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Third Quarter 2026 Results
Press Release
             
Banc of California, Inc. Reports Third Quarter Diluted Earnings per Share of $0.46, Up 21% Year Over Year
Strategic Repositioning and Core Business Performance Drive Higher Earnings and Positive Operating Leverage
Company Release – 10/27/2026
Quarter Results
$0.46
Diluted Earnings Per Share
6%
Total Revenue Growth
16%
Pre-Tax Pre-Provision
Income Growth (1)
3.34%
Net Interest Margin
6%
Loan Annualized Growth
8%
Deposit Average
Annualized Growth
LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the
parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the third quarter ended
September 30, 2026. The Company reported net earnings available to common and equivalent stockholders of $73.1 million, or $0.46 per
diluted common share, for the third quarter of 2026, compared to $59.7 million, or $0.38 per diluted common share for the third quarter of
2025. For the second quarter of 2026, the Company reported a net loss available to common and equivalent stockholders of $251.3 million,
or $(1.61) per diluted common share, reflecting the previously announced strategic balance sheet repositioning.
Jared Wolff, Chairman & CEO of Banc of California, commented, “Our third quarter results demonstrate the stronger earnings foundation
we have created through our second quarter strategic balance sheet repositioning and continued execution across our business. Compared
to the first quarter, before the repositioning, diluted earnings per share increased 18%, total revenue increased 6% and pre-tax pre-
provision income increased 12%. We also grew deposits, reduced our reliance on brokered funding and increased our CET1 ratio by 45
basis points from the second quarter.”
Mr. Wolff added, “We expect further improvement in profitability in the fourth quarter as we realize a full quarter of earnings from our
securities reinvestment and additional benefits from the completed loan sales. We are focused on building on this progress through deeper
client relationships, disciplined loan growth, growth in relationship deposits and continued capital generation to deliver sustainable
earnings growth and long-term shareholder value.”
Third Quarter 2026 Financial Highlights:
•The second quarter strategic balance sheet repositioning contributed to increased third quarter earnings, with diluted earnings
per share of $0.46, up 21% from $0.38 year-over-year.
•Total revenue of $303.8 million, up 6% year-over-year, and pre-tax pre-provision income(1) of $118.4 million, up 16% year-
over-year, while noninterest expense of $185.4 million remained flat year-over-year.
•Net interest income increased $21.9 million, or 9%, from prior quarter to $272.4 million, and net interest margin expanded 21
basis points to 3.34%, reflecting higher yields on investment securities following the Company's second quarter strategic balance
sheet repositioning activities and continued execution across the business.
•Loans and leases held for investment increased $379.7 million, or 6% on an annualized basis, driven by $2.6 billion of loan
production and disbursements with a weighted average interest rate on production of 6.58%.
•Average deposits increased $565.3 million, or 8% on an annualized basis, supporting reduced wholesale funding.
•Credit quality trends were favorable, as nonperforming and classified loans and leases as a percentage of total loans and leases held
for investment declined by 12 basis points and 35 basis points, respectively.
•Capital ratios(2) increased from prior quarter and exceeded the regulatory thresholds for "well capitalized" banks, including an
estimated 12.10% Tier 1 capital ratio, up 43 basis points from prior quarter, and 9.70% common equity tier 1 ("CET1") capital ratio, up
45 basis points from the prior quarter, reflecting capital generation following the balance sheet repositioning.
(1) Non-GAAP measure; refer to section 'Non-GAAP Measures'
(2) Capital ratios for September 30, 2026 are preliminary
                                              2
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During the second quarter of 2026, the Company entered into targeted loan sales relating to $827 million of commercial real estate and
construction loans. Of these loans, approximately $525 million were sold during the third quarter. Of the remaining approximately $300
million of construction loans, $235 million were sold on October 21, 2026, and $65 million were removed prior to sale as construction on
the project was completed and the loan converted into permanent financing. We anticipate selling our remaining held for sale loan portfolio
over the next several quarters.
                                              3
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INCOME STATEMENT HIGHLIGHTS
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
Summary Income Statement
2026
2026
2025
2026
2025
(In thousands)
Total interest income
$442,736
$414,596
$432,541
$1,264,774
$1,259,705
Total interest expense
170,294
164,095
179,097
490,214
533,681
Net interest income
272,442
250,501
253,444
774,560
726,024
Provision for credit losses
10,400
161,780
9,700
181,980
58,100
Loss on loans and leases HFS
(4,199)
(12,544)
(374)
(16,733)
(142)
Gain (loss) on securities AFS
728
(256,749)
—
(256,021)
—
Other noninterest income
34,827
35,197
34,659
105,342
100,710
Total noninterest income (loss)
31,356
(234,096)
34,285
(167,412)
100,568
Total revenue
303,798
16,405
287,729
607,148
826,592
Total noninterest expense
185,370
189,867
185,684
556,628
555,206
Earnings (loss) before income taxes
108,028
(335,242)
92,345
(131,460)
213,286
Income tax expense (benefit)
24,971
(93,895)
22,716
(45,122)
61,704
Net earnings (loss)
83,057
(241,347)
69,629
(86,338)
151,582
Preferred stock dividends
9,947
9,947
9,947
29,841
29,841
Net earnings (loss) available to common
and equivalent stockholders
$73,110
$(251,294)
$59,682
$(116,179)
$121,741
Diluted earnings (loss) per share
$0.46
$(1.61)
$0.38
$(0.74)
$0.75
Net Interest Income and Margin
Third Quarter of 2026 Compared to Second Quarter of 2026
Net interest income increased by $21.9 million to $272.4 million for the third quarter, from $250.5 million in the second quarter. This
increase was primarily driven by the $17.7 million increase in interest income on investment securities resulting from the strategic balance
sheet repositioning during the second quarter and reinvestment into higher-yielding assets, including a $2.8 million special dividend
received on FHLB stock. In addition, interest income on loans increased by $7.7 million primarily driven by lower interest reversals
associated with nonaccrual loans compared to the prior quarter and one additional day in the quarter. These increases were offset partially
by a $6.0 million increase in interest expense on deposits primarily due to increased market interest rates, one additional day in the quarter,
as well as higher average balances.
Net interest margin was 3.34% for the third quarter, up 21 basis points from 3.13% for the second quarter. The increase was primarily
driven by the higher yield on average interest earning assets, which increased to 5.43% from 5.18%, reflecting a 142 basis point increase in
the average yield on investment securities to 4.86%. The increase in investment securities yield reflects earnings from the strategic balance
sheet repositioning and reinvestment activities.
The average total cost of funds increased to 2.16% from 2.14%, primarily due to a 3 basis point increase in the average total cost of
deposits to 1.83%. Average total deposits increased by $565.3 million, with a $546.3 million increase in average interest-bearing deposits.
The increase in average yield on total interest-bearing deposits reflects the impact of the federal funds rate increases during the quarter.
Average noninterest-bearing deposits represented 28.0% of average total deposits in the third quarter, down from 28.5% in the second
quarter.
                                              4
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Three Months Ended
Increase (Decrease)
September 30, 2026
June 30, 2026
QoQ
Summary
Average
Average
Average
Average Balance
Average
Yield/
Average
Yield/
Average
Yield/
and Yield/Rate Data
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Rate
(Dollars in thousands)
Assets:
Loans and leases (1)
$25,274,927
$362,549
5.69%
$25,266,712
$354,832
5.63%
$8,215
0.06%
Investment securities
4,912,701
60,125
4.86%
4,938,232
42,407
3.44%
(25,531)
1.42%
Deposits in financial institutions
2,166,626
20,062
3.67%
1,912,585
17,357
3.64%
254,041
0.03%
Total interest-earning assets
$32,354,254
$442,736
5.43%
$32,117,529
$414,596
5.18%
$236,725
0.25%
Liabilities:
Noninterest-bearing demand deposits
$7,885,157
$7,866,139
$19,018
Total interest-bearing deposits
20,298,878
$130,248
2.55%
19,752,609
$124,270
2.52%
546,269
0.03%
Total deposits
$28,184,035
130,248
1.83%
$27,618,748
124,270
1.80%
$565,287
0.03%
Total interest-bearing liabilities
$23,334,658
$170,294
2.90%
$22,851,314
$164,095
2.88%
$483,344
0.02%
Net interest income (1)
$272,442
$250,501
Net interest margin
3.34%
3.13%
0.21%
Total funds (2)
$31,219,815
$170,294
2.16%
$30,717,453
$164,095
2.14%
$502,362
0.02%
______________
(1) Includes net loan discount accretion of $8.7 million and $11.2 million for the three months ended September 30, 2026 and June 30, 2026, respectively.
(2) 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.
YTD September 30, 2026 vs YTD September 30, 2025
Net interest income increased $48.5 million to $774.6 million for the nine months ended September 30, 2026, from $726.0 million for the
nine months ended September 30, 2025. The increase was primarily driven by a $53.8 million decrease in interest expense on deposits due
to lower interest rates following federal funds rate cuts in the second half of 2025, and a $30.6 million increase in interest income from
investment securities reflecting the benefits of prior balance sheet repositioning and reinvestment activities, including $4.1 million of
special dividends received on FHLB stock. These benefits were offset partially by a $15.5 million increase in borrowing costs associated
with funding loan growth and the subordinated debt redemption prior to higher repricing in the second quarter of 2026, a $13.8 million
decrease in loan interest income primarily attributable to a reversal of previously accrued interest on loans placed on nonaccrual status
offset partially by the benefit of higher average loan balances, and an $11.8 million decrease in interest income from deposits in financial
institutions due to lower balances and lower market interest rates.
The net interest margin was 3.24% for the nine months ended September 30, 2026, up 11 basis points from 3.13% for the nine months
ended September 30, 2025. The year-over-year improvement was primarily driven by a 26 basis point decrease in the average total cost of
funds due mainly to lower market interest rates and a 69 basis point increase in the average yield on investment securities.
The average total cost of funds decreased by 26 basis points to 2.14%, driven primarily by the decline in average cost of deposits of 30
basis points to 1.81%, reflecting the impact of lower market interest rates. Average total deposits increased by $536.6 million year-over-
year, as a result of a $316.6 million increase in average interest-bearing deposits and a $220.1 million increase in average noninterest-
bearing deposits. Average noninterest-bearing deposits represented 28.4% of average total deposits for the nine months ended September
30, 2026, up from 28.2% for the comparable period in 2025. The average cost of borrowings also decreased by 49 basis points to 4.50%,
reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost short-term Federal Home Loan
Bank ("FHLB") advances.
The average yield on interest-earning assets declined by 15 basis points to 5.29%. The decrease was primarily driven by a 27 basis point
decline in average yield on loans and leases to 5.69% and a 74 basis point decline in average yield on deposits in financial institutions,
primarily consisting of reserves held at the Federal Reserve Bank, to 3.65%, reflecting lower market rates. These decreases were offset
partially by a 69 basis point increase in the average yield on investment securities to 3.90%, reflecting a benefit from the strategic balance
sheet repositioning and reinvestment activities.
                                              5
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Nine Months Ended
Increase (Decrease)
September 30, 2026
September 30, 2025
YoY
Summary
Average
Average
Average
Average Balance
Average
Yield/
Average
Yield/
Average
Yield/
and Yield/Rate Data
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Rate
(Dollars in thousands)
Assets:
Loans and leases (1)
$25,086,150
$1,067,324
5.69%
$24,252,860
$1,081,129
5.96%
$833,290
(0.27)%
Investment securities
4,955,926
144,405
3.90%
4,745,530
113,769
3.21%
210,396
0.69%
Deposits in financial institutions
1,942,176
53,045
3.65%
1,972,486
64,807
4.39%
(30,310)
(0.74)%
Total interest-earning assets
$31,984,252
$1,264,774
5.29%
$30,970,876
$1,259,705
5.44%
$1,013,376
(0.15)%
Liabilities:
Noninterest-bearing demand deposits
$7,880,575
$7,660,504
$220,071
Total interest-bearing deposits
19,830,053
374,751
2.53%
19,513,486
428,544
2.94%
316,567
(0.41)%
Total deposits
$27,710,628
$374,751
1.81%
$27,173,990
$428,544
2.11%
$536,638
(0.30)%
Total interest-bearing liabilities
$22,782,506
$490,214
2.88%
$22,038,389
$533,681
3.24%
$744,117
(0.36)%
Net interest income (1)
$774,560
$726,024
Net interest margin
3.24%
3.13%
0.11%
Total funds (2)
$30,663,081
$490,214
2.14%
$29,698,893
$533,681
2.40%
$964,188
(0.26)%
______________
(1) Includes net loan discount accretion of $32.2 million and $51.5 million for the nine months ended September 30, 2026 and 2025.
(2) 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.
Provision For Credit Losses
Third Quarter of 2026 Compared to Second Quarter of 2026
The provision for credit losses was $10.4 million for the third quarter compared to $161.8 million for the second quarter.
The third quarter provision included an $8.4 million provision for loan losses and a $2.0 million provision for unfunded commitments. The
provision was primarily driven by net charge-off activity experienced in the quarter and growth in the held for investment ("HFI") loan
portfolio, offset partially by lower specific reserves and changes in the economic factors used in the provision estimate.
The second quarter provision was elevated by the strategic balance sheet repositioning activities related to the targeted loan sale process,
the impact of loan growth and higher loss given default rates on commercial real estate and multi-family construction loans, offset partially
by improved risk ratings in our HFI portfolio.
YTD September 30, 2026 vs YTD September 30, 2025
The provision for credit losses was $182.0 million for the nine months ended September 30, 2026, compared to $58.1 million for the nine
months ended September 30, 2025. The provision for the 2026 period included a provision for loan losses of $180.2 million, reflecting the
impact of the targeted loan sale process and the impact of loan growth, offset partially by improved risk ratings for our HFI portfolio.
The provision for the nine months ended September 30, 2025 included the impact of $506.7 million of loans transferred to held for sale
("HFS") and recorded at the lower of cost or market value. The remaining increase in the provision for credit losses was primarily driven
by net charge-off activity experienced in the first half of the year, with additional impacts from changes in loan risk ratings. These were
offset partially by lower specific reserves and a favorable shift in the portfolio mix due to growth in loan segments with lower expected
credit losses.
                                              6
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Noninterest Income
Third Quarter of 2026 Compared to Second Quarter of 2026
Noninterest income increased by $265.5 million to $31.4 million for the third quarter, compared to a loss of $234.1 million for the second
quarter. The increase was primarily driven by a $257.5 million decrease in loss on securities and an $8.3 million decrease in loss on loans
and leases HFS, both of which were a result of the strategic balance sheet repositioning actions taken in the second quarter. Also included
in noninterest income was a $2.0 million increase in operating lease income, primarily due to new lease fundings and higher lease renewal
income, offset partially by a $1.4 million decrease in other income. The decrease in other income was primarily due to the second quarter
gain recognized on the sale of the Company's single-family mortgage servicing rights portfolio, offset partially by the second quarter loss
on the redemption of the $385 million subordinated note.
YTD September 30, 2026 vs YTD September 30, 2025
Noninterest income decreased by $268.0 million to a loss of $167.4 million for the nine months ended September 30, 2026, compared to
income of $100.6 million for the same period in 2025. The decrease was primarily attributable to the $256.0 million pre-tax loss
recognized as part of the securities repositioning and a $16.6 million increase in the loss on loans and leases HFS resulting primarily from
lower of cost or market adjustments recorded during the second quarter in connection with the strategic balance sheet repositioning actions.
Noninterest Expense
Third Quarter of 2026 Compared to Second Quarter of 2026
Noninterest expense decreased by $4.5 million to $185.4 million for the third quarter from $189.9 million for the second quarter. The
decrease was primarily due to a $5.1 million decrease in other expense due to a non-recurring software obsolescence charge taken during
the second quarter and a $2.3 million decrease in insurance and assessments due to a lower FDIC assessment rate resulting from favorable
mix. These decreases were offset partially by a $2.2 million increase in compensation expense primarily driven by one-time incentive plan
adjustments in the second quarter and a $1.6 million increase in operating lease and customer related expenses.
YTD September 30, 2026 vs YTD September 30, 2025
Noninterest expense increased by $1.4 million to $556.6 million for the nine months ended September 30, 2026 from $555.2 million for
the nine months ended September 30, 2025. The increase was primarily due to an $8.2 million increase in other expense related mainly to
software obsolescence charges, a $7.8 million increase in insurance and assessments due to the higher assessment rate resulting from the
balance sheet repositioning and its effect on assessment related metrics, and a $2.2 million increase in loan expense related to legal fees.
These increases were offset partially by a $7.9 million decrease in customer related expenses primarily due to federal funds rate cuts in the
fourth quarter of 2025 and a $3.6 million decrease in leased equipment depreciation.
Income Taxes
Third Quarter of 2026 Compared to Second Quarter of 2026
Income tax expense of $25.0 million was recorded for the third quarter, resulting in an effective tax rate of 23.1%, compared to an income
tax benefit of $93.9 million and an effective tax rate of 28.0% for the second quarter. The second quarter tax rate reflects the effects of the
Company's balance sheet repositioning actions. Due to the significant impact of these actions on projected annual earnings, in the second
quarter, the Company began calculating its income tax provision using the year-to-date effective tax rate approach rather than the estimated
annual effective tax rate method. The decrease in the effective tax rate from the second quarter is due primarily to the recognition of
increased income tax benefits in the third quarter.
YTD September 30, 2026 vs YTD September 30, 2025
Income tax benefit of $45.1 million was recorded for the nine months ended September 30, 2026, resulting in an effective tax rate of
34.3%, compared to income tax expense of $61.7 million and an effective tax rate of 28.9% for the same period in 2025. The increase in
the effective tax rate from 2025 to 2026 is due primarily to the effects of the Company’s balance sheet repositioning actions taken in the
second quarter of 2026.
                                              7
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BALANCE SHEET HIGHLIGHTS
September 30,
June 30,
September 30,
Increase (Decrease)
Selected Balance Sheet Items
2026
2026
2025
QoQ
YoY
(In thousands)
Cash and cash equivalents
$2,168,707
$2,818,055
$2,398,265
$(649,348)
$(229,558)
Securities AFS
5,065,839
4,484,021
2,426,734
581,818
2,639,105
Securities HTM
—
—
2,303,657
—
(2,303,657)
Loans HFS
498,759
915,171
211,454
(416,412)
287,305
Loans and leases HFI
24,590,523
24,210,846
24,110,642
379,677
479,881
Total loans and leases
25,089,282
25,126,017
24,322,096
(36,735)
767,186
Total assets
34,965,495
35,030,953
34,012,965
(65,458)
952,530
Noninterest-bearing deposits
$7,690,767
$7,758,119
$7,603,748
$(67,352)
$87,019
Total deposits
28,260,309
28,121,182
27,184,765
139,127
1,075,544
Borrowings
2,408,626
2,460,363
2,005,022
(51,737)
403,604
Total liabilities
31,616,666
31,620,807
30,546,226
(4,141)
1,070,440
Total stockholders' equity
3,348,829
3,410,146
3,466,739
(61,317)
(117,910)
Securities
Available-for-sale ("AFS") securities increased by $0.6 billion during the third quarter to $5.1 billion at September 30, 2026 compared to
$4.5 billion at June 30, 2026, due primarily to the remaining reinvestment activities following the securities repositioning in the second
quarter. During the third quarter AFS securities were impacted by $997.2 million of purchases offset partially by $209.9 million of
principal paydowns, $160.2 million decrease in the fair value of AFS securities, $26.8 million of maturities, and $18.3 million of sales. As
of September 30, 2026, AFS securities had aggregate unrealized net after-tax losses in AOCI of $261.4 million, up from $145.3 million at
June 30, 2026, driven by higher interest rates.
                                              8
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Loans and Leases
The following table sets forth the composition, by loan category, of our loan and lease portfolio HFI as of the dates indicated:
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
(Dollars in thousands)
Composition of Loans and Leases
Real estate mortgage:
Commercial
$3,998,683
$4,037,229
$4,093,386
$4,314,637
$4,292,625
Multi-family
5,376,885
5,445,475
5,955,102
6,089,417
6,124,673
Other residential
4,100,716
3,793,876
3,458,410
3,346,733
3,162,564
Total real estate mortgage
13,476,284
13,276,580
13,506,898
13,750,787
13,579,862
Real estate construction and land:
Commercial
358,696
360,392
364,575
379,387
395,150
Residential
1,116,075
1,114,459
1,527,754
1,568,240
1,759,676
Total real estate construction and land
1,474,771
1,474,851
1,892,329
1,947,627
2,154,826
Total real estate
14,951,055
14,751,431
15,399,227
15,698,414
15,734,688
Commercial:
Asset-based
3,393,000
3,318,822
3,209,338
2,951,010
2,742,519
Venture capital
2,369,551
2,440,075
2,322,261
2,222,097
1,907,601
Other commercial
3,541,510
3,353,534
3,501,388
3,804,099
3,356,537
Total commercial
9,304,061
9,112,431
9,032,987
8,977,206
8,006,657
Consumer
335,407
346,984
348,133
357,059
369,297
Total loans and leases HFI
$24,590,523
$24,210,846
$24,780,347
$25,032,679
$24,110,642
Total unfunded loan commitments
$5,565,774
$5,211,632
$5,549,325
$5,433,357
$4,822,917
Composition as % of Total Loans and Leases
Real estate mortgage:
Commercial
16%
17%
17%
17%
18%
Multi-family
22%
22%
24%
24%
25%
Other residential
17%
16%
14%
14%
13%
Total real estate mortgage
55%
55%
55%
55%
56%
Real estate construction and land:
Commercial
1%
1%
2%
2%
2%
Residential
5%
5%
6%
6%
7%
Total real estate construction and land
6%
6%
8%
8%
9%
Total real estate
61%
61%
63%
63%
65%
Commercial:
Asset-based
14%
14%
13%
12%
11%
Venture capital
10%
10%
9%
9%
8%
Other commercial
14%
14%
14%
15%
14%
Total commercial
38%
38%
36%
36%
33%
Consumer
1%
1%
1%
1%
2%
Total loans and leases HFI
100%
100%
100%
100%
100%
Total loans and leases HFI increased by $379.7 million in the third quarter to $24.6 billion at September 30, 2026. The increase reflected
continued growth in the Company's other residential real estate mortgage loans and asset-based lending portfolios, as well as growth in the
other commercial portfolio during the quarter. Loan production and disbursements totaled $2.6 billion in the third quarter and were broad-
based, with a weighted average interest rate on production of 6.58%.
                                              9
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Total loans and leases HFS decreased by $416.4 million in the third quarter and totaled $498.8 million at September 30, 2026. The
decrease was primarily driven by the sale of loans associated with the Company's previously announced $827 million targeted loan sale.
Approximately $525 million were sold during the third quarter. Of the remaining approximately $300 million of construction loans, $235
million were sold on October 21, 2026, and $65 million were removed prior to sale as construction on the project was completed and the
loan converted into permanent financing. We anticipate selling our remaining held for sale loan portfolio over the next several quarters.
Credit Quality
September 30,
June 30,
March 31,
December 31,
September 30,
Asset Quality Information and Ratios
2026
2026
2026
2025
2025
(Dollars in thousands)
Delinquent loans and leases HFI:
30 to 89 days delinquent
$45,096
$91,196
$263,530
$108,303
$56,416
90+ days delinquent
69,704
82,457
81,599
92,655
104,952
Total delinquent loans and leases
$114,800
$173,653
$345,129
$200,958
$161,368
Total delinquent loans and leases to loans and leases HFI
0.47%
0.72%
1.39%
0.80%
0.67%
Nonperforming assets, excluding loans HFS:
Nonaccrual loans and leases
$177,233
$203,712
$185,734
$159,168
$174,541
90+ days delinquent loans and still accruing
—
—
—
—
—
Total nonperforming loans and leases ("NPLs")
177,233
203,712
185,734
159,168
174,541
Foreclosed assets, net
21,460
16,319
18,055
17,115
4,790
Total nonperforming assets ("NPAs")
$198,693
$220,031
$203,789
$176,283
$179,331
Classified loans and leases HFI
$507,368
$582,790
$842,834
$800,330
$763,582
Special mention loans and leases HFI
352,144
300,542
688,659
458,683
505,979
Criticized loans and leases HFI
$859,512
$883,332
$1,531,493
$1,259,013
$1,269,561
Allowance for loan and lease losses
$234,428
$243,319
$241,600
$245,612
$240,501
Allowance for loan and lease losses to NPLs
132.27%
119.44%
130.08%
154.31%
137.79%
NPLs to loans and leases HFI
0.72%
0.84%
0.75%
0.64%
0.72%
NPAs to total assets
0.57%
0.63%
0.59%
0.51%
0.53%
Classified loans and leases to loans and leases HFI
2.06%
2.41%
3.40%
3.20%
3.17%
Special mention loans and leases to loans and leases HFI
1.43%
1.24%
2.78%
1.83%
2.10%
Credit quality trends were favorable in the third quarter reflecting both portfolio actions and underlying migration in the third quarter.
Nonperforming and classified loans and leases as a percentage of total loans and leases HFI decreased 12 basis points and 35 basis points,
respectively, while special mention loans increased 19 basis points.
At September 30, 2026, total delinquent loans and leases were $114.8 million, compared to $173.7 million at June 30, 2026. The 30 to 89
days delinquent category decreased by $35.4 million in other residential real estate mortgage loans, $5.8 million in asset-based loans, $3.1
million in commercial real estate mortgage loans, and $2.5 million in other commercial loans. In the 90 or more days delinquent category,
there were decreases of $11.5 million in other commercial loans, $4.9 million in multi-family real estate mortgage loans, and $1.3 million
in commercial real estate mortgage loans, offset partially by an increase of $5.2 million in other residential real estate mortgage loans.
At September 30, 2026, nonperforming loans and leases were $177.2 million, compared to $203.7 million at June 30, 2026. During the
third quarter, nonperforming loans and leases decreased by $26.5 million due to transfers to loans HFS of $55.0 million, charge-offs of
$17.8 million, paydowns of $11.9 million, and transfers to accrual status of $11.0 million, offset partially by additions of $69.3 million.
At September 30, 2026, nonperforming assets were $198.7 million, or 0.57% of total assets, compared to $220.0 million, or 0.63% of total
assets, as of June 30, 2026. At September 30, 2026, nonperforming assets included $21.5 million of foreclosed assets, consisting primarily
of single-family residences.
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Allowance for Credit Losses – Loans
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
Allowance for Credit Losses - Loans
2026
2026
2025
2026
2025
(Dollars in thousands)
Allowance for loan and lease losses ("ALLL"):
Balance at beginning of period
$243,319
$241,600
$229,344
$245,612
$239,360
Charge-offs
(19,154)
(161,617)
(6,465)
(196,868)
(69,964)
Recoveries
1,863
1,336
8,922
5,484
14,125
Net (charge-offs) recoveries
(17,291)
(160,281)
2,457
(191,384)
(55,839)
Provision for loan losses
8,400
162,000
8,700
180,200
56,980
Balance at end of period
$234,428
$243,319
$240,501
$234,428
$240,501
Reserve for unfunded loan commitments ("RUC"):
Balance at beginning of period
$32,921
$34,921
$29,221
$34,921
$29,071
Provision for credit losses
2,000
(2,000)
1,000
—
1,150
Balance at end of period
$34,921
$32,921
$30,221
$34,921
$30,221
Allowance for credit losses ("ACL") - Loans:
Balance at beginning of period
$276,240
$276,521
$258,565
$280,533
$268,431
Charge-offs
(19,154)
(161,617)
(6,465)
(196,868)
(69,964)
Recoveries
1,863
1,336
8,922
5,484
14,125
Net (charge-offs) recoveries
(17,291)
(160,281)
2,457
(191,384)
(55,839)
Provision for credit losses
10,400
160,000
9,700
180,200
58,130
Balance at end of period
$269,349
$276,240
$270,722
$269,349
$270,722
ALLL to loans and leases HFI
0.95%
1.00%
1.00%
0.95%
1.00%
ACL to loans and leases HFI
1.10%
1.14%
1.12%
1.10%
1.12%
ACL to NPLs
151.97%
135.60%
155.11%
151.97%
155.11%
ACL to NPAs
135.56%
125.55%
150.96%
135.56%
150.96%
Annualized net charge-offs to average loans and leases
0.27%
2.54%
(0.04)%
1.02%
0.31%
The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $269.3 million, or 1.10% of
total loans and leases HFI at September 30, 2026, compared to $276.2 million, or 1.14% of total loans and leases HFI at June 30, 2026.
The $6.9 million decrease in the allowance was driven by net charge-offs of $17.3 million, of which $10.0 million had been specifically
reserved as of June 30, 2026, offset partially by the provision of $10.4 million.
In addition to the associated provisions in our ACL, our ability to absorb certain credit losses is also bolstered by (i) $109.9 million of loss
coverage from the credit-linked notes associated with the $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii)
unearned credit marks of $11.7 million on $1.2 billion of purchased loans without credit deterioration.
The ACL coverage of nonperforming loans and leases was 152% at September 30, 2026 compared to 136% at June 30, 2026. Net charge-
offs were 0.27% of average loans and leases (annualized) for the third quarter, compared to net charge-offs of 2.54% for the second
quarter. The quarter-over-quarter improvement was primarily attributable to the impact of the targeted loan sale process in the second
quarter.
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Deposits and Client Investment Funds
The following table sets forth the composition of our deposits at the dates indicated:
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
(Dollars in thousands)
Composition of Deposits
Noninterest-bearing checking
$7,690,767
$7,758,119
$7,797,542
$7,822,787
$7,603,748
Interest-bearing:
Checking
9,024,086
8,739,368
8,178,485
8,509,587
7,930,951
Money market
5,718,773
5,136,561
4,643,349
4,917,857
4,974,177
Savings
1,862,512
1,834,517
1,991,010
1,905,863
1,949,369
Time deposits:
Non-brokered
2,006,617
2,061,323
2,149,564
2,254,293
2,468,017
Brokered
1,957,554
2,591,294
2,562,184
2,432,970
2,258,503
Total time deposits
3,964,171
4,652,617
4,711,748
4,687,263
4,726,520
Total interest-bearing
20,569,542
20,363,063
19,524,592
20,020,570
19,581,017
Total deposits
$28,260,309
$28,121,182
$27,322,134
$27,843,357
$27,184,765
Composition as % of
Total Deposits
Noninterest-bearing checking
27%
28%
29%
28%
28%
Interest-bearing:
Checking
32%
31%
30%
30%
29%
Money market
20%
18%
17%
18%
19%
Savings
7%
7%
7%
7%
7%
Time deposits:
Non-brokered
7%
7%
8%
8%
9%
Brokered
7%
9%
9%
9%
8%
Total time deposits
14%
16%
17%
17%
17%
Total interest-bearing
73%
72%
71%
72%
72%
Total deposits
100%
100%
100%
100%
100%
Total deposits increased by $139.1 million to $28.3 billion at September 30, 2026 from $28.1 billion at June 30, 2026, driven primarily by
an increase in interest-bearing deposits of $206.5 million and a decrease in noninterest-bearing deposits of $67.4 million. Interest-bearing
deposits increased due mainly to higher balances in money market accounts of $582.2 million, checking accounts of $284.7 million, and
savings accounts of $28.0 million, offset partially by lower brokered and non-brokered time deposits of $688.4 million.
At September 30, 2026, noninterest-bearing checking deposits totaled $7.7 billion, or 27% of total deposits, compared to $7.8 billion, or
28% of total deposits, at June 30, 2026.
At September 30, 2026, uninsured and uncollateralized deposits totaled $7.3 billion, or 26% of total deposits, compared to $7.6 billion, or
27% of total deposits, at June 30, 2026.
In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess
liquidity. These off-balance sheet client funds totaled $1.0 billion at September 30, 2026 and June 30, 2026, respectively.
Borrowings
Borrowings decreased by $51.7 million to $2.4 billion at September 30, 2026 from $2.5 billion at June 30, 2026, driven primarily by the
repayment of a maturing long-term FHLB advance.
                                              12
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Equity
During the third quarter, total stockholders’ equity decreased by $61.3 million to $3.3 billion and tangible common equity(1) decreased by
$55.1 million to $2.5 billion at September 30, 2026. The decrease in total stockholders’ equity for the third quarter resulted primarily from
an increase in the aggregate unrealized net after-tax loss in AOCI for AFS securities of $116.1 million and common and preferred stock
dividends of $29.3 million, offset partially by net earnings of $83.1 million.
At September 30, 2026, book value per common share decreased to $17.99 compared to $18.38 at June 30, 2026, and tangible book value
per common share(1) decreased to $16.09 compared to $16.44 at June 30, 2026. The decrease was primarily driven by the increased
aggregate unrealized net after-tax loss in AOCI on our portfolio of AFS securities.
For the nine-month period ended September 30, 2026, the Company repurchased 1,709,935 shares of common and common equivalent
stock at a weighted average price per share of $18.68, or $31.9 million in the aggregate. As of September 30, 2026, $82.6 million remained
available under the current stock repurchase authorization, which expires in March 2027.
(1) Non-GAAP measure; refer to section 'Non-GAAP Measures'
CAPITAL AND LIQUIDITY
The following table sets forth our regulatory capital ratios as of the dates indicated:
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Capital Ratios (1)
Banc of California, Inc.
Total risk-based capital ratio
14.71%
14.31%
16.55%
16.31%
16.69%
Tier 1 risk-based capital ratio
12.10%
11.67%
12.54%
12.34%
12.56%
Common equity tier 1 capital ratio
9.70%
9.25%
10.18%
10.01%
10.14%
Tier 1 leverage ratio
9.14%
8.89%
9.97%
9.99%
9.77%
Banc of California
Total risk-based capital ratio
13.97%
13.74%
15.97%
15.61%
15.94%
Tier 1 risk-based capital ratio
12.94%
12.68%
13.50%
13.15%
13.42%
Common equity tier 1 capital ratio
12.94%
12.68%
13.50%
13.15%
13.42%
Tier 1 leverage ratio
9.77%
9.64%
10.73%
10.65%
10.44%
______________
(1) September 30, 2026 capital ratios are preliminary.
At September 30, 2026, cash and cash equivalents totaled $2.2 billion, down $649.3 million from June 30, 2026, reflecting the full
reinvestment of cash generated from the securities repositioning.
Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available
borrowing capacity of $8.7 billion and unpledged AFS securities of $3.9 billion, total available liquidity was $14.6 billion at the end of the
third quarter.
                                              13
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Conference Call
The Company will host a conference call to discuss its third quarter 2026 financial results at 8:30 a.m. Pacific Time (PT) on Wednesday,
October 28, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code
7279202. 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 (855) 669-9658 and referencing event code 1286998.
About Banc of California, Inc.
Banc of California, Inc. (NYSE: BANC) is a bank holding company with over $34 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. Through its Private Banking division, the bank also serves
individuals and families with personalized banking solutions, dedicated relationship management, and exceptional service. Banc of
California is the largest publicly-traded 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 76 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-service
payment processing solutions to its clients 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.
Member FDIC. For more information, please visit us at www.bancofcal.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to our expectations regarding the
performance of our business, profitability, liquidity and capital ratios; the anticipated benefits of our strategic repositioning including,
among others, a strengthened credit profile, possible net interest income and net interest margin expansion and an enhanced earnings
profile; 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.
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 tariffs and retaliatory tariffs,
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 and private 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) our ability to achieve or maintain the anticipated benefits of our strategic repositioning due to one or more of the other
factors described herein or otherwise; (ix) our ability to successfully implement new business initiatives, such as our private banking
service, and to realize their anticipated benefits; (x) our ability to raise capital or incur debt on reasonable terms; (xi) the costs and effects
of litigation; (xii) 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; (xiii) the competitive and other impacts on our business
of emerging technologies, including stablecoins and other digital currencies, tokenized deposits, blockchain, artificial intelligence,
quantum computing, and related innovations affecting both the Company and the banking industry; (xiv) results of examinations by
regulatory authorities of the Company and the possibility that any such regulatory authority may, among other things, limit our business
                                              14
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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; (xv) 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; (xvi) the risk that
our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xvii) errors in
estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result
in significant changes in valuation or recoveries; (xviii) cybersecurity threats and failures or security breaches with respect to the network,
applications, vendors and computer systems on which we depend; (xix) our ability to attract and retain key members of our senior
management team; (xx) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires,
pandemics, epidemics and other public health crises, geopolitical conflicts and military activity (including the ongoing Iran war) or acts of
terrorism, and other external events on our business; (xxi) 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; (xxii) the possibility that our recorded goodwill
could become impaired, which may have an adverse impact on our earnings and capital; (xxiii) 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; (xxiv) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment
securities or other assets; (xxv) the effects of any damage to our reputation resulting from developments related to any of the items
identified above; and (xxvi) 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,
2025 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 common equity, tangible book value per common
share, return on average tangible common equity, pre-tax pre-provision income, and efficiency 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
Meghan O'Leary, (310) 236-8236
Media Contact:
Debora Vrana, Banc of California
(213) 533-3122
Deb.Vrana@bancofcal.com
                                              15
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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
ASSETS:
(Dollars in thousands)
Cash and due from banks
$293,680
$225,343
$214,120
$181,103
$205,364
Interest-earning deposits in financial institutions
1,875,027
2,592,712
2,003,149
2,126,862
2,192,901
Total cash and cash equivalents
2,168,707
2,818,055
2,217,269
2,307,965
2,398,265
Securities AFS
5,065,839
4,484,021
2,656,332
2,454,058
2,426,734
Securities HTM
—
—
2,313,548
2,308,636
2,303,657
FRB and FHLB stock
175,691
181,352
170,342
160,442
159,337
Total investment securities
5,241,530
4,665,373
5,140,222
4,923,136
4,889,728
Loans HFS
498,759
915,171
259,049
182,936
211,454
Loans and leases HFI
24,590,523
24,210,846
24,780,347
25,032,679
24,110,642
Allowance for loan and lease losses
(234,428)
(243,319)
(241,600)
(245,612)
(240,501)
Total loans and leases HFI, net
24,356,095
23,967,527
24,538,747
24,787,067
23,870,141
Equipment leased to others under operating leases
267,883
218,444
223,558
238,232
280,872
Premises and equipment, net
147,343
145,440
146,316
146,698
132,766
Bank owned life insurance
352,351
348,777
352,707
350,083
348,051
Goodwill
214,521
214,521
214,521
214,521
214,521
Intangible assets, net
86,521
92,709
99,091
105,287
111,923
Deferred tax asset, net
743,714
704,467
653,481
656,755
672,159
Other assets
888,071
940,469
879,280
884,762
883,085
Total assets
$34,965,495
$35,030,953
$34,724,241
$34,797,442
$34,012,965
LIABILITIES:
Noninterest-bearing deposits
$7,690,767
$7,758,119
$7,797,542
$7,822,787
$7,603,748
Interest-bearing deposits
20,569,542
20,363,063
19,524,592
20,020,570
19,581,017
Total deposits
28,260,309
28,121,182
27,322,134
27,843,357
27,184,765
Borrowings
2,408,626
2,460,363
2,551,250
2,063,819
2,005,022
Subordinated debt
575,024
573,555
954,072
952,740
950,888
Accrued interest payable and other liabilities
372,707
465,707
343,459
396,249
405,551
Total liabilities
31,616,666
31,620,807
31,170,915
31,256,165
30,546,226
STOCKHOLDERS' EQUITY:
Preferred stock
498,516
498,516
498,516
498,516
498,516
Common stock
1,580
1,580
1,538
1,500
1,509
Class B non-voting common stock
5
5
5
5
5
Non-voting common stock equivalents
—
—
—
50
41
Additional paid-in-capital
3,471,958
3,485,560
3,501,213
3,552,483
3,563,145
Retained deficit
(358,195)
(431,305)
(180,011)
(242,016)
(309,460)
Accumulated other comprehensive loss, net
(265,035)
(144,210)
(267,935)
(269,261)
(287,017)
Total stockholders’ equity
3,348,829
3,410,146
3,553,326
3,541,277
3,466,739
Total liabilities and stockholders’ equity
$34,965,495
$35,030,953
$34,724,241
$34,797,442
$34,012,965
Common shares outstanding (1)
158,459,635
158,432,520
154,262,045
155,533,403
155,522,693
______________
(1) Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non‑voting common stock equivalents
outstanding as of September 30, 2026, June 30, 2026, and March 31, 2026.
                                              16
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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
2026
2026
2025
2026
2025
(In thousands, except per share amounts)
Interest income:
Loans and leases
$362,549
$354,832
$372,723
$1,067,324
$1,081,129
Investment securities
60,125
42,407
38,291
144,405
113,769
Deposits in financial institutions
20,062
17,357
21,527
53,045
64,807
Total interest income
442,736
414,596
432,541
1,264,774
1,259,705
Interest expense:
Deposits
130,248
124,270
143,074
374,751
428,544
Borrowings
27,623
26,568
20,461
74,368
58,903
Subordinated debt
12,423
13,257
15,562
41,095
46,234
Total interest expense
170,294
164,095
179,097
490,214
533,681
Net interest income
272,442
250,501
253,444
774,560
726,024
Provision for credit losses
10,400
161,780
9,700
181,980
58,100
Net interest income after provision for credit losses
262,042
88,721
243,744
592,580
667,924
Noninterest income:
Service charges on deposit accounts
4,881
4,763
5,109
14,622
14,108
Commissions and fees
9,307
9,034
9,514
29,321
29,113
Leased equipment income
9,812
7,820
10,321
26,162
31,336
Loss on loans and leases HFS
(4,199)
(12,544)
(374)
(16,733)
(142)
Gain (loss) on securities AFS
728
(256,749)
—
(256,021)
—
Dividends and gains on equity investments
2,675
3,326
2,291
8,003
4,500
Warrant income
221
896
433
2,055
1,365
Other income
7,931
9,358
6,991
25,179
20,288
Total noninterest income (loss)
31,356
(234,096)
34,285
(167,412)
100,568
Noninterest expense:
Compensation
87,318
85,120
88,865
263,538
263,644
Occupancy
14,733
14,714
15,415
44,339
45,898
Information technology and data processing
13,133
13,769
13,535
41,241
41,707
Other professional services
5,914
5,599
5,394
15,749
16,313
Insurance and assessments
12,211
14,500
8,994
33,475
25,680
Intangible asset amortization
6,188
6,349
7,160
18,885
21,479
Leased equipment depreciation
6,078
5,168
6,750
16,550
20,191
Customer related expense
24,834
24,114
26,227
72,685
80,555
Loan expense
4,709
5,170
4,947
14,171
11,927
Other expense
10,252
15,364
8,397
35,995
27,812
Total noninterest expense
185,370
189,867
185,684
556,628
555,206
Earnings (loss) before income taxes
108,028
(335,242)
92,345
(131,460)
213,286
Income tax expense (benefit)
24,971
(93,895)
22,716
(45,122)
61,704
Net earnings (loss)
83,057
(241,347)
69,629
(86,338)
151,582
Preferred stock dividends
9,947
9,947
9,947
29,841
29,841
Net earnings (loss) available to common
and equivalent stockholders
$73,110
$(251,294)
$59,682
$(116,179)
$121,741
Earnings (loss) per common share:
Basic
$0.46
$(1.61)
$0.38
$(0.74)
$0.75
Diluted
$0.46
$(1.61)
$0.38
$(0.74)
$0.75
Weighted average number of common shares outstanding: (1)
Basic
158,441
155,803
157,103
156,368
161,276
Diluted
160,307
155,803
159,051
156,368
161,993
______________
(1) Common shares outstanding include non-voting common stock equivalents that are participating securities.
                                              17
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BANC OF CALIFORNIA, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
Profitability and Other Ratios
2026
2026
2025
2026
2025
Return on average assets (1)
0.94%
(2.79)%
0.82%
(0.33)%
0.60%
Return on average equity (1)
9.71%
(27.31)%
8.04%
(3.30)%
5.85%
Return on average tangible common equity (1)(2)
11.93%
(36.18)%
9.87%
(5.17)%
6.99%
Dividend payout ratio (3)
26.09%
(7.45)%
26.32%
(48.65)%
40.00%
Average yield on loans and leases (1)
5.69%
5.63%
6.05%
5.69%
5.96%
Average yield on interest-earning assets (1)
5.43%
5.18%
5.50%
5.29%
5.44%
Average cost of interest-bearing deposits (1)
2.55%
2.52%
2.89%
2.53%
2.94%
Average total cost of deposits (1)
1.83%
1.80%
2.08%
1.81%
2.11%
Average cost of interest-bearing liabilities (1)
2.90%
2.88%
3.19%
2.88%
3.24%
Average total cost of funds (1)
2.16%
2.14%
2.37%
2.14%
2.40%
Net interest spread
2.53%
2.30%
2.31%
2.41%
2.20%
Net interest margin (1)
3.34%
3.13%
3.22%
3.24%
3.13%
Noninterest income to total revenue (4)
10.32%
(1426.98)%
11.92%
(27.57)%
12.17%
Noninterest expense to average total assets (1)
2.10%
2.20%
2.18%
2.15%
2.21%
Noninterest expense to total revenue (4)
61.02%
1157.37%
64.53%
91.68%
67.17%
Efficiency ratio (2)(5)
59.12%
67.18%
62.05%
62.30%
64.57%
Loans to deposits ratio
88.78%
89.30%
89.47%
88.78%
89.47%
Average loans and leases to average deposits
89.68%
91.48%
89.62%
90.53%
89.25%
Average investment securities to average total assets
14.03%
14.25%
14.14%
14.34%
14.11%
Average stockholders' equity to average total assets
9.69%
10.23%
10.16%
10.11%
10.30%
______________
(1) Annualized.
(2) Non-GAAP measure.
(3) Ratio calculated by dividing dividends declared per common and equivalent share by basic earnings (loss) per common and equivalent share.
(4) Total revenue equals the sum of net interest income and noninterest income.
(5) Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (the sum of net
    interest income and noninterest income, less gain (loss) on securities AFS).
                                              18
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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
(UNAUDITED)
Three Months Ended
September 30, 2026
June 30, 2026
September 30, 2025
Average
Average
Average
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
Balance
Interest
Rate
(Dollars in thousands)
Assets:
Loans and leases (1)
$25,274,927
$362,549
5.69%
$25,266,712
$354,832
5.63%
$24,458,255
$372,723
6.05%
Investment securities
4,912,701
60,125
4.86%
4,938,232
42,407
3.44%
4,782,070
38,291
3.18%
Deposits in financial institutions
2,166,626
20,062
3.67%
1,912,585
17,357
3.64%
1,958,011
21,527
4.36%
Total interest-earning assets
32,354,254
442,736
5.43%
32,117,529
414,596
5.18%
31,198,336
432,541
5.50%
Other assets
2,666,216
2,527,401
2,632,881
Total assets
$35,020,470
$34,644,930
$33,831,217
Liabilities and Stockholders' Equity:
Interest checking
$8,878,491
53,397
2.39%
$8,313,161
47,694
2.30%
$7,855,639
53,995
2.73%
Money market
5,252,893
28,127
2.12%
4,736,107
23,429
1.98%
5,154,138
30,461
2.34%
Savings
1,865,962
10,024
2.13%
1,883,240
9,575
2.04%
1,966,040
12,689
2.56%
Time
4,301,532
38,700
3.57%
4,820,101
43,572
3.63%
4,633,089
45,929
3.93%
Total interest-bearing deposits
20,298,878
130,248
2.55%
19,752,609
124,270
2.52%
19,608,906
143,074
2.89%
Borrowings
2,461,168
27,623
4.45%
2,399,546
26,568
4.44%
1,705,697
20,461
4.76%
Subordinated debt
574,612
12,423
8.58%
699,159
13,257
7.61%
949,690
15,562
6.50%
Total interest-bearing liabilities
23,334,658
170,294
2.90%
22,851,314
164,095
2.88%
22,264,293
179,097
3.19%
Noninterest-bearing demand deposits
7,885,157
7,866,139
7,683,136
Other liabilities
408,643
382,336
446,453
Total liabilities
31,628,458
31,099,789
30,393,882
Stockholders' equity
3,392,012
3,545,141
3,437,335
Total liabilities and stockholders' equity
$35,020,470
$34,644,930
$33,831,217
Net interest income (1)
$272,442
$250,501
$253,444
Net interest spread
2.53%
2.30%
2.31%
Net interest margin
3.34%
3.13%
3.22%
Total deposits (2)
$28,184,035
$130,248
1.83%
$27,618,748
$124,270
1.80%
$27,292,042
$143,074
2.08%
Total funds (3)
$31,219,815
$170,294
2.16%
$30,717,453
$164,095
2.14%
$29,947,429
$179,097
2.37%
______________
(1) Includes net loan discount accretion of $8.7 million, $11.2 million, and $19.3 million for the three months ended September 30, 2026, June 30, 2026, and September 30,
2025.
(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.
                                              19
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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
(UNAUDITED)
Nine Months Ended
September 30, 2026
September 30, 2025
Average
Average
Average
Yield/
Average
Yield/
Balance
Interest
Rate
Balance
Interest
Rate
(Dollars in thousands)
Assets:
Loans and leases (1)
$25,086,150
$1,067,324
5.69%
$24,252,860
$1,081,129
5.96%
Investment securities
4,955,926
144,405
3.90%
4,745,530
113,769
3.21%
Deposits in financial institutions
1,942,176
53,045
3.65%
1,972,486
64,807
4.39%
Total interest-earning assets
31,984,252
1,264,774
5.29%
30,970,876
1,259,705
5.44%
Other assets
2,575,510
2,665,623
Total assets
$34,559,762
$33,636,499
Liabilities and Stockholders' Equity:
Interest checking
$8,458,185
147,973
2.34%
$7,661,200
154,751
2.70%
Money market
4,926,608
74,382
2.02%
5,326,554
97,079
2.44%
Savings
1,902,008
29,371
2.06%
1,958,289
38,323
2.62%
Time
4,543,252
123,025
3.62%
4,567,443
138,391
4.05%
Total interest-bearing deposits
19,830,053
374,751
2.53%
19,513,486
428,544
2.94%
Borrowings
2,211,339
74,368
4.50%
1,578,462
58,903
4.99%
Subordinated debt
741,114
41,095
7.41%
946,441
46,234
6.53%
Total interest-bearing liabilities
22,782,506
490,214
2.88%
22,038,389
533,681
3.24%
Noninterest-bearing demand deposits
7,880,575
7,660,504
Other liabilities
401,971
474,038
Total liabilities
31,065,052
30,172,931
Stockholders' equity
3,494,710
3,463,568
Total liabilities and stockholders' equity
$34,559,762
$33,636,499
Net interest income (1)
$774,560
$726,024
Net interest spread
2.41%
2.20%
Net interest margin
3.24%
3.13%
Total deposits (2)
$27,710,628
$374,751
1.81%
$27,173,990
$428,544
2.11%
Total funds (3)
$30,663,081
$490,214
2.14%
$29,698,893
$533,681
2.40%
______________
(1) Includes net loan discount accretion of $32.2 million and $51.5 million for the nine months ended September 30, 2026 and 2025.
(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.
                                              20
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press
release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, pre-tax
pre-provision income, and efficiency ratio. These non-GAAP measures are used by management in its analysis of the Company's
performance.
Tangible common equity is total stockholders' equity less preferred stock, goodwill and intangible assets. Tangible book value per common
share is calculated by dividing tangible common equity by common shares outstanding. Return on average tangible common equity is
calculated by dividing net earnings available to common stockholders, after adjustment for amortization of intangible assets and any
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.
Pre-tax pre-provision income is calculated by subtracting noninterest expense from total revenue, which is the sum of net interest income
and noninterest income.
Efficiency ratio is calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and
reorganization costs) by total revenue (the sum of net interest income and noninterest income, less gain (loss) on securities AFS).
Management believes the presentation of these financial measures provides useful supplemental information that is helpful to an
understanding of the financial results and operating performance of the Company. This disclosure should not be viewed as a substitute for
results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented
by other companies.
The following tables provide reconciliations of the non-GAAP measures to financial measures defined by GAAP.
                                              21
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common Equity
September 30,
June 30,
March 31,
December 31,
September 30,
and Tangible Book Value Per Share
2026
2026
2026
2025
2025
(Dollars in thousands, except per share amounts)
Stockholders' equity
$3,348,829
$3,410,146
$3,553,326
$3,541,277
$3,466,739
Less: Preferred stock
498,516
498,516
498,516
498,516
498,516
Total common equity
2,850,313
2,911,630
3,054,810
3,042,761
2,968,223
Less: Goodwill and intangible assets
301,042
307,230
313,612
319,808
326,444
Tangible common equity
$2,549,271
$2,604,400
$2,741,198
$2,722,953
$2,641,779
Book value per common share (1)
$17.99
$18.38
$19.80
$19.56
$19.09
Tangible book value per common share (2)
$16.09
$16.44
$17.77
$17.51
$16.99
Common shares outstanding (3)
158,459,635
158,432,520
154,262,045
155,533,403
155,522,693
______________
(1) Total common equity divided by common shares outstanding.
(2) Tangible common equity divided by common shares outstanding.
(3) Common shares outstanding include non-voting common stock equivalents that are participating securities. There were no non‑voting common stock equivalents
outstanding as of September 30, 2026, June 30, 2026, and March 31, 2026.
                                              22
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Nine Months Ended
Return on Average Tangible
September 30,
June 30,
September 30,
September 30,
Common Equity ("ROATCE")
2026
2026
2025
2026
2025
(Dollars in thousands)
Net earnings (loss)
$83,057
$(241,347)
$69,629
$(86,338)
$151,582
Adjustments:
Intangible asset amortization
6,188
6,349
7,160
18,885
21,479
Tax impact of adjustment above (1)
(1,431)
(1,778)
(1,958)
(6,481)
(5,872)
Adjustment to net earnings (loss)
4,757
4,571
5,202
12,404
15,607
Adjusted net earnings (loss) for ROATCE
87,814
(236,776)
74,831
(73,934)
167,189
Less: Preferred stock dividends
9,947
9,947
9,947
29,841
29,841
Adjusted net earnings (loss) available to common and
equivalent stockholders for ROATCE
$77,867
$(246,723)
$64,884
$(103,775)
$137,348
Average stockholders' equity
$3,392,012
$3,545,141
$3,437,335
$3,494,710
$3,463,568
Less: Average goodwill and intangible assets
304,652
311,068
330,277
310,932
337,361
Less: Average preferred stock
498,516
498,516
498,516
498,516
498,516
Average tangible common equity
$2,588,844
$2,735,557
$2,608,542
$2,685,262
$2,627,691
Return on average equity (2)
9.71%
(27.31)%
8.04%
(3.30)%
5.85%
ROATCE (3)
11.93%
(36.18)%
9.87%
(5.17)%
6.99%
______________
(1) Effective tax rates of 23.12%, 28.00%, and 27.34% used for the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. Effective
tax rates of 34.32% and 27.34% used for the nine months ended September 30, 2026 and 2025.
(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.
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
Pre-Tax Pre-Provision Income (Loss)
2026
2026
2025
2026
2025
(Dollars in thousands)
Net interest income (GAAP)
$272,442
$250,501
$253,444
$774,560
$726,024
Add: Noninterest income (loss) (GAAP)
31,356
(234,096)
34,285
(167,412)
100,568
Total revenues (GAAP)
303,798
16,405
287,729
607,148
826,592
Less: Noninterest expense (GAAP)
185,370
189,867
185,684
556,628
555,206
Pre-tax pre-provision income (loss) (Non-GAAP)
$118,428
$(173,462)
$102,045
$50,520
$271,386
                                              23
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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
Efficiency Ratio
2026
2026
2025
2026
2025
(Dollars in thousands)
Noninterest expense
$185,370
$189,867
$185,684
$556,628
$555,206
Less: Intangible asset amortization
(6,188)
(6,349)
(7,160)
(18,885)
(21,479)
Noninterest expense used for efficiency ratio
$179,182
$183,518
$178,524
$537,743
$533,727
Net interest income
$272,442
$250,501
$253,444
$774,560
$726,024
Noninterest income (loss)
31,356
(234,096)
34,285
(167,412)
100,568
Total revenue
303,798
16,405
287,729
607,148
826,592
Add: (Gain) loss on securities AFS
(728)
256,749
—
256,021
—
Total revenue used for efficiency ratio
$303,070
$273,154
$287,729
$863,169
$826,592
Noninterest expense to total revenue
61.02%
1157.37%
64.53%
91.68%
67.17%
Efficiency ratio (1)
59.12%
67.18%
62.05%
62.30%
64.57%
______________
(1) Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.