banc-20260331

Please wait

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______

Commission File Number 001-35522

BANC OF CALIFORNIA, INC.

(Exact name of registrant as specified in its charter)


Maryland						04-3639825
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

11611 San Vicente Boulevard, Suite 500

Los Angeles, CA 90049

(Address of Principal Executive Offices, Including Zip Code)

(855) 361-2262

(Registrant's Telephone Number, Including Area Code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, par value $0.01 per share

BANC

New York Stock Exchange

Depositary Shares, each representing a 1/40th interest

in a share of 7.75% fixed rate reset non-cumulative

perpetual preferred stock, Series F

BANC/PF

New York Stock Exchange

(Title of Each Class)

(Trading Symbol)

(Name of Exchange on Which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☑

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 30, 2026, there were 153,724,787 shares of the registrant's voting common stock outstanding, excluding 60,269 shares of unvested restricted stock, and there were 477,321 shares of the registrant's class B non-voting common stock outstanding.

BANC OF CALIFORNIA, INC.

MARCH 31, 2026 QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Balance Sheets	4
	Consolidated Statements of Earnings	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Changes in Stockholders' Equity	7
	Consolidated Statements of Cash Flows	9
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	54
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	80
Item 4.	Controls and Procedures	83

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	83
Item 1A.	Risk Factors	83
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83
Item 3.	Defaults Upon Senior Securities	84
Item 4.	Mine Safety Disclosures	84
Item 5.	Other Information	84
Item 6.	Exhibits	84
Signatures		85

PART I. FINANCIAL INFORMATION

Glossary of Acronyms, Abbreviations, and Terms

The acronyms, abbreviations, and terms listed below are used in various sections of this Quarterly Report on Form 10-Q, including "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations."

ACL

Allowance for Credit Losses

FRB

Board of Governors of the Federal Reserve System

AFS

Available-for-Sale

FRBSF

Federal Reserve Bank of San Francisco

ALLL

Allowance for Loan and Lease Losses

HFI

Held for Investment

AOCI

Accumulated Other Comprehensive Income (Loss)

HFS

Held for Sale

ASC

Accounting Standards Codification

HLBV

Hypothetical Liquidation at Book Value

ASU

Accounting Standards Update

HTM

Held-to-Maturity

Basel III

A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013

IRR

Interest Rate Risk

BOLI

Bank Owned Life Insurance

LIHTC

Low Income Housing Tax Credit

CDI

Core Deposit Intangible Assets

LOCOM

Lower of Cost or Market

CECL

Current Expected Credit Loss

MBS

Mortgage-Backed Securities

CET1

Common Equity Tier 1

NII

Net Interest Income

CMBS

Commercial Mortgage-Backed Securities

NVCE

Non-Voting Common Stock Equivalents

CMOs

Collateralized Mortgage Obligations

OREO

Other Real Estate Owned

CODM

Chief Operating Decision Maker

PSUs

Performance Stock Units

CRE

Commercial Real Estate

ROU

Right-of-use

CRA

Community Reinvestment Act

RSUs

Restricted Stock Units

CRI

Customer Relationship Intangible Assets

SBA

Small Business Administration

DFPI

California Department of Financial Protection and Innovation

SBIC

Small Business Investment Company

DTAs

Deferred Tax Assets

SEC

Securities and Exchange Commission

ECR

Earnings Credit Rate

SFR

Single-Family Residential

EVE

Economic Value of Equity

SOFR

Secured Overnight Financing Rate

FASB

Financial Accounting Standards Board

TRSAs

Time-Based Restricted Stock Awards

FDIC

Federal Deposit Insurance Corporation

U.S. GAAP

U.S. Generally Accepted Accounting Principles

FHLB

Federal Home Loan Bank of San Francisco

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	March 31, 2026		December 31, 2025
	(in thousands, except par value amounts)
ASSETS:
Cash and due from banks	$	214,120	$	181,103
Interest-earning deposits in financial institutions	2,003,149		2,126,862
Total cash, cash equivalents, and restricted cash	2,217,269		2,307,965
Securities AFS, at fair value, net of allowance for credit losses (amortized cost of
$2,857,903 and $2,646,414, respectively)(ACL of $775 and $775, respectively)	2,656,332		2,454,058
Securities HTM, at amortized cost, net of allowance for credit losses (fair value of
$2,227,000 and $2,246,526, respectively)(ACL of $695 and $695, respectively)	2,313,548		2,308,636
FRB and FHLB stock, at cost	170,342		160,442
Total investment securities	5,140,222		4,923,136
Loans HFS	259,049		182,936
Loans and leases HFI	24,780,347		25,032,679
Allowance for loan and lease losses	(241,600)		(245,612)
Total loans and leases HFI, net	24,538,747		24,787,067
Equipment leased to others under operating leases	223,558		238,232
Premises and equipment, net	146,316		146,698
Bank owned life insurance	352,707		350,083
Goodwill	214,521		214,521
Intangible assets, net	99,091		105,287
Deferred tax asset, net	653,481		656,755
Other assets	879,280		884,762
Total assets	$	34,724,241	$	34,797,442
LIABILITIES:
Noninterest-bearing deposits	$	7,797,542	$	7,822,787
Interest-bearing deposits	19,524,592		20,020,570
Total deposits	27,322,134		27,843,357
Borrowings (including $111,250 and $113,634 at fair value, respectively)	2,551,250		2,063,819
Subordinated debt	954,072		952,740
Accrued interest payable and other liabilities	343,459		396,249
Total liabilities	31,170,915		31,256,165
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY:
Preferred stock	498,516		498,516
Common stock ($0.01 par value, 153,784,724 shares issued and 153,722,123 outstanding at
March 31, 2026; 150,039,018 shares issued and 149,963,520 outstanding at December 31, 2025)	1,538		1,500
Class B non-voting common stock ($0.01 par value, 477,321 shares issued at March 31, 2026
and 477,321 shares issued at December 31, 2025)	5		5
NVCE ($0.01 par value, — shares issued at
March 31, 2026 and 5,017,064 shares issued at December 31, 2025)	—		50
Additional paid-in capital	3,501,213		3,552,483
Retained deficit	(180,011)		(242,016)
Accumulated other comprehensive loss, net	(267,935)		(269,261)
Total stockholders' equity	3,553,326		3,541,277
Total liabilities and stockholders' equity	$	34,724,241	$	34,797,442

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS


	Three Months Ended
	March 31,		December 31,		March 31,
	2026		2025		2025
	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	349,943	$	359,268	$	346,103
Investment securities	41,873		39,557		37,862
Deposits in financial institutions	15,626		18,123		22,690
Total interest income	407,442		416,948		406,655
Interest expense:
Deposits	120,233		129,896		140,530
Borrowings	20,177		19,858		18,421
Subordinated debt	15,415		15,832		15,340
Total interest expense	155,825		165,586		174,291
Net interest income	251,617		251,362		232,364
Provision for credit losses	9,800		12,500		9,300
Net interest income after provision for credit losses	241,817		238,862		223,064
Noninterest income:
Leased equipment income	8,530		16,381		10,784
Commissions and fees	10,980		9,524		9,958
Service charges on deposit accounts	4,978		5,038		4,543
Gain on sale of loans and leases	7		18		211

Dividends and gains on equity investments	2,002		3,492		2,323
Warrant income (loss)	938		361		(295)

Other income	7,893		6,757		6,126
Total noninterest income	35,328		41,571		33,650
Noninterest expense:
Compensation	91,100		85,862		86,417
Customer related expense	23,737		24,870		27,751
Occupancy	14,892		14,726		15,010
Information technology and data processing	14,339		13,751		15,099
Insurance and assessments	6,764		7,070		7,283
Intangible asset amortization	6,348		6,788		7,160
Leased equipment depreciation	5,304		6,202		6,741
Other professional services	4,236		6,774		4,513
Loan expense	4,292		4,445		2,930


Other expense	10,379		10,156		10,749
Total noninterest expense	181,391		180,644		183,653
Earnings before income taxes	95,754		99,789		73,061
Income tax expense	23,802		22,398		19,493
Net earnings	71,952		77,391		53,568
Preferred stock dividends	9,947		9,947		9,947
Net earnings available to common and equivalent stockholders	$	62,005	$	67,444	$	43,621

Earnings per share:
Basic	$	0.40	$	0.43	$	0.26
Diluted	$	0.39	$	0.42	$	0.26

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended
	March 31,		December 31,		March 31,
	2026		2025		2025
	(In thousands)
Net earnings	$	71,952	$	77,391	$	53,568
Other comprehensive income, net of tax:
Unrealized net holding (losses) gains on securities AFS arising during the period	(9,215)		15,671		38,470
Income tax benefit (expense) related to unrealized net holding gains arising during the period	2,553		(4,350)		(10,952)
Unrealized net holding (losses) gains on securities AFS, net of tax	(6,662)		11,321		27,518
Amortization of unrealized net loss on securities transferred from AFS to HTM	8,576		8,606		8,342
Income tax expense related to amortization of unrealized net loss on securities transferred from AFS to HTM	(2,376)		(2,377)		(2,378)
Amortization of unrealized net loss on securities transferred from AFS to HTM, net of tax	6,200		6,229		5,964
Change in fair value of credit-linked notes	(111)		(122)		146
Income tax benefit (expense) related to change in fair value of credit-linked notes	31		28		(42)
Change in fair value of credit-linked notes, net of tax	(80)		(94)		104
Unrealized gain (loss) on cash flow hedges arising during the period	2,584		408		(2,973)
Income tax (expense) benefit related to unrealized gain on cash flow hedges arising during the period	(716)		(108)		847
Unrealized gain (loss) on cash flow hedges, net of tax	1,868		300		(2,126)
Other comprehensive income, net of tax	1,326		17,756		31,460
Comprehensive income	$	73,278	$	95,147	$	85,028

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY


	Three Months Ended March 31, 2026
			Common Stock				Non -Voting						Accumulated
					Class B		Common		Additional				Other
	Preferred				Non-		Stock		Paid-in		Retained		Comprehensive
	Stock		Voting		Voting		Equivalents		Capital		Deficit		Loss, Net		Total
	(In thousands, except per share amount)
Balance, December 31, 2025	$	498,516	$	1,500	$	5	$	50	$	3,552,483	$	(242,016)	$	(269,261)	$	3,541,277
Net earnings	—		—		—		—		—		71,952		—		71,952
Other comprehensive income, net of tax	—		—		—		—		—		—		1,326		1,326
Restricted stock awarded and earned stock
compensation, net of shares forfeited	—		5		—		—		5,631		—		—		5,636

Conversion of NVCE to voting common stock	—		40		—		(40)		—		—		—		—
Restricted stock surrendered	—		—		—		—		(5,574)		—		—		(5,574)
Shares purchased under
Dividend Reinvestment Plan	—		—		—		—		115		—		—		115
Shares repurchased under Stock Repurchase
Program including excise tax	—		(7)		—		—		(12,073)		—		—		(12,080)

NVCE repurchased	—		—		—		(10)		(20,190)		—		—		(20,200)
Cash dividends paid:
Preferred stock, $0.4845/share	—		—		—		—		—		(9,947)		—		(9,947)
Common stock, $0.12/share	—		—		—		—		(19,179)		—		—		(19,179)
Balance, March 31, 2026	$	498,516	$	1,538	$	5	$	—	$	3,501,213	$	(180,011)	$	(267,935)	$	3,553,326


	Three Months Ended March 31, 2026
		Common Stock		Non-Voting
	Preferred		Class B	Common Stock
	Stock	Voting	Non-Voting	Equivalents

Number of shares, December 31, 2025	513,250	150,039,018	477,321	5,017,064
Restricted stock awarded and earned stock
compensation, net of shares forfeited	—	723,872	—	—
Restricted stock surrendered	—	(291,929)	—	—
Shares purchased under Dividend Reinvestment Plan	—	6,634	—	—
Shares repurchased under Stock Repurchase Program	—	(709,935)	—	(1,000,000)

Conversion of NVCE to voting common stock	—	4,017,064	—	(4,017,064)
Number of shares, March 31, 2026	513,250	153,784,724	477,321	—

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY


	Three Months Ended March 31, 2025
							Non-Voting						Accumulated
			Common Stock				Common		Additional				Other
	Preferred				Class B		Stock		Paid-in		Retained		Comprehensive
	Stock		Voting		Non-Voting		Equivalents		Capital		Deficit		Loss, Net		Total
	(In thousands, except per share amount)
Balance, December 31, 2024	$	498,516	$	1,586	$	5	$	98	$	3,785,725	$	(431,201)	$	(354,780)	$	3,499,949
Net earnings	—		—		—		—		—		53,568		—		53,568
Other comprehensive income,
net of tax	—		—		—		—		—		—		31,460		31,460
Restricted stock awarded and
earned stock compensation,
net of shares forfeited	—		2		—		—		5,493		—		—		5,495



Restricted stock surrendered	—		—		—		—		(2,699)		—		—		(2,699)
Shares repurchased under
Dividend Reinvestment Plan	—		—		—		—		72		—		—		72
Shares repurchased under the
Stock Repurchase Program
including excise tax	—		(27)		—		—		(38,904)		—		—		(38,931)
Cash dividends paid:
Preferred stock, $0.4845/share	—		—		—		—		—		(9,947)		—		(9,947)
Common stock, $0.10/share	—		—		—		—		(17,311)		—		—		(17,311)
Balance, March 31, 2025	$	498,516	$	1,561	$	5	$	98	$	3,732,376	$	(387,580)	$	(323,320)	$	3,521,656


	Three Months Ended March 31, 2025
				Non-Voting
		Common Stock		Common
	Preferred		Class B	Stock
	Stock	Voting	Non-Voting	Equivalents

Number of shares, December 31, 2024	513,250	158,557,735	477,321	9,790,600
Restricted stock awarded and earned stock
compensation, net of shares forfeited	—	440,587	—	—
Restricted stock surrendered	—	(183,480)	—	—
Shares purchased under Dividend Reinvestment Plan	—	5,146	—	—
Shares repurchased under Stock Repurchase Program	—	(2,684,823)	—	—
Number of shares, March 31, 2025	513,250	156,135,165	477,321	9,790,600

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Cash flows from operating activities:
Net earnings	$	71,952	$	53,568
Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization	10,894		13,027
Amortization of net premiums on investment securities	4,524		5,068
Accretion of net purchased loan discounts and deferred loan fees	(16,475)		(21,181)
Amortization of intangible assets	6,348		7,160
Amortization of operating lease ROU assets	5,717		5,895
Provision for credit losses	9,800		9,300
Loss on sale of foreclosed assets	28		17
Provision for losses on foreclosed assets	44		265
Gain on sale of loans and leases	(7)		(211)
Loss on sale of premises and equipment	1		—


Unrealized gain on derivatives, foreign currencies, and credit-linked notes, net	(362)		(279)
LOCOM HFS adjustment	(3)		—
Earned stock compensation	5,636		5,495


Decrease in other assets	4,851		12,301
Decrease in accrued interest payable and other liabilities	(53,967)		(75,303)
Net cash provided by operating activities	48,981		15,122

Cash flows from investing activities:

Net decrease (increase) in loans and leases	175,029		(337,351)
Proceeds from sales of loans and leases	740		1,301
Proceeds from maturities and paydowns of securities AFS	130,567		97,893

Purchases of securities AFS	(343,368)		(148,541)
Proceeds from maturities and paydowns of securities HTM	452		310
Purchases of FHLB and FRB stock	(9,900)		(7,557)

Proceeds from sales of foreclosed assets	689		5,316
Purchases of premises and equipment	(3,380)		(1,525)

Proceeds from BOLI death benefit	583		—
Net decrease in equipment leased to others under operating leases	9,370		5,415
Net cash used in investing activities	(39,218)		(384,739)

Cash flows from financing activities:
Net decrease in noninterest-bearing deposits	(25,245)		(125,963)
Net (decrease) increase in interest-bearing deposits	(495,978)		127,245
Repayments of borrowings	(2,401)		(1,014)
Proceeds from borrowings	489,815		279,842


Common shares repurchased under Stock Repurchase Program	(32,280)		(38,931)
Common shares purchased under Dividend Reinvestment Plan	—		72

Restricted stock surrendered	(5,574)		(2,699)
Preferred stock dividends paid	(9,947)		(9,947)
Common stock dividends paid	(18,849)		(17,311)
Net cash (used in) provided by financing activities	(100,459)		211,294

Net decrease in cash, cash equivalents, and restricted cash	(90,696)		(158,323)
Cash, cash equivalents, and restricted cash, beginning of period	2,307,965		2,502,212
Cash, cash equivalents, and restricted cash, end of period	$	2,217,269	$	2,343,889

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended March 31,

	2026		2025

	(In thousands)
Supplemental disclosures of cash flow information:
Cash paid for interest	$	154,207	$	180,996
Cash received for income taxes	(342)		(256)
Loans transferred to foreclosed assets	1,700		1,354
Transfers from loans HFI to loans HFS	72,061		—

See Notes to Unaudited Consolidated Financial Statements.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California (the “Bank”), a California state-chartered bank and member of the FRB. When we refer to the “holding company," we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company,” we are referring to Banc of California, Inc. and its consolidated subsidiaries including the Bank, collectively. As a bank holding company, Banc of California, Inc. is subject to ongoing and comprehensive supervision, regulation, examination, and enforcement by the FRB. As a California state-chartered bank and a member of the FRB, the Bank is subject to ongoing and comprehensive supervision, regulation, examination, and enforcement by the DFPI and the FRB. The Bank is also a member of the FHLB system, and its deposit accounts are insured by the Deposit Insurance Fund of the FDIC.

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. The Bank offers a broad range of loan and deposit products and services through full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The Bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The Bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more.

We generate our revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities, and fees received in connection with deposit services, extending credit and other services offered, including treasury management and investment management services. Our major operating expenses are interest paid by the Bank on deposits and borrowings, compensation expense, customer related expense, information technology and data processing expense, occupancy expense, and general operating expenses.

Significant Accounting Policies

Our accounting policies are described in "Note 1. Nature of Operations and Summary of Significant Accounting Policies", of our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC ("Form 10-K").

Recently Issued Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses," requiring additional disclosure of income statement expenses, including categories like employee compensation, depreciation, and intangible asset amortization, as well as selling expenses. Companies must also qualitatively describe any remaining amounts not separately disclosed. In January 2025, the FASB also issued ASU 2025-01, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures-Clarifying the Effective Date," clarified that all public business entities must adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The disclosures apply prospectively, but retrospective application is allowed. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." The new standard clarifies and modernizes the accounting for costs related to internal-use software under ASC 350-40. Specifically, the amendments address the accounting for software developed using iterative and agile development methods, clarify the threshold for when capitalization of software costs should begin, and require the disclosure requirements of ASC 360-10. This guidance is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. Entities may apply the guidance using one of three transition methods: prospective, modified retrospective (based on the project’s status and whether costs were previously capitalized), or full retrospective application. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which updates the accounting for acquired loans under the CECL model. The amendments address application challenges under previous guidance, including the perceived double-counting of credit losses at acquisition, by expanding the gross-up approach and introducing the concept of purchased seasoned loans. Under the new standard, an ACL is recorded at acquisition with a corresponding adjustment to the loan’s amortized cost basis, eliminating the requirement for a day-one provision for certain acquired loans. Loans acquired in a business combination (excluding credit cards) are automatically considered purchased seasoned loans, while other loans qualify if acquired more than 90 days after origination and the acquirer was not involved in origination. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and is to be applied prospectively. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025‑11, “Interim Reporting (Topic 270): Narrow‑Scope Improvements,” which clarifies and consolidates interim reporting guidance under ASC 270 for entities issuing interim financial statements. In addition, the update establishes a disclosure principle requiring entities to disclose material events or changes since the end of the most recent annual reporting period. The amendment does not introduce new recognition, measurement, or disclosure requirements and are not intended to change the fundamental nature of interim reporting, but rather to enhance clarity and consistency in interim financial reporting. The guidance is effective for interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Entities may apply the guidance using either prospective or retrospective application. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

Basis of Presentation

The accounting and reporting policies of the Company are in accordance with U.S. generally accepted accounting principles, which we may refer to as U.S. GAAP. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements, have been included.

The accompanying unaudited Consolidated Financial Statements as of March 31, 2026 and three months ended March 31, 2026 and 2025 have been prepared in accordance with U.S. GAAP for interim information and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Accordingly, these statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K.

Use of Estimates

The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the ACL (the combination of the ALLL and the reserve for unfunded loan commitments) and the realization of deferred tax assets and liabilities. Estimates may be adjusted as more current information becomes available, and any adjustment may be significant.

NOTE 2. RESTRICTED CASH

The Company is required to maintain reserve balances with the FRBSF. Such reserve requirements are based on a percentage of deposit liabilities and may be satisfied by cash on hand. There were no average reserves required to be held at the FRBSF for the three months ended March 31, 2026 and 2025. The following restricted cash balances are included in "Interest-earning deposits in financial institutions" on the consolidated balance sheets. As of March 31, 2026 and December 31, 2025, we pledged cash collateral for our derivative contracts of $15.3 million and $15.1 million, respectively. In connection with the issuance of the credit-linked notes on September 29, 2022, the Company maintains a correspondent bank account at a third-party financial institution that serves as the collateral account. The repayment of principal on the credit-linked notes is secured by this collateral account, which had a balance of $114.3 million at March 31, 2026 and $115.3 million at December 31, 2025. We pledged cash to secure standby letters of credit that we have issued on behalf of our customers. As of March 31, 2026 and December 31, 2025, the balance of such restricted cash totaled $39.8 million and $39.8 million, respectively.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 3. INVESTMENT SECURITIES

Securities Available-for-Sale

The following tables present amortized cost, gross unrealized gains and losses, and fair values of AFS securities as of the dates indicated:


	March 31, 2026
			Allowance				Gross		Gross
	Amortized		for Credit		Net Carrying		Unrealized		Unrealized		Fair
Security Type	Cost		Losses		Amount		Gains		Losses		Value
	(In thousands)
Agency residential MBS	$	951,650	$	—	$	951,650	$	—	$	(139,989)	$	811,661

Agency commercial MBS	52,030		—		52,030		—		(1,049)		50,981
Agency residential CMOs	1,122,858		—		1,122,858		1,423		(20,098)		1,104,183

Corporate debt securities	246,475		(775)		245,700		880		(14,622)		231,958
Private label residential CMOs	259,984		—		259,984		157		(26,957)		233,184
Collateralized loan obligations	200,306		—		200,306		155		(87)		200,374
Private label commercial MBS	8,742		—		8,742		—		(472)		8,270
Asset-backed securities	12,637		—		12,637		24		—		12,661
SBA securities	3,221		—		3,221		—		(161)		3,060
Total (1)	$	2,857,903	$	(775)	$	2,857,128	$	2,639	$	(203,435)	$	2,656,332

_________________________

(1) Excludes accrued interest receivable of $12.3 million at March 31, 2026 which is recorded in "Other assets" on the consolidated balance sheets.


	December 31, 2025
			Allowance				Gross		Gross
	Amortized		for Credit		Net Carrying		Unrealized		Unrealized		Fair
Security Type	Cost		Losses		Amount		Gains		Losses		Value
	(In thousands)
Agency residential MBS	$	972,161	$	—	$	972,161	$	—	$	(138,076)	$	834,085

Agency commercial MBS	52,022		—		52,022		44		(1,100)		50,966
Agency residential CMOs	883,067		—		883,067		3,857		(15,300)		871,624

Corporate debt securities	257,236		(775)		256,461		576		(15,441)		241,596
Private label residential CMOs	254,787		—		254,787		522		(26,334)		228,975
Collateralized loan obligations	200,519		—		200,519		303		—		200,822
Private label commercial MBS	9,746		—		9,746		—		(467)		9,279
Asset-backed securities	13,242		—		13,242		7		—		13,249
SBA securities	3,634		—		3,634		—		(172)		3,462
Total (1)	$	2,646,414	$	(775)	$	2,645,639	$	5,309	$	(196,890)	$	2,454,058

_________________________

(1) Excludes accrued interest receivable of $11.4 million at December 31, 2025 which is recorded in "Other assets" on the consolidated balance sheets.

See "Note 11. Fair Value Measurements and Fair Value of Financial Instruments" for information on fair value measurements and methodology.

As of March 31, 2026, AFS securities with a fair value of $3.1 million were pledged as collateral solely for public deposits.

Realized Gains and Losses on Securities Available-for-Sale

The were no sales of AFS securities for the three months ended March 31, 2026 and 2025.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Unrealized Losses on Securities Available-for-Sale

The following tables present the gross unrealized losses and fair values of AFS securities that were in unrealized loss positions as of the dates indicated:


	March 31, 2026
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Security Type	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Agency residential MBS	$	—	$	—	$	811,661	$	(139,989)	$	811,661	$	(139,989)

Agency commercial MBS	18,951		(51)		32,030		(998)		50,981		(1,049)
Agency residential CMOs	748,392		(5,689)		83,847		(14,409)		832,239		(20,098)

Corporate debt securities	16,319		(181)		189,534		(14,441)		205,853		(14,622)
Private label residential CMOs	42,560		(286)		123,921		(26,671)		166,481		(26,957)
Collateralized loan obligations	24,913		(87)		—		—		24,913		(87)
Private label commercial MBS	—		—		8,270		(472)		8,270		(472)

SBA securities	—		—		3,060		(161)		3,060		(161)
Total	$	851,135	$	(6,294)	$	1,252,323	$	(197,141)	$	2,103,458	$	(203,435)


	December 31, 2025
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Security Type	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Agency residential MBS	$	—	$	—	$	834,085	$	(138,076)	$	834,085	$	(138,076)

Agency commercial MBS	4,994		(6)		32,006		(1,094)		37,000		(1,100)
Agency residential CMOs	70,270		(117)		101,501		(15,183)		171,771		(15,300)

Corporate debt securities	—		—		188,545		(15,441)		188,545		(15,441)
Private label residential CMOs	19,672		(8)		127,020		(26,326)		146,692		(26,334)

Private label commercial MBS	—		—		9,279		(467)		9,279		(467)

SBA securities	—		—		3,462		(172)		3,462		(172)
Total	$	94,936	$	(131)	$	1,295,898	$	(196,759)	$	1,390,834	$	(196,890)

At March 31, 2026, the Company evaluated all securities in an unrealized loss position to determine whether any portion of the unrealized losses were attributable to credit related factors. As a result of this assessment, an ACL of $0.8 million was recorded on one corporate debt security classified as AFS. For all other securities in unrealized loss position, the loss was attributable to changes in market interest rates and other market conditions, rather than credit deterioration of the underlying issuers. In making this determination, we considered several factors, including credit ratings and financial condition of the issuers, the seniority of the tranches, and any U.S. government agency guarantees. We do not intend to sell these securities, and it is not more likely than not that we will be required to sell them before recovery of their amortized cost basis. Therefore, no write-down to fair value through earnings was necessary. Except for the credit loss recognized above, the remaining unrealized losses continue to be recorded in accumulated other comprehensive loss within stockholders’ equity.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Contractual Maturities of Securities Available-for-Sale

The following tables present the contractual maturities of our AFS securities portfolio based on amortized cost and fair value as of the dates indicated:


	March 31, 2026
	Due Within		Due after One Year		Due After Five Years		Due After
Security Type	One Year		Through Five Years		Through Ten Years		Ten Years		Total
	(In thousands)
Amortized Cost:
Agency residential MBS	$	—	$	—	$	—	$	951,650	$	951,650

Agency commercial MBS	—		40,235		—		11,795		52,030
Agency residential CMOs	—		—		13,353		1,109,505		1,122,858

Corporate debt securities	—		69,888		176,587		—		246,475
Private label residential CMOs	—		—		—		259,984		259,984
Collateralized loan obligations	—		—		93,763		106,543		200,306
Private label commercial MBS	—		—		5,272		3,470		8,742
Asset-backed securities	—		—		—		12,637		12,637
SBA securities	—		—		3,221		—		3,221
Total Amortized Cost:	$	—	$	110,123	$	292,196	$	2,455,584	$	2,857,903
Fair Value:
Agency residential MBS	$	—	$	—	$	—	$	811,661	$	811,661

Agency commercial MBS	—		40,150		—		10,831		50,981
Agency residential CMOs	—		—		13,555		1,090,628		1,104,183

Corporate debt securities	—		67,935		164,023		—		231,958
Private label residential CMOs	—		—		—		233,184		233,184
Collateralized loan obligations	—		—		93,744		106,630		200,374
Private label commercial MBS	—		—		4,954		3,316		8,270
Asset-backed securities	—		—		—		12,661		12,661
SBA securities	—		—		3,060		—		3,060
Total Fair Value:	$	—	$	108,085	$	279,336	$	2,268,911	$	2,656,332

CMBS, CMOs, and MBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Securities Held-to-Maturity

The following tables present amortized cost, ACL, gross unrealized gains and losses, and fair values of HTM securities as of the dates indicated:


	March 31, 2026
	Amortized		Allowance for		Net Carrying		Gross Unrealized		Gross Unrealized		Fair
Security Type	Cost		Credit Losses		Amount		Gains		Losses		Value
	(In thousands)

Municipal securities	$	1,238,920	$	(20)	$	1,238,900	$	248	$	(35,299)	$	1,203,849
Agency commercial MBS	448,918		—		448,918		—		(21,671)		427,247
Private label commercial MBS	361,672		—		361,672		—		(13,197)		348,475
U.S. Treasury securities	193,784		—		193,784		—		(9,673)		184,111
Corporate debt securities	70,949		(675)		70,274		—		(6,956)		63,318





Total (1)	$	2,314,243	$	(695)	$	2,313,548	$	248	$	(86,796)	$	2,227,000

__________________________

(1) Excludes accrued interest receivable of $11.2 million at March 31, 2026 which is recorded in "Other assets" on the consolidated balance sheet

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	December 31, 2025
	Amortized		Allowance for		Net Carrying		Gross Unrealized		Gross Unrealized		Fair
Security Type	Cost		Credit Losses		Amount		Gains		Losses		Value
	(In thousands)

Municipal securities	$	1,237,792	$	(20)	$	1,237,772	$	2,052	$	(20,713)	$	1,219,111
Agency commercial MBS	447,283		—		447,283		—		(19,645)		427,638
Private label commercial MBS	360,382		—		360,382		—		(9,606)		350,776
U.S. Treasury securities	193,022		—		193,022		—		(7,934)		185,088
Corporate debt securities	70,852		(675)		70,177		—		(6,264)		63,913





Total (1)	$	2,309,331	$	(695)	$	2,308,636	$	2,052	$	(64,162)	$	2,246,526

__________________________

(1) Excludes accrued interest receivable of $13.4 million at December 31, 2025 which is recorded in "Other assets" on the consolidated balance sheets.

As of March 31, 2026, HTM securities with an amortized cost of $2.3 billion and a fair value of $2.2 billion were pledged as collateral primarily for the FRB secured line of credit and public deposits.

Allowance for Credit Losses on Securities Held-to-Maturity

Credit losses on HTM securities are recorded at the time of purchase, acquisition, or when the Company designates securities as HTM. The ACL on HTM securities is represents CECL that may be incurred over the life of the investment. Accrued interest receivable on HTM securities, which is included in "Other assets" on the consolidated balance sheets, is excluded from the estimate of expected credit losses. HTM U.S. Treasury securities and agency-backed MBS securities are considered to have no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The change in fair value in the HTM private label CMBS portfolio is solely driven by changes in interest rates. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates and, thus, there is no related ACL for this portfolio. The underlying bonds in the Company’s HTM municipal securities and HTM corporate debt securities portfolios are evaluated for credit losses in conjunction with management’s estimate of the ACL based primarily on credit ratings.

Securities Held-to-Maturity by Credit Quality Indicator

The Company uses Standard & Poor's, Moody's, Fitch, Kroll, and Egan Jones ratings as the credit quality indicators for its HTM securities. The following tables present our HTM securities portfolio by the lowest available credit rating as of the dates indicated:


	March 31, 2026
Security Type	AAA		AA+		AA		AA-		BBB		NR		Total
	(In thousands)
Amortized Cost:
Municipal securities	$	567,345	$	364,053	$	221,393	$	84,429	$	1,700	$	—	$	1,238,920
Agency commercial MBS	—		448,918		—		—		—		—		448,918
Private label commercial MBS	361,672		—		—		—		—		—		361,672
U.S. Treasury securities	—		193,784		—		—		—		—		193,784
Corporate debt securities	—		—		—		—		44,683		26,266		70,949
Total	$	929,017	$	1,006,755	$	221,393	$	84,429	$	46,383	$	26,266	$	2,314,243


	December 31, 2025
Security Type	AAA		AA+		AA		AA-		BBB		NR		Total
	(In thousands)
Amortized Cost:
Municipal securities	$	567,140	$	363,823	$	220,823	$	84,302	$	1,704	$	—	$	1,237,792
Agency commercial MBS	—		447,283		—		—		—		—		447,283
Private label commercial MBS	360,382		—		—		—		—		—		360,382
U.S. Treasury securities	—		193,022		—		—		—		—		193,022
Corporate debt securities	—		—		—		—		44,646		26,206		70,852
Total	$	927,522	$	1,004,128	$	220,823	$	84,302	$	46,350	$	26,206	$	2,309,331

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Contractual Maturities of Securities Held-to-Maturity

The following tables present the contractual maturities of our HTM securities portfolio based on amortized cost and fair value as of the date indicated:


	March 31, 2026
	Due Within		Due after One Year		Due After Five Years		Due After
Security Type	One Year		Through Five Years		Through Ten Years		Ten Years		Total
	(In thousands)
Amortized Cost:

Municipal securities	$	—	$	160,750	$	404,033	$	674,137	$	1,238,920
Agency commercial MBS	—		69,620		379,298		—		448,918
Private label commercial MBS	—		—		37,421		324,251		361,672
U.S. Treasury securities	—		—		193,784		—		193,784
Corporate debt securities	—		—		53,775		17,174		70,949





Total Amortized Cost:	$	—	$	230,370	$	1,068,311	$	1,015,562	$	2,314,243
Fair Value:

Municipal securities	$	—	$	158,795	$	394,729	$	650,325	$	1,203,849
Agency commercial MBS	—		67,053		360,194		—		427,247
Private label commercial MBS	—		—		36,235		312,240		348,475
U.S. Treasury securities	—		—		184,111		—		184,111
Corporate debt securities	—		—		48,945		14,373		63,318





Total Fair Value:	$	—	$	225,848	$	1,024,214	$	976,938	$	2,227,000

CMBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Interest Income on Investment Securities

The following table presents the composition of our interest income on investment securities for the periods indicated:


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Taxable interest	$	33,969	$	31,447
Non-taxable interest	4,362		4,517
Dividend income	3,542		1,898
Total interest income on investment securities	$	41,873	$	37,862

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 4. LOANS AND LEASES HELD FOR INVESTMENT

Our loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired and purchased loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are sold.

Loans and Leases Held for Investment

The following table summarizes the composition of our loans and leases HFI as of the dates indicated:


	March 31, 2026		December 31, 2025
	(In thousands)
Real estate mortgage	$	13,584,489	$	13,846,097
Real estate construction and land (1)	1,903,999		1,959,591
Commercial	9,048,610		8,994,466
Consumer	346,015		355,333
Total gross loans and leases HFI	24,883,113		25,155,487
Unearned discounts, net (2)	(67,640)		(86,061)
Deferred fees, net	(35,126)		(36,747)
Total loans and leases HFI	24,780,347		25,032,679
Allowance for loan and lease losses	(241,600)		(245,612)
Total loans and leases HFI, net (3)	$	24,538,747	$	24,787,067

____________________

(1) Includes land and acquisition and development loans of $217.8 million and $214.5 million at March 31, 2026 and December 31, 2025.

(2) Represents net acquisition discounts of $143.0 million and net purchase premiums of $75.4 million at March 31, 2026, and net acquisition discounts of $158.5 million and net purchase premiums of $72.4 million at December 31, 2025.

(3) Excludes accrued interest receivable of $106.2 million and $104.3 million at March 31, 2026 and December 31, 2025, respectively, which is recorded in "Other assets" on the consolidated balance sheets.

The following tables present an aging analysis of our loans and leases HFI by loan portfolio segment and class as of the dates indicated:


	March 31, 2026
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	10,828	$	41,058	$	51,886	$	4,041,500	$	4,093,386
Multi-family	32,843		2,536		35,379		5,919,723		5,955,102
Other residential	41,333		37,472		78,805		3,379,605		3,458,410
Total real estate mortgage	85,004		81,066		166,070		13,340,828		13,506,898
Real estate construction and land:
Commercial	32,925		—		32,925		331,650		364,575
Residential	140,687		—		140,687		1,387,067		1,527,754
Total real estate construction and land	173,612		—		173,612		1,718,717		1,892,329
Commercial:
Asset-based	509		—		509		3,208,829		3,209,338
Venture capital	595		—		595		2,321,666		2,322,261
Other commercial (1)	1,501		(115)		1,386		3,500,002		3,501,388
Total commercial	2,605		(115)		2,490		9,030,497		9,032,987
Consumer	2,309		648		2,957		345,176		348,133
Total	$	263,530	$	81,599	$	345,129	$	24,435,218	$	24,780,347

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	December 31, 2025
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	10,498	$	46,506	$	57,004	$	4,257,633	$	4,314,637
Multi-family	32,887		2,536		35,423		6,053,994		6,089,417
Other residential	34,319		42,780		77,099		3,269,634		3,346,733
Total real estate mortgage	77,704		91,822		169,526		13,581,261		13,750,787
Real estate construction and land:
Commercial	—		—		—		379,387		379,387
Residential	26,540		—		26,540		1,541,700		1,568,240
Total real estate construction and land	26,540		—		26,540		1,921,087		1,947,627
Commercial:
Asset-based	1,142		—		1,142		2,949,868		2,951,010
Venture capital	—		—		—		2,222,097		2,222,097
Other commercial	984		104		1,088		3,803,011		3,804,099
Total commercial	2,126		104		2,230		8,974,976		8,977,206
Consumer	1,933		729		2,662		354,397		357,059
Total	$	108,303	$	92,655	$	200,958	$	24,831,721	$	25,032,679

Our policy is to discontinue accruing interest when principal or interest payments are past due 90 days or more, unless the loan is both well secured and in the process of collection, or when collectability is otherwise in doubt in the normal course of business. Interest income on nonaccrual loans is recognized only as cash is received and when the loan's principal balance is deemed collectible.

The following table presents our nonaccrual and performing loans and leases HFI by loan portfolio segment and class as of the dates indicated:


	March 31, 2026						December 31, 2025
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	87,548	$	4,005,838	$	4,093,386	$	93,334	$	4,221,303	$	4,314,637
Multi-family	13,200		5,941,902		5,955,102		3,358		6,086,059		6,089,417
Other residential	53,489		3,404,921		3,458,410		57,984		3,288,749		3,346,733
Total real estate mortgage	154,237		13,352,661		13,506,898		154,676		13,596,111		13,750,787
Real estate construction and land:
Commercial	—		364,575		364,575		—		379,387		379,387
Residential	—		1,527,754		1,527,754		—		1,568,240		1,568,240
Total real estate construction and land	—		1,892,329		1,892,329		—		1,947,627		1,947,627
Commercial:
Asset-based	—		3,209,338		3,209,338		—		2,951,010		2,951,010
Venture capital	28,792		2,293,469		2,322,261		625		2,221,472		2,222,097
Other commercial	1,642		3,499,746		3,501,388		2,510		3,801,589		3,804,099
Total commercial	30,434		9,002,553		9,032,987		3,135		8,974,071		8,977,206
Consumer	1,063		347,070		348,133		1,357		355,702		357,059
Total	$	185,734	$	24,594,613	$	24,780,347	$	159,168	$	24,873,511	$	25,032,679

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

At March 31, 2026, nonaccrual loans and leases included $81.6 million of loans and leases 90 or more days past due, $28.4 million of loans 30 to 89 days past due, and $75.7 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectability. At December 31, 2025, nonaccrual loans and leases included $92.7 million of loans and leases 90 or more days past due, $15.3 million of loans 30 to 89 days past due, and $51.2 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectability. As of March 31, 2026, a few of our largest loan relationships on nonaccrual status had an aggregate carrying value of $62.9 million and represented 34% of total nonaccrual loans and leases.

The following tables present the credit risk rating categories for loans and leases HFI by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	March 31, 2026
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	284,897	$	119,711	$	3,688,778	$	4,093,386
Multi-family	239,739		82,083		5,633,280		5,955,102
Other residential	53,587		—		3,404,823		3,458,410
Total real estate mortgage	578,223		201,794		12,726,881		13,506,898
Real estate construction and land:
Commercial	32,925		—		331,650		364,575
Residential	—		363,100		1,164,654		1,527,754
Total real estate construction and land	32,925		363,100		1,496,304		1,892,329
Commercial:
Asset-based	35,473		10,792		3,163,073		3,209,338
Venture capital	172,496		103,592		2,046,173		2,322,261
Other commercial	22,410		4,374		3,474,604		3,501,388
Total commercial	230,379		118,758		8,683,850		9,032,987
Consumer	1,307		5,007		341,819		348,133
Total	$	842,834	$	688,659	$	23,248,854	$	24,780,347


	December 31, 2025
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	297,606	$	126,998	$	3,890,033	$	4,314,637
Multi-family	166,385		216,286		5,706,746		6,089,417
Other residential	58,202		—		3,288,531		3,346,733
Total real estate mortgage	522,193		343,284		12,885,310		13,750,787
Real estate construction and land:
Commercial	52,828		—		326,559		379,387
Residential	2,982		10,714		1,554,544		1,568,240
Total real estate construction and land	55,810		10,714		1,881,103		1,947,627
Commercial:
Asset-based	36,732		7,180		2,907,098		2,951,010
Venture capital	171,847		64,577		1,985,673		2,222,097
Other commercial	12,143		27,689		3,764,267		3,804,099
Total commercial	220,722		99,446		8,657,038		8,977,206
Consumer	1,605		5,239		350,215		357,059
Total	$	800,330	$	458,683	$	23,773,666	$	25,032,679

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following table presents our nonaccrual loans and leases by loan portfolio segment and class and by with and without an allowance recorded as of the date indicated and interest income recognized on nonaccrual loans and leases for the periods indicated:




	At and For the Three Months Ended
	March 31, 2026				March 31, 2025
	Nonaccrual		Interest			Nonaccrual		Interest
	Recorded		Income			Recorded		Income
	Investment		Recognized			Investment		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	122	$	—		$	7,318	$	—

Other residential	131		—			167		—



Commercial:
Asset-based	—		—			1,343		—
Venture capital	28,792		—			163		—
Other commercial	1,176		—			4,254		—
Consumer	1,063		—			992		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	87,426	$	13		$	124,277	$	5
Multi-family	13,200		—			22,614		—
Other residential	53,358		—			44,572		—



Commercial:
Asset-based	—		—			2,297		—

Other commercial	466		6			5,483		—

Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	154,237	$	13		$	198,948	$	5

Commercial	30,434		6			13,540		—
Consumer	1,063		—			992		—
Total	$	185,734	$	19		$	213,480	$	5

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following tables present our loans HFI by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the dates indicated:


															Revolving
															Converted
Amortized Cost Basis	Term Loans by Origination Year												Revolving		to Term
March 31, 2026	2026		2025		2024		2023		2022		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	18,611	$	1,167	$	2,774	$	16,800	$	107,198	$	—	$	—	$	146,550
3-4.5 Pass	55,245		425,393		150,473		114,275		765,909		1,988,705		36,813		5,415		3,542,228
5 Special mention	—		—		1,282		364		26,824		68,179		—		23,062		119,711
6-8 Classified	—		—		23,823		27,447		99,692		133,935		—		—		284,897
Total	$	55,245	$	444,004	$	176,745	$	144,860	$	909,225	$	2,298,017	$	36,813	$	28,477	$	4,093,386
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	5,100	$	—	$	—	$	—	$	5,100

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	55,361	$	288,812	$	—	$	—	$	344,173
3-4.5 Pass	46,641		429,496		109,536		54,399		2,118,530		2,527,738		2,767		—		5,289,107
5 Special mention	—		10,435		—		3,789		10,078		57,781		—		—		82,083
6-8 Classified	—		—		20,000		1,619		152,968		65,152		—		—		239,739
Total	$	46,641	$	439,931	$	129,536	$	59,807	$	2,336,937	$	2,939,483	$	2,767	$	—	$	5,955,102
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	81,896		827,189		31,771		22,911		260,590		2,074,718		105,748		—		3,404,823
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		4,726		2,521		399		15,802		29,149		990		—		53,587
Total	$	81,896	$	831,915	$	34,292	$	23,310	$	276,392	$	2,103,867	$	106,738	$	—	$	3,458,410
Current YTD period:
Gross charge-offs	$	—	$	44	$	—	$	—	$	217	$	13	$	—	$	—	$	274

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2026	2026		2025		2024		2023		2022		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	6,481		160,994		55,217		53,159		11,439		44,360		—		—		331,650
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		—		—		—		32,925		—		—		—		32,925
Total	$	6,481	$	160,994	$	55,217	$	53,159	$	44,364	$	44,360	$	—	$	—	$	364,575
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	8,077	$	—	$	—	$	—	$	8,077

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	9,048		123,998		211,867		158,383		464,592		99,284		97,482		—		1,164,654
5 Special mention	—		16,200		12,017		—		155,694		179,189		—		—		363,100
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	9,048	$	140,198	$	223,884	$	158,383	$	620,286	$	278,473	$	97,482	$	—	$	1,527,754
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	—	$	40,647	$	26,869	$	21,040	$	118,521	$	338,497	$	99,846	$	—	$	645,420
3-4.5 Pass	50,749		340,686		26,347		74,952		133,111		73,661		1,818,147		—		2,517,653
5 Special mention	—		—		—		—		—		636		10,156		—		10,792
6-8 Classified	—		5,580		—		193		5,527		—		24,173		—		35,473
Total	$	50,749	$	386,913	$	53,216	$	96,185	$	257,159	$	412,794	$	1,952,322	$	—	$	3,209,338
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(100)	$	(231)	$	(114)	$	(79)	$	—	$	—	$	135,372	$	22,201	$	157,049
3-4.5 Pass	75,782		108,690		74,750		38,172		23,364		56,085		1,482,614		29,667		1,889,124
5 Special mention	—		25,968		17,269		26,276		1,176		5,881		24,517		2,505		103,592
6-8 Classified	—		—		30,596		38,154		44,305		11,687		47,754		—		172,496
Total	$	75,682	$	134,427	$	122,501	$	102,523	$	68,845	$	73,653	$	1,690,257	$	54,373	$	2,322,261
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2026	2026		2025		2024		2023		2022		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	(48)	$	2,797	$	870	$	164	$	19,371	$	142	$	53,053	$	45	$	76,394
3-4.5 Pass	53,734		222,688		47,880		70,567		44,992		288,696		2,638,792		30,861		3,398,210
5 Special mention	—		—		—		—		—		639		3,721		14		4,374
6-8 Classified	—		—		—		—		7,051		497		13,354		1,508		22,410
Total	$	53,686	$	225,485	$	48,750	$	70,731	$	71,414	$	289,974	$	2,708,920	$	32,428	$	3,501,388
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	112	$	1,326	$	178	$	121	$	1,737

Consumer
Internal risk rating:
1-2 High pass	$	—	$	61	$	—	$	—	$	12	$	5	$	383	$	—	$	461
3-4.5 Pass	12,259		26,197		21,764		12,727		49,032		216,909		2,365		105		341,358
5 Special mention	—		—		—		—		693		4,314		—		—		5,007
6-8 Classified	—		—		—		—		288		772		—		247		1,307
Total	$	12,259	$	26,258	$	21,764	$	12,727	$	50,025	$	222,000	$	2,748	$	352	$	348,133
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	909	$	—	$	—	$	909

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	(148)	$	61,885	$	28,792	$	23,899	$	210,065	$	734,654	$	288,654	$	22,246	$	1,370,047
3-4.5 Pass	391,835		2,665,331		729,605		599,545		3,871,559		7,370,156		6,184,728		66,048		21,878,807
5 Special mention	—		52,603		30,568		30,429		194,465		316,619		38,394		25,581		688,659
6-8 Classified	—		10,306		76,940		67,812		358,558		241,192		86,271		1,755		842,834
Total	$	391,687	$	2,790,125	$	865,905	$	721,685	$	4,634,647	$	8,662,621	$	6,598,047	$	115,630	$	24,780,347
Current YTD period:
Gross charge-offs	$	—	$	44	$	—	$	—	$	13,506	$	2,248	$	178	$	121	$	16,097

______________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


															Revolving
															Converted
Amortized Cost Basis	Term Loans by Origination Year												Revolving		to Term
December 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	14,708	$	3,470	$	2,787	$	23,377	$	33,027	$	77,427	$	—	$	—	$	154,796
3-4.5 Pass	430,807		181,597		121,685		781,194		608,067		1,544,708		61,764		5,415		3,735,237
5 Special mention	—		—		—		23,072		43,724		37,155		—		23,047		126,998
6-8 Classified	—		23,880		27,514		57,759		53,699		134,754		—		—		297,606
Total	$	445,515	$	208,947	$	151,986	$	885,402	$	738,517	$	1,794,044	$	61,764	$	28,462	$	4,314,637
Current YTD period:
Gross charge-offs	$	—	$	—	$	51	$	2,416	$	613	$	16,650	$	—	$	—	$	19,730

Real Estate Mortgage:
Multi-family
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	53,190	$	175,257	$	155,222	$	—	$	—	$	383,669
3-4.5 Pass	429,017		131,377		54,475		2,126,937		1,120,759		1,459,061		1,451		—		5,323,077
5 Special mention	10,472		28,948		5,412		97,980		28,727		44,747		—		—		216,286
6-8 Classified	—		19,989		—		64,972		28,372		53,052		—		—		166,385
Total	$	439,489	$	180,314	$	59,887	$	2,343,079	$	1,353,115	$	1,712,082	$	1,451	$	—	$	6,089,417
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	3,275	$	—	$	—	$	3,275

Real Estate Mortgage:
Other residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	752,817		40,271		22,332		263,745		2,015,936		91,935		101,495		—		3,288,531
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	1,122		—		543		28,599		26,712		228		998		—		58,202
Total	$	753,939	$	40,271	$	22,875	$	292,344	$	2,042,648	$	92,163	$	102,493	$	—	$	3,346,733
Current YTD period:
Gross charge-offs	$	—	$	—	$	145	$	2,624	$	733	$	—	$	—	$	—	$	3,502

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	123,586		51,969		64,663		44,365		40,315		1,661		—		—		326,559
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		—		—		52,828		—		—		—		—		52,828
Total	$	123,586	$	51,969	$	64,663	$	97,193	$	40,315	$	1,661	$	—	$	—	$	379,387
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	20,196	$	1,340	$	—	$	—	$	—	$	21,536

Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4.5 Pass	100,284		189,207		196,046		705,647		188,284		80,625		94,451		—		1,554,544
5 Special mention	—		—		—		4,308		6,406		—		—		—		10,714
6-8 Classified	—		—		—		—		2,982		—		—		—		2,982
Total	$	100,284	$	189,207	$	196,046	$	709,955	$	197,672	$	80,625	$	94,451	$	—	$	1,568,240
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	41,364	$	29,359	$	23,020	$	122,112	$	185,978	$	197,800	$	204,041	$	—	$	803,674
3-4.5 Pass	355,855		40,478		77,608		144,338		72,205		8,625		1,404,315		—		2,103,424
5 Special mention	—		—		—		—		—		—		7,180		—		7,180
6-8 Classified	5,650		—		194		5,564		—		—		25,324		—		36,732
Total	$	402,869	$	69,837	$	100,822	$	272,014	$	258,183	$	206,425	$	1,640,860	$	—	$	2,951,010
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(279)	$	(75)	$	(67)	$	—	$	—	$	—	$	138,159	$	22,167	$	159,905
3-4.5 Pass	113,608		93,269		60,589		25,483		47,321		16,979		1,437,845		30,674		1,825,768
5 Special mention	19,964		(4)		21,986		—		—		—		22,044		587		64,577
6-8 Classified	625		33,631		33,431		46,535		12,484		—		45,141		—		171,847
Total	$	133,918	$	126,821	$	115,939	$	72,018	$	59,805	$	16,979	$	1,643,189	$	53,428	$	2,222,097
Current YTD period:
Gross charge-offs	$	993	$	—	$	—	$	—	$	5,257	$	—	$	—	$	—	$	6,250

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2025	2025		2024		2023		2022		2021		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	2,929	$	903	$	172	$	20,124	$	611	$	(61)	$	53,892	$	(1)	$	78,569
3-4.5 Pass	226,226		51,373		61,827		44,555		167,436		135,630		2,969,078		29,573		3,685,698
5 Special mention	—		—		9,022		5,062		779		85		12,147		594		27,689
6-8 Classified	—		2,447		—		2,918		44		1,271		4,414		1,049		12,143
Total	$	229,155	$	54,723	$	71,021	$	72,659	$	168,870	$	136,925	$	3,039,531	$	31,215	$	3,804,099
Current YTD period:
Gross charge-offs	$	—	$	—	$	1,393	$	727	$	228	$	2,039	$	11,596	$	744	$	16,727

Consumer
Internal risk rating:
1-2 High pass	$	66	$	—	$	—	$	14	$	7	$	—	$	489	$	—	$	576
3-4.5 Pass	28,736		24,251		13,618		51,008		149,047		79,026		3,809		144		349,639
5 Special mention	—		—		—		1,029		2,964		1,246		—		—		5,239
6-8 Classified	—		—		—		151		349		853		—		252		1,605
Total	$	28,802	$	24,251	$	13,618	$	52,202	$	152,367	$	81,125	$	4,298	$	396	$	357,059
Current YTD period:
Gross charge-offs	$	—	$	—	$	92	$	1,104	$	1,892	$	1,395	$	1	$	1	$	4,485

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	58,788	$	33,657	$	25,912	$	218,817	$	394,880	$	430,388	$	396,581	$	22,166	$	1,581,189
3-4.5 Pass	2,560,936		803,792		672,843		4,187,272		4,409,370		3,418,250		6,074,208		65,806		22,192,477
5 Special mention	30,436		28,944		36,420		131,451		82,600		83,233		41,371		24,228		458,683
6-8 Classified	7,397		79,947		61,682		259,326		124,642		190,158		75,877		1,301		800,330
Total	$	2,657,557	$	946,340	$	796,857	$	4,796,866	$	5,011,492	$	4,122,029	$	6,588,037	$	113,501	$	25,032,679
Current YTD period:
Gross charge-offs	$	993	$	—	$	1,681	$	27,067	$	10,063	$	23,359	$	11,597	$	745	$	75,505

____________________

(1) Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Loan Modifications

The following table presents our loan modifications to our HFI loans and leases granted to borrowers experiencing financial difficulty by type of modification for the year indicated with balances as of the dates indicated:


	Amortized Cost Basis at March 31, 2026
					Term Extension		Term Extension,				% of
	Term		Payment		and Interest		Payment Delay,				Total
	Extension		Delay		Rate Reduction		and Forgiveness		Total		Loans
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	54,888	$	967	$	—	$	44,160	$	100,015	2.4	%
Multi-family	28,048		—		—		—		28,048		0.5	%




Commercial:

Venture capital	28,792		—		—		—		28,792		1.2	%
Other commercial	216		147		63		—		426		—	%

Total	$	111,944	$	1,114	$	63	$	44,160	$	157,281


	Amortized Cost Basis at March 31, 2025
							Term Extension,
					Term Extension		Interest Rate				% of
	Term		Payment		and Interest		Reduction, and				Total
	Extension		Delay		Rate Reduction		Payment Delay		Total		Loans
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	61,021	$	1,599	$	—	$	—	$	62,620	1.4	%
Multi-family	39,472		—		—		—		39,472		0.6	%
Other residential	972		2,500		—		—		3,472		0.1	%
Real estate construction and land:

Residential	3,120		—		—		—		3,120		0.1	%
Commercial:
Asset-based	2,296		—		—		—		2,296		0.1	%
Venture capital	7,393		—		—		—		7,393		0.4	%
Other commercial	2,154		—		355		146		2,655		0.1	%

Total	$	116,428	$	4,099	$	355	$	146	$	121,028

The following tables present the financial effect of our loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated:


	Weighted Average for the Three Months Ended March 31, 2026
			Term Extension and
	Term Extension	Payment Delay	Interest Rate Reduction
	(in months)	(in months)	(in months)	(in % points)

Real estate mortgage:
Commercial	10	6	—	—
Multi-family	6	—	—	—




Commercial:

Venture capital	8	—	—	—
Other commercial	65	2	15	3.50	%

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	Weighted Average for the Three Months Ended March 31, 2025
			Term Extension and
	Term Extension	Payment Delay	Interest Rate Reduction
	(in months)	(in months)	(in months)	(in % points)
Real estate mortgage:
Commercial	13	6	—	—
Multi-family	5	—	—	—
Other residential	9	3	—	—
Real estate construction and land:
Residential	12	—	—	—
Commercial:
Asset-based	10	—	—	—
Venture capital	12	—	—	—
Other commercial	16	—	56	1.95	%

The following outlines the weighted average financial effects of our combination loan modifications for borrowers experiencing financial difficulties.

Combination - term extension, payment delay, and principal forgiveness. Regarding the combination of term extensions, payment delays, and principal forgiveness, the weighted average financial effect for the three months ended March 31, 2026 for CRE loans included a 64 months maturity extension, a reduced rate of 1.65%, and principal forgiveness of $8.1 million.

Combination - term extension, payment delay, and interest rate reduction. For the three months ended March 31, 2025, other commercial loans included a 61 months maturity extension, a reduced rate of 5.75%, and payment deferrals of 3 months.

The following tables present the payment status of loans that were modified during the preceding 12-month period, with related amortized cost balances, as of the dates indicated:


	Payment Status (Amortized Cost Basis) at March 31, 2026
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	152,377	$	1,949	$	—	$	154,326
Multi-family	43,276		—		—		43,276
Other residential	1,469		—		—		1,469



Commercial:
Asset-based	29,755		—		—		29,755
Venture capital	61,110		—		—		61,110
Other commercial	858		326		—		1,184
Consumer	247		—		—		247
Total	$	289,092	$	2,275	$	—	$	291,367

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	Payment Status (Amortized Cost Basis) at March 31, 2025
			30-89 Days		90 or More Days
	Current		Past Due		Past Due		Total
	(In thousands)
Real estate mortgage:
Commercial	$	186,826	$	—	$	7,130	$	193,956
Multi-family	39,472		—		—		39,472
Other residential	4,142		—		727		4,869
Real estate construction and land:

Residential	3,120		—		—		3,120
Commercial:
Asset-based	2,296		—		—		2,296
Venture capital	13,116		—		—		13,116
Other commercial	3,246		1,399		—		4,645
Consumer	8		—		—		8
Total	$	252,226	$	1,399	$	7,857	$	261,482

The following tables present information on loans that defaulted during the periods indicated, which had been modified during the preceding 12-month period, with related amortized cost balances as of the dates indicated:



	Amortized Cost Basis at March 31, 2026
			Combination - Term
Loan Modifications That Subsequently Defaulted			Extension and
for the Three Months Ended March 31, 2026	Term Extension		Rate Reduction		Total
	(In thousands)







Commercial:


Other commercial	$	15	$	180	$	195

Total	$	15	$	180	$	195



		Amortized Cost Basis
Loan Modifications That Subsequently Defaulted	at March 31, 2025
for the Three Months Ended March 31, 2025		Term Extension
		(In thousands)







Commercial:


Other commercial		$	1,399

Total		$	1,399

Leases Receivable

We provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet, but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for ACL. See "Note 7. Leases" for information regarding operating leases where we are the lessor.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following table provides the components of leases receivable income for the periods indicated:


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	3,552	$	4,055

The following table presents the components of leases receivable as of the dates indicated:


	March 31, 2026		December 31, 2025
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	164,392	$	151,719
Unguaranteed residual assets	19,675		19,921
Deferred costs and other	2,355		1,793
Aggregate net investment in leases	$	186,422	$	173,433

The following table presents maturities of leases receivable as of the date indicated:


	March 31, 2026
	(In thousands)
Period ending December 31,
2026	$	48,781
2027	52,268
2028	39,255
2029	32,246
2030	7,308
Thereafter	3,828
Total undiscounted cash flows	183,686
Less: Unearned income	(19,294)
Present value of lease payments	$	164,392

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Allowance for Credit Losses

The ACL is the combination of the ALLL and the reserve for unfunded loan commitments. The reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the consolidated balance sheets.

The following tables present a summary of the activity in the ALLL on loans and leases HFI by loan portfolio segment for the periods indicated:
















	Three Months Ended March 31, 2026
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	137,401	$	8,849	$	86,087	$	13,275	$	245,612
Charge-offs	(5,374)		(8,077)		(1,737)		(909)		(16,097)
Recoveries	802		—		1,307		176		2,285
Net charge-offs	(4,572)		(8,077)		(430)		(733)		(13,812)
Provision	(1,315)		9,623		1,158		334		9,800
Balance, end of period	$	131,514	$	10,395	$	86,815	$	12,876	$	241,600

Ending Allowance by Evaluation Methodology:
Individually evaluated	$	—	$	—	$	2,200	$	—	$	2,200
Collectively evaluated	$	131,514	$	10,395	$	84,615	$	12,876	$	239,400

Ending Loans and Leases by Evaluation Methodology:
Individually evaluated	$	153,985	$	—	$	29,258	$	—	$	183,243
Collectively evaluated	13,352,913		1,892,329		9,003,729		348,133		24,597,104
Ending balance	$	13,506,898	$	1,892,329	$	9,032,987	$	348,133	$	24,780,347
















	Three Months Ended March 31, 2025
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	145,754	$	10,940	$	67,833	$	14,833	$	239,360
Charge-offs	(5,789)		—		(9,582)		(1,180)		(16,551)
Recoveries	311		—		2,104		62		2,477
Net charge-offs	(5,478)		—		(7,478)		(1,118)		(14,074)
Provision	(10,160)		3,184		15,634		1,042		9,700
Balance, end of period	$	130,116	$	14,124	$	75,989	$	14,757	$	234,986

Ending Allowance by Evaluation Methodology:
Individually evaluated	$	1,702	$	—	$	1,625	$	—	$	3,327
Collectively evaluated	$	128,414	$	14,124	$	74,364	$	14,757	$	231,659

Ending Loans and Leases by Evaluation Methodology:
Individually evaluated	$	198,839	$	—	$	11,371	$	—	$	210,210
Collectively evaluated	13,293,819		2,861,038		7,367,428		394,032		23,916,317
Ending balance	$	13,492,658	$	2,861,038	$	7,378,799	$	394,032	$	24,126,527

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The ALLL decreased by $4.0 million in the first quarter of 2026 to $241.6 million compared to the fourth quarter, due primarily to a $9.8 million provision and net charge-offs of $13.8 million.

For additional information regarding the calculation of the ALLL using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see "Note 1. Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment" of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans HFI by collateral type as of the following dates:


	March 31, 2026		December 31, 2025
	Real					Real		Business
	Property			Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	156,275		$	156,275	$	155,233	$	—	$	155,233

Commercial	—			—		—		625		625

Total	$	156,275		$	156,275	$	155,233	$	625	$	155,858

The following tables present a summary of the activity in the ACL for the periods indicated:


	Three Months Ended March 31, 2026
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	245,612	$	34,921	$	280,533
Charge-offs	(16,097)		—		(16,097)
Recoveries	2,285		—		2,285
Net charge-offs	(13,812)		—		(13,812)
Provision	9,800		—		9,800
Balance, end of period	$	241,600	$	34,921	$	276,521
















	Three Months Ended March 31, 2025
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	239,360	$	29,071	$	268,431
Charge-offs	(16,551)		—		(16,551)
Recoveries	2,477		—		2,477
Net charge-offs	(14,074)		—		(14,074)
Provision	9,700		500		10,200
Balance, end of period	$	234,986	$	29,571	$	264,557

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill represents the excess of purchase consideration over the fair value of identifiable net assets acquired in a business combination. Goodwill and other intangible assets with indefinite useful lives are not amortized but are assessed for impairment at least annually. The carrying amount of goodwill was $214.5 million as of March 31, 2026 and December 31, 2025. For additional information regarding the calculation of goodwill and other intangibles see "Note 1. Nature of Operations and Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets" in Item 8 of the Form 10-K.

Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized on an accelerated basis over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or customer relationships acquired.

The following table presents the carrying amounts of CDI and CRI and the related accumulated amortization for the periods indicated:


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Gross Amount of CDI and CRI:
Balance, beginning and end of period	$	178,764	$	178,764


Accumulated Amortization:
Balance, beginning of period	(73,477)		(45,820)
Amortization expense	(6,196)		(7,007)

Balance, end of period	(79,673)		(52,827)
Net CDI and CRI, end of period	$	99,091	$	125,937

The following table presents the estimated aggregate future amortization expense for our current CDI and CRI as of the date indicated:


	March 31, 2026
	(In thousands)
Period ending December 31,
2026	$	18,216
2027	21,166
2028	17,920
2029	14,675
2030	11,430
Thereafter	15,684
Net CDI and CRI	$	99,091

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 6. OTHER ASSETS

The following table presents the detail of our other assets as of the dates indicated:


Other Assets	March 31, 2026		December 31, 2025
	(In thousands)
Investments:
LIHTC investments	$	249,237	$	259,780
SBIC investments	122,602		121,072
Alternative energy partnerships (HLBV investments)	16,219		16,354
Other equity and CRA investments	155,060		150,048
Total investments	543,118		547,254
Interest receivable	134,032		131,429
Operating lease ROU assets, net (1)	97,034		99,205
Prepaid expenses	32,993		33,829
Taxes receivable	—		8,385
Foreclosed assets, net	18,055		17,115
Equity warrants (2)	3,363		3,437
Other receivables/assets	50,685		44,108
Total other assets	$	879,280	$	884,762

____________________

(1) See "Note 7. Leases" for further details regarding the operating lease ROU assets.

(2) See "Note 11. Fair Value Measurements and Fair Value of Financial Instruments" for information regarding equity warrants.

NOTE 7. LEASES

Operating Leases as a Lessee

Our lease expense is a component of "Occupancy expense" on our consolidated statements of earnings. The following table presents the components of lease expense for the periods indicated:


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Operating lease expense:
Fixed costs	$	6,944	$	6,969
Variable costs	47		112
Short-term lease costs	252		235
Sublease income	(1,066)		(1,132)
Net lease expense	$	6,177	$	6,184

The following table presents supplemental cash flow information related to leases for the periods indicated:


	Three Months Ended March 31,

	2026		2025
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,848	$	8,323
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,546	$	3,942

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following table presents supplemental balance sheet and other information related to operating leases as of the dates indicated:


	March 31, 2026			December 31, 2025
	(Dollars in thousands)
Operating leases:
Operating lease ROU assets, net	$	97,034		$	99,205
Operating lease liabilities	$	117,416		$	120,587

Weighted average remaining lease term (in years)	5.6			5.8
Weighted average discount rate	3.80		%	3.79		%

The following table presents the maturities of operating lease liabilities as of the date indicated:


	March 31, 2026
	(In thousands)
Period ending December 31,
2026	$	23,655
2027	26,089
2028	22,476
2029	17,918
2030	14,112
Thereafter	26,823
Total operating lease liabilities	131,073
Less: Imputed interest	(13,657)
Present value of operating lease liabilities	$	117,416

Operating Leases as a Lessor

We provide equipment financing to our customers through operating leases where we facilitate the purchase of equipment leased to our customers. The equipment is shown on the consolidated balance sheets as "Equipment leased to others under operating leases" and is depreciated to its estimated residual value at the end of the lease term, shown as "Leased equipment depreciation" in the consolidated statements of earnings. Periodic lease payments received under the leases, are recorded as "Leased equipment income" in the consolidated statements of earnings. The valuation of equipment is tested periodically for impairment. No impairment was recorded on "Equipment leased to others under operating leases" during the three months ended March 31, 2026 and 2025.

The following table presents the contractual rental payments to be received on operating leases as of the date indicated:


	March 31, 2026
	(In thousands)
Period ending December 31,
2026	$	22,514
2027	27,749
2028	26,830
2029	24,898
2030	18,246
Thereafter	27,737
Total undiscounted cash flows	$	147,974

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 8. BORROWINGS AND SUBORDINATED DEBT

Borrowings

The following table summarizes our borrowings as of the dates indicated:


	March 31, 2026				December 31, 2025
			Weighted				Weighted

Borrowing Type	Balance		Average Rate		Balance		Average Rate
	(Dollars in thousands)
FHLB secured advances	$	2,000,000	3.91	%	$	1,710,185	3.90	%
Other short-term borrowings	440,000		3.68	%	240,000		3.69	%
Credit-linked notes	111,250		14.41	%	113,634		14.63	%
Total borrowings, net	$	2,551,250	4.33	%	$	2,063,819	4.47	%

The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, the FRBSF, and other financial institutions.

FHLB Secured Line of Credit. The Bank had secured financing capacity with the FHLB of $6.9 billion as of March 31, 2026, collateralized by a blanket lien on $10.1 billion of qualifying loans and $19.8 million of securities. As of March 31, 2026, there were $476.0 million in letters of credit pledged and a $2.0 billion balance outstanding. As of December 31, 2025, there were $514.1 million in letters of credit pledged and a $1.7 billion balance outstanding.

The following table presents the interest rates and maturity dates of FHLB secured advances as of the date indicated:


	March 31, 2026
					Maturity
FHLB Secured Advances	Balance		Rate		Date
	(Dollars in thousands)

Term advance	$	100,000	3.95	%	05/21/2026
Term advance	150,000		3.95	%	05/26/2026
Term advance	100,000		3.94	%	07/27/2026
Term advance	150,000		3.95	%	07/30/2026
Term advance (1)	150,000		4.59	%	06/26/2026
Term advance	100,000		3.79	%	02/01/2027
Term advance	100,000		3.79	%	03/01/2027
Term advance	100,000		3.78	%	04/01/2027
Term advance (1)	150,000		4.63	%	05/28/2027
Term advance (1)	150,000		4.63	%	06/03/2027
Term advance (1)	150,000		4.39	%	06/03/2027
Term advance	100,000		3.88	%	06/24/2027
Term advance (1)	500,000		3.18	%	09/18/2034
Total FHLB secured advances	$	2,000,000	3.91	%

___________________

(1) Represents FHLB term advances that include a put feature, which allows the FHLB to terminate the advance before its scheduled maturity date.

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of March 31, 2026, the Bank had secured borrowing capacity of $5.3 billion collateralized by liens covering $5.0 billion of qualifying loans and $1.4 billion of securities. As of March 31, 2026 and December 31, 2025, there were no balances outstanding.

Holding Company Line of Credit Arrangement. As of March 31, 2026, we have a $100.0 million unsecured revolving line of credit available. The rate is based on 1-month SOFR plus a spread of 2.25% basis points. As of March 31, 2026 and December 31, 2025, there was no balance outstanding.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Credit-Linked Notes. On September 29, 2022, legacy Pacific Western Bank completed a credit-linked notes transaction. The notes were issued in five classes, each with an interest rate of SOFR plus a spread that ranges from 8.00% to 13.25%, with a weighted average spread of 10.75% at March 31, 2026. The notes are linked to the credit risk of an approximately $2.1 billion reference pool of previously purchased SFR mortgage loans at March 31, 2026. The notes are due June 27, 2052. Principal payments on the notes are based only on principal that is actually collected on these loans. The notes are reported at fair value of $111.3 million at March 31, 2026. See "Note 2. Restricted Cash" for information regarding the collateral for the notes and "Note 11. Fair Value Measurements and Fair Value of Financial Instruments" for additional information.

Other Short-Term Borrowing Arrangements. As of March 31, 2026, the Bank had credit limits of $215.0 million in the aggregate with several commercial banks, as well as borrowing arrangements with unaffiliated financial institutions that provide for the purchase of overnight funds and other short-term borrowings. The availability of these unsecured borrowings fluctuates regularly and is subject to the discretion of the counterparties. These lines are renewable annually and have no unused commitment fees. As of March 31, 2026 $440.0 million was outstanding under these arrangements compared to $240.0 million outstanding as of December 31, 2025.

Subordinated Debt

The following table summarizes the terms of each issuance of subordinated debt outstanding as of the dates indicated:


	March 31, 2026				December 31, 2025				Date	Maturity	Rate Index
Series	Balance		Rate (1)		Balance		Rate (1)		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Subordinated notes, net (2)(3)	$	381,877	3.25	%	$	381,737	3.25	%	04/30/2021	05/01/2031	Fixed rate
Subordinated notes (4)	75,000		7.86	%	75,000		8.05	%	10/30/2020	10/30/2030	3-month Term SOFR + 4.195%
Trust V	10,310		7.04	%	10,310		7.07	%	08/15/2003	09/17/2033	3-month Term SOFR + 3.10
Trust VI	10,310		6.99	%	10,310		7.03	%	09/03/2003	09/15/2033	3-month Term SOFR + 3.05
Trust CII	5,155		6.89	%	5,155		6.92	%	09/17/2003	09/17/2033	3-month Term SOFR + 2.95
Trust VII	61,856		6.68	%	61,856		6.85	%	02/05/2004	04/23/2034	3-month Term SOFR + 2.75
Trust CIII	20,619		5.63	%	20,619		5.67	%	08/15/2005	09/15/2035	3-month Term SOFR + 1.69
Trust FCCI	16,495		5.54	%	16,495		5.58	%	01/25/2007	03/15/2037	3-month Term SOFR + 1.60
Trust FCBI	10,310		5.49	%	10,310		5.53	%	09/30/2005	12/15/2035	3-month Term SOFR + 1.55
Trust CS 2005-1	82,475		5.89	%	82,475		5.93	%	11/21/2005	12/15/2035	3-month Term SOFR + 1.95
Trust CS 2005-2	128,866		5.88	%	128,866		6.05	%	12/14/2005	01/30/2036	3-month Term SOFR + 1.95
Trust CS 2006-1	51,545		8.70	%	51,545		9.20	%	02/22/2006	04/30/2036	Prime + 1.95
Trust CS 2006-2	51,550		5.88	%	51,550		6.05	%	09/27/2006	10/30/2036	3-month Term SOFR + 1.95
Trust CS 2006-3 (5)	29,778		4.08	%	30,275		4.12	%	09/29/2006	10/30/2036	3-month EURIBOR + 2.05
Trust CS 2006-4	16,470		8.70	%	16,470		9.20	%	12/05/2006	01/30/2037	Prime + 1.95
Trust CS 2006-5	6,650		5.88	%	6,650		6.05	%	12/19/2006	01/30/2037	3-month Term SOFR + 1.95
Trust CS 2007-2	39,177		5.88	%	39,177		6.05	%	06/13/2007	07/30/2037	3-month Term SOFR + 1.95
PMB Statutory Trust III	7,217		7.37	%	7,217		7.35	%	09/16/2002	09/26/2032	3-month Term SOFR + 3.40
PMB Capital Trust III	10,310		5.93	%	10,310		6.15	%	10/04/2004	10/08/2034	3-month Term SOFR + 2.00
Total subordinated debt	1,015,970		5.24	%	1,016,327		5.35	%
Acquisition discount (6)	(61,898)				(63,587)
Total subordinated debt, net	$	954,072			$	952,740

___________________

(1) Rates do not include the effects of discounts and issuance costs.

(2) Net of unamortized issuance costs of $3.1 million at March 31, 2026 and $3.3 million at December 31, 2025.

(3) The subordinated notes, which were issued at the Bank level rather than the holding company level, carried a fixed interest rate until May 1, 2026. On that date, the Company redeemed the outstanding principal amount of $385 million. The balance reflected in the table above differs from the redemption amount due to the carrying value of the subordinated notes, which includes the impact of unamortized debt issuance discount at the reporting date. For more information see “Note 17. Subsequent Events” in Item 1 of this Form 10‑Q.

(4) Interest rate was fixed at 4.375% until October 30, 2025, when it changed to a floating rate equal to 3-month Term SOFR, plus a spread of 419.5 basis points.

(5) Denomination is in Euros with a value of €25.8 million

(6) Amount represents the fair value adjustment on subordinated debt assumed in acquisitions.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 9. DERIVATIVES

We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies and for certain loan clients to allow them to hedge the risk of rising interest rates and on their variable rate loans.

Our derivatives are carried at fair value and recorded in "Other assets" or "Accrued interest payable and other liabilities," as appropriate, in the consolidated balance sheets. On the date we enter into a derivative contract, the derivative is designated as a fair value hedge, cash flow hedge, or a hedge designation is not made as it is a customer-related transaction. When a derivative is designated as a fair value hedge or cash flow hedge, the Company performs an assessment at inception, and at least quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the fair value or cash flows of the hedged items.

The following table presents the U.S. dollar notional amounts and fair values of our derivative instruments included in the consolidated balance sheets as of the dates indicated:


	March 31, 2026						December 31, 2025
	Notional		Fair Value				Notional		Fair Value
	Amount		Asset		Liability		Amount		Asset		Liability
	(In thousands)
Derivatives Designated as Cash Flow Hedges:
Interest rate swaps	$	680,000	$	319	$	1,838	$	300,000	$	—	$	4,043
Interest rate collars	1,000,000		45		—		1,000,000		—		22
Interest rate caps	380,000		5,454		—		—		—		—
Derivatives Not Designated as Hedging Instruments:
Interest rate contracts	148,798		4,154		4,106		150,652		4,124		4,079
Foreign exchange contracts	112,611		208		355		111,390		—		77
Equity warrant assets	13,435		3,363		—		14,086		3,437		—
Total contracts	$	2,334,844	$	13,543	$	6,299	$	1,576,128	$	7,561	$	8,221

Cash Flow Hedges

Cash flow hedges include interest rate swap contracts with an aggregate notional amount of $680.0 million, consisting of $300.0 million of pay-fixed, receive-floating and $380.0 million of forward-starting receive-fixed, pay-floating swaps. These contracts have terms of up to five years and mature at various dates through 2032. The Company entered into these swaps with institutional counterparties to hedge against variability in cash flows attributable to IRR on a portion of the Company’s borrowings and forecasted interest income on cash balances indexed to the interest on reserve balances rate. Cash flow hedges also included interest rate collars, which are option contracts designed to limit the Company's exposure to increases in short term interest rates while foregoing some of the upside if short term interest rates decrease significantly. The interest rate collars have notional amounts aggregating to $1.0 billion, with eighteen month terms, and maturing on October 31, 2026. These collars were entered into with institutional counterparties to hedge against variability in cash flows attributable to IRR on a portion of the Company's floating rate deposits. Additionally, cash flow hedges also included forward-starting purchased interest rate caps, which are option contracts designed to limit the Company's exposure to increases in short term interest rates. The interest rate caps have notional amounts aggregating to $380.0 million, with five year terms, and maturing in March 2032. These caps were entered into with institutional counterparties to hedge against variability in cash flows attributable to IRR on a portion of the Company's floating rate deposits.

The cash flow hedges were deemed highly effective at inception and as of March 31, 2026. For derivatives designated as cash flow hedges, the portion of changes in fair value considered to be highly effective is reported as a component of AOCI on the consolidated balance sheets until the related cash flows from the hedged items are recognized in earnings. As of March 31, 2026, the fair value of the cash flow hedges represented a net asset of $4.0 million, related to which a loss of $1.7 million (net of tax) was included in AOCI. The estimated amount to be reclassified in the next 12 months out of AOCI into earnings is $1.8 million.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Other Interest Rate Swaps, Foreign Exchange Contracts, and Equity Warrant Assets Not Designated for Hedge Accounting

The Company offers borrowers interest rate swaps under a "back-to-back" loan hedging program and offsets these "pay floating/receive fixed" contracts with borrowers with "receive floating/pay fixed" swaps with counterparty banks. The total notional balance of these offsetting hedging contracts was $148.8 million at March 31, 2026.

The Company has also hedged the IRR and foreign currency risk on €25.8 million of subordinated debt utilizing a cross-currency swap. Under the current terms of the swap, the Company receives three-month Euribor plus 205 basis points and pays a fixed rate of 5.92% with ultimate principal exchanged at maturity. For the quarter ended March 31, 2026, changes in fair value and fees recorded to "Noninterest income" in the consolidated statements of earnings were immaterial.

See "Note 11. Fair Value Measurements and Fair Value of Financial Instruments" for additional information regarding equity warrant assets.

NOTE 10. COMMITMENTS AND CONTINGENCIES

The following table presents a summary of commitments described below as of the dates indicated:


	March 31, 2026		December 31, 2025
	(In thousands)
Loan commitments to extend credit	$	5,549,325	$	5,433,357
Standby letters of credit	255,845		244,895
Total	$	5,805,170	$	5,678,252

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement that the Company has in particular classes of financial instruments.

Commitments to extend credit are contractual agreements to lend to our customers when customers are in compliance with their contractual credit agreements and when customers have contractual availability to borrow under such agreements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The estimated exposure to loss from these commitments is included in the reserve for unfunded loan commitments, which amounted to $34.9 million at March 31, 2026 and $34.9 million at December 31, 2025.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. We provide standby letters of credit in conjunction with several of our lending arrangements and property lease obligations. Most guarantees expire within one year from the date of issuance. If a borrower defaults on its commitments subject to any letter of credit issued under these arrangements, we would be required to meet the borrower's financial obligation but would seek repayment of that financial obligation from the borrower. In some cases, borrowers have pledged cash and investment securities as collateral under these arrangements.

Additionally, we have commitments to invest in SBICs that call for capital contributions up to an amount specified in the partnership agreements, and in CRA-related loan pools. As of March 31, 2026 and December 31, 2025, such commitments totaled $118.2 million and $122.1 million.

Legal Matters

In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, and taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company’s financial statements or operations.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 11. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value Option

The Company may elect to report financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings. The election is made upon the initial recognition of an eligible financial asset, financial liability, or firm commitment or when certain specified reconsideration events occur. The fair value election may not otherwise be revoked once an election is made. The changes in fair value are recorded in "Noninterest income" on the consolidated statements of earnings. However, movements in debt valuation adjustments are reported as a component of "Accumulated other comprehensive loss, net" on the consolidated balance sheets. Debt valuation adjustments represent the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk.

Fair Value Option for Certain Debt Liabilities

The Company has elected the fair value option for the credit-linked notes issued in September 2022. The Company elected the fair value option because these exposures are considered to be structured notes, which are financial instruments that contain embedded derivatives. The notes are linked to the credit risk of an approximately $2.1 billion reference pool of previously purchased SFR mortgage loans. The principal balance of the credit-linked notes was $112.5 million at March 31, 2026. The carrying value of the credit-linked notes at March 31, 2026 was the estimated fair value of $111.3 million. Interest expense on the credit-linked notes totaled $4.1 million and $4.5 million for the three months ended March 31, 2026 and 2025, respectively, and was recorded in "Interest expense - borrowings" on the consolidated statements of earnings.

The following table presents the changes in fair value of the credit-linked notes for which the fair value option has been elected for the periods indicated:


	Three Months Ended March 31,

Credit-Linked Notes	2026		2025
	(In thousands)
Changes in fair value - gains included in earnings	$	94	$	482
Changes in fair value - other comprehensive (loss) income	$	(111)	$	146

The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:


Credit-Linked Notes	March 31, 2026		December 31, 2025
	(In thousands)

Carrying value reported on the consolidated balance sheets	$	111,250	$	113,634
Aggregate unpaid principal balance in excess of fair value	$	1,203	$	1,220

Fair Value Measurements

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily AFS securities, derivatives, and certain debt liabilities. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for individually evaluated loans and leases and OREO and also to record impairment on certain assets, such as goodwill, CDI, and other long-lived assets.

For information regarding the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820), and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825, as amended by ASU 2016-01 and ASU 2018-03), see "Note 1. Nature of Operations and Summary of Significant Accounting Policies" and "Note 15. Fair Value Measurements" to the Consolidated Financial Statements of the Form 10-K.

The Company also holds SBIC investments measured at fair value using the net asset value per share practical expedient that are not required to be classified in the fair value hierarchy. At March 31, 2026, the fair value of these investments was $122.6 million.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following tables present information on the assets and liabilities measured and recorded at fair value on a recurring basis as of the dates indicated:


	Fair Value Measurements as of March 31, 2026
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities AFS:
Agency residential MBS	$	811,661	$	—	$	811,661	$	—

Agency commercial MBS	50,981		—		50,981		—
Agency residential CMOs	1,104,183		—		1,104,183		—

Corporate debt securities	231,958		—		229,708		2,250
Private label residential CMOs	233,184		—		233,184		—
Collateralized loan obligations	200,374		—		200,374		—
Private label commercial MBS	8,270		—		8,270		—
Asset-backed securities	12,661		—		12,661		—
SBA securities	3,060		—		3,060		—
Total securities AFS	$	2,656,332	$	—	$	2,654,082	$	2,250
Equity investments with readily determinable fair values	$	1,082	$	1,082	$	—	$	—
Derivatives (1):
Derivative assets
Cash flow hedges	5,818		—		5,818		—
Interest rate and foreign exchange contracts	4,362		—		4,362		—
Equity warrants	3,363		—		—		3,363
Derivative liabilities
Cash flow hedges	1,838		—		1,838		—
Interest rate and foreign exchange contracts	4,461		—		4,461		—
Credit-linked notes	111,250		—		—		111,250

___________________

(1) For information regarding derivative instruments, see "Note 9. Derivatives".

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	Fair Value Measurements as of December 31, 2025
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities AFS:
Agency residential MBS	$	834,085	$	—	$	834,085	$	—

Agency commercial MBS	50,966		—		50,966		—
Agency residential CMOs	871,624		—		871,624		—

Corporate debt securities	241,596		—		239,226		2,370
Private label residential CMOs	228,975		—		228,975		—
Collateralized loan obligations	200,822		—		200,822		—
Private label commercial MBS	9,279		—		9,279		—
Asset-backed securities	13,249		—		13,249		—
SBA securities	3,462		—		3,462		—
Total securities AFS	$	2,454,058	$	—	$	2,451,688	$	2,370
Equity investments with readily determinable fair values	$	2	$	2	$	—	$	—
Derivatives (1):
Derivative assets

Interest rate and foreign exchange contracts	4,124		—		4,124		—
Equity warrants	3,437		—		—		3,437
Derivative liabilities
Cash flow hedges	4,065		—		4,065		—
Interest rate and foreign exchange contracts	4,156		—		4,156		—
Credit-linked notes	113,634		—		—		113,634

____________________

(1) For information regarding derivative instruments, see "Note 9. Derivatives".

During the three months ended March 31, 2026, there were $1.1 million transfers from Level 3 equity warrants to Level 1 equity investments with readily determinable fair values measured on a recurring basis. There was no transfer of AFS corporate debt securities from Level 3 to Level 2 during the three months ended March 31, 2026 and no transfer of AFS corporate debt securities from Level 2 to Level 3 during the same period.

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third-party pricing service for our Level 3 corporate debt securities AFS measured at fair value on a recurring basis as of the date indicated:



	Corporate Debt Securities as of March 31, 2026

	Input or Range	Weighted Average
Unobservable Inputs	of Inputs	Input (1)
Spread to 10 Year Treasury	2.7% - 10.3%	4.8%
Discount rates	7.0% - 14.6%	9.2%

____________________

(1) Unobservable inputs for corporate debt securities were weighted by the relative fair values of the instruments.

The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of the date indicated:



	Equity Warrants as of March 31, 2026

	Range	Weighted Average
Unobservable Inputs	of Inputs	Input (1)
Volatility (1)	23.5% - 1,027.0%	24.7%
Risk-free interest rate	3.7% - 3.9%	3.8%
Remaining life assumption (in years)	0.08 - 4.99	3.24 years

____________________

(1) Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following table summarizes activity for our Level 3 corporate debt securities AFS, equity warrants, and credit-linked notes measured at fair value on a recurring basis for the period indicated:


	Corporate		Equity		Credit-Linked
	Debt Securities		Warrants		Notes
	(In thousands)
Balance, December 31, 2025	$	2,370	$	3,437	$	113,634
Total included in earnings	—		—		(94)
Total included in other comprehensive income	(120)		938		111

Issuances	—		143		—
Principal payments	—		—		(2,401)




Exercises and settlements	—		(51)		—

Transfers to Level 1 (equity investments with readily determinable fair values)	—		(1,104)		—
Balance, March 31, 2026	$	2,250	$	3,363	$	111,250

Unrealized net loss for the period included in other
comprehensive income for securities held at quarter-end	$	(750)

The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated:


	Fair Value Measurement as of March 31, 2026
Measured on a Nonrecurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	50,721	$	—	$	24,129	$	26,592

OREO	290		—		290		—
Total non-recurring	$	51,011	$	—	$	24,419	$	26,592


	Fair Value Measurement as of December 31, 2025
Measured on a Nonrecurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	52,443	$	—	$	48,401	$	4,042
OREO	248		—		248		—
Total non-recurring	$	52,691	$	—	$	48,649	$	4,042

In addition to individually evaluated loans and leases and OREO, loans HFS are carried at the LOCOM and may be measured at fair value on a nonrecurring basis when fair value is less than cost. Fair value is based on active bids and other observable market inputs, such as appraised value of the underlying collaterals, adjusted for specific attributes of that loan or other available market data for similar loans. Loans HFS are classified as Level 2 in the fair value hierarchy.

The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:



	Three Months Ended March 31,
Loss on Assets Measured on a Non‑Recurring Basis	2026		2025
	(In thousands)
Individually evaluated loans and leases	$	5,023	$	11,285

OREO	44		266
Total losses	$	5,067	$	11,551

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated:


	March 31, 2026
			Valuation	Unobservable	Input or	Weighted
Asset	Fair Value		Technique	Inputs	Range	Average
	(In thousands)



Individually evaluated loans and leases	26,592		Third party appraisal	Discount from appraisal	7.75% - 7.75%	7.75%




Total non-recurring Level 3	$	26,592

The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:


	March 31, 2026
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	214,120	$	214,120	$	214,120	$	—	$	—
Interest-earning deposits in financial institutions	2,003,149		2,003,149		2,003,149		—		—
Securities AFS	2,656,332		2,656,332		—		2,654,082		2,250
Securities HTM	2,313,548		2,227,000		184,111		2,038,915		3,974
Investment in FRB and FHLB stock	170,342		170,342		—		170,342		—
Loans HFS	259,049		259,429		—		259,429		—
Loans and leases HFI, net	24,538,747		23,526,921		—		24,129		23,502,792
Equity investments with readily determinable fair values	1,082		1,082		1,082		—		—
Equity warrants	3,363		3,363		—		—		3,363
Cash flow hedges	5,818		5,818		—		5,818		—
Interest rate and foreign exchange contracts	4,362		4,362		—		4,362		—
Servicing rights	16,968		18,653		—		—		18,653

Financial Liabilities:
Demand, checking, money market, and savings deposits	22,610,386		22,610,386		—		22,610,386		—
Time deposits	4,711,748		4,699,767		—		4,699,767		—
Borrowings	2,551,250		2,552,604		440,000		2,001,354		111,250
Subordinated debt	954,072		934,399		—		934,399		—
Cash flow hedges	1,838		1,838		—		1,838		—
Interest rate and foreign exchange contracts	4,461		4,461		—		4,461		—

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	December 31, 2025
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	181,103	$	181,103	$	181,103	$	—	$	—
Interest-earning deposits in financial institutions	2,126,862		2,126,862		2,126,862		—		—
Securities AFS	2,454,058		2,454,058		—		2,451,688		2,370
Securities HTM	2,308,636		2,246,526		185,088		2,057,189		4,249
Investment in FRB and FHLB stock	160,442		160,442		—		160,442		—
Loans HFS	182,936		183,083		—		183,083		—
Loans and leases HFI, net	24,787,067		23,871,794		—		48,401		23,823,393
Equity investments with readily determinable fair values	2		2		2		—		—
Equity warrants	3,437		3,437		—		—		3,437

Interest rate and foreign exchange contracts	4,124		4,124		—		4,124		—
Servicing rights	17,480		19,427		—		—		19,427

Financial Liabilities:
Demand, checking, money market, and savings deposits	23,156,094		23,156,094		—		23,156,094		—
Time deposits	4,687,263		4,684,099		—		4,684,099		—
Borrowings	2,063,819		2,069,076		275,185		1,680,257		113,634
Subordinated debt	952,740		934,819		—		934,819		—
Cash flow hedges	4,065		4,065		—		4,065		—
Interest rate and foreign exchange contracts	4,156		4,156		—		4,156		—

Limitations

Fair value estimates are made at a specific point in time and are based on relevant market information and information about the financial instrument. These estimates do not reflect income taxes or any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on what management believes to be reasonable judgments regarding expected future cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimated fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Since the fair values have been estimated as of March 31, 2026, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 12. EARNINGS PER SHARE

The following tables present the computations of basic and diluted net earnings per share by class of common stock for the periods indicated:


	Three Months Ended March 31, 2026

			Class B		Non-Voting
	Voting		Non-Voting		Common Stock
	Common		Common		Equivalents		Total
	(In thousands, except per share amounts)
Basic Earnings Per Share: (1)
Net earnings available to common and equivalent stockholders	$	61,045	$	191	$	769	$	62,005
Less: Earnings allocated to unvested restricted stock (2)	(27)		—		—		(27)
Net earnings allocated to common and equivalent shares	$	61,018	$	191	$	769	$	61,978

Weighted average basic shares and unvested restricted
stock outstanding	152,494		477		1,921		154,892
Less: weighted average unvested restricted stock
outstanding	(71)		—		—		(71)
Weighted average basic shares outstanding	152,423		477		1,921		154,821

Basic earnings per share	$	0.40	$	0.40	$	0.40	$	0.40

Diluted Earnings Per Share: (3)
Net earnings available to common and equivalent stockholders	$	61,045	$	191	$	769	$	62,005
Reallocation of net earnings as a result of conversion of
NVCE to Voting Common	769		—		—		—
Reallocation of net earnings	7		(7)		1,487		—
Net earnings for diluted earnings per share	$	61,821	$	184	$	2,256	$	62,005

Weighted average diluted shares outstanding	154,502		477		5,853		160,832
Conversion of NVCE to Voting Common	5,853		—		—		—
Shares used in computation of diluted earnings per share	160,355		477		5,853		160,832

Diluted earnings per share	$	0.39	$	0.39	$	0.39	$	0.39

________________________

(1) Basic earnings per share is using the two-class method.

(2) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

(3) Diluted earnings per share is using the treasury method.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements


	Three Months Ended March 31, 2025

			Class B		Non-Voting
	Voting		Non-Voting		Common Stock
	Common		Common		Equivalents		Total
	(In thousands, except per share amounts)
Basic Earnings Per Share: (1)
Net earnings available to common and equivalent stockholders	$	40,963	$	123	$	2,535	$	43,621
Less: Earnings allocated to unvested restricted stock (2)	(47)		—		—		(47)
Net earnings allocated to common and equivalent shares	$	40,916	$	123	$	2,535	$	43,574

Weighted average basic shares and unvested restricted
stock outstanding	158,429		477		9,791		168,697
Less: weighted average unvested restricted stock
outstanding	(202)		—		—		(202)
Weighted average basic shares outstanding	158,227		477		9,791		168,495

Basic earnings per share	$	0.26	$	0.26	$	0.26	$	0.26

Diluted Earnings Per Share:(3)
Net earnings allocated to common and equivalent shares	$	40,963	$	123	$	2,535	$	43,621
Weighted average diluted shares outstanding	158,734		477		10,223		169,434
Diluted earnings per share	$	0.26	$	0.26	$	0.25	$	0.26

________________________

(1) Basic earnings per share is using the two-class method.

(2) Represents cash dividends paid to holders of unvested restricted stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

(3) Diluted earnings per share is using the treasury method.

The terms of each class of the Company’s capital stock are described in "Note 14. Stockholders’ Equity" to the accompanying consolidated financial statements.

The following table presents the weighted average outstanding restricted shares and warrants that were not included in the computation of diluted earnings per share because their effect would be anti-dilutive for the periods indicated:


	Three Months Ended March 31,

	2026	2025
	(In thousands)
Restricted stock awards and units	13	202
Warrants	—	18,902

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 13. REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of Revenue

The following table presents "Interest income" and "Noninterest income," the components of total revenue, as disclosed in the consolidated statements of earnings and the related amounts which are from contracts with customers within the scope of ASC Topic 606. As illustrated here, substantially all of our revenue is specifically excluded from the scope of ASC Topic 606.


	Three Months Ended March 31,
	2026				2025
	Total		Revenue from		Total		Revenue from
	Recorded		Contracts with		Recorded		Contracts with
	Revenue		Customers		Revenue		Customers
	(In thousands)
Total Interest Income	$	407,442	$	—	$	406,655	$	—
Noninterest Income:
Service charges on deposit accounts	4,978		4,978		4,543		4,543
Commissions and fees	10,980		5,129		9,958		5,403
Leased equipment income	8,530		—		10,784		—
Gain on sale of loans	7		—		211		—

Dividends and gains on equity investments	2,002		—		2,323		—
Warrant income (loss)	938		—		(295)		—

Other income	7,893		1		6,126		246
Total noninterest income	35,328		10,108		33,650		10,192
Total Revenue	$	442,770	$	10,108	$	440,305	$	10,192

The following table presents revenue from contracts with customers based on the timing of revenue recognition for the periods indicated:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Products and services transferred at a point in time	$	4,235	$	4,553
Products and services transferred over time	5,873		5,639
Total revenue from contracts with customers	$	10,108	$	10,192

Contract Balances

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of the dates indicated:


	March 31, 2026		December 31, 2025
	(In thousands)
Receivables, which are included in "Other assets"	$	1,766	$	2,147

Contract liabilities, which are included in "Accrued interest payable and other liabilities"	$	261	$	279

Contract liabilities relate to advance consideration received from customers for which revenue is recognized over the life of the contract. The change in contract liabilities for the three months ended March 31, 2026 due to revenue recognized that was included in the contract liability balance at the beginning of the period was $18,000.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 14. STOCKHOLDERS' EQUITY

Stock-Based Compensation

At the special meeting of stockholders held on November 22, 2023, the Company's stockholders approved the Amended and Restated Banc of California, Inc. 2018 Stock Incentive Plan (the “Amended and Restated 2018 Plan”). The Company’s Amended and Restated 2018 Plan permits stock-based compensation awards to officers, directors, employees, and consultants and will remain in effect until November 30, 2033. The Amended and Restated 2018 Plan authorizes grants of stock-based compensation instruments to purchase or issue up to 10,717,882 shares. As of March 31, 2026, there were 2,157,723 shares available for grant under the Amended and Restated 2018 Plan. In addition to the Amended and Restated 2018 Plan, in connection with the Merger, the Company assumed the Amended and Restated PacWest Bancorp 2017 Stock Incentive Plan (the "PacWest 2017 Plan") with respect to PacWest's outstanding stock-based awards.

Restricted Stock (RSUs, TRSAs, and PSUs)

Restricted stock amortization totaled $5.9 million and $5.2 million for the three months ended March 31, 2026 and 2025. Such amounts are included in "Compensation expense" on the consolidated statements of earnings. The amount of unrecognized compensation expense related to all unvested RSUs, TRSAs, and PSUs as of March 31, 2026 totaled $63.8 million.

Restricted Stock Units and Time-Based Restricted Stock Awards

At March 31, 2026, there were 3,026,160 shares of unvested RSUs outstanding pursuant to the Amended and Restated 2018 Plan. At March 31, 2026, there were 62,601 shares of unvested TRSAs outstanding pursuant to the PacWest 2017 Plan. The RSUs and TRSAs generally vest over a service period of three or four years from the date of the grant or immediately upon death of an employee. Compensation expense related to RSUs and TRSAs is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight‑line method. TRSAs were assumed by the Company in connection with the Merger and continue to vest in accordance with the original vesting schedule of the awards.

Performance Stock Units

At March 31, 2026, there were 2,505,680 units of unvested PSUs outstanding. Compensation expense related to the PSUs is based on the fair value of the underlying stock on the award date and is amortized over the vesting period using the straight-line method unless it is determined that: (1) attainment of the financial metrics is less than probable, in which case a portion of the amortization is suspended, or (2) attainment of the financial metrics is improbable, in which case a portion of the previously recognized amortization is reversed and also suspended. Annual PSU expense may vary during the performance period based upon changes in management's estimate of the number of shares that may ultimately vest. In the case where the performance target for the PSUs is based on a market condition (such as total shareholder return), the amortization is neither reversed nor suspended if it is subsequently determined that the attainment of the performance target is less than probable or improbable and the employee continues to meet the service requirement of the award.

Classes of Stock and Equity Instruments

Preferred Stock

Depositary shares each representing 1/40th of a share of 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series F (“Series F Preferred Stock”) are listed on the NYSE under the symbol “BANC/PF.” The Series F Preferred Stock ranks senior to our common stock and common stock equivalents both as to dividends and liquidation preference but generally have no voting rights. There are 50,000,000 total preferred shares authorized, of which 27,000,000 were authorized for the NVCE and 513,250 were authorized and outstanding for the Series F Preferred stock at March 31, 2026 and December 31, 2025.

Common Stock

Our voting common stock is listed on the NYSE under the symbol “BANC” and there were 446,863,844 shares authorized at March 31, 2026 and December 31, 2025 and 153,722,123 shares outstanding at March 31, 2026 and 149,963,520 shares outstanding at December 31, 2025.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

Class B Non-Voting Common Stock

Our Class B non-voting, non-convertible common stock is not listed or traded on any national securities exchange or automated quotation system, and there currently is no established trading market for such stock. The Class B non-voting common stock ranks equally with, and has identical rights, preferences, and privileges as the voting common stock with respect to dividends and liquidation preference but generally have no voting rights. There were 3,136,156 shares authorized at March 31, 2026 and December 31, 2025 and 477,321 shares outstanding at March 31, 2026 and at December 31, 2025.

Non-Voting Common Stock Equivalents

In conjunction with the Merger, the Company issued a new class of NVCE from authorized preferred stock, which were issued under the Investment Agreements (as defined below). Our NVCE stock is not listed or traded on any national securities exchange or automated quotation system, and there currently is no established trading market for such stock. The NVCE stock does not have voting rights and ranks equally with, and has identical rights, preferences, and privileges as, the voting common stock with respect to dividends or distributions (including regular quarterly dividends) declared by the Board and rights upon any liquidation, dissolution, winding up or similar proceeding of the Company. The NVCE stock is convertible into shares of voting common stock on a one-for-one basis, generally upon transfer to an eligible holder or the occurrence of other specified events in accordance with the terms of the Warburg Investment Agreement (as defined below) with affiliates of funds managed by Warburg Pincus LLC (the "Warburg Investors"). There were 27,000,000 shares of NVCE stock authorized at March 31, 2026 and December 31, 2025 and there were no shares of NVCE stock outstanding at March 31, 2026 and 5,017,064 at December 31, 2025.

During the first quarter of 2026, the Company repurchased 1,000,000 shares of its NVCE stock from the Warburg Investors at $20.00 per share, which represented a slight discount to the market price at the time of sale. The repurchased shares were retired upon settlement and recorded as a reduction to stockholders’ equity.

Warrants

In conjunction with the Merger and per the terms of the investment agreements, each dated July 25, 2023, entered into by Banc of California, Inc. with the Warburg Investors (such agreement, the "Warburg Investment Agreement") and the Centerbridge Investor (together with the Warburg Investment Agreement, the "Investment Agreements"), respectively, the Warburg Investors received warrants to purchase 15,853,659 shares of NVCE stock (the "Warburg Warrants"), and the Centerbridge Investor received warrants to purchase 3,048,780 shares of voting common stock (the “Centerbridge Warrants”), each with an initial exercise price of $15.375 per share, subject to customary anti-dilution adjustments provided for under the warrant agreements. The warrants carry a term of seven years but are subject to mandatory exercise when the market price of the voting common stock reaches or exceeds $24.60 for 20 or more trading days during any 30-consecutive trading day period. These warrants are being accounted for as equity. The exercise price of the Centerbridge Warrants will be adjusted downward, per the terms of their warrant agreement, and the exercise price of the Warburg Warrants will also be adjusted, per the terms of their warrant agreement and the NVCE Articles Supplementary, for cash distributions to stockholders of the Company’s voting common stock, including the Company’s quarterly cash dividend.

Stock Repurchase Program

On March 23, 2026, we announced that our Board of Directors approved an extension of the Company's existing stock repurchase program, which was originally announced on March 17, 2025 and subsequently upsized from $150.0 million to $300.0 million on April 23, 2025. The stock repurchase program, which was previously scheduled to expire in March 2026, has been extended through March 16, 2027.

During the first quarter of 2026, common and common equivalent stock repurchased under the program totaled 1,709,935 shares at a weighted average price per share of $18.68, or $31.9 million in the aggregate. As of March 31, 2026, the Company had $82.6 million remaining under the stock repurchase authorization.

Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by our management and in accordance with the regulations of the SEC. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The program may be changed, suspended, or discontinued at any time.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 15. SEGMENT REPORTING

The Company provides banking and treasury management services to small, middle-market, and venture-backed businesses. The principal business activities of the Company are gathering deposits, originating and servicing loans and leases, and investing in investment securities. The Company's CODM is the Chief Executive Officer.

The Company operates as one reportable segment, Commercial Banking, based on how the CODM manages the business activities. The CODM uses net earnings to evaluate income generated from segment assets, assess performance, decide how to allocate resources, determine dividend availability, establish management's compensation, and guide other strategic decisions. The accounting policies of the Commercial Banking segment are the same as those described in "Note 1. Nature of Operations and Summary of Significant Accounting Policies" in our Form 10-K. Additionally, the Company does not have intra-entity sales or transfers.

Since the Company operates as a single reportable segment and is managed on a consolidated basis, the consolidated statements of earnings reflect the segment results. Therefore, a separate segment income statement is not presented. The Company has reviewed the information provided to the CODM and determined that no further disaggregated expense disclosures are necessary beyond those in the consolidated statements of earnings.

The following presents our operating segment balance sheet information and the reconciliation of segment assets to consolidated total assets as of the dates indicated:


Balance Sheet Data
Commercial Banking Segment	March 31, 2026		December 31, 2025
	(In thousands)







Segment total assets (1)	$	34,724,241	$	34,797,442

_________________________

(1) Segment total assets is the same as total assets reported on the consolidated balance sheets.

NOTE 16. RELATED PARTY TRANSACTIONS

Certain of our executive officers and directors, and their related interests, are customers of, or have had transactions with, the Bank in the ordinary course of business, including deposits, loans, and other financial services-related transactions. From time to time, the Bank may make loans to executive officers and directors, and their related interests, in the ordinary course of business and on substantially the same terms and conditions, including interest rates and collateral, as those of comparable transactions with non-insiders prevailing at the time, in accordance with the Bank's underwriting guidelines, and do not involve more than the normal risk of collectability or present other unfavorable features. As of March 31, 2026, no related party loans were categorized as nonaccrual, past due, restructured, or potential problem loans.

Transactions with Related Parties

The Company and the Bank have engaged in the transaction described below with the Company's current directors, executive officers, and beneficial owners of more than five percent of the outstanding shares of the Company's voting common stock and certain persons related to them.

The Company is a party to a services agreement with IntraFi Network LLC (“IntraFi”) whereby IntraFi provides the Bank with certain insured cash sweep services from time to time. Affiliates of funds managed by Warburg Pincus LLC hold a material investment interest in IntraFi. Additionally, one of Warburg Pincus LLC’s principals, Todd Schell, who currently serves as a member of the Board, is a member of the board of directors of IntraFi. Affiliates of funds managed by Warburg Pincus LLC beneficially owned approximately 4.48% of the Company’s outstanding voting common stock as of March 31, 2026. For the three months ended March 31, 2026 and 2025, the amounts paid to IntraFi for certain insured cash sweep services were $1.8 million in each period.

During the first quarter of 2026, the Company repurchased 1,000,000 shares of its NVCE stock from the Warburg Investors. See "Note 14. Stockholders’ Equity" for additional information regarding this transaction.

BANC OF CALIFORNIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

NOTE 17. SUBSEQUENT EVENTS

Common Stock Dividend

On May 8, 2026, the Company announced that the Board of Directors had declared a quarterly cash dividend of $0.12 per common share. The cash dividend is payable on July 1, 2026, to stockholders of record at the close of business on June 15, 2026.

Preferred Stock Dividend

On May 8, 2026, the Company announced that the Board of Directors had declared a quarterly cash dividend of $0.4845 per Depositary Share. The cash dividend is payable on June 1, 2026 to stockholders of record at the close of business on May 21, 2026.

Subordinated Debt

On May 1, 2026, the Company redeemed all $385 million outstanding aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 originally issued by Pacific Western Bank. The remaining unamortized discount and debt issuance costs will be recorded as a loss on redemption of subordinated notes in noninterest income during the second quarter of 2026.

Servicing Asset Sale

On April 22, 2026, the Company entered into an agreement to sell the single-family mortgage servicing rights ("MSR") portfolio with an underlying unpaid principal balance of approximately $1.35 billion. Proceeds from the MSR sale will offset costs from the subordinated debt redeemed on May 1, 2026. This transaction is expected to settle on May 29, 2026.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management's discussion and analysis of the major factors that influenced our results of operations and financial condition as of and for the three months ended March 31, 2026. This analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 and with the unaudited consolidated financial statements and notes thereto set forth in this Quarterly Report on Form 10-Q.

Forward-Looking Information

This Quarterly Report on Form 10-Q contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our operating expenses, profitability, ACL, net interest margin, NII, deposit growth, loan and lease portfolio growth and production, acquisitions and related integrations, maintaining capital adequacy, liquidity, goodwill, and IRR management. All statements contained in this Quarterly Report on Form 10-Q that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements.

Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation: (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 DTAs, 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 ACL 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 ACL, result in write-downs of asset values, restrict our ability or that of our bank subsidiary to pay dividends, or impose fines, penalties or sanctions; (xi) legislative or regulatory changes that adversely affect our business, including changes in tax laws and policies, accounting policies and practices, privacy laws, and regulatory capital or other rules; (xii) the risk that our enterprise risk management framework may not be effective in mitigating risk and reducing the potential for losses; (xiii) errors in estimates of the fair values of certain of our assets and liabilities, as well as the value of collateral supporting our loans, which may result in significant changes in valuation or recoveries; (xiv) failures or security breaches with respect to the network, applications, vendors and computer systems on which we depend, including due to cybersecurity threats; (xv) our ability to attract and retain key members of our senior management team; (xvi) the effects of climate change, severe weather events, natural disasters such as earthquakes and wildfires, pandemics, epidemics and other public health crises, military activity (including the ongoing Iran war) or acts of terrorism, and other external events on our business; (xvii) the impact of bank failures or other adverse developments at other banks on general depositor and investor sentiment regarding the stability and liquidity of banks; (xviii) the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; (xix) our existing indebtedness, together with any future incurrence of additional indebtedness, could adversely affect our ability to raise additional capital and to meet our debt obligations; (xx) changes in market conditions or strategic balance sheet actions, which may result in realized losses on investment securities or other assets; and (xxi) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described in our Form 10-K for the fiscal year ended December 31, 2025 and from time to time in other documents that we file with or furnish to the SEC.

All forward-looking statements included in this Quarterly Report on Form 10-Q are based on information available at the time the statement is made. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Overview

Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California (the “Bank”), a California state-chartered bank and a member of the FRB. When we refer to the "parent" or the “holding company," we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company,” we are referring to Banc of California, Inc. and its consolidated subsidiaries including the Bank, collectively. The Bank 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. The Bank offers a broad range of loan and deposit products and services through 79 full-service branches located throughout California and in Denver, Colorado, and Durham, North Carolina, as well as through regional offices nationwide. The Bank also provides full-service payment processing solutions to its clients and serves the Community Association Management industry nationwide with its technology-forward platform, SmartStreet™. The Bank is committed to its local communities by supporting organizations that provide financial literacy and job training, small business support, affordable housing, and more.

Recent Events

Stock Repurchase Program

On March 23, 2026, we announced the extension of the Company’s existing $300 million stock repurchase program, which had been scheduled to expire in March 2026, through March 16, 2027. During the First Quarter of 2026, the Company repurchased a total of approximately 1.7 million shares of common and common equivalent stock for $31.9 million, at a weighted-average price of $18.68 per share. As of March 31, 2026, the Company had $82.6 million remaining under the stock repurchase authorization. For further information on the stock repurchase program, see "Note 14. Stockholders' Equity", in Item 1 of this Form 10-Q.

Subordinated Debt

On May 1, 2026, the Company redeemed the entire outstanding $385 million aggregate principal amount of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031, originally issued by Pacific Western Bank, for a redemption price equal to 100% of the principal amount redeemed, plus accrued and unpaid interest. These subordinated notes were scheduled to reset to a floating rate equal to three-month SOFR plus 252 bps beginning May 1, 2026, and were redeemable, in whole or in part, beginning May 1, 2026 at a redemption price equal to 100% of principal amount redeemed, plus any accrued and unpaid interest.

Critical Accounting Policies and Estimates

The following discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements and related notes, which have been prepared in accordance with U.S. GAAP. The preparation of the consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts and disclosure. We evaluate these estimates and assumptions on a ongoing basis based on historical experience and other relevant factors and circumstances; however, actual results may differ significantly from these estimates and assumptions, which could have a material adverse effect on our financial condition and results of operations.

Our accounting policies and estimates are fundamental to understanding the following discussion and analysis of financial condition and results of operations. We identify critical accounting estimates as those that involve the most significant judgments, uncertainties, and subjective decisions, and that could result in materially different outcomes under different assumptions or conditions. Our critical accounting policies and estimates include those related to the ACL on loans and leases HFI and the realization of deferred tax assets and liabilities. Our critical accounting policies and estimates are described in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in the Form 10-K.

Non-GAAP Financial Measures

We use certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP. The methodology for determining these non-GAAP measures may differ among companies and may not be comparable. Accordingly, we refer to the following non‑GAAP measures in this Quarterly Report on Form 10‑Q.

Return on average tangible common equity, tangible common equity, tangible book value per common share, efficiency ratio, and pre-tax pre-provision income are presented because the use of these measures is prevalent among banking regulators, investors, and analysts. These measures are disclosed in addition to the related GAAP measures of return on average equity, book value per common share, and noninterest expense to total revenue, respectively. Reconciliations of these non‑GAAP measures to the most directly comparable GAAP measures are presented in the following tables for and as of the periods presented.


		Three Months Ended
Return on Average Tangible		March 31,			December 31,			March 31,
Common Equity ("ROATCE")		2026			2025			2025
		(Dollars in thousands)
Net earnings		$	71,952		$	77,391		$	53,568

Earnings before income taxes								$	73,061
Add:	Intangible asset amortization							7,160

	Adjusted earnings before income taxes for ROATCE							80,221
Adjusted income tax expense (1)								20,296

Adjustments:
	Intangible asset amortization	6,348			6,788
	Tax impact of adjustment above (1)	(1,596)			(1,823)
	Adjustment to net earnings	4,752			4,965

Adjusted net earnings for ROATCE		76,704			82,356			59,925
Less:	Preferred stock dividends	9,947			9,947			9,947
	Adjusted net earnings available to common and equivalent
	stockholders for ROATCE	$	66,757		$	72,409		$	49,978

Average stockholders' equity		$	3,548,700		$	3,494,157		$	3,524,181
Less:	Average goodwill and intangible assets	317,215			323,295			344,610
Less:	Average preferred stock	498,516			498,516			498,516
	Average tangible common equity	$	2,732,969		$	2,672,346		$	2,681,055

Return on average equity (2)		8.22		%	8.79		%	6.16		%
Return on average tangible common equity (3)		9.91		%	10.75		%	7.56		%

___________________________________

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

(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.


Tangible Common Equity and
Tangible Book Value Per Common Share	March 31, 2026		December 31, 2025
	(Dollars in thousands, except per share data)
Stockholders’ equity	$	3,553,326	$	3,541,277
Less: Preferred stock	498,516		498,516
Total common equity	3,054,810		3,042,761
Less: Goodwill and intangible assets	313,612		319,808
Tangible common equity	$	2,741,198	$	2,722,953







Book value per common share (1)	$	19.80	$	19.56
Tangible book value per common share (2)	$	17.77	$	17.51
Common and equivalent shares outstanding (3)	154,262,045		155,533,403

_______________________________________

(1) Total common equity divided by common and equivalent shares outstanding.

(2) Tangible common equity divided by common and equivalent shares outstanding.

(3) Common and equivalent shares outstanding include NVCE that are participating securities. There were no NVCE outstanding as of March 31, 2026.


	Three Months Ended
	March 31,			December 31,			March 31,
Efficiency Ratio	2026			2025			2025
	(Dollars in thousands)
Noninterest expense (1)	$	181,391		$	180,644		$	183,653
Less: Intangible asset amortization	(6,348)			(6,788)			(7,160)

Noninterest expense used for efficiency ratio	$	175,043		$	173,856		$	176,493

Net interest income	$	251,617		$	251,362		$	232,364
Noninterest income	35,328			41,571			33,650


Total revenue used for efficiency ratio	$	286,945		$	292,933		$	266,014

Noninterest expense to total revenue	63.21		%	61.67		%	69.04		%
Efficiency ratio (2)	61.00		%	59.35		%	66.35		%

_______________________________________

(1) Includes customer related expense of $23.7 million, $24.9 million, and $27.8 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

(2) Noninterest expense used for efficiency ratio divided by total revenue.




	Three Months Ended
	March 31,		December 31,		March 31,
Pre-Tax Pre-Provision Income	2026		2025		2025
	(Dollars in thousands)
Net interest income (GAAP)	$	251,617	$	251,362	$	232,364
Add: Noninterest income (GAAP)	35,328		41,571		33,650
Total revenues (GAAP)	286,945		292,933		266,014
Less: Noninterest expense (GAAP)	181,391		180,644		183,653
Pre-tax pre-provision income (Non-GAAP)	$	105,554	$	112,289	$	82,361

Results of Operations

The Company reported net earnings available to common and equivalent stockholders of $62.0 million, or $0.39 per diluted common share, for the first quarter of 2026. This compares to 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, and 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.

First Quarter 2026 Financial Highlights:

•Total revenue of $286.9 million, up 8% year over year, with pre-tax pre-provision income(1) of $105.6 million, up 28% year over year.

•Net interest margin expanded 4 basis points to 3.24% compared to fourth quarter 2025, driven by an 11 basis point decline in deposit costs.

•Average total deposits increased by $103.4 million, and average noninterest-bearing deposits grew $81.2 million to 28.9% of average total deposits.

•First quarter loan production and disbursements totaled $2.1 billion, with a weighted average interest rate on production of 6.65%, supporting our balance sheet remixing and providing embedded earnings upside as higher-rate production replaces lower-yielding fixed-rate and hybrid loans.

•Average total loans increased $267.5 million.

•Total noninterest expense of $181.4 million, down 1% year over year.

•Maintained ACL coverage of 1.12% of total loans HFI.

•Repurchased $31.9 million of common stock and common equivalent stock at a weighted average price per share of $18.68.

•Growth in book value per share to $19.80 and tangible book value per share(1) to $17.77, up 9% and 10% year over year, respectively.

•Healthy capital ratios well above the regulatory thresholds for "well capitalized" banks, including a 12.54% Tier 1 capital ratio and a 10.18% CET 1 capital ratio.

___________________________________

(1) See "- Non-GAAP Financial Measures."

The following table presents financial results and performance ratios for the periods indicated:


	Three Months Ended
	March 31,			December 31,			March 31,
	2026			2025			2025
	(Dollars in thousands, except per share data)
Earnings Summary:
Interest income	$	407,442		$	416,948		$	406,655
Interest expense	(155,825)			(165,586)			(174,291)
Net interest income	251,617			251,362			232,364
Provision for credit losses	(9,800)			(12,500)			(9,300)
Noninterest income	35,328			41,571			33,650
Noninterest expense	(181,391)			(180,644)			(183,653)



Earnings before income taxes	95,754			99,789			73,061
Income tax expense	(23,802)			(22,398)			(19,493)
Net earnings	71,952			77,391			53,568
Preferred stock dividends	(9,947)			(9,947)			(9,947)

Net earnings available to common and equivalent stockholders	$	62,005		$	67,444		$	43,621

Per Common Share Data:
Diluted earnings per share (1)	$	0.39		$	0.42		$	0.26




Performance Ratios:
Return on average assets (3)	0.86		%	0.91		%	0.65		%
Return on average equity (3)	8.22		%	8.79		%	6.16		%
Return on average tangible common equity (2)(3)	9.91		%	10.75		%	7.56		%
Net interest margin (3)	3.24		%	3.20		%	3.08		%
Yield on average loans and leases (3)	5.74		%	5.83		%	5.90		%
Cost of average total deposits (3)	1.78		%	1.89		%	2.12		%

Noninterest expense to total revenue (4)	63.21		%	61.67		%	69.04		%
Efficiency ratio (2)(5)	61.00		%	59.35		%	66.35		%

Capital Ratios (consolidated):
Common equity tier 1 capital ratio	10.18		%	10.01		%	10.45		%
Tier 1 capital ratio	12.54		%	12.34		%	12.86		%
Total capital ratio	16.55		%	16.31		%	16.93		%
Tier 1 leverage capital ratio	9.97		%	9.99		%	10.19		%
Risk-weighted assets	$	26,697,277		$	26,997,617		$	26,104,878

_____________________________

(1) Common shares include NVCE that are participating securities. There were no NVCE outstanding as of March 31, 2026.

(2) See "Non-GAAP Financial Measures" in Item 2 of this Form 10-Q.

(3) Annualized.

(4) Total revenue equals the sum of NII and noninterest income.

(5) Ratio calculated by dividing noninterest expense (less intangible asset amortization and acquisition, integration and reorganization costs) by total revenue (less gain/loss on sale of securities). See "Non-GAAP Financial Measures" in Item 2 of this Form 10-Q. Noninterest expense includes customer related expense of $23.7 million, $24.9 million and $27.8 million for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025.

Net Interest Income and Net Interest Margin

The following tables summarize the distribution of average assets, liabilities, and stockholders’ equity, as well as interest income and yields earned on average interest-earning assets and interest expense and rates paid on average interest-bearing liabilities, presented on a tax equivalent basis, for the periods indicated:


	Three Months Ended
	March 31, 2026						December 31, 2025						March 31, 2025
			Interest		Yields				Interest		Yields				Interest		Yields
	Average		Income/		and		Average		Income/		and		Average		Income/		and
	Balance		Expense		Rates		Balance		Expense		Rates		Balance		Expense		Rates
	(Dollars in thousands)
ASSETS:
Loans and leases (1)	$	24,710,609	$	349,943	5.74	%	$	24,443,089	$	359,268	5.83	%	$	23,788,647	$	346,103	5.90	%
Investment securities	5,018,002		41,873		3.38	%	4,891,281		39,557		3.21	%	4,734,037		37,862		3.24	%
Deposits in financial institutions	1,742,657		15,626		3.64	%	1,834,773		18,123		3.92	%	2,088,139		22,690		4.41	%
Total interest‑earning assets	31,471,268		407,442		5.25	%	31,169,143		416,948		5.31	%	30,610,823		406,655		5.39	%
Other assets	2,531,433						2,583,357						2,697,562
Total assets	$	34,002,701					$	33,752,500					$	33,308,385

LIABILITIES AND
STOCKHOLDERS’ EQUITY:
Interest checking	$	8,175,172	46,882		2.33	%	$	7,944,858	49,319		2.46	%	$	7,343,451	47,879		2.64	%
Money market	4,785,691		22,826		1.93	%	4,948,960		25,810		2.07	%	5,415,716		33,003		2.47	%
Savings	1,957,831		9,772		2.02	%	1,942,678		10,863		2.22	%	1,948,649		12,857		2.68	%
Time	4,510,418		40,753		3.66	%	4,570,369		43,904		3.81	%	4,498,268		46,791		4.22	%
Total interest‑bearing deposits	19,429,112		120,233		2.51	%	19,406,865		129,896		2.66	%	19,206,084		140,530		2.97	%
Borrowings	1,765,661		20,177		4.63	%	1,661,808		19,858		4.74	%	1,397,720		18,421		5.34	%
Subordinated debt	953,739		15,415		6.55	%	951,471		15,832		6.60	%	942,817		15,340		6.60	%
Total interest‑bearing liabilities	22,148,512		155,825		2.85	%	22,020,144		165,586		2.98	%	21,546,621		174,291		3.28	%
Noninterest‑bearing demand deposits	7,890,489						7,809,326						7,714,830
Other liabilities	415,000						428,873						522,753
Total liabilities	30,454,001						30,258,343						29,784,204
Stockholders’ equity	3,548,700						3,494,157						3,524,181
Total liabilities and
stockholders' equity	$	34,002,701					$	33,752,500					$	33,308,385
Net interest income			$	251,617					$	251,362					$	232,364
Net interest rate spread					2.40	%					2.33	%					2.11	%
Net interest margin					3.24	%					3.20	%					3.08	%

Total deposits (2)	$	27,319,601	$	120,233	1.78	%	$	27,216,191	$	129,896	1.89	%	$	26,920,914	$	140,530	2.12	%
Total funds (3)	$	30,039,001	$	155,825	2.10	%	$	29,829,470	$	165,586	2.20	%	$	29,261,451	$	174,291	2.42	%

_____________________

(1) Total loans are net of deferred fees, related direct costs, and premiums and discounts, but exclude the allowance for loan losses. Includes net loan discount accretion of $12.2 million, $12.7 million and $16.0 million for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025.

(2) Total deposits is the sum of 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.

First Quarter of 2026 Compared to Fourth Quarter of 2025

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

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

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

First Quarter of 2026 Compared to First Quarter of 2025

NII increased by $19.3 million to $251.6 million for the first quarter of 2026, up from $232.4 million for the first quarter of 2025. This increase was primarily driven by a $20.3 million decrease in interest expense on deposits, reflecting lower interest rates due to federal funds rate cuts of 75 basis points toward the end of 2025. Additionally, interest income from investments increased by $4.0 million and interest income from loans and leases by $3.8 million, both due primarily to higher average balances. Interest income on investments also benefited from the FHLB special divided in the first quarter of 2026. These positive factors were offset partially by a $7.1 million decrease in interest income from deposits in financial institutions, driven by lower average balances as we maintained lower cash target level and lower yield resulting from the federal funds rate cuts.

Net interest margin was 3.24% for the first quarter of 2026, up 16 basis points from 3.08% for the first quarter of 2025. The year over year improvement was primarily driven by a 32 basis point decrease in the average total cost of funds to 2.10% from 2.42%, as a result of a 34 basis point decrease in the average total cost of deposits to 1.78%, and a 71 basis point decrease in average cost of borrowings. Declines in funding costs reflect the impact of rate cuts that occurred in 2025.

Average total deposits increased by $398.7 million year over year, with a $223.0 million increase in average interest-bearing deposits and a $175.7 million increase in average noninterest-bearing deposits. Average noninterest-bearing deposits represented 28.9% of average total deposits for the three months ended March 31, 2026, up from 28.7% for the comparable period in 2025.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses on loans and leases HFI and securities and information regarding credit quality metrics for the periods indicated:


	Three Months Ended
	March 31,			December 31,			March 31,
	2026			2025			2025
	(Dollars in thousands)
Provision For Credit Losses:

Addition to allowance for loan and lease losses	$	9,800		$	7,800		$	9,700

Addition to reserve for unfunded loan commitments	—			4,700			500
Total loan-related provision	9,800			12,500			10,200
Reduction in allowance for HTM securities	—			—			(900)

Total securities-related provision	—			—			(900)
Total provision for credit losses	$	9,800		$	12,500		$	9,300

Credit Quality Metrics:

Net charge-offs on loans and leases HFI (1)	$	13,812		$	2,689		$	14,074

Annualized net charge-offs to average loans and leases	0.23		%	0.04		%	0.24		%
At quarter-end:
Allowance for credit losses	$	276,521		$	280,533		$	264,557

Allowance for credit losses to loans and leases HFI	1.12		%	1.12		%	1.10		%

Allowance for credit losses to nonaccrual loans and leases HFI	148.88		%	176.25		%	123.93		%
Nonaccrual loans and leases HFI	$	185,734		$	159,168		$	213,480

Nonaccrual loans and leases HFI to loans and leases HFI	0.75		%	0.64		%	0.88		%

______________________

(1) See "Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases Held for Investment" in Item 2 of this Form 10-Q for detail of charge-offs and recoveries by loan portfolio segment, class, and subclass for the periods presented.

Provisions for credit losses are charged to earnings for both on and off‑balance sheet credit exposures. The provisions for credit losses on our loans and leases HFI, AFS debt securities, and HTM debt securities are based on our allowance methodologies and are expenses that, in our judgment, are required to maintain an appropriate ACL for these assets.

First Quarter of 2026 Compared to Fourth Quarter of 2025 and First Quarter of 2025

The provision for credit losses was $9.8 million for the first quarter of 2026 compared to $12.5 million for the fourth quarter of 2025 and $9.3 million for the first quarter of 2025.

The first quarter of 2026 provision for loan losses and unfunded commitments was primarily driven by net charge off activity and changes in loan risk ratings including specific reserves, offset by lower balances in the HFI portfolio and lower qualitative reserves.

The fourth quarter of 2025 provision for loan losses and unfunded commitments was primarily driven by changes in loan risk ratings including specific reserves, and higher loan balances and unfunded commitments, offset partially by lower qualitative reserves.

The first quarter of 2025 provision for loan losses and unfunded commitments was primarily driven by net charge-off activity, offset partially by lower specific reserves and changes in portfolio mix driven by growth in loan segments with low expected credit losses.

Certain circumstances may lead to increased provisions for credit losses on loans and leases in the future. Examples of such circumstances include an increased amount of classified and/or nonaccrual loans and leases, net loan and lease and unfunded commitment growth, and changes in economic conditions and forecasts. Changes in economic conditions and forecasts include the rate of economic growth, the unemployment rate, the rate of inflation, changes in the general level of interest rates, changes in real estate values, and adverse conditions in borrowers’ businesses.

For information regarding the ACL on loans and leases HFI and HTM securities, see “Balance Sheet Analysis - Allowance for Credit Losses on Loans and Leases” and “Critical Accounting Policies and Estimates” in Item 2 Management's Discussion and Analysis, and "Note 4. Loans and Leases" in Item 1 of this Form 10-Q.

Noninterest Income

The following table summarizes noninterest income by category for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Noninterest Income	2026		2025		2025
	(In thousands)
Commissions and fees	$	10,980	$	9,524	$	9,958
Leased equipment income	8,530		16,381		10,784
Service charges on deposit accounts	4,978		5,038		4,543
Gain on sale of loans and leases	7		18		211

Dividends and gains on equity investments	2,002		3,492		2,323
Warrant income (loss)	938		361		(295)

Other	7,893		6,757		6,126
Total noninterest income	$	35,328	$	41,571	$	33,650

First Quarter of 2026 Compared to Fourth Quarter of 2025

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

First Quarter of 2026 Compared to First Quarter of 2025

Noninterest income increased by $1.7 million to $35.3 million for the first quarter of 2026 from $33.7 million for the first quarter of 2025 due mainly to increases of $1.8 million in other income, $1.2 million in warrant income and $1.0 million in commission and fees, offset partially by a decrease of $2.3 million in leased equipment income. The increase in other income was primarily due to a partial gain from extinguishment of debt related to the credit-linked note. The increase in warrant income was driven by higher gains from warrant exercises. The decrease in leased equipment income was due mainly to lower leased equipment balances driven by lease buyouts in previous quarters.

Noninterest Expense

The following table summarizes noninterest expense by category for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Noninterest Expense	2026		2025		2025
	(In thousands)
Compensation	$	91,100	$	85,862	$	86,417
Customer related expense	23,737		24,870		27,751
Occupancy	14,892		14,726		15,010
Information technology and data processing	14,339		13,751		15,099
Insurance and assessments	6,764		7,070		7,283
Intangible asset amortization	6,348		6,788		7,160
Leased equipment depreciation	5,304		6,202		6,741
Other professional services	4,236		6,774		4,513
Loan expense	4,292		4,445		2,930
Other	10,379		10,156		10,749



Total noninterest expense	$	181,391	$	180,644	$	183,653

First Quarter of 2026 Compared to Fourth Quarter of 2025

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

First Quarter of 2026 Compared to First Quarter of 2025

Noninterest expense decreased by $2.3 million to $181.4 million for the first quarter of 2026 compared to $183.7 million for the first quarter of 2025 due mainly to decreases of $4.0 million in customer related expenses and $1.4 million in leased equipment depreciation expense, offset partially by increases of $4.7 million in compensation expense. Customer related expense decreased due to lower ECR payments driven by the federal funds rate cuts in late 2025. Leased equipment expense decreased due to lower leased equipment balances driven by prior quarter leased buyouts. Compensation expense increased due to higher incentive compensation and higher salary and benefits by increased full-time equivalent employees.

Income Taxes

First Quarter of 2026 Compared to Fourth Quarter of 2025

Income tax expense of $23.8 million was recorded for the first quarter resulting in an effective tax rate of 24.9% compared to income tax expense of $22.4 million and an effective tax rate of 22.4% for the fourth quarter. The higher effective tax rate for the first quarter of 2026 is primarily due to higher forecasted pre-tax book income for 2026 while tax exempt items remain relatively consistent.

First Quarter of 2026 Compared to First Quarter of 2025

Income tax expense of $23.8 million was recorded for the first quarter of 2026 resulting in an effective tax rate of 24.9% compared to income tax expense of $19.5 million and an effective tax rate of 26.7% for the comparable period in 2025. The higher effective tax rate for the first quarter of 2025 was due primarily to a tax return to provision true-up adjustment recorded in the first quarter of 2025.

Balance Sheet Analysis

The following table provides a summary of our balance sheet highlights as of the dates indicated:


Balance Sheet Highlights	March 31, 2026		December 31, 2025		Increase (Decrease)
	(In thousands)
Cash and cash equivalents	$	2,217,269	$	2,307,965	$	(90,696)
Securities AFS	2,656,332		2,454,058		202,274
Securities HTM	2,313,548		2,308,636		4,912
Loans HFS	259,049		182,936		76,113
Loans and leases HFI	24,780,347		25,032,679		(252,332)
Total loans and leases	25,039,396		25,215,615		(176,219)
Total assets	34,724,241		34,797,442		(73,201)
Noninterest-bearing deposits	7,797,542		7,822,787		(25,245)
Total deposits	27,322,134		27,843,357		(521,223)
Borrowings	2,551,250		2,063,819		487,431
Subordinated debt	954,072		952,740		1,332
Total liabilities	31,170,915		31,256,165		(85,250)
Total stockholders' equity	3,553,326		3,541,277		12,049

Securities Available-for-Sale

The following table presents the composition and durations of our AFS securities as of the dates indicated:


	March 31, 2026					December 31, 2025
	Fair		% of		Duration	Fair		% of		Duration
Security Type	Value		Total		(in years)	Value		Total		(in years)
	(Dollars in thousands)
Agency residential MBS	$	811,661	31	%	7.6	$	834,085	34	%	7.6
Agency residential CMOs	1,104,183		42	%	2.7	871,624		36	%	2.3
Private label residential CMOs	233,184		9	%	4.2	228,975		9	%	4.4
Collateralized loan obligations	200,374		7	%	—	200,822		8	%	—
Corporate debt securities	231,958		9	%	0.9	241,596		10	%	1.0
Agency commercial MBS	50,981		2	%	3.1	50,966		2	%	3.2
Asset-backed securities	12,661		—	%	0.1	13,249		1	%	0.1
Private label commercial MBS	8,270		—	%	3.1	9,279		—	%	3.1
SBA securities	3,060		—	%	3.1	3,462		—	%	3.0


Total securities AFS	$	2,656,332	100	%	4.0	$	2,454,058	100	%	4.0

AFS securities increased by $202.3 million during the first quarter to $2.7 billion at March 31, 2026 compared to $2.5 billion at December 31, 2025, due primarily to purchases of $343.4 million, offset partially by $119.8 million of principal paydowns, $10.8 million of maturities, $9.2 million decrease in the fair value of AFS securities, and $1.3 million of net amortization. As of March 31, 2026, AFS securities had aggregate unrealized net after-tax losses in AOCI of $143.3 million, up from $136.6 million at December 31, 2025, driven by higher interest rates.

Securities Held-to-Maturity

The following table presents the composition and duration of our HTM securities as of the dates indicated:


	March 31, 2026					December 31, 2025
	Amortized		% of		Duration	Amortized		% of		Duration
Security Type	Cost		Total		(in years)	Cost		Total		(in years)
	(Dollars in thousands)

Municipal securities	$	1,238,920	54	%	7.6	$	1,237,792	54	%	7.5
Agency commercial MBS	448,918		19	%	4.9	447,283		19	%	5.1
Private label commercial MBS	361,672		16	%	4.6	360,382		16	%	4.8
U.S. Treasury securities	193,784		8	%	4.7	193,022		8	%	5.0
Corporate debt securities	70,949		3	%	3.8	70,852		3	%	4.0




Total securities HTM	$	2,314,243	100	%	6.2	$	2,309,331	100	%	6.3

________________________________________

(1) As of March 31, 2026, our municipal securities are geographically concentrated primarily in California at 26%, Texas at 22%, and Washington at 15% of total municipal securities based on amortized cost.

As of March 31, 2026, HTM securities had aggregate unrealized net after-tax losses in AOCI of $127.2 million remaining from the balance established at the time of transfer from AFS.

Loans Held for Sale

As part of our management of the loans held in our portfolio, on occasion we will transfer loans from HFI to HFS. Total loans and leases HFS increased by $76.1 million in the first quarter and totaled $259.0 million at March 31, 2026 compared to $182.9 million at December 31, 2025. The increase in loans HFS was primarily driven by a $72.1 million loan transfer during the first quarter. The loan was subsequently sold at par in April 2026.

Loans and Leases Held for Investment

The following table presents the composition of our loans and leases HFI by loan portfolio segment, class, and subclass as of the dates indicated:


	March 31, 2026				December 31, 2025
			% of				% of
	Balance		Total		Balance		Total
	(Dollars in thousands)
Real Estate Mortgage:
Commercial real estate	$	3,111,475	13	%	$	3,259,164	13	%
SBA program	649,163		3	%	666,424		3	%
Hotel	332,748		1	%	389,049		1	%
Total commercial real estate mortgage	4,093,386		17	%	4,314,637		17	%
Multi-family	5,955,102		24	%	6,089,417		24	%
Residential mortgage	3,431,033		14	%	3,307,427		14	%
Investor-owned residential	22,473		—	%	32,567		—	%
Residential renovation	4,904		—	%	6,739		—	%
Total other residential real estate	3,458,410		14	%	3,346,733		14	%
Total real estate mortgage	13,506,898		55	%	13,750,787		55	%
Real Estate Construction and Land:
Commercial	364,575		2	%	379,387		2	%
Residential	1,527,754		6	%	1,568,240		6	%
Total real estate construction and land (1)	1,892,329		8	%	1,947,627		8	%
Total real estate	15,399,227		63	%	15,698,414		63	%
Commercial:
Lender finance	1,865,117		7	%	1,623,474		6	%
Equipment finance	666,408		3	%	674,714		3	%
Premium finance	408,086		2	%	447,939		2	%
Other asset-based	269,727		1	%	204,883		1	%
Total asset-based	3,209,338		13	%	2,951,010		12	%
Equity fund loans	1,357,740		5	%	1,320,297		5	%
Venture lending	964,521		4	%	901,800		4	%
Total venture capital	2,322,261		9	%	2,222,097		9	%
Warehouse lending	1,804,612		7	%	2,100,075		8	%
Secured business loans	723,902		3	%	806,597		3	%
Other lending	972,874		4	%	897,427		4	%
Total other commercial	3,501,388		14	%	3,804,099		15	%
Total commercial	9,032,987		36	%	8,977,206		36	%
Consumer	348,133		1	%	357,059		1	%
Total loans and leases HFS	$	24,780,347	100	%	$	25,032,679	100	%

Total unfunded loan commitments	$	5,549,325			$	5,433,357

________________________________

(1) Includes land and acquisition and development loans of $217.8 million at March 31, 2026 and $214.5 million at December 31, 2025.

Our non-deposit financial institutions ("NDFI") lending for HFI loans totaled $5.1 billion or 20.4%,as of March 31, 2026 compared to $5.1 billion, or 20.5% as of December 31, 2025, and is diversified across multiple asset classes, including warehouse lending, equity fund loans, and lender finance. The NDFI portfolio has a history of strong asset quality performance with no delinquencies, nonperforming loans, or classified loans for these respective periods.

The following table presents a roll forward of loans and leases HFI for the period indicated:


Roll Forward of Loans and Leases Held for Investment	Three Months Ended March 31, 2026
	(In thousands)
Balance, beginning of period	$	25,032,679
Additions:
Production	843,766
Disbursements	1,274,810
Total production and disbursements	2,118,576
Reductions:
Payoffs	(837,426)
Paydowns	(1,442,891)
Total payoffs and paydowns	(2,280,317)
Sales	(733)
Transfers to foreclosed assets	(1,700)
Charge-offs	(16,097)
Transfers to loans HFS	(72,061)
Total reductions	(2,370,908)


Net decrease	(252,332)
Balance, end of period	$	24,780,347

Loan Concentrations

We mitigate loan concentration risk through disciplined underwriting and approval processes that consider borrower, industry, and collateral characteristics. All loan originations and renewals are individually reviewed, with larger exposures subject to credit committee oversight. Credit risk is actively managed through ongoing borrower monitoring, covenant compliance, independent credit review, and portfolio reviews designed to identify emerging credit risks.

Total real estate loans HFI were $15.4 billion, or 63%, of our loan portfolio at March 31, 2026 and consisted of $13.5 billion of real estate mortgage loans and $1.9 billion of real estate construction and land loans, compared to $15.7 billion, or 63%, of our total loan portfolio at December 31, 2025 and consisted of $13.8 billion of real estate mortgage loans and $1.9 billion of real estate construction and loan loans. At March 31, 2026 and December 31, 2025, 70% and 71% of our real estate loans were collateralized by property in California, reflecting the concentration of our community banking operations within the state.

Allowance for Credit Losses on Loans and Leases Held for Investment

The ACL represents our estimate of CECL for loans and leases HFI and unfunded loan commitments as of the reporting date. The ACL is estimated under the CECL methodology, which incorporates historical credit loss experience, current conditions, and reasonable and supportable forecasts.

In estimating the ACL, we consider multiple forward‑looking economic scenarios, with scenario selection and weighting reflecting current economic conditions and downside risk over the reasonable and supportable forecast period. Expected losses revert to a through‑the‑cycle basis thereafter, and assumptions are reassessed quarterly based on portfolio composition, credit quality trends, and macroeconomic factors. Quantitative model outputs are supplemented by qualitative adjustments for risks not fully captured in the models, primarily related to CRE exposure, portfolio concentrations, and levels of adversely classified loans. As part of our ACL governance framework, we perform sensitivity analyses to assess the reasonableness of the allowance; however, due to the interrelated nature of key assumptions, the impact of changes in individual inputs cannot be isolated.

We believe the ACL appropriately reflects expected credit losses inherent in the portfolio as of the reporting date. Actual results may differ due to changes in economic conditions, portfolio mix, or borrower performance. For additional information regarding our ACL methodology and accounting policies, see "Note 1 – Nature of Operations and Summary of Significant Accounting Policies" in Item 8 of the Form 10‑K.

The following table presents information regarding the ACL on loans and leases HFI as of the dates indicated:


Allowance for Credit Losses Data	March 31, 2026			December 31, 2025
	(Dollars in thousands)
Allowance for loan and lease losses	$	241,600		$	245,612
Reserve for unfunded loan commitments	34,921			34,921
Total allowance for credit losses	$	276,521		$	280,533

Allowance for credit losses to loans and leases HFI	1.12		%	1.12		%
Allowance for loan and lease losses to nonaccrual loans and leases HFI	148.88		%	176.30		%

The following table presents the changes in our ACL on loans and leases HFI for the periods indicated:


	Three Months Ended
Roll Forward of Allowance for Credit Losses	March 31,			December 31,			March 31,
on Loans and Leases Held for Investment	2026			2025			2025
	(Dollars in thousands)
Balance, beginning of period	$	280,533		$	270,722		$	268,431
Provision for credit losses:
Addition to allowance for loan and lease losses	9,800			7,800			9,700
Addition to reserve for unfunded loan commitments	—			4,700			500
Total provision for credit losses	9,800			12,500			10,200
Loans and leases charged off:
Real estate mortgage	(5,374)			(2,183)			(5,789)
Real estate construction and land	(8,077)			—			—
Commercial	(1,737)			(1,750)			(9,582)
Consumer	(909)			(1,608)			(1,180)
Total loans and leases charged off	(16,097)			(5,541)			(16,551)
Recoveries on loans and leases charged off:
Real estate mortgage	802			574			312

Commercial	1,307			2,040			2,103
Consumer	176			238			62
Total recoveries on loans and leases charged off	2,285			2,852			2,477
Net (charge-offs) recoveries	(13,812)			(2,689)			(14,074)
Balance, end of period	$	276,521		$	280,533		$	264,557

Annualized net (recoveries) charge-offs to average loans and leases	0.23		%	0.04		%	0.24		%

The following table presents charge-offs by loan portfolio segment, class, and subclass for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Allowance for Credit Losses Charge-offs	2026		2025		2025
	(In thousands)
Real Estate Mortgage:
Commercial real estate	$	—	$	—	$	4,701
SBA program	—		—		306
Hotel	5,100		1,685		—
Total commercial real estate mortgage	5,100		1,685		5,007

Residential mortgage	71		—		129
Investor-owned residential	14		450		526
Residential renovation	189		48		127
Total other residential real estate	274		498		782
Total real estate mortgage	5,374		2,183		5,789
Real Estate Construction and Land:
Commercial	8,077		—		—

Total real estate construction and land	8,077		—		—
Total real estate	13,451		2,183		5,789
Commercial:






Venture lending	—		993		5,121
Total venture capital	—		993		5,121
Secured business loans	1,426		121		524

Other lending	311		636		3,937
Total other commercial	1,737		757		4,461
Total commercial	1,737		1,750		9,582
Consumer	909		1,608		1,180
Total charge-offs	$	16,097	$	5,541	$	16,551

The following table presents recoveries by portfolio segment, class, and subclass for the periods indicated:


	Three Months Ended
	March 31,		December 31,		March 31,
Allowance for Credit Losses Recoveries	2026		2025		2025
	(In thousands)
Real Estate Mortgage:
Commercial real estate	$	472	$	506	$	78
SBA program	90		60		162

Total commercial real estate mortgage	562		566		240

Residential mortgage	161		6		11
Investor-owned residential	49		2		—
Residential renovation	30		—		61
Total other residential real estate	240		8		72
Total real estate mortgage	802		574		312
Real Estate Construction and Land:
Commercial	—		—		—

Total real estate construction and land	—		—		—
Total real estate	802		574		312
Commercial:


Premium finance	2		5		4
Other asset-based	558		390		—
Total asset-based	560		395		4

Venture lending	13		216		50
Total venture capital	13		216		50
Secured business loans	243		115		301

Other lending	491		1,314		1,748
Total other commercial	734		1,429		2,049
Total commercial	1,307		2,040		2,103
Consumer	176		238		62
Total recoveries	$	2,285	$	2,852	$	2,477

Credit Quality

Nonperforming Assets, Classified Loans and Leases, and Special Mention Loans and Leases

The following table presents information on our nonperforming assets, classified loans and leases, and special mention loans and leases as of the dates indicated:


	March 31, 2026			December 31, 2025
	(Dollars in thousands)
Nonaccrual loans and leases HFI	$	185,734		$	159,168
Accruing loans contractually past due 90 days or more	—			—
Total nonperforming loans and leases	185,734			159,168
Foreclosed assets, net	18,055			17,115
Total nonperforming assets	$	203,789		$	176,283

Classified loans and leases HFI	$	842,834		$	800,330
Special mention loans and leases HFI	688,659			458,683
Criticized loans and leases HFI	$	1,531,493		$	1,259,013

Nonaccrual loans and leases HFI to loans and leases HFI	0.75		%	0.64		%
Nonperforming assets to loans and leases HFI and foreclosed assets, net	0.82		%	0.70		%
Allowance for credit losses to nonaccrual loans and leases HFI	148.88		%	176.25		%
Classified loans and leases HFI to loans and leases HFI	3.40		%	3.20		%
Special mention loans and leases HFI to loans and leases HFI	2.78		%	1.83		%

Nonaccrual Loans and Leases Held for Investment

The following table presents our nonaccrual loans and leases HFI and accruing loans and leases past due between 30 and 89 days by loan portfolio segment and class as of the dates indicated:


	March 31, 2026				December 31, 2025				Increase (Decrease)
			Accruing				Accruing				Accruing
			and 30-89				and 30-89				and 30-89
			Days Past				Days Past				Days Past
	Nonaccrual		Due		Nonaccrual		Due		Nonaccrual		Due
	(In thousands)
Real estate mortgage:
Commercial	$	87,548	$	364	$	93,334	$	1,124	$	(5,786)	$	(760)
Multi-family	13,200		22,985		3,358		32,887		9,842		(9,902)
Other residential	53,489		33,664		57,984		28,614		(4,495)		5,050
Total real estate mortgage	154,237		57,013		154,676		62,625		(439)		(5,612)
Real estate construction and land:
Commercial	—		32,925		—		—		—		32,925
Residential	—		140,687		—		26,540		—		114,147
Total real estate construction and land	—		173,612		—		26,540		—		147,072
Commercial:
Asset-based	—		509		—		1,142		—		(633)
Venture capital	28,792		595		625		—		28,167		595
Other commercial	1,642		1,068		2,510		788		(868)		280
Total commercial	30,434		2,172		3,135		1,930		27,299		242
Consumer	1,063		2,309		1,357		1,933		(294)		376
Total HFI	$	185,734	$	235,106	$	159,168	$	93,028	$	26,566	$	142,078

Nonperforming loans and leases HFI increased by $26.6 million to $185.7 million at March 31, 2026 compared to $159.2 million at December 31, 2025, due mainly to additions of $54.6 million, offset partially by principal and other reductions of $20.0 million, charge-offs of $5.2 million, and transfers to accrual status of $2.8 million. As of March 31, 2026, a few of our largest loan relationships on nonaccrual status had an aggregate carrying value of $62.9 million and represented 34% of total nonaccrual loans and leases.

Loans and leases accruing and 30-89 days past due increased by $142.1 million to $235.1 million as of March 31, 2026 compared to $93.0 million at December 31, 2025, due mainly to increases of $114.1 million in residential real estate construction and land delinquent loans, $32.9 million in commercial real estate construction and land delinquent loans, and $5.1 million in other residential real estate mortgage delinquent loans, offset partially by a decrease of $9.9 million in multi-family real estate mortgage delinquent loans.

Foreclosed Assets, Net

The following table presents foreclosed assets (primarily OREO), net of the valuation allowance, by property type as of the dates indicated:


Property Type	March 31, 2026		December 31, 2025
	(In thousands)
Commercial real estate	$	622	$	—
Single-family residential	17,413		17,095


Total OREO, net	18,035		17,095
Other foreclosed assets	20		20
Total foreclosed assets, net	$	18,055	$	17,115

Foreclosed assets increased by $0.9 million to $18.1 million at March 31, 2026 compared to $17.1 million at December 31, 2025, due mainly to transfers from loans of $1.7 million, offset partially by sales of $0.7 million.

Classified and Special Mention Loans and Leases Held for Investment

The following table presents the credit risk ratings of our loans and leases HFI as of the dates indicated:


Loan and Lease Credit Risk Ratings	March 31, 2026		December 31, 2025
	(In thousands)
Pass	$	23,248,854	$	23,773,666
Special mention	688,659		458,683
Classified	842,834		800,330
Total loans and leases HFI	$	24,780,347	$	25,032,679

Special mention and classified loans and leases fluctuated as a result of the migration in a limited number of loans within a few larger relationships within the quarter. These were largely isolated situations, reflect proactive risk management actions and the credits are supported by strong collateral and defined resolution plans.

The following table presents the classified and special mention credit risk rating categories for loans and leases HFI by loan portfolio segment and class and the related net changes as of the dates indicated:


	March 31, 2026				December 31, 2025				Increase (Decrease)
			Special				Special				Special
	Classified		Mention		Classified		Mention		Classified		Mention
	(In thousands)
Real estate mortgage:
Commercial	$	284,897	$	119,711	$	297,606	$	126,998	$	(12,709)	$	(7,287)
Multi-family	239,739		82,083		166,385		216,286		73,354		(134,203)
Other residential	53,587		—		58,202		—		(4,615)		—
Total real estate mortgage	578,223		201,794		522,193		343,284		56,030		(141,490)
Real estate construction and land:
Commercial	32,925		—		52,828		—		(19,903)		—
Residential	—		363,100		2,982		10,714		(2,982)		352,386
Total real estate construction and land	32,925		363,100		55,810		10,714		(22,885)		352,386
Commercial:
Asset-based	35,473		10,792		36,732		7,180		(1,259)		3,612
Venture capital	172,496		103,592		171,847		64,577		649		39,015
Other commercial	22,410		4,374		12,143		27,689		10,267		(23,315)
Total commercial	230,379		118,758		220,722		99,446		9,657		19,312
Consumer	1,307		5,007		1,605		5,239		(298)		(232)
Total	$	842,834	$	688,659	$	800,330	$	458,683	$	42,504	$	229,976

Classified loans and leases increased by $42.5 million to $842.8 million at March 31, 2026 compared to $800.3 million at December 31, 2025, due mainly to increases of $73.4 million in multi-family real estate mortgage loans and $10.3 million in other commercial loans, offset partially by decreases of $19.9 million in CRE construction and land loans, $12.7 million in CRE mortgage loans, and $4.6 million in other residential real estate mortgage loans.

Special mention loans and leases increased by $230.0 million to $688.7 million at March 31, 2026 compared to $458.7 million at December 31, 2025, due mainly to increases of $352.4 million in residential real estate construction and land loans and $39.0 million in venture capital loans, offset partially by decreases of $134.2 million in multi-family real estate mortgage loans, $23.3 million in other commercial loans, and $7.3 million in CRE mortgage loans.

Deposits

The following table presents the composition of our deposits portfolio by account type as of the dates indicated:


	March 31, 2026				December 31, 2025
			% of				% of		Increase
Deposit Type	Balance		Total		Balance		Total		(Decrease)
	(Dollars in thousands)
Noninterest-bearing checking	$	7,797,542	29	%	$	7,822,787	28	%	$	(25,245)
Interest-bearing:
Checking	8,178,485		30	%	8,509,587		30	%	(331,102)
Money market	4,643,349		17	%	4,917,857		18	%	(274,508)
Savings	1,991,010		7	%	1,905,863		7	%	85,147
Time:
Non-brokered	2,149,564		8	%	2,254,293		8	%	(104,729)
Brokered	2,562,184		9	%	2,432,970		9	%	129,214
Total time deposits	4,711,748		17	%	4,687,263		17	%	24,485
Total interest-bearing	19,524,592		71	%	20,020,570		72	%	(495,978)
Total deposits	$	27,322,134	100	%	$	27,843,357	100	%	$	(521,223)

Total deposits decreased by $521.2 million to $27.3 billion at March 31, 2026 compared to $27.8 billion at December 31, 2025. Interest-bearing deposits decreased due mainly to lower balances in checking accounts of $331.1 million and lower money market accounts of $274.5 million, offset partially by higher saving accounts of $85.1 million and higher brokered and non-brokered time deposits of $24.5 million. At March 31, 2026, noninterest-bearing deposits totaled $7.8 billion, or 29%, of total deposits, and interest-bearing deposits totaled $19.5 billion, or 71%, of total deposits, compared to noninterest-bearing deposits of $7.8 billion, or 28% of total deposits, and interest-bearing deposits of $20.0 billion, or 72% of total deposits, at December 31, 2025.

The following table presents time deposits based on the $250,000 FDIC insured limit as of the dates indicated:


	March 31, 2026				December 31, 2025
			% of				% of
			Total				Total
Time Deposits	Balance		Deposits		Balance		Deposits
	(Dollars in thousands)
Time deposits $250,000 and under	$	3,765,024	14	%	$	3,669,523	13	%
Time deposits over $250,000	946,724		3	%	1,017,740		4	%
Total time deposits	$	4,711,748	17	%	$	4,687,263	17	%

As of March 31, 2026, FDIC-insured deposits represented approximately 70% of total deposits, down from 71% as of December 31, 2025.

The following table summarizes the maturities of time deposits as of the date indicated:


	Time Deposits
	$250,000		Over
March 31, 2026	and Under		$250,000		Total
	(In thousands)
Maturities:
Due in three months or less	$	1,293,379	$	338,398	$	1,631,777
Due in over three months through six months	751,781		309,456		1,061,237
Due in over six months through 12 months	1,474,030		222,022		1,696,052
Total due within 12 months	3,519,190		869,876		4,389,066
Due in over 12 months through 24 months	240,857		72,967		313,824
Due in over 24 months	4,977		3,881		8,858
Total due over twelve months	245,834		76,848		322,682
Total	$	3,765,024	$	946,724	$	4,711,748

Client Investment Funds

In addition to deposit products, we also offer alternative, non-depository corporate treasury solutions for clients to invest excess liquidity. These off-balance sheet client funds totaled $1.2 billion at March 31, 2026 and $1.2 billion at December 31, 2025.

Borrowings

The following table summarizes our borrowings as of the dates indicated:


	March 31, 2026				December 31, 2025
			Weighted				Weighted
			Average				Average
	Balance		Rate		Balance		Rate
	(Dollars in thousands)
FHLB secured advances	$	2,000,000	3.91	%	$	1,710,185	3.90	%
Other short-term borrowings	440,000		3.68	%	240,000		3.69	%
Credit-linked notes	111,250		14.41	%	113,634		14.63	%
Total borrowings, net	$	2,551,250	4.33	%	$	2,063,819	4.47	%

Borrowings increased by $487.4 million to $2.6 billion at March 31, 2026 compared to $2.1 billion at December 31, 2024, due to higher FHLB secured advances and other short-term borrowings. We utilized these borrowings to manage liquidity needs, including, but not limited to, funding asset growth, accommodating liability maturities and deposit withdrawals, and supporting business operations.

Subordinated Debt

Subordinated debt increased by $1.3 million to $954.1 million at March 31, 2026 compared to $952.7 million at December 31, 2025, due primarily to the accretion of the acquisition discount on acquired subordinated debt, offset partially by the lower valuation of the Euribor-based subordinated debt. At March 31, 2026, $131.0 million of subordinated debt was included in the Company's Tier I capital and $792.9 million was included in Tier II capital.

On May 1, 2026, the Company redeemed all $385 million outstanding aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 originally issued by Pacific Western Bank. For more information see “Note 17. Subsequent Events” in Item 1 of this Form 10‑Q.

Regulatory Matters

Capital

Bank regulatory agencies measure capital adequacy through standardized risk-based capital guidelines that compare different levels of capital (as defined by such guidelines) to risk-weighted assets and off-balance sheet obligations.

Regulatory capital requirements limit the amount of DTAs that may be included when determining the amount of regulatory capital. DTA amounts in excess of the calculated limit are disallowed from regulatory capital. At March 31, 2026, such disallowed amounts were $315.7 million for the Company and $291.4 million for the Bank. No assurance can be given that the regulatory capital DTA limitation will not increase in the future or that the Company and the Bank will not have increased DTAs that are disallowed.

Basel III currently requires all banking organizations to maintain a 2.50% capital conservation buffer above the minimum risk-based capital requirements to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of CET1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the CET1, Tier 1, and Total capital ratio minimums inclusive of the capital conservation buffer were 7.00%, 8.50%, and 10.50%. At March 31, 2026, the Company and the Bank were in compliance with the capital conservation buffer requirements.

The following tables present a comparison of our actual capital ratios to the minimum required ratios and well capitalized ratios as of the dates indicated:


			Minimum Required
			For Capital	For Capital	For Well
			Adequacy	Conservation	Capitalized
	March 31, 2026	December 31, 2025	Purposes	Buffer	Classification
Banc of California, Inc.:
Tier 1 leverage capital ratio	9.97%	9.99%	4.00%	N/A	N/A
CET1 capital ratio	10.18%	10.01%	4.50%	7.00%	N/A
Tier 1 capital ratio	12.54%	12.34%	6.00%	8.50%	6.00%
Total capital ratio	16.55%	16.31%	8.00%	10.50%	10.00%

Banc of California:
Tier 1 leverage capital ratio	10.73%	10.65%	4.00%	N/A	5.00%
CET1 capital ratio	13.50%	13.15%	4.50%	7.00%	6.50%
Tier 1 capital ratio	13.50%	13.15%	6.00%	8.50%	8.00%
Total capital ratio	15.97%	15.61%	8.00%	10.50%	10.00%

The Company's consolidated risk-based capital ratios increased during the three months ended March 31, 2026 due mainly to the effect of positive earnings for the period, offset partially by stock purchases, dividends and lower loan balances. The consolidated Tier 1 leverage ratio decreased during the three months ended March 31, 2026 due mainly to the impact of higher average assets, offset partially by earnings.

Dividends on Common Stock and Interest on Subordinated Debt

As a bank holding company, Banc of California, Inc. is required to notify and receive approval from the FRB prior to declaring and paying a dividend to common stockholders during any period in which quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. Interest payments made on subordinated debt are considered dividend payments under FRB regulations. We may not pay a dividend if the FRB objects or until such time as we receive approval from the FRB or we no longer need to provide notice under applicable regulations. The Company currently is required to receive FRB approval to declare or pay a dividend to stockholders. Further, if the Company defaults or elects to defer the interest payments on its subordinated debt, it is restricted from paying dividends on its Series F preferred and common stock.

Dividends on Preferred Stock

The Company's ability to pay dividends on the Series F preferred stock depends on the ability of the Bank to pay dividends to the holding company. The ability of the Company and the Bank to pay dividends in the future is subject to bank regulatory requirements, including capital regulations and policies established by the FRB and the DFPI, as applicable. Dividends on the Series F preferred stock will not be declared, paid, or set aside for payment to the extent such act would cause us to fail to comply with applicable laws and regulations, including applicable FRB capital adequacy regulations and policies.

Dividends on the Series F preferred stock are not cumulative or mandatory. If the Company's Board of Directors does not declare a dividend on the Series F preferred stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period or be cumulative, and the Company will have no obligation to pay any dividend for that dividend period, whether or not the Board of Directors declares a dividend on the Series F preferred stock or any other class or series of its capital stock for any future dividend period. However, if dividends on the Series F preferred stock have not been declared or paid for the equivalent of six dividend payments, whether or not for consecutive dividend periods, holders of the outstanding shares of Series F preferred stock, together with holders of any other series of the Company's preferred stock ranking equal with the Series F preferred stock with similar voting rights, will generally be entitled to vote for the election of two additional directors. Additionally, so long as any share of Series F preferred stock remains outstanding, unless dividends on all outstanding shares of Series F preferred stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment, no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on the Company's common stock.

Liquidity

Liquidity Management

Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in the Company’s business operations or unanticipated events.

We have a Management Finance Committee ("MFC") that is comprised of members of senior management and is responsible for managing commitments to meet the needs of customers while achieving our financial objectives. MFC meets regularly to review funding capacities, current and forecasted loan demand, and investment opportunities.

We manage our liquidity by maintaining pools of liquid assets on-balance sheet, consisting of cash and receivables due from banks, interest-earning deposits in other financial institutions, and unpledged AFS securities, which we refer to as our primary liquidity. We also maintain available borrowing capacity under secured credit lines with the FHLB and the FRBSF, which we refer to as our secondary liquidity.

As a member of the FHLB, the Bank had secured borrowing capacity with the FHLB of $6.9 billion at March 31, 2026, offset partially by $476.0 million pledged for letters of credit and a balance outstanding of $2.0 billion as of that date. The FHLB secured credit line was collateralized by a blanket lien on $10.1 billion of certain qualifying loans and $19.8 million of securities. The Bank also had secured borrowing capacity with the FRBSF under the Discount Window program totaling $5.3 billion at March 31, 2026, of which $5.3 billion was available. The FRBSF Discount Window secured credit line was collateralized by liens on $5.0 billion of qualifying loans and $1.4 billion of pledged securities.

In addition to its secured lines of credit with the FHLB and FRBSF, the Bank also had credit limits of $215.0 million in the aggregate with several commercial banks, as well as borrowing arrangements with unaffiliated financial institutions that provide for the purchase of overnight funds or other short-term borrowings. The availability of these unsecured borrowings fluctuates regularly and is subject to the discretion of the counterparties. As of March 31, 2026, the Bank had $440.0 million outstanding under these arrangements. Additionally, the holding company has a $100.0 million unsecured revolving line of credit. As of March 31, 2026, there was no balance outstanding.

The following tables provide a summary of the Company's primary and secondary liquidity levels at the dates indicated:


Primary Liquidity - On-Balance Sheet	March 31, 2026			December 31, 2025
	(Dollars In thousands)
Cash and due from banks	$	214,120		$	181,103
Interest-earning deposits in financial institutions	2,003,149			2,126,862
Total cash, cash equivalents, and restricted cash	2,217,269			2,307,965
Less: Restricted cash	(169,418)			(170,229)
Add: Securities AFS, at fair value	2,656,332			2,454,058
Add: Allowance on securities AFS	775			775
Less: Pledged securities AFS, at fair value	(3,060)			(3,463)
Less: Haircut on securities AFS	(189,663)			(183,265)

Total primary liquidity	$	4,512,235		$	4,405,841

Ratio of primary liquidity to total assets	13.0		%	12.7		%


Secondary Liquidity - Off-Balance Sheet
Available Secured Borrowing Capacity	March 31, 2026		December 31, 2025
	(In thousands)
Total secured borrowing capacity with the FHLB	$	6,921,590	$	6,949,898
Less: Letters of credit	(475,965)		(514,091)
Less: Secured advances outstanding	(2,000,000)		(1,710,185)
Available secured borrowing capacity with the FHLB	4,445,625		4,725,622


Available secured borrowing capacity with the FRBSF	5,275,237		5,044,040
Total secondary liquidity	$	9,720,862	$	9,769,662

The Company's primary liquidity increased by $106.4 million to $4.5 billion at March 31, 2026 compared to $4.4 billion at December 31, 2025, due mainly to an increase of $202.3 million in AFS securities, offset partially by a decrease of $90.7 million in total cash and cash equivalents excluding restricted cash. We also include certain unencumbered HTM securities in our internal liquidity stress test buffer which are not included in our primary liquidity. The Company's secondary liquidity decreased by $48.8 million to $9.7 billion at March 31, 2026 compared to $9.8 billion at December 31, 2025, due to a decrease in available borrowing capacity at the FHLB of $280.0 million, offset partially by the increase in available secured borrowing capacity with the FRB of $231.2 million. At March 31, 2026, total available liquidity was $14.2 billion, which exceeded uninsured and uncollateralized deposits of $7.8 billion.

Obtaining new customer deposits, or having existing customers increase their deposit balances with us, are the primary sources of funding for our operations and is one of the highest priorities of the Company. See "- Balance Sheet Analysis - Deposits" for additional information and detail of our deposits. Additionally, we fund our operations with cash flows from our loan and securities portfolios.

Our deposit balances may decrease if customers withdraw funds from the Bank. In order to address the Bank’s liquidity risk from fluctuating deposit balances, the Bank maintains adequate levels of available liquidity on and off the balance sheet.

We use brokered deposits, the availability of which is uncertain and subject to competitive market forces and regulations, for liquidity management purposes. At March 31, 2026, brokered deposits totaled $2.8 billion, consisting of $2.6 billion of brokered time deposits and $0.2 billion of non-maturity brokered accounts. At December 31, 2025, brokered deposits totaled $2.9 billion, consisting of $2.4 billion of brokered time deposits and $0.5 billion of non-maturity brokered accounts.

Our Liquidity Management Policy establishes guidelines aligned with the Company's Risk Appetite Framework and includes a range of liquidity and funding concentration metrics designed to monitor balance sheet strength, funding stability, and available liquidity resources. These measures incorporate assessments of on-balance sheet liquidity, contingent funding capacity, and the composition of funding sources. As of March 31, 2026, the Bank was in compliance with all applicable liquidity and funding concentration guidelines.

Holding Company Liquidity

Banc of California, Inc. acts as a source of financial strength for the Bank which can also include being a source of liquidity. The primary sources of liquidity for the holding company include dividends from the Bank, intercompany tax payments from the Bank, and Banc of California, Inc.'s ability to raise capital, issue subordinated and senior debt, and secure outside borrowings. Banc of California, Inc.'s ability to obtain funds for the payment of dividends to our stockholders, the repurchase of shares of common stock and preferred stock, and other cash requirements is largely dependent upon the Bank’s earnings. The Bank is subject to restrictions under certain federal and state laws and regulations that limit its ability to transfer funds to the holding company through intercompany loans, advances, or cash dividends. Banc of California, Inc.'s ability to pay dividends is also subject to the restrictions set forth by the FRB, and by certain covenants contained in our subordinated debt. See "- Regulatory Matters - Dividend on Preferred Stock" for information regarding the payment of dividends on the Series F preferred stock.

On December 23, 2024, Banc of California, Inc. entered into an unsecured revolving line of credit agreement as a borrower for $50.0 million. On March 17, 2025, the Company executed an amendment to the credit agreement that increased the Company's unsecured revolving line of credit to $100.0 million. As of March 31, 2026 and December 31, 2025, there was no balance outstanding.

On March 23, 2026, we announced the extension of the Company’s existing $300 million stock repurchase program, which had been scheduled to expire in March 2026, through March 16, 2027. During the first quarter of 2026, the Company repurchased a total of approximately 1.7 million shares of common and common equivalent stock for $31.9 million, at a weighted-average price of $18.68 per share. As of March 31, 2026, the Company had $82.6 million remaining under the stock repurchase authorization. For further information on the stock repurchase program, see "Note 14. Stockholders' Equity", in Item 1 of this Form 10-Q.

At March 31, 2026, Banc of California, Inc. had $146.4 million in cash and cash equivalents, of which a substantial amount was on deposit at the Bank. We believe this amount of cash, along with anticipated future dividends from the Bank, will be sufficient to fund the holding company’s cash flow needs over the next 12 months.

Commitments and Contingencies

Our obligations also include off-balance sheet arrangements consisting of loan commitments, of which only a portion is expected to be funded, and standby letters of credit. At March 31, 2026, our loan commitments and standby letters of credit were $5.5 billion and $255.8 million. The loan commitments, a portion of which will eventually result in funded loans, increase our profitability through NII when drawn and unused commitment fees prior to being drawn. We manage our overall liquidity taking into consideration funded and unfunded commitments as a percentage of our liquidity sources. Our liquidity sources, as described in "Liquidity - Liquidity Management," have been and are expected to be sufficient to meet the cash requirements of our lending activities. For further information on loan commitments, see "Note 10. Commitments and Contingencies", in Item 1 of this Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This analysis should be read in conjunction with text under the caption "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2025, which text is incorporated herein by reference. Our analysis of market risk and market-sensitive financial information contains forward-looking statements and is subject to the disclosure at the beginning of Item 2 regarding such forward-looking information.

Market Risk - Foreign Currency Exposure

We enter into foreign exchange contracts with our clients and counterparty banks primarily for the purpose of offsetting or hedging clients' foreign currency exposures arising out of commercial transactions, and we enter into cross currency swaps and foreign exchange forward contracts to hedge exposures to loans and debt instruments denominated in foreign currencies. We have experienced and will continue to experience fluctuations in our net earnings as a result of transaction gains or losses related to revaluing certain asset and liability balances that are denominated in currencies other than the U.S. Dollar and the derivatives that hedge those exposures. As of March 31, 2026, the U.S. Dollar notional amounts of loans receivable and subordinated debt payable denominated in foreign currencies were $70.2 million and $29.8 million, and the U.S. Dollar notional amounts of derivatives outstanding to hedge these foreign currency exposures were $71.7 million and $29.9 million. We recognized a foreign currency translation net gain of $0.1 million for the three months ended March 31, 2026 and a foreign currency translation net loss of $0.3 million for the three months ended March 31, 2025.

Asset/Liability Management and Interest Rate Sensitivity

Interest Rate Risk - Company Governance. On at least a quarterly basis, we measure our IRR position using two methods: (i) NII simulation analysis and (ii) EVE modeling. The Management Finance Committee ("MFC") and the Finance Committee of the Company's Board of Directors review the results of these analyses at least quarterly. As discussed in more detail below, if projected changes to interest rates cause changes to our simulated net present value of equity and/or NII to be outside our pre-established IRR limits, we may adjust our asset and liability mix in an effort to bring our IRR exposure within our established limits.

The pre-established IRR limits are recommended by management, determined based on analytical review and available peer data published by regulatory agencies about the IRR limits utilized by other regional banks, and documented in the Company's Asset Liability Management Policy. The policy is approved by MFC and the Finance Committee of the Board of Directors annually. We believe our IRR limits are consistent with prevailing practice in the regional banking industry.

We use a balance sheet simulation model (the "IRR Model") to estimate changes in NII and EVE that would result from immediate and sustained changes in interest rates as of the measurement date. This IRR Model assesses the changes in NII and EVE that would occur in response to an instantaneous and sustained increase and decrease in market interest rates of +-100, +-200, +-300, and +-400 basis points. This model is an IRR management tool, and the results are not necessarily an indication of our future NII. The IRR Model has inherent limitations and the model's results are based on a given set of rate changes and assumptions at a single point in time.

The IRR Model is updated at least quarterly, and the IRR Model results are reported to MFC and the Finance Committee of the Company's Board of Directors at each monthly or quarterly meeting, as applicable.

Our Risk When Interest Rates Change. The rates of interest we earn on assets and pay on liabilities generally are established contractually for a period of time, except for non-maturity deposits. Market interest rates change over time. Accordingly, our results of operations, like those of other financial institutions, are impacted by changes in interest rates and the interest rate sensitivity of our assets and liabilities. The risk associated with changes in interest rates and our ability to adapt to these changes is known as IRR and is our most significant market risk.

How We Measure Our Risk of Interest Rate Changes. As part of our attempt to manage our exposure to changes in interest rates and comply with applicable regulations, we have established asset/liability committees to monitor our IRR. In monitoring IRR, we continually analyze and manage assets and liabilities based on their payment streams and interest rates, the timing of their maturities and/or prepayments, and their sensitivity to actual or potential changes in market interest rates.

The MFC is comprised of select members of senior management. The Company also has a Finance Committee of the Boards of Directors of the Company and the Bank (together with MFC, the “ALCOs”). In order to manage the risk of potential adverse effects of material and prolonged or volatile changes in interest rates on our results of operations, we have adopted asset/liability management policies to align maturities and repricing terms of interest-earning assets to interest-bearing liabilities. The asset/liability management policies establish guidelines for the volume and mix of assets and funding sources taking into account relative costs and spreads, interest rate sensitivity and liquidity needs, while management monitors adherence to those guidelines with oversight by the ALCOs. The objectives are to manage assets and funding sources to produce results that are consistent with liquidity, capital adequacy, growth, risk, and profitability goals. The ALCOs meet no less than quarterly to review, among other things, economic conditions and interest rate outlook, current and projected liquidity needs and capital position, anticipated changes in the volume and mix of assets and liabilities and IRR exposure limits versus current projections pursuant to our EVE analysis.

In order to manage our assets and liabilities and achieve the desired liquidity, credit quality, IRR, profitability, and capital targets, we evaluate various strategies. These include complementing our current loan origination platform through strategic acquisitions of whole loans, strategically managing multiple warehouse relationships, and originating shorter-term consumer loans. We also actively manage the level of investments and duration of investment securities, and focus on establishing stable deposit relationships. Additionally, we utilize certain derivatives such as interest rate swaps and collars as hedges to align maturities and repricing terms.

At times, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, the ALCOs may decide to increase our IRR position within the asset/liability tolerance set forth by our Board of Directors. As part of its procedures, the ALCOs regularly review IRR by forecasting the impact of alternative interest rate environments on NII and our EVE.

Interest Rate Sensitivity of Economic Value of Equity and Net Interest Income

IRR results from our banking activities and is the primary market risk for us. IRR is caused by the following factors:

•Repricing risk - timing differences in the repricing and maturity of interest-earning assets and interest-bearing liabilities;

•Option risk - changes in the expected maturities of assets and liabilities, such as borrowers’ ability to prepay loans and depositors’ ability to redeem certificates of deposit before maturity;

•Yield curve risk - changes in the yield curve where interest rates increase or decrease in a nonparallel fashion; and

•Basis risk - changes in spread relationships between different yield curves, such as U.S. Treasuries, U.S. Prime Rate, and SOFR.

Since our earnings are primarily dependent on our ability to generate NII, we focus on actively monitoring and managing the effects of adverse changes in interest rates on our NII. Management of our IRR is overseen by the Finance Committee of the Boards of Directors of the Company and Bank, which delegates the day-to-day management of IRR to the MFC. MFC ensures that the Bank is following the appropriate and current regulatory guidance in the formulation and implementation of our IRR program. The Finance Committee of the Boards of Directors of the Company and the Bank reviews the results of our IRR modeling at least quarterly to ensure that we have appropriately measured our IRR, mitigated our exposures appropriately and any residual risk is acceptable. In addition to our annual review of our Asset Liability Management policy, our Board of Directors periodically reviews the IRR policy limits.

IRR management is an ongoing process that monitors loan and deposit flows, along with investment and funding activities. Effective IRR management begins with understanding the repricing characteristics of our assets and liabilities and estimating an appropriate risk posture based on forecasts, objectives, market expectations, and policy constraints.

IRR exposure is measured using several tools, including a simulation model that performs interest rate sensitivity under multiple scenarios. The model reflects the actual maturities and re-pricing characteristics of interest rate sensitive assets and liabilities and includes instantaneous parallel interest rate shocks. Results are evaluated using two metrics: NII at Risk and EVE. NII at Risk estimates the impact of rate changes on NII using assumptions for assets, liabilities, and derivatives.

The NII simulation estimates changes in NII over the next twelve months from immediate and sustained rate changes as of March 31, 2026. The analysis assumes a static balance sheet with no growth or product mix changes. This model is a risk management tool and does not necessarily predict future NII.

EVE measures the present value of assets minus liabilities and assesses changes in the economic value under various interest rate scenarios. Unlike the NII approach, EVE captures the impact of all anticipated cash flows and provides a longer-term perspective.

A balance sheet is considered “asset sensitive” when an increase in short-term interest rates is expected to expand our NII, as rates earned on our interest-earning assets reprice higher at a pace faster than rates paid on our interest-bearing liabilities. Conversely, the balance sheet is considered “liability sensitive” when an increase in short-term interest rates is expected to compress our NII, as rates paid on our interest-bearing liabilities reprice higher at a pace faster than rates earned on our interest-earning assets.

At both March 31, 2026 and December 31, 2025, our IRR profile remained close to "neutral." This position reflects our balanced composition of repricing assets and beta-adjusted repricing deposits and other interest-bearing liabilities over the course of the next twelve months. Given the uncertainty of the magnitude, timing, and direction of future interest rate movements, as well as the shape of the yield curve, actual results may vary materially from those predicted by our model.

The following table presents the projected change in the Company’s EVE at March 31, 2026 and NII over the next twelve months, which would occur upon an immediate change in interest rates, but without giving effect to any steps that management might take to counteract that change:


	Change in Interest Rates in Basis Points (bps) (1)
	Economic Value of Equity						Net Interest Income
			Amount		Percentage				Amount		Percentage
March 31, 2026	Amount		Change		Change		Amount		Change		Change
	(Dollars in millions)
+200 bps	$	4,859	$	(535)	(9.9)	%	$	1,055	$	14	1.3	%
+100 bps	$	5,197	$	(197)	(3.6)	%	$	1,049	$	8	0.8	%
0 bps	$	5,394					$	1,041
-100 bps	$	5,500	$	106	2.0	%	$	1,039	$	(2)	(0.2)	%
-200 bps	$	5,543	$	149	2.8	%	$	1,041	$	(1)	(0.1)	%

____________________

(1)Assumes an instantaneous uniform change in interest rates at all maturities and no rate shock has a rate lower than zero percent.

Earnings-at-Risk

In addition to IRR associated with NII, certain noninterest expense items are also sensitive to changes in market interest rates. One such item is the cost of ECRs provided on certain deposit accounts, primarily those associated with our Homeowners Association business. ECRs comprise most of our customer related expense and fluctuate in response to changes in short term rates and can therefore influence the Company's overall earnings sensitivity profile. We expect that a declining interest rate environment would reduce ECR costs and thereby reduce noninterest expense, conversely, when interest rates rise, ECR costs would also rise, thereby increasing noninterest expense. The Company's Earnings-at-Risk modeling incorporates the impact of these rate-sensitive noninterest expenses, in addition to interest income and expense, to assess the effect of interest rate movements on projected earnings over a twelve-month horizon.

As of March 31, 2026, client deposits eligible for ECRs totaled approximately $3.8 billion. Taking into account the rate sensitivity of ECRs, which are primarily attributable to such deposits, the Company's overall earnings profile would be considered "liability sensitive." During the second quarter of 2025, the Company also entered into interest rate collars with a notional value of $1.0 billion to mitigate the risk of increasing interest expense if short term interest rates increase. For further information on the interest rate collars, see "Note 9. Derivatives", in Item 1 of this Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated our disclosure controls and procedures as of March 31, 2026 and have concluded that these disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the first quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth in "Note 10. Commitments and Contingencies" in Item 1 of this Form 10-Q is incorporated herein by reference

In addition, in the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, and taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company’s financial statements or operations.

ITEM 1A. RISK FACTORS

For information regarding factors that could affect the Company's results of operations, financial condition, and liquidity, see the risk factors disclosed in the "Risk Factors" section of our Form 10-K. See also "Forward-Looking Information" disclosed in Part I, Item 2 of this Quarterly Report on Form 10-Q. There have been no material changes to the risk factors previously disclosed in our Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding repurchases of shares of our common stock during the three months ended March 31, 2026:


	Total			Total Number of	Approximate Dollar
	Number of	Average		Shares Purchased	Value of Shares That
	Shares	Price Paid		as Part of Publicly	May Yet Be Purchased
Period	Purchased (1)	Per Share		Announced Program (2)	Under the Program (2)
	(Dollars in thousands, except per share amounts)
January 1 - January 31, 2026	—	$	—	—	$	114,502
February 1 - February 28, 2026	1,286,001	$	19.80	1,000,000	$	94,502
March 1 - March 31, 2026	715,863	$	16.84	709,935	$	82,559
Total	2,001,864	$	18.74	1,709,935

__________________________

(1) Includes shares repurchased pursuant to net settlement by employees in satisfaction of income tax withholding obligations incurred through the vesting of Company stock awards, and shares repurchased pursuant to the Company's publicly announced Stock Repurchase Program described in (2) below.

(2) On March 23, 2026, the Company announced that its Board of Directors extended its $300.0 million stock repurchase program through March 16, 2027. Pursuant to this program, the Company may repurchase common stock, common equivalent stock and depository shares representing its preferred stock from time to time in open market transactions, in block transactions on or off an exchange, in privately negotiated transactions, or by other means as determined by the Company's management and in accordance with the regulations of the SEC. The program may be changed, suspended, or discontinued at any time.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Trading Arrangements

During the quarter ended March 31, 2026, none of our directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (in each case, as defined in Item 408 of Regulation S-K) for the purchase or sale of the Company’s securities.

ITEM 6. EXHIBITS


Exhibit Number			Description
2.1			Agreement and Plan of Merger, dated as of July 25, 2023, by and among PacWest Bancorp, Banc of California, Inc. and Cal Merger Sub, Inc. (Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on July 28, 2023 and incorporated herein by reference).
3.1			Third Articles of Restatement of Banc of California, Inc., restated as of February 27, 2024 (Exhibit 3.1 to the Registrant's Annual Report on Form 10-K filed on February 29, 2024 and incorporated herein by reference).
3.2			Sixth Amended and Restated Bylaws of Banc of California, Inc. (Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on May 15, 2023 and incorporated herein by reference).
10.1			Banc of California, Inc. Second Amended and Restated 2018 Omnibus Incentive Stock Plan (Filed herewith).
31.1			Section 302 Certification of Chief Executive Officer (Filed herewith).
31.2			Section 302 Certification of Chief Financial Officer (Filed herewith).
32.1+			Section 906 Certification of Chief Executive Officer (Furnished herewith).
32.2+			Section 906 Certification of Chief Financial Officer (Furnished herewith).
101			Interactive data files pursuant to Rule 405 of Regulation S-T formatted in Inline XBRL: (i) the Consolidated Balance Sheets as of March 31, 2026, and December 31, 2025, (ii) the Consolidated Statements of Earnings for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, (iii) the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, (iv) the Consolidated Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2026 and March 31, 2025, (v) the Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and March 31, 2025, and (vi) the Notes to Consolidated Financial Statements. (Filed herewith).
104			Cover page of Banc of California, Inc.'s Quarterly Report on Form 10-Q formatted as Inline XBRL and contained in Exhibit 101.

__________________

+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		BANC OF CALIFORNIA, INC.

Date:	May 8, 2026	/s/ Jared M. Wolff
		Jared M. Wolff
		Chairman of the Board of Directors,
		Chief Executive Officer and President
		(Principal Executive Officer)




Date:	May 8, 2026	/s/ Joseph Kauder
		Joseph Kauder
		Executive Vice President, and Chief Financial Officer
		(Principal Financial Officer)




Date:	May 8, 2026	/s/ Karen Hon
		Karen Hon
		Executive Vice President, Deputy Chief Financial Officer
		and Chief Accounting Officer
		(Principal Accounting Officer)