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Banc of California Inc

Banc of California, Inc. Reports Fourth Quarter Diluted Earnings per Share of $0.42, Up 11% Quarter over Quarter; Full Year Diluted Earnings per Share of $1.17, Significant Growth Year over Year

LOS ANGELES--(BUSINESS WIRE)--Jan. 21, 2026-- Banc of California, Inc. (NYSE: BANC):

Quarter Highlights

$0.42

Earnings Per Share

 

$19.56

Book Value Per Share

 

$17.51

Tangible Book Value

P er Share(1)

 

15%

Loan Annualized Growth

 

 

11%

Noninterest-bearing Deposits

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 fourth quarter and year ended December 31, 2025. The Company reported net earnings available to common and equivalent stockholders of $67.4 million, or $0.42 per diluted common share, for the fourth quarter of 2025, compared to $59.7 million, or $0.38 per diluted common share for the third quarter of 2025. For the full year 2025, net earnings available to common and equivalent stockholders of $189.2 million, or $1.17 per diluted common share, compared to $87.1 million, or $0.52 per diluted common share for the full year 2024. On an adjusted basis, net earnings available to common and equivalent stockholders of $218.2 million, or $1.35 per diluted common share, compared to $135.4 million, or $0.80 per diluted common share for the full year 2024.(1)

Fourth Quarter and Full Year 2025 Financial Highlights:

  • Total loans and leases of $25.2 billion increased by 15% for the quarter annualized and 6% year over year.
  • Fourth quarter loan production and disbursements totaled $2.7 billion with a weighted average interest rate on production of 6.83%, and heavily concentrated toward the end of the quarter. Full year loan production and disbursements of $9.6 billion, up 31% year over year.
  • Noninterest-bearing deposits of $7.8 billion increased by 11% annualized from 3Q25, representing 28% of total deposits.
  • Net interest margin of 3.20% for the quarter, and 3.15% for the year reflecting a 30 basis point expansion year over year, driven by improved funding mix and lower deposit costs. Late fourth quarter loan production will have a full quarter benefit to net interest income in 1Q26.
  • Total revenue of $292.9 million increased over 2% and pre-tax pre-provision income(1) of $112.3 million increased 10% from 3Q25 reflecting improved operating leverage.
  • Noninterest expenses of $180.6 million decreased by $5.0 millionfrom 3Q25 contributing to an efficiency ratio(1) decrease to 59.35% from 62.05% in 3Q25.
  • Credit quality metrics stable with quarter-over-quarter reductions in nonperforming, criticized, and special mention loans and leases, as a percentage of total loans and leases held for investment, of 8 basis points, 24 basis points, and 27 basis points, respectively. On a year-over-year basis, there were reductions in nonperforming, criticized, and special mention loans and leases, as a percentage of total loans and leases held for investment, of 16 basis points, 195 basis points, and 278 basis points, respectively.
  • Stable capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.34% Tier 1 capital ratio and 10.01% CET 1 capital ratio and continued growth in book value per share to $19.56, up 2% vs 3Q25, and tangible book value per share(1) to $17.51, up 3% vs 3Q25.

(1)

 

Non-GAAP measure; refer to section 'Non-GAAP Measures'

(2)

 

Capital ratios for December 31, 2025 are preliminary

Jared Wolff, Chairman & CEO of Banc of California, commented, “Our fourth quarter results capped a year of strong execution, reflect the continued momentum of our core earnings engine, and validate our ongoing business strategy. During the quarter we delivered double-digit annualized loan and noninterest-bearing deposit growth, and achieved double-digit return on average tangible common equity, all while maintaining disciplined expense management and stable credit quality. These results underscore the strength of our franchise and our ability to consistently deliver profitable growth.”

Mr. Wolff continued, “Throughout 2025, we made significant progress scaling our franchise, strengthening our balance sheet, and improving our core profitability drivers. We grew operating leverage, improved credit metrics, and delivered a meaningful increase in tangible book value per share while opportunistically returning capital to shareholders. As we look ahead into 2026, we believe we are well positioned to continue building on this momentum. Our fourth quarter loan growth came later in the quarter, which should provide a tailwind for the first quarter 2026. With our strong market position, talented teams, and continued execution, we expect 2026 to be another strong year for Banc of California.”

INCOME STATEMENT HIGHLIGHTS

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

Summary Income Statement

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(In thousands)

Total interest income

$

416,948

 

$

432,541

 

 

$

424,519

 

 

$

1,676,653

 

 

$

1,812,705

 

Total interest expense

 

165,586

 

 

 

179,097

 

 

 

189,234

 

 

 

699,267

 

 

 

886,655

 

Net interest income

 

251,362

 

 

 

253,444

 

 

 

235,285

 

 

 

977,386

 

 

 

926,050

 

Provision for credit losses

 

12,500

 

 

 

9,700

 

 

 

12,801

 

 

 

70,600

 

 

 

42,801

 

Gain (loss) on sale of loans

 

18

 

 

 

(374

)

 

 

20

 

 

 

(115

)

 

 

645

 

Loss on sale of securities

 

—

 

 

 

—

 

 

 

(454

)

 

 

—

 

 

 

(60,400

)

Other noninterest income

 

41,553

 

 

 

34,659

 

 

 

29,423

 

 

 

142,254

 

 

 

136,900

 

Total noninterest income

 

41,571

 

 

 

34,285

 

 

 

28,989

 

 

 

142,139

 

 

 

77,145

 

Total revenue

 

292,933

 

 

 

287,729

 

 

 

264,274

 

 

 

1,119,525

 

 

 

1,003,195

 

Acquisition, integration and reorganization costs

 

—

 

 

 

—

 

 

 

(1,023

)

 

 

—

 

 

 

(14,183

)

Other noninterest expense

 

180,644

 

 

 

185,684

 

 

 

182,393

 

 

 

735,850

 

 

 

805,923

 

Total noninterest expense

 

180,644

 

 

 

185,684

 

 

 

181,370

 

 

 

735,850

 

 

 

791,740

 

Earnings before income taxes

 

99,789

 

 

 

92,345

 

 

 

70,103

 

 

 

313,075

 

 

 

168,654

 

Income tax expense

 

22,398

 

 

 

22,716

 

 

 

13,184

 

 

 

84,102

 

 

 

41,766

 

Net earnings

 

77,391

 

 

 

69,629

 

 

 

56,919

 

 

 

228,973

 

 

 

126,888

 

Preferred stock dividends

 

9,947

 

 

 

9,947

 

 

 

9,947

 

 

 

39,788

 

 

 

39,788

 

Net earnings available to common and equivalent stockholders

$

67,444

 

 

$

59,682

 

 

$

46,972

 

 

$

189,185

 

 

$

87,100

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.42

 

 

$

0.38

 

 

$

0.28

 

 

$

1.17

 

 

$

0.52

 

Net Interest Income and Margin

Fourth Quarter of 2025 Compared to Third Quarter of 2025

Net interest income decreased by $2.1 million to $251.4 million for the fourth quarter from $253.4 million for the third quarter, attributable primarily to the following:

  • A decrease of $13.5 million in interest income from loans due primarily to a lower average yield attributable to federal funds rate cuts of 25 basis points in September 2025 and 50 basis points in the fourth quarter and to lower net loan discount accretion.
  • A decrease of $3.4 million in interest income from deposits in financial institutions driven mainly by lower interest rates and lower average balances.

This was offset partially by:

  • A decrease of $13.2 million in interest expense on deposits due primarily to lower interest rates attributable to the federal funds rate cuts described above.

The net interest margin was 3.20% for the fourth quarter, down 2 basis points from 3.22% for the third quarter primarily driven by a lower average yield on interest-earning assets, offset partially by a lower average total cost of funds. The average yield on interest-earning assets decreased to 5.31% from 5.50%, as a result of a 22 basis point decrease in the average yield on loans and leases to 5.83%. The average total cost of funds decreased to 2.20% from 2.37%, as a result of a 19 basis point decrease in the average total cost of deposits to 1.89%, and a 2 basis points decrease in the average cost of borrowings to 4.74%.

Average total deposits decreased by $75.9 million, with a $202.0 million decrease in average interest-bearing deposits, offset partially by a $126.2 million increase in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.7% of average total deposits in the fourth quarter, up from 28.2% in the third quarter.

 

Three Months Ended

Increase (Decrease)

 

December 31, 2025

 

September 30, 2025

 

QoQ

Summary

 

Interest

Average

 

 

Interest

Average

 

 

Average

Average Balance

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Average

Yield/

and Yield/Cost Data

Balance

Expense

Cost

 

Balance

Expense

Cost

 

Balance

Cost

 

(Dollars in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

Loans and leases(1)

$

24,443,089

$

359,268

5.83

%

 

$

24,458,255

$

372,723

6.05

%

 

$

(15,166

)

(0.22

)%

Investment securities

 

4,891,281

 

 

39,557

 

3.21

%

 

 

4,782,070

 

 

38,291

 

3.18

%

 

 

109,211

 

0.03

%

Deposits in financial institutions

 

1,834,773

 

 

18,123

 

3.92

%

 

 

1,958,011

 

 

21,527

 

4.36

%

 

 

(123,238

)

(0.44

)%

Total interest-earning assets

$

31,169,143

 

$

416,948

 

5.31

%

 

$

31,198,336

 

$

432,541

 

5.50

%

 

$

(29,193

)

(0.19

)%

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

7,809,326

 

 

 

 

$

7,683,136

 

 

 

 

$

126,190

 

 

Total interest-bearing deposits

 

19,406,865

 

$

129,896

 

2.66

%

 

 

19,608,906

 

$

143,074

 

2.89

%

 

 

(202,041

)

(0.23

)%

Total deposits

$

27,216,191

 

 

129,896

 

1.89

%

 

$

27,292,042

 

 

143,074

 

2.08

%

 

$

(75,851

)

(0.19

)%

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

$

22,020,144

 

$

165,586

 

2.98

%

 

$

22,264,293

 

$

179,097

 

3.19

%

 

$

(244,149

)

(0.21

)%

 

 

 

 

 

 

 

 

 

 

 

Net interest income(1)

 

$

251,362

 

 

 

 

$

253,444

 

 

 

 

 

Net interest margin

 

 

3.20

%

 

 

 

3.22

%

 

 

(0.02

)%

 

 

 

 

 

 

 

 

 

 

 

Total funds(2)

$

29,829,470

 

$

165,586

 

2.20

%

 

$

29,947,429

 

$

179,097

 

2.37

%

 

$

(117,959

)

(0.17

)%

 

(1)

 

Includes net loan discount accretion of $12.7 million and $19.3 million for the three months ended December 31, 2025 and September 30, 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.

Full Year 2025 vs Full Year 2024

Net interest income increased by $51.3 million to $977.4 million for the year ended December 31, 2025 from $926.1 million for the year ended December 31, 2024 attributable primarily to the following:

  • A decrease of $157.5 million in interest expense on deposits due primarily to lower interest paid on interest-bearing deposits as a result of deposit rate repricing driven by the federal funds rate cuts of 100 basis points in the second half of 2024 and 75 basis points in the second half of 2025 and lower average balances including the paydown of brokered deposits.
  • A decrease of $25.6 million in interest expense on borrowings driven by lower average balances resulting from the payoff of higher-cost borrowings in 2024, which were partially replaced with lower-cost long-term FHLB advances and lower market interest rates.
  • An increase of $12.5 million in interest income from investment securities reflecting the benefits from 2024 balance sheet repositioning actions and reinvestment in higher-yield securities.

This was offset partially by:

  • A decrease of $87.4 million in interest income from deposits in financial institutions driven by lower balances, as we maintained a lower cash target level and lower market interest rates.
  • A decrease of $61.1 million in interest income from loans due primarily to lower market interest rates reflective of federal funds rate cuts, lower average balances attributable mainly to our July 2024 sale of $1.95 billion of Civic loans, and by lower net loan discount accretion income.

The net interest margin was 3.15% for the year ended December 31, 2025, up 30 basis points from 2.85% for the year ended December 31, 2024. The year-over-year improvement was primarily driven by a 49 basis point decrease in the average total cost of funds to 2.35%, offset partially by an 18 basis point decrease in the average yield on interest-earning assets to 5.40%.

The average total cost of funds decreased by 49 basis points to 2.35%, driven mainly by lower market interest rates. The average cost of deposits declined by 47 basis points to 2.05%, reflecting the impact of federal funds rate cuts in the second half of 2024 and second half of 2025. Average total deposits decreased by $1.2 billion year over year, including a $1.1 billion reduction in average interest-bearing deposits and a $132.0 million decrease in average noninterest-bearing deposits. Despite this decline, average noninterest-bearing deposits represented 28.3% of average total deposits for the year ended December 31, 2025, up from 27.5% for the comparable period in 2024. The average cost of borrowings also decreased by 76 basis points to 4.92%, reflecting the paydown of higher-cost borrowings in the prior year and their replacement with lower-cost long-term FHLB advances.

The average yield on interest-earning assets declined by 18 basis points to 5.40%, due primarily to an 18 basis point decline in the average yield on loans and leases.

 

Year Ended

Increase (Decrease)

 

December 31, 2025

 

December 31, 2024

 

YoY

Summary

 

Interest

Average

 

 

Interest

Average

 

 

Average

Average Balance

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Average

Yield/

and Yield/Cost Data

Balance

Expense

Cost

 

Balance

Expense

Cost

 

Balance

Cost

 

(Dollars in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

Loans and leases(1)

$

24,300,808

$

1,440,397

5.93

%

 

$

24,569,650

$

1,501,534

6.11

%

 

$

(268,842

)

(0.18

)%

Investment securities

 

4,782,267

 

 

153,326

 

3.21

%

 

 

4,686,615

 

 

140,794

 

3.00

%

 

 

95,652

 

0.21

%

Deposits in financial institutions

 

1,937,775

 

 

82,930

 

4.28

%

 

 

3,226,658

 

 

170,377

 

5.28

%

 

 

(1,288,883

)

(1.00

)%

Total interest-earning assets

$

31,020,850

 

$

1,676,653

 

5.40

%

 

$

32,482,923

 

$

1,812,705

 

5.58

%

 

$

(1,462,073

)

(0.18

)%

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

7,698,015

 

 

 

 

$

7,829,976

 

 

 

 

$

(131,961

)

 

Total interest-bearing deposits

 

19,486,610

 

$

558,440

 

2.87

%

 

 

20,599,820

 

$

715,984

 

3.48

%

 

 

(1,113,210

)

(0.61

)%

Total deposits

$

27,184,625

 

 

558,440

 

2.05

%

 

$

28,429,796

 

 

715,984

 

2.52

%

 

$

(1,245,171

)

(0.47

)%

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing liabilities

$

22,033,788

 

$

699,267

 

3.17

%

 

$

23,378,167

 

$

886,655

 

3.79

%

 

$

(1,344,379

)

(0.62

)%

 

 

 

 

 

 

 

 

 

 

 

Net interest income(1)

 

$

977,386

 

 

 

 

$

926,050

 

 

 

 

 

Net interest margin

 

 

3.15

%

 

 

 

2.85

%

 

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

Total funds(2)

$

29,731,803

 

$

699,267

 

2.35

%

 

$

31,208,143

 

$

886,655

 

2.84

%

 

$

(1,476,340

)

(0.49

)%

 

(1)

 

Includes net loan discount accretion of $64.2 million and $88.0 million for the year ended December 31, 2025 and 2024.

(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

Fourth Quarter of 2025 Compared to Third Quarter of 2025

The provision for credit losses was $12.5 million for the fourth quarter compared to $9.7 million for the third quarter. The fourth quarter provision included a provision for loan losses of $7.8 million and a $4.7 million provision for unfunded loan commitments.

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.

The third quarter provision included an $8.7 million provision for loan losses and a $1.0 million provision for unfunded loan commitments.

The third quarter provision for loan losses and unfunded loan commitments reflected changes in loan risk ratings, new originations, changes in the macroeconomic outlook, and higher unfunded commitments, partially offset by net recoveries and a lower qualitative reserve driven by lower balances in commercial real estate loans secured by office properties.

Full Year 2025 vs Full Year 2024

The provision for credit losses was $70.6 million for the year ended December 31, 2025, compared to $42.8 million for the year ended December 31, 2024. The provision for 2025 included a provision for loan losses of $64.8 million and a provision for unfunded loan commitments of $5.9 million.

The provision for 2025 included $26.3 million related to loans transferred to HFS in the second quarter of 2025 in connection with a strategic loan sale. The remaining increase in the provision for loan losses and unfunded loan commitments 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, and higher unfunded commitments. These were offset partially by lower qualitative reserves, lower specific reserves, and a favorable shift in the portfolio mix due to growth in loan segments with lower expected credit losses.

The provision for loan losses and unfunded loan commitments for 2024 primarily included a $43.5 million provision for loan losses and a $0.5 million reversal of the provision for unfunded loan commitments. The provision for 2024 was driven mainly by net charge-off activity during the year.

Noninterest Income

Fourth Quarter of 2025 Compared to Third Quarter of 2025

Noninterest income increased by $7.3 million to $41.6 million for the fourth quarter from $34.3 million for the third quarter due mainly to a $6.1 million increase in leased equipment income and a $1.2 million increase in dividends and gains on equity investments. The increase in leased equipment income was due mainly to higher gains on early lease terminations. The increase in dividends and gains on equity investments was primarily related to higher fair value gains on Small Business Investment Company investments.

Full Year 2025 vs Full Year 2024

Noninterest income increased by $65.0 million to $142.1 million for the year ended December 31, 2025 from $77.1 million for the year ended December 31, 2024. The prior year period included a $59.9 million loss on the sale of $742 million of securities executed as part of a balance sheet repositioning initiative.

Noninterest Expense

Fourth Quarter of 2025 Compared to Third Quarter of 2025

Noninterest expense decreased by $5.0 million to $180.6 million for the fourth quarter from $185.7 million for the third quarter due mainly to decreases of $3.0 million in compensation expense and $1.9 million in insurance and assessments expense. The compensation expense decrease was mainly driven by lower incentive and equity compensation and lower payroll taxes. Insurance and assessments expense declined primarily due to a lower FDIC quarterly assessment and adjustments related to the FDIC special assessment.

Full Year 2025 vs Full Year 2024

Noninterest expense decreased by $55.9 million to $735.9 million for the year ended December 31, 2025 due mainly to decreases of $38.0 million in insurance and assessments expense, $24.0 million in customer related expenses, and $7.4 million in occupancy expense, offset partially by $14.2 million in acquisition, integration and reorganization costs from 2024 that did not recur. Insurance and assessments expense decreased due primarily to incremental FDIC special assessments recorded in 2024, which reflected higher assessment rates. Customer related expense decreased due to lower earnings credit rate expenses, driven by the lower federal funds rate. Occupancy expense decreased as a result of cost savings from branch consolidations following the PacWest Bancorp merger. Acquisition, integration and reorganization costs of $14.2 million in 2024 reflected adjustments to the merger-related accruals, as actual expenses were lower than previously estimated.

Income Taxes

Fourth Quarter of 2025 Compared to Third Quarter of 2025

Income tax expense of $22.4 million was recorded for the fourth quarter resulting in an effective tax rate of 22.4% compared to income tax expense of $22.7 million and an effective tax rate of 24.6% for the third quarter.

Full Year 2025 vs Full Year 2024

Income tax expense of $84.1 million was recorded for the year ended December 31, 2025, resulting in an effective tax rate of 26.9% compared to income tax expense of $41.8 million and an effective tax rate of 24.8% for the comparable period in 2024. The higher 2025 effective tax rate was due primarily to a one-time non-cash tax expense DTA revaluation recorded in the second quarter of 2025 related to the California state tax changes passed as part of the 2025 California budget enacted on June 30, 2025 and effective retroactively to January 1, 2025.

BALANCE SHEET HIGHLIGHTS

 

December 31,

 

September 30,

 

December 31,

 

Increase (Decrease)

Selected Balance Sheet Items

 

2025

 

 

 

2025

 

 

 

2024

 

 

QoQ

 

YoY

 

(In thousands)

Cash and cash equivalents

$

2,307,965

 

$

2,398,265

 

$

2,502,212

 

$

(90,300

)

 

$

(194,247

)

Securities available-for-sale

 

2,454,058

 

 

 

2,426,734

 

 

 

2,246,839

 

 

 

27,324

 

 

 

207,219

 

Securities held-to-maturity

 

2,308,636

 

 

 

2,303,657

 

 

 

2,306,149

 

 

 

4,979

 

 

 

2,487

 

Loans held for sale

 

182,936

 

 

 

211,454

 

 

 

26,331

 

 

 

(28,518

)

 

 

156,605

 

Loans and leases held for investment

 

25,032,679

 

 

 

24,110,642

 

 

 

23,781,663

 

 

 

922,037

 

 

 

1,251,016

 

Total loans and leases

 

25,215,615

 

 

 

24,322,096

 

 

 

23,807,994

 

 

 

893,519

 

 

 

1,407,621

 

Total assets

 

34,797,442

 

 

 

34,012,965

 

 

 

33,542,864

 

 

 

784,477

 

 

 

1,254,578

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

7,822,787

 

 

$

7,603,748

 

 

$

7,719,913

 

 

$

219,039

 

 

$

102,874

 

Total deposits

 

27,843,357

 

 

 

27,184,765

 

 

 

27,191,909

 

 

 

658,592

 

 

 

651,448

 

Borrowings

 

2,063,819

 

 

 

2,005,022

 

 

 

1,391,814

 

 

 

58,797

 

 

 

672,005

 

Total liabilities

 

31,256,165

 

 

 

30,546,226

 

 

 

30,042,915

 

 

 

709,939

 

 

 

1,213,250

 

Total stockholders' equity

 

3,541,277

 

 

 

3,466,739

 

 

 

3,499,949

 

 

 

74,538

 

 

 

41,328

 

Securities

Securities available-for-sale ("AFS") increased by $27.3 million during the fourth quarter to $2.5 billion at December 31, 2025. The increase was primarily driven by $160.9 million of purchases and a $15.7 million increase in the fair value of AFS securities, offset partially by $118.6 million of principal paydowns, $29.3 million of maturities, and $1.4 million of net amortization. As of December 31, 2025, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $136.6 million, down from $147.9 million at September 30, 2025. AFS securities recorded lower unrealized net losses quarter over quarter, driven by a slight decline in interest rates, which positively impacted fair values.

The balance of securities held-to-maturity ("HTM") increased by $5.0 million in the fourth quarter to $2.3 billion at December 31, 2025. As of December 31, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $133.4 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 held for investment as of the dates indicated:

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Composition of Loans and Leases

 

 

 

 

 

 

 

 

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

Commercial

$

4,314,637

 

 

$

4,292,625

 

 

$

4,369,401

 

 

$

4,489,543

 

 

$

4,578,772

 

Multi-family

 

6,089,417

 

 

 

6,124,673

 

 

 

6,280,791

 

 

 

6,216,084

 

 

 

6,041,713

 

Other residential

 

3,346,733

 

 

 

3,162,564

 

 

 

3,157,616

 

 

 

2,787,031

 

 

 

2,807,174

 

Total real estate mortgage

 

13,750,787

 

 

 

13,579,862

 

 

 

13,807,808

 

 

 

13,492,658

 

 

 

13,427,659

 

Real estate construction and land:

 

 

 

 

 

 

 

 

 

Commercial

 

379,387

 

 

 

395,150

 

 

 

381,449

 

 

 

733,684

 

 

 

799,131

 

Residential

 

1,568,240

 

 

 

1,759,676

 

 

 

1,920,642

 

 

 

2,127,354

 

 

 

2,373,162

 

Total real estate construction and land

 

1,947,627

 

 

 

2,154,826

 

 

 

2,302,091

 

 

 

2,861,038

 

 

 

3,172,293

 

Total real estate

 

15,698,414

 

 

 

15,734,688

 

 

 

16,109,899

 

 

 

16,353,696

 

 

 

16,599,952

 

Commercial:

 

 

 

 

 

 

 

 

 

Asset-based

 

2,951,010

 

 

 

2,742,519

 

 

 

2,462,351

 

 

 

2,305,325

 

 

 

2,087,969

 

Venture capital

 

2,222,097

 

 

 

1,907,601

 

 

 

2,002,601

 

 

 

1,733,074

 

 

 

1,537,776

 

Other commercial

 

3,804,099

 

 

 

3,356,537

 

 

 

3,288,305

 

 

 

3,340,400

 

 

 

3,153,084

 

Total commercial

 

8,977,206

 

 

 

8,006,657

 

 

 

7,753,257

 

 

 

7,378,799

 

 

 

6,778,829

 

Consumer

 

357,059

 

 

 

369,297

 

 

 

382,737

 

 

 

394,032

 

 

 

402,882

 

Total loans and leases held for investment

$

25,032,679

 

 

$

24,110,642

 

 

$

24,245,893

 

 

$

24,126,527

 

 

$

23,781,663

 

 

 

 

 

 

 

 

 

 

 

Total unfunded loan commitments

$

5,433,357

 

 

$

4,822,917

 

 

$

4,673,596

 

 

$

4,858,960

 

 

$

4,887,690

 

 

 

 

 

 

 

 

 

 

 

Composition as % of Total

 

 

 

 

 

 

 

 

 

Loans and Leases

 

 

 

 

 

 

 

 

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

Commercial

 

17

%

 

 

18

%

 

 

18

%

 

 

19

%

 

 

19

%

Multi-family

 

24

%

 

 

25

%

 

 

26

%

 

 

26

%

 

 

26

%

Other residential

 

14

%

 

 

13

%

 

 

13

%

 

 

11

%

 

 

12

%

Total real estate mortgage

 

55

%

 

 

56

%

 

 

57

%

 

 

56

%

 

 

57

%

Real estate construction and land:

 

 

 

 

 

 

 

 

 

Commercial

 

2

%

 

 

2

%

 

 

1

%

 

 

3

%

 

 

3

%

Residential

 

6

%

 

 

7

%

 

 

8

%

 

 

9

%

 

 

10

%

Total real estate construction and land

 

8

%

 

 

9

%

 

 

9

%

 

 

12

%

 

 

13

%

Total real estate

 

63

%

 

 

65

%

 

 

66

%

 

 

68

%

 

 

70

%

Commercial:

 

 

 

 

 

 

 

 

 

Asset-based

 

12

%

 

 

11

%

 

 

10

%

 

 

9

%

 

 

9

%

Venture capital

 

9

%

 

 

8

%

 

 

8

%

 

 

7

%

 

 

6

%

Other commercial

 

15

%

 

 

14

%

 

 

14

%

 

 

14

%

 

 

13

%

Total commercial

 

36

%

 

 

33

%

 

 

32

%

 

 

30

%

 

 

28

%

Consumer

 

1

%

 

 

2

%

 

 

2

%

 

 

2

%

 

 

2

%

Total loans and leases held for investment

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

Total loans and leases held for investment increased by $922.0 million in the fourth quarter and totaled $25.0 billion at December 31, 2025. The increase in loans and leases held for investment was due primarily to increased balances in other commercial loans, venture capital loans, asset-based loans, and other residential real estate mortgage loans, offset partially by a decrease in residential real estate construction and land loans. Loan production and disbursements totaled $2.7 billion in the fourth quarter with a weighted average interest rate on production of 6.83%.

Total loans and leases held for sale decreased by $28.5 million in the fourth quarter and totaled $182.9 million at December 31, 2025. The decrease in loans held for sale was primarily driven by loan payoffs, transfers to foreclosed assets, and the sale of loans that had been transferred to held for sale during the third quarter.

Credit Quality

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

Asset Quality Information and Ratios

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Delinquent loans and leases held for investment:

 

 

 

 

 

 

 

 

 

30 to 89 days delinquent

$

108,303

 

 

$

56,416

 

 

$

53,900

 

 

$

100,664

 

 

$

91,347

 

90+ days delinquent

 

92,655

 

 

 

104,952

 

 

 

95,566

 

 

 

99,976

 

 

 

88,846

 

Total delinquent loans and leases

$

200,958

 

 

$

161,368

 

 

$

149,466

 

 

$

200,640

 

 

$

180,193

 

 

 

 

 

 

 

 

 

 

 

Total delinquent loans and leases to loans and leases held for investment

 

0.80

%

 

 

0.67

%

 

 

0.62

%

 

 

0.83

%

 

 

0.76

%

 

 

 

 

 

 

 

 

 

 

Nonperforming assets, excluding loans held for sale:

 

 

 

 

 

 

 

 

 

Nonaccrual loans and leases

$

159,168

 

 

$

174,541

 

 

$

167,516

 

 

$

213,480

 

 

$

189,605

 

90+ days delinquent loans and still accruing

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonperforming loans and leases ("NPLs")

 

159,168

 

 

 

174,541

 

 

 

167,516

 

 

 

213,480

 

 

 

189,605

 

Foreclosed assets, net

 

17,115

 

 

 

4,790

 

 

 

7,806

 

 

 

5,474

 

 

 

9,734

 

Total nonperforming assets ("NPAs")

$

176,283

 

 

$

179,331

 

 

$

175,322

 

 

$

218,954

 

 

$

199,339

 

 

 

 

 

 

 

 

 

 

 

Classified loans and leases held for investment

$

800,330

 

 

$

763,582

 

 

$

656,556

 

 

$

764,723

 

 

$

563,502

 

Special mention loans and leases held for investment

 

458,683

 

 

 

505,979

 

 

 

661,568

 

 

 

937,014

 

 

 

1,097,315

 

Criticized loans and leases held for investment

$

1,259,013

 

 

$

1,269,561

 

 

$

1,318,124

 

 

$

1,701,737

 

 

$

1,660,817

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

$

245,612

 

 

$

240,501

 

 

$

229,344

 

 

$

234,986

 

 

$

239,360

 

Allowance for loan and lease losses to NPLs

 

154.31

%

 

 

137.79

%

 

 

136.91

%

 

 

110.07

%

 

 

126.24

%

NPLs to loans and leases held for investment

 

0.64

%

 

 

0.72

%

 

 

0.69

%

 

 

0.88

%

 

 

0.80

%

NPAs to total assets

 

0.51

%

 

 

0.53

%

 

 

0.51

%

 

 

0.65

%

 

 

0.59

%

Classified loans and leases to loans and leases held for investment

 

3.20

%

 

 

3.17

%

 

 

2.71

%

 

 

3.17

%

 

 

2.37

%

Special mention loans and leases to loans and leases held for investment

 

1.83

%

 

 

2.10

%

 

 

2.73

%

 

 

3.88

%

 

 

4.61

%

The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, and robust credit metrics. Credit quality metrics remained stable in the fourth quarter, with reductions in nonperforming, criticized, and special mention loans and leases, as a percentage of total loans and leases held for investment, of 8 basis points, 24 basis points, and 27 basis points, respectively, during the fourth quarter to 0.64%, 5.03%, and 1.83% at December 31, 2025, respectively.

At December 31, 2025, total delinquent loans and leases were $201.0 million, compared to $161.4 million at September 30, 2025. The $39.6 million increase in total delinquent loans was driven by higher balances in the 30 to 89 days delinquent category offset partially by lower balances in the 90 or more days delinquent category. The 30 to 89 days delinquent category increased by $32.9 million in multi-family real estate mortgage loans and $26.5 million in residential real estate construction and land loans, offset partially by a decrease of $11.7 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $9.9 million in other residential real estate mortgage loans and $4.7 million in commercial real estate mortgage loans. Total delinquent loans and leases as a percentage of loans and leases held for investment increased to 0.80% at December 31, 2025 from 0.67% at September 30, 2025.

At December 31, 2025, nonperforming loans and leases were $159.2 million, compared to $174.5 million at September 30, 2025. During the fourth quarter, nonperforming loans and leases decreased by $15.4 million due to payoffs and paydowns of $21.3 million, transfers to accrual status of $4.5 million, and charge-offs of $3.5 million, offset partially by additions of $13.9 million.

Nonperforming loans and leases as a percentage of loans and leases held for investment decreased to 0.64% at December 31, 2025 from 0.72% at September 30, 2025.

At December 31, 2025, nonperforming assets were $176.3 million, or 0.51% of total assets, compared to $179.3 million, or 0.53% of total assets, as of September 30, 2025. At December 31, 2025, nonperforming assets included $17.1 million of foreclosed assets, consisting primarily of single-family residences.

Allowance for Credit Losses – Loans

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

Allowance for Credit Losses – Loans

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

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

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

240,501

 

 

$

229,344

 

 

$

254,345

 

 

$

239,360

 

 

$

281,687

 

Charge-offs

 

(5,541

)

 

 

(6,465

)

 

 

(27,696

)

 

 

(75,505

)

 

 

(94,943

)

Recoveries

 

2,852

 

 

 

8,922

 

 

 

1,211

 

 

 

16,977

 

 

 

9,116

 

Net (charge-offs) recoveries

 

(2,689

)

 

 

2,457

 

 

 

(26,485

)

 

 

(58,528

)

 

 

(85,827

)

Provision for loan losses

 

7,800

 

 

 

8,700

 

 

 

11,500

 

 

 

64,780

 

 

 

43,500

 

Balance at end of period

$

245,612

 

 

$

240,501

 

 

$

239,360

 

 

$

245,612

 

 

$

239,360

 

 

 

 

 

 

 

 

 

 

 

Reserve for unfunded loan commitments ("RUC"):

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

30,221

 

 

$

29,221

 

 

$

27,571

 

 

$

29,071

 

 

$

29,571

 

Provision for credit losses

 

4,700

 

 

 

1,000

 

 

 

1,500

 

 

 

5,850

 

 

 

(500

)

Balance at end of period

$

34,921

 

 

$

30,221

 

 

$

29,071

 

 

$

34,921

 

 

$

29,071

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Balance at beginning of period

$

270,722

 

 

$

258,565

 

 

$

281,916

 

 

$

268,431

 

 

$

311,258

 

Charge-offs

 

(5,541

)

 

 

(6,465

)

 

 

(27,696

)

 

 

(75,505

)

 

 

(94,943

)

Recoveries

 

2,852

 

 

 

8,922

 

 

 

1,211

 

 

 

16,977

 

 

 

9,116

 

Net (charge-offs) recoveries

 

(2,689

)

 

 

2,457

 

 

 

(26,485

)

 

 

(58,528

)

 

 

(85,827

)

Provision for credit losses

 

12,500

 

 

 

9,700

 

 

 

13,000

 

 

 

70,630

 

 

 

43,000

 

Balance at end of period

$

280,533

 

 

$

270,722

 

 

$

268,431

 

 

$

280,533

 

 

$

268,431

 

 

 

 

 

 

 

 

 

 

 

ALLL to loans and leases held for investment

 

0.98

%

 

 

1.00

%

 

 

1.01

%

 

 

0.98

%

 

 

1.01

%

ACL to loans and leases held for investment

 

1.12

%

 

 

1.12

%

 

 

1.13

%

 

 

1.12

%

 

 

1.13

%

ACL to NPLs

 

176.25

%

 

 

155.11

%

 

 

141.57

%

 

 

176.25

%

 

 

141.57

%

ACL to NPAs

 

159.14

%

 

 

150.96

%

 

 

134.66

%

 

 

159.14

%

 

 

134.66

%

Annualized net charge-offs (recoveries) to average loans and leases

 

0.04

%

 

 

(0.04

)%

 

 

0.45

%

 

 

0.24

%

 

 

0.35

%

The allowance for credit losses – loans, which includes the reserve for unfunded loan commitments, totaled $280.5 million, or 1.12% of total loans and leases, at December 31, 2025, compared to $270.7 million, or 1.12% of total loans and leases, at September 30, 2025. The $9.8 million increase in the allowance was driven by a $12.5 million provision, offset partially by net charge-offs of $2.7 million.

Our ability to absorb credit losses is also bolstered by (i) $108.4 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.2 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $15.9 million on approximately $1.3 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 1.62% of total loans and leases at December 31, 2025 compared to 1.65% at September 30, 2025.

The ACL coverage of nonperforming loans and leases was 176% at December 31, 2025 compared to 155% at September 30, 2025.

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

(1)

 

Non-GAAP measure; refer to section 'Non-GAAP Measures'

Deposits and Client Investment Funds

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

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Composition of Deposits

 

 

 

 

 

 

 

 

 

Noninterest-bearing checking

$

7,822,787

 

 

$

7,603,748

 

 

$

7,441,116

 

 

$

7,593,950

 

 

$

7,719,913

 

Interest-bearing:

 

 

 

 

 

 

 

 

 

Checking

 

8,509,587

 

 

 

7,930,951

 

 

 

7,974,452

 

 

 

7,747,051

 

 

 

7,610,705

 

Money market

 

4,917,857

 

 

 

4,974,177

 

 

 

5,375,080

 

 

 

5,367,788

 

 

 

5,361,635

 

Savings

 

1,905,863

 

 

 

1,949,369

 

 

 

1,932,906

 

 

 

1,999,062

 

 

 

1,933,232

 

Time deposits:

 

 

 

 

 

 

 

 

 

Non-brokered

 

2,254,293

 

 

 

2,468,017

 

 

 

2,492,890

 

 

 

2,490,639

 

 

 

2,488,217

 

Brokered

 

2,432,970

 

 

 

2,258,503

 

 

 

2,311,989

 

 

 

1,994,701

 

 

 

2,078,207

 

Total time deposits

 

4,687,263

 

 

 

4,726,520

 

 

 

4,804,879

 

 

 

4,485,340

 

 

 

4,566,424

 

Total interest-bearing

 

20,020,570

 

 

 

19,581,017

 

 

 

20,087,317

 

 

 

19,599,241

 

 

 

19,471,996

 

Total deposits

$

27,843,357

 

 

$

27,184,765

 

 

$

27,528,433

 

 

$

27,193,191

 

 

$

27,191,909

 

 

 

 

 

 

 

 

 

 

 

Composition as % of

 

 

 

 

 

 

 

 

 

Total Deposits

 

 

 

 

 

 

 

 

 

Noninterest-bearing checking

 

28

%

 

 

28

%

 

 

27

%

 

 

28

%

 

 

28

%

Interest-bearing:

 

 

 

 

 

 

 

 

 

Checking

 

30

%

 

 

29

%

 

 

29

%

 

 

29

%

 

 

28

%

Money market

 

18

%

 

 

19

%

 

 

20

%

 

 

20

%

 

 

20

%

Savings

 

7

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

7

%

Time deposits:

 

 

 

 

 

 

 

 

 

Non-brokered

 

8

%

 

 

9

%

 

 

9

%

 

 

9

%

 

 

9

%

Brokered

 

9

%

 

 

8

%

 

 

8

%

 

 

7

%

 

 

8

%

Total time deposits

 

17

%

 

 

17

%

 

 

17

%

 

 

16

%

 

 

17

%

Total interest-bearing

 

72

%

 

 

72

%

 

 

73

%

 

 

72

%

 

 

72

%

Total deposits

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

Total deposits increased by $658.6 million to $27.8 billion at December 31, 2025 from $27.2 billion at September 30, 2025, driven by an increase in interest-bearing deposits of $439.6 million and an increase in noninterest-bearing deposits of $219.0 million. Interest-bearing deposits increased due mainly to higher balances in checking accounts of $578.6 million, offset partially by lower money market accounts of $56.3 million, lower savings accounts of $43.5 million, and lower brokered and non-brokered time deposits of $39.3 million.

At December 31, 2025, noninterest-bearing checking deposits totaled $7.8 billion, or 28% of total deposits, compared to $7.6 billion, or 28% of total deposits, at September 30, 2025.

At December 31, 2025, uninsured and uncollateralized deposits totaled $7.7 billion, or 28% of total deposits, compared to $7.6 billion, or 28% of total deposits, at September 30, 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 December 31, 2025, compared to $1.1 billion as of September 30, 2025.

Borrowings

Borrowings increased by $58.8 million to $2.1 billion at December 31, 2025 from $2.0 billion at September 30, 2025, mainly due to higher overnight and short-term borrowings.

Equity

During the fourth quarter, total stockholders’ equity increased by $74.5 million to $3.5 billion and tangible common equity(1) increased by $81.2 million to $2.7 billion at December 31, 2025. The increase in total stockholders’ equity for the fourth quarter resulted primarily from net earnings of $77.4 million.

At December 31, 2025, book value per common share increased to $19.56 compared to $19.09 at September 30, 2025, and tangible book value per common share(1) increased to $17.51 compared to $16.99 at September 30, 2025.

For the year ended December 31, 2025, repurchases of Company common and common equivalent stock under the Company's stock repurchase program totaled 13,648,429 shares at a weighted average price per share of $13.59, or $185.5 million in the aggregate. As of December 31, 2025, the Company had $114.5 million remaining under the current stock repurchase authorization.

(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:

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

2025

 

2025

 

2025

 

2025

 

2024

Capital Ratios (1)

 

 

 

 

 

 

 

 

 

Banc of California, Inc.

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

16.31

%

 

16.69

%

 

16.37

%

 

16.93

%

 

17.05

%

Tier 1 risk-based capital ratio

12.34

%

 

12.56

%

 

12.34

%

 

12.86

%

 

12.97

%

Common equity tier 1 capital ratio

10.01

%

 

10.14

%

 

9.95

%

 

10.45

%

 

10.55

%

Tier 1 leverage ratio

9.99

%

 

9.77

%

 

9.74

%

 

10.19

%

 

10.15

%

 

 

 

 

 

 

 

 

 

 

Banc of California

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

15.61

%

 

15.94

%

 

15.65

%

 

16.22

%

 

16.65

%

Tier 1 risk-based capital ratio

13.15

%

 

13.42

%

 

13.21

%

 

13.74

%

 

14.17

%

Common equity tier 1 capital ratio

13.15

%

 

13.42

%

 

13.21

%

 

13.74

%

 

14.17

%

Tier 1 leverage ratio

10.65

%

 

10.44

%

 

10.42

%

 

10.88

%

 

11.08

%

 

(1)

 

December 31, 2025 capital ratios are preliminary.

At December 31, 2025, cash and cash equivalents totaled $2.3 billion, down $90.3 million from September 30, 2025.

Our immediately available cash and cash equivalents (excluding restricted cash) were $2.1 billion. Combined with total available borrowing capacity of $9.8 billion and unpledged AFS securities of $2.3 billion, total available liquidity was $14.2 billion at the end of the fourth quarter.

Conference Call

The Company will host a conference call to discuss its fourth quarter and full year 2025 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, January 22, 2026. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 0299940. 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 3936449.

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, acts of war or terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) the risk that we may incur significant losses on future asset sales or may not be able to execute anticipated asset sales; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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, adjusted return on average tangible common equity, adjusted net earnings, adjusted return on average assets, 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)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

ASSETS:

(Dollars in thousands)

Cash and due from banks

$

181,103

 

 

$

205,364

 

 

$

222,210

 

 

$

215,591

 

 

$

192,006

 

Interest-earning deposits in financial institutions

 

2,126,862

 

 

 

2,192,901

 

 

 

2,131,342

 

 

 

2,128,298

 

 

 

2,310,206

 

Total cash and cash equivalents

 

2,307,965

 

 

 

2,398,265

 

 

 

2,353,552

 

 

 

2,343,889

 

 

 

2,502,212

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

2,454,058

 

 

 

2,426,734

 

 

 

2,246,174

 

 

 

2,334,058

 

 

 

2,246,839

 

Securities held-to-maturity

 

2,308,636

 

 

 

2,303,657

 

 

 

2,316,725

 

 

 

2,311,912

 

 

 

2,306,149

 

FRB and FHLB stock

 

160,442

 

 

 

159,337

 

 

 

162,243

 

 

 

155,330

 

 

 

147,773

 

Total investment securities

 

4,923,136

 

 

 

4,889,728

 

 

 

4,725,142

 

 

 

4,801,300

 

 

 

4,700,761

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

182,936

 

 

 

211,454

 

 

 

465,571

 

 

 

25,797

 

 

 

26,331

 

 

 

 

 

 

 

 

 

 

 

Loans and leases held for investment

 

25,032,679

 

 

 

24,110,642

 

 

 

24,245,893

 

 

 

24,126,527

 

 

 

23,781,663

 

Allowance for loan and lease losses

 

(245,612

)

 

 

(240,501

)

 

 

(229,344

)

 

 

(234,986

)

 

 

(239,360

)

Total loans and leases held for investment, net

 

24,787,067

 

 

 

23,870,141

 

 

 

24,016,549

 

 

 

23,891,541

 

 

 

23,542,303

 

 

 

 

 

 

 

 

 

 

 

Equipment leased to others under operating leases

 

238,232

 

 

 

280,872

 

 

 

288,692

 

 

 

295,032

 

 

 

307,188

 

Premises and equipment, net

 

146,698

 

 

 

132,766

 

 

 

138,032

 

 

 

140,347

 

 

 

142,546

 

Bank owned life insurance

 

350,083

 

 

 

348,051

 

 

 

346,142

 

 

 

342,810

 

 

 

339,517

 

Goodwill

 

214,521

 

 

 

214,521

 

 

 

214,521

 

 

 

214,521

 

 

 

214,521

 

Intangible assets, net

 

105,287

 

 

 

111,923

 

 

 

118,930

 

 

 

125,937

 

 

 

132,944

 

Deferred tax asset, net

 

656,755

 

 

 

672,159

 

 

 

691,535

 

 

 

702,323

 

 

 

720,587

 

Other assets

 

884,762

 

 

 

883,085

 

 

 

891,787

 

 

 

896,421

 

 

 

913,954

 

Total assets

$

34,797,442

 

 

$

34,012,965

 

 

$

34,250,453

 

 

$

33,779,918

 

 

$

33,542,864

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

7,822,787

 

 

$

7,603,748

 

 

$

7,441,116

 

 

$

7,593,950

 

 

$

7,719,913

 

Interest-bearing deposits

 

20,020,570

 

 

 

19,581,017

 

 

 

20,087,317

 

 

 

19,599,241

 

 

 

19,471,996

 

Total deposits

 

27,843,357

 

 

 

27,184,765

 

 

 

27,528,433

 

 

 

27,193,191

 

 

 

27,191,909

 

Borrowings

 

2,063,819

 

 

 

2,005,022

 

 

 

1,917,180

 

 

 

1,670,782

 

 

 

1,391,814

 

Subordinated debt

 

952,740

 

 

 

950,888

 

 

 

949,213

 

 

 

944,908

 

 

 

941,923

 

Accrued interest payable and other liabilities

 

396,249

 

 

 

405,551

 

 

 

428,784

 

 

 

449,381

 

 

 

517,269

 

Total liabilities

 

31,256,165

 

 

 

30,546,226

 

 

 

30,823,610

 

 

 

30,258,262

 

 

 

30,042,915

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

Preferred stock

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

Common stock

 

1,500

 

 

 

1,509

 

 

 

1,474

 

 

 

1,561

 

 

 

1,586

 

Class B non-voting common stock

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

Non-voting common stock equivalents

 

50

 

 

 

41

 

 

 

98

 

 

 

98

 

 

 

98

 

Additional paid-in-capital

 

3,552,483

 

 

 

3,563,145

 

 

 

3,609,109

 

 

 

3,732,376

 

 

 

3,785,725

 

Retained deficit

 

(242,016

)

 

 

(309,460

)

 

 

(369,142

)

 

 

(387,580

)

 

 

(431,201

)

Accumulated other comprehensive loss, net

 

(269,261

)

 

 

(287,017

)

 

 

(313,217

)

 

 

(323,320

)

 

 

(354,780

)

Total stockholders’ equity

 

3,541,277

 

 

 

3,466,739

 

 

 

3,426,843

 

 

 

3,521,656

 

 

 

3,499,949

 

Total liabilities and stockholders’ equity

$

34,797,442

 

 

$

34,012,965

 

 

$

34,250,453

 

 

$

33,779,918

 

 

$

33,542,864

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (1)

 

155,533,403

 

 

 

155,522,693

 

 

 

157,647,137

 

 

 

166,403,086

 

 

 

168,825,656

 

 

(1)

 

Common shares outstanding include non-voting common stock equivalents that are participating securities.

 

BANC OF CALIFORNIA, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(In thousands, except per share amounts)

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

$

359,268

 

$

372,723

 

 

$

357,303

 

 

$

1,440,397

 

 

$

1,501,534

 

Investment securities

 

39,557

 

 

 

38,291

 

 

 

37,743

 

 

 

153,326

 

 

 

140,794

 

Deposits in financial institutions

 

18,123

 

 

 

21,527

 

 

 

29,473

 

 

 

82,930

 

 

 

170,377

 

Total interest income

 

416,948

 

 

 

432,541

 

 

 

424,519

 

 

 

1,676,653

 

 

 

1,812,705

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

129,896

 

 

 

143,074

 

 

 

154,085

 

 

 

558,440

 

 

 

715,984

 

Borrowings

 

19,858

 

 

 

20,461

 

 

 

18,993

 

 

 

78,761

 

 

 

104,398

 

Subordinated debt

 

15,832

 

 

 

15,562

 

 

 

16,156

 

 

 

62,066

 

 

 

66,273

 

Total interest expense

 

165,586

 

 

 

179,097

 

 

 

189,234

 

 

 

699,267

 

 

 

886,655

 

Net interest income

 

251,362

 

 

 

253,444

 

 

 

235,285

 

 

 

977,386

 

 

 

926,050

 

Provision for credit losses

 

12,500

 

 

 

9,700

 

 

 

12,801

 

 

 

70,600

 

 

 

42,801

 

Net interest income after provision for credit losses

 

238,862

 

 

 

243,744

 

 

 

222,484

 

 

 

906,786

 

 

 

883,249

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

5,038

 

 

 

5,109

 

 

 

4,770

 

 

 

19,146

 

 

 

18,583

 

Commissions and fees

 

9,524

 

 

 

9,514

 

 

 

8,231

 

 

 

38,637

 

 

 

33,258

 

Leased equipment income

 

16,381

 

 

 

10,321

 

 

 

10,730

 

 

 

47,717

 

 

 

51,109

 

Gain (loss) on sale of loans and leases

 

18

 

 

 

(374

)

 

 

20

 

 

 

(115

)

 

 

645

 

Loss on sale of securities

 

—

 

 

 

—

 

 

 

(454

)

 

 

—

 

 

 

(60,400

)

Dividends and gains on equity investments

 

3,492

 

 

 

2,291

 

 

 

18

 

 

 

7,992

 

 

 

7,982

 

Warrant income

 

361

 

 

 

433

 

 

 

343

 

 

 

1,726

 

 

 

408

 

LOCOM HFS adjustment

 

—

 

 

 

—

 

 

 

(3

)

 

 

(9

)

 

 

215

 

Other income

 

6,757

 

 

 

6,991

 

 

 

5,334

 

 

 

27,045

 

 

 

25,345

 

Total noninterest income

 

41,571

 

 

 

34,285

 

 

 

28,989

 

 

 

142,139

 

 

 

77,145

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Compensation

 

85,862

 

 

 

88,865

 

 

 

77,661

 

 

 

349,506

 

 

 

341,396

 

Occupancy

 

14,726

 

 

 

15,415

 

 

 

15,678

 

 

 

60,624

 

 

 

67,993

 

Information technology and data processing

 

13,751

 

 

 

13,535

 

 

 

14,546

 

 

 

55,458

 

 

 

60,418

 

Other professional services

 

6,774

 

 

 

5,394

 

 

 

5,498

 

 

 

23,087

 

 

 

20,857

 

Insurance and assessments

 

7,070

 

 

 

8,994

 

 

 

11,179

 

 

 

32,750

 

 

 

70,779

 

Intangible asset amortization

 

6,788

 

 

 

7,160

 

 

 

7,770

 

 

 

28,267

 

 

 

33,143

 

Leased equipment depreciation

 

6,202

 

 

 

6,750

 

 

 

7,096

 

 

 

26,393

 

 

 

29,271

 

Acquisition, integration and reorganization costs

 

—

 

 

 

—

 

 

 

(1,023

)

 

 

—

 

 

 

(14,183

)

Customer related expense

 

24,870

 

 

 

26,227

 

 

 

31,672

 

 

 

105,425

 

 

 

129,471

 

Loan expense

 

4,445

 

 

 

4,947

 

 

 

4,489

 

 

 

16,372

 

 

 

17,306

 

Other expense

 

10,156

 

 

 

8,397

 

 

 

6,804

 

 

 

37,968

 

 

 

35,289

 

Total noninterest expense

 

180,644

 

 

 

185,684

 

 

 

181,370

 

 

 

735,850

 

 

 

791,740

 

Earnings before income taxes

 

99,789

 

 

 

92,345

 

 

 

70,103

 

 

 

313,075

 

 

 

168,654

 

Income tax expense

 

22,398

 

 

 

22,716

 

 

 

13,184

 

 

 

84,102

 

 

 

41,766

 

Net earnings

 

77,391

 

 

 

69,629

 

 

 

56,919

 

 

 

228,973

 

 

 

126,888

 

Preferred stock dividends

 

9,947

 

 

 

9,947

 

 

 

9,947

 

 

 

39,788

 

 

 

39,788

 

Net earnings available to common and equivalent stockholders

$

67,444

 

 

$

59,682

 

 

$

46,972

 

 

$

189,185

 

 

$

87,100

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

$

0.43

 

 

$

0.38

 

 

$

0.28

 

 

$

1.18

 

 

$

0.52

 

Diluted

$

0.42

 

 

$

0.38

 

 

$

0.28

 

 

$

1.17

 

 

$

0.52

 

Weighted average number of common shares outstanding: (1)

 

 

 

 

 

 

 

 

 

Basic

 

155,449

 

 

 

157,103

 

 

 

168,604

 

 

 

159,807

 

 

 

168,441

 

Diluted

 

160,094

 

 

 

159,051

 

 

 

169,732

 

 

 

161,724

 

 

 

168,684

 

 

(1)

 

Common shares outstanding include non-voting common stock equivalents that are participating securities.

 

BANC OF CALIFORNIA, INC.

SELECTED FINANCIAL DATA

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

Profitability and Other Ratios

2025

 

2025

 

2024

 

2025

 

2024

Return on average assets (1)

0.91

%

 

0.82

%

 

0.67

%

 

0.68

%

 

0.36

%

Adjusted ROAA (1)(2)

0.91

%

 

0.82

%

 

0.67

%

 

0.77

%

 

0.50

%

Return on average equity (1)

8.79

%

 

8.04

%

 

6.50

%

 

6.60

%

 

3.70

%

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

10.75

%

 

9.87

%

 

7.35

%

 

7.95

%

 

4.35

%

Adjusted return on average tangible common equity (1)(2)

10.75

%

 

9.87

%

 

7.35

%

 

9.05

%

 

6.23

%

Dividend payout ratio (3)

23.26

%

 

26.32

%

 

35.71

%

 

33.90

%

 

76.92

%

Average yield on loans and leases (1)

5.83

%

 

6.05

%

 

6.01

%

 

5.93

%

 

6.11

%

Average yield on interest-earning assets (1)

5.31

%

 

5.50

%

 

5.48

%

 

5.40

%

 

5.58

%

Average cost of interest-bearing deposits (1)

2.66

%

 

2.89

%

 

3.18

%

 

2.87

%

 

3.48

%

Average total cost of deposits (1)

1.89

%

 

2.08

%

 

2.26

%

 

2.05

%

 

2.52

%

Average cost of interest-bearing liabilities (1)

2.98

%

 

3.19

%

 

3.48

%

 

3.17

%

 

3.79

%

Average total cost of funds (1)

2.20

%

 

2.37

%

 

2.55

%

 

2.35

%

 

2.84

%

Net interest spread

2.33

%

 

2.31

%

 

2.00

%

 

2.23

%

 

1.79

%

Net interest margin (1)

3.20

%

 

3.22

%

 

3.04

%

 

3.15

%

 

2.85

%

Noninterest income to total revenue (4)

14.19

%

 

11.92

%

 

10.97

%

 

12.70

%

 

7.69

%

Noninterest expense to average total assets (1)

2.12

%

 

2.18

%

 

2.15

%

 

2.19

%

 

2.24

%

Noninterest expense to total revenue (4)

61.67

%

 

64.53

%

 

68.63

%

 

65.73

%

 

78.92

%

Efficiency ratio (2)(5)

59.35

%

 

62.05

%

 

65.96

%

 

63.20

%

 

72.66

%

Loans to deposits ratio

90.56

%

 

89.47

%

 

87.56

%

 

90.56

%

 

87.56

%

Average loans and leases to average deposits

89.81

%

 

89.62

%

 

87.05

%

 

89.39

%

 

86.42

%

Average investment securities to average total assets

14.49

%

 

14.14

%

 

14.01

%

 

14.21

%

 

13.26

%

Average stockholders' equity to average total assets

10.35

%

 

10.16

%

 

10.39

%

 

10.31

%

 

9.71

%

 

(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

 

December 31, 2025

 

September 30, 2025

 

December 31, 2024

 

 

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)

$

24,443,089

$

359,268

5.83

%

 

$

24,458,255

$

372,723

6.05

%

 

$

23,649,271

$

357,303

6.01

%

Investment securities

 

4,891,281

 

 

39,557

 

3.21

%

 

 

4,782,070

 

 

38,291

 

3.18

%

 

 

4,700,742

 

 

37,743

 

3.19

%

Deposits in financial institutions

 

1,834,773

 

 

18,123

 

3.92

%

 

 

1,958,011

 

 

21,527

 

4.36

%

 

 

2,474,732

 

 

29,473

 

4.74

%

Total interest-earning assets

 

31,169,143

 

 

416,948

 

5.31

%

 

 

31,198,336

 

 

432,541

 

5.50

%

 

 

30,824,745

 

 

424,519

 

5.48

%

Other assets

 

2,583,357

 

 

 

 

 

2,632,881

 

 

 

 

 

2,737,283

 

 

 

Total assets

$

33,752,500

 

 

 

 

$

33,831,217

 

 

 

 

$

33,562,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest checking

$

7,944,858

 

 

49,319

 

2.46

%

 

$

7,855,639

 

 

53,995

 

2.73

%

 

$

7,659,320

 

 

56,408

 

2.93

%

Money market

 

4,948,960

 

 

25,810

 

2.07

%

 

 

5,154,138

 

 

30,461

 

2.34

%

 

 

5,003,118

 

 

31,688

 

2.52

%

Savings

 

1,942,678

 

 

10,863

 

2.22

%

 

 

1,966,040

 

 

12,689

 

2.56

%

 

 

1,954,625

 

 

14,255

 

2.90

%

Time

 

4,570,369

 

 

43,904

 

3.81

%

 

 

4,633,089

 

 

45,929

 

3.93

%

 

 

4,645,115

 

 

51,734

 

4.43

%

Total interest-bearing deposits

 

19,406,865

 

 

129,896

 

2.66

%

 

 

19,608,906

 

 

143,074

 

2.89

%

 

 

19,262,178

 

 

154,085

 

3.18

%

Borrowings

 

1,661,808

 

 

19,858

 

4.74

%

 

 

1,705,697

 

 

20,461

 

4.76

%

 

 

1,399,080

 

 

18,993

 

5.40

%

Subordinated debt

 

951,471

 

 

15,832

 

6.60

%

 

 

949,690

 

 

15,562

 

6.50

%

 

 

942,221

 

 

16,156

 

6.82

%

Total interest-bearing liabilities

 

22,020,144

 

 

165,586

 

2.98

%

 

 

22,264,293

 

 

179,097

 

3.19

%

 

 

21,603,479

 

 

189,234

 

3.48

%

Noninterest-bearing demand deposits

 

7,809,326

 

 

 

 

 

7,683,136

 

 

 

 

 

7,905,750

 

 

 

Other liabilities

 

428,873

 

 

 

 

 

446,453

 

 

 

 

 

566,635

 

 

 

Total liabilities

 

30,258,343

 

 

 

 

 

30,393,882

 

 

 

 

 

30,075,864

 

 

 

Stockholders' equity

 

3,494,157

 

 

 

 

 

3,437,335

 

 

 

 

 

3,486,164

 

 

 

Total liabilities and stockholders' equity

$

33,752,500

 

 

 

 

$

33,831,217

 

 

 

 

$

33,562,028

 

 

 

Net interest income (1)

 

$

251,362

 

 

 

 

$

253,444

 

 

 

 

$

235,285

 

 

Net interest spread

 

 

2.33

%

 

 

 

2.31

%

 

 

 

2.00

%

Net interest margin

 

 

3.20

%

 

 

 

3.22

%

 

 

 

3.04

%

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits (2)

$

27,216,191

 

$

129,896

 

1.89

%

 

$

27,292,042

 

$

143,074

 

2.08

%

 

$

27,167,928

 

$

154,085

 

2.26

%

Total funds (3)

$

29,829,470

 

$

165,586

 

2.20

%

 

$

29,947,429

 

$

179,097

 

2.37

%

 

$

29,509,229

 

$

189,234

 

2.55

%

 

(1)

 

Includes net loan discount accretion of $12.7 million, $19.3 million, and $20.7 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024.

(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.

AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID

(UNAUDITED)

 

 

 

 

 

 

 

 

 

Year Ended

 

December 31, 2025

 

December 31, 2024

 

 

Interest

Average

 

 

Interest

Average

 

Average

Income/

Yield/

 

Average

Income/

Yield/

 

Balance

Expense

Cost

 

Balance

Expense

Cost

 

(Dollars in thousands)

Assets:

 

 

 

 

 

 

 

Loans and leases (1)

$

24,300,808

$

1,440,397

5.93

%

 

$

24,569,650

$

1,501,534

6.11

%

Investment securities

 

4,782,267

 

 

153,326

 

3.21

%

 

 

4,686,615

 

 

140,794

 

3.00

%

Deposits in financial institutions

 

1,937,775

 

 

82,930

 

4.28

%

 

 

3,226,658

 

 

170,377

 

5.28

%

Total interest-earning assets

 

31,020,850

 

 

1,676,653

 

5.40

%

 

 

32,482,923

 

 

1,812,705

 

5.58

%

Other assets

 

2,644,888

 

 

 

 

 

2,850,565

 

 

 

Total assets

$

33,665,738

 

 

 

 

$

35,333,488

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

Interest checking

$

7,732,697

 

 

204,070

 

2.64

%

 

$

7,714,920

 

 

240,913

 

3.12

%

Money market

 

5,231,379

 

 

122,889

 

2.35

%

 

 

5,164,566

 

 

138,176

 

2.68

%

Savings

 

1,954,354

 

 

49,186

 

2.52

%

 

 

2,005,513

 

 

66,421

 

3.31

%

Time

 

4,568,180

 

 

182,295

 

3.99

%

 

 

5,714,821

 

 

270,474

 

4.73

%

Total interest-bearing deposits

 

19,486,610

 

 

558,440

 

2.87

%

 

 

20,599,820

 

 

715,984

 

3.48

%

Borrowings

 

1,599,469

 

 

78,761

 

4.92

%

 

 

1,838,819

 

 

104,398

 

5.68

%

Subordinated debt

 

947,709

 

 

62,066

 

6.55

%

 

 

939,528

 

 

66,273

 

7.05

%

Total interest-bearing liabilities

 

22,033,788

 

 

699,267

 

3.17

%

 

 

23,378,167

 

 

886,655

 

3.79

%

Noninterest-bearing

 

 

 

 

 

 

 

demand deposits

 

7,698,015

 

 

 

 

 

7,829,976

 

 

 

Other liabilities

 

462,657

 

 

 

 

 

693,981

 

 

 

Total liabilities

 

30,194,460

 

 

 

 

 

31,902,124

 

 

 

Stockholders' equity

 

3,471,278

 

 

 

 

 

3,431,364

 

 

 

Total liabilities and stockholders' equity

$

33,665,738

 

 

 

 

$

35,333,488

 

 

 

Net interest income (1)

 

$

977,386

 

 

 

 

$

926,050

 

 

Net interest spread

 

 

2.23

%

 

 

 

1.79

%

Net interest margin

 

 

3.15

%

 

 

 

2.85

%

 

 

 

 

 

 

 

 

Total deposits (2)

$

27,184,625

 

$

558,440

 

2.05

%

 

$

28,429,796

 

$

715,984

 

2.52

%

Total funds (3)

$

29,731,803

 

$

699,267

 

2.35

%

 

$

31,208,143

 

$

886,655

 

2.84

%

 

(1)

 

Includes net loan discount accretion of $64.2 million and $88.0 million for the year ended December 31, 2025 and 2024.

(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, adjusted return on average tangible common equity, adjusted net earnings, adjusted return on average assets ("Adjusted ROAA"), 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. Adjusted return on average tangible common equity is calculated by dividing adjusted net earnings available to common stockholders, after adjustment for amortization of intangible assets, any goodwill impairment, and any unusual items, by average tangible common equity. Banking regulators also exclude goodwill and other intangible assets from stockholders' equity when assessing the capital adequacy of a financial institution.

Adjusted net earnings is calculated by adjusting net earnings by unusual, one-time items.

Adjusted ROAA is calculated by dividing annualized adjusted net earnings, after adjustment for any unusual items, by average assets.

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 held for investment.

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

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

and Tangible Book Value Per Share

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands, except per share amounts)

Stockholders' equity

$

3,541,277

 

$

3,466,739

 

$

3,426,843

 

$

3,521,656

 

$

3,499,949

Less: Preferred stock

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

Total common equity

 

3,042,761

 

 

 

2,968,223

 

 

 

2,928,327

 

 

 

3,023,140

 

 

 

3,001,433

 

Less: Goodwill and intangible assets

 

319,808

 

 

 

326,444

 

 

 

333,451

 

 

 

340,458

 

 

 

347,465

 

Tangible common equity

$

2,722,953

 

 

$

2,641,779

 

 

$

2,594,876

 

 

$

2,682,682

 

 

$

2,653,968

 

 

 

 

 

 

 

 

 

 

 

Book value per common share (1)

$

19.56

 

 

$

19.09

 

 

$

18.58

 

 

$

18.17

 

 

$

17.78

 

Tangible book value per common share (2)

$

17.51

 

 

$

16.99

 

 

$

16.46

 

 

$

16.12

 

 

$

15.72

 

Common shares outstanding (3)

 

155,533,403

 

 

 

155,522,693

 

 

 

157,647,137

 

 

 

166,403,086

 

 

 

168,825,656

 

 

(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.

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

Return on Average Tangible

December 31,

 

September 30,

 

December 31,

 

December 31,

Common Equity ("ROATCE")

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Net earnings

$

77,391

 

 

$

69,629

 

 

$

56,919

 

 

$

228,973

 

 

$

126,888

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

 

$

70,103

 

 

 

 

$

168,654

 

Add: Intangible asset amortization

 

 

 

 

 

7,770

 

 

 

 

 

33,143

 

Adjusted earnings before income taxes for ROATCE

 

 

 

 

 

77,873

 

 

 

 

 

201,797

 

Adjusted income tax expense (1)

 

 

 

 

 

(19,281

)

 

 

 

 

(49,965

)

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Intangible asset amortization

 

6,788

 

 

 

7,160

 

 

 

 

 

28,267

 

 

 

Tax impact of adjustment above (1)

 

(1,823

)

 

 

(1,958

)

 

 

 

 

(7,593

)

 

 

Adjustment to net earnings

 

4,965

 

 

 

5,202

 

 

 

 

 

20,674

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings for ROATCE

 

82,356

 

 

 

74,831

 

 

 

58,592

 

 

 

249,647

 

 

 

151,832

 

Less: Preferred stock dividends

 

9,947

 

 

 

9,947

 

 

 

9,947

 

 

 

39,788

 

 

 

39,788

 

Adjusted net earnings available to common and equivalent stockholders for ROATCE

$

72,409

 

 

$

64,884

 

 

$

48,645

 

 

$

209,859

 

 

$

112,044

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

$

3,494,157

 

 

$

3,437,335

 

 

$

3,486,164

 

 

$

3,471,278

 

 

$

3,431,364

 

Less: Average goodwill and intangible assets

 

323,295

 

 

 

330,277

 

 

 

352,907

 

 

 

333,815

 

 

 

356,960

 

Less: Average preferred stock

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

Average tangible common equity

$

2,672,346

 

 

$

2,608,542

 

 

$

2,634,741

 

 

$

2,638,947

 

 

$

2,575,888

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (2)

 

8.79

%

 

 

8.04

%

 

 

6.50

%

 

 

6.60

%

 

 

3.70

%

ROATCE (3)

 

10.75

%

 

 

9.87

%

 

 

7.35

%

 

 

7.95

%

 

 

4.35

%

 

(1)

 

Effective tax rates of 26.86%, 27.34%, and 24.76% used for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Effective tax rates of 26.86% and 24.76% used for the year ended December 31, 2025 and 2024.

(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.

 

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

Adjusted Return on Average

December 31,

 

September 30,

 

December 31,

 

December 31,

Tangible Common Equity ("ROATCE")

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Net earnings

$

77,391

 

 

$

69,629

 

 

$

56,919

 

 

$

228,973

 

 

$

126,888

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

 

$

70,103

 

 

 

 

$

168,654

 

Add: Intangible asset amortization

 

 

 

 

 

7,770

 

 

 

 

 

33,143

 

Add: FDIC special assessment

 

 

 

 

 

—

 

 

 

 

 

4,814

 

Add: Loss on sale of securities

 

 

 

 

NA

 

 

 

 

59,946

 

Less: Acquisition, integration, and reorganization costs

 

 

 

 

NA

 

 

 

 

(510

)

Adjusted earnings before income taxes for adjusted ROATCE

 

 

 

 

 

77,873

 

 

 

 

 

266,047

 

Adjusted income tax expense (1)

 

 

 

 

 

(19,281

)

 

 

 

 

(65,873

)

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Intangible asset amortization

 

6,788

 

 

 

7,160

 

 

 

 

 

28,267

 

 

 

Provision for credit losses related to transfer of loans to held for sale

 

—

 

 

 

—

 

 

 

 

 

26,289

 

 

 

Total adjustments

 

6,788

 

 

 

7,160

 

 

 

 

 

54,556

 

 

 

Tax impact of adjustments above (1)

 

(1,823

)

 

 

(1,958

)

 

 

 

 

(14,654

)

 

 

Income tax related adjustments

 

—

 

 

 

—

 

 

 

 

 

9,792

 

 

 

Adjustment to net earnings

 

4,965

 

 

 

5,202

 

 

 

 

 

49,694

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings for adjusted ROATCE

 

82,356

 

 

 

74,831

 

 

 

58,592

 

 

 

278,667

 

 

 

200,174

 

Less: Preferred stock dividends

 

9,947

 

 

 

9,947

 

 

 

9,947

 

 

 

39,788

 

 

 

39,788

 

Adjusted net earnings available to common and equivalent stockholders for adjusted ROATCE

$

72,409

 

 

$

64,884

 

 

$

48,645

 

 

$

238,879

 

 

$

160,386

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

$

3,494,157

 

 

$

3,437,335

 

 

$

3,486,164

 

 

$

3,471,278

 

 

$

3,431,364

 

Less: Average goodwill and intangible assets

 

323,295

 

 

 

330,277

 

 

 

352,907

 

 

 

333,815

 

 

 

356,960

 

Less: Average preferred stock

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

 

 

498,516

 

Average tangible common equity

$

2,672,346

 

 

$

2,608,542

 

 

$

2,634,741

 

 

$

2,638,947

 

 

$

2,575,888

 

 

 

 

 

 

 

 

 

 

 

Adjusted ROATCE (2)

 

10.75

%

 

 

9.87

%

 

 

7.35

%

 

 

9.05

%

 

 

6.23

%

 

(1)

 

Effective tax rates of 26.86%, 27.34%, and 24.76% used for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Effective tax rates of 26.86% and 24.76% used for the year ended December 31, 2025 and 2024.

(2)

 

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

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

Adjusted Net Earnings, Net Earnings

Three Months Ended

 

Year Ended

Available to Common and Equivalent

December 31,

 

September 30,

 

December 31,

 

December 31,

Stockholders, Diluted EPS, and ROAA

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Net earnings

$

77,391

 

 

$

69,629

 

 

$

56,919

 

 

$

228,973

 

 

$

126,888

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

 

$

70,103

 

 

 

 

$

168,654

 

Add: FDIC special assessment

 

 

 

 

 

—

 

 

 

 

 

4,814

 

Add: Loss on sale of securities

 

 

 

 

NA

 

 

 

 

59,946

 

Less: Acquisition, integration, and reorganization costs

 

 

 

 

NA

 

 

 

 

(510

)

Adjusted earnings before income taxes

 

 

 

 

 

70,103

 

 

 

 

 

232,904

 

Adjusted income tax expense (1)

 

 

 

 

 

(13,184

)

 

 

 

 

(57,667

)

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Provision for credit losses related to transfer of loans to held for sale

 

 

 

 

 

 

 

26,289

 

 

 

Tax impact of adjustments above (1)

 

 

 

 

 

 

 

(7,061

)

 

 

Income tax related adjustments

 

 

 

 

 

 

 

9,792

 

 

 

Adjustments to net earnings

 

 

 

 

 

 

 

29,020

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

 

77,391

 

 

 

69,629

 

 

 

56,919

 

 

 

257,993

 

 

 

175,237

 

Less: Preferred stock dividends

 

9,947

 

 

 

9,947

 

 

 

9,947

 

 

 

39,788

 

 

 

39,788

 

Adjusted net earnings available to common and equivalent stockholders

$

67,444

 

 

$

59,682

 

 

$

46,972

 

 

$

218,205

 

 

$

135,449

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding

 

160,094

 

 

 

159,051

 

 

 

169,732

 

 

$

161,724

 

 

$

168,684

 

Diluted earnings per common share

$

0.42

 

 

$

0.38

 

 

$

0.28

 

 

$

1.17

 

 

$

0.52

 

Adjusted diluted earnings per common share (2)

$

0.42

 

 

$

0.38

 

 

$

0.28

 

 

$

1.35

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

33,752,500

 

 

$

33,831,217

 

 

$

33,562,028

 

 

$

33,665,738

 

 

$

35,333,488

 

Return on average assets ("ROAA") (3)

 

0.91

%

 

 

0.82

%

 

 

0.67

%

 

 

0.68

%

 

 

0.36

%

Adjusted ROAA (4)

 

0.91

%

 

 

0.82

%

 

 

0.67

%

 

 

0.77

%

 

 

0.50

%

 

(1)

 

Effective tax rates of 26.86%, 27.34%, and 24.76% used for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Effective tax rates of 26.86% and 24.76% used for the year ended December 31, 2025 and 2024.

(2)

 

Adjusted net earnings available to common and equivalent stockholders divided by weighted average diluted common shares outstanding.

(3)

 

Annualized net earnings divided by average assets.

(4)

 

Annualized adjusted net earnings divided by average assets.

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

Pre-Tax Pre-Provision Income

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Net interest income (GAAP)

$

251,362

 

$

253,444

 

$

235,285

 

$

977,386

 

$

926,050

Add: Noninterest income (GAAP)

 

41,571

 

 

 

34,285

 

 

 

28,989

 

 

 

142,139

 

 

 

77,145

 

Total revenues (GAAP)

 

292,933

 

 

 

287,729

 

 

 

264,274

 

 

 

1,119,525

 

 

 

1,003,195

 

Less: Noninterest expense (GAAP)

 

180,644

 

 

 

185,684

 

 

 

181,370

 

 

 

735,850

 

 

 

791,740

 

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

$

112,289

 

 

$

102,045

 

 

$

82,904

 

 

$

383,675

 

 

$

211,455

 

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

Efficiency Ratio

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

(Dollars in thousands)

Noninterest expense

$

180,644

 

 

$

185,684

 

 

$

181,370

 

 

$

735,850

 

 

$

791,740

 

Less: Intangible asset amortization

 

(6,788

)

 

 

(7,160

)

 

 

(7,770

)

 

 

(28,267

)

 

 

(33,143

)

Less: Acquisition, integration, and reorganization costs

 

—

 

 

 

—

 

 

 

1,023

 

 

 

—

 

 

 

14,183

 

Noninterest expense used for efficiency ratio

$

173,856

 

 

$

178,524

 

 

$

174,623

 

 

$

707,583

 

 

$

772,780

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

251,362

 

 

$

253,444

 

 

$

235,285

 

 

$

977,386

 

 

$

926,050

 

Noninterest income

 

41,571

 

 

 

34,285

 

 

 

28,989

 

 

 

142,139

 

 

 

77,145

 

Total revenue

 

292,933

 

 

 

287,729

 

 

 

264,274

 

 

 

1,119,525

 

 

 

1,003,195

 

Add: Loss on sale of securities

 

—

 

 

 

—

 

 

 

454

 

 

 

—

 

 

 

60,400

 

Total revenue used for efficiency ratio

$

292,933

 

 

$

287,729

 

 

$

264,728

 

 

$

1,119,525

 

 

$

1,063,595

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense to total revenue

 

61.67

%

 

 

64.53

%

 

 

68.63

%

 

 

65.73

%

 

 

78.92

%

Efficiency ratio (1)

 

59.35

%

 

 

62.05

%

 

 

65.96

%

 

 

63.20

%

 

 

72.66

%

 

(1)

 

Noninterest expense used for efficiency ratio divided by total revenue used for efficiency ratio.

 

BANC OF CALIFORNIA, INC.

NON-GAAP MEASURES

(UNAUDITED)

 

December 31,

 

September 30,

Economic Coverage Ratio

 

2025

 

 

 

2025

 

 

(Dollars in thousands)

Allowance for credit losses ("ACL")

$

280,533

 

 

$

270,722

 

Add: Unearned credit mark from purchase accounting (1)

 

15,865

 

 

 

17,496

 

Add: Credit-linked notes (2)

 

108,413

 

 

 

110,539

 

Adjusted allowance for credit losses

$

404,811

 

 

$

398,757

 

 

 

 

 

Loans and leases held for investment

$

25,032,679

 

 

$

24,110,642

 

 

 

 

 

ACL to loans and leases held for investment (3)

 

1.12

%

 

 

1.12

%

Economic coverage ratio (4)

 

1.62

%

 

 

1.65

%

 

(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 held for investment.

(4)

 

Adjusted allowance for credit losses divided by loans and leases held for investment.

 

Investor Relations Inquiries:
Banc of California, Inc.
(855) 361-2262
Jared Wolff, (310) 424-1230
Joe Kauder, (310) 844-5224
Ann DeVries, (646) 376-7011

Media Contact:
Debora Vrana, Banc of California
(213) 533-3122
Deb.Vrana@bancofcal.com

Source: Banc of California, Inc.