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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
Company Release – 1/21/2026
 Quarter Highlights
$0.42
Earnings Per Share
$19.56
Book Value Per Share

$17.51
Tangible Book Value
Per Share(1)
15%
Loan Annualized Growth
 
11%
Noninterest-bearing Deposits Annualized Growth
LOS ANGELES, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (“Banc of California” or the “Company”), the parent company of wholly-owned subsidiary Banc of California (the “Bank”), today reported financial results for the 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 million from 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



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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.”



































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INCOME STATEMENT HIGHLIGHTS
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
Summary Income Statement20252025202420252024
(In thousands)
Total interest income$416,948 $432,541 $424,519 $1,676,653 $1,812,705 
Total interest expense165,586 179,097 189,234 699,267 886,655 
Net interest income251,362 253,444 235,285 977,386 926,050 
Provision for credit losses12,500 9,700 12,801 70,600 42,801 
Gain (loss) on sale of loans18 (374)20 (115)645 
Loss on sale of securities— — (454)— (60,400)
Other noninterest income41,553 34,659 29,423 142,254 136,900 
Total noninterest income41,571 34,285 28,989 142,139 77,145 
Total revenue292,933 287,729 264,274 1,119,525 1,003,195 
Acquisition, integration and
reorganization costs— — (1,023)— (14,183)
Other noninterest expense180,644 185,684 182,393 735,850 805,923 
Total noninterest expense180,644 185,684 181,370 735,850 791,740 
Earnings before income taxes99,789 92,345 70,103 313,075 168,654 
Income tax expense22,398 22,716 13,184 84,102 41,766 
Net earnings77,391 69,629 56,919 228,973 126,888 
Preferred stock dividends9,947 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.

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Three Months EndedIncrease (Decrease)
December 31, 2025September 30, 2025QoQ
Summary InterestAverageInterestAverageAverage
Average BalanceAverageIncome/Yield/AverageIncome/Yield/AverageYield/
and Yield/Cost DataBalanceExpenseCostBalanceExpenseCostBalanceCost
(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 securities4,891,281 39,557 3.21 %4,782,070 38,291 3.18 %109,211 0.03 %
Deposits in financial institutions1,834,773 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 deposits19,406,865 $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 margin3.20 %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%.

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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 EndedIncrease (Decrease)
December 31, 2025December 31, 2024YoY
Summary InterestAverageInterestAverageAverage
Average BalanceAverageIncome/Yield/AverageIncome/Yield/AverageYield/
and Yield/Cost DataBalanceExpenseCostBalanceExpenseCostBalanceCost
(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 securities4,782,267 153,326 3.21 %4,686,615 140,794 3.00 %95,652 0.21 %
Deposits in financial institutions1,937,775 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 deposits19,486,610 $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 margin3.15 %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.

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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.

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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.



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BALANCE SHEET HIGHLIGHTS
December 31,September 30,December 31,Increase (Decrease)
Selected Balance Sheet Items202520252024QoQYoY
(In thousands)
Cash and cash equivalents$2,307,965 $2,398,265 $2,502,212 $(90,300)$(194,247)
Securities available-for-sale2,454,058 2,426,734 2,246,839 27,324 207,219 
Securities held-to-maturity2,308,636 2,303,657 2,306,149 4,979 2,487 
Loans held for sale182,936 211,454 26,331 (28,518)156,605 
Loans and leases held for investment25,032,679 24,110,642 23,781,663 922,037 1,251,016 
Total loans and leases25,215,615 24,322,096 23,807,994 893,519 1,407,621 
Total assets34,797,442 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 deposits27,843,357 27,184,765 27,191,909 658,592 651,448 
Borrowings2,063,819 2,005,022 1,391,814 58,797 672,005 
Total liabilities31,256,165 30,546,226 30,042,915 709,939 1,213,250 
Total stockholders' equity3,541,277 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.


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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:
December 31,September 30,June 30,March 31,December 31,
20252025202520252024
(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-family6,089,417 6,124,673 6,280,791 6,216,084 6,041,713 
Other residential3,346,733 3,162,564 3,157,616 2,787,031 2,807,174 
Total real estate mortgage13,750,787 13,579,862 13,807,808 13,492,658 13,427,659 
Real estate construction and land:
Commercial379,387 395,150 381,449 733,684 799,131 
Residential1,568,240 1,759,676 1,920,642 2,127,354 2,373,162 
Total real estate construction and land1,947,627 2,154,826 2,302,091 2,861,038 3,172,293 
Total real estate15,698,414 15,734,688 16,109,899 16,353,696 16,599,952 
Commercial:
Asset-based2,951,010 2,742,519 2,462,351 2,305,325 2,087,969 
Venture capital2,222,097 1,907,601 2,002,601 1,733,074 1,537,776 
Other commercial3,804,099 3,356,537 3,288,305 3,340,400 3,153,084 
Total commercial8,977,206 8,006,657 7,753,257 7,378,799 6,778,829 
Consumer357,059 369,297 382,737 394,032 402,882 
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:
Commercial17 %18 %18 %19 %19 %
Multi-family24 %25 %26 %26 %26 %
Other residential14 %13 %13 %11 %12 %
Total real estate mortgage55 %56 %57 %56 %57 %
Real estate construction and land:
Commercial2 %2 %1 %3 %3 %
Residential6 %7 %8 %9 %10 %
Total real estate construction and land8 %9 %9 %12 %13 %
Total real estate63 %65 %66 %68 %70 %
Commercial:
Asset-based12 %11 %10 %9 %9 %
Venture capital9 %8 %8 %7 %6 %
Other commercial15 %14 %14 %14 %13 %
Total commercial36 %33 %32 %30 %28 %
Consumer1 %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 $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 Ratios20252025202520252024
(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 delinquent92,655 104,952 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 investment0.80 %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, net17,115 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
investment458,683 505,979 661,568 937,014 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 NPLs154.31 %137.79 %136.91 %110.07 %126.24 %
NPLs to loans and leases held for
investment0.64 %0.72 %0.69 %0.88 %0.80 %
NPAs to total assets0.51 %0.53 %0.51 %0.65 %0.59 %
Classified loans and leases to loans
and leases held for investment3.20 %3.17 %2.71 %3.17 %2.37 %
Special mention loans and leases to loans
and leases held for investment1.83 %2.10 %2.73 %3.88 %4.61 %





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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 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.


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Allowance for Credit Losses – Loans
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
Allowance for Credit Losses - Loans20252025202420252024
(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)
Recoveries2,852 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 losses7,800 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 losses4,700 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)
Recoveries2,852 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 losses12,500 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
investment0.98 %1.00 %1.01 %0.98 %1.01 %
ACL to loans and leases held for
investment1.12 %1.12 %1.13 %1.12 %1.13 %
ACL to NPLs176.25 %155.11 %141.57 %176.25 %141.57 %
ACL to NPAs159.14 %150.96 %134.66 %159.14 %134.66 %
Annualized net charge-offs (recoveries)
to average loans and leases0.04 %(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.


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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,
20252025202520252024
(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:
Checking8,509,587 7,930,951 7,974,452 7,747,051 7,610,705 
Money market4,917,857 4,974,177 5,375,080 5,367,788 5,361,635 
Savings1,905,863 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 deposits4,687,263 4,726,520 4,804,879 4,485,340 4,566,424 
Total interest-bearing20,020,570 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 checking28 %28 %27 %28 %28 %
Interest-bearing:
Checking30 %29 %29 %29 %28 %
Money market18 %19 %20 %20 %20 %
Savings7 %7 %7 %7 %7 %
Time deposits:
Non-brokered8 %9 %9 %9 %9 %
Brokered9 %8 %8 %7 %8 %
Total time deposits17 %17 %17 %16 %17 %
Total interest-bearing72 %72 %73 %72 %72 %
Total deposits100 %100 %100 %100 %100 %

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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'
•

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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,
20252025202520252024
Capital Ratios(1)
Banc of California, Inc.
Total risk-based capital ratio16.31 %16.69 %16.37 %16.93 %17.05 %
Tier 1 risk-based capital ratio12.34 %12.56 %12.34 %12.86 %12.97 %
Common equity tier 1 capital ratio10.01 %10.14 %9.95 %10.45 %10.55 %
Tier 1 leverage ratio9.99 %9.77 %9.74 %10.19 %10.15 %
Banc of California
Total risk-based capital ratio15.61 %15.94 %15.65 %16.22 %16.65 %
Tier 1 risk-based capital ratio13.15 %13.42 %13.21 %13.74 %14.17 %
Common equity tier 1 capital ratio13.15 %13.42 %13.21 %13.74 %14.17 %
Tier 1 leverage ratio10.65 %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.


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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.

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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)
December 31,September 30,June 30,March 31,December 31,
20252025202520252024
ASSETS:(Dollars in thousands)
Cash and due from banks$181,103 $205,364 $222,210 $215,591 $192,006 
Interest-earning deposits in financial
institutions2,126,862 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-sale2,454,058 2,426,734 2,246,174 2,334,058 2,246,839 
Securities held-to-maturity2,308,636 2,303,657 2,316,725 2,311,912 2,306,149 
FRB and FHLB stock160,442 159,337 162,243 155,330 147,773 
   Total investment securities4,923,136 4,889,728 4,725,142 4,801,300 4,700,761 
Loans held for sale182,936 211,454 465,571 25,797 26,331 
Loans and leases held for investment25,032,679 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, net24,787,067 23,870,141 24,016,549 23,891,541 23,542,303 
Equipment leased to others under
operating leases238,232 280,872 288,692 295,032 307,188 
Premises and equipment, net146,698 132,766 138,032 140,347 142,546 
Bank owned life insurance350,083 348,051 346,142 342,810 339,517 
Goodwill214,521 214,521 214,521 214,521 214,521 
Intangible assets, net105,287 111,923 118,930 125,937 132,944 
Deferred tax asset, net656,755 672,159 691,535 702,323 720,587 
Other assets884,762 883,085 891,787 896,421 913,954 
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 deposits20,020,570 19,581,017 20,087,317 19,599,241 19,471,996 
Total deposits27,843,357 27,184,765 27,528,433 27,193,191 27,191,909 
Borrowings2,063,819 2,005,022 1,917,180 1,670,782 1,391,814 
Subordinated debt952,740 950,888 949,213 944,908 941,923 
Accrued interest payable and other
liabilities396,249 405,551 428,784 449,381 517,269 
Total liabilities31,256,165 30,546,226 30,823,610 30,258,262 30,042,915 
STOCKHOLDERS' EQUITY:
Preferred stock498,516 498,516 498,516 498,516 498,516 
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 equivalents50 41 98 98 98 
Additional paid-in-capital3,552,483 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’ equity3,541,277 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.

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BANC OF CALIFORNIA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
20252025202420252024
(In thousands, except per share amounts)
Interest income:
Loans and leases$359,268 $372,723 $357,303 $1,440,397 $1,501,534 
Investment securities39,557 38,291 37,743 153,326 140,794 
Deposits in financial institutions18,123 21,527 29,473 82,930 170,377 
Total interest income416,948 432,541 424,519 1,676,653 1,812,705 
Interest expense:
Deposits129,896 143,074 154,085 558,440 715,984 
Borrowings19,858 20,461 18,993 78,761 104,398 
Subordinated debt15,832 15,562 16,156 62,066 66,273 
Total interest expense165,586 179,097 189,234 699,267 886,655 
Net interest income251,362 253,444 235,285 977,386 926,050 
Provision for credit losses12,500 9,700 12,801 70,600 42,801 
Net interest income after provision
for credit losses238,862 243,744 222,484 906,786 883,249 
Noninterest income:
Service charges on deposit accounts5,038 5,109 4,770 19,146 18,583 
Commissions and fees9,524 9,514 8,231 38,637 33,258 
Leased equipment income16,381 10,321 10,730 47,717 51,109 
Gain (loss) on sale of loans and leases18 (374)20 (115)645 
Loss on sale of securities— — (454)— (60,400)
Dividends and gains on equity investments3,492 2,291 18 7,992 7,982 
Warrant income 361 433 343 1,726 408 
LOCOM HFS adjustment— — (3)(9)215 
Other income6,757 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 
Occupancy14,726 15,415 15,678 60,624 67,993 
Information technology and data processing13,751 13,535 14,546 55,458 60,418 
Other professional services6,774 5,394 5,498 23,087 20,857 
Insurance and assessments7,070 8,994 11,179 32,750 70,779 
Intangible asset amortization6,788 7,160 7,770 28,267 33,143 
Leased equipment depreciation6,202 6,750 7,096 26,393 29,271 
Acquisition, integration and reorganization costs— — (1,023)— (14,183)
Customer related expense24,870 26,227 31,672 105,425 129,471 
Loan expense4,445 4,947 4,489 16,372 17,306 
Other expense10,156 8,397 6,804 37,968 35,289 
Total noninterest expense180,644 185,684 181,370 735,850 791,740 
Earnings before income taxes99,789 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 dividends9,947 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)
Basic155,449 157,103 168,604 159,807 168,441 
Diluted160,094 159,051 169,732 161,724 168,684 
______________
(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 EndedYear Ended
December 31,September 30,December 31,December 31,
Profitability and Other Ratios20252025202420252024
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 ratio90.56 %89.47 %87.56 %90.56 %87.56 %
Average loans and leases to average deposits89.81 %89.62 %87.05 %89.39 %86.42 %
Average investment securities to average
total assets14.49 %14.14 %14.01 %14.21 %13.26 %
Average stockholders' equity to average
total assets10.35 %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.



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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Three Months Ended
December 31, 2025September 30, 2025December 31, 2024
InterestAverageInterestAverageInterestAverage
Average Income/Yield/Average Income/Yield/Average Income/Yield/
BalanceExpenseCostBalanceExpenseCostBalanceExpenseCost
(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 securities4,891,281 39,557 3.21 %4,782,070 38,291 3.18 %4,700,742 37,743 3.19 %
Deposits in financial
institutions1,834,773 18,123 3.92 %1,958,011 21,527 4.36 %2,474,732 29,473 4.74 %
Total interest-earning
assets31,169,143 416,948 5.31 %31,198,336 432,541 5.50 %30,824,745 424,519 5.48 %
Other assets2,583,357 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 market4,948,960 25,810 2.07 %5,154,138 30,461 2.34 %5,003,118 31,688 2.52 %
Savings1,942,678 10,863 2.22 %1,966,040 12,689 2.56 %1,954,625 14,255 2.90 %
Time4,570,369 43,904 3.81 %4,633,089 45,929 3.93 %4,645,115 51,734 4.43 %
Total interest-bearing
deposits19,406,865 129,896 2.66 %19,608,906 143,074 2.89 %19,262,178 154,085 3.18 %
Borrowings1,661,808 19,858 4.74 %1,705,697 20,461 4.76 %1,399,080 18,993 5.40 %
Subordinated debt951,471 15,832 6.60 %949,690 15,562 6.50 %942,221 16,156 6.82 %
Total interest-bearing
liabilities22,020,144 165,586 2.98 %22,264,293 179,097 3.19 %21,603,479 189,234 3.48 %
Noninterest-bearing
demand deposits7,809,326 7,683,136 7,905,750 
Other liabilities428,873 446,453 566,635 
Total liabilities30,258,343 30,393,882 30,075,864 
Stockholders' equity3,494,157 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 margin3.20 %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.

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BANC OF CALIFORNIA, INC.
AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE COST PAID
(UNAUDITED)
Year Ended
December 31, 2025December 31, 2024
InterestAverageInterestAverage
Average Income/Yield/Average Income/Yield/
BalanceExpenseCostBalanceExpenseCost
(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 securities4,782,267 153,326 3.21 %4,686,615 140,794 3.00 %
Deposits in financial
institutions1,937,775 82,930 4.28 %3,226,658 170,377 5.28 %
Total interest-earning
assets31,020,850 1,676,653 5.40 %32,482,923 1,812,705 5.58 %
Other assets2,644,888 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 market5,231,379 122,889 2.35 %5,164,566 138,176 2.68 %
Savings1,954,354 49,186 2.52 %2,005,513 66,421 3.31 %
Time4,568,180 182,295 3.99 %5,714,821 270,474 4.73 %
Total interest-bearing
deposits19,486,610 558,440 2.87 %20,599,820 715,984 3.48 %
Borrowings1,599,469 78,761 4.92 %1,838,819 104,398 5.68 %
Subordinated debt947,709 62,066 6.55 %939,528 66,273 7.05 %
Total interest-bearing
liabilities22,033,788 699,267 3.17 %23,378,167 886,655 3.79 %
Noninterest-bearing
demand deposits7,698,015 7,829,976 
Other liabilities462,657 693,981 
Total liabilities30,194,460 31,902,124 
Stockholders' equity3,471,278 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 margin3.15 %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.


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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 ("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.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Tangible Common EquityDecember 31,September 30,June 30,March 31,December 31,
and Tangible Book Value Per Share20252025202520252024
(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 stock498,516 498,516 498,516 498,516 498,516 
Total common equity 3,042,761 2,968,223 2,928,327 3,023,140 3,001,433 
Less: Goodwill and intangible assets319,808 326,444 333,451 340,458 347,465 
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.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedYear Ended
Return on Average TangibleDecember 31,September 30,December 31,December 31,
Common Equity ("ROATCE")20252025202420252024
(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 amortization7,770 33,143 
Adjusted earnings before
income taxes for ROATCE77,873 201,797 
Adjusted income tax expense (1)
(19,281)(49,965)
Adjustments:
Intangible asset amortization6,788 7,160 28,267 
Tax impact of adjustment above (1)(1,823)(1,958)(7,593)
Adjustment to net earnings4,965 5,202 20,674 
Adjusted net earnings for ROATCE82,356 74,831 58,592 249,647 151,832 
Less: Preferred stock dividends9,947 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
assets323,295 330,277 352,907 333,815 356,960 
Less: Average preferred stock498,516 498,516 498,516 498,516 498,516 
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.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedYear Ended
Adjusted Return on Average December 31,September 30,December 31,December 31,
Tangible Common Equity ("ROATCE")20252025202420252024
(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 amortization7,770 33,143 
Add: FDIC special assessment— 4,814 
Add: Loss on sale of securitiesNA59,946 
Less: Acquisition, integration, and
reorganization costsNA(510)
Adjusted earnings before income
taxes for adjusted ROATCE77,873 266,047 
Adjusted income tax expense (1)
(19,281)(65,873)
Adjustments:
Intangible asset amortization6,788 7,160 28,267 
Provision for credit losses related to
transfer of loans to held for sale— — 26,289 
Total adjustments6,788 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 earnings4,965 5,202 49,694 
Adjusted net earnings for adjusted
ROATCE82,356 74,831 58,592 278,667 200,174 
Less: Preferred stock dividends9,947 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
assets323,295 330,277 352,907 333,815 356,960 
Less: Average preferred stock498,516 498,516 498,516 498,516 498,516 
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.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Adjusted Net Earnings, Net EarningsThree Months EndedYear Ended
Available to Common and EquivalentDecember 31,September 30,December 31,December 31,
Stockholders, Diluted EPS, and ROAA20252025202420252024
(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 securitiesNA59,946 
Less: Acquisition, integration, and
reorganization costsNA(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 sale26,289 
Tax impact of adjustments above (1)(7,061)
Income tax related adjustments9,792 
Adjustments to net earnings29,020 
Adjusted net earnings 77,391 69,629 56,919 257,993 175,237 
Less: Preferred stock dividends9,947 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
outstanding160,094 159,051 169,732 $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.



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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
Pre-Tax Pre-Provision Income20252025202420252024
(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 

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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
Efficiency Ratio20252025202420252024
(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 income41,571 34,285 28,989 142,139 77,145 
Total revenue292,933 287,729 264,274 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 revenue61.67 %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.


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BANC OF CALIFORNIA, INC.
NON-GAAP MEASURES
(UNAUDITED)
December 31,September 30,
Economic Coverage Ratio20252025
(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.


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