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Banc of California, Inc. Reports Second Quarter Results and 9% Annualized Loan Growth
Company Release – 7/23/2025
$0.12
Earnings Per Share

$0.31
Adjusted Earnings
 Per Share(1)
$18.58
Book Value Per Share

$16.46
Tangible Book Value
Per Share(1)

9.92%
CET1 Ratio


9%
Annualized Loan Growth

LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the second quarter ended June 30, 2025. The Company reported net earnings available to common and equivalent stockholders of $18.4 million, or $0.12 per diluted common share, for the second quarter of 2025. On an adjusted basis, net earnings available to common and equivalent stockholders were $48.4 million for the quarter, or $0.31 per diluted common share.(1) This compares to net earnings available to common and equivalent stockholders of $43.6 million, or $0.26 per diluted common share, for the first quarter of 2025. The second quarter included provision expense, net of tax, of an additional $20.2 million taken during the quarter as a result of transferring $506.7 million of loans to held for sale at their estimated fair value. The second quarter also included a one-time non-cash income tax expense of $9.8 million primarily due to the revaluation of deferred tax assets related to California state tax changes passed as part of the 2025 California budget.
Second Quarter of 2025 Financial Highlights:
•Total revenue of $272.8 million increased 3% and pre-tax pre-provision income of $87.0 million increased 6% from 1Q25 driven by solid loan growth combined with continued prudent expense management.
•Total loans of $24.7 billion increased by 2%, or 9% annualized, from 1Q25 driven by growth in lender finance, fund finance, and purchased single-family residential loans.
•Strong loan originations totaled $2.2 billion including production, purchased loans, and unfunded new commitments with a weighted average interest rate on production of 7.29%.
•Total deposits of $27.5 billion increased by 1%, and interest-bearing deposits of $20.1 billion increased by 2% from 1Q25.
•Net interest margin up 2 basis points vs 1Q25 to 3.10% driven by a higher average yield on loans and leases increasing by 3 basis points and flat cost of funds from 1Q25.
•Commenced sale process for $506.7 million of loans with expected proceeds net of reserve release of 95%. Completed sales for $30.5 million of such loans. The remaining $476.2 million was transferred to held for sale at a lower of cost or market value of $441.2 million.
•Credit quality metrics improved substantially primarily due to the transfer of loans to held for sale in connection with the pending strategic loan sales. Nonperforming, classified, and special mention loans and leases, as a percentage of total loans and leases held for investment, declined by 19 basis points, 46 basis points, and 115 basis points, respectively, from 1Q25.
•Results include $9.8 million of one-time non-cash income tax expense largely driven by the reevaluation of deferred tax assets due to California state tax changes enacted under the 2025 budget.
•Repurchases of 8.8 million shares of common stock at a weighted average price per share of $12.65, or $111.5 million in the aggregate, during the second quarter, and 11.5 million shares of common stock at a weighted average price per share of $13.05, or $150.0 million in the aggregate, in the first half of the year. As of June 30, 2025, the Company had $150.0 million remaining under the current stock repurchase authorization.
(1)Non-GAAP measure; refer to section 'Non-GAAP Measures'

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•Strong capital ratios(2) well above the regulatory thresholds for "well capitalized" banks, including an estimated 12.30% Tier 1 capital ratio and 9.92% CET 1 capital ratio and continued growth in book value per share to $18.58, up 2% vs 1Q25 and tangible book value per share(2) to $16.46, up 2% vs 1Q25.
(2)Capital ratios for June 30, 2025 are preliminary
•
Jared Wolff, President & CEO of Banc of California, commented, “Our second quarter results reflect the strength of our core earnings engine and our disciplined execution. We delivered double digit growth in adjusted earnings per share, our third consecutive quarter of strong loan growth, expanded net interest income, and grew pre-tax pre-provision profitability, all while proactively managing credit risk. The decisive actions we took to reposition a portion of our balance sheet—through the opportunistic sale of select CRE loans—have enhanced our credit profile and strengthened our balance sheet, positioning us to continue generating consistent and high quality earnings. We have increased tangible book value per share for five straight quarters. With a healthy capital base, improving credit metrics, and a robust pipeline of high-quality loan originations, we are confident in our ability to drive long-term value for our shareholders.”

Mr. Wolff continued, “Our second quarter results demonstrate our strong growth trajectory and our continued success growing market share in our key verticals. Our teams continue to work tirelessly to deliver strong results as they win new high quality relationships. As we look ahead, we expect to deliver durable, profitable growth through a combination of our strong market position, disciplined risk management, operational efficiency, and a relentless focus on serving our clients.”





































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INCOME STATEMENT HIGHLIGHTS
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
Summary Income Statement20252025202420252024
(In thousands)
Total interest income$420,509 $406,655 $462,589 $827,164 $941,293 
Total interest expense180,293 174,291 233,101 354,584 482,703 
Net interest income240,216 232,364 229,488 472,580 458,590 
Provision for credit losses39,100 9,300 11,000 48,400 21,000 
Gain on sale of loans30 211 1,135 241 687 
Other noninterest income32,603 33,439 28,657 66,042 62,921 
Total noninterest income32,633 33,650 29,792 66,283 63,608 
Total revenue272,849 266,014 259,280 538,863 522,198 
Acquisition, integration and
reorganization costs— — (12,650)— (12,650)
Other noninterest expense185,869 183,653 216,293 369,522 426,811 
Total noninterest expense185,869 183,653 203,643 369,522 414,161 
Earnings before income taxes47,880 73,061 44,637 120,941 87,037 
Income tax expense19,495 19,493 14,304 38,988 25,852 
Net earnings28,385 53,568 30,333 81,953 61,185 
Preferred stock dividends9,947 9,947 9,947 19,894 19,894 
Net earnings available to common
and equivalent stockholders$18,438 $43,621 $20,386 $62,059 $41,291 
Diluted earnings per share$0.12 $0.26 $0.12 $0.38 $0.25 
Net Interest Income and Margin
Q2-2025 vs Q1-2025
Net interest income increased by $7.9 million to $240.2 million for the second quarter from $232.4 million for the first quarter attributable primarily to the following:
•An increase of $16.2 million in interest income from loans due primarily to a higher average balance in the second quarter, higher day count, and higher average yield driven by higher yield on loan production.
This was offset partially by:
•An increase of $4.4 million in interest expense on deposits due primarily to higher average interest-bearing deposit balances in the second quarter and higher day count, offset partially by lower interest rates.
•A decrease of $2.1 million in interest income from deposits in financial institutions driven mainly by a lower average balance as cash was utilized to fund strong loan growth.
•An increase of $1.6 million in interest expense on our borrowings driven primarily by a higher average balance to support loan funding activity and higher day count.
The net interest margin was 3.10% for the second quarter, up 2 basis points from 3.08% for the first quarter primarily driven by a higher average yield on interest-earning assets. The average yield on interest-earning assets increased to 5.42% from 5.39%, reflecting a 3 basis point increase in the average yield on loans and leases to 5.93%, due to strong growth in higher yielding loan categories and new loan production at a higher weighted average rate of 7.29%. Average loans and leases also increased by $715.7 million to $24.5 billion, supported by strong loan growth.

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The average total cost of funds remained flat at 2.42% for the second quarter. The average cost of borrowings declined by 41 basis points to 4.93%, driven by the redemption of $174 million of 5.25% Senior Notes and replacement with lower-cost long-term Federal Home Loan Bank of San Francisco ("FHLB") borrowings at a weighted average rate of 3.81%. The average cost of deposits increased slightly to 2.13% from 2.12%. Average deposits increased by $384.0 million, with a $515.0 million increase in interest-bearing deposits, offset partially by a $130.9 million decline in noninterest-bearing deposits as the need to fund strong loan growth drove a mix shift towards interest-bearing deposits. Average noninterest-bearing deposits represented 27.8% of average total deposits in the second quarter and 28.7% in the first quarter.
Three Months EndedIncrease (Decrease)
June 30, 2025March 31, 2025QoQ
Summary InterestAverageInterestAverageAverage
Average BalanceAverageIncome/Yield/AverageIncome/Yield/AverageYield/
and Yield/Cost DataBalanceExpenseCostBalanceExpenseCostBalanceCost
(Dollars in thousands)
Assets:
Loans and leases(1)
$24,504,319 $362,303 5.93 %$23,788,647 $346,103 5.90 %$715,672 0.03 %
Investment securities4,719,954 37,616 3.20 %4,734,037 37,862 3.24 %(14,083)(0.04)%
Deposits in financial institutions1,872,736 20,590 4.41 %2,088,139 22,690 4.41 %(215,403)— %
Total interest-earning assets$31,097,009 $420,509 5.42 %$30,610,823 $406,655 5.39 %$486,186 0.03 %
Liabilities:
Noninterest-bearing demand
deposits$7,583,894 $7,714,830 $(130,936)
Total interest-bearing deposits19,721,040 $144,940 2.95 %19,206,084 $140,530 2.97 %514,956 (0.02)%
Total deposits$27,304,934 144,940 2.13 %$26,920,914 140,530 2.12 %$384,020 0.01 %
Total interest-bearing liabilities$22,296,364 $180,293 3.24 %$21,546,621 $174,291 3.28 %$749,743 (0.04)%
Net interest income(1)
$240,216 $232,364 
Net interest margin3.10 %3.08 %0.02 %
Total funds(2)
$29,880,258 $180,293 2.42 %$29,261,451 $174,291 2.42 %$618,807 — %
______________
(1) Includes net loan discount accretion of $16.1 million and $16.0 million for the three months ended June 30, 2025 and March 31, 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.

YTD June 30, 2025 vs YTD June 30, 2024
Net interest income increased by $14.0 million to $472.6 million for the six months ended June 30, 2025 from $458.6 million for the six months ended June 30, 2024 attributable primarily to the following:
•A decrease of $95.4 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 100 basis points of federal funds rate cuts in the second half of 2024 and lower average balance due mainly to the paydown of brokered deposits.
•A decrease of $30.0 million in interest expense on borrowings driven by lower average balance resulting from the payoff of higher-cost Bank Term Funding Program ("BTFP") borrowings in 2024, which were partially replaced with lower-cost long-term FHLB advances and lower market interest rates.
•An increase of $7.3 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 $65.9 million in interest income from loans due primarily to a lower average balance attributable mainly to the sale in July 2024 of $1.95 billion of Civic loans, lower net loan discount accretion, and lower market interest rates reflective of the federal funds rate cuts.

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•A decrease of $55.6 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.
The net interest margin was 3.09% for the six months ended June 30, 2025, up 36 basis points from 2.73% for the six months ended June 30, 2024. The year-over-year improvement was primarily driven by a 57 basis point decrease in the average total cost of funds to 2.42%, offset partially by a 19 basis point decrease in the average yield on interest-earning assets to 5.41%.
The average total cost of funds decreased by 57 basis points to 2.42%, driven by lower market interest rates and a shift in mix. The average cost of deposits declined 51 basis points to 2.12%, reflecting the impact of federal funds rate cuts in the second half of 2024. Average total deposits decreased by $2.0 billion year over year, including a $1.9 billion reduction in average interest-bearing deposits and a $134.3 million decrease in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.2% of average total deposits for the six months ended June 30, 2025 compared to 26.7% for the comparable period in 2024. The average cost of borrowings also decreased by 49 basis points to 5.12%, reflecting the paydown of higher-cost BTFP borrowings in the prior year and their replacement with lower-cost long-term FHLB advances.
The average yield on interest-earning assets declined 19 basis points to 5.41%, primarily due to a 101 basis point decrease in the average yield on deposits in financial institutions, and a 21 basis point decline in average yield on loans and leases, offset partially by a 30 basis point increase in the average yield on investment securities. The average yield on deposits in financial institutions decreased to 4.41% from 5.42% driven by the federal funds rate cuts described above, while the average yield on loans and leases decreased to 5.92% from 6.13%, driven by lower net loan discount accretion and market rates. The average yield on investment securities increased to 3.22% from 2.92%, reflecting continued benefits from 2024 balance sheet repositioning actions and reinvestment in higher-yield assets. Average deposits in financial institutions decreased by $1.7 billion to $2.0 billion, as we maintained a lower cash position.
Six Months EndedIncrease (Decrease)
June 30, 2025June 30, 2024YoY
Summary InterestAverageInterestAverageAverage
Average BalanceAverageIncome/Yield/AverageIncome/Yield/AverageYield/
and Yield/Cost DataBalanceExpenseCostBalanceExpenseCostBalanceCost
(Dollars in thousands)
Assets:
Loans and leases(1)
$24,148,460 $708,406 5.92 %$25,422,084 $774,318 6.13 %$(1,273,624)(0.21)%
Investment securities4,726,957 75,478 3.22 %4,690,123 68,139 2.92 %36,834 0.30 %
Deposits in financial institutions1,979,843 43,280 4.41 %3,667,630 98,836 5.42 %(1,687,787)(1.01)%
Total interest-earning assets$30,855,260 $827,164 5.41 %$33,779,837 $941,293 5.60 %$(2,924,577)(0.19)%
Liabilities:
Noninterest-bearing demand
deposits$7,649,000 $7,783,324 $(134,324)
Total interest-bearing deposits19,464,984 $285,470 2.96 %21,339,422 $380,913 3.59 %(1,874,438)(0.63)%
Total deposits$27,113,984 285,470 2.12 %$29,122,746 380,913 2.63 %$(2,008,762)(0.51)%
Total interest-bearing liabilities$21,923,564 $354,584 3.26 %$24,730,111 $482,703 3.93 %$(2,806,547)(0.67)%
Net interest income(1)
$472,580 $458,590 
Net interest margin3.09 %2.73 %0.36 %
Total funds(2)
$29,572,564 $354,584 2.42 %$32,513,435 $482,703 2.99 %$(2,940,871)(0.57)%
______________
(1) Includes net loan discount accretion of $32.1 million and $44.3 million for the six months ended June 30, 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.

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Provision For Credit Losses
Q2-2025 vs Q1-2025
The provision for credit losses was $39.1 million for the second quarter compared to $9.3 million for the first quarter. The second quarter provision included a provision of loan losses of $38.6 million, offset partially by a $0.4 million reversal of the provision for unfunded loan commitments, and a provision for credit losses on investment securities of $0.9 million.
The second quarter provision of loan losses included $26.3 million related to loans transferred to held for sale ("HFS") for the pending strategic loan sales. The remaining $12.3 million increase in provision for loan losses was primarily driven by net charge-off activity experienced during the quarter, an increase in the quantitative reserve driven by the updated economic forecast, and an increase in the qualitative reserve related to loans secured by office properties.
The first quarter provision included a $9.7 million provision for loan losses and a $0.5 million provision for unfunded loan commitments, offset partially by a $0.9 million reversal of the provision for credit losses related to investment securities. The first quarter provision for loans and unfunded loan commitments was primarily driven by net charge-off activity experienced during the quarter, offset partially by lower specific reserves and changes in portfolio mix driven by growth in loan segments with low expected credit losses.
YTD June 30, 2025 vs YTD June 30, 2024
The provision for credit losses was $48.4 million for the six months ended June 30, 2025 compared to $21.0 million for the six months ended June 30, 2024. The provision for the 2025 period primarily included a provision for loan losses of $48.3 million and a provision for unfunded loan commitments of $0.2 million.
The provision for the 2025 period included $26.3 million related to loans transferred to HFS. The remaining increase in the provision for loans and unfunded loan commitments was primarily driven by net charge-off activity experienced in the first half of the year, with additional impacts from risk rating migration activity. These were offset partially by lower specific reserves and a favorable shift in the portfolio mix due to growth in loan segments with lower expected credit losses.
The provision for loans and unfunded loan commitments for the 2024 period included a $23.0 million provision for loan losses and a $2.0 million reversal of the provision for unfunded loan commitments. The provision for the 2024 period was generally due to higher net charge-offs and higher qualitative reserves, offset partially by the reserves released for the Civic loans transferred to HFS in the second quarter of 2024.
Noninterest Income
Q2-2025 vs Q1-2025
Noninterest income decreased by $1.0 million to $32.6 million for the second quarter from $33.7 million for the first quarter due mainly to a $2.4 million decrease in dividends and gains on equity investments, offset partially by a $1.5 million increase in warrant income. The decrease in dividends and gains on equity investments was primarily related to fair value losses in the second quarter on Small Business Investment Company (“SBIC”) investments compared to fair value gains in the first quarter. The increase in warrant income was driven by higher gains from warrant exercises.
YTD June 30, 2025 vs YTD June 30, 2024
Noninterest income increased by $2.7 million to $66.3 million for the six months ended June 30, 2025 from $63.6 million for the six months ended June 30, 2024 due mainly to increases of $4.0 million in other income and $2.8 million in commissions and fees, offset partially by decreases of $2.2 million in leased equipment income and $2.0 million in dividends and gains on equity investments. The increase in other income was due mainly to a $2.6 million increase in the fair value mark on the credit-linked notes and a $1.1 million increase in gain on termination of leases. The increase in commissions and fees was due principally to higher loan-related fee income and higher customer service fees. The decrease in dividends and gains on equity investments was due mostly to lower fair value net gains in the first half of 2025 on SBIC investments compared to the same period in 2024.


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Noninterest Expense
Q2-2025 vs Q1-2025
Noninterest expense increased by $2.2 million to $185.9 million for the second quarter from $183.7 million for the first quarter due mainly to increases of $2.1 million in insurance and assessments and $1.9 million in compensation expense, offset partially by a decrease of $2.0 million in information technology and data processing expenses. Insurance assessments increased mainly due to lower FDIC assessment and FDIC expense true-ups in the first quarter. Compensation expense increased mainly driven by higher incentive and equity compensation reversals related to staff exits in the prior quarter. Information technology and data processing decreased mainly driven by lower software subscription costs and certain expense true-ups.
YTD June 30, 2025 vs YTD June 30, 2024
Noninterest expense decreased by $44.6 million to $369.5 million for the six-month period ended June 30, 2025 due mainly to decreases of $30.2 million in insurance and assessments, $9.0 million in customer related expenses, $4.9 million in occupancy, $3.4 million in compensation expense, and $13.1 million in all of the other expense categories, offset partially by an increase of $12.7 million in acquisition, integration and reorganization costs, as the prior-year period included a reversal of previously accrued merger-related costs due to lower actual expenses and there are no merger-related costs in the current year. Insurance and assessment decreased primarily due to incremental FDIC special assessments recorded in the first quarter of 2024, resulting from higher assessment rates. Customer related expense decreased due to lower earnings credit rate expenses, which were impacted by the lower federal funds rate. Occupancy decreased reflecting cost savings from branch consolidations following the merger. Compensation expense decreased primarily driven by reduced headcount following the merger.
Income Taxes
Q2-2025 vs Q1-2025
Income tax expense of $19.5 million was recorded for the second quarter resulting in an effective tax rate of 40.7% compared to income tax expense of $19.5 million and an effective tax rate of 26.7% for the first quarter.
The 40.7% effective tax rate in the second quarter of 2025 included a one-time non-cash income tax expense of $9.8 million due primarily to the revaluation of deferred tax assets ("DTA") 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. We expect our tax rate going forward to be positively impacted by this state tax rule change.
YTD June 30, 2025 vs YTD June 30, 2024
Income tax expense of $39.0 million was recorded for the six-month period ended June 30, 2025 resulting in an effective tax rate of 32.2% compared to income tax expense of $25.9 million and an effective tax rate of 29.7% for the comparable period in 2024. The higher 2025 year-to-date effective tax rate was due primarily to the one-time non-cash tax expense DTA revaluation recorded in the second quarter of 2025.



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BALANCE SHEET HIGHLIGHTS
June 30,March 31,June 30,Increase (Decrease)
Selected Balance Sheet Items202520252024QoQYoY
(In thousands)
Cash and cash equivalents$2,353,552 $2,343,889 $2,698,810 $9,663 $(345,258)
Securities available-for-sale2,246,174 2,334,058 2,244,031 (87,884)2,143 
Securities held-to-maturity2,316,725 2,311,912 2,296,708 4,813 20,017 
Loans held for sale465,571 25,797 1,935,455 439,774 (1,469,884)
Loans and leases held for investment24,245,893 24,126,527 23,228,909 119,366 1,016,984 
Total loans24,711,464 24,152,324 25,164,364 559,140 (452,900)
Total assets34,250,453 33,779,918 35,243,839 470,535 (993,386)
Noninterest-bearing deposits$7,441,116 $7,593,950 $7,825,007 $(152,834)$(383,891)
Total deposits27,528,433 27,193,191 28,804,450 335,242 (1,276,017)
Borrowings1,917,180 1,670,782 1,440,875 246,398 476,305 
Total liabilities30,823,610 30,258,262 31,835,991 565,348 (1,012,381)
Total stockholders' equity3,426,843 3,521,656 3,407,848 (94,813)18,995 
Securities
Securities available-for-sale ("AFS") decreased by $87.9 million during the second quarter to $2.2 billion at June 30, 2025. The decrease was primarily driven by $109.3 million of principal paydowns, $2.5 million of maturities, and $1.8 million of net amortization, offset partially by $18.3 million of purchases and an $8.2 million increase in the fair value of AFS securities. As of June 30, 2025, AFS securities had aggregate unrealized net after-tax losses in accumulated other comprehensive income (loss) ("AOCI") of $166.6 million. These AFS unrealized net losses related primarily to slightly lower interest rates quarter-over-quarter and the resulting impact on valuations.
The balance of securities held-to-maturity ("HTM") increased by $4.8 million in the second quarter to $2.3 billion at June 30, 2025. As of June 30, 2025, HTM securities had aggregate unrealized net after-tax losses in AOCI of $145.9 million remaining from the balance established at the time of transfer from AFS.



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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:
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
(Dollars in thousands)
Composition of Loans and Leases
Real estate mortgage:
Commercial$4,369,401 $4,489,543 $4,578,772 $4,557,939 $4,722,585 
Multi-family6,280,791 6,216,084 6,041,713 6,009,280 5,984,930 
Other residential3,157,616 2,787,031 2,807,174 2,767,187 2,866,085 
Total real estate mortgage13,807,808 13,492,658 13,427,659 13,334,406 13,573,600 
Real estate construction and land:
Commercial381,449 733,684 799,131 836,902 784,166 
Residential1,920,642 2,127,354 2,373,162 2,622,507 2,573,431 
Total real estate construction and land2,302,091 2,861,038 3,172,293 3,459,409 3,357,597 
Total real estate16,109,899 16,353,696 16,599,952 16,793,815 16,931,197 
Commercial:
Asset-based2,462,351 2,305,325 2,087,969 2,115,311 1,968,713 
Venture capital2,002,601 1,733,074 1,537,776 1,353,626 1,456,122 
Other commercial3,288,305 3,340,400 3,153,084 2,850,535 2,446,974 
Total commercial7,753,257 7,378,799 6,778,829 6,319,472 5,871,809 
Consumer382,737 394,032 402,882 414,490 425,903 
Total loans and leases held for
investment$24,245,893 $24,126,527 $23,781,663 $23,527,777 $23,228,909 
Total unfunded loan commitments$4,673,596 $4,858,960 $4,887,690 $5,008,449 $5,256,473 
Composition as % of Total
 Loans and Leases
Real estate mortgage:
Commercial18 %19 %19 %19 %20 %
Multi-family26 %26 %26 %25 %26 %
Other residential13 %11 %12 %12 %12 %
Total real estate mortgage57 %56 %57 %56 %58 %
Real estate construction and land:
Commercial1 %3 %3 %4 %4 %
Residential8 %9 %10 %11 %11 %
Total real estate construction and land9 %12 %13 %15 %15 %
Total real estate66 %68 %70 %71 %73 %
Commercial:
Asset-based10 %9 %9 %9 %8 %
Venture capital8 %7 %6 %6 %6 %
Other commercial14 %14 %13 %12 %11 %
Total commercial32 %30 %28 %27 %25 %
Consumer2 %2 %2 %2 %2 %
Total loans and leases held for
investment100 %100 %100 %100 %100 %

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Total loans and leases held for investment increased by $119.4 million in the second quarter and totaled $24.2 billion at June 30, 2025. The increase in loans and leases held for investment was due primarily to increased balances in the other residential real estate mortgage, venture capital, and asset-based loan portfolios, offset partially by decreases in the real estate construction and land segment and the commercial real estate mortgage loan portfolio partly driven by the transfer of loans to held for sale. In the second quarter, $30.5 million of loans were sold and $476.2 million transferred to held for sale at a lower of cost or market value of $441.2 million. While many of the loans being sold have sufficient collateral values, they have attributes that drive credit migration, and as a result we have commenced sales process for these loans. Loan originations including production, purchased loans, and unfunded new commitments were $2.2 billion in the second quarter with a weighted average interest rate on production of 7.29%.
Total loans and leases held for sale increased by $439.8 million in the second quarter and totaled $465.6 million at June 30, 2025. The increase in loans held for sale was primarily driven by the transfer as discussed above related to pending strategic loan sales commenced in the second quarter.
Credit Quality
June 30,March 31,December 31,September 30,June 30,
Asset Quality Information and Ratios20252025202420242024
(Dollars in thousands)
Delinquent loans and leases held for
investment:
30 to 89 days delinquent$53,900 $100,664 $91,347 $52,927 $27,962 
90+ days delinquent95,566 99,976 88,846 72,037 55,792 
Total delinquent loans and leases$149,466 $200,640 $180,193 $124,964 $83,754 
Total delinquent loans and leases to
loans and leases held for investment0.62 %0.83 %0.76 %0.53 %0.36 %
Nonperforming assets, excluding loans
held for sale:
Nonaccrual loans and leases$167,516 $213,480 $189,605 $168,341 $117,070 
90+ days delinquent loans and still
accruing — — — — — 
Total nonperforming loans and
leases ("NPLs")167,516 213,480 189,605 168,341 117,070 
Foreclosed assets, net7,806 5,474 9,734 8,661 13,302 
Total nonperforming assets ("NPAs")$175,322 $218,954 $199,339 $177,002 $130,372 
Classified loans and leases held for
investment$656,556 $764,723 $563,502 $533,591 $415,498 
Special mention loans and leases held for
investment$661,568 $937,014 $1,097,315 $711,888 $680,663 
Allowance for loan and lease losses$229,344 $234,986 $239,360 $254,345 $247,762 
Allowance for loan and lease losses
to NPLs136.91 %110.07 %126.24 %151.09 %211.64 %
NPLs to loans and leases held for
investment0.69 %0.88 %0.80 %0.72 %0.50 %
NPAs to total assets0.51 %0.65 %0.59 %0.53 %0.37 %
Classified loans and leases to loans
and leases held for investment2.71 %3.17 %2.37 %2.27 %1.79 %
Special mention loans and leases to loans
and leases held for investment2.73 %3.88 %4.61 %3.03 %2.93 %




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The overall quality of our loan portfolio remains strong, supported by disciplined underwriting, borrower strength, and robust credit metrics. Credit quality metrics improved from the first quarter, primarily due to the transfer of loans to HFS in connection with the pending strategic loan sales. These sales and transfers contributed to broad-based improvements across key credit quality metrics. Nonperforming, classified, and special mention loans and leases as a percentage of total loans and leases held for investment decreased 19 basis points, 46 basis points, and 115 basis points, respectively.
At June 30, 2025, total delinquent loans and leases were $149.5 million, compared to $200.6 million at March 31, 2025. The $51.2 million decrease in total delinquent loans was due mainly to a decrease in the 30 to 89 days delinquent category of $48.9 million in commercial real estate mortgage loans, offset partially by an increase of $5.7 million in other residential real estate mortgage loans. In the 90 or more days delinquent category, there were decreases of $8.4 million in other residential real estate mortgage loans and $3.8 million in other commercial loans, offset partially by an increase of $9.0 million in commercial real estate mortgage loans. Total delinquent loans and leases as a percentage of loans and leases held for investment decreased to 0.62% at June 30, 2025 from 0.83% at March 31, 2025.
At June 30, 2025, nonperforming loans and leases were $167.5 million, compared to $213.5 million at March 31, 2025. During the second quarter, nonperforming loans and leases decreased by $46.0 million due to transfers to accrual status of $16.3 million, charge-offs of $7.2 million, transfers to loans HFS of $5.7 million, and payoffs and paydowns of $29.3 million, offset partially by additions of $12.5 million.
Nonperforming loans and leases as a percentage of loans and leases held for investment decreased to 0.69% at June 30, 2025 from 0.88% at March 31, 2025.
At June 30, 2025, nonperforming assets were $175.3 million, or 0.51% of total assets, compared to $219.0 million, or 0.65% of total assets, as of March 31, 2025. At June 30, 2025, nonperforming assets included $7.8 million of foreclosed assets, consisting primarily of single-family residences.


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Allowance for Credit Losses – Loans
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
Allowance for Credit Losses - Loans20252025202420252024
(Dollars in thousands)
Allowance for loan and lease losses
("ALLL"):
Balance at beginning of period$234,986 $239,360 $291,503 $239,360 $281,687 
Charge-offs(46,948)(16,551)(58,070)(63,499)(63,084)
Recoveries2,726 2,477 2,329 5,203 6,159 
Net charge-offs(44,222)(14,074)(55,741)(58,296)(56,925)
Provision for loan losses38,580 9,700 12,000 48,280 23,000 
Balance at end of period$229,344 $234,986 $247,762 $229,344 $247,762 
Reserve for unfunded loan commitments
("RUC"):
Balance at beginning of period$29,571 $29,071 $28,571 $29,071 $29,571 
Provision for credit losses(350)500 (1,000)150 (2,000)
Balance at end of period$29,221 $29,571 $27,571 $29,221 $27,571 
Allowance for credit losses ("ACL") -
Loans:
Balance at beginning of period$264,557 $268,431 $320,074 $268,431 $311,258 
Charge-offs(46,948)(16,551)(58,070)(63,499)(63,084)
Recoveries2,726 2,477 2,329 5,203 6,159 
Net charge-offs(44,222)(14,074)(55,741)(58,296)(56,925)
Provision for credit losses38,230 10,200 11,000 48,430 21,000 
Balance at end of period$258,565 $264,557 $275,333 $258,565 $275,333 
ALLL to loans and leases held for
investment0.95 %0.97 %1.07 %0.95 %1.07 %
ACL to loans and leases held for
investment1.07 %1.10 %1.19 %1.07 %1.19 %
ACL to NPLs154.35 %123.93 %235.19 %154.35 %235.19 %
ACL to NPAs147.48 %120.83 %211.19 %147.48 %211.19 %
Annualized net charge-offs to average
loans and leases0.72 %0.24 %0.89 %0.49 %0.45 %
The allowance for credit losses - loans, which includes the reserve for unfunded loan commitments, totaled $258.6 million, or 1.07% of total loans and leases, at June 30, 2025, compared to $264.6 million, or 1.10% of total loans and leases, at March 31, 2025. The $6.0 million decrease in the allowance was due to net charge-offs of $44.2 million, offset partially by a $38.2 million provision.
During the second quarter, $506.7 million of loans were either sold or transferred to HFS in anticipation of being sold. As a result of the transfer, we recognized charge-offs totaling $36.9 million. When taking into consideration the reserve associated with these loans at March 31, 2025, the second quarter provision impact from the transfer was $26.3 million.
During the second quarter, we also recorded a provision of $11.9 million that consisted of a $12.3 million provision associated with the ALLL, offset partially by a $0.4 million reversal of the RUC commitments.


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At June 30, 2025, ACL ratio was 1.07% compared to 1.10% at March 31, 2025. The decrease in the ACL coverage ratio was driven by the transfer of loans to HFS which improved the overall credit metrics of the portfolio, lower specific reserves, and improved portfolio mix driven by growth in loan segments with lower expected credit losses.
Our ability to absorb credit losses is also bolstered by (i) $112.9 million of loss coverage from the credit-linked notes, pursuant to which the bank sold the first 5% of any losses on $2.3 billion of single-family residential mortgage loans in our portfolio; and (ii) unearned credit marks of $19.2 million on approximately $1.5 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 1.61% of total loans and leases at June 30, 2025 compared to 1.66% at March 31, 2025.
The ACL coverage of nonperforming loans and leases was 154% at June 30, 2025 compared to 124% at March 31, 2025.
Net charge-offs were 0.72% of average loans and leases (annualized) for the second quarter, compared to 0.24% for the first quarter. The increase in the second quarter was primarily attributable to $36.9 million of net charge-offs from loans transferred to HFS for the pending sale.
(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:
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
(Dollars in thousands)
Composition of Deposits
Noninterest-bearing checking$7,441,116 $7,593,950 $7,719,913 $7,811,796 $7,825,007 
Interest-bearing:
Checking7,974,452 7,747,051 7,610,705 7,539,899 7,309,833 
Money market5,375,080 5,367,788 5,361,635 5,039,607 4,837,025 
Savings1,932,906 1,999,062 1,933,232 1,992,364 2,040,461 
Time deposits:
Non-brokered 2,492,890 2,490,639 2,488,217 2,451,340 2,758,067 
Brokered 2,311,989 1,994,701 2,078,207 1,993,263 4,034,057 
Total time deposits4,804,879 4,485,340 4,566,424 4,444,603 6,792,124 
Total interest-bearing20,087,317 19,599,241 19,471,996 19,016,473 20,979,443 
Total deposits$27,528,433 $27,193,191 $27,191,909 $26,828,269 $28,804,450 
Composition as % of
Total Deposits
Noninterest-bearing checking27 %28 %28 %29 %27 %
Interest-bearing:
Checking29 %29 %28 %28 %25 %
Money market20 %20 %20 %19 %17 %
Savings7 %7 %7 %7 %7 %
Time deposits:
Non-brokered9 %9 %9 %9 %10 %
Brokered8 %7 %8 %8 %14 %
Total time deposits17 %16 %17 %17 %24 %
Total interest-bearing73 %72 %72 %71 %73 %
Total deposits100 %100 %100 %100 %100 %

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Total deposits increased by $335.2 million to $27.5 billion at June 30, 2025 from $27.2 billion at March 31, 2025 driven by an increase in interest-bearing deposits of $488.1 million, offset partially by a decrease in noninterest-bearing deposits of $152.8 million. Interest-bearing deposits increased due mainly to higher brokered time deposits of $317.3 million and higher checking accounts of $227.4 million, offset partially by lower savings accounts of $66.2 million.
Noninterest-bearing checking totaled $7.4 billion and represented 27% of total deposits at June 30, 2025, compared to $7.6 billion, or 28% of total deposits, at March 31, 2025.
Uninsured and uncollateralized deposits of $7.6 billion represented 27% of total deposits at June 30, 2025 compared to uninsured and uncollateralized deposits of $7.4 billion, or 27% of total deposits, at March 31, 2025.
In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for select clients to invest excess liquidity. These off-balance sheet client funds totaled $1.5 billion as of June 30, 2025, compared to $1.6 billion as of March 31, 2025.
These alternative options include investments managed by BofCal Asset Management Inc. (“BAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds were $1.5 billion as of June 30, 2025, of which $718.4 million was managed by BAM.
Borrowings
Borrowings increased by $246.4 million to $1.9 billion at June 30, 2025 from $1.7 billion at March 31, 2025 mainly due to higher FHLB borrowings of $320.0 million and higher short-term borrowings of $100.0 million, offset partially by the payoff of $174.0 million of Senior Notes. Long-term FHLB advances of $400.0 million were opportunistically added during the quarter at a weighted average rate of 3.81%.
Equity
During the second quarter, total stockholders’ equity decreased by $94.8 million to $3.4 billion and tangible common equity(1) decreased by $87.8 million to $2.6 billion at June 30, 2025. The decrease in total stockholders’ equity for the second quarter resulted primarily from the repurchase of common stock of $111.5 million and common and preferred stock dividends of $26.2 million, offset partially by net earnings of $28.4 million and a decrease in the unrealized after-tax net loss in AOCI for AFS and HTM securities of $11.9 million.
At June 30, 2025, book value per common share increased to $18.58 compared to $18.17 at March 31, 2025, and tangible book value per common share(1) increased to $16.46 compared to $16.12 at March 31, 2025.
During the second quarter of 2025, common stock repurchased under the Company's stock repurchase program totaled 8,809,814 shares at a weighted average price per share of $12.65, or $111.5 million in the aggregate. For the six months ended June 30, 2025, repurchases of Company common stock totaled 11,494,637 shares at a weighted average price per share of $13.05, or $150.0 million in the aggregate. As of June 30, 2025, the Company had $150.0 million remaining under the current stock repurchase authorization.
(1) Non-GAAP measure; refer to section 'Non-GAAP Measures'
•

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CAPITAL AND LIQUIDITY
Capital ratios remain strong with total risk-based capital at 16.32% and a tier 1 leverage ratio of 9.74% at June 30, 2025.
The following table sets forth our regulatory capital ratios as of the dates indicated:
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio16.32 %16.93 %17.05 %17.00 %16.57 %
Tier 1 risk-based capital ratio12.30 %12.86 %12.97 %12.88 %12.62 %
Common equity tier 1 capital ratio9.92 %10.45 %10.55 %10.46 %10.27 %
Tier 1 leverage ratio9.74 %10.19 %10.15 %9.83 %9.51 %
Banc of California
Total risk-based capital ratio15.60 %16.22 %16.65 %16.61 %16.19 %
Tier 1 risk-based capital ratio13.17 %13.74 %14.17 %14.08 %13.77 %
Common equity tier 1 capital ratio13.17 %13.74 %14.17 %14.08 %13.77 %
Tier 1 leverage ratio10.42 %10.88 %11.08 %10.74 %10.38 %
______________
(1) June 30, 2025 capital ratios are preliminary.

At June 30, 2025, cash and cash equivalents increased by $9.7 million to $2.4 billion from $2.3 billion at March 31, 2025.
Our immediately available cash and cash equivalents (excluding restricted cash) were $2.2 billion. Combined with total available borrowing capacity of $10.6 billion and unpledged AFS securities of $2.1 billion, total available liquidity was $14.8 billion at the end of the second quarter.


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Conference Call
The Company will host a conference call to discuss its second quarter 2025 financial results at 10:00 a.m. Pacific Time (PT) on Thursday, July 24, 2025. Interested parties are welcome to attend the conference call by dialing (888) 317-6003 and referencing event code 7565369. A live audio webcast will also be available, and the webcast link will be posted on the Company’s Investor Relations website at www.bancofcal.com/investor. The slide presentation for the call will also be available on the Company's Investor Relations website prior to the call. A replay of the call will be made available approximately one hour after the call has ended on the Company’s Investor Relations website at www.bancofcal.com/investor or by dialing (877) 344-7529 and referencing event code 6113846.
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 80 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The bank also provides full-stack payment processing solutions through its subsidiary, Deepstack Technologies, and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The bank is committed to its local communities through the Banc of California Charitable Foundation, and by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more. 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 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.

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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.


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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.


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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
June 30,March 31,December 31,September 30,June 30,
20252025202420242024
ASSETS:(Dollars in thousands)
Cash and due from banks$222,210 $215,591 $192,006 $251,869 $203,467 
Interest-earning deposits in financial
institutions2,131,342 2,128,298 2,310,206 2,302,358 2,495,343 
Total cash and cash equivalents 2,353,552 2,343,889 2,502,212 2,554,227 2,698,810 
Securities available-for-sale2,246,174 2,334,058 2,246,839 2,300,284 2,244,031 
Securities held-to-maturity2,316,725 2,311,912 2,306,149 2,301,263 2,296,708 
FRB and FHLB stock162,243 155,330 147,773 145,123 132,380 
   Total investment securities4,725,142 4,801,300 4,700,761 4,746,670 4,673,119 
Loans held for sale465,571 25,797 26,331 28,639 1,935,455 
Loans and leases held for investment24,245,893 24,126,527 23,781,663 23,527,777 23,228,909 
Allowance for loan and lease losses(229,344)(234,986)(239,360)(254,345)(247,762)
Total loans and leases held for
investment, net24,016,549 23,891,541 23,542,303 23,273,432 22,981,147 
Equipment leased to others under
operating leases288,692 295,032 307,188 314,998 335,968 
Premises and equipment, net138,032 140,347 142,546 143,200 145,734 
Bank owned life insurance346,142 342,810 339,517 343,212 341,779 
Goodwill214,521 214,521 214,521 216,770 215,925 
Intangible assets, net118,930 125,937 132,944 140,562 148,894 
Deferred tax asset, net691,535 702,323 720,587 706,849 738,534 
Other assets891,787 896,421 913,954 964,054 1,028,474 
Total assets$34,250,453 $33,779,918 $33,542,864 $33,432,613 $35,243,839 
LIABILITIES:
Noninterest-bearing deposits$7,441,116 $7,593,950 $7,719,913 $7,811,796 $7,825,007 
Interest-bearing deposits20,087,317 19,599,241 19,471,996 19,016,473 20,979,443 
Total deposits27,528,433 27,193,191 27,191,909 26,828,269 28,804,450 
Borrowings1,917,180 1,670,782 1,391,814 1,591,833 1,440,875 
Subordinated debt949,213 944,908 941,923 942,151 939,287 
Accrued interest payable and other
liabilities428,784 449,381 517,269 574,162 651,379 
Total liabilities30,823,610 30,258,262 30,042,915 29,936,415 31,835,991 
STOCKHOLDERS' EQUITY:
Preferred stock498,516 498,516 498,516 498,516 498,516 
Common stock 1,474 1,561 1,586 1,586 1,583 
Class B non-voting common stock 5 5 5 5 5 
Non-voting common stock equivalents98 98 98 98 101 
Additional paid-in-capital3,609,109 3,732,376 3,785,725 3,802,314 3,813,312 
Retained deficit(369,142)(387,580)(431,201)(478,173)(477,010)
Accumulated other comprehensive
loss, net(313,217)(323,320)(354,780)(328,148)(428,659)
Total stockholders’ equity3,426,843 3,521,656 3,499,949 3,496,198 3,407,848 
Total liabilities and stockholders’
equity$34,250,453 $33,779,918 $33,542,864 $33,432,613 $35,243,839 
Common shares outstanding (1)
157,647,137 166,403,086 168,825,656 168,879,566 168,875,712 
______________
(1) Common shares outstanding include non-voting common stock equivalents that are participating securities.

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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
20252025202420252024
(In thousands, except per share amounts)
Interest income:
Loans and leases$362,303 $346,103 $388,853 $708,406 $774,318 
Investment securities37,616 37,862 33,836 75,478 68,139 
Deposits in financial institutions20,590 22,690 39,900 43,280 98,836 
Total interest income420,509 406,655 462,589 827,164 941,293 
Interest expense:
Deposits144,940 140,530 186,106 285,470 380,913 
Borrowings20,021 18,421 30,311 38,442 68,435 
Subordinated debt15,332 15,340 16,684 30,672 33,355 
Total interest expense180,293 174,291 233,101 354,584 482,703 
Net interest income240,216 232,364 229,488 472,580 458,590 
Provision for credit losses39,100 9,300 11,000 48,400 21,000 
Net interest income after provision
for credit losses201,116 223,064 218,488 424,180 437,590 
Noninterest income:
Service charges on deposit accounts4,456 4,543 4,540 8,999 9,245 
Commissions and fees9,641 9,958 8,629 19,599 16,771 
Leased equipment income10,231 10,784 11,487 21,015 23,203 
Gain on sale of loans and leases30 211 1,135 241 687 
Dividends and (losses) gains on equity investments(114)2,323 1,166 2,209 4,234 
Warrant income (loss) 1,227 (295)(324)932 (146)
LOCOM HFS adjustment(9)— (38)(9)292 
Other income7,171 6,126 3,197 13,297 9,322 
Total noninterest income 32,633 33,650 29,792 66,283 63,608 
Noninterest expense:
Compensation 88,362 86,417 85,914 174,779 178,150 
Occupancy15,473 15,010 17,455 30,483 35,423 
Information technology and data processing13,073 15,099 15,459 28,172 30,877 
Other professional services6,406 4,513 5,183 10,919 10,258 
Insurance and assessments9,403 7,283 26,431 16,686 46,892 
Intangible asset amortization7,159 7,160 8,484 14,319 16,888 
Leased equipment depreciation6,700 6,741 7,511 13,441 15,031 
Acquisition, integration and reorganization costs— — (12,650)— (12,650)
Customer related expense26,577 27,751 32,405 54,328 63,324 
Loan expense4,050 2,930 4,332 6,980 8,823 
Other expense8,666 10,749 13,119 19,415 21,145 
Total noninterest expense185,869 183,653 203,643 369,522 414,161 
Earnings before income taxes47,880 73,061 44,637 120,941 87,037 
Income tax expense 19,495 19,493 14,304 38,988 25,852 
Net earnings 28,385 53,568 30,333 81,953 61,185 
Preferred stock dividends9,947 9,947 9,947 19,894 19,894 
Net earnings available to common
and equivalent stockholders$18,438 $43,621 $20,386 $62,059 $41,291 
Earnings per common share:
Basic$0.12 $0.26 $0.12 $0.38 $0.25 
Diluted$0.12 $0.26 $0.12 $0.38 $0.25 
Weighted average number of common shares (1)
outstanding:
Basic158,354 168,495 168,432 163,396 168,287 
Diluted158,462 169,434 168,432 163,667 168,287 
______________
(1) Common shares outstanding include non-voting common stock equivalents that are participating securities.

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BANC OF CALIFORNIA, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
Profitability and Other Ratios20252025202420252024
Return on average assets (1)
0.34 %0.65 %0.34 %0.49 %0.34 %
Adjusted ROAA (1)(2)
0.69 %0.65 %0.34 %0.67 %0.36 %
Return on average equity (1)
3.32 %6.16 %3.59 %4.75 %3.63 %
Return on average tangible common
equity (1)(2)
3.70 %7.56 %4.42 %5.59 %4.30 %
Adjusted return on average tangible
common equity (1)(2)
8.34 %7.56 %4.42 %7.88 %4.57 %
Dividend payout ratio (3)
83.33 %36.46 %83.33 %52.63 %80.00 %
Average yield on loans and leases (1)
5.93 %5.90 %6.18 %5.92 %6.13 %
Average yield on interest-earning assets (1)
5.42 %5.39 %5.65 %5.41 %5.60 %
Average cost of interest-bearing deposits (1)2.95 %2.97 %3.58 %2.96 %3.59 %
Average total cost of deposits (1)
2.13 %2.12 %2.60 %2.12 %2.63 %
Average cost of interest-bearing liabilities (1)
3.24 %3.28 %3.93 %3.26 %3.93 %
Average total cost of funds (1)
2.42 %2.42 %2.95 %2.42 %2.99 %
Net interest spread 2.18 %2.11 %1.72 %2.15 %1.67 %
Net interest margin (1)
3.10 %3.08 %2.80 %3.09 %2.73 %
Noninterest income to total revenue (4)
11.96 %12.65 %11.49 %12.30 %12.18 %
Noninterest expense to average total
assets (1)
2.21 %2.24 %2.29 %2.22 %2.27 %
Noninterest expense to total revenue (4)68.12 %69.04 %78.54 %68.57 %79.31 %
Efficiency ratio (2)(5)65.50 %66.35 %80.15 %65.92 %78.50 %
Loans to deposits ratio89.77 %88.82 %87.36 %89.77 %87.36 %
Average loans and leases to average deposits89.74 %88.36 %87.95 %89.06 %87.29 %
Average investment securities to average
total assets13.98 %14.21 %13.00 %14.09 %12.78 %
Average stockholders' equity to average
total assets10.16 %10.58 %9.48 %10.37 %9.25 %
______________
(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.



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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Three Months Ended
June 30, 2025March 31, 2025June 30, 2024
InterestAverageInterestAverageInterestAverage
Average Income/Yield/Average Income/Yield/Average Income/Yield/
BalanceExpenseCostBalanceExpenseCostBalanceExpenseCost
(Dollars in thousands)
Assets:
Loans and leases (1)
$24,504,319 $362,303 5.93 %$23,788,647 $346,103 5.90 %$25,325,578 $388,853 6.18 %
Investment securities4,719,954 37,616 3.20 %4,734,037 37,862 3.24 %4,658,690 33,836 2.92 %
Deposits in financial
institutions1,872,736 20,590 4.41 %2,088,139 22,690 4.41 %2,960,292 39,900 5.42 %
Total interest-earning
assets31,097,009 420,509 5.42 %30,610,823 406,655 5.39 %32,944,560 462,589 5.65 %
Other assets2,667,140 2,697,562 2,889,907 
Total assets$33,764,149 $33,308,385 $35,834,467 
Liabilities and
Stockholders' Equity:
Interest checking$7,778,882 52,877 2.73 %$7,343,451 47,879 2.64 %$7,673,902 61,076 3.20 %
Money market5,412,681 33,615 2.49 %5,415,716 33,003 2.47 %4,962,567 32,776 2.66 %
Savings1,959,987 12,777 2.61 %1,948,649 12,857 2.68 %2,002,670 16,996 3.41 %
Time4,569,490 45,671 4.01 %4,498,268 46,791 4.22 %6,274,242 75,258 4.82 %
Total interest-bearing
deposits19,721,040 144,940 2.95 %19,206,084 140,530 2.97 %20,913,381 186,106 3.58 %
Borrowings1,628,584 20,021 4.93 %1,397,720 18,421 5.34 %2,013,600 30,311 6.05 %
Subordinated debt946,740 15,332 6.50 %942,817 15,340 6.60 %938,367 16,684 7.15 %
Total interest-bearing
liabilities22,296,364 180,293 3.24 %21,546,621 174,291 3.28 %23,865,348 233,101 3.93 %
Noninterest-bearing
demand deposits7,583,894 7,714,830 7,881,620 
Other liabilities453,748 522,753 692,149 
Total liabilities30,334,006 29,784,204 32,439,117 
Stockholders' equity3,430,143 3,524,181 3,395,350 
Total liabilities and
stockholders' equity$33,764,149 $33,308,385 $35,834,467 
Net interest income (1)
$240,216 $232,364 $229,488 
Net interest spread 2.18 %2.11 %1.72 %
Net interest margin3.10 %3.08 %2.80 %
Total deposits (2)
$27,304,934 $144,940 2.13 %$26,920,914 $140,530 2.12 %$28,795,001 $186,106 2.60 %
Total funds (3)
$29,880,258 $180,293 2.42 %$29,261,451 $174,291 2.42 %$31,746,968 $233,101 2.95 %
______________
(1) Includes net loan discount accretion of $16.1 million, $16.0 million, and $21.8 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 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.

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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Six Months Ended
June 30, 2025June 30, 2024
InterestAverageInterestAverage
Average Income/Yield/Average Income/Yield/
BalanceExpenseCostBalanceExpenseCost
(Dollars in thousands)
Assets:
Loans and leases (1)
$24,148,460 $708,406 5.92 %$25,422,084 $774,318 6.13 %
Investment securities4,726,957 75,478 3.22 %4,690,123 68,139 2.92 %
Deposits in financial
institutions1,979,843 43,280 4.41 %3,667,630 98,836 5.42 %
Total interest-earning
assets30,855,260 827,164 5.41 %33,779,837 941,293 5.60 %
Other assets2,682,266 2,907,750 
Total assets$33,537,526 $36,687,587 
Liabilities and
Stockholders' Equity:
Interest checking$7,562,369 100,756 2.69 %$7,778,540 122,625 3.17 %
Money market5,414,190 66,618 2.48 %5,350,202 74,127 2.79 %
Savings1,954,349 25,634 2.65 %2,019,399 35,026 3.49 %
Time4,534,076 92,462 4.11 %6,191,281 149,135 4.84 %
Total interest-bearing
deposits19,464,984 285,470 2.96 %21,339,422 380,913 3.59 %
Borrowings1,513,790 38,442 5.12 %2,453,003 68,435 5.61 %
Subordinated debt944,790 30,672 6.55 %937,686 33,355 7.15 %
Total interest-bearing
liabilities21,923,564 354,584 3.26 %24,730,111 482,703 3.93 %
Noninterest-bearing
demand deposits7,649,000 7,783,324 
Other liabilities488,060 781,211 
Total liabilities30,060,624 33,294,646 
Stockholders' equity3,476,902 3,392,941 
Total liabilities and
stockholders' equity$33,537,526 $36,687,587 
Net interest income (1)
$472,580 $458,590 
Net interest spread 2.15 %1.67 %
Net interest margin3.09 %2.73 %
Total deposits (2)
$27,113,984 $285,470 2.12 %$29,122,746 $380,913 2.63 %
Total funds (3)
$29,572,564 $354,584 2.42 %$32,513,435 $482,703 2.99 %
______________
(1) Includes net loan discount accretion of $32.1 million and $44.3 million for the six months ended June 30, 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.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”) in this press release, including: tangible common equity, tangible book value per common share, return on average tangible common equity, 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. 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 return on average assets ("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.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common EquityJune 30,March 31,December 31,September 30,June 30,
and Tangible Book Value Per Share20252025202420242024
(Dollars in thousands, except per share amounts)
Stockholders' equity$3,426,843 $3,521,656 $3,499,949 $3,496,198 $3,407,848 
Less: Preferred stock498,516 498,516 498,516 498,516 498,516 
Total common equity 2,928,327 3,023,140 3,001,433 2,997,682 2,909,332 
Less: Intangible assets333,451 340,458 347,465 357,332 364,819 
Tangible common equity2,594,876 2,682,682 2,653,968 2,640,350 2,544,513 
Book value per common share (1)
$18.58 $18.17 $17.78 $17.75 $17.23 
Tangible book value per common share (2)
$16.46 $16.12 $15.72 $15.63 $15.07 
Common shares outstanding (3)157,647,137 166,403,086 168,825,656 168,879,566 168,875,712 
______________
(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 equivalents that are participating securities.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedSix Months Ended
Return on Average TangibleJune 30,March 31,June 30,June 30,
Common Equity ("ROATCE")20252025202420252024
(Dollars in thousands)
Net earnings $28,385 $53,568 $30,333 $81,953 $61,185 
Earnings before income taxes$73,061 $44,637 $87,037 
Add: Intangible asset amortization7,160 8,484 16,888 
Adjusted earnings before
income taxes used for ROATCE80,221 53,121 103,925 
Adjusted income tax expense (1)
20,296 15,203 29,743 
Adjustments:
Intangible asset amortization7,159 14,319 
Tax impact of adjustment above (1)(1,655)(3,311)
Adjustment to net earnings5,504 11,008 
Adjusted net earnings for ROATCE33,889 59,925 37,918 92,961 74,182 
Less: Preferred stock dividends9,947 9,947 9,947 19,894 19,894 
Adjusted net earnings available
to common and equivalent
stockholders for ROATCE$23,942 $49,978 $27,971 $73,067 $54,288 
Average stockholders' equity$3,430,143 $3,524,181 $3,395,350 $3,476,902 $3,392,941 
Less: Average goodwill and intangible
assets337,352 344,610 352,934 340,961 356,807 
Less: Average preferred stock498,516 498,516 498,516 498,516 498,516 
Average tangible common equity$2,594,275 $2,681,055 $2,543,900 $2,637,425 $2,537,618 
Return on average equity (2)
3.32 %6.16 %3.59 %4.75 %3.63 %
ROATCE (3)
3.70 %7.56 %4.42 %5.59 %4.30 %
______________
(1) Effective tax rates of 23.12%, 25.30%, and 28.62% used for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Effective tax rates of 23.12% and 28.62% used for the six months ended June 30, 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.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedSix Months Ended
Adjusted Return on Average June 30,March 31,June 30,June 30,
Tangible Common Equity ("ROATCE")20252025202420252024
(Dollars in thousands)
Net earnings $28,385 $53,568 $30,333 $81,953 $61,185 
Earnings before income taxes$73,061 $44,637 $87,037 
Add: Intangible asset amortization7,160 8,484 16,888 
Add: FDIC special assessment — — 4,814 
Adjusted earnings before income
taxes used for adjusted ROATCE80,221 53,121 108,739 
Adjusted income tax expense (1)
20,296 15,203 31,121 
Adjustments:
Intangible asset amortization7,159 14,319 
Provision for credit losses related to
transfer of loans to held for sale26,289 26,289 
Total adjustments33,448 40,608 
Tax impact of adjustments above (1)(7,733)(9,389)
Income tax related adjustments9,792 9,792 
Adjustment to net earnings35,507 41,011 
Adjusted net earnings for adjusted
ROATCE63,892 59,925 37,918 122,964 77,618 
Less: Preferred stock dividends9,947 9,947 9,947 19,894 19,894 
Adjusted net earnings available to
common and equivalent stockholders
for adjusted ROATCE$53,945 $49,978 $27,971 $103,070 $57,724 
Average stockholders' equity$3,430,143 $3,524,181 $3,395,350 $3,476,902 $3,392,941 
Less: Average goodwill and intangible
assets337,352 344,610 352,934 340,961 356,807 
Less: Average preferred stock498,516 498,516 498,516 498,516 498,516 
Average tangible common equity$2,594,275 $2,681,055 $2,543,900 $2,637,425 $2,537,618 
Adjusted ROATCE (2)
8.34 %7.56 %4.42 %7.88 %4.57 %
______________
(1) Effective tax rates of 23.12%, 25.30%, and 28.62% used for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Effective tax rates of 23.12% and 28.62% used for the six months ended June 30, 2025 and 2024.
(2) Annualized adjusted net earnings (loss) available to common and equivalent stockholders for adjusted ROATCE divided by average tangible common equity.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Adjusted Net Earnings, Net EarningsThree Months EndedSix Months Ended
Available to Common and EquivalentJune 30,March 31,June 30,June 30,
Stockholders, Diluted EPS, and ROAA20252025202420252024
(Dollars in thousands)
Net earnings $28,385 $53,568 $30,333 $81,953 $61,185 
Earnings before income taxes$73,061 $44,637 $87,037 
Add: FDIC special assessment— — 4,814 
Adjusted earnings before income taxes 73,061 44,637 91,851 
Adjusted income tax expense (1)19,493 14,304 26,288 
Adjustments:
Provision for credit losses related to
transfer of loans to held for sale26,289 26,289 
Tax impact of adjustments above (1)(6,078)(6,078)
Income tax related adjustments9,792 9,792 
Adjustments to net earnings30,003 30,003 
Adjusted net earnings 58,388 53,568 30,333 111,956 65,563 
Less: Preferred stock dividends9,947 9,947 9,947 19,894 19,894 
Adjusted net earnings available to
common and equivalent stockholders$48,441 $43,621 $20,386 $92,062 $45,669 
Weighted average diluted common shares
outstanding158,462 169,434 168,432 $163,667 $168,287 
Diluted earnings per common share$0.12 $0.26 $0.12 $0.38 $0.25 
Adjusted diluted earnings per common
share (2)$0.31 $0.26 $0.12 $0.56 $0.27 
Average total assets$33,764,149 $33,308,385 $35,834,467 $33,537,526 $36,687,587 
Return on average assets ("ROAA") (2)0.34 %0.65 %0.34 %0.49 %0.34 %
Adjusted ROAA (3)0.69 %0.65 %0.34 %0.67 %0.36 %
______________
(1) Effective tax rates of 23.12%, 25.30%, and 28.62% used for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Effective tax rates of 23.12% and 28.62% used for the six months ended June 30, 2025 and 2024.
(2) Annualized net earnings divided by average assets.
(3) Annualized adjusted net earnings divided by average assets.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
Pre-Tax Pre-Provision Income20252025202420252024
(Dollars in thousands)
Net interest income (GAAP)$240,216 $232,364 $229,488 $472,580 $458,590 
Add: Noninterest income (GAAP)32,633 33,650 29,792 66,283 63,608 
Total revenues (GAAP)272,849 266,014 259,280 538,863 522,198 
Less: Noninterest expense (GAAP)185,869 183,653 203,643 369,522 414,161 
Pre-tax pre-provision income (Non-GAAP)$86,980 $82,361 $55,637 $169,341 $108,037 

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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
Efficiency Ratio20252025202420252024
(Dollars in thousands)
Noninterest expense$185,869 $183,653 $203,643 $369,522 $414,161 
Less: Intangible asset amortization(7,159)(7,160)(8,484)(14,319)(16,888)
Less: Acquisition, integration, and
reorganization costs— — 12,650 — 12,650 
Noninterest expense used for
efficiency ratio$178,710 $176,493 $207,809 $355,203 $409,923 
Net interest income $240,216 $232,364 $229,488 $472,580 $458,590 
Noninterest income32,633 33,650 29,792 66,283 63,608 
Total revenue272,849 266,014 259,280 538,863 522,198 
Noninterest expense to total revenue68.12 %69.04 %78.54 %68.57 %79.31 %
Efficiency ratio (1)65.50 %66.35 %80.15 %65.92 %78.50 %
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(1) Noninterest expense used for efficiency ratio divided by total revenue.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
June 30, March 31,June 30,
Economic Coverage Ratio202520252024
(Dollars in thousands)
Allowance for credit losses ("ACL)$258,565 $264,557 $275,333 
Add: Unearned credit mark from purchase accounting (1)19,199 20,870 26,982 
Add: Credit-linked notes (2)112,887 115,188 122,523 
Adjusted allowance for credit losses$390,651 $400,615 $424,838 
Loans and leases held for investment$24,245,893 $24,126,527 $23,228,909 
ACL to loans and leases held for investment (3)1.07 %1.10 %1.19 %
Economic coverage ratio (4)1.61 %1.66 %1.83 %
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(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.


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