UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section  13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 23, 2025
 
BANC OF CALIFORNIA, INC.
(Exact name of registrant as specified in its charter)
 
Maryland
001-35522
04-3639825
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
11611 San Vicente Boulevard, Suite 500
 
Los Angeles, California
90049
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code: (855)  361-2262
 
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
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
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series F
    BANC/PF   New York Stock Exchange
 
Item 2.02
Results of Operations and Financial Condition.
 
On January 23, 2025, Banc of California, Inc. (the “Company”) issued a press release announcing 2024 fourth quarter financial results.
 
A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.
 
Item 7.01
Regulation FD Disclosure.
 
The Company will host a conference call to discuss its fourth quarter results at 10:00 A.M. Pacific Time on Thursday, January 23, 2025. Interested parties may attend the conference call by dialing (888) 317-6003 and referencing event code 4964279. A live audio webcast will be available through the webcast link to be posted on the Company’s Investor Relations website at www.bancofcal.com/investor, in addition to the slide presentation for investor review prior to the call. A copy of the presentation materials is furnished herewith as Exhibit 99.2 and is incorporated by reference herein.
 
Item 9.01
Financial Statements and Exhibits.

 
(d)
Exhibits.
 
Banc of California, Inc. Press Release dated January 23, 2025.
   
Banc of California, Inc. Earnings Conference Call Presentation Materials.
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)

2
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.
   
January 23, 2025
/s/ Joseph Kauder
 
Joseph Kauder
 
Executive Vice President and Chief Financial Officer


3
Exhibit 99.1



Banc of California, Inc. Reports Fourth Quarter Diluted Earnings per Share of $0.28, Reflecting Strong Year-Over-Year Net Interest Margin Expansion and Lower Noninterest Expenses

Company Release –  1/23/2025

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the fourth quarter and year ended December 31, 2024. The Company reported net earnings available to common and equivalent stockholders of $47.0 million, or $0.28 per diluted common share, for the fourth quarter of 2024. This compares to a net loss available to common and equivalent stockholders of $1.2 million, or a loss of $0.01 per diluted common share, for the third quarter of 2024. On an adjusted basis, net earnings available to common and equivalent stockholders were $41.4 million, or $0.25 per diluted common share for the third quarter.(1) The third quarter of 2024 included $60 million of pre-tax losses from repositioning a portion of the securities portfolio. For the full year 2024, we reported net income available to common and equivalent shareholders of $87.1 million, or $0.52 per diluted common share. On an adjusted basis, net income available to common and equivalent shareholders was $135.4 million, or $0.80 per diluted common shares.(1)
 
Update on Southern California Wildfires
 
The recent wildfires in Southern California have been devastating, severely impacting Los Angeles and the surrounding areas – home to our headquarters and where many of our clients and team members live and work. To support the recovery efforts, our charitable foundation has launched the Banc of California Wildfire Relief and Recovery Fund, which is dedicated to aiding relief efforts and rebuilding our community. To further our commitment, we have donated $1 million to the relief fund, standing in solidarity with Angelenos as we work together to rebuild and restore what has been lost. To date, we are not aware of any material impact on our loan portfolio, collateral or any of our facilities due to the Southern California wildfires. We are currently aware of four commercial properties and three residential properties that have been damaged or destroyed but all such collateral has insurance coverage in place and will continue to monitor and assess for potential exposure.
 
Financial Highlights for the Fourth Quarter and 2024 Fiscal Year
 
•
Net interest margin expansion of 11 basis points vs 3Q24 to 3.04% and 135 basis points year-over-year, driven by lower funding costs
 
•
Lowered funding costs by 27 basis points vs 3Q24 and 113 basis points year-over-year, reflecting benefits of prior balance sheet repositioning actions and improved funding mix
 
•
Average noninterest-bearing deposits grew to 29.1% of average total deposits, up from 27.7% in 3Q24 and 22.6% in 4Q23, driven by relationship-focused deposit growth strategy
 
1
•
Total loans of $23.8 billion grew 4.3% annualized or $254 million from 3Q24, driven by growth in warehouse lending, equity funds, and residential mortgage loan portfolios
 
•
Total noninterest expense declined 7.6% vs 3Q24 to $181.4 million and 50.1% year-over-year, driven by strong efficiency gains and achievement of our merger cost savings target. This reflects a 35.7% decrease in adjusted noninterest expense(1) year-over-year excluding acquisition, integration and reorganization costs and normalizing 4Q23 to include combined company expenses for a full quarter and incentive compensation adjusted to target.
 
•
Strengthened capital ratios with CET1 capital ratio(2) up 9 basis points vs 3Q24 to 10.55% and 41 basis points year-over year
 
•
Growth in book value per share to $17.78 and tangible book value per share(1) to $15.72
 

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

(2)
Capital ratio for 12/31/2024 is preliminary
 
Jared Wolff, President & CEO of Banc of California, commented, “Our strong fourth quarter results reflect continued momentum and consistent execution by our team. During the quarter, we achieved additional cost savings as well as a significant decline in our funding costs driven by our targeted reduction in deposit costs and the balance sheet repositioning actions that we completed earlier in the year. These actions helped drive an expansion in our net interest margin and increases in our net income, earnings per share, and level of returns.”
 
Mr. Wolff continued, “During the course of 2024, we made significant strides in strengthening our balance sheet and core earnings power. We believe we are well positioned to continue adding to our client base and expanding relationships with existing clients. Given the positive economic outlook, and the solid gains in loans and deposits generated by our teams in the fourth quarter, we believe we are well positioned to generate further growth in the balance sheet in 2025, expanding operating leverage and profitability to create additional value for our shareholders.”
 
2
INCOME STATEMENT HIGHLIGHTS
 
   
Three Months Ended
  
Year Ended
  
   
December 31,
  
September 30,
  
December 31,
  
December 31,
  
Summary Income Statement
  
2024
  
2024
  
2023
  
2024
  
2023
  
 
  
(In thousands)
  
Total interest income
  
$
424,519
  
$
446,893
  
$
467,240
  
$
1,812,705
  
$
1,971,000
  
Total interest expense
    
189,234
    
214,718
    
316,189
    
886,655
    
1,223,872
  
Net interest income
    
235,285
    
232,175
    
151,051
    
926,050
    
747,128
  
Provision for credit losses
    
12,801
    
9,000
    
47,000
    
42,801
    
52,000
  
Gain (loss) on sale of loans
    
20
    
(62
)
  
(3,526
)
  
645
    
(161,346
)
(Loss) gain on sale of securities
    
(454
)
  
(59,946
)
  
(442,413
)
  
(60,400
)
  
(442,413
)
Other noninterest income
    
29,423
    
44,556
    
45,537
    
136,900
    
155,474
  
Total noninterest income (loss)
    
28,989
    
(15,452
)
  
(400,402
)
  
77,145
    
(448,285
)
Total revenue
    
264,274
    
216,723
    
(249,351
)
  
1,003,195
    
298,843
  
Goodwill impairment
    
-
    
-
    
-
    
-
    
1,376,736
  
Acquisition, integration and reorganization costs
    
(1,023
)
  
(510
)
  
111,800
    
(14,183
)
  
142,633
  
Other noninterest expense
    
182,393
    
196,719
    
251,838
    
805,923
    
938,812
  
Total noninterest expense
    
181,370
    
196,209
    
363,638
    
791,740
    
2,458,181
  
Earnings (loss) before income taxes
    
70,103
    
11,514
    
(659,989
)
  
168,654
    
(2,211,338
)
Income tax expense (benefit)
    
13,184
    
2,730
    
(177,034
)
  
41,766
    
(312,201
)
Net earnings (loss)
    
56,919
    
8,784
    
(482,955
)
  
126,888
    
(1,899,137
)
Preferred stock dividends
    
9,947
    
9,947
    
9,947
    
39,788
    
39,788
  
Net earnings (loss) available to common and equivalent stockholders
  
$
46,972
  
$
(1,163
)
$
(492,902
)
$
87,100
  
$
(1,938,925
)

Net Interest Income
 
Q4-2024 vs Q3-2024
 
Net interest income increased by $3.1 million to $235.3 million for the fourth quarter from $232.2 million for the third quarter due to lower interest expense on interest-bearing liabilities, offset partially by lower interest income on interest-earning assets.
 
The net interest margin increased 11 basis points to 3.04% for the fourth quarter as the cost of average total funding decreased 27 basis points and the average interest-earning assets yield decreased 15 basis points.
 
The average yield on interest-earning assets decreased by 15 basis points to 5.48% for the fourth quarter from 5.63% for the third quarter due mainly to the average yield on deposits in financial institutions decreasing by 65 basis points and the average yield on loans and leases decreasing by 17 basis points, offset partially by the average yield on investment securities increasing by 21 basis points. The decrease in the average yield on deposits in financial institutions was due to lower market rates attributable mainly to the Federal Reserve reducing the federal funds rate by a total of 100 basis points since September 2024. The average yield on loans and leases decreased by 17 basis points to 6.01% for the fourth quarter from 6.18% for the third quarter as a result of lower market interest rates and lower loan discount accretion. The average yield on investment securities increased by 21 basis points benefitting from the balance sheet repositioning actions taken in the third quarter.
 
3
Average interest-earning assets decreased by $750.7 million to $30.8 billion for the fourth quarter due mainly to the decreases of $631.5 million in average deposits in financial institutions and $154.4 million in average loans and leases.
 
The average total cost of funds decreased by 27 basis points to 2.55% for the fourth quarter from 2.82% for the third quarter due mainly to lower market interest rates, lower rate on average borrowings, and lower average balance of total deposits due to the paydown of higher-cost brokered deposits in the third quarter. The average cost of interest-bearing liabilities decreased by 32 basis points to 3.48% for the fourth quarter from 3.80% for the third quarter. The average cost of interest-bearing deposits decreased by 34 basis points to 3.18% for the fourth quarter from 3.52% for the third quarter mainly due to deposit rate repricing driven by federal funds rate cuts, while the average cost of borrowings decreased by 95 basis points to 5.40% for the fourth quarter from 6.35% for the third quarter as the BTFP was paid off and partially replaced with lower fixed rate FHLB advances in the third quarter. Average noninterest-bearing deposits increased by $59.9 million for the fourth quarter compared to the third quarter, average total deposits decreased by $1.2 billion due to the aforementioned paydown of brokered deposits, and average borrowings increased by $335.5 million.
 
Full Year 2024 vs Full Year 2023
 
Net interest income increased by $178.9 million to $926.1 million for the year ended December 31, 2024 from $747.1 million for the year ended December 31, 2023 due to lower interest expense on interest-bearing liabilities, offset partially by lower interest income on interest-earning assets.
 
The net interest margin increased by 87 basis points to 2.85% for the year ended December 31, 2024 compared to 1.98% in 2023 due to the average yield on interest-earning assets increasing by 37 basis points, while the average total cost of funds decreased by 50 basis points.
 
The average yield on interest-earning assets increased by 37 basis points to 5.58% for the year ended December 31, 2024 from 5.21% in 2023 due mainly to the change in the interest-earning asset mix. This was driven by the increase in the balance of average loans and leases as a percentage of average interest-earning assets to 76% for the year ended December 31,2024 from 67% for the year ended December 31, 2023, the decrease in the balance of average investment securities as a percentage of average interest-earning assets to 14% for the year ended December 31, 2024 from 18% in 2023, and the decrease in the balance of average deposits in financial institutions as a percentage of average interest-earning assets to 10% for the year ended December 31, 2024 from 15% in 2023.
 
The average yield on loans and leases increased by 19 basis points to 6.11% for the year ended December 31, 2024 from 5.92% in 2023 as a result of changes in portfolio mix and higher net accretion of loan discounts. The average yield on investment securities increased by 44 basis points benefitting from the balance sheet repositioning actions taken in the third quarter of 2024.
 
Average interest-earning assets decreased by $5.4 billion to $32.5 billion for the year ended December 31, 2024 due to lower average balances in loans and leases, investments securities, and deposits in financial institutions. Average loans and leases decreased by $760.7 million primarily due to the sale in July 2024 of $1.95 billion of Civic loans, offset partially by the acquisition of legacy Banc of California loans completed in the fourth quarter of 2023. Average investment securities decreased by $2.1 billion mostly due to securities sales completed in the fourth quarter of 2023. Average deposits in financial institutions decreased by $2.5 billion due to lower cash balances which were used to pay down higher-cost funding including the full payoff of $2.6 billion of the BTFP and $1.85 billion in brokered deposits as part of the balance sheet repositioning actions taken during 2024.
 
4
The average total cost of funds decreased by 50 basis points to 2.84% for the year ended December 31, 2024 from 3.34% for the year ended December 31, 2023 due mainly to changes in the total funding mix. This was driven by the increase in the balance of lower-cost average total deposits as a percentage of average total funds to 91% for the year ended December 31, 2024 from 78% in 2023, and the decrease in the balance of higher-cost average borrowings as a percentage of average total funds to 6% for the year ended December 31, 2024 from 19% in 2023. The average cost of interest-bearing liabilities decreased by 35 basis points to 3.79% for the year ended December 31, 2024 from 4.14% in 2023. The average total cost of deposits decreased by 9 basis points to 2.52% for the year ended December 31, 2024 compared to 2.61% for the year ended December 31, 2023. Average noninterest-bearing deposits increased by $757.6 million for the year ended December 31, 2024 compared to 2023 and average total deposits decreased by $251.8 million. Average borrowings decreased by $5.2 billion for the year ended December 31, 2024 compared to 2023 due to paydown of borrowings in connection with the balance sheet repositioning completed due to the merger.
 
Provision For Credit Losses
 
Q4-2024 vs Q3-2024
 
The provision for credit losses increased by $3.8 million to $12.8 million for the fourth quarter compared to $9.0 million for the third quarter. The fourth quarter provision included an $11.5 million provision for loan losses and a $1.5 million provision for unfunded loan commitments, offset partially by a $0.2 million reversal of the provision for credit losses related to available-for-sale securities. The fourth quarter provision for loans and unfunded loan commitments was driven primarily by net charge-off activity during the quarter. The third quarter provision was driven primarily by increases in qualitative reserves, for loans secured by office properties and concentrations of credit, and specific reserves for nonperforming loan downgrades.
 
Full Year 2024 vs Full Year 2023
 
The provision for credit losses decreased by $9.2 million to $42.8 million for the year ended December 31, 2024 compared to $52.0 million for the year ended December 31, 2023. The provision for credit losses in 2024 included a $43.5 million provision for loan losses, offset partially by a $0.5 million reversal of the provision for credit losses related to unfunded loan commitments and a $0.2 million reversal of the provision for credit losses related to available-for-sale securities. The 2024 provision was driven mainly by net charge-off activity during the year. The provision for credit losses for 2023 included a $113.5 million provision for loan losses, offset partially by a $61.5 million reversal of the provision for credit losses related to lower unfunded loan commitments. The 2023 provision for loan losses also included an initial provision of $22.2 million for acquired legacy Banc of California non-PCD loans.
 
Noninterest Income
 
Q4-2024 vs Q3-2024
 
Noninterest income increased by $44.4 million to $29.0 million for the fourth quarter from a loss of $15.5 million for the third quarter due mainly to a $59.5 million decrease in loss on sale of securities, offset partially by decreases of $6.4 million in leased equipment income, $5.4 million in other income and $3.7 million in dividends and gains on equity investments. The decrease in loss on sale of securities was mainly due to the sale of $741.8 million in securities for a net loss of $59.9 million in the third quarter of 2024. The decrease in leased equipment was due mostly to lower gains from early lease terminations and sale of leased assets. The decrease in other income was due primarily to a $4.6 million increase in the negative fair value mark on the credit-linked notes. The decrease in dividends and gains on equity investments was due to lower income distributions from the CRA equity investments.
 
5
Full Year 2024 vs Full Year 2023
 
Noninterest income increased by $525.4 million to $77.1 million for the year ended December 31, 2024 due mostly to a decrease in the loss on sale of securities of $382.0 million and an increase in the gain on sale of loans of $162.0 million. The Company sold $753.7 million in securities for a net loss of $60.4 million in the year ended December 31, 2024 and $2.7 billion in securities for a net loss of $442.4 in the year ended December 31, 2023. The Company sold $2.5 billion of loans for a net gain of $0.6 million in the year ended December 31, 2024 and $8.7 billion of loans for a net loss of $161.3 million in the year ended December 31, 2023.
 
Noninterest Expense
 
Q4-2024 vs Q3-2024
 
Noninterest expense decreased by $14.8 million to $181.4 million for the fourth quarter due mainly to decreases of $7.9 million in compensation expenses, $2.8 million in customer related expenses, $1.5 million in insurance and assessments expense, and $1.2 million in occupancy expense. The decrease in compensation expenses was primarily due to lower headcount. The decrease in customer related expenses was driven by lower earnings credit rate expenses which were impacted by lower federal funds rate. The decrease in insurance and assessments expense was due to lower FDIC assessment rates. The decrease in occupancy expense was mostly attributable to facility consolidations leading to cost savings.
 
Full Year 2024 vs Full Year 2023
 
Noninterest expense decreased by $1.7 billion to $791.7 million for the year ended December 31, 2024 due mainly to a $1.4 billion goodwill impairment recorded in 2023, a $156.8 million decrease in acquisition, integration and reorganization costs related to our merger with PacWest, and a $65.0 million decrease in insurance and assessments expense for both the regular FDIC assessment and the special assessment.
 
Income Taxes
 
Q4-2024 vs Q3-2024
 
Income tax expense of $13.2 million was recorded for the fourth quarter resulting in an effective tax rate of 18.8% compared to income tax expense of $2.7 million for the third quarter and an effective tax rate of 23.7%. The lower fourth quarter effective tax rate was due primarily to tax benefits resulted from recording deferred tax assets at higher state tax rates.
 
Full Year 2024 vs Full Year 2023
 
Income tax expense of $41.8 million was recorded for the year ended December 31, 2024 resulting in an effective tax rate of 24.8% compared to an income tax benefit of $312.2 million for the year ended December 31, 2023 and an effective tax rate of 14.1%. The lower effective tax rate in 2023 was due primarily to non-deductible goodwill impairment recorded in 2023. Excluding non-deductible goodwill impairment of $1.0 billion, the effective tax rate was 26.2% for the year ended December 31, 2023.
 
6
BALANCE SHEET HIGHLIGHTS
 
   
December 31,
    
September 30,
    
December 31,
    
Increase (Decrease)
  
Selected Balance Sheet Items
  
2024
    
2024
    
2023
    
QoQ
    
YoY
  
 
  
(In thousands)
  
Cash and cash equivalents
  
$
2,502,212
    
$
2,554,227
    
$
5,377,576
    
$
(52,015
)
  
$
(2,875,364
)
Securities available-for-sale
    
2,246,839
      
2,300,284
      
2,346,864
      
(53,445
)
    
(100,025
)
Securities held-to-maturity
    
2,306,149
      
2,301,263
      
2,287,291
      
4,886
      
18,858
  
Loans held for sale
    
26,331
      
28,639
      
122,757
      
(2,308
)
    
(96,426
)
Loans and leases held for investment, net of deferred fees
    
23,781,663
      
23,527,777
      
25,489,687
      
253,886
      
(1,708,024
)
Total assets
    
33,542,864
      
33,432,613
      
38,534,064
      
110,251
      
(4,991,200
)
 
                                        
Noninterest-bearing deposits
  
$
7,719,913
    
$
7,811,796
    
$
7,774,254
    
$
(91,883
)
  
$
(54,341
)
Total deposits
    
27,191,909
      
26,828,269
      
30,401,769
      
363,640
      
(3,209,860
)
Borrowings
    
1,391,814
      
1,591,833
      
2,911,322
      
(200,019
)
    
(1,519,508
)
Total liabilities
    
30,042,915
      
29,936,415
      
35,143,299
      
106,500
      
(5,100,384
)
Total stockholders' equity
    
3,499,949
      
3,496,198
      
3,390,765
      
3,751
      
109,184
  
 
Securities
 
The balance of securities held-to-maturity (“HTM”) remained consistent through the fourth quarter and totaled $2.3 billion at December 31, 2024. As of December 31, 2024, HTM securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) (“AOCI”) of $157.9 million remaining from the balance established at the time of transfer from available-for-sale on June 1, 2022.
 
Securities available-for-sale (“AFS”) decreased by $53.4 million during the fourth quarter to $2.2 billion at December 31, 2024. AFS securities had aggregate unrealized net after-tax losses in AOCI of $200.1 million. These AFS unrealized net losses related primarily to changes in overall interest rates and spreads and the resulting impact on valuations.
 
7
Loans and Leases
 
The following table sets forth the composition, by loan category, of our loan and lease portfolio held for investment, net of deferred fees, as of the dates indicated:
 
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Composition of Loans and Leases
  
2024
    
2024
    
2024
    
2024
    
2023
  
   
(Dollars in thousands)
  
Real estate mortgage:
                              
Commercial
  
$
4,578,772
    
$
4,557,939
    
$
4,722,585
    
$
4,896,544
    
$
5,026,497
  
Multi-family
    
6,041,713
      
6,009,280
      
5,984,930
      
6,121,472
      
6,025,179
  
Other residential
    
2,807,174
      
2,767,187
      
2,866,085
      
4,949,383
      
5,060,309
  
Total real estate mortgage
    
13,427,659
      
13,334,406
      
13,573,600
      
15,967,399
      
16,111,985
  
Real estate construction and land:
                                        
Commercial
    
799,131
      
836,902
      
784,166
      
775,021
      
759,585
  
Residential
    
2,373,162
      
2,622,507
      
2,573,431
      
2,470,333
      
2,399,684
  
Total real estate construction and land
    
3,172,293
      
3,459,409
      
3,357,597
      
3,245,354
      
3,159,269
  
Total real estate
    
16,599,952
      
16,793,815
      
16,931,197
      
19,212,753
      
19,271,254
  
Commercial:
                                        
Asset-based
    
2,087,969
      
2,115,311
      
1,968,713
      
2,061,016
      
2,189,085
  
Venture capital
    
1,537,776
      
1,353,626
      
1,456,122
      
1,513,641
      
1,446,362
  
Other commercial
    
3,153,084
      
2,850,535
      
2,446,974
      
2,245,910
      
2,129,860
  
Total commercial
    
6,778,829
      
6,319,472
      
5,871,809
      
5,820,567
      
5,765,307
  
Consumer
    
402,882
      
414,490
      
425,903
      
439,702
      
453,126
  
Total loans and leases held for investment, net of deferred fees
  
$
23,781,663
    
$
23,527,777
    
$
23,228,909
    
$
25,473,022
    
$
25,489,687
  
 
                                        
Total unfunded loan commitments
  
$
4,887,690
    
$
5,008,449
    
$
5,256,473
    
$
5,482,672
    
$
5,578,907
  

Composition as % of Total
  
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Loans and Leases
  
2024
    
2024
    
2024
    
2024
    
2023
  
Real estate mortgage:
                              
Commercial
    
19
%
    
19
%
    
20
%
    
19
%
    
20
%
Multi-family
    
26
%
    
25
%
    
26
%
    
24
%
    
23
%
Other residential
    
12
%
    
12
%
    
12
%
    
19
%
    
20
%
Total real estate mortgage
    
57
%
    
56
%
    
58
%
    
62
%
    
63
%
Real estate construction and land:
                                        
Commercial
    
3
%
    
4
%
    
4
%
    
3
%
    
3
%
Residential
    
10
%
    
11
%
    
11
%
    
10
%
    
9
%
Total real estate construction and land
    
13
%
    
15
%
    
15
%
    
13
%
    
12
%
Total real estate
    
70
%
    
71
%
    
73
%
    
75
%
    
75
%
Commercial:
                                        
Asset-based
    
9
%
    
9
%
    
8
%
    
8
%
    
9
%
Venture capital
    
6
%
    
6
%
    
6
%
    
6
%
    
6
%
Other commercial
    
13
%
    
12
%
    
11
%
    
9
%
    
8
%
Total commercial
    
28
%
    
27
%
    
25
%
    
23
%
    
23
%
Consumer
    
2
%
    
2
%
    
2
%
    
2
%
    
2
%
Total loans and leases held for investment, net of deferred fees
    
100
%
    
100
%
    
100
%
    
100
%
    
100
%

8
Total loans and leases held for investment, net of deferred fees, increased by $253.9 million in the fourth quarter and totaled $23.8 billion at December 31, 2024. The increase in loans and leases held for investment was due primarily to increased balances in the warehouse lending, equity funds, and residential mortgage loan portfolios, offset partially by a decrease in the residential real estate construction loan portfolio. Loan originations including production, purchased loans, and unfunded new commitments were $1.8 billion in the fourth quarter with rate on new production at a weighted average interest rate of 7.02%.
 
Credit Quality
 
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Asset Quality Information and Ratios
  
2024
    
2024
    
2024
    
2024
    
2023
  
   
(Dollars in thousands)
  
Delinquent loans and leases held for
                              
investment:
                              
30 to 89 days delinquent
  
$
91,347
    
$
52,927
    
$
27,962
    
$
178,421
    
$
113,307
  
90+ days delinquent
    
88,846
      
72,037
      
55,792
      
57,573
      
30,881
  
Total delinquent loans and leases
  
$
180,193
    
$
124,964
    
$
83,754
    
$
235,994
    
$
144,188
  
                                         
Total delinquent loans and leases to loans and leases held for investment
    
0.76
%
    
0.53
%
    
0.36
%
    
0.93
%
    
0.57
%
 
                                        
Nonperforming assets, excluding loans
                                  
held for sale:
                                        
Nonaccrual loans and leases
  
$
189,605
    
$
168,341
    
$
117,070
    
$
145,785
    
$
62,527
  
90+ days delinquent loans and still accruing
    
-
      
-
      
-
      
-
      
11,750
  
Total nonperforming loans and leases ("NPLs")
    
189,605
      
168,341
      
117,070
      
145,785
      
74,277
  
Foreclosed assets, net
    
9,734
      
8,661
      
13,302
      
12,488
      
7,394
  
Total nonperforming assets ("NPAs")
  
$
199,339
    
$
177,002
    
$
130,372
    
$
158,273
    
$
81,671
  
Classified loans and leases held for investment
  
$
563,502
    
$
533,591
    
$
415,498
    
$
366,729
    
$
228,417
  
Allowance for loan and lease losses
  
$
239,360
    
$
254,345
    
$
247,762
    
$
291,503
    
$
281,687
  
Allowance for loan and lease losses to NPLs
    
126.24
%
    
151.09
%
    
211.64
%
    
199.95
%
    
379.24
%
NPLs to loans and leases held for investment
    
0.80
%
    
0.72
%
    
0.50
%
    
0.57
%
    
0.29
%
NPAs to total assets
    
0.59
%
    
0.53
%
    
0.37
%
    
0.44
%
    
0.21
%
Classified loans and leases to loans and leases held for investment
    
2.37
%
    
2.27
%
    
1.79
%
    
1.44
%
    
0.90
%

We continued to remain conservative on risk rating of loans and leases. Increases to classified loans and leases that remained on accrual status resulted from downward migration for loans and leases where performance metrics deteriorated but with no current expectation of loss. Nonperforming, classified and delinquent loan inflows were primarily driven by one customer relationship with two loans with no expected loss due to collateral coverage. Our overall loan portfolio continues to benefit from strong underwriting, borrower strength and good credit metrics.
 
9
At December 31, 2024, total delinquent loans and leases were $180.2 million, compared to $125.0 million at September 30, 2024. The $55.2 million increase in total delinquent loans was due mainly to increases in the 30 to 89 days delinquent category of $20.2 million in other residential real estate mortgage loans, $10.4 million in commercial real estate mortgage loans, and $10.3 million in multi-family mortgage loans. In the 90 or more days delinquent category, there was a $21.9 million increase in multi-family mortgage loans, offset partially by a $6.9 million decrease in commercial real estate mortgage loans. Total delinquent loans and leases as a percentage of total loans and leases increased to 0.76% at December 31, 2024, as compared to 0.53% at September 30, 2024.
 
At December 31, 2024, nonperforming assets were $199.3 million, or 0.59% of total assets, compared to $177.0 million, or 0.53% of total assets, as of September 30, 2024. At December 31, 2024, nonperforming assets included $9.7 million of foreclosed assets, consisting entirely of single-family residences.
 
At December 31, 2024, nonperforming loans were $189.6 million, compared to $168.3 million at September 30, 2024. During the fourth quarter, nonperforming loans increased by $21.3 million due to additions of $56.9 million, offset partially by charge-offs of $22.0 million and payoffs and paydowns of $13.6 million. The addition to nonperforming loans was mainly related to aforementioned two commercial loans from one customer relationship.
 
Nonperforming loans and leases as a percentage of loans and leases held for investment increased to 0.80% at December 31, 2024 compared to 0.72% at September 30, 2024.
 
10
Allowance for Credit Losses – Loans
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Allowance for Credit Losses - Loans
  
2024
    
2024
    
2023
    
2024
    
2023
  
 
  
(Dollars in thousands)
  
Allowance for loan and lease losses
                              
("ALLL"):
                              
Balance at beginning of period
  
$
254,345
    
$
247,762
    
$
222,297
    
$
281,687
    
$
200,732
  
Initial ALLL on acquired PCD loans
    
-
      
-
      
25,623
      
-
      
25,623
  
Charge-offs
    
(27,696
)
    
(4,163
)
    
(14,628
)
    
(94,943
)
    
(63,428
)
Recoveries
    
1,211
      
1,746
      
1,395
      
9,116
      
5,260
  
Net charge-offs
    
(26,485
)
    
(2,417
)
    
(13,233
)
    
(85,827
)
    
(58,168
)
Provision for loan losses
    
11,500
      
9,000
      
47,000
      
43,500
      
113,500
  
Balance at end of period
  
$
239,360
    
$
254,345
    
$
281,687
    
$
239,360
    
$
281,687
  
 
                                        
Reserve for unfunded loan commitments
                                  
("RUC"):
                                        
Balance at beginning of period
  
$
27,571
    
$
27,571
    
$
29,571
    
$
29,571
    
$
91,071
  
(Negative provision) provision for credit losses
    
1,500
      
-
      
-
      
(500
)
    
(61,500
)
Balance at end of period
  
$
29,071
    
$
27,571
    
$
29,571
    
$
29,071
    
$
29,571
  
 
                                        
Allowance for credit losses ("ACL") -
                                        
Loans:
                                        
Balance at beginning of period
  
$
281,916
    
$
275,333
    
$
251,868
    
$
311,258
    
$
291,803
  
Initial ALLL on acquired PCD loans
    
-
      
-
      
25,623
      
-
      
25,623
  
Charge-offs
    
(27,696
)
    
(4,163
)
    
(14,628
)
    
(94,943
)
    
(63,428
)
Recoveries
    
1,211
      
1,746
      
1,395
      
9,116
      
5,260
  
Net charge-offs
    
(26,485
)
    
(2,417
)
    
(13,233
)
    
(85,827
)
    
(58,168
)
Provision for credit losses
    
13,000
      
9,000
      
47,000
      
43,000
      
52,000
  
Balance at end of period
  
$
268,431
    
$
281,916
    
$
311,258
    
$
268,431
    
$
311,258
  
 
                                        
ALLL to loans and leases held for investment
    
1.01
%
    
1.08
%
    
1.11
%
    
1.01
%
    
1.11
%
ACL to loans and leases held for investment
    
1.13
%
    
1.20
%
    
1.22
%
    
1.13
%
    
1.22
%
ACL to NPLs
    
141.57
%
    
167.47
%
    
419.05
%
    
141.57
%
    
419.05
%
ACL to NPAs
    
134.66
%
    
159.27
%
    
381.11
%
    
134.66
%
    
381.11
%
Annualized net charge-offs to average loans and leases
    
0.45
%
    
0.04
%
    
0.22
%
    
0.35
%
    
0.23
%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $268.4 million, or 1.13% of total loans and leases, at December 31, 2024, compared to $281.9 million, or 1.20% of total loans and leases, at September 30, 2024. The $13.5 million decrease in the allowance was due to net charge-offs of $26.5 million, offset partially by the $13.0 million provision. The ACL coverage ratio decreased from last quarter driven by improvement in the economic forecast, a mix shift towards loan categories with lower expected losses, and the impact of charge-offs, offset partially by the impact of changes in risk ratings.
 
11
Our ability to absorb credit losses is also bolstered by (i) $117.0 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on our $2.3 billion single-family residential mortgage loan portfolio; and (ii) unearned credit marks of $22.5 million on approximately $1.7 billion of purchased loans without credit deterioration that were originated by Banc of California prior to the merger. When the loss coverage from the credit-linked notes and unearned credit marks is added to our allowance for credit losses, this provides additional economic coverage on top of our ACL ratio. We refer to this adjusted ACL ratio as our economic coverage ratio(1), which equaled 1.72% of total loans and leases at December 31, 2024.
 
The ACL coverage of nonperforming loans was 142% at December 31, 2024 compared to 167% at September 30, 2024.
 
Net charge-offs were 0.45% of average loans and leases (annualized) for the fourth quarter, compared to 0.04% for the third quarter. The increase in net charge-offs in the fourth quarter was attributable primarily to a commercial loan exposure with isolated risk and one Civic loan, both of which migrated to nonperforming loan status in the third quarter.
 

 (1)
Non-GAAP measure; refer to section 'Non-GAAP Measures'
 
Deposits and Client Investment Funds
 
The following table sets forth the composition of our deposits at the dates indicated:
 
 
  
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Composition of Deposits
  
2024
    
2024
    
2024
    
2024
    
2023
  
 
  
(Dollars in thousands)
  
Noninterest-bearing checking
  
$
7,719,913
    
$
7,811,796
    
$
7,825,007
    
$
7,833,608
    
$
7,774,254
  
Interest-bearing:
                                        
Checking
    
7,610,705
      
7,539,899
      
7,309,833
      
7,836,097
      
7,808,764
  
Money market
    
5,361,635
      
5,039,607
      
4,837,025
      
5,020,110
      
6,187,889
  
Savings
    
1,933,232
      
1,992,364
      
2,040,461
      
2,016,398
      
1,997,989
  
Time deposits:
                                        
Non-brokered
    
2,488,217
      
2,451,340
      
2,758,067
      
2,761,836
      
3,139,270
  
Brokered
    
2,078,207
      
1,993,263
      
4,034,057
      
3,424,358
      
3,493,603
  
Total time deposits
    
4,566,424
      
4,444,603
      
6,792,124
      
6,186,194
      
6,632,873
  
Total interest-bearing
    
19,471,996
      
19,016,473
      
20,979,443
      
21,058,799
      
22,627,515
  
Total deposits
  
$
27,191,909
    
$
26,828,269
    
$
28,804,450
    
$
28,892,407
    
$
30,401,769
  

   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Composition as % of Total Deposits
  
2024
    
2024
    
2024
    
2024
    
2023
  
 
                              
Noninterest-bearing checking
    
28
%
    
29
%
    
27
%
    
27
%
    
26
%
Interest-bearing:
                                        
Checking
    
28
%
    
28
%
    
25
%
    
27
%
    
26
%
Money market
    
20
%
    
19
%
    
17
%
    
17
%
    
20
%
Savings
    
7
%
    
7
%
    
7
%
    
7
%
    
6
%
Time deposits:
                                        
Non-brokered
    
9
%
    
9
%
    
10
%
    
10
%
    
10
%
Brokered
    
8
%
    
8
%
    
14
%
    
12
%
    
12
%
Total time deposits
    
17
%
    
17
%
    
24
%
    
22
%
    
22
%
Total interest-bearing
    
72
%
    
71
%
    
73
%
    
73
%
    
74
%
Total deposits
    
100
%
    
100
%
    
100
%
    
100
%
    
100
%

12
Total deposits increased by $363.6 million during the fourth quarter to $27.2 billion at December 31, 2024.
 
Noninterest-bearing checking totaled $7.72 billion and represented 28% of total deposits at December 31, 2024, compared to $7.81 billion, or 29% of total deposits, at September 30, 2024.
 
Uninsured and uncollateralized deposits of $7.2 billion represented 26% of total deposits at December 31, 2024 compared to uninsured and uncollateralized deposits of $6.7 billion or 25% of total deposits at September 30, 2024.
 
In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These alternative options include investments managed by BofCal Asset Management Inc. (“BAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $1.5 billion as of December 31, 2024, of which $0.7 billion was managed by BAM.
 
Borrowings
 
Borrowings decreased $200.0 million to $1.4 billion at December 31, 2024 from $1.6 billion at September 30, 2024 due to lower short-term borrowings.
 
Equity
 
During the fourth quarter, total stockholders’ equity increased by $3.8 million to $3.5 billion and tangible common equity(1) increased by $13.6 million to $2.7 billion at December 31, 2024. The increase in total stockholders’ equity for the fourth quarter resulted primarily from net earnings of $56.9 million, offset partially by an increase in the unrealized after-tax net loss in AOCI for AFS securities of $38.3 million and common and preferred stock dividends of $27.9 million.
 
At December 31, 2024, book value per common share increased to $17.78 compared to $17.75 at September 30, 2024, and tangible book value per common share(1) increased to $15.72 compared to $15.63 at September 30, 2024.
 

 (1)
Non-GAAP measures; refer to section 'Non-GAAP Measures'
 
13
CAPITAL AND LIQUIDITY
 
Capital ratios remain strong with total risk-based capital at 17.05% and a tier 1 leverage ratio of 10.15% at December 31, 2024.
 
The following table sets forth our regulatory capital ratios as of the dates indicated:
 
 
  
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
Capital Ratios
  
2024 (1)
    
2024
    
2024
    
2024
    
2023
  
 
                              
Banc of California, Inc.
                              
Total risk-based capital ratio
    
17.05
%
    
17.00
%
    
16.57
%
    
16.40
%
    
16.43
%
Tier 1 risk-based capital ratio
    
12.97
%
    
12.88
%
    
12.62
%
    
12.38
%
    
12.44
%
Common equity tier 1 capital ratio
    
10.55
%
    
10.46
%
    
10.27
%
    
10.09
%
    
10.14
%
Tier 1 leverage capital ratio
    
10.15
%
    
9.83
%
    
9.51
%
    
9.12
%
    
9.00
%
 
                                        
Banc of California
                                        
Total risk-based capital ratio
    
16.65
%
    
16.61
%
    
16.19
%
    
15.88
%
    
15.75
%
Tier 1 risk-based capital ratio
    
14.17
%
    
14.08
%
    
13.77
%
    
13.34
%
    
13.27
%
Common equity tier 1 capital ratio
    
14.17
%
    
14.08
%
    
13.77
%
    
13.34
%
    
13.27
%
Tier 1 leverage capital ratio
    
11.08
%
    
10.74
%
    
10.38
%
    
9.84
%
    
9.62
%

(1)
Capital information for December 31, 2024 is preliminary.

At December 31, 2024, immediately available cash and cash equivalents were $2.3 billion, a decrease of $52.9 million from September 30, 2024. Combined with total available borrowing capacity of $11.5 billion and unpledged AFS securities of $2.0 billion, total available liquidity was $15.9 billion at the end of the fourth quarter.
 
14
Conference Call
 
The Company will host a conference call to discuss its fourth quarter 2024 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, January 23, 2025. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 4964279. 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 6452827.
 
About Banc of California, Inc.
 
Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $33 billion in assets and the parent company of Banc of California. Banc of California is one of the nation’s premier relationship-based business banks, providing banking and treasury management services to small-, middle-market, and venture-backed businesses. Banc of California is the largest independent bank headquartered in Los Angeles and the third largest bank headquartered in California and offers a broad range of loan and deposit products and services through 80 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide.  The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. For more information, please visit us at  www.bancofcal.com.
 
Forward-Looking Statements and Other Matters
 
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by the Company with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.
 
16
Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; and in the case of our recent acquisition of PacWest Bancorp (“PacWest”), reputational risk, regulatory risk and potential adverse reactions of the Company's or PacWest's customers, suppliers, vendors, employees or other business partners; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and from time to time in other documents that we file with or furnish to the SEC.
 
Non-GAAP Financial Measures
 
Included in this press release are certain non-GAAP financial measures, such as tangible assets, tangible equity to tangible assets, tangible book value per common share, return on average tangible common equity, adjusted return on average tangible common equity, adjusted net earnings (loss), adjusted noninterest expense, and economic coverage ratio, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Measures” section of this release for additional detail including reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.
 
Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (310) 424-1230
Joe Kauder, (310) 844-5224
Ann DeVries, (646) 376-7011
 
Media Contact:
Debora Vrana, Banc of California
(213) 533-3122
Deb.Vrana@bancofcal.com
Source: Banc of California, Inc.
 
17
BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2024
    
2024
    
2024
    
2024
    
2023
  
   
(Dollars in thousands)
  
ASSETS:
                              
Cash and due from banks
  
$
192,006
    
$
251,869
    
$
203,467
    
$
199,922
    
$
202,427
  
Interest-earning deposits in financial institutions
    
2,310,206
      
2,302,358
      
2,495,343
      
2,885,306
      
5,175,149
  
Total cash and cash equivalents
    
2,502,212
      
2,554,227
      
2,698,810
      
3,085,228
      
5,377,576
  
                                         
Securities available-for-sale
    
2,246,839
      
2,300,284
      
2,244,031
      
2,286,682
      
2,346,864
  
Securities held-to-maturity
    
2,306,149
      
2,301,263
      
2,296,708
      
2,291,984
      
2,287,291
  
FRB and FHLB stock
    
147,773
      
145,123
      
132,380
      
129,314
      
126,346
  
   Total investment securities
    
4,700,761
      
4,746,670
      
4,673,119
      
4,707,980
      
4,760,501
  
                                         
Loans held for sale
    
26,331
      
28,639
      
1,935,455
      
80,752
      
122,757
  
                                         
Gross loans and leases held for investment
    
23,808,205
      
23,553,534
      
23,255,297
      
25,517,028
      
25,534,730
  
Deferred fees, net
    
(26,542
)
    
(25,757
)
    
(26,388
)
    
(44,006
)
    
(45,043
)
Total loans and leases held for investment, net of deferred fees
    
23,781,663
      
23,527,777
      
23,228,909
      
25,473,022
      
25,489,687
  
Allowance for loan and lease losses
    
(239,360
)
    
(254,345
)
    
(247,762
)
    
(291,503
)
    
(281,687
)
Total loans and leases held for investment, net
    
23,542,303
      
23,273,432
      
22,981,147
      
25,181,519
      
25,208,000
  
                                         
Equipment leased to others under operating leases
    
307,188
      
314,998
      
335,968
      
339,925
      
344,325
  
Premises and equipment, net
    
142,546
      
143,200
      
145,734
      
144,912
      
146,798
  
Bank owned life insurance
    
339,517
      
343,212
      
341,779
      
341,806
      
339,643
  
Goodwill
    
214,521
      
216,770
      
215,925
      
198,627
      
198,627
  
Intangible assets, net
    
132,944
      
140,562
      
148,894
      
157,226
      
165,477
  
Deferred tax asset, net
    
720,587
      
706,849
      
738,534
      
741,158
      
739,111
  
Other assets
    
913,954
      
964,054
      
1,028,474
      
1,094,383
      
1,131,249
  
Total assets
  
$
33,542,864
    
$
33,432,613
    
$
35,243,839
    
$
36,073,516
    
$
38,534,064
  
                                         
LIABILITIES:
                                        
Noninterest-bearing deposits
  
$
7,719,913
    
$
7,811,796
    
$
7,825,007
    
$
7,833,608
    
$
7,774,254
  
Interest-bearing deposits
    
19,471,996
      
19,016,473
      
20,979,443
      
21,058,799
      
22,627,515
  
Total deposits
    
27,191,909
      
26,828,269
      
28,804,450
      
28,892,407
      
30,401,769
  
Borrowings
    
1,391,814
      
1,591,833
      
1,440,875
      
2,139,498
      
2,911,322
  
Subordinated debt
    
941,923
      
942,151
      
939,287
      
937,717
      
936,599
  
Accrued interest payable and other liabilities
    
517,269
      
574,162
      
651,379
      
709,744
      
893,609
  
Total liabilities
    
30,042,915
      
29,936,415
      
31,835,991
      
32,679,366
      
35,143,299
  
                                         
STOCKHOLDERS' EQUITY:
                                        
Preferred stock
    
498,516
      
498,516
      
498,516
      
498,516
      
498,516
  
Common stock
    
1,586
      
1,586
      
1,583
      
1,583
      
1,577
  
Class B non-voting common stock
    
5
      
5
      
5
      
5
      
5
  
Non-voting common stock equivalents
    
98
      
98
      
101
      
101
      
108
  
Additional paid-in-capital
    
3,785,725
      
3,802,314
      
3,813,312
      
3,827,777
      
3,840,974
  
Retained deficit
    
(431,201
)
    
(478,173
)
    
(477,010
)
    
(497,396
)
    
(518,301
)
Accumulated other comprehensive loss, net
    
(354,780
)
    
(328,148
)
    
(428,659
)
    
(436,436
)
    
(432,114
)
Total stockholders’ equity
    
3,499,949
      
3,496,198
      
3,407,848
      
3,394,150
      
3,390,765
  
Total liabilities and stockholders’ equity
  
$
33,542,864
    
$
33,432,613
    
$
35,243,839
    
$
36,073,516
    
$
38,534,064
  
                                         
Common shares outstanding (1)
    
168,825,656
      
168,879,566
      
168,875,712
      
169,013,629
      
168,959,063
  

(1)
Common shares outstanding include non-voting common equivalents that are participating securities.
 
18
BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
September 30,
    
December 31,
    
December 31,
  
   
2024
    
2024
    
2023
    
2024
    
2023
  
   
(In thousands, except per share amounts)
  
Interest income:
                              
Loans and leases
  
$
357,303
    
$
369,913
    
$
346,308
    
$
1,501,534
    
$
1,496,357
  
Investment securities
    
37,743
      
34,912
      
41,280
      
140,794
      
174,996
  
Deposits in financial institutions
    
29,473
      
42,068
      
79,652
      
170,377
      
299,647
  
Total interest income
    
424,519
      
446,893
      
467,240
      
1,812,705
      
1,971,000
  
Interest expense:
                                        
Deposits
    
154,085
      
180,986
      
207,760
      
715,984
      
748,423
  
Borrowings
    
18,993
      
16,970
      
92,474
      
104,398
      
416,744
  
Subordinated debt
    
16,156
      
16,762
      
15,955
      
66,273
      
58,705
  
Total interest expense
    
189,234
      
214,718
      
316,189
      
886,655
      
1,223,872
  
Net interest income
    
235,285
      
232,175
      
151,051
      
926,050
      
747,128
  
Provision for credit losses
    
12,801
      
9,000
      
47,000
      
42,801
      
52,000
  
Net interest income after provision for credit losses
    
222,484
      
223,175
      
104,051
      
883,249
      
695,128
  
Noninterest income:
                                        
Service charges on deposit accounts
    
4,770
      
4,568
      
4,562
      
18,583
      
16,468
  
Other commissions and fees
    
8,231
      
8,256
      
8,860
      
33,258
      
38,086
  
Leased equipment income
    
10,730
      
17,176
      
12,369
      
51,109
      
63,167
  
Gain (loss) on sale of loans and leases
    
20
      
(62
)
    
(3,526
)
    
645
      
(161,346
)
Loss on sale of securities
    
(454
)
    
(59,946
)
    
(442,413
)
    
(60,400
)
    
(442,413
)
Dividends and gains on equity investments
    
18
      
3,730
      
8,138
      
7,982
      
15,731
  
Warrant income (loss)
    
343
      
211
      
(173
)
    
408
      
(718
)
LOCOM HFS adjustment
    
(3
)
    
(74
)
    
3,175
      
215
      
(8,461
)
Other income
    
5,334
      
10,689
      
8,606
      
25,345
      
31,201
  
Total noninterest income (loss)
    
28,989
      
(15,452
)
    
(400,402
)
    
77,145
      
(448,285
)
Noninterest expense:
                                        
Compensation
    
77,661
      
85,585
      
89,354
      
341,396
      
332,353
  
Occupancy
    
15,678
      
16,892
      
15,925
      
67,993
      
61,668
  
Information technology and data processing
    
14,546
      
14,995
      
13,099
      
60,418
      
51,805
  
Other professional services
    
5,498
      
5,101
      
2,980
      
20,857
      
24,623
  
Insurance and assessments
    
11,179
      
12,708
      
60,016
      
70,779
      
135,666
  
Intangible asset amortization
    
7,770
      
8,485
      
4,230
      
33,143
      
11,419
  
Leased equipment depreciation
    
7,096
      
7,144
      
7,447
      
29,271
      
34,243
  
Acquisition, integration and reorganization costs
    
(1,023
)
    
(510
)
    
111,800
      
(14,183
)
    
142,633
  
Customer related expense
    
31,672
      
34,475
      
45,826
      
129,471
      
124,104
  
Loan expense
    
4,489
      
3,994
      
4,446
      
17,306
      
20,458
  
Goodwill impairment
    
-
      
-
      
-
      
-
      
1,376,736
  
Other expense
    
6,804
      
7,340
      
8,515
      
35,289
      
142,473
  
Total noninterest expense
    
181,370
      
196,209
      
363,638
      
791,740
      
2,458,181
  
Earnings (loss) before income taxes
    
70,103
      
11,514
      
(659,989
)
    
168,654
      
(2,211,338
)
Income tax expense (benefit)
    
13,184
      
2,730
      
(177,034
)
    
41,766
      
(312,201
)
Net earnings (loss)
    
56,919
      
8,784
      
(482,955
)
    
126,888
      
(1,899,137
)
Preferred stock dividends
    
9,947
      
9,947
      
9,947
      
39,788
      
39,788
  
Net earnings (loss) available to common and equivalent stockholders
  
$
46,972
    
$
(1,163
)
  
$
(492,902
)
  
$
87,100
    
$
(1,938,925
)
                                         
Basic and diluted earnings (loss) per common share (1)
  
$
0.28
    
$
(0.01
)
  
$
(4.55
)
  
$
0.52
    
$
(22.71
)





















Weighted average number of common shares outstanding:



















Basic

168,604


168,583


108,290


168,441


85,394
Diluted

169,732


168,583


108,290


168,684


85,394

(1)
Common shares include non-voting common equivalents that are participating securities.
 
19
BANC OF CALIFORNIA, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
                               
   
Three Months Ended
      
Year Ended
  
   
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Profitability and Other Ratios
  
2024
    
2024
    
2023
    
2024
    
2023
  
Return on average assets (1)
    
0.67
%
    
0.10
%
    
(5.09
)%
    
0.36
%
    
(4.71
)%
Adjusted ROAA (1)(2)
    
0.67
%
    
0.59
%
    
(0.66
)%
    
0.50
%
    
0.13
%
Pre-tax, pre-provision, pre-goodwill impairment ROAA (1)(2)
    
0.98
%
    
0.24
%
    
(6.46
)%
    
0.60
%
    
(1.94
)%
Adjusted pre-tax, pre-provision, pre-goodwill impairment ROAA (1)(2)
    
0.98
%
    
0.92
%
    
(0.27
)%
    
0.78
%
    
0.20
%
Return on average equity (1)
    
6.50
%
    
1.01
%
    
(68.49
)%
    
3.70
%
    
(63.42
)%
Return on average tangible common equity (1)(2)
    
7.35
%
    
0.70
%
    
(102.87
)%
    
4.35
%
    
(35.27
)%
Adjusted return on average tangible common equity (1)(2)
    
7.35
%
    
7.30
%
    
(12.39
)%
    
6.23
%
    
1.06
%
Dividend payout ratio (3)
    
35.71
%
    
(1000.00
)%
    
(2.64
)%
    
76.92
%
    
(2.33
)%
Average yield on loans and leases (1)
    
6.01
%
    
6.18
%
    
5.82
%
    
6.11
%
    
5.92
%
Average yield on interest-earning assets (1)
    
5.48
%
    
5.63
%
    
5.23
%
    
5.58
%
    
5.21
%
Average cost of interest-bearing deposits (1)
    
3.18
%
    
3.52
%
    
3.80
%
    
3.48
%
    
3.46
%
Average total cost of deposits (1)
    
2.26
%
    
2.54
%
    
2.94
%
    
2.52
%
    
2.61
%
Average cost of interest-bearing liabilities (1)
    
3.48
%
    
3.80
%
    
4.51
%
    
3.79
%
    
4.14
%
Average total cost of funds (1)
    
2.55
%
    
2.82
%
    
3.68
%
    
2.84
%
    
3.34
%
Net interest spread
    
2.00
%
    
1.83
%
    
0.72
%
    
1.79
%
    
1.07
%
Net interest margin (1)
    
3.04
%
    
2.93
%
    
1.69
%
    
2.85
%
    
1.98
%
Noninterest income to total revenue (4)
    
10.97
%
    
(7.13
)%
    
160.58
%
    
7.69
%
    
(150.01
)%
Adjusted noninterest income to adjusted total revenue (2)(4)
    
11.12
%
    
16.08
%
    
21.76
%
    
12.93
%
    
18.10
%
Noninterest expense to average total assets (1)
    
2.15
%
    
2.27
%
    
3.83
%
    
2.24
%
    
6.10
%
Adjusted noninterest expense to average total assets (1)(2)
    
2.16
%
    
2.26
%
    
2.31
%
    
2.28
%
    
2.06
%
Efficiency ratio (2)(5)
    
65.49
%
    
68.02
%
    
127.34
%
    
72.47
%
    
124.91
%
Adjusted efficiency ratio (2)(6)
    
65.49
%
    
68.02
%
    
110.38
%
    
72.02
%
    
86.20
%
Loans to deposits ratio
    
87.56
%
    
87.80
%
    
84.25
%
    
87.56
%
    
84.25
%
Average loans and leases to average deposits
    
87.05
%
    
84.05
%
    
84.34
%
    
86.42
%
    
88.32
%
Average investment securities to average total assets
    
14.01
%
    
13.55
%
    
16.01
%
    
13.26
%
    
16.94
%
Average stockholders' equity to average total assets
    
10.39
%
    
10.03
%
    
7.43
%
    
9.71
%
    
7.43
%
 
                                        

(1)
Annualized.
(2)
Non-GAAP measure.
(3)
Ratio calculated by dividing dividends declared per common and equivalent share by
basic earnings per common and equivalent share.
(4)
Total revenue equals the sum of net interest income and noninterest income.
 
20
BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
   
Three Months Ended
  
   
December 31, 2024
    
September 30, 2024
    
December 31, 2023
  
         
Interest
    
Average
          
Interest
    
Average
          
Interest
    
Average
  
   
Average
    
Income/
    
Yield/
    
Average
    
Income/
    
Yield/
    
Average
    
Income/
    
Yield/
  
   
Balance
    
Expense
    
Cost
    
Balance
    
Expense
    
Cost
    
Balance
    
Expense
    
Cost
  
   
(Dollars in thousands)
  
Assets:
                                                      
Loans and leases (1)
  
$
23,649,271
    
$
357,303
      
6.01
%
  
$
23,803,691
    
$
369,913
      
6.18
%
  
$
23,608,246
    
$
346,308
      
5.82
%
Investment securities
    
4,700,742
      
37,743
      
3.19
%
    
4,665,549
      
34,912
      
2.98
%
    
6,024,737
      
41,280
      
2.72
%
Deposits in financial institutions
    
2,474,732
      
29,473
      
4.74
%
    
3,106,227
      
42,068
      
5.39
%
    
5,791,739
      
79,652
      
5.46
%
Total interest-earning assets
    
30,824,745
      
424,519
      
5.48
%
    
31,575,467
      
446,893
      
5.63
%
    
35,424,722
      
467,240
      
5.23
%
Other assets
    
2,737,283
                      
2,850,718
                      
2,215,665
                  
Total assets
  
$
33,562,028
                    
$
34,426,185
                    
$
37,640,387
                  
                                                                         
Liabilities and
                                                                        
Stockholders' Equity:
                                                                        
Interest checking
  
$
7,659,320
      
56,408
      
2.93
%
  
$
7,644,515
      
61,880
      
3.22
%
  
$
7,296,234
      
60,743
      
3.30
%
Money market
    
5,003,118
      
31,688
      
2.52
%
    
4,958,777
      
32,361
      
2.60
%
    
5,758,074
      
44,279
      
3.05
%
Savings
    
1,954,625
      
14,255
      
2.90
%
    
2,028,931
      
17,140
      
3.36
%
    
1,696,222
      
16,446
      
3.85
%
Time
    
4,645,115
      
51,734
      
4.43
%
    
5,841,965
      
69,605
      
4.74
%
    
6,915,504
      
86,292
      
4.95
%
Total interest-bearing deposits
    
19,262,178
      
154,085
      
3.18
%
    
20,474,188
      
180,986
      
3.52
%
    
21,666,034
      
207,760
      
3.80
%
Borrowings
    
1,399,080
      
18,993
      
5.40
%
    
1,063,541
      
16,970
      
6.35
%
    
5,229,425
      
92,474
      
7.02
%
Subordinated debt
    
942,221
      
16,156
      
6.82
%
    
940,480
      
16,762
      
7.09
%
    
894,219
      
15,955
      
7.08
%
Total interest-bearing liabilities
    
21,603,479
      
189,234
      
3.48
%
    
22,478,209
      
214,718
      
3.80
%
    
27,789,678
      
316,189
      
4.51
%
Noninterest-bearing demand deposits
    
7,905,750
                      
7,846,641
                      
6,326,511
                  
Other liabilities
    
566,635
                      
648,760
                      
726,414
                  
Total liabilities
    
30,075,864
                      
30,973,610
                      
34,842,603
                  
Stockholders' equity
    
3,486,164
                      
3,452,575
                      
2,797,784
                  
Total liabilities and stockholders' equity
  
$
33,562,028
                    
$
34,426,185
                    
$
37,640,387
                  
Net interest income (1)
          
$
235,285
                    
$
232,175
                    
$
151,051
          
Net interest spread
                    
2.00
%
                    
1.83
%
                    
0.72
%
Net interest margin
                    
3.04
%
                    
2.93
%
                    
1.69
%
                                                                         
Total deposits (2)
  
$
27,167,928
    
$
154,085
      
2.26
%
  
$
28,320,829
    
$
180,986
      
2.54
%
  
$
27,992,545
    
$
207,760
      
2.94
%
Total funds (3)
  
$
29,509,229
    
$
189,234
      
2.55
%
  
$
30,324,850
    
$
214,718
      
2.82
%
  
$
34,116,189
    
$
316,189
      
3.68
%
 
                                                                        

(1)
Includes net loan discount accretion of $20.7 million, $23.0 million and $15.7 million for the three months ended December 31, 2024,
September 30, 2024, and December 31, 2023.
(2)
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.  The cost of total deposits is
calculated as annualized interest expense on total deposits divided by average total deposits.
(3)
Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of total funds is
calculated as annualized total interest expense divided by average total funds.
 
21
BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
   
Year Ended
  
   
December 31, 2024
    
December 31, 2023
  
         
Interest
    
Average
          
Interest
    
Average
  
   
Average
    
Income/
    
Yield/
    
Average
    
Income/
    
Yield/
  
   
Balance
    
Expense
    
Cost
    
Balance
    
Expense
    
Cost
  
   
(Dollars in thousands)
  
Assets:
                                    
Loans and
                                    
leases (1)(2)(3)
  
$
24,569,650
    
$
1,501,534
      
6.11
%
  
$
25,330,351
    
$
1,498,701
      
5.92
%
Investment securities
    
4,686,615
      
140,794
      
3.00
%
    
6,827,059
      
174,996
      
2.56
%
Deposits in financial institutions
    
3,226,658
      
170,377
      
5.28
%
    
5,746,858
      
299,647
      
5.21
%
Total interest-earning assets (1)
    
32,482,923
      
1,812,705
      
5.58
%
    
37,904,268
      
1,973,344
      
5.21
%
Other assets
    
2,850,565
                      
2,389,112
                  
Total assets
  
$
35,333,488
                    
$
40,293,380
                  
                                                 
Liabilities and
                                                
Stockholders' Equity:
                                                
Interest checking
  
$
7,714,920
      
240,913
      
3.12
%
  
$
6,992,888
      
220,735
      
3.16
%
Money market
    
5,164,566
      
138,176
      
2.68
%
    
6,724,296
      
190,027
      
2.83
%
Savings
    
2,005,513
      
66,421
      
3.31
%
    
1,051,117
      
30,978
      
2.95
%
Time
    
5,714,821
      
270,474
      
4.73
%
    
6,840,920
      
306,683
      
4.48
%
Total interest-bearing deposits
    
20,599,820
      
715,984
      
3.48
%
    
21,609,221
      
748,423
      
3.46
%
Borrowings
    
1,838,819
      
104,398
      
5.68
%
    
7,068,826
      
416,744
      
5.90
%
Subordinated debt
    
939,528
      
66,273
      
7.05
%
    
875,621
      
58,705
      
6.70
%
Total interest-bearing liabilities
    
23,378,167
      
886,655
      
3.79
%
    
29,553,668
      
1,223,872
      
4.14
%
Noninterest-bearing demand deposits
    
7,829,976
                      
7,072,334
                  
Other liabilities
    
693,981
                      
672,950
                  
Total liabilities
    
31,902,124
                      
37,298,952
                  
Stockholders' equity
    
3,431,364
                      
2,994,428
                  
Total liabilities and stockholders' equity
  
$
35,333,488
                    
$
40,293,380
                  
Net interest income (1)(2)
          
$
926,050
                    
$
749,472
          
Net interest spread (1)
                    
1.79
%
                    
1.07
%
Net interest margin (1)
                    
2.85
%
                    
1.98
%
                                                 
Total deposits (4)
  
$
28,429,796
    
$
715,984
      
2.52
%
  
$
28,681,555
    
$
748,423
      
2.61
%
Total funds (5)
  
$
31,208,143
    
$
886,655
      
2.84
%
  
$
36,626,002
    
$
1,223,872
      
3.34
%
 
                                                

(1)
Tax equivalent.
(2)
Includes net loan discount accretion of $88.0 million and $9.7 million for the year ended
December 31, 2024 and 2023, respectively.
(3)
Includes tax-equivalent adjustments of $0.0 million and $2.3 million for the year ended
December 31, 2024 and 2023 related to tax-exempt income on loans.
The federal statutory tax rate utilized was 21%.
(4)
Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.
The cost of total deposits is calculated as annualized interest expense on total deposits divided by
average total deposits.
(5)
Total funds is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits.
The cost of total funds is calculated as annualized total interest expense divided by average total funds.

22
BANC OF CALIFORNIA, INC.
 
NON-GAAP MEASURES
 
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible assets, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity, adjusted net earnings (loss), adjusted noninterest expense, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.
 
Tangible assets is calculated by subtracting goodwill and other intangible assets from total assets. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to to common stockholders, after adjustment for amortization of intangible assets, goodwill impairment, and any unusual one-time items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.
 
Adjusted net earnings (loss) is calculated by adjusting net earnings (loss) by unusual, one-time items. ROAA is calculated by dividing annualized net earnings (loss) by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings (loss) by average assets.
 
Adjusted noninterest expense is calculated by subtracting acquisition, integration and reorganization costs from total noninterest expense.
 
Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases held for investment, net of deferred fees.
 
Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
 
The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.
 
23
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common Equity Ratio
  
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
and Tangible Book Value Per Share
  
2024
    
2024
    
2024
    
2024
    
2023
  

 
(Dollars in thousands, except per share amounts)
Stockholders' equity
  
$
3,499,949
    
$
3,496,198
    
$
3,407,848
    
$
3,394,150
    
$
3,390,765
  
Less: Preferred stock
    
498,516
      
498,516
      
498,516
      
498,516
      
498,516
  
Total common equity
    
3,001,433
      
2,997,682
      
2,909,332
      
2,895,634
      
2,892,249
  
Less: Goodwill and intangible assets
    
347,465
      
357,332
      
364,819
      
355,853
      
364,104
  
Tangible common equity
  
$
2,653,968
    
$
2,640,350
    
$
2,544,513
    
$
2,539,781
    
$
2,528,145
  
                                         
Total assets
  
$
33,542,864
    
$
33,432,613
    
$
35,243,839
    
$
36,073,516
    
$
38,534,064
  
Less: Goodwill and intangible assets
    
347,465
      
357,332
      
364,819
      
355,853
      
364,104
  
Tangible assets
  
$
33,195,399
    
$
33,075,281
    
$
34,879,020
    
$
35,717,663
    
$
38,169,960
  
                                         
Total stockholders' equity to total assets
    
10.43
%
    
10.46
%
    
9.67
%
    
9.41
%
    
8.80
%
Tangible common equity ratio (1)
    
7.99
%
    
7.98
%
    
7.30
%
    
7.11
%
    
6.62
%
Book value per common share (2)
  
$
17.78
    
$
17.75
    
$
17.23
    
$
17.13
    
$
17.12
  
Tangible book value per common share (3)
  
$
15.72
    
$
15.63
    
$
15.07
    
$
15.03
    
$
14.96
  
Common shares outstanding (4)
    
168,825,656
      
168,879,566
      
168,875,712
      
169,013,629
      
168,959,063
  
 
                                        

(1)
Tangible common equity divided by tangible assets.
(2)
Total common equity divided by common shares outstanding.
(3)
Tangible common equity divided by common shares outstanding.
(4)
Common shares outstanding include non-voting common equivalents that are participating securities.

24
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
                               
   
Three Months Ended
    
Year Ended
  
Return on Average Tangible
  
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Common Equity ("ROATCE")
  
2024
    
2024
    
2023
    
2024
    
2023
  
   
(Dollars in thousands)
  
Net earnings (loss)
  
$
56,919
    
$
8,784
    
$
(482,955
)
  
$
126,888
    
$
(1,899,137
)
                                         
Earnings (loss) before income taxes
  
$
70,103
    
$
11,514
    
$
(659,989
)
  
$
168,654
    
$
(2,211,338
)
Add: Intangible asset amortization
    
7,770
      
8,485
      
4,230
      
33,143
      
11,419
  
Add: Goodwill impairment
    
-
      
-
      
-
      
-
      
1,376,736
  
Adjusted earnings (loss) before income taxes used for ROATCE
    
77,873
      
19,999
      
(655,759
)
    
201,797
      
(823,183
)
Adjusted income tax expense (benefit) (1)
    
19,281
      
5,522
      
(92,593
)
    
49,965
      
(116,233
)
Adjusted net earnings (loss) for ROATCE
    
58,592
      
14,477
      
(563,166
)
    
151,832
      
(706,950
)
Less: Preferred stock dividends
    
9,947
      
9,947
      
9,947
      
39,788
      
39,788
  
Adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE
  
$
48,645
    
$
4,530
    
$
(573,113
)
  
$
112,044
    
$
(746,738
)
                                         
Average stockholders' equity
  
$
3,486,164
    
$
3,452,575
    
$
2,797,784
    
$
3,431,364
    
$
2,994,428
  
Less: Average goodwill and intangible assets
   
352,907
      
361,316
      
89,041
      
356,960
      
379,005
  
Less: Average preferred stock
    
498,516
      
498,516
      
498,516
      
498,516
      
498,516
  
Average tangible common equity
  
$
2,634,741
    
$
2,592,743
    
$
2,210,227
    
$
2,575,888
    
$
2,116,907
  
                                         
Return on average equity (2)
    
6.50
%
    
1.01
%
    
(68.49
)%
    
3.70
%
    
(63.42
)%
ROATCE (3)
    
7.35
%
    
0.70
%
    
(102.87
)%
    
4.35
%
    
(35.27
)%
 
                                        

(1)
Effective tax rates of 24.76%, 27.61%, and 14.12% used for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Effective tax rates of 24.76% and 14.12% used for the years ended December 31, 2024 and 2023.
(2)
Annualized net earnings (loss) divided by average stockholders' equity.
(3)
Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

25
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
                               
   
Three Months Ended
    
Year Ended
  
Adjusted Return on Average
  
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Tangible Common Equity ("ROATCE")
  
2024
    
2024
    
2023
    
2024
    
2023
  
   
(Dollars in thousands)
  
Net earnings (loss)
  
$
56,919
    
$
8,784
    
$
(482,955
)
  
$
126,888
    
$
(1,899,137
)
                                         
Earnings (loss) before income taxes
  
$
70,103
    
$
11,514
    
$
(659,989
)
  
$
168,654
    
$
(2,211,338
)
Add: Intangible asset amortization
    
7,770
      
8,485
      
4,230
      
33,143
      
11,419
  
Add: Goodwill impairment
    
-
      
-
      
-
      
-
      
1,376,736
  
Add: FDIC special assessment
    
-
      
-
      
32,746
      
4,814
      
32,746
  
Add: Loss on sale of securities
  
NA
      
59,946
      
442,413
      
59,946
      
442,413
  
Less: Acquisition, integration, and reorganization costs
  
NA
      
(510
)
    
111,800
      
(510
)
    
142,633
  
Add: Loan fair value loss adjustments
    
-
      
-
      
-
      
-
      
170,971
  
Add: Unfunded commitments fair value loss adjustments
    
-
      
-
      
-
      
-
      
106,767
  
Adjusted earnings before income taxes used for adjusted ROATCE
    
77,873
      
79,435
      
(68,800
)
    
266,047
      
72,347
  
Adjusted income tax expense (1)
    
19,281
      
21,932
      
(9,715
)
    
65,873
      
10,215
  
Adjusted net earnings for adjusted ROATCE
    
58,592
      
57,503
      
(59,085
)
    
200,174
      
62,132
  
Less: Preferred stock dividends
    
9,947
      
9,947
      
9,947
      
39,788
      
39,788
  
Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE
  
$
48,645
    
$
47,556
    
$
(69,032
)
  
$
160,386
    
$
22,344
  
                                         
Average stockholders' equity
  
$
3,486,164
    
$
3,452,575
    
$
2,797,784
    
$
3,431,364
    
$
2,994,428
  
Less: Average goodwill and intangible assets
    
352,907
      
361,316
      
89,041
      
356,960
      
379,005
  
Less: Average preferred stock
    
498,516
      
498,516
      
498,516
      
498,516
      
498,516
  
Average tangible common equity
  
$
2,634,741
    
$
2,592,743
    
$
2,210,227
    
$
2,575,888
    
$
2,116,907
  
                                         
Adjusted ROATCE (2)
    
7.35
%
    
7.30
%
    
(12.39
)%
    
6.23
%
    
1.06
%
 
                                        

(1)
Effective tax rates of 24.76%, 27.61%, and 14.12% used for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Effective tax rates of 24.76% and 14.12% used for the years ended December 31, 2024 and 2023.
(2)
Annualized adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.

26
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
                               
Adjusted Net Earnings, Net Earnings
  
Three Months Ended
    
Year Ended
  
Available to Common and Equivalent
  
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Stockholders, Diluted EPS, and ROAA
  
2024
    
2024
    
2023
    
2024
    
2023
  
   
(In thousands, except per share amounts)
  
Net earnings (loss)
  
$
56,919
    
$
8,784
    
$
(482,955
)
  
$
126,888
    
$
(1,899,137
)
                                         
Earnings (loss) before income taxes
  
$
70,103
    
$
11,514
    
$
(659,989
)
  
$
168,654
    
$
(2,211,338
)
Add: FDIC special assessment
    
-
      
-
      
32,746
      
4,814
      
32,746
  
Add: Loss on sale of securities
  
NA
      
59,946
      
442,413
      
59,946
      
442,413
  
Less: Acquisition, integration, and reorganization costs
  
NA
      
(510
)
    
111,800
      
(510
)
    
142,633
  
Add: Loan fair value loss adjustments
    
-
      
-
      
-
      
-
      
170,971
  
Add: Unfunded commitments fair value loss adjustments
    
-
      
-
      
-
      
-
      
106,767
  
Add: Goodwill impairment
    
-
      
-
      
-
      
-
      
1,376,736
  
Adjusted earnings (loss) before income taxes
    
70,103
      
70,950
      
(73,030
)
    
232,904
      
60,928
  
Adjusted income tax expense (benefit) (1)
    
13,184
      
19,589
      
(10,312
)
    
57,667
      
8,603
  
Adjusted net earnings (loss)
    
56,919
      
51,361
      
(62,718
)
    
175,237
      
52,325
  
Less: Preferred stock dividends
    
(9,947
)
    
(9,947
)
    
(9,947
)
    
(39,788
)
    
(39,788
)
Adjusted net earnings (loss) available to common and equivalent stockholders
  
$
46,972
    
$
41,414
    
$
(72,665
)
  
$
135,449
    
$
12,537
  
                                         
Weighted average common shares outstanding
     169,732


168,583


108,290


168,684


85,394
  
Diluted (loss) earnings per common share
  
$
0.28
    
$
(0.01
)
  
$
(4.55
)
  
$
0.52
    
$
(22.71
)
Adjusted diluted earnings per common share (2)
  
$
0.28
    
$
0.25
    
$
(0.67
)
  
$
0.80
    
$
0.15
  
                                         
Average total assets
  
$
33,562,028
    
$
34,426,185
    
$
37,640,387
    
$
35,333,488
    
$
40,293,380
  
Return on average assets ("ROAA") (3)
    
0.67
%
    
0.10
%
    
(5.09
)%
    
0.36
%
    
(4.71
)%
Adjusted ROAA (4)
    
0.67
%
    
0.59
%
    
(0.66
)%
    
0.50
%
    
0.13
%
 
                                        

(1)
Effective tax rates of 24.76%, 27.61%, and 14.12% used for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Effective tax rates of 24.76% and 14.12% used for the years ended December 31, 2024 and 2023.
(2)
Adjusted net earnings (loss) available to common and equivalent stockholders divided byweighted average common shares outstanding.
(3)
Annualized net earnings (loss) divided by average assets.
(4)
Annualized adjusted net earnings (loss) divided by average assets.
 
27
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
September 30,
    
December 31,
    
December 31,
  
Adjusted Noninterest Expense
  
2024
    
2024
    
2023 (1)
    
2024
    
2023
  
   
(Dollars in thousands)
  
Noninterest expense
  
$
181,370
    
$
196,209
    
$
363,638
    
$
791,740
    
$
2,458,181
  
Less: Acquisition, integration, and reorganization costs
    
1,023
      
510
      
(111,800
)
    
14,183
      
(142,633
)
Adjusted noninterest expense
  
$
182,393
    
$
196,719
    
$
251,838
    
$
805,923
    
$
2,315,548
  
 
                                        

(1)
Does not reflect normalization to include combined company expenses for the full quarter and incentive compensation adjusted to target.
 
28
BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
   
December 31,
  
Economic Coverage Ratio
  
2024
  
   
(Dollars in thousands)
  
       
Allowance for credit losses ("ACL")
  
$
268,431
  
Add: Unearned credit mark from purchase accounting (1)
    
22,473
  
Add: Credit-linked notes (2)
    
116,991
  
Adjusted allowance for credit losses
  
$
407,895
  
         
Loans and leases held for investment, net of deferred fees
  
$
23,781,663
  
         
ACL to loans and leases held for investment (3)
    
1.13
%
         
Economic coverage ratio (4)
    
1.72
%
 
        

(1)
Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with the non-PCD loans (purchased loans without credit deterioration at the time of the purchase) at the time of the acquisition.
(2)
Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.
(3)
Allowance for credit losses divided by loans and leases held for investment, net of deferred fees.
(4)
Adjusted allowance for credit losses divided by loans and leases held for investment, net of deferred fees.
 

29
Exhibit 99.2

 Investor Presentation  Fourth Quarter and Full Year 2024 Results  Draft v4.5  1/21/24 
 
 Forward-Looking Statements and Other Matters  This presentation includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, liquidity and capital ratios and other non-historical statements. Words or phrases such as “believe,” “will,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” “strategy,” or similar expressions are intended to identify these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by Banc of California, Inc. (the “Company”) with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.  Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to: (i) changes in general economic conditions, either nationally or in our market areas, including the impact of supply chain disruptions, and the risk of recession or an economic downturn; (ii) changes in the interest rate environment, including the recent and potential future changes in the FRB benchmark rate, which could adversely affect our revenue and expenses, the value of assets and obligations, the realization of deferred tax assets, the availability and cost of capital and liquidity, and the impacts of continuing or renewed inflation; (iii) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of our underwriting practices and the risk of fraud, any of which may lead to increased loan delinquencies, losses, and non-performing assets, and may result in our allowance for credit losses not being adequate; (iv) fluctuations in the demand for loans, and fluctuations in commercial and residential real estate values in our market area; (v) the quality and composition of our securities portfolio; (vi) our ability to develop and maintain a strong core deposit base, including among our venture banking clients, or other low cost funding sources necessary to fund our activities particularly in a rising or high interest rate environment; (vii) the rapid withdrawal of a significant amount of demand deposits over a short period of time; (viii) the costs and effects of litigation; (ix) risks related to the Company’s acquisitions, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; and our inability to achieve expected revenues, cost savings, synergies, and other benefits; and in the case of our recent acquisition of PacWest Bancorp (“PacWest”), reputational risk, regulatory risk and potential adverse reactions of the Company's or PacWest's customers, suppliers, vendors, employees or other business partners; (x) results of examinations by regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business activities, restrict our ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase our allowance for credit losses, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, which may result in significant changes in valuation; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and from time to time in other documents that we file with or furnish to the SEC.  Included in this presentation are certain non-GAAP financial measures, such as tangible assets, tangible equity to tangible assets, tangible book value per common share, adjusted net earnings (loss), return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision income, and adjusted pre-tax pre-provision income, designed to complement the financial information presented in accordance with U.S. GAAP because management believes such measures are useful to investors. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Financial Information” and “Non-GAAP Reconciliation” sections of the appendix of this presentation for additional detail including reconciliations of non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.  Fourth Quarter 2024 Earnings | 2 
 
 Update on California Wildfires  Fourth Quarter 2024 Earnings | 3  We are committed to supporting the recovery efforts to help rebuild Los Angeles  Launched the Banc of California Wildfire Relief and Recovery Fund and donated $1mm through our Foundation to aid relief and rebuilding efforts  We are not currently aware of any material impact on our loan portfolio, collateral or facilities from the wildfires  Four commercial and three residential properties have been impacted, but all such collateral has insurance coverage in place  Continuing to monitor and assess for potential exposure 
 
 Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.   Includes restricted cash of $184.2mm.  Wholesale funding defined as borrowings plus brokered time deposits.  Core loans excludes premium finance loans, student loans and Civic loans.  Economic coverage ratio adjusts our ACL coverage ratio to include the loss coverage from credit-linked notes and unearned credit marks from purchase accounting. Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation.  Operating Results  PTPP(1) / Adjusted PTPP(1)  EPS / Adjusted EPS(1)  ROAA / Adjusted ROAA(1)  ROATCE(1) / Adjusted ROATCE(1)  NIM  Cash / assets(2)  Loans / deposits  Loan yield  Cost of deposits  Wholesale funding / assets(3)  Avg. NIB deposits / avg. deposits  Balance Sheet Results  Increasing Capital  CET 1 capital ratio  Total risk-based capital ratio  Book value per share  Tangible book value per share(1)  Credit Reserves  ACL ratio  4Q24 Financial Highlights  EPS of $0.28 driven by NIM expansion and lower noninterest expenses  Strong growth in core earnings with adjusted PTPP(1) of $82.9mm up 4% QoQ driven by:  Cost of funds down 27 bps QoQ to 2.55%   NIM expansion of 11 bps QoQ to 3.04%  Noninterest operating expenses down 7% QoQ   Noninterest income declined QoQ due to lower income on CRA equity investments; otherwise stable QoQ  Core loan portfolio(4) increased $334mm or 6% annualized to $22.8B  Average NIB deposits increased 1.4% QoQ to 29.1% of total average deposits  Maintained strong balance sheet with robust liquidity and wholesale funding ratio of 10.3% down 0.4% QoQ  CET 1 and TBVPS increased driven by earnings growth  ACL coverage ratio of 1.13% is bolstered by economic coverage ratio of 1.72%(5)   $20.5mm/$80.0mm  ($0.01)/$0.25    0.10%/0.59%    0.70%/7.30%    2.93%   7.6%    87.8%   6.18%   2.54%   10.7%   27.7%   10.46%   17.00%  $17.75  $15.63   1.20%  3Q24  Fourth Quarter 2024 Earnings | 4   $82.9mm/NA   $0.28/NA  0.67%/NA   7.35%/NA    3.04%   7.5%    87.6%   6.01%   2.26%   10.3%   29.1%   10.55%   17.05%  $17.78  $15.72   1.13%  4Q24 
 
 4Q24 Earnings Results  3Q24  4Q24  -28 bps  3Q24  4Q24  -32 bps  3Q24  4Q24  -27 bps  Cost of funds  Cost of deposits  Cost of interest-bearing liabilities  Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.   Net interest income of $235.3mm increased 1.3% QoQ:  Interest expense declined $25.5mm due to reduction in cost of funding  Interest income declined $22.4mm driven by impact of rate cuts on cash and floating rate loans and securities  Noninterest income declined QoQ due to lower income on CRA equity investments; otherwise stable QoQ  Operating expense declined 7% QoQ to $182.4mm mainly driven by lower compensation expenses  Provision was largely driven by net charge off activity   Taxes lower mostly due to YTD true-up adjustment for the state tax rate  Fourth Quarter 2024 Earnings | 5  Strong earnings growth driven by declining cost of funds and noninterest expenses 
 
 2025 Strategic Priorities  2025 outlook reflects growth in core profitability drivers   Fourth Quarter 2024 Earnings | 6  Strengthen core earnings power through loan and noninterest-bearing deposit growth, prudent expense management and revenue base diversification   Expand network of clients and deepen existing client relationships to drive relationship-based deposit and loan growth  Grow and protect the balance sheet by maintaining robust credit quality, reserve coverage, liquidity and capital levels  Strategically deploy capital with potential to grow balance sheet, further reposition and other opportunities to drive higher shareholder returns  Maintain neutral balance sheet position to remain nimble and prepared for a dynamic market environment  Target NIM of 3.20% - 3.30% for FY 2025  Assumes no further rate cuts in 2025  NIE average of $190mm-$195mm per quarter  Customer related expenses average of $27mm-$29mm per quarter  Invest to accommodate growth  1Q seasonality with reset of comp. & benefit accruals  Wholesale funding ratio(1) 10-12%  Loan / deposits 85% - 93%  Evaluate opportunities to optimize balance sheet (e.g. investment securities portfolio, discontinued loan portfolio)  ROAA ~1.1%+  ROTCE ~13%+  Continue to make consistent, meaningful progress toward goals  Timing will depend on continued execution of core strategy combined with the impact of the economic and interest rate environments  Target mid to high single digit growth  Driven by growth in commercial loans  Assumes relatively stable economic conditions  Target mid to high single digit growth   Target NIB deposits / deposits >30%  Broad based growth across our businesses  Wholesale funding defined as borrowings plus brokered time deposits. 
 
 Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.  Wholesale funding defined as borrowings plus brokered time deposits.  Balance Sheet  Stable balance sheet following repositioning actions  Stable balance sheet as loan growth was partially offset by declines in other assets  Core loan portfolio increased $334mm or 6% annualized to $22.8B  Wholesale funding ratio decreased to 10.3%, down from 10.7% in 3Q24 due to decrease in brokered time deposits  Average NIB deposits increased 1.4% to 29.1% of total average deposits, up from 27.7% in 3Q24  Spot NIB deposits decreased 0.7% QoQ to 28.4% of total deposits mostly due to year-end seasonality   CET 1 ratio of 10.55%, 9 bps higher QoQ  4Q24 Highlights   Fourth Quarter 2024 Earnings | 7 
 
 Net Interest Income and Net Interest Margin Expansion  NIM expanded 11 bps to 3.04%  NII increase of $3.1mm reflects:  Lower interest-bearing deposits costs (decrease of 34 bps) driven by lower brokered deposits and growth in NIB  Higher securities yield due to the repositioning completed in mid-3Q24   Lower yields on loans driven by impact of rate cuts on floating rate loans  Lower average cash balances  1.69%  $151.0  4Q23  2.66%  $229.1  1Q24  2.80%  $229.5  2Q24  2.93%  $232.2  3Q24  3.04%  $235.3  4Q24  Net Interest Income (NII) ($mm) and Net Interest Margin (NIM) (%)  Impact to NII ($mm) from cumulative change in yields, rates and mix  3Q24  Deposits  +$2.8  Securities  -$1.4  Borrowings  -$12.6  Cash / Other EA  -$12.6  Loans  4Q24  $232.2  +$26.9  $235.3  Lower funding costs drove NII and NIM expansion   Fourth Quarter 2024 Earnings | 8  4Q24 Highlights 
 
 Funding Cost Reduction Actions and Mix Shift  Deposit costs declined QoQ driven by repricing actions resulting in 54% beta on interest-bearing deposits   Overall funding mix continues to strengthen  Core deposits (excluding brokered CDs) increased to 87.9% of total funding  Higher cost borrowings declined to 4.9% of total funding   Strengthening deposit composition trends reflect success of community bank-focused strategy   4Q24 Highlights  Strengthening Funding Mix(1)  Lower interest expenses driven by stronger funding mix and deposit repricing  4Q23  1Q24  4.8%  2Q24  5.6%  3Q24  4.9%  4Q24  Deposits excluding brokered CDs  Brokered CDs  Borrowings  4Q23  1Q24  2Q24  3Q24  2.26%  4Q24  Reduced Cost of Liabilities  Excludes subordinated debt and accrued interest payable and other liabilities.  Average total cost of funds  Average total cost of deposits  % of Total Funding(1)   Fourth Quarter 2024 Earnings | 9 
 
 Excludes gain (loss) on sale of securities and loans.  Illustrative fee income when excluding $2.4mm negative mark for Credit-Linked Notes and negative $3.2mm mark for equity CRA investments.  Illustrative fee income when excluding $4.4mm positive mark for Credit-Linked Notes, negative $1.5mm mark for equity CRA investments and $6.4mm lease equipment gain.  Illustrative fee income when excluding negative $4.0mm mark for equity CRA investments and $600K for loss on disposal of fixed assets.  Note: Other income includes revenue from BOLI, warrants, distributions and other miscellaneous gains or losses.  Noninterest IncomeComposition  Dividends and gains on equity investments down $4mm QoQ due to both mark-to-market and income from CRA equity investments  Service charges on deposits and other commissions and fees were relatively stable  3Q24 included multiple noteworthy items including lease residual gain, positive fair value adjustments and securities repositioning losses  Stability of fee income excluding noteworthy items  4Q24 Highlights  1Q24  $1.2  2Q24  3Q24  $0.0  4Q24  $34.3  $28.7(1)  $44.6(1)  $29.4(1)  ($ in millions)  (1,2)  4Q24 noninterest income lower due primarily to negative mark-to-market adjustment on CRA equity investments  $34.3(1,2)   Fourth Quarter 2024 Earnings | 10  $35.0(1,3)  Service Charges on Deposits  Other Commissions and Fees  Leased Equipment Income  Dividends and Gains on Equity Investments  Other Income  $34.0(1,4) 
 
 Noninterest Expenses  Adjusted noninterest expense down 36% from normalized 4Q23 expenses(1,2)  Adjusted noninterest expense excluding customer related expenses / average assets ratio of 1.79%(1)  Compensation expenses declined 9% QoQ due to lower headcount and lower employee equity costs  Compensation expenses generally seasonally lower in 4Q  1Q25 compensation expected to increase due to seasonality with reset of compensation and benefit accruals   Customer-related expenses down $2.8mm QoQ due to lower Fed Funds rate  Headcount at 4Q24 down approximately 660 FTE to ~1,900 FTE since the merger was announced in July 2023  Noninterest expenses declined reflecting continued efficiency gains  (1)  Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation.  $283.6 million normalized expenses adjusted to include combined company expenses for a full quarter and adjust incentive compensation to target.  4Q23   Normalized(2)   1Q24  2Q24  1.87%  3Q24  1.79%  4Q24  Adjusted Noninterest Expense / Average Assets Ratio  Adjusted Noninterest Expense Excluding Customer Related Expenses / Average Assets Ratio  Adjusted Noninterest Expense / Average Assets Ratio(1)   Fourth Quarter 2024 Earnings | 11  (1)  (1)  4Q24 Highlights 
 
 Customer-Related Expenses  Customer-related expenses of $31.7mm down 8% QoQ  ~86% of customer-related expenses are earnings credit rate (ECR) payments to customers to reimburse for cash expenses   ECR related expenses of $27.4mm down 8% QoQ  Indexed to the Fed Funds rate and will continue to fluctuate with Fed rate moves  > 90% of ECR expenses are related to our HOA clients  $3.7B or 14% of total deposits are HOA  Substantially all HOA deposits have ECR expenses  4Q24 Highlights  Customer-related expenses down due to lower ECR expenses  Adjusted Noninterest Expense Detail(1) ($mm)  $30.9  $20.5  $66.9  $92.2  1Q24  $32.4  $26.4  $71.5  $85.9  2Q24  $34.5  $12.7  $64.0  $85.6  3Q24  $31.7  $11.2  $61.9  $77.7  4Q24  $210.5  $216.3  $196.7  $182.4  Salary & employee benefits  Other operating expenses  Insurance and assessments  Customer-related expenses  FDIC Special Assessment:  1Q24: $4.8  Customer-Related Expenses ($mm)  $26.1  $4.9  1Q24  $27.7  $4.7  2Q24  $29.9  $4.6  3Q24  $27.4  $4.2  4Q24  $30.9  $32.4  $34.5  $31.7   Fourth Quarter 2024 Earnings | 12  ECR Expenses  Other  Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation. 
 
 Building a Strong Commercial Deposit Franchise  Cost of deposits declined significantly QoQ   Total cost of deposits down 28 bps   Cost of IB deposits down 34 bps  Achieved 54% beta on IB deposits  Core deposits (excluding CDs) increased $241mm QoQ or 4% annualized  Average NIB deposits increased to 29.1% of total average deposits, up from 27.7% in 3Q24  Spot NIB deposits decreased 1.2% QoQ to 28.4% of total deposits mostly due to year-end seasonality  4Q24 Highlights  Core deposit growth QoQ driven by checking and money market accounts  Management has a track record of successful deposit strategy execution  Average Fed Funds Rate  Average Total Cost of Deposits  4Q23  1Q24  2Q24  3Q24  4Q24  CDs  Brokered CDs  Money Market & Savings  Interest-bearing Checking  Noninterest-bearing Checking   Fourth Quarter 2024 Earnings | 13 
 
 NIB Deposit Growth Remains a Key Priority  Enterprise-wide focus  Deposit incentive programs, including competitions and leaderboards  RM performance goals include specific NIB targets  Ensure existing and new relationships have appropriate deposit balances with the bank   Line of business-specific approach to NIB growth and new customer acquisition  4Q24 Highlights  Steady growth continuing in new NIB business deposit relationships and balances(1)  $107.3  1Q24  1,288  $257.8  2Q24  1,889  $382.6  3Q24  $439.2  4Q24  Cumulative New NIB Business Deposits Accounts  Cumulative New NIB Business Deposits ($ millions)   Fourth Quarter 2024 Earnings | 14  Includes new NIB deposits from relationships opened over the last two years from the quarter referenced. 
 
 Diversified Loan Portfolio  Core loan portfolio(1) increased $334mm or 6% annualized driven by growth across nearly all segments and primarily in warehouse and fund finance   Construction loans declined $287mm due to expected payoffs   Core portfolio comprises 96% of total loans   4Q24 loan originations including production, purchased loans and unfunded new commitments, totaled $1.8B  Core portfolio growth of 1.5% driven by higher yielding commercial loans  Existing core portfolios have strong credit quality  Note: Wtd. Avg. Rate excludes loan fees and accretion.  Core loans excludes premium finance loans, student loans and Civic loans.  Lender finance includes the national lending portfolio, which had a balance of less than $25mm in each of 3Q24 and 4Q24.   Fourth Quarter 2024 Earnings | 15 
 
 $389  $588  $698  $852  $830  $212  $1,223  $142  $1,405  $382  $1,271  $700  $1,082  $937  $1,353  $1,436  $1,546  $1,654  $1,781  $2,290  $1,280  $552  $873  $661  $1,076  $832  $659  $803  $1,257  $747  $1,832  $1,534  $1,908  $1,462  $2,004  Loan Activity  Rate on new production of 7.02% reflects commercial loan production rate of 7.6% offset by lower production rate for real estate loans  Loan production and line utilization of $2.3B outpaced payoffs and paydowns of $2.0B  Unfunded new commitments increased to $830mm   Loan originations including production, purchased loans and unfunded new commitments, totaled $1.8B compared to 3Q24 of $1.6B  4Q24 Highlights  Net loan growth driven by strong production and net line utilization  Fourth Quarter 2024 Earnings | 16  Loan Production  Line Utilization  Payoffs  Paydowns  4Q23  1Q24  2Q24  Rate on Production  Total Loan Yield  3Q24  Includes charge-offs and transfers to HFS.  ($ in millions)  Unfunded New Commitments  4Q24 
 
 Asset Quality Ratios and Trends  ACL coverage ratio impacted by improvement in the economic forecast, a mix shift towards loan categories with lower expected losses and the impact of charge-offs, which offset the impact of changes in risk ratings  NPL, Classified and Delinquent loan inflows primarily driven by one customer relationship with two loans with no expected loss due to collateral coverage  Classified inflows also driven by downgrades of still accruing loans where performance metrics indicated deterioration   ACL coverage ratio of 1.13% is bolstered by economic coverage ratio of 1.72%(1)  Continuing conservative outlook and heightened monitoring given uncertain economic environment   Fourth Quarter 2024 Earnings | 17  Nonperforming Loans (NPLs) ($mm)  Delinquent Loans ($mm)  Classified Loans ($mm)  ACL / Total Loans ($mm)  $311.3  $320.1  $275.3  $281.9  $311.3  1.22%  4Q23  $320.1  1.26%  1Q24  $275.3  1.19%  2Q24  $281.9  1.20%  3Q24  $268.4  1.13%  4Q24  ACL  ACL / Total Loans HFI  $13.3  $37.6  $23.4  4Q23  $53.9  $43.1  $48.8  1Q24  $46.1  $53.5  $17.5  2Q24  $55.8  $79.3  $33.3  3Q24  $63.5  $96.8  $29.2  4Q24  $74.3  $145.8  $117.1  $168.3  $189.6  CRE Loans (excluding MF and Construction)  Other Core Loans  Discontinued Loans  NPLs to Loans/leases HFI  $61.6  $136.3  $30.5  4Q23  $161.9  $151.6  $53.2  1Q24  $172.1  $206.2  $37.2  2Q24  $233.9  $264.4  $35.4  3Q24  $267.1  $266.1  $30.3  4Q24  $228.4  $366.7  $415.5  $533.6  $563.5  Classified Loans / Total Loans HFI  CRE Loans (excluding MF and Construction)  Other Core Loans  Discontinued Loans  $19.9  $44.8  $79.6  4Q23  $67.2  $62.4  $106.4  1Q24  $27.0  $37.8  $19.0  2Q24  $43.1  $48.5  $33.4  3Q24  $41.8  $93.7  $44.7  4Q24  $144.2  $236.0  $83.8  $125.0  $180.2  CRE Loans (excluding MF and Construction)  Other Core Loans  Discontinued Loans  Delinquent Loans / Total Loans HFI  Economic coverage ratio adjusts our ACL coverage ratio to include the loss coverage from credit-linked notes and unearned credit marks from purchase accounting. Denotes a non-GAAP measure, see Non-GAAP Reconciliation” slides at end of presentation. 
 
 ACL coverage ratio at appropriate level under CECL given portfolio mix  Allowance for Credit Losses Walk  1.19%   1.20%   ($ in millions)  4Q24 net charge-offs detail    Fourth Quarter 2024 Earnings | 18  4Q24 Highlights  ACL 3Q24  Net Charge-offs   $13.0   Provision  ACL 4Q24  1.20%   1.13%   ACL decreased $13.5mm driven by:  Net charge-offs of $26.5mm primarily driven by a commercial loan exposure with isolated risk and one remaining Civic loan, both of which migrated to NPL in 3Q24  ACL provision of $13mm primarily driven by one commercial loan credit loss included in net charge-offs  Recent loan growth is in segments with relatively low expected credit losses; resulted in lower ACL coverage under CECL 
 
 California-Centric CRE Portfolio  72% of total CRE portfolio located in California  Total CRE has a low weighted average LTV of 61%  Other Property Types includes mobile homes, self storage, gas stations, special use, school, place of worship and restaurants  4Q24 Highlights  High quality CRE portfolio has low weighted-average LTV and high debt-service coverage ratio (DSCR)  Total CRE is well diversified across multiple industries  Office  Industrial  Retail  Hotel  Health Facility  Mixed Use  Other  Represents most recent appraisal or weighted-average LTV at origination.   Note: CRE excludes government guaranteed CRE collateralized SBA loans.  Total CRE comprises 55% of total loans and Other CRE comprises 16.6% of total loans  84% of office collateral located in California, 6% in Colorado and 10% in other states  Multifamily has a low average LTV and a strong DSCR coverage ratio of 1.30x  Other CRE as % of Total CRE   Fourth Quarter 2024 Earnings | 19 
 
 Balance sheet mix shift drives IRR position closer to neutral  Interest Rate Sensitivity  IRR position closer to neutral as gap between short-term liabilities and assets decreased ~$1.1B in 4Q from $7.3B at 3Q to $6.2B  Short-term interest sensitive assets increased $900mm driven by higher levels of warehouse and fund finance loans and the timing of AFS security maturities  Short-term interest sensitive liabilities decreased $200mm QoQ as NIB deposits increased and other short-term borrowings matured  Interest sensitive assets have higher repricing betas than interest sensitive liabilities, offsetting the impact from the asset/liability gap and achieving a more neutral IRR position  Loans Years to Maturity/Repricing   Loan Composition  Rate sensitive defined as assets or liabilities that are repricing or maturing within one year.  Note: Short Term (“ST”) Variable: Variable rate loans which resets within one year.    Fourth Quarter 2024 Earnings | 20  Asset/Liabilities Repricing Mix ($B)  $12.9  $20.6  $19.7  $13.8  Short Term A/L  Long Term A/L  40%1  59%1 
 
 Higher yield and lower duration vs. prior quarter due to benefits of 3Q AFS securities repositioning  Investment Securities Portfolio  Average securities yield increased 21 bps QoQ after full quarter impact of repositioning $742mm AFS securities in 3Q24  Unrealized pre-tax loss on AFS securities of $280mm up $54mm QoQ driven primarily by an increase in longer term interest rates   AFS portfolio duration decreased ~0.4 years to ~4.4 years and total portfolio duration decreased ~0.3 years to ~5.6 years  Portfolio Profile  Composition   Credit Rating  Average Portfolio Balances & Yields  3%  5%  0%  0%  AAA  AA  A  BB  BBB  Not Rated  $6.0  2.72%  4Q23  $4.7  2.92%  1Q24  $4.7  2.92%  2Q24  $4.7  2.98%  3Q24  $4.7  3.19%  4Q24  Average Balance ($ in billions)  Yield  4Q24 Highlights  Reflects fair value for AFS securities and amortized cost for HTM securities. Excludes FRB and FHLB stock and $1.5 million loss reserve on HTM securities.    Fourth Quarter 2024 Earnings | 21  Private Label MBS  CLO  Corporates  Gov’t & AGC  Munis 
 
 High Level of Available Liquidity  Total primary liquidity of $4.4B, including unpledged AFS securities of $2.0B(1)  Total primary and secondary liquidity of $15.9B  Uninsured and uncollateralized deposits of $7.2B, which represents approximately 26.4% of total deposits  Total primary and secondary liquidity was 2.2x uninsured and uncollateralized deposits  4Q24 Highlights  Maintaining high levels of primary and secondary liquidity as prudent risk management  (2)   Fourth Quarter 2024 Earnings | 22  (1)  Figures presented as Bank only, excludes restricted cash.  Net of haircut: 8.6% as of December 31, 2024. 
 
 Strong Capital Base  CET 1 ratio of 10.55%, up from 10.46% in the prior quarter   TCE ratio increased 1.4% to 7.99% since merger close  All regulatory capital ratios in excess of minimum “well-capitalized” levels  Building capital levels for strength and flexibility  3Q24  4Q24  3Q24  4Q24  4Q24 Highlights  Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.  Note: 4Q24 regulatory capital ratios are preliminary.   Fourth Quarter 2024 Earnings | 23  CET 1 Ratio  TCE Ratio 
 
 Executed significant balance sheet repositioning in 2024 . . .  Fourth Quarter 2024 Earnings | 24  Wholesale funding defined as borrowings plus brokered time deposits.   Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.  Note: 4Q23 balance sheet includes impact of $400mm capital raise, sale of $6B in lower-yielding assets and paydown of $10B higher cost wholesale funding.  Sold $1.95B Civic loan portfolio  Purchased $319mm of lender finance loans  Fully paid down BTFP of $2.6B  Repositioned $0.7B of investment securities to improve yield  Retired $1.85B of high-cost brokered deposits, lowered brokered to <10% of total fundings  Improved wholesale funding ratio(1) from 16.6% to 10.3%  2024 repositioning actions  ($ in millions) 
 
 . . . resulting in strong growth in core earnings and capital  Fourth Quarter 2024 Earnings | 25  1Q24  4Q24  +0.46%  +6%  CET 1 Ratio  Earnings per share  Excludes acquisition related costs  Growth rate assumes 4Q23 normalized expenses adjusted to include combined company expenses for a full quarter and adjust incentive compensation to target  Denotes a non-GAAP financial measure; see “Non-GAAP Reconciliation” slides at end of presentation.  Avg. NIB / Deposits   29.1%  +650 bps  Cost of Funds  2.55%  -113 bps  NIM  3.04%  +135 bp  Noninterest Operating Expenses(1,3)  $182mm  -36%(2)  Wholesale Funding Ratio  10.3%  -630 bps  Note: Growth rates represent variance from 4Q23 to 4Q24  TBVPS(3)  1Q24  4Q24  +$0.69  +6%  1Q24  4Q24  +$0.16  +209%  Balance sheet repositioning actions and swift delivery of merger integration milestones throughout 2024 have driven significant growth in key profitability drivers and capital  CAGR 
 
 Appendix 
 
 Non-GAAP Financial Information  Fourth Quarter 2024 Earnings | 27  Tangible assets, tangible common equity, tangible common equity to tangible assets, tangible book value per common share, adjusted net earnings (loss), adjusted return on average assets, return on average tangible common equity, adjusted return on average tangible common equity, pre-tax pre-provision (“PTPP”) income, adjusted PTPP income, adjusted noninterest expense, and economic coverage ratio constitute supplemental financial information determined by methods other than in accordance with GAAP. These non-GAAP measures are used by management in its analysis of the Company's performance.   Tangible assets and tangible equity is calculated by subtracting goodwill and other intangible assets from total assets. Tangible common equity is calculated by subtracting preferred stock, as applicable, from tangible equity. Return on average tangible common equity is calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets and goodwill impairment, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.   Adjusted net earnings (loss) is calculated by adjusting net earnings (loss) by unusual, one-time items. ROAA is calculated by dividing annualized net earnings (loss) by average assets. Adjusted ROAA is calculated by dividing annualized adjusted net earnings (loss) by average assets.  PTPP income is calculated by adding net interest income and noninterest income (total revenue) and subtracting noninterest expense. Adjusted PTPP income is calculated by adding net interest income and adjusted noninterest income (adjusted total revenue) and subtracting adjusted noninterest expense.  Adjusted noninterest expense is calculated by subtracting acquisition, integration and reorganization costs from total noninterest expense. Adjusted noninterest expense excluding customer related expenses is calculated by subtracting customer related expenses from adjusted noninterest expense.  Economic coverage ratio is calculated by dividing the allowance for credit losses adjusted for the impact of the credit-linked notes and unearned credit mark from purchase accounting by loans and leases held for investment, net of deferred fees.  Management believes the presentation of these financial measures adjusting the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.   The following tables on pages 28-33 provide reconciliations of the non-GAAP measures to financial measures defined by GAAP. 
 
 Non-GAAP Reconciliation  Tangible common equity divided by tangible assets.  Total common equity divided by common shares outstanding.  Tangible common equity divided by common shares outstanding.  Common shares outstanding include non-voting common equivalents that are participating securities.   Fourth Quarter 2024 Earnings | 28 
 
 Non-GAAP Reconciliation  Effective tax rates of 24.76%, 27.61%, 28.62%, 26.40%, and 14.12% used for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.  Annualized net earnings (loss) divided by average stockholders' equity.  Annualized adjusted net earnings (loss) available to common and equivalent stockholders for ROATCE divided by average tangible common equity.  Annualized adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.   Fourth Quarter 2024 Earnings | 29 
 
 Non-GAAP Reconciliation   Fourth Quarter 2024 Earnings | 30  Effective tax rates of 24.76%, 27.61%, 28.62%, 26.40%, and 14.12% used for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.  Adjusted net earnings (loss) available to common and equivalent stockholders divided by weighted average common shares outstanding.  Annualized net earnings (loss) divided by average assets.  Annualized adjusted net earnings (loss) divided by average assets. 
 
 Non-GAAP Reconciliation   Fourth Quarter 2024 Earnings | 31  Annualized PTPP income divided by average assets.  Annualized adjusted PTPP income divided by average assets. 
 
 Non-GAAP Reconciliation   Fourth Quarter 2024 Earnings | 32 
 
 Non-GAAP Reconciliation   Fourth Quarter 2024 Earnings | 33  Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with the non-PCD loans (purchased loans without credit deterioration at the time of the purchase) at the time of the acquisition.   Credit-linked notes loss coverage equal to 5% of the unpaid principal balance of the pledged loans.  Allowance for credit losses divided by loans and leases held for investment, net of deferred fees.   Adjusted allowance for credit losses divided by loans and leases held for investment, net of deferred fees.  
 
 4Q24 Noteworthy Items  4Q24 results included several noteworthy items, which impacted financial results but partially offset each other  Revenue lower due to combination of lower dividends and negative fair value adjustment on CRA equity investments   Tax related adjustment mostly driven by YTD true-up adjustment for state taxes  1. 28% tax rate used for calculations  Fourth Quarter 2024 Earnings | 34 
 
 Loan Interest Rate Sensitivity  Roughly half of fixed rate and hybrid loans will reset or mature within the next three years and reprice to higher coupons  Over 99% of adjustable-rate loans with floors are at or above their respective floors  Variable rate loans are almost entirely Prime or SOFR based  20% of fixed rate and hybrid loans will reprice / reset within one year at higher rates  Years to Fixed Rate Loans Maturities or Hybrid Rate Loans Reset  Floors: Variable Rate Loans  Loan Portfolio by Index Rate  Fourth Quarter 2024 Earnings | 35  92%  39%  38%  38%  91%  $2.9B  WAC 4.92%  $1.7B  WAC 4.12%  $1.8B  WAC 4.03%  $8.0B  WAC 3.81%  Note: Actual loan portfolio yield is higher than WAC due to discount accretion.  82%  50%  63%  78%  22%  37%  50%  18% 
 
 Fourth Quarter 2024 Earnings | 36  Experienced management team with track record of success at leading institutions  Alex Kweskin  Chief Human Resources Officer  25+ years of Human Resources experience, previously held HR leadership roles at MUFG Union Bank and Wells Fargo  Chris Blake  Vice Chairman of the Bank  40+ years of banking experience, previously served as President & CEO, Community Bank Division, for PacWest Bancorp.  Scott Ladd  Chief Credit Officer for Specialty Banking and Credit Operations  25+ years banking and consulting experience, previously served as EVP, Group Head, Portfolio Management at PacWest Bancorp  Jared Wolff  President and Chief Executive Officer  30+ years of banking and law. Previously held senior executive positions with City National Bank (RBC) and PacWest Bancorp  Joe Kauder   Chief Financial Officer  30+ years banking experience, previously served as EVP, CFO Wells Fargo Wholesale Banking  Hamid Hussain  President of the Bank  30+ years of banking experience, previously served as EVP, Real Estate Market Executive for Wells Fargo  Bryan Corsini  Chief Credit Officer  35+ years banking experience, previously served as CCO of PacWest Bancorp and Director of Pacific Western Bank  Debbie Dahl-Amundson  Chief Internal Audit Officer  Leads the internal audit group and SOX Compliance, previously served as Assistant General Auditor for PNC  Ido Dotan  General Counsel and Chief Administrative Officer  Experienced in corporate securities, M&A, and structured finance. Previously served as EVP of Carrington Mortgage Holdings  Olivia Lindsay  Chief Risk Officer  20+ years of experience in regulatory processes and controls, previously spent 15 years at MUFG Union Bank  Steve Schwimmer  Chief Information Officer  30+ years of experience in banking technology, previously served as the EVP, Chief Innovation Officer at PacWest Bancorp  Stan Ivie  Head of Government and Regulatory Affairs  Previously served as the Chief Risk Officer of PacWest Bancorp & the regional director for the FDIC’s San Francisco and Dallas Regions  Michael Pierron  Head of Payments  25+ years of technology, product and operations, previously served as Head of Operations at Flagstar Bank  Sean Lynden  President, Venture Banking Group  30+ years of banking and related experience. Previously served as President of Venture Banking Group for Pacific Western Bank  Chris Baron  President, Community Banking  30+ years banking experience. Previously served as President of Los Angeles Region for Pacific Western Bank 
 


v3.24.4
Document and Entity Information
Jan. 23, 2025
Entity Listings [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jan. 23, 2025
Entity File Number 001-35522
Entity Registrant Name BANC OF CALIFORNIA, INC.
Entity Central Index Key 0001169770
Entity Incorporation, State or Country Code MD
Entity Tax Identification Number 04-3639825
Entity Address, Address Line One 11611 San Vicente Boulevard
Entity Address, Address Line Two Suite 500
Entity Address, City or Town Los Angeles
Entity Address, State or Province CA
Entity Address, Postal Zip Code 90049
City Area Code 855
Local Phone Number 361-2262
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Common Stock [Member]  
Entity Listings [Line Items]  
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol BANC
Security Exchange Name NYSE
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series F [Member]  
Entity Listings [Line Items]  
Title of 12(b) Security Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series F
Trading Symbol BANC/PF
Security Exchange Name NYSE
Banc of California (NYSE:BANC)
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