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LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) today announced it will release financial results for the second quarter ended June 30, 2026 before the market opens on Wednesday, July 29, 2026. The Company will host a conference call to discuss these financial results the same day at 8:00 a.m. Pacific Time (PT). Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 9364475. A link to the live audio w.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Banc of California (BANC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of 4.56% since the start of the year. Currently paying a dividend of $0.12 per share, the company has a dividend yield of 2.38%. In comparison, the Banks - Southwest industry's yield is 1.64%, while the S&P 500's yield is 1.41%.

Looking at dividend growth, the company's current annualized dividend of $0.48 is up 20% from last year. Over the last 5 years, Banc of California has increased its dividend 1 times on a year-over-year basis for an average annual increase of 16.61%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Banc of California's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BANC expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $1.72 per share, which represents a year-over-year growth rate of 27.41%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BANC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

-

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) announced today that its Board of Directors approved an extension of the Company’s existing stock repurchase program, which was originally announced on March 17, 2025 and subsequently upsized from $150 million to $300 million on April 23, 2025. Since inception of the program, the Company has repurchased approximately $217 million of its common stock, $31 million of which was repurchased in 2026, leaving approximately $83 million available for future repurchases. The stock repurchase program, which was previously scheduled to expire in March 2026, has been extended through March 16, 2027. Repurchases under the program may be made from time to time in open market transactions, in block transactions on or off an exchange, in privately negotiated transactions, or by other means as determined by the Company’s management and in accordance with the regulations of the Securities and Exchange Commission. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, market conditions, and corporate and regulatory requirements.

The Company also announced Banc of California’s intent to redeem the entire outstanding $385 million aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”) originally issued by Pacific Western Bank, which are scheduled to reset to a floating rate equal to three-month term SOFR plus 252 bps beginning on May 1, 2026. The Notes are redeemable in whole or in part beginning on May 1, 2026 at a redemption price equal to 100% of principal amount of the Notes redeemed, plus any accrued and unpaid interest.

The proposed redemption is part of the Company’s ongoing capital management strategy and reflects its robust liquidity and strong capital position.

“Extending our stock repurchase program enables us to continue returning excess capital to stockholders through disciplined share repurchases,” said Jared Wolff, Chairman and CEO of Banc of California. “At the same time, retiring higher-cost subordinated debt improves our funding profile, reduces interest expense, and strengthens our overall capital structure. Together, these actions demonstrate our continued commitment to prudent capital management and delivering sustainable long-term returns to our stockholders.”

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to the Company’s expectations regarding use of its stock repurchase program, confidence in its earnings outlook 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. Such statements are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including factors described in “Part I—Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which is filed with the Securities and Exchange Commission ("SEC"), as such factors may be update from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made, except as required by law.

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. 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 79 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.

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LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) today announced it will release financial results for the first quarter ended March 31, 2026 after market close on Wednesday, April 22, 2026. The Company will host a conference call to discuss these financial results the following day on Thursday, April 23, 2026, at 10:00 a.m. Pacific Time (PT).

Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. A link to the live audio webcast and the slide presentation for the call will be available on the Company’s investor relations website prior to the call. An audio archive of the conference call will be available on the Company’s investor relations website within 24 hours after the end of the call.

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. 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 79 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.

More News From Banc of California, Inc.

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Banc of California (BANC - Free Report) closed the last trading session at $17.63, gaining 3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $23.18 indicates a 31.5% upside potential.

The average comprises 11 short-term price targets ranging from a low of $20.50 to a high of $25.00, with a standard deviation of $1.76. While the lowest estimate indicates an increase of 16.3% from the current price level, the most optimistic estimate points to a 41.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for BANC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why BANC Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.1%.

Moreover, BANC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much BANC could gain, the direction of price movement it implies does appear to be a good guide.

Wall Street expects a year-over-year increase in earnings on higher revenues when Banc of California (BANC - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on April 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis banking service and lending company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +46.2%.

Revenues are expected to be $290.8 million, up 9.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Banc of California?For Banc of California, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Banc of California will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Banc of California would post earnings of $0.38 per share when it actually produced earnings of $0.42, delivering a surprise of +10.53%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Banc of California doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerBOK Financial (BOKF - Free Report) , another stock in the Zacks Banks - Southwest industry, is expected to report earnings per share of $2.3 for the quarter ended March 2026. This estimate points to a year-over-year change of +23.7%. Revenues for the quarter are expected to be $546.8 million, up 8.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for BOK Financial has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.22%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that BOK Financial will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC):

Quarter Highlights

$0.39

Earnings Per Share

$19.80
Book Value Per Share

$17.77
Tangible Book Value

Per Share(1)

3.24%
Net Interest Margin

4%
Loan Average Annualized Growth

4%
Noninterest-bearing Deposit Average Annualized Growth

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 first quarter ended March 31, 2026. The Company reported net earnings available to common and equivalent stockholders of $62.0 million, or $0.39 per diluted common share, for the first quarter of 2026, compared to $67.4 million, or $0.42 per diluted common share for the fourth quarter of 2025.

During the quarter, the Company extended its existing $300 million stock repurchase program through March 2027 and announced plans to redeem $385 million of subordinated debt, reflecting continued capital flexibility and commitment to creating value for our shareholders.

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our first quarter results reflect disciplined execution and continued strength in our core earnings drivers. We delivered positive operating leverage and significant earnings growth year over year, supported by net interest margin expansion, disciplined expense management, and continued progress in improving the mix and earnings power of the balance sheet. Supported by our healthy capital and liquidity position, we also efficiently deployed capital through opportunistic share repurchases and announced the redemption of subordinated debt. As we look ahead, we are well positioned for continued earnings growth, supported by strong pipelines, embedded asset repricing opportunities, and our attractive market position.”

First Quarter 2026 Financial Highlights:

Total revenue of $286.9 million, up 8% year over year, with pre-tax pre-provision income(1) of $105.6 million, up 28% year over year. Net interest margin expanded 4 basis points to 3.24% compared to fourth quarter 2025, driven by an 11 basis point decline in deposit costs. Average total deposits increased by $103.4 million, and average noninterest-bearing deposits grew $81.2 million to 28.9% of average total deposits. First quarter loan production and disbursements totaled $2.1 billion, with a weighted average interest rate on production of 6.65%, supporting our balance sheet remixing and providing embedded earnings upside as higher-rate production replaces lower-yielding fixed-rate and hybrid loans. Average total loans increased $267.5 million. Total noninterest expense of $181.4 million, down 1% year over year. Maintained allowance for credit losses coverage of 1.12% of total loans held for investment. Repurchased $31.9 million of common stock and common equivalent stock at a weighted average price per share of $18.68. Growth in book value per share to $19.80 and tangible book value per share(1) to $17.77, up 9% and 10% year over year, respectively. Healthy capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.54% Tier 1 capital ratio and 10.18% CET 1 capital ratio. INCOME STATEMENT HIGHLIGHTS

Three Months Ended

March 31,

December 31,

March 31,

Summary Income Statement

2026

2025

2025

(In thousands)

Total interest income

$

407,442

$

416,948

$

406,655

Total interest expense

155,825

165,586

174,291

Net interest income

251,617

251,362

232,364

Provision for credit losses

9,800

12,500

9,300

Gain on sale of loans

7

18

211

Other noninterest income

35,321

41,553

33,439

Total noninterest income

35,328

41,571

33,650

Total revenue

286,945

292,933

266,014

Total noninterest expense

181,391

180,644

183,653

Earnings before income taxes

95,754

99,789

73,061

Income tax expense

23,802

22,398

19,493

Net earnings

71,952

77,391

53,568

Preferred stock dividends

9,947

9,947

9,947

Net earnings available to common and equivalent stockholders

$

62,005

$

67,444

$

43,621

Diluted earnings per share

$

0.39

$

0.42

$

0.26

Net Interest Income and Margin

First Quarter of 2026 Compared to Fourth Quarter of 2025

Net interest income increased by $0.3 million to $251.6 million for the first quarter, up from $251.4 million in the fourth quarter. This increase was primarily driven by a $9.7 million decrease in interest expense on deposits, reflecting lower interest rates due to the full quarter impact of the federal funds rate cuts of 50 basis points in the fourth quarter and two fewer days in the quarter. Additionally, interest income from investment securities rose by $2.3 million, supported by higher average balances from security purchases and a Federal Home Loan Bank (FHLB) special dividend. These positive factors were offset partially by a $9.3 million decrease in interest income from loans, mainly due to two fewer days in the quarter and lower average yields resulting from the federal funds rate cuts. Interest income from deposits in financial institutions also declined by $2.5 million, driven by lower average balances and interest rates.

Net interest margin was 3.24% for the first quarter, up 4 basis points from 3.20% for the fourth quarter primarily driven by lower average total cost of funds, offset partially by lower average yield on interest-earning assets. The average total cost of funds decreased to 2.10% from 2.20%, as a result of an 11 basis point decrease in the average total cost of deposits to 1.78%, and an 11 basis point decrease in the average cost of borrowings to 4.63%. The average yield on interest-earning assets decreased to 5.25% from 5.31%, as a result of a 9 basis point decrease in the average yield on loans and leases to 5.74%. Declines in both funding costs and asset yield reflect the full quarter impact of rate cuts that occurred in fourth quarter.

Average total deposits increased by $103.4 million, with a $81.2 million increase in average noninterest-bearing deposits and $22.2 million increase in average interest-bearing deposits. Average noninterest-bearing deposits represented 28.9% of average total deposits in the first quarter, up from 28.7% in the fourth quarter.

Three Months Ended

Increase (Decrease)

March 31, 2026

December 31, 2025

QoQ

Summary Average Balance and Yield/Cost Data

Interest

Average

Interest

Average

Average

Average

Income/

Yield/

Average

Income/

Yield/

Average

Yield/

Balance

Expense

Cost

Balance

Expense

Cost

Balance

Cost

(Dollars in thousands)

Assets:

Loans and leases(1)

$

24,710,609

$

349,943

5.74

%

$

24,443,089

$

359,268

5.83

%

$

267,520

(0.09

)%

Investment securities

5,018,002

41,873

3.38

%

4,891,281

39,557

3.21

%

126,721

0.17

%

Deposits in financial institutions

1,742,657

15,626

3.64

%

1,834,773

18,123

3.92

%

(92,116

)

(0.28

)%

Total interest-earning assets

$

31,471,268

$

407,442

5.25

%

$

31,169,143

$

416,948

5.31

%

$

302,125

(0.06

)%

Liabilities:

Noninterest-bearing demand deposits

$

7,890,489

$

7,809,326

$

81,163

Total interest-bearing deposits

19,429,112

$

120,233

2.51

%

19,406,865

$

129,896

2.66

%

22,247

(0.15

)%

Total deposits

$

27,319,601

120,233

1.78

%

$

27,216,191

129,896

1.89

%

$

103,410

(0.11

)%

Total interest-bearing liabilities

$

22,148,512

$

155,825

2.85

%

$

22,020,144

$

165,586

2.98

%

$

128,368

(0.13

)%

Net interest income(1)

$

251,617

$

251,362

Net interest margin

3.24

%

3.20

%

0.04

%

Total funds(2)

$

30,039,001

$

155,825

2.10

%

$

29,829,470

$

165,586

2.20

%

$

209,531

(0.10

)%

Provision For Credit Losses

First Quarter of 2026 Compared to Fourth Quarter of 2025

The provision for credit losses was $9.8 million for the first quarter compared to $12.5 million for the fourth quarter.

The first quarter provision for loan losses and unfunded loan commitments was primarily driven by net charge off activity and changes in loan risk ratings including specific reserves, offset partially by lower balances in the held for investment ("HFI") portfolio and lower qualitative reserves.

The fourth quarter provision for loan losses and unfunded loan commitments was primarily driven by changes in loan risk ratings including specific reserves, and higher loan balances and unfunded commitments, offset partially by lower qualitative reserves.

Noninterest Income

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest income decreased by $6.2 million to $35.3 million for the first quarter from $41.6 million for the fourth quarter due mainly to a $7.9 million decrease in leased equipment income, offset partially by the increase of $1.5 million in commission and fees and $1.1 million in other income. The decrease in leased equipment income was due mainly to higher gains on early lease terminations in the fourth quarter.

Noninterest Expense

First Quarter of 2026 Compared to Fourth Quarter of 2025

Noninterest expense increased by $0.7 million to $181.4 million for the first quarter from $180.6 million for the fourth quarter due mainly to a $5.2 million increase in compensation expense, offset partially by the decrease of $2.5 million in other professional services and $1.1 million in customer related expense. The increase in compensation expense was mainly driven by seasonality, reflecting higher incentive compensation and annual reset of payroll related taxes and benefits in the first quarter. The decline in other professional services was driven by lower project spend, while customer related expenses decreased due to lower earnings credit rate payments following the federal funds rate cuts in the fourth quarter.

Income Taxes

First Quarter of 2026 Compared to Fourth Quarter of 2025

Income tax expense of $23.8 million was recorded for the first quarter resulting in an effective tax rate of 24.9% compared to income tax expense of $22.4 million and an effective tax rate of 22.4% for the fourth quarter.

BALANCE SHEET HIGHLIGHTS

March 31,

December 31,

March 31,

Increase (Decrease)

Selected Balance Sheet Items

2026

2025

2025

QoQ

YoY

(In thousands)

Cash and cash equivalents

$

2,217,269

$

2,307,965

$

2,343,889

$

(90,696

)

$

(126,620

)

Securities available-for-sale

2,656,332

2,454,058

2,334,058

202,274

322,274

Securities held-to-maturity

2,313,548

2,308,636

2,311,912

4,912

1,636

Loans held for sale

259,049

182,936

25,797

76,113

233,252

Loans and leases held for investment

24,780,347

25,032,679

24,126,527

(252,332

)

653,820

Total loans and leases

25,039,396

25,215,615

24,152,324

(176,219

)

887,072

Total assets

34,724,241

34,797,442

33,779,918

(73,201

)

944,323

Noninterest-bearing deposits

$

7,797,542

$

7,822,787

$

7,593,950

$

(25,245

)

$

203,592

Total deposits

27,322,134

27,843,357

27,193,191

(521,223

)

128,943

Borrowings

2,551,250

2,063,819

1,670,782

487,431

880,468

Total liabilities

31,170,915

31,256,165

30,258,262

(85,250

)

912,653

Total stockholders' equity

3,553,326

3,541,277

3,521,656

12,049

31,670

Securities

Securities available-for-sale ("AFS") increased by $202.3 million during the first quarter to $2.7 billion at March 31, 2026. The increase was primarily driven by $343.4 million of purchases, offset partially by $119.8 million of principal paydowns, $10.8 million of maturities, $9.2 million decrease in the fair value of AFS securities, and $1.3 million of net amortization. As of March 31, 2026, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $143.3 million, up from $136.6 million at December 31, 2025, driven by higher interest rates.

The balance of securities held-to-maturity ("HTM") increased by $4.9 million in the first quarter to $2.3 billion at March 31, 2026. As of March 31, 2026, HTM securities had aggregate unrealized net after-tax losses in AOCI of $127.2 million remaining from the balance established at the time of transfer from AFS.

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:

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

(Dollars in thousands)

Composition of Loans and Leases

Real estate mortgage:

Commercial

$

4,093,386

$

4,314,637

$

4,292,625

$

4,369,401

$

4,489,543

Multi-family

5,955,102

6,089,417

6,124,673

6,280,791

6,216,084

Other residential

3,458,410

3,346,733

3,162,564

3,157,616

2,787,031

Total real estate mortgage

13,506,898

13,750,787

13,579,862

13,807,808

13,492,658

Real estate construction and land:

Commercial

364,575

379,387

395,150

381,449

733,684

Residential

1,527,754

1,568,240

1,759,676

1,920,642

2,127,354

Total real estate construction and land

1,892,329

1,947,627

2,154,826

2,302,091

2,861,038

Total real estate

15,399,227

15,698,414

15,734,688

16,109,899

16,353,696

Commercial:

Asset-based

3,209,338

2,951,010

2,742,519

2,462,351

2,305,325

Venture capital

2,322,261

2,222,097

1,907,601

2,002,601

1,733,074

Other commercial

3,501,388

3,804,099

3,356,537

3,288,305

3,340,400

Total commercial

9,032,987

8,977,206

8,006,657

7,753,257

7,378,799

Consumer

348,133

357,059

369,297

382,737

394,032

Total loans and leases HFI

$

24,780,347

$

25,032,679

$

24,110,642

$

24,245,893

$

24,126,527

Total unfunded loan commitments

$

5,549,325

$

5,433,357

$

4,822,917

$

4,673,596

$

4,858,960

Composition as % of Total Loans and Leases

Real estate mortgage:

Commercial

17

%

17

%

18

%

18

%

19

%

Multi-family

24

%

24

%

25

%

26

%

26

%

Other residential

14

%

14

%

13

%

13

%

11

%

Total real estate mortgage

55

%

55

%

56

%

57

%

56

%

Real estate construction and land:

Commercial

2

%

2

%

2

%

1

%

3

%

Residential

6

%

6

%

7

%

8

%

9

%

Total real estate construction and land

8

%

8

%

9

%

9

%

12

%

Total real estate

63

%

63

%

65

%

66

%

68

%

Commercial:

Asset-based

13

%

12

%

11

%

10

%

9

%

Venture capital

9

%

9

%

8

%

8

%

7

%

Other commercial

14

%

15

%

14

%

14

%

14

%

Total commercial

36

%

36

%

33

%

32

%

30

%

Consumer

1

%

1

%

2

%

2

%

2

%

Total loans and leases HFI

100

%

100

%

100

%

100

%

100

%

Total loans and leases HFI decreased by $252.3 million in the first quarter and totaled $24.8 billion at March 31, 2026. The decrease in loans and leases HFI was due primarily to decreased balances in other commercial loans, commercial real estate mortgage loans, and multi-family real estate mortgage loans, offset partially by increases in asset-based loans, other residential real mortgage loans, and venture capital loans. Loan production and disbursements totaled $2.1 billion in the first quarter with a weighted average interest rate on production of 6.65%.

Total loans and leases held for sale ("HFS") increased by $76.1 million in the first quarter and totaled $259.0 million at March 31, 2026. The increase in loans HFS was primarily driven by a $72.1 million loan transfer during the first quarter that subsequently sold at par in April 2026.

Credit Quality

March 31,

December 31,

September 30,

June 30,

March 31,

Asset Quality Information and Ratios

2026

2025

2025

2025

2025

(Dollars in thousands)

Delinquent loans and leases held for investment:

30 to 89 days delinquent

$

263,530

$

108,303

$

56,416

$

53,900

$

100,664

90+ days delinquent

81,599

92,655

104,952

95,566

99,976

Total delinquent loans and leases

$

345,129

$

200,958

$

161,368

$

149,466

$

200,640

Total delinquent loans and leases to loans and leases HFI

1.39

%

0.80

%

0.67

%

0.62

%

0.83

%

Nonperforming assets, excluding loans held for sale:

Nonaccrual loans and leases

$

185,734

$

159,168

$

174,541

$

167,516

$

213,480

90+ days delinquent loans and still accruing

—

—

—

—

—

Total nonperforming loans and leases ("NPLs")

185,734

159,168

174,541

167,516

213,480

Foreclosed assets, net

18,055

17,115

4,790

7,806

5,474

Total nonperforming assets ("NPAs")

$

203,789

$

176,283

$

179,331

$

175,322

$

218,954

Classified loans and leases HFI

$

842,834

$

800,330

$

763,582

$

656,556

$

764,723

Special mention loans and leases HFI

688,659

458,683

505,979

661,568

937,014

Criticized loans and leases HFI

$

1,531,493

$

1,259,013

$

1,269,561

$

1,318,124

$

1,701,737

Allowance for loan and lease losses

$

241,600

$

245,612

$

240,501

$

229,344

$

234,986

Allowance for loan and lease losses to NPLs

130.08

%

154.31

%

137.79

%

136.91

%

110.07

%

NPLs to loans and leases HFI

0.75

%

0.64

%

0.72

%

0.69

%

0.88

%

NPAs to total assets

0.59

%

0.51

%

0.53

%

0.51

%

0.65

%

Classified loans and leases to loans and leases HFI

3.40

%

3.20

%

3.17

%

2.71

%

3.17

%

Special mention loans and leases to loans and leases HFI

2.78

%

1.83

%

2.10

%

2.73

%

3.88

%

Asset quality metrics primarily reflect migration in a limited number of loans within a few larger relationships during the quarter. These were largely isolated situations, reflect proactive risk management actions, and the credits are supported by strong collateral and defined resolution paths.

At March 31, 2026, total delinquent loans and leases were $345.1 million, compared to $201.0 million at December 31, 2025. The 30 to 89 days delinquent category increased by $114.1 million in residential real estate construction and land loans, $32.9 million in commercial real estate construction and land loans, and $7.0 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $5.4 million in commercial real estate mortgage loans and $5.3 million in other residential real estate mortgage loans.

At March 31, 2026, nonperforming loans and leases were $185.7 million, compared to $159.2 million at December 31, 2025. During the first quarter, nonperforming loans and leases increased by $26.6 million due to additions of $54.6 million, offset partially by payoffs and paydowns of $20.0 million, charge-offs of $5.2 million, and transfers to accrual status of $2.8 million.

At March 31, 2026, nonperforming assets were $203.8 million, or 0.59% of total assets, compared to $176.3 million, or 0.51% of total assets, as of December 31, 2025. At March 31, 2026, nonperforming assets included $18.1 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

Three Months Ended

March 31,

December 31,

March 31,

Allowance for Credit Losses - Loans

2026

2025

2025

(Dollars in thousands)

Allowance for loan and lease losses ("ALLL"):

Balance at beginning of period

$

245,612

$

240,501

$

239,360

Charge-offs

(16,097

)

(5,541

)

(16,551

)

Recoveries

2,285

2,852

2,477

Net charge-offs

(13,812

)

(2,689

)

(14,074

)

Provision for loan losses

9,800

7,800

9,700

Balance at end of period

$

241,600

$

245,612

$

234,986

Reserve for unfunded loan commitments ("RUC"):

Balance at beginning of period

$

34,921

$

30,221

$

29,071

Provision for credit losses

—

4,700

500

Balance at end of period

$

34,921

$

34,921

$

29,571

Allowance for credit losses ("ACL") - Loans:

Balance at beginning of period

$

280,533

$

270,722

$

268,431

Charge-offs

(16,097

)

(5,541

)

(16,551

)

Recoveries

2,285

2,852

2,477

Net charge-offs

(13,812

)

(2,689

)

(14,074

)

Provision for credit losses

9,800

12,500

10,200

Balance at end of period

$

276,521

$

280,533

$

264,557

ALLL to loans and leases HFI

0.97

%

0.98

%

0.97

%

ACL to loans and leases HFI

1.12

%

1.12

%

1.10

%

ACL to NPLs

148.88

%

176.25

%

123.93

%

ACL to NPAs

135.69

%

159.14

%

120.83

%

Annualized net charge-offs to average loans and leases

0.23

%

0.04

%

0.24

%

The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $276.5 million, or 1.12% of total loans and leases at March 31, 2026, compared to $280.5 million, or 1.12% of total loans and leases at December 31, 2025. The $4.0 million decrease in the allowance was driven by net charge-offs of $13.8 million, offset partially by the provision of $9.8 million.

Our ability to absorb credit losses is also bolstered by (i) $105.0 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.1 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $14.3 million on approximately $1.2 billion of purchased loans without credit deterioration. 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 1.60% of total loans and leases at March 31, 2026 compared to 1.62% at December 31, 2025.

The ACL coverage of nonperforming loans and leases was 149% at March 31, 2026 compared to 176% at December 31, 2025.

Net charge-offs were 0.23% of average loans and leases (annualized) for the first quarter, compared to net charge-offs of 0.04% for the fourth quarter.

Deposits and Client Investment Funds

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

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

(Dollars in thousands)

Composition of Deposits

Noninterest-bearing checking

$

7,797,542

$

7,822,787

$

7,603,748

$

7,441,116

$

7,593,950

Interest-bearing:

Checking

8,178,485

8,509,587

7,930,951

7,974,452

7,747,051

Money market

4,643,349

4,917,857

4,974,177

5,375,080

5,367,788

Savings

1,991,010

1,905,863

1,949,369

1,932,906

1,999,062

Time deposits:

Non-brokered

2,149,564

2,254,293

2,468,017

2,492,890

2,490,639

Brokered

2,562,184

2,432,970

2,258,503

2,311,989

1,994,701

Total time deposits

4,711,748

4,687,263

4,726,520

4,804,879

4,485,340

Total interest-bearing

19,524,592

20,020,570

19,581,017

20,087,317

19,599,241

Total deposits

$

27,322,134

$

27,843,357

$

27,184,765

$

27,528,433

$

27,193,191

Composition as % of

Total Deposits

Noninterest-bearing checking

29

%

28

%

28

%

27

%

28

%

Interest-bearing:

Checking

30

%

30

%

29

%

29

%

29

%

Money market

17

%

18

%

19

%

20

%

20

%

Savings

7

%

7

%

7

%

7

%

7

%

Time deposits:

Non-brokered

8

%

8

%

9

%

9

%

9

%

Brokered

9

%

9

%

8

%

8

%

7

%

Total time deposits

17

%

17

%

17

%

17

%

16

%

Total interest-bearing

71

%

72

%

72

%

73

%

72

%

Total deposits

100

%

100

%

100

%

100

%

100

%

Total deposits decreased by $521.2 million to $27.3 billion at March 31, 2026 from $27.8 billion at December 31, 2025, driven by a decrease in interest-bearing deposits of $496.0 million and a decrease in noninterest-bearing deposits of $25.2 million. Interest-bearing deposits decreased due mainly to lower balances in checking accounts of $331.1 million and lower money market accounts of $274.5 million, offset partially by higher savings accounts of $85.1 million and higher brokered and non-brokered time deposits of $24.5 million.

At March 31, 2026, noninterest-bearing checking deposits totaled $7.8 billion, or 29% of total deposits, compared to $7.8 billion, or 28% of total deposits, at December 31, 2025.

At March 31, 2026, uninsured and uncollateralized deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.7 billion, or 28% of total deposits, at December 31, 2025.

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 $1.2 billion as of March 31, 2026 and December 31, 2025.

Borrowings

Borrowings increased by $487.4 million to $2.6 billion at March 31, 2026 from $2.1 billion at December 31, 2025, mainly due to higher overnight and short-term borrowings.

Equity

During the first quarter, total stockholders’ equity increased by $12.0 million to $3.6 billion and tangible common equity(1) increased by $18.2 million to $2.7 billion at March 31, 2026. The increase in total stockholders’ equity for the first quarter resulted primarily from net earnings of $72.0 million, offset partially by the repurchase of common stock of $31.9 million and common and preferred stock dividends of $29.1 million.

At March 31, 2026, book value per common share increased to $19.80 compared to $19.56 at December 31, 2025, and tangible book value per common share(1) increased to $17.77 compared to $17.51 at December 31, 2025.

For the three-month period ended March 31, 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 March 31, 2026, $82.6 million remained available under the current stock repurchase authorization, which expires in March 2027.

CAPITAL AND LIQUIDITY

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

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

Capital Ratios(1)

Banc of California, Inc.

Total risk-based capital ratio

16.55

%

16.31

%

16.69

%

16.37

%

16.93

%

Tier 1 risk-based capital ratio

12.54

%

12.34

%

12.56

%

12.34

%

12.86

%

Common equity tier 1 capital ratio

10.18

%

10.01

%

10.14

%

9.95

%

10.45

%

Tier 1 leverage ratio

9.97

%

9.99

%

9.77

%

9.74

%

10.19

%

Banc of California

Total risk-based capital ratio

15.97

%

15.61

%

15.94

%

15.65

%

16.22

%

Tier 1 risk-based capital ratio

13.50

%

13.15

%

13.42

%

13.21

%

13.74

%

Common equity tier 1 capital ratio

13.50

%

13.15

%

13.42

%

13.21

%

13.74

%

Tier 1 leverage ratio

10.73

%

10.65

%

10.44

%

10.42

%

10.88

%

At March 31, 2026, cash and cash equivalents totaled $2.2 billion, down $90.7 million from December 31, 2025.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.0 billion. Combined with total available borrowing capacity of $9.7 billion and unpledged AFS securities of $2.5 billion, total available liquidity was $14.2 billion at the end of the first quarter.

Conference Call

The Company will host a conference call to discuss its first quarter 2026 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, April 23, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 5670833. 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 7930561.

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. 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 79 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, 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.

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, 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; (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, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (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, military activity (including the ongoing Iran war) or acts of 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) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; 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, 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, efficiency ratio, 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.

BANC OF CALIFORNIA, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

2025

2025

2025

ASSETS:

(Dollars in thousands)

Cash and due from banks

$

214,120

$

181,103

$

205,364

$

222,210

$

215,591

Interest-earning deposits in financial institutions

2,003,149

2,126,862

2,192,901

2,131,342

2,128,298

Total cash and cash equivalents

2,217,269

2,307,965

2,398,265

2,353,552

2,343,889

Securities available-for-sale

2,656,332

2,454,058

2,426,734

2,246,174

2,334,058

Securities held-to-maturity

2,313,548

2,308,636

2,303,657

2,316,725

2,311,912

FRB and FHLB stock

170,342

160,442

159,337

162,243

155,330

Total investment securities

5,140,222

4,923,136

4,889,728

4,725,142

4,801,300

Loans held for sale

259,049

182,936

211,454

465,571

25,797

Loans and leases held for investment

24,780,347

25,032,679

24,110,642

24,245,893

24,126,527

Allowance for loan and lease losses

(241,600

)

(245,612

)

(240,501

)

(229,344

)

(234,986

)

Total loans and leases held for investment, net

24,538,747

24,787,067

23,870,141

24,016,549

23,891,541

Equipment leased to others under operating leases

223,558

238,232

280,872

288,692

295,032

Premises and equipment, net

146,316

146,698

132,766

138,032

140,347

Bank owned life insurance

352,707

350,083

348,051

346,142

342,810

Goodwill

214,521

214,521

214,521

214,521

214,521

Intangible assets, net

99,091

105,287

111,923

118,930

125,937

Deferred tax asset, net

653,481

656,755

672,159

691,535

702,323

Other assets

879,280

884,762

883,085

891,787

896,421

Total assets

$

34,724,241

$

34,797,442

$

34,012,965

$

34,250,453

$

33,779,918

LIABILITIES:

Noninterest-bearing deposits

$

7,797,542

$

7,822,787

$

7,603,748

$

7,441,116

$

7,593,950

Interest-bearing deposits

19,524,592

20,020,570

19,581,017

20,087,317

19,599,241

Total deposits

27,322,134

27,843,357

27,184,765

27,528,433

27,193,191

Borrowings

2,551,250

2,063,819

2,005,022

1,917,180

1,670,782

Subordinated debt

954,072

952,740

950,888

949,213

944,908

Accrued interest payable and other liabilities

343,459

396,249

405,551

428,784

449,381

Total liabilities

31,170,915

31,256,165

30,546,226

30,823,610

30,258,262

STOCKHOLDERS' EQUITY:

Preferred stock

498,516

498,516

498,516

498,516

498,516

Common stock

1,538

1,500

1,509

1,474

1,561

Class B non-voting common stock

5

5

5

5

5

Non-voting common stock equivalents

—

50

41

98

98

Additional paid-in-capital

3,501,213

3,552,483

3,563,145

3,609,109

3,732,376

Retained deficit

(180,011

)

(242,016

)

(309,460

)

(369,142

)

(387,580

)

Accumulated other comprehensive loss, net

(267,935

)

(269,261

)

(287,017

)

(313,217

)

(323,320

)

Total stockholders’ equity

3,553,326

3,541,277

3,466,739

3,426,843

3,521,656

Total liabilities and stockholders’ equity

$

34,724,241

$

34,797,442

$

34,012,965

$

34,250,453

$

33,779,918

Common shares outstanding (1)

154,262,045

155,533,403

155,522,693

157,647,137

166,403,086

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

2026

2025

2025

(In thousands, except per share amounts)

Interest income:

Loans and leases

$

349,943

$

359,268

$

346,103

Investment securities

41,873

39,557

37,862

Deposits in financial institutions

15,626

18,123

22,690

Total interest income

407,442

416,948

406,655

Interest expense:

Deposits

120,233

129,896

140,530

Borrowings

20,177

19,858

18,421

Subordinated debt

15,415

15,832

15,340

Total interest expense

155,825

165,586

174,291

Net interest income

251,617

251,362

232,364

Provision for credit losses

9,800

12,500

9,300

Net interest income after provision for credit losses

241,817

238,862

223,064

Noninterest income:

Service charges on deposit accounts

4,978

5,038

4,543

Commissions and fees

10,980

9,524

9,958

Leased equipment income

8,530

16,381

10,784

Gain on sale of loans and leases

7

18

211

Dividends and gains on equity investments

2,002

3,492

2,323

Warrant income (loss)

938

361

(295

)

LOCOM HFS adjustment

3

—

—

Other income

7,890

6,757

6,126

Total noninterest income

35,328

41,571

33,650

Noninterest expense:

Compensation

91,100

85,862

86,417

Occupancy

14,892

14,726

15,010

Information technology and data processing

14,339

13,751

15,099

Other professional services

4,236

6,774

4,513

Insurance and assessments

6,764

7,070

7,283

Intangible asset amortization

6,348

6,788

7,160

Leased equipment depreciation

5,304

6,202

6,741

Customer related expense

23,737

24,870

27,751

Loan expense

4,292

4,445

2,930

Other expense

10,379

10,156

10,749

Total noninterest expense

181,391

180,644

183,653

Earnings before income taxes

95,754

99,789

73,061

Income tax expense

23,802

22,398

19,493

Net earnings

71,952

77,391

53,568

Preferred stock dividends

9,947

9,947

9,947

Net earnings available to common and equivalent stockholders

$

62,005

$

67,444

$

43,621

Earnings per common share:

Basic

$

0.40

$

0.43

$

0.26

Diluted

$

0.39

$

0.42

$

0.26

Weighted average number of common shares outstanding: (1)

Basic

154,821

155,449

168,495

Diluted

160,832

160,094

169,434

BANC OF CALIFORNIA, INC.

SELECTED FINANCIAL DATA

(UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

Profitability and Other Ratios

2026

2025

2025

Return on average assets (1)

0.86

%

0.91

%

0.65

%

Return on average equity (1)

8.22

%

8.79

%

6.16

%

Return on average tangible common equity (1)(2)

9.91

%

10.75

%

7.56

%

Dividend payout ratio (3)

30.00

%

23.26

%

38.46

%

Average yield on loans and leases (1)

5.74

%

5.83

%

5.90

%

Average yield on interest-earning assets (1)

5.25

%

5.31

%

5.39

%

Average cost of interest-bearing deposits (1)

2.51

%

2.66

%

2.97

%

Average total cost of deposits (1)

1.78

%

1.89

%

2.12

%

Average cost of interest-bearing liabilities (1)

2.85

%

2.98

%

3.28

%

Average total cost of funds (1)

2.10

%

2.20

%

2.42

%

Net interest spread

2.40

%

2.33

%

2.11

%

Net interest margin (1)

3.24

%

3.20

%

3.08

%

Noninterest income to total revenue (4)

12.31

%

14.19

%

12.65

%

Noninterest expense to average total assets (1)

2.16

%

2.12

%

2.24

%

Noninterest expense to total revenue (4)

63.21

%

61.67

%

69.04

%

Efficiency ratio (2)(5)

61.00

%

59.35

%

66.35

%

Loans to deposits ratio

91.65

%

90.56

%

88.82

%

Average loans and leases to average deposits

90.45

%

89.81

%

88.36

%

Average investment securities to average total assets

14.76

%

14.49

%

14.21

%

Average stockholders' equity to average total assets

10.44

%

10.35

%

10.58

%

____________________ (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.

(5)

Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue.

BANC OF CALIFORNIA, INC.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

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)

$

24,710,609

$

349,943

5.74

%

$

24,443,089

$

359,268

5.83

%

$

23,788,647

$

346,103

5.90

%

Investment securities

5,018,002

41,873

3.38

%

4,891,281

39,557

3.21

%

4,734,037

37,862

3.24

%

Deposits in financial institutions

1,742,657

15,626

3.64

%

1,834,773

18,123

3.92

%

2,088,139

22,690

4.41

%

Total interest-earning assets

31,471,268

407,442

5.25

%

31,169,143

416,948

5.31

%

30,610,823

406,655

5.39

%

Other assets

2,531,433

2,583,357

2,697,562

Total assets

$

34,002,701

$

33,752,500

$

33,308,385

Liabilities and Stockholders' Equity:

Interest checking

$

8,175,172

46,882

2.33

%

$

7,944,858

49,319

2.46

%

$

7,343,451

47,879

2.64

%

Money market

4,785,691

22,826

1.93

%

4,948,960

25,810

2.07

%

5,415,716

33,003

2.47

%

Savings

1,957,831

9,772

2.02

%

1,942,678

10,863

2.22

%

1,948,649

12,857

2.68

%

Time

4,510,418

40,753

3.66

%

4,570,369

43,904

3.81

%

4,498,268

46,791

4.22

%

Total interest-bearing deposits

19,429,112

120,233

2.51

%

19,406,865

129,896

2.66

%

19,206,084

140,530

2.97

%

Borrowings

1,765,661

20,177

4.63

%

1,661,808

19,858

4.74

%

1,397,720

18,421

5.34

%

Subordinated debt

953,739

15,415

6.55

%

951,471

15,832

6.60

%

942,817

15,340

6.60

%

Total interest-bearing liabilities

22,148,512

155,825

2.85

%

22,020,144

165,586

2.98

%

21,546,621

174,291

3.28

%

Noninterest-bearing demand deposits

7,890,489

7,809,326

7,714,830

Other liabilities

415,000

428,873

522,753

Total liabilities

30,454,001

30,258,343

29,784,204

Stockholders' equity

3,548,700

3,494,157

3,524,181

Total liabilities and stockholders' equity

$

34,002,701

$

33,752,500

$

33,308,385

Net interest income (1)

$

251,617

$

251,362

$

232,364

Net interest spread

2.40

%

2.33

%

2.11

%

Net interest margin

3.24

%

3.20

%

3.08

%

Total deposits (2)

$

27,319,601

$

120,233

1.78

%

$

27,216,191

$

129,896

1.89

%

$

26,920,914

$

140,530

2.12

%

Total funds (3)

$

30,039,001

$

155,825

2.10

%

$

29,829,470

$

165,586

2.20

%

$

29,261,451

$

174,291

2.42

%

____________________ (1)

Includes net loan discount accretion of $12.2 million, $12.7 million, and $16.0 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 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.

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, efficiency ratio, and economic coverage ratio. These non-GAAP measures are used by management in its analysis of the Company's performance.

Tangible common equity is calculated by subtracting preferred stock, as applicable, from total common 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 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).

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 HFI.

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.

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Tangible Common Equity

March 31,

December 31,

September 30,

June 30,

March 31,

and Tangible Book Value Per Share

2026

2025

2025

2025

2025

(Dollars in thousands, except per share amounts)

Stockholders' equity

$

3,553,326

$

3,541,277

$

3,466,739

$

3,426,843

$

3,521,656

Less: Preferred stock

498,516

498,516

498,516

498,516

498,516

Total common equity

3,054,810

3,042,761

2,968,223

2,928,327

3,023,140

Less: Goodwill and intangible assets

313,612

319,808

326,444

333,451

340,458

Tangible common equity

$

2,741,198

$

2,722,953

$

2,641,779

$

2,594,876

$

2,682,682

Book value per common share (1)

$

19.80

$

19.56

$

19.09

$

18.58

$

18.17

Tangible book value per common share (2)

$

17.77

$

17.51

$

16.99

$

16.46

$

16.12

Common shares outstanding (3)

154,262,045

155,533,403

155,522,693

157,647,137

166,403,086

____________________ (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 March 31, 2026.

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

  Three Months Ended

Return on Average Tangible

March 31,

December 31,

March 31,

Common Equity ("ROATCE")

2026

2025

2025

(Dollars in thousands)

Net earnings

$

71,952

$

77,391

$

53,568

Earnings before income taxes

$

73,061

Add: Intangible asset amortization

7,160

Adjusted earnings before income taxes for ROATCE

80,221

Adjusted income tax expense (1)

20,296

Adjustments:

Intangible asset amortization

6,348

6,788

Tax impact of adjustment above (1)

(1,596

)

(1,823

)

Adjustment to net earnings

4,752

4,965

Adjusted net earnings for ROATCE

76,704

82,356

59,925

Less: Preferred stock dividends

9,947

9,947

9,947

Adjusted net earnings available to common and equivalent stockholders for ROATCE

$

66,757

$

72,409

$

49,978

Average stockholders' equity

$

3,548,700

$

3,494,157

$

3,524,181

Less: Average goodwill and intangible assets

317,215

323,295

344,610

Less: Average preferred stock

498,516

498,516

498,516

Average tangible common equity

$

2,732,969

$

2,672,346

$

2,681,055

Return on average equity (2)

8.22

%

8.79

%

6.16

%

ROATCE (3)

9.91

%

10.75

%

7.56

%

____________________ (1)

Effective tax rates of 25.14%, 26.86%, and 25.30% used for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(2)

Annualized net earnings divided by average stockholders' equity.

(3)

Annualized adjusted net earnings available to common and equivalent stockholders for ROATCE divided by average tangible common equity.

Three Months Ended

March 31,

December 31,

March 31,

Pre-Tax Pre-Provision Income

2026

2025

2025

(Dollars in thousands)

Net interest income (GAAP)

$

251,617

$

251,362

$

232,364

Add: Noninterest income (GAAP)

35,328

41,571

33,650

Total revenues (GAAP)

286,945

292,933

266,014

Less: Noninterest expense (GAAP)

181,391

180,644

183,653

Pre-tax pre-provision income (Non-GAAP)

$

105,554

$

112,289

$

82,361

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

  Three Months Ended

March 31,

December 31,

March 31,

Efficiency Ratio

2026

2025

2025

(Dollars in thousands)

Noninterest expense

$

181,391

$

180,644

$

183,653

Less: Intangible asset amortization

(6,348

)

(6,788

)

(7,160

)

Noninterest expense used for efficiency ratio

$

175,043

$

173,856

$

176,493

Net interest income

$

251,617

$

251,362

$

232,364

Noninterest income

35,328

41,571

33,650

Total revenue used for efficiency ratio

$

286,945

$

292,933

$

266,014

  Noninterest expense to total revenue

63.21

%

61.67

%

69.04

%

Efficiency ratio (1)

61.00

%

59.35

%

66.35

%

March 31,

December 31,

Economic Coverage Ratio

2026

2025

(Dollars in thousands)

Allowance for credit losses ("ACL")

$

276,521

$

280,533

Add: Unearned credit mark from purchase accounting (1)

14,315

15,865

Add: Credit-linked notes (2)

104,988

108,413

Adjusted allowance for credit losses

$

395,824

$

404,811

Loans and leases HFI

$

24,780,347

$

25,032,679

ACL to loans and leases HFI (3)

1.12

%

1.12

%

Economic coverage ratio (4)

1.60

%

1.62

%

____________________ (1)

Unearned credit mark from purchase accounting estimated by using the same pro rata split between the credit and yield marks associated with non-PCD loans (purchased loans without credit deterioration at the time of purchase).

(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 HFI.

(4)

Adjusted allowance for credit losses divided by loans and leases HFI.

More News From Banc of California, Inc.

For the quarter ended March 2026, Banc of California (BANC - Free Report) reported revenue of $286.95 million, up 7.9% over the same period last year. EPS came in at $0.39, compared to $0.26 in the year-ago quarter.

The reported revenue represents a surprise of -1.28% over the Zacks Consensus Estimate of $290.66 million. With the consensus EPS estimate being $0.38, the EPS surprise was +2.63%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Banc of California performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Interest Margin: 3.2% compared to the 3.2% average estimate based on four analysts.Efficiency Ratio: 61% versus 62.7% estimated by four analysts on average.Total Nonperforming assets: $203.79 million versus the three-analyst average estimate of $172.75 million.Total Nonperforming loans: $185.73 million compared to the $157.58 million average estimate based on three analysts.Average Balance - Total interest-earning assets: $31.47 billion versus the three-analyst average estimate of $32.06 billion.Annualized net loan charge-offs (recoveries) to average total loans held-for-investment: 0.2% versus the three-analyst average estimate of 0.2%.Net Interest Income: $251.62 million compared to the $255.51 million average estimate based on four analysts.Total NonInterest Income: $35.33 million compared to the $35.25 million average estimate based on four analysts.Leased equipment income: $8.53 million versus $10.38 million estimated by two analysts on average.Service charges on deposit accounts: $4.98 million versus $5.05 million estimated by two analysts on average.Other commissions and fees: $10.98 million versus the two-analyst average estimate of $9.62 million.View all Key Company Metrics for Banc of California here>>>

Shares of Banc of California have returned +6.9% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Banc of California (BANC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of -2.8% since the start of the year. The banking service and lending company is paying out a dividend of $0.12 per share at the moment, with a dividend yield of 2.56% compared to the Banks - Southwest industry's yield of 1.68% and the S&P 500's yield of 1.39%.

Looking at dividend growth, the company's current annualized dividend of $0.48 is up 20% from last year. Over the last 5 years, Banc of California has increased its dividend 1 times on a year-over-year basis for an average annual increase of 16.61%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Banc of California's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.

BANC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $1.74 per share, which represents a year-over-year growth rate of 28.89%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BANC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

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LOS ANGELES--(BUSINESS WIRE)--Banc of California, Inc. (the “Company”) (NYSE: BANC) announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share on its outstanding common stock. The dividend will be payable July 1, 2026, to stockholders of record as of June 15, 2026.

The Board of Directors also declared a quarterly cash dividend of $0.4845 per depositary share on its 7.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series F. The dividend will be payable June 1, 2026, to stockholders of record as of May 21, 2026. The Series F depositary shares are traded on the New York Stock Exchange under the “Banc/PF” symbol.

The Company maintains a Dividend Reinvestment Plan (DRIP) which allows common stockholders to automatically acquire common shares at a 3% discount from the applicable market price. All registered common stockholders with holdings maintained at the Company’s transfer agent, Computershare, are eligible to participate in the DRIP program. For more information on the Company’s DRIP program, please contact Investor Relations at [email protected] or (855) 361-2262.

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. 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 79 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 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.

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Banc of California Series F Preferred shares offer an attractive 8.6% total return if called in September 2027. BANC's strong liquidity, solid net interest income, and manageable credit risk support continued preferred dividend payments. Redeeming BANC.PR.F in 2027 would boost common EPS by over $0.05, making the call highly likely given expensive reset terms.