q22 3Q22 2Q22 1Q22 Adjusted net income Net income(1)(2)(3) $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 48,512 Adjustments: Noninterest income adjustments - 7,708 - - (16) Noninterest expense adjustments 1,998 (261) 3,601 1,498 52 Total adjustments 1,998 7,447 3,601 1,498 36 Tax impact of adjustments above(4) (591) (2,202) (1,065) (443) (11) Adjustments to net income 1,407 5,245 2,536 1,055 25 Adjusted net income(2)(5) $ 21,685 $ 26,764 $ 26,732 $ 27,767 $ 48,537 Average Assets $ 9,317,209 $ 9,257,311 $ 9,408,740 $ 9,342,696 $ 9,392,305 ROAA(6) 0.88% 0.92% 1.02% 1.15% 2.09% Adjusted ROAA(5)(6) 0.94% 1.15% 1.13% 1.19% 2.10% Adjusted net income available to common stockholders Net income available to common stockholders $ 20,278 $ 21,519 $ 24,196 $ 26,712 $ 43,345 Adjustments to net income 1,407 5,245 2,536 1,055 25 Adjustments for impact of preferred stock redemption - - - - 3,747 Adjusted net income available to common stockholders (5) $ 21,685 $ 26,764 $ 26,732 $ 27,767 $ 47,117 Average diluted common shares 59,206,619 59,725,283 60,492,460 61,600,615 62,906,003 Diluted EPS $ 0.34 $ 0.36 $ 0.40 $ 0.43 $ 0.69 Adjusted diluted EPS(5)(7) $ 0.37 $ 0.45 $ 0.44 $ 0.45 $ 0.75 NON-GAAP RECONCILIATION

30 (1) March 31, 2023 presented to reflect management’s assessment of capital impact from net unrealized losses on securities. Tax rate of 28.0% used for calculation purposes (2) March 31, 2023 capital and capital ratios are preliminary (3) Non-GAAP measure NON-GAAP RECONCILIATION (Dollars in thousands) 1Q23 Adjusted Common Equity Tier 1 (CET 1) capital(1) CET 1 capital(2) $ 893,648 Less unrealized loss on AFS securities, net of tax (33,687) Less unrealized loss on HTM securities, net of tax (40,036) Adjusted CET 1 capital(3) $ 819,925 Total risk-weighted assets(2) $ 7,665,451 CET 1 ratio(2) 11.66% Adjusted CET 1 ratio, assuming AFS losses realized(3) 11.22% Adjusted CET 1 ratio, assuming AFS and HTM losses realized(3) 10.70%

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